By: Pickett H.B. No. 3479
A BILL TO BE ENTITLED
AN ACT
relating to the Texas emissions reduction plan and other related
programs and measures to reduce emissions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 386.001(3), Health and Safety Code, is
amended to read as follows:
(3) "Commission" means the Texas [Natural Resource
Conservation] Commission on Environmental Quality.
SECTION 2. Section 386.002, Health and Safety Code, is
amended to read as follows:
Sec. 386.002. EXPIRATION. This chapter expires on the last
day of the state fiscal biennium containing the date marking five
years from the United States Environmental Protection Agency
publication of certification in the Federal Register that, with
respect to each national ambient air quality standard for ozone
under 40 C.F.R. Section 81.344, the United States Environmental
Protection Agency has, for each designated area in Texas under that
section:
(1) designated the area as attainment or
unclassifiable; or
(2) approved a redesignation substitute making a
finding of attainment for the area [August 31, 2019].
SECTION 3. Section 386.051(b), Health and Safety Code, is
amended to read as follows:
(b) Under the plan, the commission [and the comptroller]
shall provide grants or other funding for:
(1) the diesel emissions reduction incentive program
established under Subchapter C, including for infrastructure
projects established under that subchapter;
(2) the seaport and rail yard areas emissions
reduction program established under Subchapter D-1 [the motor
vehicle purchase or lease incentive program established under
Subchapter D];
(3) the new technology implementation grant program
established under Chapter 391 [the air quality research support
program established under Chapter 387];
(4) the clean fleet program established under Chapter
392 [the clean school bus program established under Chapter 390];
(5) the natural gas vehicle grant program established
under Chapter 394 [the new technology implementation grant program
established under Chapter 391];
(6) a contract with the Energy Systems Laboratory at
the Texas A&M Engineering Experiment Station for computation of
creditable statewide emissions reductions as provided by Section
386.252(a) [the regional air monitoring program established under
Section 386.252(a)];
(7) other programs the commission may develop that
lead to reduced emissions of nitrogen oxides, particulate matter,
or volatile organic compounds in a nonattainment area or affected
county [a health effects study as provided by Section 386.252(a)];
and
(8) other programs the commission may develop that
support congestion mitigation to reduce mobile source ozone
precursor emissions [air quality planning activities as provided by
Section 386.252(a);
(9) a contract with the Energy Systems Laboratory at
the Texas A&M Engineering Experiment Station for computation of
creditable statewide emissions reductions as provided by Section
386.252(a)(14);
(10) the clean fleet program established under Chapter
392;
(11) the alternative fueling facilities program
established under Chapter 393;
(12) the natural gas vehicle grant program and clean
transportation triangle program established under Chapter 394;
(13) other programs the commission may develop that
lead to reduced emissions of nitrogen oxides, particulate matter,
or volatile organic compounds in a nonattainment area or affected
county;
(14) other programs the commission may develop that
support congestion mitigation to reduce mobile source ozone
precursor emissions; and
(15) the drayage truck incentive program established
under Subchapter D-1].
SECTION 4. Sections 386.0515(a) and (c), Health and Safety
Code, are amended to read as follows:
(a) In this section:
(1) "Agricultural[, "agricultural] product
transportation" means the transportation of a raw agricultural
product from the place of production using a heavy-duty truck to:
(A) [(1)] a nonattainment area;
(B) [(2)] an affected county;
(C) [(3)] a destination inside the clean
transportation zone [triangle]; or
(D) [(4)] a county adjacent to a county described
by Paragraph (B) [Subdivision (2)] or that contains an area
described by Paragraph (A) or (C) [Subdivision (1) or (3)].
(2) "Clean transportation zone" has the meaning
assigned by Section 394.001.
(c) The determining factor for eligibility for
participation in a program established under Chapter 392 or
[Chapter] 394[, as added by Chapter 892 (Senate Bill No. 385), Acts
of the 82nd Legislature, Regular Session, 2011,] for a project
relating to agricultural product transportation is the overall
accumulative net reduction in emissions of oxides of nitrogen in a
nonattainment area, an affected county, or the clean transportation
zone [triangle].
SECTION 5. Section 386.104(j), Health and Safety Code, is
amended to read as follows:
(j) The executive director may [shall] waive any
eligibility requirements established under this section on a
finding of good cause, which may include a waiver for short lapses
in registration or operation attributable to economic conditions,
seasonal work, or other circumstances.
SECTION 6. Section 386.116(a), Health and Safety Code, is
amended to read as follows:
Sec. 386.116. SMALL BUSINESS INCENTIVES. (a) In this
section, "small business" means a business owned by a person who:
(1) owns and operates not more than two vehicles, one
of which is:
(A) an on-road diesel [with a pre-1994 engine
model]; or
(B) a non-road diesel [with an engine with
uncontrolled emissions]; and
(2) has owned the vehicle described by Subdivision
(1)(A) or (B) for more than two years [one year].
SECTION 7. Subchapter D-1, Chapter 386, Health and Safety
Code, is retitled as follows:
SUBCHAPTER D-1. SEAPORT AND RAIL YARD AREAS EMISSIONS REDUCTION
PROGRAM [DRAYAGE TRUCK INCENTIVE PROGRAM]
SECTION 8. Section 386.181(a), Health and Safety Code, is
amended to read as follows:
(a) In this subchapter[,]:
(1) "cargo handling equipment" means any heavy-duty
non-road, self-propelled vehicle or land based equipment used at a
seaport or rail yard to lift or move cargo, such as containerized,
bulk, or break-bulk goods; and
(2) "drayage truck" means a heavy-duty on-road or
non-road vehicle used for drayage activities and that operates or
transgresses through a seaport or rail yard for the purpose of
loading, unloading, or transporting cargo, including transporting
empty containers and chassis [truck that transports a load to or
from a seaport or rail yard].
SECTION 9. Section 386.182, Health and Safety Code, is
amended to amend Subsections (a) and (b) to read as follows:
(a) The commission shall develop a purchase incentive
program to encourage owners to replace older drayage trucks and
cargo handling equipment [with pre-2007 model year engines] with
newer drayage trucks and cargo handling equipment and shall adopt
guidelines necessary to implement the program.
(b) The commission by rule and guideline shall establish
criteria for the models of drayage trucks and cargo handling
equipment that are eligible for inclusion in an incentive program
under this subchapter. [The guidelines must provide that a drayage
truck owner is not eligible for an incentive payment under this
subchapter unless the truck being replaced contains a pre-2007
model year engine and the replacement truck's engine is from model
year 2010 or later as determined by the commission and that the
truck operates at a seaport or rail yard.]
SECTION 10. Section 386.183, Health and Safety Code, is
amended to amend the section title and subsections (a), (b), (c),
(d), and (e), and to add new subsections (a-1) and (a-2) as follows:
Sec. 386.183. DRAYAGE TRUCK AND CARGO HANDLING EQUIPMENT
PURCHASE INCENTIVE. (a) To be eligible for an incentive under this
subchapter, a person must:
(1) purchase a replacement drayage truck or cargo
handling equipment that under the guidelines adopted by the
commission under Section 386.182 is eligible for inclusion in the
program for an incentive under this subchapter; and
(2) agree to:
(A) register the drayage truck in this state, if
the truck is an on-road vehicle;
(B) operate the drayage truck or cargo handling
equipment in and within a maximum distance established by the
commission of a seaport or rail yard in a nonattainment area of this
state for not less than 50 percent of the vehicle's annual mileage
or hours of operation, as determined by the commission; and
(C) permanently remove the drayage truck or cargo
handling equipment [a pre-2007 drayage truck containing a pre-2007
engine] replaced under the program [owned by the person] from
operation in a nonattainment area of this state by destroying the
engine and scrapping the truck or equipment after the purchase of
the replacement [new] truck or equipment in accordance with
guidelines established by the commission.
(a-1) To be eligible for replacement under this program a
drayage truck or cargo handling equipment must contain an engine of
a model year or certified to a federal emissions standard
established by the commission sufficient to ensure that the project
will achieve at least a 25 percent reduction in nitrogen oxides
emissions.
(a-2) To be eligible for purchase under this program a
drayage truck or cargo handling equipment must be powered by an
electric motor or contain an engine certified to the current
federal emission standards applicable to that type of engine, as
determined by the commission.
(b) To receive money under an incentive program provided by
this subchapter, the purchaser of a drayage truck or cargo handling
equipment eligible for inclusion in the program must apply for the
incentive in the manner provided by law, rule, or guideline of the
commission.
(c) Not more than one incentive may be provided for each
drayage truck or cargo handling equipment purchased.
(d) An incentive provided under this subchapter may be used
to fund not more than 80 percent of the purchase price of the
drayage truck or cargo handling equipment.
(e) The commission shall establish procedures to verify
that a person who receives an incentive:
(1) has operated in a seaport or rail yard and owned or
leased the drayage truck or cargo handling equipment to be replaced
for at least two years prior to receiving the grant; and
(2) permanently destroys the engine and scraps the
drayage truck or cargo handling equipment replaced under the
program [that contained the pre-2007 engine owned or leased by the
person,] in accordance with guidelines established by the
commission, after the purchase of the replacement [new] truck or
equipment.
(f) The commission may modify this program to improve its
effectiveness or further the goals of Subchapter B.
SECTION 11. Section 386.251(c), Health and Safety Code, is
amended to read as follows:
(c) The fund consists of:
(1) the amount of money deposited to the credit of the
fund under:
(A) Section 386.056;
(B) Sections 151.0515 and 152.0215, Tax Code; and
(C) Sections [501.138,] 502.358[,] and 548.5055,
Transportation Code; and
(2) grant money recaptured under Section 386.111(d)
and Chapter 391.
SECTION 12. Section 386.252, Health and Safety Code, is
amended to read as follows:
Sec. 386.252. USE OF FUND. (a) Money in the fund may be
used only to implement and administer programs established under
the plan. Subject to the reallocation of funds by the commission
under Subsection (f), money [Money] appropriated to the commission
to be used for the programs under Section 386.051(b) shall be
allocated as follows:
(1) five percent may be used for the clean fleet
program under Chapter 392 [not more than four percent may be used
for the clean school bus program under Chapter 390];
(2) 10 percent may be used for the Texas natural gas
vehicle grant program under Chapter 394 [not more than three
percent may be used for the new technology implementation grant
program under Chapter 391, from which at least $1 million will be
set aside for electricity storage projects related to renewable
energy];
(3) two percent may be used for the seaport and rail
yard areas emissions reduction program established under
Subchapter D-1 [five percent shall be used for the clean fleet
program under Chapter 392];
(4) at least $4 million and up to four percent to a
maximum of $7 million, whichever is greater, may be used by the
commission for administrative costs and costs for conducting
outreach and education activities to promote participation in the
programs funded under this section [not more than $3 million may be
used by the commission to fund a regional air monitoring program in
commission Regions 3 and 4 to be implemented under the commission's
oversight, including direction regarding the type, number,
location, and operation of, and data validation practices for,
monitors funded by the program through a regional nonprofit entity
located in North Texas having representation from counties,
municipalities, higher education institutions, and private sector
interests across the area];
(5) not more than $216,000 may be used by the
commission to contract with the Energy Systems Laboratory at the
Texas A&M Engineering Experiment Station annually for the
development and annual computation of creditable statewide
emissions reductions obtained through wind and other renewable
energy resources for the state implementation plan [not less than
16 percent shall be used for the Texas natural gas vehicle grant
program under Chapter 394]; and
(6) the balance may be used by the commission for the
diesel emissions reduction incentive program under Subchapter C as
determined by the commission [not more than five percent may be used
[to provide grants for natural gas fueling stations under the clean
transportation triangle program under Section 394.010;
(7) not more than five percent may be used for the
Texas alternative fueling facilities program under Chapter 393;
(8) a specified amount may be used each year to support
research related to air quality as provided by Chapter 387;
(9) not more than $200,000 may be used for a health
effects study[;
(10) $500,000 is to be deposited in the state treasury
to the credit of the clean air account created under Section
382.0622 to supplement funding for air quality planning activities
in affected counties;
(11) at least $4 million and up to four percent to a
maximum of $7 million, whichever is greater, is allocated to the
commission for administrative costs;
(12) at least two percent and up to five percent of the
fund is to be used by the commission for the drayage truck incentive
program established under Subchapter D-1;
(13) not more than five percent may be used for the
light-duty motor vehicle purchase or lease incentive program
established under Subchapter D;
(14) not more than $216,000 is allocated to the
commission to contract with the Energy Systems Laboratory at the
Texas A&M Engineering Experiment Station annually for the
development and annual computation of creditable statewide
emissions reductions obtained through wind and other renewable
energy resources for the state implementation plan;
(15) 1.5 percent of the money in the fund is allocated
for administrative costs incurred by the laboratory; and
(16) the balance is to be used by the commission for
the diesel emissions reduction incentive program under Subchapter C
as determined by the commission].
(b) Money in the fund may be used by the commission for
programs under Sections 386.051(b)(7), (b)(8), and (b-1) as may be
appropriated for those programs [The commission may allocate
unexpended money designated for the clean fleet program under
Chapter 392 to other programs described under Subsection (a) after
the commission allocates money to recipients under the clean fleet
program].
(c) If the legislature does not specify amounts or
percentages from the total appropriation to the commission to be
allocated under Subsection (a) or (b), the commission shall
determine the amounts of the total appropriation to be allocated
under each of those subsections, such that the total appropriation
is expended while maximizing emissions reductions [The commission
may allocate unexpended money designated for the Texas alternative
fueling facilities program under Chapter 393 to other programs
described under Subsection (a) after the commission allocates money
to recipients under the alternative fueling facilities program].
(d) To supplement funding for air quality planning
activities in affected counties, $500,000 from the fund is to be
deposited annually in the state treasury to the credit of the clean
air account created under Section 382.0622 [The commission may
reallocate money designated for the Texas natural gas vehicle grant
program under Chapter 394 to other programs described under
Subsection (a) if:
(1) the commission, in consultation with the governor
and the advisory board, determines that the use of the money in the
fund for that program will cause the state to be in noncompliance
with the state implementation plan to the extent that federal
actions is likely; and
(2) the commission finds that the reallocation of some
or all of the funding for the program would resolve the
noncompliance].
(e) Money in the fund may be allocated for administrative
costs incurred by the Energy Systems Laboratory at the Texas A&M
Engineering Experiment Station as may be appropriated by the
legislature [Under Subsection (d), the commission may not
reallocate more than the minimum amount of money necessary to
resolve the noncompliance].
[(e-1) Money allocated under Subsection (a) to a particular
program may be used for another program under the plan as determined
by the commission.
(f) Subject to the limitations outlined in this section and
any additional limitations placed on the use of the appropriated
funds, money allocated under this section to a particular program
may be used for another program under the plan as determined by the
commission, based on demand for grants for eligible projects under
particular programs after the commission solicits projects to which
to award grants according to the initial allocation provisions of
this section [Money in the fund may be used by the commission for
programs under Sections 386.051(b)(13), (b)(14), and (b-1) as may
be appropriated for those programs].
[(g) If the legislature does not specify amounts or
percentages from the total appropriation to the commission to be
allocated under Subsection (a) or (b) [(f)], the commission shall
determine the amounts of the total appropriation to be allocated
under each of those subsections, such that the total appropriation
is expended while maximizing emissions reductions.]
SECTION 13. Section 390.006, Health and Safety Code, is
amended to read as follows:
Sec. 390.006. EXPIRATION. This chapter expires August 31,
2017 [2019].
SECTION 14. Section 391.304, Health and Safety Code, is
amended to read as follows:
Sec. 391.304. EXPIRATION. This chapter expires August 31,
2017 [2019].
SECTION 15. Section 392.001(1), Health and Safety Code, is
amended to read as follows:
(1) "Alternative fuel" means a fuel other than
gasoline or diesel fuel, including electricity, compressed natural
gas, liquefied [liquified] natural gas, hydrogen, propane, or a
mixture of fuels containing at least 85 percent methanol by volume.
SECTION 16. Section 392.003(a), Health and Safety Code, is
amended to read as follows:
(a) A vehicle is a qualifying vehicle that may be considered
for a grant under the program if during the eligibility period
established by the commission [calendar year] the entity purchases
a new on-road vehicle that:
(1) is certified to the appropriate current federal
emissions standards as determined by the commission;
(2) replaces a diesel-powered on-road vehicle of the
same weight classification and use; and
(3) is a hybrid vehicle or fueled by an alternative
fuel.
SECTION 17. Section 392.004(d), Health and Safety Code, is
amended to read as follows:
(d) The commission shall minimize, to the maximum extent
possible, the amount of paperwork required for an application. [An
applicant may be required to submit a photograph or other
documentation of a vehicle identification number, registration
information, inspection information, tire condition, or engine
block identification only if the photograph or documentation is
requested by the commission after the commission has decided to
award a grant to the applicant under this chapter.]
SECTION 18. Section 392.005, Health and Safety Code, is
amended by amending Subsections (c) and (i) and adding Subsection
(c-1) to read as follows:
(c) As a condition of receiving a grant, the qualifying
vehicle must be continuously owned, registered, and operated in the
state by the grant recipient until the earlier of the fifth
anniversary of the activity start date established by the
commission [the date of reimbursement of the grant-funded expenses]
or [until] the date the vehicle has been in operation for 400,000
miles after the activity start date established by the commission
[of reimbursement]. Not less than 75 percent of the annual use of
the qualifying vehicle, either mileage or fuel use as determined by
the commission, must occur in the state.
(c-1) For purposes of Subsection (c), the commission may
establish the activity start date based on the date the commission
accepts verification of the disposition of the vehicle being
replaced.
(i) The executive director may [shall] waive the
requirements of Subsection (b)(2)(A) on a finding of good cause,
which may include a waiver for short lapses in registration or
operation attributable to economic conditions, seasonal work, or
other circumstances.
SECTION 19. Section 392.008, Health and Safety Code, is
amended to read as follows:
Sec. 392.008. EXPIRATION. This chapter expires on the last
day of the state fiscal biennium containing the date marking five
years from the United States Environmental Protection Agency
publication of certification in the Federal Register that, with
respect to each national ambient air quality standard for ozone
under 40 C.F.R. Section 81.344, the United States Environmental
Protection Agency has, for each designated area in Texas under that
section:
(1) designated the area as attainment or
unclassifiable; or
(2) approved a redesignation substitute making a
finding of attainment for the area [August 31, 2017].
SECTION 20. Section 393.007, Health and Safety Code, is
amended to read as follows:
Sec. 393.007. EXPIRATION. This chapter expires August 31,
2017 [2018].
SECTION 21. Section 394.001, Health and Safety Code, is
amended by amending Subdivisions (1), (4), (5), and (8) and adding
Subdivision (7-a) to read as follows:
(1) "Clean transportation zone" means:
(A) counties containing or intersected by a
portion of an interstate highway connecting the cities of Houston,
San Antonio, Dallas, and Fort Worth;
(B) counties located within the area bounded by
the interstate highways described by Paragraph (A);
(C) counties containing or intersected by a
portion of:
(i) an interstate highway connecting San
Antonio to Corpus Christi or Laredo; or
(ii) highways connecting Corpus Christi and
Laredo;
(D) counties located within the area bounded by
the highways described by Paragraph (C);
(E) counties in this state all or part of which
are included in a nonattainment area designated under Section
107(d) of the federal Clean Air Act (42 U.S.C. Section 7407); and
(F) counties designated as affected counties
under Section 386.001 ["Advisory board" means the Texas Emissions
Reduction Plan Advisory Board].
(4) "Heavy-duty motor vehicle" means a motor vehicle
that [with]:
(A) has a gross vehicle weight rating of more
than 8,500 pounds; and
(B) is certified to or has an engine certified to
the United States Environmental Protection Agency's emissions
standards for heavy-duty vehicles or engines.
(5) "Incremental cost" has the meaning assigned by
Section 386.001 [means the difference between the manufacturer's
suggested retail price of a baseline vehicle, the documented dealer
price of a baseline vehicle, cost to lease or otherwise
commercially finance a baseline vehicle, cost to repower with a
baseline engine, or other appropriate baseline cost established by
the commission, and the actual cost of the natural gas vehicle
purchase, lease, or other commercial financing, or repower].
(7-a) "Natural gas engine" means an engine that
operates:
(A) solely on compressed or liquefied natural
gas; or
(B) receives not less than 75 percent of its
power from compressed or liquefied natural gas.
(8) "Natural gas vehicle" means a motor vehicle that
is powered by a natural gas engine [receives not less than 75
percent of its power from compressed or liquefied natural gas].
SECTION 22. Section 394.003(a), Health and Safety Code, is
amended to read as follows:
(a) A vehicle is a qualifying vehicle that may be considered
for a grant under the program if during the eligibility period
established by the commission [calendar year] the entity:
(1) purchased, leased, or otherwise commercially
financed the vehicle as a new on-road heavy-duty or medium-duty
motor vehicle that:
(A) is a natural gas vehicle;
(B) is certified to the appropriate current
federal emissions standards as determined by the commission; and
(C) replaces an on-road heavy-duty or
medium-duty motor vehicle of the same weight classification and
use; [and
[(D) is powered by an engine certified to:
[(i) emit not more than 0.2 grams of
nitrogen oxides per brake horsepower hour; or
[(ii) meet or exceed the United States
Environmental Protection Agency's Bin 5 standard for light-duty
engines when powering the vehicle;] or
(2) repowered the on-road motor vehicle to a natural
gas vehicle powered by a natural gas engine that[:
[(A)] is certified to the appropriate current
federal emissions standards as determined by the commission[; and
[(B) is:
[(i) a heavy-duty engine that is certified
to emit not more than 0.2 grams of nitrogen oxides per brake
horsepower hour; or
[(ii) certified to meet or exceed the
United States Environmental Protection Agency's Bin 5 standard for
light-duty engines when powering the vehicle].
SECTION 23. Section 394.005, Health and Safety Code, is
amended by amending Subsections (a), (b), (c), (f), (g), and (i) and
adding Subsection (c-1) to read as follows:
(a) The commission [by rule] shall establish criteria for
prioritizing qualifying vehicles eligible to receive grants under
this chapter. The commission shall review and revise the criteria
as appropriate [after consultation with the advisory board].
(b) To be eligible for a grant under the program:
(1) the use of the qualifying vehicle must be
projected to result in a reduction in emissions of nitrogen oxides
of at least 25 percent as compared to the motor vehicle or engine
being replaced, based on:
(A) the baseline emission level set by the
commission under Subsection (g); and
(B) the certified emission rate of the new
vehicle; and
(2) the qualifying vehicle must:
(A) replace a heavy-duty or medium-duty motor
vehicle that:
(i) is an on-road vehicle that has been
owned, leased, or otherwise commercially financed and registered
and operated by the applicant in Texas for at least the two years
immediately preceding the submission of a grant application;
(ii) satisfies any minimum average annual
mileage or fuel usage requirements established by the commission;
(iii) satisfies any minimum percentage of
annual usage requirements established by the commission; and
(iv) is in operating condition and has at
least two years of remaining useful life, as determined in
accordance with criteria established by the commission; [or]
(B) be a heavy-duty or medium-duty motor vehicle
repowered with a natural gas engine that:
(i) is installed in an on-road vehicle that
has been owned, leased, or otherwise commercially financed and
registered and operated by the applicant in Texas for at least the
two years immediately preceding the submission of a grant
application;
(ii) satisfies any minimum average annual
mileage or fuel usage requirements established by the commission;
(iii) satisfies any minimum percentage of
annual usage requirements established by the commission; and
(iv) is installed in an on-road vehicle
that, at the time of the vehicle's repowering, was in operating
condition and had at least two years of remaining useful life, as
determined in accordance with criteria established by the
commission.
(c) As a condition of receiving a grant, the qualifying
vehicle must be continuously owned, leased, or otherwise
commercially financed and registered and operated in the state by
the grant recipient until the earlier of the fourth anniversary of
the activity start date established by the commission [the date of
reimbursement of the grant-funded expenses] or [until] the date the
vehicle has been in operation for 400,000 miles after the activity
start date established by the commission [of reimbursement]. Not
less than 75 percent of the annual use of the qualifying vehicle,
either mileage or fuel use as determined by the commission, must
occur in the clean transportation zone [:
[(1) the counties any part of which are included in the
area described by Section 394.010(a); or
[(2) counties designated as nonattainment areas
within the meaning of Section 107(d) of the federal Clean Air Act
(42 U.S.C. Section 7407)].
(c-1) For purposes of Subsection (c), the commission may
establish the activity start date based on the date the commission
accepts verification of the disposition of the vehicle or engine.
(f) A heavy-duty or medium-duty motor vehicle replaced
under this program must be rendered permanently inoperable by
crushing the vehicle, by making a hole in the engine block and
permanently destroying the frame of the vehicle, or by another
method approved by the commission that permanently removes the
vehicle from operation in this state. The commission shall
establish criteria for ensuring the permanent destruction of the
engine or vehicle. The commission shall enforce the destruction
requirements.
(g) The commission shall establish baseline emission levels
for emissions of nitrogen oxides for on-road heavy-duty or
medium-duty motor vehicles being replaced or repowered by using the
emission certification for the engine or vehicle being replaced.
The commission may consider deterioration of the emission
performance of the engine of the vehicle being replaced in
establishing the baseline emission level. The commission may
consider and establish baseline emission rates for additional
pollutants of concern[, as determined by the commission after
consultation with the advisory board].
(i) The executive director may [shall] waive the
requirements of Subsection (b)(2)(A)(i) on a finding of good cause,
which may include short lapses in registration or operation due to
economic conditions, seasonal work, or other circumstances.
SECTION 24. Section 394.006, Health and Safety Code, is
amended to read as follows:
Sec. 394.006. RESTRICTION ON USE OF GRANT. A recipient of a
grant under this chapter shall use the grant to pay the incremental
costs of the replacement or vehicle repower for which the grant is
made, which may include a portion of the initial cost of the natural
gas vehicle or natural gas engine, including the cost of the natural
gas fuel system and installation [and the reasonable and necessary
expenses incurred for the labor needed to install
emissions-reducing equipment]. The recipient may not use the grant
to pay the recipient's administrative expenses.
SECTION 25. Section 394.007(c), Health and Safety Code, is
amended to read as follows:
(c) A person may not receive a grant under this chapter
that, when combined with any other grant, tax credit, or other
governmental incentive, exceeds the incremental cost of the vehicle
or vehicle repower for which the grant is awarded. A person shall
return to the commission the amount of a grant awarded under this
chapter that, when combined with any other grant, tax credit, or
other governmental incentive, exceeds the incremental cost of the
vehicle or vehicle repower for which the grant is awarded.
SECTION 26. Sections 394.008(a) and (b), Health and Safety
Code, are amended to read as follows:
(a) The commission shall establish [adopt] procedures for:
(1) awarding grants under this chapter to reimburse
eligible costs [in the form of rebates]; and
(2) streamlining the grant application, contracting,
reimbursement, and reporting process for qualifying natural gas
vehicle purchases or repowers.
(b) Procedures established [adopted] under this section
must:
(1) provide for the commission to compile and
regularly update a listing of potentially eligible [preapproved]
natural gas vehicles and engines powered by natural gas that are
certified to the appropriate current federal emissions standards as
determined by the commission[:
[(A) powered by natural gas engines certified to
emit not more than 0.2 grams of nitrogen oxides per brake horsepower
hour; or
[(B) certified to the United States
Environmental Protection Agency's light-duty Bin 5 standard or
better];
(2) if a federal standard for the calculation of
emissions reductions exists, provide a method to calculate the
reduction in emissions of nitrogen oxides, volatile organic
compounds, carbon monoxide, particulate matter, and sulfur
compounds for each replacement or repowering;
(3) assign a standardized grant [rebate] amount for
each qualifying vehicle or engine repower under Section 394.007;
(4) allow for processing applications [rebates] on an
ongoing first-come, first-served basis;
(5) [provide for contracts between the commission and
participating dealers under Section 394.009;
[(6) allow grant recipients to assign their grant
funds to participating dealers to offset the purchase or lease
price;
[(7)] require grant applicants to identify natural gas
fueling stations that are available to fuel the qualifying vehicle
in the area of its use;
(6) [(8)] provide for payment not later than the 30th
day after the date the request for reimbursement for an approved
grant is received;
(7) [(9)] provide for application submission and
application status checks, which may include procedures for
application submission and status checks to be made over the
Internet; and
(8) [(10)] consolidate, simplify, and reduce the
administrative work for applicants and the commission associated
with grant application, contracting, reimbursement, and reporting
requirements.
SECTION 27. Section 394.012, Health and Safety Code, is
amended to read as follows:
Sec. 394.012. EXPIRATION. This chapter expires on the last
day of the state fiscal biennium containing the date marking five
years from the United States Environmental Protection Agency
publication of certification in the Federal Register that, with
respect to each national ambient air quality standard for ozone
under 40 C.F.R. Section 81.344, the United States Environmental
Protection Agency has, for each designated area in Texas under that
section:
(1) designated the area as attainment or
unclassifiable; or
(2) approved a redesignation substitute making a
finding of attainment for the area [August 31, 2017].
SECTION 28. Section 151.0515, Tax Code, is amended to add
Subsection (c-1) and to amend Subsection (d) to read as follows:
(c-1) (1) Collection of the surcharge imposed by this
section shall be suspended for a period beginning September 1,
2017, and ending August 31, 2025, with collections to resume
September 1, 2025, provided that this section has not expired prior
to that date.
(2) During the period of suspension in (1), should the
Texas commission on environmental quality estimate a balance in the
fund at an amount that the appropriations and estimated transfers
and other deductions out of the fund for the following state fiscal
biennium will cause the balance in the fund to fall below $500
million during that biennium, the commission shall notify the
comptroller that the fund is estimated to be below the desired base
level. If the comptroller concurs with that estimate, the
suspension period will terminate early, and the comptroller shall
cause collection of the surcharge to resume beginning September 1
of the following state fiscal biennium or as soon thereafter as is
feasible, provided that this section has not expired prior to that
date.
(d) This section expires on the last day of the state fiscal
biennium containing the date marking five years from the United
States Environmental Protection Agency publication of
certification in the Federal Register that, with respect to each
national ambient air quality standard for ozone under 40 C.F.R.
Section 81.344, the United States Environmental Protection Agency
has, for each designated area in Texas under that section:
(1) designated the area as attainment or
unclassifiable; or
(2) approved a redesignation substitute making a
finding of attainment for the area [August 31, 2019].
SECTION 29. Section 152.0215, Tax Code, is amended to add
Subsection (b-1) and to amend Subsection (c) to read as follows:
(b-1) (1) Collection of the surcharge imposed by this
section shall be suspended for a period beginning September 1,
2017, and ending August 31, 2025, with collections to resume
September 1, 2025, provided that this section has not expired prior
to that date.
(2) During the period of suspension in (1), should the
Texas commission on environmental quality estimate a balance in the
Texas emissions reduction plan fund at an amount that the
appropriations and estimated transfers and other deductions out of
the fund for the following state fiscal biennium will cause the
balance in the fund to fall below $500 million during that biennium,
the commission shall notify the comptroller that the fund is
estimated to be below the desired base level. If the comptroller
concurs with that estimate, the suspension period will terminate
early, and the comptroller shall cause collection of the surcharge
to resume beginning September 1 of the following state fiscal
biennium or as soon thereafter as is feasible, provided that this
section has not expired prior to that date.
(c) This section expires on the last day of the state fiscal
biennium containing the date marking five years from the United
States Environmental Protection Agency publication of
certification in the Federal Register that, with respect to each
national ambient air quality standard for ozone under 40 C.F.R.
Section 81.344, the United States Environmental Protection Agency
has, for each designated area in Texas under that section:
(1) designated the area as attainment or
unclassifiable; or
(2) approved a redesignation substitute making a
finding of attainment for the area [August 31, 2019].
SECTION 30. Section 501.138, Transportation Code, is
amended to amend Subsections (b-1) and (b-3) to read as follows:
(b-1) Fees collected under Subsection (b) to be sent to the
comptroller shall be deposited to the credit of the Texas Mobility
Fund[, except that $5 of each fee imposed under Subsection (a)(1)
and deposited on or after September 1, 2008, and before September 1,
2015, shall be deposited to the credit of the Texas emissions
reduction plan fund].
(b-3) This subsection and Subsection (b-2) expire August
31, 2017 [2019].
SECTION 31. Section 502.358, Transportation Code, is
amended to add Subsection (b-1) and to amend Subsection (c) to read
as follows:
(b-1) (1) Collection of the surcharge imposed by this
section shall be suspended for a period beginning September 1,
2017, and ending August 31, 2025, with collections to resume
September 1, 2025, provided that this section has not expired prior
to that date.
(2) During the period of suspension in (1), should the
Texas commission on environmental quality estimate a balance in the
Texas emissions reduction plan fund at an amount that the
appropriations and estimated transfers and other deductions out of
the fund for the following state fiscal biennium will cause the
balance in the fund to fall below $500 million during that biennium,
the commission shall notify the comptroller that the fund is
estimated to be below the desired base level. If the comptroller
concurs with that estimate, the suspension period will terminate
early, and the comptroller shall cause collection of the surcharge
to resume beginning September 1 of the following state fiscal
biennium or as soon thereafter as is feasible, provided that this
section has not expired prior to that date.
(c) This section expires on the last day of the state fiscal
biennium containing the date marking five years from the United
States Environmental Protection Agency publication of
certification in the Federal Register that, with respect to each
national ambient air quality standard for ozone under 40 C.F.R.
Section 81.344, the United States Environmental Protection Agency
has, for each designated area in Texas under that section:
(1) designated the area as attainment or
unclassifiable; or
(2) approved a redesignation substitute making a
finding of attainment for the area [August 31, 2019].
SECTION 32. The heading to Section 548.5055, Transportation
Code, is amended to read as follows:
Sec. 548.5055. TEXAS EMISSIONS [EMISSION] REDUCTION PLAN
FEE.
SECTION 33. Section 548.5055, Transportation Code, is
amended to add Subsection (b-1) and to amend Subsections (b) and (c)
to read as follows:
(b) The department shall remit fees collected under this
section to the comptroller at the time and in the manner prescribed
by the comptroller for deposit in the Texas emissions [emission]
reduction plan fund.
(b-1) Collection of the fee imposed by this section shall be
suspended for a period beginning September 1, 2017, and ending
August 31, 2025, with collections to resume September 1, 2025,
provided that this section has not expired prior to that date.
(2) During the period of suspension in (1), should the
Texas commission on environmental quality estimate a balance in the
Texas emissions reduction plan fund at an amount that the
appropriations and estimated transfers and other deductions out of
the fund for the following state fiscal biennium will cause the
balance in the fund to fall below $500 million during that biennium,
the commission shall notify the comptroller and the department that
the fund is estimated to be below the desired base level. If the
comptroller agrees with that estimate, the comptroller shall notify
the department and the suspension period will terminate early.
Upon notification, the department shall cause collection of the fee
to resume beginning September 1 of the following state fiscal
biennium or as soon thereafter as is feasible, provided that this
section has not expired prior to that date.
(c) This section expires on the last day of the state fiscal
biennium containing the date marking five years from the United
States Environmental Protection Agency publication of
certification in the Federal Register that, with respect to each
national ambient air quality standard for ozone under 40 C.F.R.
Section 81.344, the United States Environmental Protection Agency
has, for each designated area in Texas under that section:
(1) designated the area as attainment or
unclassifiable; or
(2) approved a redesignation substitute making a
finding of attainment for the area [August 31, 2019].
SECTION 34. Sections 394.009, 394.010, and 394.011, Health
and Safety Code, are repealed.
SECTION 35. The changes in law made by this Act apply only
to a Texas emissions reduction plan grant awarded on or after the
effective date of this Act. A grant awarded before the effective
date of this Act is governed by the law in effect on the date the
award was made, and the former law is continued in effect for that
purpose.
SECTION 36. The changes in law made by this Act apply only
to a fee or surcharge collected on or after the effective date of
this Act. A fee or surcharge collected before the effective date of
this Act is governed by the law in effect when the fee or surcharge
was collected, and the former law is continued in effect for that
purpose.
SECTION 37. This Act takes effect August 30, 2017.