Texas 2017 - 85th Regular

Texas House Bill HB3479 Compare Versions

Only one version of the bill is available at this time.

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1	1	By: Pickett H.B. No. 3479
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the Texas emissions reduction plan and other related
7	7	programs and measures to reduce emissions.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 386.001(3), Health and Safety Code, is
10	10	amended to read as follows:
11	11	(3) "Commission" means the Texas [Natural Resource
12	12	Conservation] Commission on Environmental Quality.
13	13	SECTION 2. Section 386.002, Health and Safety Code, is
14	14	amended to read as follows:
15	15	Sec. 386.002. EXPIRATION. This chapter expires on the last
16	16	day of the state fiscal biennium containing the date marking five
17	17	years from the United States Environmental Protection Agency
18	18	publication of certification in the Federal Register that, with
19	19	respect to each national ambient air quality standard for ozone
20	20	under 40 C.F.R. Section 81.344, the United States Environmental
21	21	Protection Agency has, for each designated area in Texas under that
22	22	section:
23	23	(1) designated the area as attainment or
24	24	unclassifiable; or
25	25	(2) approved a redesignation substitute making a
26	26	finding of attainment for the area [August 31, 2019].
27	27	SECTION 3. Section 386.051(b), Health and Safety Code, is
28	28	amended to read as follows:
29	29	(b) Under the plan, the commission [and the comptroller]
30	30	shall provide grants or other funding for:
31	31	(1) the diesel emissions reduction incentive program
32	32	established under Subchapter C, including for infrastructure
33	33	projects established under that subchapter;
34	34	(2) the seaport and rail yard areas emissions
35	35	reduction program established under Subchapter D-1 [the motor
36	36	vehicle purchase or lease incentive program established under
37	37	Subchapter D];
38	38	(3) the new technology implementation grant program
39	39	established under Chapter 391 [the air quality research support
40	40	program established under Chapter 387];
41	41	(4) the clean fleet program established under Chapter
42	42	392 [the clean school bus program established under Chapter 390];
43	43	(5) the natural gas vehicle grant program established
44	44	under Chapter 394 [the new technology implementation grant program
45	45	established under Chapter 391];
46	46	(6) a contract with the Energy Systems Laboratory at
47	47	the Texas A&M Engineering Experiment Station for computation of
48	48	creditable statewide emissions reductions as provided by Section
49	49	386.252(a) [the regional air monitoring program established under
50	50	Section 386.252(a)];
51	51	(7) other programs the commission may develop that
52	52	lead to reduced emissions of nitrogen oxides, particulate matter,
53	53	or volatile organic compounds in a nonattainment area or affected
54	54	county [a health effects study as provided by Section 386.252(a)];
55	55	and
56	56	(8) other programs the commission may develop that
57	57	support congestion mitigation to reduce mobile source ozone
58	58	precursor emissions [air quality planning activities as provided by
59	59	Section 386.252(a);
60	60	(9) a contract with the Energy Systems Laboratory at
61	61	the Texas A&M Engineering Experiment Station for computation of
62	62	creditable statewide emissions reductions as provided by Section
63	63	386.252(a)(14);
64	64	(10) the clean fleet program established under Chapter
65	65	392;
66	66	(11) the alternative fueling facilities program
67	67	established under Chapter 393;
68	68	(12) the natural gas vehicle grant program and clean
69	69	transportation triangle program established under Chapter 394;
70	70	(13) other programs the commission may develop that
71	71	lead to reduced emissions of nitrogen oxides, particulate matter,
72	72	or volatile organic compounds in a nonattainment area or affected
73	73	county;
74	74	(14) other programs the commission may develop that
75	75	support congestion mitigation to reduce mobile source ozone
76	76	precursor emissions; and
77	77	(15) the drayage truck incentive program established
78	78	under Subchapter D-1].
79	79	SECTION 4. Sections 386.0515(a) and (c), Health and Safety
80	80	Code, are amended to read as follows:
81	81	(a) In this section:
82	82	(1) "Agricultural[, "agricultural] product
83	83	transportation" means the transportation of a raw agricultural
84	84	product from the place of production using a heavy-duty truck to:
85	85	(A) [(1)] a nonattainment area;
86	86	(B) [(2)] an affected county;
87	87	(C) [(3)] a destination inside the clean
88	88	transportation zone [triangle]; or
89	89	(D) [(4)] a county adjacent to a county described
90	90	by Paragraph (B) [Subdivision (2)] or that contains an area
91	91	described by Paragraph (A) or (C) [Subdivision (1) or (3)].
92	92	(2) "Clean transportation zone" has the meaning
93	93	assigned by Section 394.001.
94	94	(c) The determining factor for eligibility for
95	95	participation in a program established under Chapter 392 or
96	96	[Chapter] 394[, as added by Chapter 892 (Senate Bill No. 385), Acts
97	97	of the 82nd Legislature, Regular Session, 2011,] for a project
98	98	relating to agricultural product transportation is the overall
99	99	accumulative net reduction in emissions of oxides of nitrogen in a
100	100	nonattainment area, an affected county, or the clean transportation
101	101	zone [triangle].
102	102	SECTION 5. Section 386.104(j), Health and Safety Code, is
103	103	amended to read as follows:
104	104	(j) The executive director may [shall] waive any
105	105	eligibility requirements established under this section on a
106	106	finding of good cause, which may include a waiver for short lapses
107	107	in registration or operation attributable to economic conditions,
108	108	seasonal work, or other circumstances.
109	109	SECTION 6. Section 386.116(a), Health and Safety Code, is
110	110	amended to read as follows:
111	111	Sec. 386.116. SMALL BUSINESS INCENTIVES. (a) In this
112	112	section, "small business" means a business owned by a person who:
113	113	(1) owns and operates not more than two vehicles, one
114	114	of which is:
115	115	(A) an on-road diesel [with a pre-1994 engine
116	116	model]; or
117	117	(B) a non-road diesel [with an engine with
118	118	uncontrolled emissions]; and
119	119	(2) has owned the vehicle described by Subdivision
120	120	(1)(A) or (B) for more than two years [one year].
121	121	SECTION 7. Subchapter D-1, Chapter 386, Health and Safety
122	122	Code, is retitled as follows:
123	123	SUBCHAPTER D-1. SEAPORT AND RAIL YARD AREAS EMISSIONS REDUCTION
124	124	PROGRAM [DRAYAGE TRUCK INCENTIVE PROGRAM]
125	125	SECTION 8. Section 386.181(a), Health and Safety Code, is
126	126	amended to read as follows:
127	127	(a) In this subchapter[,]:
128	128	(1) "cargo handling equipment" means any heavy-duty
129	129	non-road, self-propelled vehicle or land based equipment used at a
130	130	seaport or rail yard to lift or move cargo, such as containerized,
131	131	bulk, or break-bulk goods; and
132	132	(2) "drayage truck" means a heavy-duty on-road or
133	133	non-road vehicle used for drayage activities and that operates or
134	134	transgresses through a seaport or rail yard for the purpose of
135	135	loading, unloading, or transporting cargo, including transporting
136	136	empty containers and chassis [truck that transports a load to or
137	137	from a seaport or rail yard].
138	138	SECTION 9. Section 386.182, Health and Safety Code, is
139	139	amended to amend Subsections (a) and (b) to read as follows:
140	140	(a) The commission shall develop a purchase incentive
141	141	program to encourage owners to replace older drayage trucks and
142	142	cargo handling equipment [with pre-2007 model year engines] with
143	143	newer drayage trucks and cargo handling equipment and shall adopt
144	144	guidelines necessary to implement the program.
145	145	(b) The commission by rule and guideline shall establish
146	146	criteria for the models of drayage trucks and cargo handling
147	147	equipment that are eligible for inclusion in an incentive program
148	148	under this subchapter. [The guidelines must provide that a drayage
149	149	truck owner is not eligible for an incentive payment under this
150	150	subchapter unless the truck being replaced contains a pre-2007
151	151	model year engine and the replacement truck's engine is from model
152	152	year 2010 or later as determined by the commission and that the
153	153	truck operates at a seaport or rail yard.]
154	154	SECTION 10. Section 386.183, Health and Safety Code, is
155	155	amended to amend the section title and subsections (a), (b), (c),
156	156	(d), and (e), and to add new subsections (a-1) and (a-2) as follows:
157	157	Sec. 386.183. DRAYAGE TRUCK AND CARGO HANDLING EQUIPMENT
158	158	PURCHASE INCENTIVE. (a) To be eligible for an incentive under this
159	159	subchapter, a person must:
160	160	(1) purchase a replacement drayage truck or cargo
161	161	handling equipment that under the guidelines adopted by the
162	162	commission under Section 386.182 is eligible for inclusion in the
163	163	program for an incentive under this subchapter; and
164	164	(2) agree to:
165	165	(A) register the drayage truck in this state, if
166	166	the truck is an on-road vehicle;
167	167	(B) operate the drayage truck or cargo handling
168	168	equipment in and within a maximum distance established by the
169	169	commission of a seaport or rail yard in a nonattainment area of this
170	170	state for not less than 50 percent of the vehicle's annual mileage
171	171	or hours of operation, as determined by the commission; and
172	172	(C) permanently remove the drayage truck or cargo
173	173	handling equipment [a pre-2007 drayage truck containing a pre-2007
174	174	engine] replaced under the program [owned by the person] from
175	175	operation in a nonattainment area of this state by destroying the
176	176	engine and scrapping the truck or equipment after the purchase of
177	177	the replacement [new] truck or equipment in accordance with
178	178	guidelines established by the commission.
179	179	(a-1) To be eligible for replacement under this program a
180	180	drayage truck or cargo handling equipment must contain an engine of
181	181	a model year or certified to a federal emissions standard
182	182	established by the commission sufficient to ensure that the project
183	183	will achieve at least a 25 percent reduction in nitrogen oxides
184	184	emissions.
185	185	(a-2) To be eligible for purchase under this program a
186	186	drayage truck or cargo handling equipment must be powered by an
187	187	electric motor or contain an engine certified to the current
188	188	federal emission standards applicable to that type of engine, as
189	189	determined by the commission.
190	190	(b) To receive money under an incentive program provided by
191	191	this subchapter, the purchaser of a drayage truck or cargo handling
192	192	equipment eligible for inclusion in the program must apply for the
193	193	incentive in the manner provided by law, rule, or guideline of the
194	194	commission.
195	195	(c) Not more than one incentive may be provided for each
196	196	drayage truck or cargo handling equipment purchased.
197	197	(d) An incentive provided under this subchapter may be used
198	198	to fund not more than 80 percent of the purchase price of the
199	199	drayage truck or cargo handling equipment.
200	200	(e) The commission shall establish procedures to verify
201	201	that a person who receives an incentive:
202	202	(1) has operated in a seaport or rail yard and owned or
203	203	leased the drayage truck or cargo handling equipment to be replaced
204	204	for at least two years prior to receiving the grant; and
205	205	(2) permanently destroys the engine and scraps the
206	206	drayage truck or cargo handling equipment replaced under the
207	207	program [that contained the pre-2007 engine owned or leased by the
208	208	person,] in accordance with guidelines established by the
209	209	commission, after the purchase of the replacement [new] truck or
210	210	equipment.
211	211	(f) The commission may modify this program to improve its
212	212	effectiveness or further the goals of Subchapter B.
213	213	SECTION 11. Section 386.251(c), Health and Safety Code, is
214	214	amended to read as follows:
215	215	(c) The fund consists of:
216	216	(1) the amount of money deposited to the credit of the
217	217	fund under:
218	218	(A) Section 386.056;
219	219	(B) Sections 151.0515 and 152.0215, Tax Code; and
220	220	(C) Sections [501.138,] 502.358[,] and 548.5055,
221	221	Transportation Code; and
222	222	(2) grant money recaptured under Section 386.111(d)
223	223	and Chapter 391.
224	224	SECTION 12. Section 386.252, Health and Safety Code, is
225	225	amended to read as follows:
226	226	Sec. 386.252. USE OF FUND. (a) Money in the fund may be
227	227	used only to implement and administer programs established under
228	228	the plan. Subject to the reallocation of funds by the commission
229	229	under Subsection (f), money [Money] appropriated to the commission
230	230	to be used for the programs under Section 386.051(b) shall be
231	231	allocated as follows:
232	232	(1) five percent may be used for the clean fleet
233	233	program under Chapter 392 [not more than four percent may be used
234	234	for the clean school bus program under Chapter 390];
235	235	(2) 10 percent may be used for the Texas natural gas
236	236	vehicle grant program under Chapter 394 [not more than three
237	237	percent may be used for the new technology implementation grant
238	238	program under Chapter 391, from which at least $1 million will be
239	239	set aside for electricity storage projects related to renewable
240	240	energy];
241	241	(3) two percent may be used for the seaport and rail
242	242	yard areas emissions reduction program established under
243	243	Subchapter D-1 [five percent shall be used for the clean fleet
244	244	program under Chapter 392];
245	245	(4) at least $4 million and up to four percent to a
246	246	maximum of $7 million, whichever is greater, may be used by the
247	247	commission for administrative costs and costs for conducting
248	248	outreach and education activities to promote participation in the
249	249	programs funded under this section [not more than $3 million may be
250	250	used by the commission to fund a regional air monitoring program in
251	251	commission Regions 3 and 4 to be implemented under the commission's
252	252	oversight, including direction regarding the type, number,
253	253	location, and operation of, and data validation practices for,
254	254	monitors funded by the program through a regional nonprofit entity
255	255	located in North Texas having representation from counties,
256	256	municipalities, higher education institutions, and private sector
257	257	interests across the area];
258	258	(5) not more than $216,000 may be used by the
259	259	commission to contract with the Energy Systems Laboratory at the
260	260	Texas A&M Engineering Experiment Station annually for the
261	261	development and annual computation of creditable statewide
262	262	emissions reductions obtained through wind and other renewable
263	263	energy resources for the state implementation plan [not less than
264	264	16 percent shall be used for the Texas natural gas vehicle grant
265	265	program under Chapter 394]; and
266	266	(6) the balance may be used by the commission for the
267	267	diesel emissions reduction incentive program under Subchapter C as
268	268	determined by the commission [not more than five percent may be used
269	269	[to provide grants for natural gas fueling stations under the clean
270	270	transportation triangle program under Section 394.010;
271	271	(7) not more than five percent may be used for the
272	272	Texas alternative fueling facilities program under Chapter 393;
273	273	(8) a specified amount may be used each year to support
274	274	research related to air quality as provided by Chapter 387;
275	275	(9) not more than $200,000 may be used for a health
276	276	effects study[;
277	277	(10) $500,000 is to be deposited in the state treasury
278	278	to the credit of the clean air account created under Section
279	279	382.0622 to supplement funding for air quality planning activities
280	280	in affected counties;
281	281	(11) at least $4 million and up to four percent to a
282	282	maximum of $7 million, whichever is greater, is allocated to the
283	283	commission for administrative costs;
284	284	(12) at least two percent and up to five percent of the
285	285	fund is to be used by the commission for the drayage truck incentive
286	286	program established under Subchapter D-1;
287	287	(13) not more than five percent may be used for the
288	288	light-duty motor vehicle purchase or lease incentive program
289	289	established under Subchapter D;
290	290	(14) not more than $216,000 is allocated to the
291	291	commission to contract with the Energy Systems Laboratory at the
292	292	Texas A&M Engineering Experiment Station annually for the
293	293	development and annual computation of creditable statewide
294	294	emissions reductions obtained through wind and other renewable
295	295	energy resources for the state implementation plan;
296	296	(15) 1.5 percent of the money in the fund is allocated
297	297	for administrative costs incurred by the laboratory; and
298	298	(16) the balance is to be used by the commission for
299	299	the diesel emissions reduction incentive program under Subchapter C
300	300	as determined by the commission].
301	301	(b) Money in the fund may be used by the commission for
302	302	programs under Sections 386.051(b)(7), (b)(8), and (b-1) as may be
303	303	appropriated for those programs [The commission may allocate
304	304	unexpended money designated for the clean fleet program under
305	305	Chapter 392 to other programs described under Subsection (a) after
306	306	the commission allocates money to recipients under the clean fleet
307	307	program].
308	308	(c) If the legislature does not specify amounts or
309	309	percentages from the total appropriation to the commission to be
310	310	allocated under Subsection (a) or (b), the commission shall
311	311	determine the amounts of the total appropriation to be allocated
312	312	under each of those subsections, such that the total appropriation
313	313	is expended while maximizing emissions reductions [The commission
314	314	may allocate unexpended money designated for the Texas alternative
315	315	fueling facilities program under Chapter 393 to other programs
316	316	described under Subsection (a) after the commission allocates money
317	317	to recipients under the alternative fueling facilities program].
318	318	(d) To supplement funding for air quality planning
319	319	activities in affected counties, $500,000 from the fund is to be
320	320	deposited annually in the state treasury to the credit of the clean
321	321	air account created under Section 382.0622 [The commission may
322	322	reallocate money designated for the Texas natural gas vehicle grant
323	323	program under Chapter 394 to other programs described under
324	324	Subsection (a) if:
325	325	(1) the commission, in consultation with the governor
326	326	and the advisory board, determines that the use of the money in the
327	327	fund for that program will cause the state to be in noncompliance
328	328	with the state implementation plan to the extent that federal
329	329	actions is likely; and
330	330	(2) the commission finds that the reallocation of some
331	331	or all of the funding for the program would resolve the
332	332	noncompliance].
333	333	(e) Money in the fund may be allocated for administrative
334	334	costs incurred by the Energy Systems Laboratory at the Texas A&M
335	335	Engineering Experiment Station as may be appropriated by the
336	336	legislature [Under Subsection (d), the commission may not
337	337	reallocate more than the minimum amount of money necessary to
338	338	resolve the noncompliance].
339	339	[(e-1) Money allocated under Subsection (a) to a particular
340	340	program may be used for another program under the plan as determined
341	341	by the commission.
342	342	(f) Subject to the limitations outlined in this section and
343	343	any additional limitations placed on the use of the appropriated
344	344	funds, money allocated under this section to a particular program
345	345	may be used for another program under the plan as determined by the
346	346	commission, based on demand for grants for eligible projects under
347	347	particular programs after the commission solicits projects to which
348	348	to award grants according to the initial allocation provisions of
349	349	this section [Money in the fund may be used by the commission for
350	350	programs under Sections 386.051(b)(13), (b)(14), and (b-1) as may
351	351	be appropriated for those programs].
352	352	[(g) If the legislature does not specify amounts or
353	353	percentages from the total appropriation to the commission to be
354	354	allocated under Subsection (a) or (b) [(f)], the commission shall
355	355	determine the amounts of the total appropriation to be allocated
356	356	under each of those subsections, such that the total appropriation
357	357	is expended while maximizing emissions reductions.]
358	358	SECTION 13. Section 390.006, Health and Safety Code, is
359	359	amended to read as follows:
360	360	Sec. 390.006. EXPIRATION. This chapter expires August 31,
361	361	2017 [2019].
362	362	SECTION 14. Section 391.304, Health and Safety Code, is
363	363	amended to read as follows:
364	364	Sec. 391.304. EXPIRATION. This chapter expires August 31,
365	365	2017 [2019].
366	366	SECTION 15. Section 392.001(1), Health and Safety Code, is
367	367	amended to read as follows:
368	368	(1) "Alternative fuel" means a fuel other than
369	369	gasoline or diesel fuel, including electricity, compressed natural
370	370	gas, liquefied [liquified] natural gas, hydrogen, propane, or a
371	371	mixture of fuels containing at least 85 percent methanol by volume.
372	372	SECTION 16. Section 392.003(a), Health and Safety Code, is
373	373	amended to read as follows:
374	374	(a) A vehicle is a qualifying vehicle that may be considered
375	375	for a grant under the program if during the eligibility period
376	376	established by the commission [calendar year] the entity purchases
377	377	a new on-road vehicle that:
378	378	(1) is certified to the appropriate current federal
379	379	emissions standards as determined by the commission;
380	380	(2) replaces a diesel-powered on-road vehicle of the
381	381	same weight classification and use; and
382	382	(3) is a hybrid vehicle or fueled by an alternative
383	383	fuel.
384	384	SECTION 17. Section 392.004(d), Health and Safety Code, is
385	385	amended to read as follows:
386	386	(d) The commission shall minimize, to the maximum extent
387	387	possible, the amount of paperwork required for an application. [An
388	388	applicant may be required to submit a photograph or other
389	389	documentation of a vehicle identification number, registration
390	390	information, inspection information, tire condition, or engine
391	391	block identification only if the photograph or documentation is
392	392	requested by the commission after the commission has decided to
393	393	award a grant to the applicant under this chapter.]
394	394	SECTION 18. Section 392.005, Health and Safety Code, is
395	395	amended by amending Subsections (c) and (i) and adding Subsection
396	396	(c-1) to read as follows:
397	397	(c) As a condition of receiving a grant, the qualifying
398	398	vehicle must be continuously owned, registered, and operated in the
399	399	state by the grant recipient until the earlier of the fifth
400	400	anniversary of the activity start date established by the
401	401	commission [the date of reimbursement of the grant-funded expenses]
402	402	or [until] the date the vehicle has been in operation for 400,000
403	403	miles after the activity start date established by the commission
404	404	[of reimbursement]. Not less than 75 percent of the annual use of
405	405	the qualifying vehicle, either mileage or fuel use as determined by
406	406	the commission, must occur in the state.
407	407	(c-1) For purposes of Subsection (c), the commission may
408	408	establish the activity start date based on the date the commission
409	409	accepts verification of the disposition of the vehicle being
410	410	replaced.
411	411	(i) The executive director may [shall] waive the
412	412	requirements of Subsection (b)(2)(A) on a finding of good cause,
413	413	which may include a waiver for short lapses in registration or
414	414	operation attributable to economic conditions, seasonal work, or
415	415	other circumstances.
416	416	SECTION 19. Section 392.008, Health and Safety Code, is
417	417	amended to read as follows:
418	418	Sec. 392.008. EXPIRATION. This chapter expires on the last
419	419	day of the state fiscal biennium containing the date marking five
420	420	years from the United States Environmental Protection Agency
421	421	publication of certification in the Federal Register that, with
422	422	respect to each national ambient air quality standard for ozone
423	423	under 40 C.F.R. Section 81.344, the United States Environmental
424	424	Protection Agency has, for each designated area in Texas under that
425	425	section:
426	426	(1) designated the area as attainment or
427	427	unclassifiable; or
428	428	(2) approved a redesignation substitute making a
429	429	finding of attainment for the area [August 31, 2017].
430	430	SECTION 20. Section 393.007, Health and Safety Code, is
431	431	amended to read as follows:
432	432	Sec. 393.007. EXPIRATION. This chapter expires August 31,
433	433	2017 [2018].
434	434	SECTION 21. Section 394.001, Health and Safety Code, is
435	435	amended by amending Subdivisions (1), (4), (5), and (8) and adding
436	436	Subdivision (7-a) to read as follows:
437	437	(1) "Clean transportation zone" means:
438	438	(A) counties containing or intersected by a
439	439	portion of an interstate highway connecting the cities of Houston,
440	440	San Antonio, Dallas, and Fort Worth;
441	441	(B) counties located within the area bounded by
442	442	the interstate highways described by Paragraph (A);
443	443	(C) counties containing or intersected by a
444	444	portion of:
445	445	(i) an interstate highway connecting San
446	446	Antonio to Corpus Christi or Laredo; or
447	447	(ii) highways connecting Corpus Christi and
448	448	Laredo;
449	449	(D) counties located within the area bounded by
450	450	the highways described by Paragraph (C);
451	451	(E) counties in this state all or part of which
452	452	are included in a nonattainment area designated under Section
453	453	107(d) of the federal Clean Air Act (42 U.S.C. Section 7407); and
454	454	(F) counties designated as affected counties
455	455	under Section 386.001 ["Advisory board" means the Texas Emissions
456	456	Reduction Plan Advisory Board].
457	457	(4) "Heavy-duty motor vehicle" means a motor vehicle
458	458	that [with]:
459	459	(A) has a gross vehicle weight rating of more
460	460	than 8,500 pounds; and
461	461	(B) is certified to or has an engine certified to
462	462	the United States Environmental Protection Agency's emissions
463	463	standards for heavy-duty vehicles or engines.
464	464	(5) "Incremental cost" has the meaning assigned by
465	465	Section 386.001 [means the difference between the manufacturer's
466	466	suggested retail price of a baseline vehicle, the documented dealer
467	467	price of a baseline vehicle, cost to lease or otherwise
468	468	commercially finance a baseline vehicle, cost to repower with a
469	469	baseline engine, or other appropriate baseline cost established by
470	470	the commission, and the actual cost of the natural gas vehicle
471	471	purchase, lease, or other commercial financing, or repower].
472	472	(7-a) "Natural gas engine" means an engine that
473	473	operates:
474	474	(A) solely on compressed or liquefied natural
475	475	gas; or
476	476	(B) receives not less than 75 percent of its
477	477	power from compressed or liquefied natural gas.
478	478	(8) "Natural gas vehicle" means a motor vehicle that
479	479	is powered by a natural gas engine [receives not less than 75
480	480	percent of its power from compressed or liquefied natural gas].
481	481	SECTION 22. Section 394.003(a), Health and Safety Code, is
482	482	amended to read as follows:
483	483	(a) A vehicle is a qualifying vehicle that may be considered
484	484	for a grant under the program if during the eligibility period
485	485	established by the commission [calendar year] the entity:
486	486	(1) purchased, leased, or otherwise commercially
487	487	financed the vehicle as a new on-road heavy-duty or medium-duty
488	488	motor vehicle that:
489	489	(A) is a natural gas vehicle;
490	490	(B) is certified to the appropriate current
491	491	federal emissions standards as determined by the commission; and
492	492	(C) replaces an on-road heavy-duty or
493	493	medium-duty motor vehicle of the same weight classification and
494	494	use; [and
495	495	[(D) is powered by an engine certified to:
496	496	[(i) emit not more than 0.2 grams of
497	497	nitrogen oxides per brake horsepower hour; or
498	498	[(ii) meet or exceed the United States
499	499	Environmental Protection Agency's Bin 5 standard for light-duty
500	500	engines when powering the vehicle;] or
501	501	(2) repowered the on-road motor vehicle to a natural
502	502	gas vehicle powered by a natural gas engine that[:
503	503	[(A)] is certified to the appropriate current
504	504	federal emissions standards as determined by the commission[; and
505	505	[(B) is:
506	506	[(i) a heavy-duty engine that is certified
507	507	to emit not more than 0.2 grams of nitrogen oxides per brake
508	508	horsepower hour; or
509	509	[(ii) certified to meet or exceed the
510	510	United States Environmental Protection Agency's Bin 5 standard for
511	511	light-duty engines when powering the vehicle].
512	512	SECTION 23. Section 394.005, Health and Safety Code, is
513	513	amended by amending Subsections (a), (b), (c), (f), (g), and (i) and
514	514	adding Subsection (c-1) to read as follows:
515	515	(a) The commission [by rule] shall establish criteria for
516	516	prioritizing qualifying vehicles eligible to receive grants under
517	517	this chapter. The commission shall review and revise the criteria
518	518	as appropriate [after consultation with the advisory board].
519	519	(b) To be eligible for a grant under the program:
520	520	(1) the use of the qualifying vehicle must be
521	521	projected to result in a reduction in emissions of nitrogen oxides
522	522	of at least 25 percent as compared to the motor vehicle or engine
523	523	being replaced, based on:
524	524	(A) the baseline emission level set by the
525	525	commission under Subsection (g); and
526	526	(B) the certified emission rate of the new
527	527	vehicle; and
528	528	(2) the qualifying vehicle must:
529	529	(A) replace a heavy-duty or medium-duty motor
530	530	vehicle that:
531	531	(i) is an on-road vehicle that has been
532	532	owned, leased, or otherwise commercially financed and registered
533	533	and operated by the applicant in Texas for at least the two years
534	534	immediately preceding the submission of a grant application;
535	535	(ii) satisfies any minimum average annual
536	536	mileage or fuel usage requirements established by the commission;
537	537	(iii) satisfies any minimum percentage of
538	538	annual usage requirements established by the commission; and
539	539	(iv) is in operating condition and has at
540	540	least two years of remaining useful life, as determined in
541	541	accordance with criteria established by the commission; [or]
542	542	(B) be a heavy-duty or medium-duty motor vehicle
543	543	repowered with a natural gas engine that:
544	544	(i) is installed in an on-road vehicle that
545	545	has been owned, leased, or otherwise commercially financed and
546	546	registered and operated by the applicant in Texas for at least the
547	547	two years immediately preceding the submission of a grant
548	548	application;
549	549	(ii) satisfies any minimum average annual
550	550	mileage or fuel usage requirements established by the commission;
551	551	(iii) satisfies any minimum percentage of
552	552	annual usage requirements established by the commission; and
553	553	(iv) is installed in an on-road vehicle
554	554	that, at the time of the vehicle's repowering, was in operating
555	555	condition and had at least two years of remaining useful life, as
556	556	determined in accordance with criteria established by the
557	557	commission.
558	558	(c) As a condition of receiving a grant, the qualifying
559	559	vehicle must be continuously owned, leased, or otherwise
560	560	commercially financed and registered and operated in the state by
561	561	the grant recipient until the earlier of the fourth anniversary of
562	562	the activity start date established by the commission [the date of
563	563	reimbursement of the grant-funded expenses] or [until] the date the
564	564	vehicle has been in operation for 400,000 miles after the activity
565	565	start date established by the commission [of reimbursement]. Not
566	566	less than 75 percent of the annual use of the qualifying vehicle,
567	567	either mileage or fuel use as determined by the commission, must
568	568	occur in the clean transportation zone [:
569	569	[(1) the counties any part of which are included in the
570	570	area described by Section 394.010(a); or
571	571	[(2) counties designated as nonattainment areas
572	572	within the meaning of Section 107(d) of the federal Clean Air Act
573	573	(42 U.S.C. Section 7407)].
574	574	(c-1) For purposes of Subsection (c), the commission may
575	575	establish the activity start date based on the date the commission
576	576	accepts verification of the disposition of the vehicle or engine.
577	577	(f) A heavy-duty or medium-duty motor vehicle replaced
578	578	under this program must be rendered permanently inoperable by
579	579	crushing the vehicle, by making a hole in the engine block and
580	580	permanently destroying the frame of the vehicle, or by another
581	581	method approved by the commission that permanently removes the
582	582	vehicle from operation in this state. The commission shall
583	583	establish criteria for ensuring the permanent destruction of the
584	584	engine or vehicle. The commission shall enforce the destruction
585	585	requirements.
586	586	(g) The commission shall establish baseline emission levels
587	587	for emissions of nitrogen oxides for on-road heavy-duty or
588	588	medium-duty motor vehicles being replaced or repowered by using the
589	589	emission certification for the engine or vehicle being replaced.
590	590	The commission may consider deterioration of the emission
591	591	performance of the engine of the vehicle being replaced in
592	592	establishing the baseline emission level. The commission may
593	593	consider and establish baseline emission rates for additional
594	594	pollutants of concern[, as determined by the commission after
595	595	consultation with the advisory board].
596	596	(i) The executive director may [shall] waive the
597	597	requirements of Subsection (b)(2)(A)(i) on a finding of good cause,
598	598	which may include short lapses in registration or operation due to
599	599	economic conditions, seasonal work, or other circumstances.
600	600	SECTION 24. Section 394.006, Health and Safety Code, is
601	601	amended to read as follows:
602	602	Sec. 394.006. RESTRICTION ON USE OF GRANT. A recipient of a
603	603	grant under this chapter shall use the grant to pay the incremental
604	604	costs of the replacement or vehicle repower for which the grant is
605	605	made, which may include a portion of the initial cost of the natural
606	606	gas vehicle or natural gas engine, including the cost of the natural
607	607	gas fuel system and installation [and the reasonable and necessary
608	608	expenses incurred for the labor needed to install
609	609	emissions-reducing equipment]. The recipient may not use the grant
610	610	to pay the recipient's administrative expenses.
611	611	SECTION 25. Section 394.007(c), Health and Safety Code, is
612	612	amended to read as follows:
613	613	(c) A person may not receive a grant under this chapter
614	614	that, when combined with any other grant, tax credit, or other
615	615	governmental incentive, exceeds the incremental cost of the vehicle
616	616	or vehicle repower for which the grant is awarded. A person shall
617	617	return to the commission the amount of a grant awarded under this
618	618	chapter that, when combined with any other grant, tax credit, or
619	619	other governmental incentive, exceeds the incremental cost of the
620	620	vehicle or vehicle repower for which the grant is awarded.
621	621	SECTION 26. Sections 394.008(a) and (b), Health and Safety
622	622	Code, are amended to read as follows:
623	623	(a) The commission shall establish [adopt] procedures for:
624	624	(1) awarding grants under this chapter to reimburse
625	625	eligible costs [in the form of rebates]; and
626	626	(2) streamlining the grant application, contracting,
627	627	reimbursement, and reporting process for qualifying natural gas
628	628	vehicle purchases or repowers.
629	629	(b) Procedures established [adopted] under this section
630	630	must:
631	631	(1) provide for the commission to compile and
632	632	regularly update a listing of potentially eligible [preapproved]
633	633	natural gas vehicles and engines powered by natural gas that are
634	634	certified to the appropriate current federal emissions standards as
635	635	determined by the commission[:
636	636	[(A) powered by natural gas engines certified to
637	637	emit not more than 0.2 grams of nitrogen oxides per brake horsepower
638	638	hour; or
639	639	[(B) certified to the United States
640	640	Environmental Protection Agency's light-duty Bin 5 standard or
641	641	better];
642	642	(2) if a federal standard for the calculation of
643	643	emissions reductions exists, provide a method to calculate the
644	644	reduction in emissions of nitrogen oxides, volatile organic
645	645	compounds, carbon monoxide, particulate matter, and sulfur
646	646	compounds for each replacement or repowering;
647	647	(3) assign a standardized grant [rebate] amount for
648	648	each qualifying vehicle or engine repower under Section 394.007;
649	649	(4) allow for processing applications [rebates] on an
650	650	ongoing first-come, first-served basis;
651	651	(5) [provide for contracts between the commission and
652	652	participating dealers under Section 394.009;
653	653	[(6) allow grant recipients to assign their grant
654	654	funds to participating dealers to offset the purchase or lease
655	655	price;
656	656	[(7)] require grant applicants to identify natural gas
657	657	fueling stations that are available to fuel the qualifying vehicle
658	658	in the area of its use;
659	659	(6) [(8)] provide for payment not later than the 30th
660	660	day after the date the request for reimbursement for an approved
661	661	grant is received;
662	662	(7) [(9)] provide for application submission and
663	663	application status checks, which may include procedures for
664	664	application submission and status checks to be made over the
665	665	Internet; and
666	666	(8) [(10)] consolidate, simplify, and reduce the
667	667	administrative work for applicants and the commission associated
668	668	with grant application, contracting, reimbursement, and reporting
669	669	requirements.
670	670	SECTION 27. Section 394.012, Health and Safety Code, is
671	671	amended to read as follows:
672	672	Sec. 394.012. EXPIRATION. This chapter expires on the last
673	673	day of the state fiscal biennium containing the date marking five
674	674	years from the United States Environmental Protection Agency
675	675	publication of certification in the Federal Register that, with
676	676	respect to each national ambient air quality standard for ozone
677	677	under 40 C.F.R. Section 81.344, the United States Environmental
678	678	Protection Agency has, for each designated area in Texas under that
679	679	section:
680	680	(1) designated the area as attainment or
681	681	unclassifiable; or
682	682	(2) approved a redesignation substitute making a
683	683	finding of attainment for the area [August 31, 2017].
684	684	SECTION 28. Section 151.0515, Tax Code, is amended to add
685	685	Subsection (c-1) and to amend Subsection (d) to read as follows:
686	686	(c-1) (1) Collection of the surcharge imposed by this
687	687	section shall be suspended for a period beginning September 1,
688	688	2017, and ending August 31, 2025, with collections to resume
689	689	September 1, 2025, provided that this section has not expired prior
690	690	to that date.
691	691	(2) During the period of suspension in (1), should the
692	692	Texas commission on environmental quality estimate a balance in the
693	693	fund at an amount that the appropriations and estimated transfers
694	694	and other deductions out of the fund for the following state fiscal
695	695	biennium will cause the balance in the fund to fall below $500
696	696	million during that biennium, the commission shall notify the
697	697	comptroller that the fund is estimated to be below the desired base
698	698	level. If the comptroller concurs with that estimate, the
699	699	suspension period will terminate early, and the comptroller shall
700	700	cause collection of the surcharge to resume beginning September 1
701	701	of the following state fiscal biennium or as soon thereafter as is
702	702	feasible, provided that this section has not expired prior to that
703	703	date.
704	704	(d) This section expires on the last day of the state fiscal
705	705	biennium containing the date marking five years from the United
706	706	States Environmental Protection Agency publication of
707	707	certification in the Federal Register that, with respect to each
708	708	national ambient air quality standard for ozone under 40 C.F.R.
709	709	Section 81.344, the United States Environmental Protection Agency
710	710	has, for each designated area in Texas under that section:
711	711	(1) designated the area as attainment or
712	712	unclassifiable; or
713	713	(2) approved a redesignation substitute making a
714	714	finding of attainment for the area [August 31, 2019].
715	715	SECTION 29. Section 152.0215, Tax Code, is amended to add
716	716	Subsection (b-1) and to amend Subsection (c) to read as follows:
717	717	(b-1) (1) Collection of the surcharge imposed by this
718	718	section shall be suspended for a period beginning September 1,
719	719	2017, and ending August 31, 2025, with collections to resume
720	720	September 1, 2025, provided that this section has not expired prior
721	721	to that date.
722	722	(2) During the period of suspension in (1), should the
723	723	Texas commission on environmental quality estimate a balance in the
724	724	Texas emissions reduction plan fund at an amount that the
725	725	appropriations and estimated transfers and other deductions out of
726	726	the fund for the following state fiscal biennium will cause the
727	727	balance in the fund to fall below $500 million during that biennium,
728	728	the commission shall notify the comptroller that the fund is
729	729	estimated to be below the desired base level. If the comptroller
730	730	concurs with that estimate, the suspension period will terminate
731	731	early, and the comptroller shall cause collection of the surcharge
732	732	to resume beginning September 1 of the following state fiscal
733	733	biennium or as soon thereafter as is feasible, provided that this
734	734	section has not expired prior to that date.
735	735	(c) This section expires on the last day of the state fiscal
736	736	biennium containing the date marking five years from the United
737	737	States Environmental Protection Agency publication of
738	738	certification in the Federal Register that, with respect to each
739	739	national ambient air quality standard for ozone under 40 C.F.R.
740	740	Section 81.344, the United States Environmental Protection Agency
741	741	has, for each designated area in Texas under that section:
742	742	(1) designated the area as attainment or
743	743	unclassifiable; or
744	744	(2) approved a redesignation substitute making a
745	745	finding of attainment for the area [August 31, 2019].
746	746	SECTION 30. Section 501.138, Transportation Code, is
747	747	amended to amend Subsections (b-1) and (b-3) to read as follows:
748	748	(b-1) Fees collected under Subsection (b) to be sent to the
749	749	comptroller shall be deposited to the credit of the Texas Mobility
750	750	Fund[, except that $5 of each fee imposed under Subsection (a)(1)
751	751	and deposited on or after September 1, 2008, and before September 1,
752	752	2015, shall be deposited to the credit of the Texas emissions
753	753	reduction plan fund].
754	754	(b-3) This subsection and Subsection (b-2) expire August
755	755	31, 2017 [2019].
756	756	SECTION 31. Section 502.358, Transportation Code, is
757	757	amended to add Subsection (b-1) and to amend Subsection (c) to read
758	758	as follows:
759	759	(b-1) (1) Collection of the surcharge imposed by this
760	760	section shall be suspended for a period beginning September 1,
761	761	2017, and ending August 31, 2025, with collections to resume
762	762	September 1, 2025, provided that this section has not expired prior
763	763	to that date.
764	764	(2) During the period of suspension in (1), should the
765	765	Texas commission on environmental quality estimate a balance in the
766	766	Texas emissions reduction plan fund at an amount that the
767	767	appropriations and estimated transfers and other deductions out of
768	768	the fund for the following state fiscal biennium will cause the
769	769	balance in the fund to fall below $500 million during that biennium,
770	770	the commission shall notify the comptroller that the fund is
771	771	estimated to be below the desired base level. If the comptroller
772	772	concurs with that estimate, the suspension period will terminate
773	773	early, and the comptroller shall cause collection of the surcharge
774	774	to resume beginning September 1 of the following state fiscal
775	775	biennium or as soon thereafter as is feasible, provided that this
776	776	section has not expired prior to that date.
777	777	(c) This section expires on the last day of the state fiscal
778	778	biennium containing the date marking five years from the United
779	779	States Environmental Protection Agency publication of
780	780	certification in the Federal Register that, with respect to each
781	781	national ambient air quality standard for ozone under 40 C.F.R.
782	782	Section 81.344, the United States Environmental Protection Agency
783	783	has, for each designated area in Texas under that section:
784	784	(1) designated the area as attainment or
785	785	unclassifiable; or
786	786	(2) approved a redesignation substitute making a
787	787	finding of attainment for the area [August 31, 2019].
788	788	SECTION 32. The heading to Section 548.5055, Transportation
789	789	Code, is amended to read as follows:
790	790	Sec. 548.5055. TEXAS EMISSIONS [EMISSION] REDUCTION PLAN
791	791	FEE.
792	792	SECTION 33. Section 548.5055, Transportation Code, is
793	793	amended to add Subsection (b-1) and to amend Subsections (b) and (c)
794	794	to read as follows:
795	795	(b) The department shall remit fees collected under this
796	796	section to the comptroller at the time and in the manner prescribed
797	797	by the comptroller for deposit in the Texas emissions [emission]
798	798	reduction plan fund.
799	799	(b-1) Collection of the fee imposed by this section shall be
800	800	suspended for a period beginning September 1, 2017, and ending
801	801	August 31, 2025, with collections to resume September 1, 2025,
802	802	provided that this section has not expired prior to that date.
803	803	(2) During the period of suspension in (1), should the
804	804	Texas commission on environmental quality estimate a balance in the
805	805	Texas emissions reduction plan fund at an amount that the
806	806	appropriations and estimated transfers and other deductions out of
807	807	the fund for the following state fiscal biennium will cause the
808	808	balance in the fund to fall below $500 million during that biennium,
809	809	the commission shall notify the comptroller and the department that
810	810	the fund is estimated to be below the desired base level. If the
811	811	comptroller agrees with that estimate, the comptroller shall notify
812	812	the department and the suspension period will terminate early.
813	813	Upon notification, the department shall cause collection of the fee
814	814	to resume beginning September 1 of the following state fiscal
815	815	biennium or as soon thereafter as is feasible, provided that this
816	816	section has not expired prior to that date.
817	817	(c) This section expires on the last day of the state fiscal
818	818	biennium containing the date marking five years from the United
819	819	States Environmental Protection Agency publication of
820	820	certification in the Federal Register that, with respect to each
821	821	national ambient air quality standard for ozone under 40 C.F.R.
822	822	Section 81.344, the United States Environmental Protection Agency
823	823	has, for each designated area in Texas under that section:
824	824	(1) designated the area as attainment or
825	825	unclassifiable; or
826	826	(2) approved a redesignation substitute making a
827	827	finding of attainment for the area [August 31, 2019].
828	828	SECTION 34. Sections 394.009, 394.010, and 394.011, Health
829	829	and Safety Code, are repealed.
830	830	SECTION 35. The changes in law made by this Act apply only
831	831	to a Texas emissions reduction plan grant awarded on or after the
832	832	effective date of this Act. A grant awarded before the effective
833	833	date of this Act is governed by the law in effect on the date the
834	834	award was made, and the former law is continued in effect for that
835	835	purpose.
836	836	SECTION 36. The changes in law made by this Act apply only
837	837	to a fee or surcharge collected on or after the effective date of
838	838	this Act. A fee or surcharge collected before the effective date of
839	839	this Act is governed by the law in effect when the fee or surcharge
840	840	was collected, and the former law is continued in effect for that
841	841	purpose.
842	842	SECTION 37. This Act takes effect August 30, 2017.