Texas 2017 - 85th Regular

Texas House Bill HR2614 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.R. No. 2614
	1	+	85R34365 AAF-D
	2	+	By: Landgraf H.R. No. 2614
2	3
3	4
4	5		R E S O L U T I O N
5	6		BE IT RESOLVED by the House of Representatives of the State of
6	7		Texas, 85th Legislature, Regular Session, 2017, That House Rule 13,
7	8		Section 9(a), be suspended in part as provided by House Rule 13,
8	9		Section 9(f), to enable the conference committee appointed to
9	10		resolve the differences on Senate Bill 1731 (the repeal of laws
10	11		governing certain state entities, including the functions of those
11	12		entities) to consider and take action on the following matters:
12	13		(1) House Rule 13, Section 9(a)(4), is suspended to permit
13	14		the committee to add text on a matter not included in either the
14	15		house or senate version of the bill by adding the following text in
15	16		proposed SECTION 8 of the bill:
16	17		SECTION 8. TEXAS EMISSIONS REDUCTION PLAN ADVISORY BOARD.
17	18		. . .
18	19		(b) To the extent of a conflict between Subsection (a-2) of
19	20		this section and any change in law made by another provision of this
20	21		section, the change in law made by the other provision of this
21	22		section controls.
22	23		(b-1) Effective on the date that the Texas Emissions
23	24		Reduction Plan Advisory Board is abolished under Subsection (a) of
24	25		this section, Subchapter B, Chapter 382, Health and Safety Code, is
25	26		amended by adding Section 382.037 to read as follows:
26	27		Sec. 382.037. NOTICE IN TEXAS REGISTER REGARDING NATIONAL
27	28		AMBIENT AIR QUALITY STANDARDS FOR OZONE. (a) This section applies
28	29		only if:
29	30		(1) with respect to each active or revoked national
30	31		ambient air quality standard for ozone referenced in 40 C.F.R.
31	32		Section 81.344, the United States Environmental Protection Agency
32	33		has, for each designated area referenced in that section:
33	34		(A) designated the area as attainment or
34	35		unclassifiable/attainment; or
35	36		(B) approved a redesignation substitute making a
36	37		finding of attainment for the area; and
37	38		(2) for each designated area described by Subdivision
38	39		(1), with respect to an action of the United States Environmental
39	40		Protection Agency described by Subdivision (1)(A) or (B):
40	41		(A) the action has been fully and finally upheld
41	42		following judicial review or the limitations period to seek
42	43		judicial review of the action has expired; and
43	44		(B) the rules under which the action was approved
44	45		by the agency have been fully and finally upheld following judicial
45	46		review or the limitations period to seek judicial review of those
46	47		rules has expired.
47	48		(b) Not later than the 30th day after the date the
48	49		conditions described by Subsection (a) have been met, the
49	50		commission shall publish notice in the Texas Register that, with
50	51		respect to each active or revoked national ambient air quality
51	52		standard for ozone referenced in 40 C.F.R. Section 81.344, the
52	53		United States Environmental Protection Agency has, for each
53	54		designated area referenced in that section:
54	55		(1) designated the area as attainment or
55	56		unclassifiable/attainment; or
56	57		(2) approved a redesignation substitute making a
57	58		finding of attainment for the area.
58	59		(b-2) Effective on the date that the Texas Emissions
59	60		Reduction Plan Advisory Board is abolished under Subsection (a) of
60	61		this section, Section 386.001(3), Health and Safety Code, is
61	62		amended to read as follows:
62	63		(3) "Commission" means the Texas [Natural Resource
63	64		Conservation] Commission on Environmental Quality.
64	65		(c) Effective on the date that the Texas Emissions Reduction
65	66		Plan Advisory Board is abolished under Subsection (a) of this
66	67		section, Section 386.002, Health and Safety Code, is amended to
67	68		read as follows:
68	69		Sec. 386.002. EXPIRATION. This chapter expires on the last
69	70		day of the state fiscal biennium during which the commission
70	71		publishes in the Texas Register the notice required by Section
71	72		382.037 [August 31, 2019].
72	73		(c-1) Effective on the date that the Texas Emissions
73	74		Reduction Plan Advisory Board is abolished under Subsection (a) of
74	75		this section, Section 386.051(b), Health and Safety Code, is
75	76		amended to read as follows:
76	77		(b) Under the plan, the commission and the comptroller shall
77	78		provide grants or other funding for:
78	79		(1) the diesel emissions reduction incentive program
79	80		established under Subchapter C, including for infrastructure
80	81		projects established under that subchapter;
81	82		(2) the motor vehicle purchase or lease incentive
82	83		program established under Subchapter D;
83	84		(3) the air quality research support program
84	85		established under Chapter 387;
85	86		(4) the clean school bus program established under
86	87		Chapter 390;
87	88		(5) the new technology implementation grant program
88	89		established under Chapter 391;
89	90		(6) the regional air monitoring program established
90	91		under Section 386.252(a);
91	92		(7) a health effects study as provided by Section
92	93		386.252(a);
93	94		(8) air quality planning activities as provided by
94	95		Section 386.252(d) [386.252(a)];
95	96		(9) a contract with the Energy Systems Laboratory at
96	97		the Texas A&M Engineering Experiment Station for computation of
97	98		creditable statewide emissions reductions as provided by Section
98	99		386.252(a) [386.252(a)(14)];
99	100		(10) the clean fleet program established under Chapter
100	101		392;
101	102		(11) the alternative fueling facilities program
102	103		established under Chapter 393;
103	104		(12) the natural gas vehicle grant program [and clean
104	105		transportation triangle program] established under Chapter 394;
105	106		(13) other programs the commission may develop that
106	107		lead to reduced emissions of nitrogen oxides, particulate matter,
107	108		or volatile organic compounds in a nonattainment area or affected
108	109		county;
109	110		(14) other programs the commission may develop that
110	111		support congestion mitigation to reduce mobile source ozone
111	112		precursor emissions; [and]
112	113		(15) the seaport and rail yard areas emissions
113	114		reduction [drayage truck incentive] program established under
114	115		Subchapter D-1;
115	116		(16) conducting research and other activities
116	117		associated with making any necessary demonstrations to the United
117	118		States Environmental Protection Agency to account for the impact of
118	119		foreign emissions or an exceptional event;
119	120		(17) studies of or pilot programs for incentives for
120	121		port authorities located in nonattainment areas or affected
121	122		counties as provided by Section 386.252(a); and
122	123		(18) the governmental alternative fuel fleet grant
123	124		program established under Chapter 395.
124	125		(c-2) Effective on the date that the Texas Emissions
125	126		Reduction Plan Advisory Board is abolished under Subsection (a) of
126	127		this section, Sections 386.0515(a) and (c), Health and Safety Code,
127	128		are amended to read as follows:
128	129		(a) In this section:
129	130		(1) "Agricultural[, "agricultural] product
130	131		transportation" means the transportation of a raw agricultural
131	132		product from the place of production using a heavy-duty truck to:
132	133		(A) [(1)] a nonattainment area;
133	134		(B) [(2)] an affected county;
134	135		(C) [(3)] a destination inside the clean
135	136		transportation zone [triangle]; or
136	137		(D) [(4)] a county adjacent to a county described
137	138		by Paragraph (B) [Subdivision (2)] or that contains an area
138	139		described by Paragraph (A) or (C) [Subdivision (1) or (3)].
139	140		(2) "Clean transportation zone" has the meaning
140	141		assigned by Section 393.001.
141	142		(c) The determining factor for eligibility for
142	143		participation in a program established under Chapter 392 or
143	144		[Chapter] 394[, as added by Chapter 892 (Senate Bill No. 385), Acts
144	145		of the 82nd Legislature, Regular Session, 2011,] for a project
145	146		relating to agricultural product transportation is the overall
146	147		accumulative net reduction in emissions of oxides of nitrogen in a
147	148		nonattainment area, an affected county, or the clean transportation
148	149		zone [triangle].
149	150		. . .
150	151		(d-1) Effective on the date that the Texas Emissions
151	152		Reduction Plan Advisory Board is abolished under Subsection (a) of
152	153		this section, Section 386.103, Health and Safety Code, is amended
153	154		by adding Subsection (c) to read as follows:
154	155		(c) To reduce the administrative burden for the commission
155	156		and applicants, the commission may streamline the application
156	157		process by:
157	158		(1) reducing data entry and the copying and recopying
158	159		of applications; and
159	160		(2) developing, maintaining, and periodically
160	161		updating a system to accept applications electronically through the
161	162		commission's Internet website.
162	163		(d-2) Effective on the date that the Texas Emissions
163	164		Reduction Plan Advisory Board is abolished under Subsection (a) of
164	165		this section, Sections 386.104(f) and (j), Health and Safety Code,
165	166		are amended to read as follows:
166	167		. . .
167	168		(j) The executive director may [shall] waive any
168	169		eligibility requirements established under this section on a
169	170		finding of good cause, which may include a waiver for short lapses
170	171		in registration or operation attributable to economic conditions,
171	172		seasonal work, or other circumstances.
172	173		. . .
173	174		(e-1) Effective on the date that the Texas Emissions
174	175		Reduction Plan Advisory Board is abolished under Subsection (a) of
175	176		this section, Sections 386.116(a), (b), and (c), Health and Safety
176	177		Code, are amended to read as follows:
177	178		(a) In this section, "small business" means a business owned
178	179		by a person who:
179	180		(1) owns and operates not more than five [two]
180	181		vehicles, one of which is:
181	182		(A) an on-road diesel [with a pre-1994 engine
182	183		model]; or
183	184		(B) a non-road diesel [with an engine with
184	185		uncontrolled emissions]; and
185	186		(2) has owned the vehicle described by Subdivision
186	187		(1)(A) or (B) for more than two years [one year].
187	188		(b) The commission [by rule] shall develop a method of
188	189		providing fast and simple access to grants under this subchapter
189	190		for a small business. The method must:
190	191		(1) create a separate small business grant program; or
191	192		(2) require the commission to give special
192	193		consideration to small businesses when implementing another
193	194		program established under this subchapter.
194	195		(c) The commission shall publicize and promote the
195	196		availability of grants under this subchapter for small businesses
196	197		[section] to encourage the use of vehicles that produce fewer
197	198		emissions.
198	199		(e-2) Effective on the date that the Texas Emissions
199	200		Reduction Plan Advisory Board is abolished under Subsection (a) of
200	201		this section, Chapter 386, Health and Safety Code, is amended by
201	202		adding Subchapter D to read as follows:
202	203		SUBCHAPTER D. MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM
203	204		Sec. 386.151. DEFINITIONS. In this subchapter:
204	205		(1) "Light-duty motor vehicle" means a motor vehicle
205	206		with a gross vehicle weight rating of less than 10,000 pounds.
206	207		(2) "Motor vehicle" means a self-propelled device
207	208		designed for transporting persons or property on a public highway
208	209		that is required to be registered under Chapter 502, Transportation
209	210		Code.
210	211		Sec. 386.152. APPLICABILITY. The provisions of this
211	212		subchapter relating to a lessee do not apply to a person who rents
212	213		or leases a light-duty motor vehicle for a term of 30 days or less.
213	214		Sec. 386.153. COMMISSION DUTIES REGARDING LIGHT-DUTY MOTOR
214	215		VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM. (a) The commission
215	216		shall develop a purchase or lease incentive program for new
216	217		light-duty motor vehicles and shall adopt rules necessary to
217	218		implement the program.
218	219		(b) The program shall authorize statewide incentives for
219	220		the purchase or lease of new light-duty motor vehicles powered by
220	221		compressed natural gas, liquefied petroleum gas, or hydrogen fuel
221	222		cell or other electric drives for a purchaser or lessee who agrees
222	223		to register and operate the vehicle in this state for a minimum
223	224		period of time to be established by the commission.
224	225		(c) Only one incentive will be provided for each new
225	226		light-duty motor vehicle. The incentive shall be provided to the
226	227		lessee and not to the purchaser if the motor vehicle is purchased
227	228		for the purpose of leasing the vehicle to another person.
228	229		(d) The commission by rule may revise the standards for the
229	230		maximum unloaded vehicle weight rating and gross vehicle weight
230	231		rating of an eligible vehicle to ensure that all of the vehicle
231	232		weight configurations available under one general vehicle model may
232	233		be eligible for an incentive.
233	234		Sec. 386.154. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
234	235		INCENTIVE REQUIREMENTS. (a) A new light-duty motor vehicle
235	236		powered by compressed natural gas or liquefied petroleum gas is
236	237		eligible for a $5,000 incentive if the vehicle:
237	238		(1) has four wheels;
238	239		(2) was originally manufactured to comply with and has
239	240		been certified by an original equipment manufacturer or
240	241		intermediate or final state vehicle manufacturer as complying with,
241	242		or has been altered to comply with, federal motor vehicle safety
242	243		standards, state emissions regulations, and any additional federal
243	244		or state regulations applicable to vehicles powered by compressed
244	245		natural gas or liquefied petroleum gas;
245	246		(3) was manufactured for use primarily on public
246	247		streets, roads, and highways;
247	248		(4) has a dedicated or bi-fuel compressed natural gas
248	249		or liquefied petroleum gas fuel system:
249	250		(A) installed prior to first sale or within 500
250	251		miles of operation of the vehicle following first sale; and
251	252		(B) with a range of at least 125 miles as
252	253		estimated, published, and updated by the United States
253	254		Environmental Protection Agency;
254	255		(5) has, as applicable, a:
255	256		(A) compressed natural gas fuel system that
256	257		complies with the:
257	258		(i) 2013 NFPA 52 Vehicular Gaseous Fuel
258	259		Systems Code; and
259	260		(ii) American National Standard for Basic
260	261		Requirements for Compressed Natural Gas Vehicle (NGV) Fuel
261	262		Containers, commonly cited as "ANSI/CSA NGV2"; or
262	263		(B) liquefied petroleum gas fuel system that
263	264		complies with:
264	265		(i) the 2011 NFPA 58 Liquefied Petroleum
265	266		Gas Code; and
266	267		(ii) Section VII of the 2013 ASME Boiler and
267	268		Pressure Vessel Code; and
268	269		(6) was acquired on or after September 1, 2013, or a
269	270		later date established by the commission, by the person applying
270	271		for the incentive under this subsection and for use or lease by that
271	272		person and not for resale.
272	273		(b) If the commission determines that an updated version of
273	274		a code or standard described by Subsection (a)(5) is more stringent
274	275		than the version of the code or standard described by Subsection
275	276		(a)(5), the commission by rule may provide that a vehicle for which
276	277		a person applies for an incentive under Subsection (a) is eligible
277	278		for the incentive only if the vehicle complies with the updated
278	279		version of the code or standard.
279	280		(c) The incentive under Subsection (a) is limited to 1,000
280	281		vehicles for each state fiscal biennium.
281	282		(d) A new light-duty motor vehicle powered by an electric
282	283		drive is eligible for a $2,500 incentive if the vehicle:
283	284		(1) has four wheels;
284	285		(2) was manufactured for use primarily on public
285	286		streets, roads, and highways;
286	287		(3) has not been modified from the original
287	288		manufacturer's specifications;
288	289		(4) has a maximum speed capability of at least 55 miles
289	290		per hour;
290	291		(5) is propelled to a significant extent by an
291	292		electric motor that draws electricity from a hydrogen fuel cell or
292	293		from a battery that:
293	294		(A) has a capacity of not less than four kilowatt
294	295		hours; and
295	296		(B) is capable of being recharged from an
296	297		external source of electricity; and
297	298		(6) was acquired on or after September 1, 2013, or a
298	299		later date as established by the commission, by the person applying
299	300		for the incentive under this subsection and for use or lease by that
300	301		person and not for resale.
301	302		(e) The incentive under Subsection (d) is limited to 2,000
302	303		vehicles for each state fiscal biennium.
303	304		Sec. 386.155. MANUFACTURER'S REPORT. (a) At the beginning
304	305		of but not later than July 1 of each year preceding the vehicle
305	306		model year, a manufacturer of motor vehicles, an intermediate or
306	307		final state vehicle manufacturer, or a manufacturer of compressed
307	308		natural gas or liquefied petroleum gas systems shall provide to the
308	309		commission a list of the new vehicle or natural gas or liquefied
309	310		petroleum gas systems models that the manufacturer intends to sell
310	311		in this state during that model year that meet the incentive
311	312		requirements established under Section 386.154. The manufacturer
312	313		or installer may supplement the list provided to the commission
313	314		under this section as necessary to include additional new vehicle
314	315		models the manufacturer intends to sell in this state during the
315	316		model year.
316	317		(b) The commission may supplement the information provided
317	318		under Subsection (a) with additional information on available
318	319		vehicle models, including information provided by manufacturers or
319	320		installers of systems to convert new motor vehicles to operate on
320	321		natural gas or liquefied petroleum gas before sale as a new vehicle
321	322		or within 500 miles of operation of the vehicle following first
322	323		sale.
323	324		Sec. 386.156. LIST OF ELIGIBLE MOTOR VEHICLES. (a) On
324	325		August 1 of each year the commission shall publish a list of new
325	326		motor vehicle models eligible for inclusion in an incentive under
326	327		this subchapter. The commission shall publish supplements to that
327	328		list as necessary to include additional new vehicle models.
328	329		(b) The commission shall publish the list of eligible motor
329	330		vehicle models on the commission's Internet website.
330	331		Sec. 386.157. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
331	332		INCENTIVE. (a) A person who purchases or leases a new light-duty
332	333		motor vehicle described by Section 386.154 and listed under Section
333	334		386.156(a) is eligible to apply for an incentive under this
334	335		subchapter.
335	336		(b) A lease incentive for a new light-duty motor vehicle
336	337		shall be prorated based on a three-year lease term.
337	338		(c) To receive money under an incentive program provided by
338	339		this subchapter, the purchaser or lessee of a new light-duty motor
339	340		vehicle who is eligible to apply for an incentive under this
340	341		subchapter shall apply for the incentive in the manner provided by
341	342		law or by rule of the commission.
342	343		Sec. 386.158. COMMISSION TO ACCOUNT FOR MOTOR VEHICLE
343	344		PURCHASE OR LEASE INCENTIVES. (a) The commission by rule shall
344	345		develop a method to administer and account for the motor vehicle
345	346		purchase or lease incentives authorized by this subchapter and to
346	347		pay incentive money to the purchaser or lessee of a new motor
347	348		vehicle, on application of the purchaser or lessee as provided by
348	349		this subchapter.
349	350		(b) The commission shall develop and publish forms and
350	351		instructions for the purchaser or lessee of a new motor vehicle to
351	352		use in applying to the commission for an incentive payment under
352	353		this subchapter. The commission shall make the forms available to
353	354		new motor vehicle dealers and leasing agents. Dealers and leasing
354	355		agents shall make the forms available to their prospective
355	356		purchasers or lessees.
356	357		(c) The commission may require the submission of forms and
357	358		documentation as needed to verify eligibility for an incentive
358	359		under this subchapter.
359	360		Sec. 386.159. PURCHASE OR LEASE INCENTIVES INFORMATION.
360	361		(a) The commission shall establish a toll-free telephone number
361	362		available to motor vehicle dealers and leasing agents for the
362	363		dealers and agents to call to verify that incentives are available.
363	364		The commission may provide for issuing verification numbers over
364	365		the telephone line.
365	366		(b) Reliance by a dealer or leasing agent on information
366	367		provided by the commission is a complete defense to an action
367	368		involving or based on eligibility of a vehicle for an incentive or
368	369		availability of vehicles eligible for an incentive.
369	370		Sec. 386.160. RESERVATION OF INCENTIVES. The commission
370	371		may provide for dealers and leasing agents to reserve for a limited
371	372		time period incentives for vehicles that are not readily available
372	373		and must be ordered, if the dealer or leasing agent has a purchase
373	374		or lease order signed by an identified customer.
374	375		(f) Effective on the date that the Texas Emissions Reduction
375	376		Plan Advisory Board is abolished under Subsection (a) of this
376	377		section, the heading to Subchapter D-1, Chapter 386, Health and
377	378		Safety Code, is amended to read as follows:
378	379		SUBCHAPTER D-1. SEAPORT AND RAIL YARD AREAS EMISSIONS REDUCTION
379	380		[DRAYAGE TRUCK INCENTIVE] PROGRAM
380	381		(f-1) Effective on the date that the Texas Emissions
381	382		Reduction Plan Advisory Board is abolished under Subsection (a) of
382	383		this section, the heading to Section 386.181, Health and Safety
383	384		Code, is amended to read as follows:
384	385		Sec. 386.181. DEFINITIONS [DEFINITION]; RULES.
385	386		(f-2) Effective on the date that the Texas Emissions
386	387		Reduction Plan Advisory Board is abolished under Subsection (a) of
387	388		this section, Section 386.181(a), Health and Safety Code, is
388	389		amended to read as follows:
389	390		(a) In this subchapter:
390	391		(1) "Cargo handling equipment" means any heavy-duty
391	392		non-road, self-propelled vehicle or land-based equipment used at a
392	393		seaport or rail yard to lift or move cargo, such as containerized,
393	394		bulk, or break-bulk goods.
394	395		(2) "Drayage [, "drayage] truck" means a heavy-duty
395	396		on-road or non-road vehicle that is used for drayage activities and
396	397		that operates in or transgresses through [truck that transports a
397	398		load to or from] a seaport or rail yard for the purpose of loading,
398	399		unloading, or transporting cargo, including transporting empty
399	400		containers and chassis.
400	401		(3) "Repower" means to replace an old engine powering
401	402		a vehicle with a new engine, a used engine, a remanufactured engine,
402	403		or electric motors, drives, or fuel cells.
403	404		(g) Effective on the date that the Texas Emissions Reduction
404	405		Plan Advisory Board is abolished under Subsection (a) of this
405	406		section, Section 386.182, Health and Safety Code, is amended to
406	407		read as follows:
407	408		Sec. 386.182. COMMISSION DUTIES. (a) The commission
408	409		shall:
409	410		(1) develop a purchase incentive program to encourage
410	411		owners to:
411	412		(A) replace older drayage trucks and cargo
412	413		handling equipment [with pre-2007 model year engines] with newer
413	414		drayage trucks and cargo handling equipment; or
414	415		(B) repower drayage trucks and cargo handling
415	416		equipment; and
416	417		(2) [shall] adopt guidelines necessary to implement
417	418		the program described by Subdivision (1).
418	419		(b) The commission by rule and guideline shall establish
419	420		criteria for the engines and the models of drayage trucks and cargo
420	421		handling equipment that are eligible for inclusion in an incentive
421	422		program under this subchapter. [The guidelines must provide that a
422	423		drayage truck owner is not eligible for an incentive payment under
423	424		this subchapter unless the truck being replaced contains a pre-2007
424	425		model year engine and the replacement truck's engine is from model
425	426		year 2010 or later as determined by the commission and that the
426	427		truck operates at a seaport or rail yard.]
427	428		(g-1) Effective on the date that the Texas Emissions
428	429		Reduction Plan Advisory Board is abolished under Subsection (a) of
429	430		this section, the heading to Section 386.183, Health and Safety
430	431		Code, is amended to read as follows:
431	432		Sec. 386.183. DRAYAGE TRUCK AND CARGO HANDLING EQUIPMENT
432	433		PURCHASE INCENTIVE.
433	434		(g-2) Effective on the date that the Texas Emissions
434	435		Reduction Plan Advisory Board is abolished under Subsection (a) of
435	436		this section, Section 386.183, Health and Safety Code, is amended
436	437		by amending Subsections (a), (b), (c), (d), and (e) and adding
437	438		Subsection (a-1) to read as follows:
438	439		(a) To be eligible for an incentive under this subchapter, a
439	440		person must:
440	441		(1) purchase a replacement drayage truck, piece of
441	442		cargo handling equipment, or engine that under Subsection
442	443		(a-1)(1)(A) or (2)(A), as applicable, and the guidelines adopted by
443	444		the commission under Section 386.182 is eligible for inclusion in
444	445		the program for an incentive under this subchapter; and
445	446		(2) agree to:
446	447		(A) register the drayage truck in this state, if
447	448		the replacement or repowered vehicle is an on-road drayage truck;
448	449		(B) operate the replacement or repowered drayage
449	450		truck or cargo handling equipment in and within a maximum distance
450	451		established by the commission of a seaport or rail yard in a
451	452		nonattainment area of this state for not less than 50 percent of the
452	453		truck's or equipment's [vehicle's] annual mileage or hours of
453	454		operation, as determined by the commission; and
454	455		(C) permanently remove the [a pre-2007] drayage
455	456		truck, cargo handling equipment, or engine replaced under the
456	457		program [containing a pre-2007 engine owned by the person] from
457	458		operation in a nonattainment area of this state by destroying the
458	459		engine in accordance with guidelines established by the commission
459	460		and, if the incentive is for a replacement drayage truck or cargo
460	461		handling equipment, scrapping the truck or equipment after the
461	462		purchase of the replacement [new] truck or equipment in accordance
462	463		with guidelines established by the commission.
463	464		(a-1) To be eligible for purchase under this program:
464	465		(1) a drayage truck or cargo handling equipment must:
465	466		(A) be powered by an electric motor or contain an
466	467		engine certified to the current federal emissions standards
467	468		applicable to that type of engine, as determined by the commission;
468	469		and
469	470		(B) emit oxides of nitrogen at a rate that is at
470	471		least 25 percent less than the rate at which the truck or equipment
471	472		being replaced under the program emits such pollutants; and
472	473		(2) an engine repowering a drayage truck or cargo
473	474		handling equipment must:
474	475		(A) be an electric motor or an engine certified
475	476		to the current federal emissions standards applicable to that type
476	477		of engine, as determined by the commission; and
477	478		(B) emit oxides of nitrogen at a rate that is at
478	479		least 25 percent less than the rate at which the former engine in
479	480		the truck or equipment being repowered under the program emits such
480	481		pollutants.
481	482		(b) To receive money under an incentive program provided by
482	483		this subchapter, the purchaser of a drayage truck, piece of cargo
483	484		handling equipment, or engine eligible for inclusion in the program
484	485		must apply for the incentive in the manner provided by law, rule, or
485	486		guideline of the commission.
486	487		(c) Not more than one incentive may be provided for each
487	488		drayage truck or piece of cargo handling equipment purchased or
488	489		repowered.
489	490		(d) An incentive provided under this subchapter may be used
490	491		to fund not more than 80 percent of, as applicable, the purchase
491	492		price of:
492	493		(1) the drayage truck or cargo handling equipment; or
493	494		(2) the engine and any other eligible costs associated
494	495		with repowering the drayage truck or cargo handling equipment, as
495	496		determined by the commission.
496	497		(e) The commission shall establish procedures to verify
497	498		that a person who receives an incentive:
498	499		(1) has operated in a seaport or rail yard and owned or
499	500		leased the drayage truck or cargo handling equipment to be replaced
500	501		or repowered for at least two years prior to receiving the grant;
501	502		and
502	503		(2) as applicable:
503	504		(A) after purchase of the replacement drayage
504	505		truck or cargo handling equipment, permanently destroys the engine
505	506		and scraps the [drayage] truck or equipment replaced under the
506	507		program [that contained the pre-2007 engine owned or leased by the
507	508		person,] in accordance with guidelines established by the
508	509		commission; or
509	510		(B) after repowering the drayage truck or cargo
510	511		handling equipment, permanently destroys the engine that was
511	512		contained in the truck or equipment in accordance with guidelines
512	513		established by the commission [, after the purchase of the new
513	514		truck].
514	515		(h) Effective on the date that the Texas Emissions Reduction
515	516		Plan Advisory Board is abolished under Subsection (a) of this
516	517		section, Section 386.252, Health and Safety Code, is amended to
517	518		read as follows:
518	519		Sec. 386.252. USE OF FUND. (a) Money in the fund may be
519	520		used only to implement and administer programs established under
520	521		the plan. Subject to the reallocation of funds by the commission
521	522		under Subsection (h), money [Money] appropriated to the commission
522	523		to be used for the programs under Section 386.051(b) shall
523	524		initially be allocated as follows:
524	525		(1) [not more than] four percent may be used for the
525	526		clean school bus program under Chapter 390;
526	527		(2) [not more than] three percent may be used for the
527	528		new technology implementation grant program under Chapter 391, from
528	529		which at least $1 million will be set aside for electricity storage
529	530		projects related to renewable energy;
530	531		(3) five percent may [shall] be used for the clean
531	532		fleet program under Chapter 392;
532	533		(4) not more than $3 million may be used by the
533	534		commission to fund a regional air monitoring program in commission
534	535		Regions 3 and 4 to be implemented under the commission's oversight,
535	536		including direction regarding the type, number, location, and
536	537		operation of, and data validation practices for, monitors funded by
537	538		the program through a regional nonprofit entity located in North
538	539		Texas having representation from counties, municipalities, higher
539	540		education institutions, and private sector interests across the
540	541		area;
541	542		(5) 10 [not less than 16] percent may [shall] be used
542	543		for the Texas natural gas vehicle grant program under Chapter 394;
543	544		(6) not more than $6 million [five percent] may be used
544	545		[to provide grants for natural gas fueling stations under the clean
545	546		transportation triangle program under Section 394.010;
546	547		[(7) not more than five percent may be used] for the
547	548		Texas alternative fueling facilities program under Chapter 393, of
548	549		which a specified amount may be used for fueling stations to provide
549	550		natural gas fuel, except that money may not be allocated for the
550	551		Texas alternative fueling facilities program for the state fiscal
551	552		year ending August 31, 2019;
552	553		(7) [(8)] not more than $750,000 [a specified amount]
553	554		may be used each year to support research related to air quality as
554	555		provided by Chapter 387;
555	556		(8) [(9)] not more than $200,000 may be used for a
556	557		health effects study[;
557	558		[(10) $500,000 is to be deposited in the state treasury
558	559		to the credit of the clean air account created under Section
559	560		382.0622 to supplement funding for air quality planning activities
560	561		in affected counties];
561	562		(9) [(11)] at least $6 [$4] million but not more than
562	563		$8 [and up to four percent to a maximum of $7] million[, whichever
563	564		is greater,] is allocated to the commission for administrative
564	565		costs, including all direct and indirect costs for administering
565	566		the plan, costs for conducting outreach and education activities,
566	567		and costs attributable to the review or approval of applications
567	568		for marketable emissions reduction credits;
568	569		(10) six [(12) at least two] percent may [and up to
569	570		five percent of the fund is to] be used by the commission for the
570	571		seaport and rail yard areas emissions reduction [drayage truck
571	572		incentive] program established under Subchapter D-1;
572	573		(11) [(13) not more than] five percent may be used for
573	574		the light-duty motor vehicle purchase or lease incentive program
574	575		established under Subchapter D;
575	576		(12) [(14)] not more than $216,000 is allocated to the
576	577		commission to contract with the Energy Systems Laboratory at the
577	578		Texas A&M Engineering Experiment Station annually for the
578	579		development and annual computation of creditable statewide
579	580		emissions reductions obtained through wind and other renewable
580	581		energy resources for the state implementation plan;
581	582		(13) not more than $500,000 may be used for studies of
582	583		or pilot programs for incentives for port authorities located in
583	584		nonattainment areas or affected counties to encourage cargo
584	585		movement that reduces emissions of nitrogen oxides and particulate
585	586		matter [(15) 1.5 percent of the money in the fund is allocated for
586	587		administrative costs incurred by the laboratory]; and
587	588		(14) [(16)] the balance is to be used by the
588	589		commission for the diesel emissions reduction incentive program
589	590		under Subchapter C as determined by the commission.
590	591		(b) [The commission may allocate unexpended money
591	592		designated for the clean fleet program under Chapter 392 to other
592	593		programs described under Subsection (a) after the commission
593	594		allocates money to recipients under the clean fleet program.
594	595		[(c) The commission may allocate unexpended money
595	596		designated for the Texas alternative fueling facilities program
596	597		under Chapter 393 to other programs described under Subsection (a)
597	598		after the commission allocates money to recipients under the
598	599		alternative fueling facilities program.
599	600		[(d) The commission may reallocate money designated for the
600	601		Texas natural gas vehicle grant program under Chapter 394 to other
601	602		programs described under Subsection (a) if:
602	603		[(1) the commission, in consultation with the governor
603	604		and the advisory board, determines that the use of the money in the
604	605		fund for that program will cause the state to be in noncompliance
605	606		with the state implementation plan to the extent that federal
606	607		action is likely; and
607	608		[(2) the commission finds that the reallocation of
608	609		some or all of the funding for the program would resolve the
609	610		noncompliance.
610	611		[(e) Under Subsection (d), the commission may not
611	612		reallocate more than the minimum amount of money necessary to
612	613		resolve the noncompliance.
613	614		[(e-1) Money allocated under Subsection (a) to a particular
614	615		program may be used for another program under the plan as determined
615	616		by the commission.
616	617		[(f)] Money in the fund may be used by the commission for
617	618		programs under Sections 386.051(b)(13), (b)(14), and (b-1) as may
618	619		be appropriated for those programs.
619	620		(c) [(g)] If the legislature does not specify amounts or
620	621		percentages from the total appropriation to the commission to be
621	622		allocated under Subsection (a) or (b) [(f)], the commission shall
622	623		determine the amounts of the total appropriation to be allocated
623	624		under each of those subsections, such that the total appropriation
624	625		is expended while maximizing emissions reductions.
625	626		(d) To supplement funding for air quality planning
626	627		activities in affected counties, $500,000 from the fund is to be
627	628		deposited annually in the state treasury to the credit of the clean
628	629		air account created under Section 382.0622.
629	630		(e) Money in the fund may be allocated for administrative
630	631		costs incurred by the Energy Systems Laboratory at the Texas A&M
631	632		Engineering Experiment Station as may be appropriated by the
632	633		legislature.
633	634		(f) To the extent that money is appropriated from the fund
634	635		for that purpose, not more than $2.5 million may be used by the
635	636		commission to conduct research and other activities associated with
636	637		making any necessary demonstrations to the United States
637	638		Environmental Protection Agency to account for the impact of
638	639		foreign emissions or an exceptional event.
639	640		(g) To the extent that money is appropriated from the fund
640	641		for that purpose, the commission may use that money to award grants
641	642		under the governmental alternative fuel fleet grant program
642	643		established under Chapter 395, except that the commission may not
643	644		use for that purpose more than three percent of the balance of the
644	645		fund as of September 1 of each state fiscal year of the biennium for
645	646		the governmental alternative fuel fleet grant program in that
646	647		fiscal year.
647	648		(h) Subject to the limitations outlined in this section and
648	649		any additional limitations placed on the use of the appropriated
649	650		funds, money allocated under this section to a particular program
650	651		may be used for another program under the plan as determined by the
651	652		commission, based on demand for grants for eligible projects under
652	653		particular programs after the commission solicits projects to which
653	654		to award grants according to the initial allocation provisions of
654	655		this section.
655	656		(h-1) Effective on the date that the Texas Emissions
656	657		Reduction Plan Advisory Board is abolished under Subsection (a) of
657	658		this section, Section 390.001, Health and Safety Code, is amended
658	659		by amending Subdivision (1) and adding Subdivision (1-a) to read as
659	660		follows:
660	661		(1) "Commission" means the Texas Commission on
661	662		Environmental Quality.
662	663		(1-a) "Diesel exhaust" means one or more of the air
663	664		pollutants emitted from an engine by the combustion of diesel fuel,
664	665		including particulate matter, nitrogen oxides, volatile organic
665	666		compounds, air toxics, and carbon monoxide.
666	667		(h-2) Effective on the date that the Texas Emissions
667	668		Reduction Plan Advisory Board is abolished under Subsection (a) of
668	669		this section, Section 390.002(b), Health and Safety Code, is
669	670		amended to read as follows:
670	671		(b) Projects that may be considered for a grant under the
671	672		program include:
672	673		(1) diesel oxidation catalysts for school buses built
673	674		before 1994;
674	675		(2) diesel particulate filters for school buses built
675	676		from 1994 to 1998;
676	677		(3) the purchase and use of emission-reducing add-on
677	678		equipment for school buses, including devices that reduce crankcase
678	679		emissions;
679	680		(4) the use of qualifying fuel; [and]
680	681		(5) other technologies that the commission finds will
681	682		bring about significant emissions reductions; and
682	683		(6) replacement of a pre-2007 model year school bus.
683	684		(i) Effective on the date that the Texas Emissions Reduction
684	685		Plan Advisory Board is abolished under Subsection (a) of this
685	686		section, Section 390.004, Health and Safety Code, is amended by
686	687		adding Subsections (c) and (d) to read as follows:
687	688		(c) A school bus proposed for replacement must:
688	689		(1) be of model year 2006 or earlier;
689	690		(2) have been owned and operated by the applicant for
690	691		at least the two years before submission of the grant application;
691	692		(3) be in good operational condition; and
692	693		(4) be currently used on a regular, daily route to and
693	694		from a school.
694	695		(d) A school bus proposed for purchase to replace a pre-2007
695	696		model year school bus must be of the current model year or the year
696	697		before the current model year at the time of submission of the grant
697	698		application.
698	699		(i-1) Effective on the date that the Texas Emissions
699	700		Reduction Plan Advisory Board is abolished under Subsection (a) of
700	701		this section, Section 390.005, Health and Safety Code, is amended
701	702		to read as follows:
702	703		Sec. 390.005. RESTRICTION ON USE OF GRANT. (a) A
703	704		recipient of a grant under this chapter shall use the grant to pay
704	705		the incremental costs of the project for which the grant is made,
705	706		which may include the reasonable and necessary expenses incurred
706	707		for the labor needed to install emissions-reducing equipment. The
707	708		recipient may not use the grant to pay the recipient's
708	709		administrative expenses.
709	710		(b) A school bus acquired to replace an existing school bus
710	711		must be purchased and the grant recipient must agree to own and
711	712		operate the school bus on a regular, daily route to and from a
712	713		school for at least five years after a start date established by the
713	714		commission, based on the date the commission accepts documentation
714	715		of the permanent destruction or permanent removal of the school bus
715	716		being replaced.
716	717		(c) A school bus replaced under this program must be
717	718		rendered permanently inoperable by crushing the bus, by making a
718	719		hole in the engine block and permanently destroying the frame of the
719	720		bus, or by another method approved by the commission, or be
720	721		permanently removed from operation in this state. The commission
721	722		shall establish criteria for ensuring the permanent destruction or
722	723		permanent removal of the engine or bus. The commission shall
723	724		enforce the destruction and removal requirements.
724	725		(d) In this section, "permanent removal" means the
725	726		permanent export of a school bus or the engine of a school bus to a
726	727		destination outside of the United States, Canada, or the United
727	728		Mexican States.
728	729		(i-2) Effective on the date that the Texas Emissions
729	730		Reduction Plan Advisory Board is abolished under Subsection (a) of
730	731		this section, Section 390.006, Health and Safety Code, is amended
731	732		to read as follows:
732	733		Sec. 390.006. EXPIRATION. This chapter expires on the last
733	734		day of the state fiscal biennium during which the commission
734	735		publishes in the Texas Register the notice required by Section
735	736		382.037 [August 31, 2019].
736	737		(j) Effective on the date that the Texas Emissions Reduction
737	738		Plan Advisory Board is abolished under Subsection (a) of this
738	739		section, Section 391.002(b), Health and Safety Code, is amended to
739	740		read as follows:
740	741		(b) Projects that may be considered for a grant under the
741	742		program include:
742	743		(1) advanced clean energy projects, as defined by
743	744		Section 382.003;
744	745		(2) new technology projects that reduce emissions of
745	746		regulated pollutants from stationary [point] sources;
746	747		(3) new technology projects that reduce emissions from
747	748		upstream and midstream oil and gas production, completions,
748	749		gathering, storage, processing, and transmission activities
749	750		through:
750	751		(A) the replacement, repower, or retrofit of
751	752		stationary compressor engines;
752	753		(B) the installation of systems to reduce or
753	754		eliminate the loss of gas, flaring of gas, or burning of gas using
754	755		other combustion control devices; or
755	756		(C) the installation of systems that reduce
756	757		flaring emissions and other site emissions by capturing waste heat
757	758		to generate electricity solely for on-site service; and
758	759		(4) [(3)] electricity storage projects related to
759	760		renewable energy, including projects to store electricity produced
760	761		from wind and solar generation that provide efficient means of
761	762		making the stored energy available during periods of peak energy
762	763		use.
763	764		(j-1) Effective on the date that the Texas Emissions
764	765		Reduction Plan Advisory Board is abolished under Subsection (a) of
765	766		this section, Section 391.102(f), Health and Safety Code, is
766	767		amended to read as follows:
767	768		(f) In reviewing a grant application under this chapter
768	769		[coordinating interagency application review procedures], the
769	770		commission may [shall]:
770	771		(1) solicit review and comments from:
771	772		(A) the comptroller to assess:
772	773		(i) the financial stability of the
773	774		applicant;
774	775		(ii) the economic benefits and job creation
775	776		potential associated with the project; and
776	777		(iii) any other information related to the
777	778		duties of that office;
778	779		(B) the Public Utility Commission of Texas to
779	780		assess:
780	781		(i) the reliability of the proposed
781	782		technology;
782	783		(ii) the feasibility and
783	784		cost-effectiveness of electric transmission associated with the
784	785		project; and
785	786		(iii) any other information related to the
786	787		duties of that agency; and
787	788		(C) the Railroad Commission of Texas to assess:
788	789		(i) the availability and cost of the fuel
789	790		involved with the project; and
790	791		(ii) any other information related to the
791	792		duties of that agency; and
792	793		(2) consider the comments received under Subdivision
793	794		(1) in the commission's grant award decision process[; and
794	795		[(3) as part of the report required by Section 391.104,
795	796		justify awards made to projects that have been negatively reviewed
796	797		by agencies under Subdivision (1)].
797	798		(j-2) Effective on the date that the Texas Emissions
798	799		Reduction Plan Advisory Board is abolished under Subsection (a) of
799	800		this section, Section 391.104, Health and Safety Code, is amended
800	801		to read as follows:
801	802		Sec. 391.104. REPORTING REQUIREMENTS. The commission
802	803		[annually] shall include in the biennial plan report required by
803	804		Section 386.057(b) information [prepare a report] that summarizes
804	805		the applications received and grants awarded in the preceding
805	806		biennium [year]. Preparation of the information for the report may
806	807		[must] include the participation of any [the] state agency
807	808		[agencies] involved in the review of applications under Section
808	809		391.102, if the commission determines participation of the agency
809	810		is needed.
810	811		(k) Effective on the date that the Texas Emissions Reduction
811	812		Plan Advisory Board is abolished under Subsection (a) of this
812	813		section, Section 391.205(a), Health and Safety Code, is amended to
813	814		read as follows:
814	815		(a) Except as provided by Subsection (c), in awarding grants
815	816		under this chapter the commission shall give preference to projects
816	817		that:
817	818		(1) involve the transport, use, recovery for use, or
818	819		prevention of the loss of natural resources originating or produced
819	820		in this state;
820	821		(2) contain an energy efficiency component; [or]
821	822		(3) include the use of solar, wind, or other renewable
822	823		energy sources; or
823	824		(4) recover waste heat from the combustion of natural
824	825		resources and use the heat to generate electricity.
825	826		(k-1) Effective on the date that the Texas Emissions
826	827		Reduction Plan Advisory Board is abolished under Subsection (a) of
827	828		this section, Section 391.304, Health and Safety Code, is amended
828	829		to read as follows:
829	830		Sec. 391.304. EXPIRATION. This chapter expires on the last
830	831		day of the state fiscal biennium during which the commission
831	832		publishes in the Texas Register the notice required by Section
832	833		382.037 [August 31, 2019].
833	834		(k-2) Effective on the date that the Texas Emissions
834	835		Reduction Plan Advisory Board is abolished under Subsection (a) of
835	836		this section, Section 392.001(1), Health and Safety Code, is
836	837		amended to read as follows:
837	838		(1) "Alternative fuel" means a fuel other than
838	839		gasoline or diesel fuel, including electricity, compressed natural
839	840		gas, liquefied [liquified] natural gas, hydrogen, propane, or a
840	841		mixture of fuels containing at least 85 percent methanol by volume.
841	842		(l) Effective on the date that the Texas Emissions Reduction
842	843		Plan Advisory Board is abolished under Subsection (a) of this
843	844		section, Sections 392.002(b) and (c), Health and Safety Code, are
844	845		amended to read as follows:
845	846		(b) An entity that places 10 [20] or more qualifying
846	847		vehicles in service for use entirely in this state during a calendar
847	848		year is eligible to participate in the program.
848	849		(c) Notwithstanding Subsection (b), an entity that submits
849	850		a grant application for 10 [20] or more qualifying vehicles is
850	851		eligible to participate in the program even if the commission
851	852		denies approval for one or more of the vehicles during the
852	853		application process.
853	854		(l-1) Effective on the date that the Texas Emissions
854	855		Reduction Plan Advisory Board is abolished under Subsection (a) of
855	856		this section, Section 392.003(a), Health and Safety Code, is
856	857		amended to read as follows:
857	858		(a) A vehicle is a qualifying vehicle that may be considered
858	859		for a grant under the program if during the eligibility period
859	860		established by the commission [calendar year] the entity purchases
860	861		a new on-road vehicle that:
861	862		(1) is certified to the appropriate current federal
862	863		emissions standards as determined by the commission;
863	864		(2) replaces a diesel-powered on-road vehicle of the
864	865		same weight classification and use; and
865	866		(3) is a hybrid vehicle or fueled by an alternative
866	867		fuel.
867	868		(l-2) Effective on the date that the Texas Emissions
868	869		Reduction Plan Advisory Board is abolished under Subsection (a) of
869	870		this section, Section 392.004(d), Health and Safety Code, is
870	871		amended to read as follows:
871	872		(d) The commission shall minimize, to the maximum extent
872	873		possible, the amount of paperwork required for an application. [An
873	874		applicant may be required to submit a photograph or other
874	875		documentation of a vehicle identification number, registration
875	876		information, inspection information, tire condition, or engine
876	877		block identification only if the photograph or documentation is
877	878		requested by the commission after the commission has decided to
878	879		award a grant to the applicant under this chapter.]
879	880		(m) Effective on the date that the Texas Emissions Reduction
880	881		Plan Advisory Board is abolished under Subsection (a) of this
881	882		section, Section 392.005, Health and Safety Code, is amended by
882	883		amending Subsections (c) and (i) and adding Subsection (c-1) to
883	884		read as follows:
884	885		(c) As a condition of receiving a grant, the qualifying
885	886		vehicle must be continuously owned, registered, and operated in the
886	887		state by the grant recipient until the earlier of the fifth
887	888		anniversary of the activity start date established by the
888	889		commission [the date of reimbursement of the grant-funded expenses]
889	890		or [until] the date the vehicle has been in operation for 400,000
890	891		miles after the activity start date established by the commission
891	892		[of reimbursement]. Not less than 75 percent of the annual use of
892	893		the qualifying vehicle, either mileage or fuel use as determined by
893	894		the commission, must occur in the state.
894	895		(c-1) For purposes of Subsection (c), the commission shall
895	896		establish the activity start date based on the date the commission
896	897		accepts verification of the disposition of the vehicle being
897	898		replaced.
898	899		(i) The executive director may [shall] waive the
899	900		requirements of Subsection (b)(2)(A) on a finding of good cause,
900	901		which may include a waiver for short lapses in registration or
901	902		operation attributable to economic conditions, seasonal work, or
902	903		other circumstances.
903	904		(m-1) Effective on the date that the Texas Emissions
904	905		Reduction Plan Advisory Board is abolished under Subsection (a) of
905	906		this section, Section 392.008, Health and Safety Code, is amended
906	907		to read as follows:
907	908		Sec. 392.008. EXPIRATION. This chapter expires on the last
908	909		day of the state fiscal biennium during which the commission
909	910		publishes in the Texas Register the notice required by Section
910	911		382.037 [August 31, 2017].
911	912		(m-2) Effective on the date that the Texas Emissions
912	913		Reduction Plan Advisory Board is abolished under Subsection (a) of
913	914		this section, Section 393.001, Health and Safety Code, is amended
914	915		by amending Subdivision (1) and adding Subdivision (1-a) to read as
915	916		follows:
916	917		(1) "Alternative fuel" means a fuel other than
917	918		gasoline or diesel fuel, other than biodiesel fuel, including
918	919		electricity, compressed natural gas, liquefied [liquified] natural
919	920		gas, hydrogen, propane, or a mixture of fuels containing at least 85
920	921		percent methanol by volume.
921	922		(1-a) "Clean transportation zone" means:
922	923		(A) counties containing or intersected by a
923	924		portion of an interstate highway connecting the cities of Houston,
924	925		San Antonio, Dallas, and Fort Worth;
925	926		(B) counties located within the area bounded by
926	927		the interstate highways described by Paragraph (A);
927	928		(C) counties containing or intersected by a
928	929		portion of:
929	930		(i) an interstate highway connecting San
930	931		Antonio to Corpus Christi or Laredo;
931	932		(ii) the most direct route using highways
932	933		in the state highway system connecting Corpus Christi and Laredo;
933	934		or
934	935		(iii) a highway corridor connecting Corpus
935	936		Christi and Houston;
936	937		(D) counties located within the area bounded by
937	938		the highways described by Paragraph (C);
938	939		(E) counties in this state all or part of which
939	940		are included in a nonattainment area designated under Section
940	941		107(d) of the federal Clean Air Act (42 U.S.C. Section 7407); and
941	942		(F) counties designated as affected counties
942	943		under Section 386.001.
943	944		(n) Effective on the date that the Texas Emissions Reduction
944	945		Plan Advisory Board is abolished under Subsection (a) of this
945	946		section, Section 393.002, Health and Safety Code, is amended to
946	947		read as follows:
947	948		Sec. 393.002. PROGRAM. (a) The commission shall establish
948	949		and administer the Texas alternative fueling facilities program to
949	950		provide fueling facilities for alternative fuel in the clean
950	951		transportation zone [nonattainment areas]. Under the program, the
951	952		commission shall provide a grant for each eligible facility to
952	953		offset the cost of those facilities.
953	954		(b) An entity that constructs or[,] reconstructs[, or
954	955		acquires] an alternative fueling facility is eligible to
955	956		participate in the program.
956	957		(c) To ensure that alternative fuel vehicles have access to
957	958		fuel and to build the foundation for a self-sustaining market for
958	959		alternative fuels in Texas, the commission shall provide for
959	960		strategically placed fueling facilities in the clean
960	961		transportation zone to enable an alternative fuel vehicle to travel
961	962		in those areas relying solely on the alternative fuel.
962	963		(d) The commission shall maintain a listing to be made
963	964		available to the public online of all vehicle fueling facilities
964	965		that have received grant funding, including location and hours of
965	966		operation.
966	967		(n-1) Effective on the date that the Texas Emissions
967	968		Reduction Plan Advisory Board is abolished under Subsection (a) of
968	969		this section, Section 393.003, Health and Safety Code, is amended
969	970		by amending Subsections (a) and (b) and adding Subsections (d) and
970	971		(e) to read as follows:
971	972		(a) An entity operating in this state that constructs or[,]
972	973		reconstructs[, or acquires] a facility to [store, compress, or]
973	974		dispense alternative fuels may apply for and receive a grant under
974	975		the program.
975	976		(b) The commission may [adopt guidelines to] allow a
976	977		regional planning commission, council of governments, or similar
977	978		regional planning agency created under Chapter 391, Local
978	979		Government Code, or a private nonprofit organization to apply for
979	980		and receive a grant to improve the ability of the program to achieve
980	981		its goals.
981	982		(d) An application for a grant under the program must
982	983		include a certification that the applicant complies with laws,
983	984		rules, guidelines, and requirements applicable to taxation of fuel
984	985		provided by the applicant at each fueling facility owned or
985	986		operated by the applicant. The commission may terminate a grant
986	987		awarded under this section without further obligation to the grant
987	988		recipient if the commission determines that the recipient did not
988	989		comply with a law, rule, guideline, or requirement described by
989	990		this subsection. This subsection does not create a cause of action
990	991		to contest an application or award of a grant.
991	992		(e) The commission shall disburse grants under the program
992	993		through a competitive application selection process to offset a
993	994		portion of the eligible costs.
994	995		(n-2) Effective on the date that the Texas Emissions
995	996		Reduction Plan Advisory Board is abolished under Subsection (a) of
996	997		this section, Section 393.004, Health and Safety Code, is amended
997	998		to read as follows:
998	999		Sec. 393.004. ELIGIBILITY OF FACILITIES FOR GRANTS.
999	1000		(a) In addition to the requirements of this chapter, the
1000	1001		commission shall establish additional eligibility and
1001	1002		prioritization criteria as needed to implement the program [The
1002	1003		commission by rule shall establish criteria for prioritizing
1003	1004		facilities eligible to receive grants under this chapter. The
1004	1005		commission shall review and revise the criteria as appropriate].
1005	1006		(b) The prioritization criteria established under
1006	1007		Subsection (a) must provide that, for each grant round, the
1007	1008		commission may not award a grant to an entity that does not [To be
1008	1009		eligible for a grant under the program, the entity receiving the
1009	1010		grant must] agree to make the alternative fueling facility
1010	1011		accessible and available to the public [persons not associated with
1011	1012		the entity] at times designated by the grant contract until each
1012	1013		eligible entity that does agree to those terms has been awarded a
1013	1014		grant [agreement].
1014	1015		(c) The commission may not award more than one grant for
1015	1016		each facility.
1016	1017		(d) The commission may give preference to or otherwise limit
1017	1018		grant selections to:
1018	1019		(1) fueling facilities providing specific types of
1019	1020		alternative fuels;
1020	1021		(2) fueling facilities in a specified area or
1021	1022		location; and
1022	1023		(3) fueling facilities meeting other specified
1023	1024		prioritization criteria established by the commission.
1024	1025		(e) For fueling facilities to provide natural gas, the
1025	1026		commission shall give preference to:
1026	1027		(1) facilities providing both liquefied natural gas
1027	1028		and compressed natural gas at a single location;
1028	1029		(2) facilities located not more than one mile from an
1029	1030		interstate highway system;
1030	1031		(3) facilities located in the area in and between the
1031	1032		Houston, San Antonio, and Dallas-Fort Worth areas; and
1032	1033		(4) facilities located in the area in and between the
1033	1034		Corpus Christi, Laredo, and San Antonio areas [A recipient of a
1034	1035		grant under this chapter is not eligible to receive a second grant
1035	1036		under this chapter for the same facility].
1036	1037		(o) Effective on the date that the Texas Emissions Reduction
1037	1038		Plan Advisory Board is abolished under Subsection (a) of this
1038	1039		section, Section 393.005, Health and Safety Code, is amended to
1039	1040		read as follows:
1040	1041		Sec. 393.005. RESTRICTION ON USE OF GRANT. (a) A
1041	1042		recipient of a grant under this chapter shall use the grant only to
1042	1043		pay the costs of the facility for which the grant is made. The
1043	1044		recipient may not use the grant to pay the recipient's:
1044	1045		(1) administrative expenses;
1045	1046		(2) expenses for the purchase of land or an interest in
1046	1047		land; or
1047	1048		(3) expenses for equipment or facility improvements
1048	1049		that are not directly related to the delivery, storage,
1049	1050		compression, or dispensing of the alternative fuel at the facility.
1050	1051		(b) Each grant must be awarded using a contract that
1051	1052		requires the recipient to meet operational, maintenance, and
1052	1053		reporting requirements as specified by the commission.
1053	1054		(o-1) Effective on the date that the Texas Emissions
1054	1055		Reduction Plan Advisory Board is abolished under Subsection (a) of
1055	1056		this section, Section 393.006, Health and Safety Code, is amended
1056	1057		to read as follows:
1057	1058		Sec. 393.006. AMOUNT OF GRANT. (a) Grants awarded under
1058	1059		this chapter for a facility to provide alternative fuels other than
1059	1060		natural gas may not exceed [For each eligible facility for which a
1060	1061		recipient is awarded a grant under the program, the commission
1061	1062		shall award the grant in an amount equal to] the lesser of:
1062	1063		(1) 50 percent of the sum of the actual eligible costs
1063	1064		incurred by the grant recipient within deadlines established by the
1064	1065		commission [to construct, reconstruct, or acquire the facility]; or
1065	1066		(2) $600,000.
1066	1067		(b) Grants awarded under this chapter for a facility to
1067	1068		provide natural gas may not exceed:
1068	1069		(1) $400,000 for a compressed natural gas facility;
1069	1070		(2) $400,000 for a liquefied natural gas facility; or
1070	1071		(3) $600,000 for a facility providing both liquefied
1071	1072		and compressed natural gas.
1072	1073		(o-2) Effective on the date that the Texas Emissions
1073	1074		Reduction Plan Advisory Board is abolished under Subsection (a) of
1074	1075		this section, Section 393.007, Health and Safety Code, is amended
1075	1076		to read as follows:
1076	1077		Sec. 393.007. EXPIRATION. This chapter expires on the last
1077	1078		day of the state fiscal biennium during which the commission
1078	1079		publishes in the Texas Register the notice required by Section
1079	1080		382.037 [August 31, 2018].
1080	1081		(p) Effective on the date that the Texas Emissions Reduction
1081	1082		Plan Advisory Board is abolished under Subsection (a) of this
1082	1083		section, Section 394.001, Health and Safety Code, is amended by
1083	1084		amending Subdivisions (1), (4), (5), and (8) and adding
1084	1085		Subdivisions (1-a) and (7-a) to read as follows:
1085	1086		(1) "Certified" includes:
1086	1087		(A) new vehicle or new engine certification by
1087	1088		the United States Environmental Protection Agency; or
1088	1089		(B) certification or approval by the United
1089	1090		States Environmental Protection Agency of a system to convert a
1090	1091		vehicle or engine to operate on an alternative fuel and a
1091	1092		demonstration by the emissions data used to certify or approve the
1092	1093		vehicle or engine, if the commission determines the testing used to
1093	1094		obtain the emissions data is consistent with the testing required
1094	1095		for approval of an alternative fuel conversion system for new and
1095	1096		relatively new vehicles or engines under 40 C.F.R. Part 85
1096	1097		["Advisory board" means the Texas Emissions Reduction Plan Advisory
1097	1098		Board].
1098	1099		(1-a) "Clean transportation zone" has the meaning
1099	1100		assigned by Section 393.001.
1100	1101		(4) "Heavy-duty motor vehicle" means a motor vehicle
1101	1102		that [with]:
1102	1103		(A) has a gross vehicle weight rating of more
1103	1104		than 8,500 pounds; and
1104	1105		(B) is certified to or has an engine certified to
1105	1106		the United States Environmental Protection Agency's emissions
1106	1107		standards for heavy-duty vehicles or engines.
1107	1108		(5) "Incremental cost" has the meaning assigned by
1108	1109		Section 386.001 [means the difference between the manufacturer's
1109	1110		suggested retail price of a baseline vehicle, the documented dealer
1110	1111		price of a baseline vehicle, cost to lease or otherwise
1111	1112		commercially finance a baseline vehicle, cost to repower with a
1112	1113		baseline engine, or other appropriate baseline cost established by
1113	1114		the commission, and the actual cost of the natural gas vehicle
1114	1115		purchase, lease, or other commercial financing, or repower].
1115	1116		(7-a) "Natural gas engine" means an engine that
1116	1117		operates:
1117	1118		(A) solely on natural gas, including compressed
1118	1119		natural gas, liquefied natural gas, or liquefied petroleum gas; or
1119	1120		(B) on a combination of diesel fuel and natural
1120	1121		gas, including compressed natural gas, liquefied natural gas, or
1121	1122		liquefied petroleum gas, and is capable of achieving at least 60
1122	1123		percent displacement of diesel fuel with natural gas.
1123	1124		(8) "Natural gas vehicle" means a motor vehicle that
1124	1125		is powered by a natural gas engine [receives not less than 75
1125	1126		percent of its power from compressed or liquefied natural gas].
1126	1127		(p-1) Effective on the date that the Texas Emissions
1127	1128		Reduction Plan Advisory Board is abolished under Subsection (a) of
1128	1129		this section, Section 394.003(a), Health and Safety Code, is
1129	1130		amended to read as follows:
1130	1131		(a) A vehicle is a qualifying vehicle that may be considered
1131	1132		for a grant under the program if during the eligibility period
1132	1133		established by the commission [calendar year] the entity:
1133	1134		(1) purchased, leased, or otherwise commercially
1134	1135		financed the vehicle as a new on-road heavy-duty or medium-duty
1135	1136		motor vehicle that:
1136	1137		(A) is a natural gas vehicle;
1137	1138		(B) is certified to the appropriate current
1138	1139		federal emissions standards as determined by the commission; and
1139	1140		(C) replaces an on-road heavy-duty or
1140	1141		medium-duty motor vehicle of the same weight classification and
1141	1142		use; [and
1142	1143		[(D) is powered by an engine certified to:
1143	1144		[(i) emit not more than 0.2 grams of
1144	1145		nitrogen oxides per brake horsepower hour; or
1145	1146		[(ii) meet or exceed the United States
1146	1147		Environmental Protection Agency's Bin 5 standard for light-duty
1147	1148		engines when powering the vehicle;] or
1148	1149		(2) repowered the on-road motor vehicle to a natural
1149	1150		gas vehicle powered by a natural gas engine that[:
1150	1151		[(A)] is certified to the appropriate current
1151	1152		federal emissions standards as determined by the commission[; and
1152	1153		[(B) is:
1153	1154		[(i) a heavy-duty engine that is certified
1154	1155		to emit not more than 0.2 grams of nitrogen oxides per brake
1155	1156		horsepower hour; or
1156	1157		[(ii) certified to meet or exceed the
1157	1158		United States Environmental Protection Agency's Bin 5 standard for
1158	1159		light-duty engines when powering the vehicle].
1159	1160		(p-2) Effective on the date that the Texas Emissions
1160	1161		Reduction Plan Advisory Board is abolished under Subsection (a) of
1161	1162		this section, Section 394.005, Health and Safety Code, is amended
1162	1163		by amending Subsections (a), (b), (c), (f), (g), and (i) and adding
1163	1164		Subsection (c-1) to read as follows:
1164	1165		(a) The commission [by rule] shall establish criteria for
1165	1166		prioritizing qualifying vehicles eligible to receive grants under
1166	1167		this chapter. The commission shall review and revise the criteria
1167	1168		as appropriate [after consultation with the advisory board].
1168	1169		(b) To be eligible for a grant under the program:
1169	1170		(1) the use of the qualifying vehicle must be
1170	1171		projected to result in a reduction in emissions of nitrogen oxides
1171	1172		of at least 25 percent as compared to the motor vehicle or engine
1172	1173		being replaced, based on:
1173	1174		(A) the baseline emission level set by the
1174	1175		commission under Subsection (g); and
1175	1176		(B) the certified emission rate of the new
1176	1177		vehicle; and
1177	1178		(2) the qualifying vehicle must:
1178	1179		(A) replace a heavy-duty or medium-duty motor
1179	1180		vehicle that:
1180	1181		(i) is an on-road vehicle that has been
1181	1182		owned, leased, or otherwise commercially financed and registered
1182	1183		and operated by the applicant in Texas for at least the two years
1183	1184		immediately preceding the submission of a grant application;
1184	1185		(ii) satisfies any minimum average annual
1185	1186		mileage or fuel usage requirements established by the commission;
1186	1187		(iii) satisfies any minimum percentage of
1187	1188		annual usage requirements established by the commission; and
1188	1189		(iv) is in operating condition and has at
1189	1190		least two years of remaining useful life, as determined in
1190	1191		accordance with criteria established by the commission; [or]
1191	1192		(B) replace a heavy-duty or medium-duty motor
1192	1193		vehicle that:
1193	1194		(i) is owned by the applicant;
1194	1195		(ii) is an on-road vehicle that has been:
1195	1196		(a) owned, leased, or otherwise
1196	1197		commercially financed and operated in Texas as a fleet vehicle for
1197	1198		at least the two years immediately preceding the submission of a
1198	1199		grant application; and
1199	1200		(b) registered in a county located in
1200	1201		the clean transportation zone for at least the two years
1201	1202		immediately preceding the submission of a grant application; and
1202	1203		(iii) otherwise satisfies the mileage,
1203	1204		usage, and useful life requirements established under Paragraph (A)
1204	1205		as determined by documentation associated with the vehicle; or
1205	1206		(C) be a heavy-duty or medium-duty motor vehicle
1206	1207		repowered with a natural gas engine that:
1207	1208		(i) is installed in an on-road vehicle that
1208	1209		has been owned, leased, or otherwise commercially financed and
1209	1210		registered and operated by the applicant in Texas for at least the
1210	1211		two years immediately preceding the submission of a grant
1211	1212		application;
1212	1213		(ii) satisfies any minimum average annual
1213	1214		mileage or fuel usage requirements established by the commission;
1214	1215		(iii) satisfies any minimum percentage of
1215	1216		annual usage requirements established by the commission; and
1216	1217		(iv) is installed in an on-road vehicle
1217	1218		that, at the time of the vehicle's repowering, was in operating
1218	1219		condition and had at least two years of remaining useful life, as
1219	1220		determined in accordance with criteria established by the
1220	1221		commission.
1221	1222		(c) As a condition of receiving a grant, the qualifying
1222	1223		vehicle must be continuously owned, leased, or otherwise
1223	1224		commercially financed and registered and operated in the state by
1224	1225		the grant recipient until the earlier of the fourth anniversary of
1225	1226		the activity start date established by the commission [the date of
1226	1227		reimbursement of the grant-funded expenses] or [until] the date the
1227	1228		vehicle has been in operation for 400,000 miles after the activity
1228	1229		start date established by the commission [of reimbursement]. Not
1229	1230		less than 75 percent of the annual use of the qualifying vehicle,
1230	1231		either mileage or fuel use as determined by the commission, must
1231	1232		occur in the clean transportation zone[:
1232	1233		[(1) the counties any part of which are included in the
1233	1234		area described by Section 394.010(a); or
1234	1235		[(2) counties designated as nonattainment areas
1235	1236		within the meaning of Section 107(d) of the federal Clean Air Act
1236	1237		(42 U.S.C. Section 7407)].
1237	1238		(c-1) For purposes of Subsection (c), the commission shall
1238	1239		establish the activity start date based on the date the commission
1239	1240		accepts verification of the disposition of the vehicle or engine.
1240	1241		(f) A heavy-duty or medium-duty motor vehicle replaced
1241	1242		under this program must be rendered permanently inoperable by
1242	1243		crushing the vehicle, by making a hole in the engine block and
1243	1244		permanently destroying the frame of the vehicle, or by another
1244	1245		method approved by the commission, or be [that] permanently removed
1245	1246		[removes the vehicle] from operation in this state. The commission
1246	1247		shall establish criteria for ensuring the permanent destruction or
1247	1248		permanent removal of the engine or vehicle. The commission shall
1248	1249		enforce the destruction and removal requirements. For purposes of
1249	1250		this subsection, "permanent removal" means the permanent export of
1250	1251		the vehicle or engine to a destination outside of the United States,
1251	1252		Canada, or the United Mexican States.
1252	1253		(g) The commission shall establish baseline emission levels
1253	1254		for emissions of nitrogen oxides for on-road heavy-duty or
1254	1255		medium-duty motor vehicles being replaced or repowered by using the
1255	1256		emission certification for the engine or vehicle being replaced.
1256	1257		The commission may consider deterioration of the emission
1257	1258		performance of the engine of the vehicle being replaced in
1258	1259		establishing the baseline emission level. The commission may
1259	1260		consider and establish baseline emission rates for additional
1260	1261		pollutants of concern[, as determined by the commission . . . .
1261	1262		(i) The executive director may [shall] waive the
1262	1263		requirements of Subsection (b)(2)(A)(i) or (B)(ii) on a finding of
1263	1264		good cause, which may include short lapses in registration or
1264	1265		operation due to economic conditions, seasonal work, or other
1265	1266		circumstances.
1266	1267		(q) Effective on the date that the Texas Emissions Reduction
1267	1268		Plan Advisory Board is abolished under Subsection (a) of this
1268	1269		section, Section 394.006, Health and Safety Code, is amended to
1269	1270		read as follows:
1270	1271		Sec. 394.006. RESTRICTION ON USE OF GRANT. A recipient of a
1271	1272		grant under this chapter shall use the grant to pay the incremental
1272	1273		costs of the replacement or vehicle repower for which the grant is
1273	1274		made, which may include a portion of the initial cost of the natural
1274	1275		gas vehicle or natural gas engine, including the cost of the natural
1275	1276		gas fuel system and installation [and the reasonable and necessary
1276	1277		expenses incurred for the labor needed to install
1277	1278		emissions-reducing equipment]. The recipient may not use the
1278	1279		grant to pay the recipient's administrative expenses.
1279	1280		(q-1) Effective on the date that the Texas Emissions
1280	1281		Reduction Plan Advisory Board is abolished under Subsection (a) of
1281	1282		this section, Section 394.007(c), Health and Safety Code, is
1282	1283		amended to read as follows:
1283	1284		(c) A person may not receive a grant under this chapter
1284	1285		that, when combined with any other grant, tax credit, or other
1285	1286		governmental incentive, exceeds the incremental cost of the vehicle
1286	1287		or vehicle repower for which the grant is awarded. A person shall
1287	1288		return to the commission the amount of a grant awarded under this
1288	1289		chapter that, when combined with any other grant, tax credit, or
1289	1290		other governmental incentive, exceeds the incremental cost of the
1290	1291		vehicle or vehicle repower for which the grant is awarded.
1291	1292		(q-2) Effective on the date that the Texas Emissions
1292	1293		Reduction Plan Advisory Board is abolished under Subsection (a) of
1293	1294		this section, Sections 394.008(a) and (b), Health and Safety Code,
1294	1295		are amended to read as follows:
1295	1296		(a) The commission shall establish [adopt] procedures for:
1296	1297		(1) awarding grants under this chapter to reimburse
1297	1298		eligible costs; [in the form of rebates; and]
1298	1299		(2) streamlining the grant application, contracting,
1299	1300		reimbursement, and reporting process for qualifying natural gas
1300	1301		vehicle purchases or repowers; and
1301	1302		(3) preapproving the award of grants to applicants who
1302	1303		propose to purchase and replace motor vehicles described by Section
1303	1304		394.005(b)(2)(B).
1304	1305		(b) Procedures established [adopted] under this section
1305	1306		must:
1306	1307		(1) provide for the commission to compile and
1307	1308		regularly update a listing of potentially eligible [preapproved]
1308	1309		natural gas vehicles and natural gas engines that are certified to
1309	1310		the appropriate current federal emissions standards as determined
1310	1311		by the commission[:
1311	1312		[(A) powered by natural gas engines certified to
1312	1313		emit not more than 0.2 grams of nitrogen oxides per brake horsepower
1313	1314		hour; or
1314	1315		[(B) certified to the United States
1315	1316		Environmental Protection Agency's light-duty Bin 5 standard or
1316	1317		better];
1317	1318		(2) [if a federal standard for the calculation of
1318	1319		emissions reductions exists,] provide a method to calculate the
1319	1320		reduction in emissions of nitrogen oxides, volatile organic
1320	1321		compounds, carbon monoxide, particulate matter, and sulfur
1321	1322		compounds for each replacement or repowering;
1322	1323		(3) assign a standardized grant [rebate] amount for
1323	1324		each qualifying vehicle or engine repower under Section 394.007;
1324	1325		(4) allow for processing applications [rebates] on an
1325	1326		ongoing first-come, first-served basis;
1326	1327		(5) [provide for contracts between the commission and
1327	1328		participating dealers under Section 394.009;
1328	1329		[(6) allow grant recipients to assign their grant
1329	1330		funds to participating dealers to offset the purchase or lease
1330	1331		price;
1331	1332		[(7)] require grant applicants to identify natural gas
1332	1333		fueling stations that are available to fuel the qualifying vehicle
1333	1334		in the area of its use;
1334	1335		(6) [(8)] provide for payment not later than the 30th
1335	1336		day after the date the request for reimbursement for an approved
1336	1337		grant is received;
1337	1338		(7) [(9)] provide for application submission and
1338	1339		application status checks using procedures established by the
1339	1340		commission, which may include application submission and status
1340	1341		checks to be made over the Internet; and
1341	1342		(8) [(10)] consolidate, simplify, and reduce the
1342	1343		administrative work for applicants and the commission associated
1343	1344		with grant application, contracting, reimbursement, and reporting
1344	1345		requirements.
1345	1346		(r) Effective on the date that the Texas Emissions Reduction
1346	1347		Plan Advisory Board is abolished under Subsection (a) of this
1347	1348		section, Section 394.012, Health and Safety Code, is amended to
1348	1349		read as follows:
1349	1350		Sec. 394.012. EXPIRATION. This chapter expires on the last
1350	1351		day of the state fiscal biennium during which the commission
1351	1352		publishes in the Texas Register the notice required by Section
1352	1353		382.037 [August 31, 2017].
1353	1354		(r-1) Effective on the date that the Texas Emissions
1354	1355		Reduction Plan Advisory Board is abolished under Subsection (a) of
1355	1356		this section, Subtitle C, Title 5, Health and Safety Code, is
1356	1357		amended by adding Chapter 395 to read as follows:
1357	1358		CHAPTER 395. GOVERNMENTAL ALTERNATIVE FUEL FLEET GRANT PROGRAM
1358	1359		Sec. 395.001. DEFINITIONS. In this chapter:
1359	1360		(1) "Alternative fuel" means compressed natural gas,
1360	1361		liquefied natural gas, liquefied petroleum gas, hydrogen fuel
1361	1362		cells, or electricity, including electricity to power fully
1362	1363		electric motor vehicles and plug-in hybrid motor vehicles.
1363	1364		(2) "Commission" means the Texas Commission on
1364	1365		Environmental Quality.
1365	1366		(3) "Incremental cost" has the meaning assigned by
1366	1367		Section 386.001.
1367	1368		(4) "Motor vehicle" means a self-propelled device
1368	1369		designed for transporting persons or property on a public highway
1369	1370		that is required to be registered under Chapter 502, Transportation
1370	1371		Code.
1371	1372		(5) "Plug-in hybrid motor vehicle" has the meaning
1372	1373		assigned by Section 2158.001, Government Code.
1373	1374		(6) "Political subdivision" means a county,
1374	1375		municipality, school district, junior college district, river
1375	1376		authority, water district or other special district, or other
1376	1377		political subdivision created under the constitution or a statute
1377	1378		of this state.
1378	1379		(7) "Program" means the governmental alternative fuel
1379	1380		fleet grant program established under this chapter.
1380	1381		(8) "State agency" has the meaning assigned by Section
1381	1382		2151.002, Government Code, and includes the commission.
1382	1383		Sec. 395.002. PROGRAM. (a) The commission shall establish
1383	1384		and administer a governmental alternative fuel fleet grant program
1384	1385		to assist an eligible applicant described by Section 395.003 in
1385	1386		purchasing or leasing new motor vehicles that operate primarily on
1386	1387		an alternative fuel.
1387	1388		(b) The program may provide a grant to an applicant
1388	1389		described by Section 395.003 to:
1389	1390		(1) purchase or lease a new motor vehicle described by
1390	1391		Section 395.004; or
1391	1392		(2) purchase, lease, or install refueling
1392	1393		infrastructure or equipment or procure refueling services as
1393	1394		described by Section 395.005 to store and dispense alternative fuel
1394	1395		needed for a motor vehicle described by Subdivision (1) of this
1395	1396		subsection.
1396	1397		Sec. 395.003. ELIGIBLE APPLICANTS. (a) A state agency or
1397	1398		political subdivision is eligible to apply for a grant under the
1398	1399		program if the entity operates a fleet of more than 15 motor
1399	1400		vehicles, excluding motor vehicles that are owned and operated by a
1400	1401		private company or other third party under a contract with the
1401	1402		entity.
1402	1403		(b) A mass transit or school transportation provider or
1403	1404		other public entity established to provide public or school
1404	1405		transportation services is eligible for a grant under the program.
1405	1406		Sec. 395.004. MOTOR VEHICLE REQUIREMENTS. (a) A grant
1406	1407		recipient may purchase or lease with money from a grant under the
1407	1408		program a new motor vehicle that is originally manufactured to
1408	1409		operate using one or more alternative fuels or is converted to
1409	1410		operate using one or more alternative fuels before the first retail
1410	1411		sale of the vehicle, and that:
1411	1412		(1) has a dedicated system, dual-fuel system, or
1412	1413		bi-fuel system; and
1413	1414		(2) if the motor vehicle is a fully electric motor
1414	1415		vehicle or plug-in hybrid motor vehicle, has a United States
1415	1416		Environmental Protection Agency rating of at least 75 miles per
1416	1417		gallon equivalent or a 75-mile combined city and highway range.
1417	1418		(b) A grant recipient may not use money from a grant under
1418	1419		the program to replace a motor vehicle, transit bus, or school bus
1419	1420		that operates on an alternative fuel unless the replacement vehicle
1420	1421		produces fewer emissions and has greater fuel efficiency than the
1421	1422		vehicle being replaced.
1422	1423		Sec. 395.005. REFUELING INFRASTRUCTURE, EQUIPMENT, AND
1423	1424		SERVICES. A grant recipient may purchase, lease, or install
1424	1425		refueling infrastructure or equipment or procure refueling
1425	1426		services with money from a grant under the program if:
1426	1427		(1) the purchase, lease, installation, or procurement
1427	1428		is made in conjunction with the purchase or lease of a motor vehicle
1428	1429		as described by Section 395.004 or the conversion of a motor vehicle
1429	1430		to operate primarily on an alternative fuel;
1430	1431		(2) the grant recipient demonstrates that a refueling
1431	1432		station that meets the needs of the recipient is not available
1432	1433		within five miles of the location at which the recipient's vehicles
1433	1434		are stored or primarily used; and
1434	1435		(3) for the purchase or installation of refueling
1435	1436		infrastructure or equipment, the infrastructure or equipment will
1436	1437		be owned and operated by the grant recipient, and for the lease of
1437	1438		refueling infrastructure or equipment or the procurement of
1438	1439		refueling services, a third-party service provider engaged by the
1439	1440		grant recipient will provide the infrastructure, equipment, or
1440	1441		services.
1441	1442		Sec. 395.006. ELIGIBLE COSTS. (a) A motor vehicle lease
1442	1443		agreement paid for with money from a grant under the program must
1443	1444		have a term of at least three years.
1444	1445		(b) Refueling infrastructure or equipment purchased or
1445	1446		installed with money from a grant under the program must be used
1446	1447		specifically to store or dispense alternative fuel, as determined
1447	1448		by the commission.
1448	1449		(c) A lease of or service agreement for refueling
1449	1450		infrastructure, equipment, or services paid for with money from a
1450	1451		grant under the program must have a term of at least three years.
1451	1452		Sec. 395.007. GRANT AMOUNTS. (a) The commission may
1452	1453		establish standardized grant amounts based on the incremental costs
1453	1454		associated with the purchase or lease of different categories of
1454	1455		motor vehicles, including the type of fuel used, vehicle class, and
1455	1456		other categories the commission considers appropriate.
1456	1457		(b) In determining the incremental costs and setting the
1457	1458		standardized grant amounts, the commission may consider the
1458	1459		difference in cost between a new motor vehicle operated using
1459	1460		conventional gasoline or diesel fuel and a new motor vehicle
1460	1461		operated using alternative fuel.
1461	1462		(c) The amount of a grant for the purchase or lease of a
1462	1463		motor vehicle may not exceed the amount of the incremental cost of
1463	1464		the purchase or lease.
1464	1465		(d) The commission may establish grant amounts to reimburse
1465	1466		the full cost of the purchase, lease, installation, or procurement
1466	1467		of refueling infrastructure, equipment, or services or may
1467	1468		establish criteria for reimbursing a percentage of the cost.
1468	1469		(e) A grant under the program may be combined with funding
1469	1470		from other sources, including other grant programs, except that a
1470	1471		grant may not be combined with other funding or grants from the
1471	1472		Texas emissions reduction plan. When combined with other funding
1472	1473		sources, a grant may not exceed the total cost to the grant
1473	1474		recipient.
1474	1475		(f) In providing a grant for the lease of a motor vehicle
1475	1476		under this chapter, the commission shall establish criteria:
1476	1477		(1) to offset incremental costs through an up-front
1477	1478		payment to lower the cost basis of the lease; or
1478	1479		(2) if determined appropriate by the commission, to
1479	1480		provide for reimbursement of lease payments over no more than the
1480	1481		period of availability of the contracted funds under applicable
1481	1482		state law and regulation, which may be less than the required
1482	1483		three-year lease term.
1483	1484		(g) In providing a grant for the lease of refueling
1484	1485		infrastructure, equipment, or services, the commission shall
1485	1486		establish criteria:
1486	1487		(1) to offset incremental costs through an up-front
1487	1488		payment to lower the cost basis of the lease; or
1488	1489		(2) if determined appropriate by the commission, to
1489	1490		provide for reimbursement of lease payments over no more than the
1490	1491		period of availability of the contracted funds under applicable
1491	1492		state law and regulation, which may be less than the required
1492	1493		three-year lease term.
1493	1494		(h) Notwithstanding Subsection (d), the commission is not
1494	1495		obligated to fund the full cost of the purchase, lease,
1495	1496		installation, or procurement of refueling infrastructure,
1496	1497		equipment, or services if those costs cannot be incurred and
1497	1498		reimbursed over the period of availability of the funds under
1498	1499		applicable state law and regulation.
1499	1500		Sec. 395.008. AVAILABILITY OF EMISSIONS REDUCTION CREDITS.
1500	1501		(a) A project that is funded from a grant under the program and
1501	1502		that would generate marketable emissions reduction credits under a
1502	1503		state or federal emissions reduction credit averaging, banking, or
1503	1504		trading program is not eligible for funding under the program
1504	1505		unless:
1505	1506		(1) the project includes the transfer of the credits,
1506	1507		or the reductions that would otherwise be marketable credits, to
1507	1508		the commission and, if applicable, the state implementation plan;
1508	1509		and
1509	1510		(2) the credits or reductions, as applicable, are
1510	1511		permanently retired.
1511	1512		(b) An emissions reduction generated by a purchase or lease
1512	1513		under this chapter may be used to demonstrate conformity with the
1513	1514		state implementation plan.
1514	1515		Sec. 395.009. USE OF GRANT MONEY. A grant recipient when
1515	1516		using money from a grant under the program shall prioritize:
1516	1517		(1) the purchase or lease of new motor vehicles,
1517	1518		including new motor vehicles that are converted to operate on an
1518	1519		alternative fuel, when replacing vehicles or adding vehicles to the
1519	1520		fleet;
1520	1521		(2) the purchase of new motor vehicles, including new
1521	1522		motor vehicles that are converted to operate on an alternative
1522	1523		fuel, to replace vehicles that have the highest total mileage and do
1523	1524		not use an alternative fuel; and
1524	1525		(3) to the extent feasible, obtaining, whether by
1525	1526		purchase, purchase and conversion, or lease, motor vehicles that
1526	1527		use compressed natural gas, liquefied natural gas, or liquefied
1527	1528		petroleum gas.
1528	1529		Sec. 395.010. GRANT PROCEDURES AND CRITERIA. (a) The
1529	1530		commission shall establish specific criteria and procedures in
1530	1531		order to implement and administer the program, including the
1531	1532		creation and provision of application forms and guidance on the
1532	1533		application process.
1533	1534		(b) The commission shall award a grant through a contract
1534	1535		between the commission and the grant recipient.
1535	1536		(c) The commission shall provide an online application
1536	1537		process for the submission of all required application documents.
1537	1538		(d) The commission may limit funding for a particular period
1538	1539		according to priorities established by the commission, including
1539	1540		limiting the availability of grants to specific entities, for
1540	1541		certain types of vehicles and infrastructure, or to certain
1541	1542		geographic areas to ensure equitable distribution of grant funds
1542	1543		across the state.
1543	1544		(e) In awarding grants under the program, the commission
1544	1545		shall prioritize projects in the following order:
1545	1546		(1) projects that are proposed by a state agency;
1546	1547		(2) projects that are in or near a nonattainment area;
1547	1548		(3) projects that are in an affected county, as that
1548	1549		term is defined by Section 386.001; and
1549	1550		(4) projects that will produce the greatest emissions
1550	1551		reductions.
1551	1552		(f) In addition to the requirements under Subsection (e), in
1552	1553		awarding grants under the program, the commission shall consider:
1553	1554		(1) the total amount of the emissions reduction that
1554	1555		would be achieved from the project;
1555	1556		(2) the type and number of vehicles purchased or
1556	1557		leased;
1557	1558		(3) the location of the fleet and the refueling
1558	1559		infrastructure or equipment;
1559	1560		(4) the number of vehicles served and the rate at which
1560	1561		vehicles are served by the refueling infrastructure or equipment;
1561	1562		(5) the amount of any matching funds committed by the
1562	1563		applicant; and
1563	1564		(6) the schedule for project completion.
1564	1565		(g) The commission may not award more than 10 percent of the
1565	1566		total amount awarded under the program in any fiscal year for
1566	1567		purchasing, leasing, installing, or procuring refueling
1567	1568		infrastructure, equipment, or services.
1568	1569		Sec. 395.011. FUNDING. The legislature may appropriate
1569	1570		money to the commission from the Texas emissions reduction plan
1570	1571		fund established under Section 386.251 to administer the program.
1571	1572		Sec. 395.012. ADMINISTRATIVE COSTS. In each fiscal year,
1572	1573		the commission may use up to 1.5 percent of the total amount of
1573	1574		money allocated to the program in that fiscal year, but not more
1574	1575		than $1 million, for the administrative costs of the program.
1575	1576		Sec. 395.013. RULES. The commission may adopt rules as
1576	1577		necessary to implement this chapter.
1577	1578		Sec. 395.014. REPORT REQUIRED. On or before November 1 of
1578	1579		each even-numbered year, the commission shall submit to the
1579	1580		governor, lieutenant governor, and members of the legislature a
1580	1581		report that includes the following information regarding awards
1581	1582		made under the program during the preceding state fiscal biennium:
1582	1583		(1) the number of grants awarded under the program;
1583	1584		(2) the recipient of each grant awarded;
1584	1585		(3) the number of vehicles replaced;
1585	1586		(4) the number, type, and location of any refueling
1586	1587		infrastructure, equipment, or services funded under the program;
1587	1588		(5) the total emissions reductions achieved under the
1588	1589		program; and
1589	1590		(6) any other information the commission considers
1590	1591		relevant.
1591	1592		Sec. 395.015. EXPIRATION. This chapter expires on the last
1592	1593		day of the state fiscal biennium during which the commission
1593	1594		publishes in the Texas Register the notice required by Section
1594	1595		382.037.
1595	1596		(r-2) Effective on the date that the Texas Emissions
1596	1597		Reduction Plan Advisory Board is abolished under Subsection (a) of
1597	1598		this section, the following provisions of the Health and Safety
1598	1599		Code are repealed:
1599	1600		. . .
1600	1601		(4) Section 394.009;
1601	1602		(5) Section 394.010; and
1602	1603		(6) Section 394.011.
1603	1604		(s) This subsection takes effect on the date that the Texas
1604	1605		Emissions Reduction Plan Advisory Board is abolished under
1605	1606		Subsection (a) of this section. As soon as practicable after the
1606	1607		effective date of this subsection, the Texas Commission on
1607	1608		Environmental Quality shall implement the online application
1608	1609		process required by Section 395.010(c), Health and Safety Code, as
1609	1610		added by this section. Prior to the implementation of the online
1610	1611		application process, the commission may accept applications for a
1611	1612		grant under Chapter 395, Health and Safety Code, as added by this
1612	1613		section, in any manner provided by the commission.
1613	1614		(s-1) This subsection takes effect on the date that the
1614	1615		Texas Emissions Reduction Plan Advisory Board is abolished under
1615	1616		Subsection (a) of this section. The changes in law made by this
1616	1617		section apply only to a Texas emissions reduction plan grant
1617	1618		awarded on or after the effective date of this section. A grant
1618	1619		awarded before the effective date of this section is governed by the
1619	1620		law in effect on the date the award was made, and the former law is
1620	1621		continued in effect for that purpose.
1621	1622		(t) This section takes effect August 30, 2017.
1622	1623		Explanation: The addition of text is necessary to ensure
1623	1624		that the Texas Commission on Environmental Quality is able to carry
1624	1625		out the commission's duties, responsibilities, and functions in the
1625	1626		implementation of the Texas Emissions Reduction Plan after the
1626	1627		abolishment of the Texas Emissions Reduction Plan Advisory Board.
1627	1628		(2) House Rule 13, Section 9(a)(1), is suspended to permit
1628	1629		the committee to change, alter, or amend text which is not in
1629	1630		disagreement in proposed SECTION 18 of the bill, the effective date
1630	1631		provision of the bill, to read as follows:
1631	1632		SECTION 18. Except as otherwise provided by this Act, this
1632	1633		Act takes effect September 1, 2017.
1633	1634		Explanation: The change in the effective date provision is
1634	1635		necessary to provide an exception for provisions of the bill that
1635	1636		take effect on a date other than September 1, 2017.
1636		-	Landgraf
1637		-	______________________________
1638		-	Speaker of the House
1639		-	I certify that H.R. No. 2614 was adopted by the House on May
1640		-	28, 2017, by the following vote: Yeas 144, Nays 0, 2 present, not
1641		-	voting.
1642		-	______________________________
1643		-	Chief Clerk of the House