Texas 2017 - 85th Regular

Texas Senate Bill SB26 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Estes S.B. No. 26
2		-	(In the Senate - Filed January 18, 2017; January 24, 2017,
3		-	read first time and referred to Committee on Natural Resources &
4		-	Economic Development; March 6, 2017, reported favorably by the
5		-	following vote: Yeas 8, Nays 2; March 6, 2017, sent to printer.)
6		-	Click here to see the committee vote
	1	+	85R27839 JRR-F
	2	+	By: Estes, et al. S.B. No. 26
	3	+	(Landgraf, Pickett, Dale, Reynolds)
	4	+	Substitute the following for S.B. No. 26: No.
7	5
8	6
9	7		A BILL TO BE ENTITLED
10	8		AN ACT
11	9		relating to the Texas emissions reduction plan and other related
12	10		programs and measures to reduce emissions.
13	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	12		SECTION 1. Sections 2158.004(a), (b), (c), and (d),
15	13		Government Code, are amended to read as follows:
16	14		(a) A state agency operating a fleet of more than 15
17	15		vehicles, excluding law enforcement and emergency vehicles, may not
18	16		purchase or lease a motor vehicle unless that vehicle uses
19	17		compressed natural gas, liquefied natural gas, liquefied petroleum
20	18		gas, methanol or methanol/gasoline blends of 85 percent or greater,
21	19		ethanol or ethanol/gasoline blends of 85 percent or greater,
22	20		biodiesel or biodiesel/diesel blends of 20 percent or greater,
23	21		hydrogen fuel cells, or electricity, including electricity to power
24	22		a plug-in hybrid electric motor vehicle.
25	23		(b) A state agency may obtain equipment or refueling
26	24		facilities necessary to operate vehicles using compressed natural
27	25		gas, liquefied natural gas, liquefied petroleum gas, methanol or
28	26		methanol/gasoline blends of 85 percent or greater, ethanol or
29	27		ethanol/gasoline blends of 85 percent or greater, biodiesel or
30	28		biodiesel/diesel blends of 20 percent or greater, hydrogen fuel
31	29		cells, or electricity, including electricity to power a plug-in
32	30		hybrid electric motor vehicle:
33	31		(1) by purchase or lease as authorized by law;
34	32		(2) by gift or loan of the equipment or facilities; or
35	33		(3) by gift or loan of the equipment or facilities or
36	34		by another arrangement under a service contract for the supply of
37	35		compressed natural gas, liquefied natural gas, liquefied petroleum
38	36		gas, methanol or methanol/gasoline blends of 85 percent or greater,
39	37		ethanol or ethanol/gasoline blends of 85 percent or greater,
40	38		biodiesel or biodiesel/diesel blends of 20 percent or greater,
41	39		hydrogen fuel cells, or electricity, including electricity to power
42	40		a plug-in hybrid electric motor vehicle.
43	41		(c) If the equipment or facilities are donated, loaned, or
44	42		provided through another arrangement with the supplier of
45	43		compressed natural gas, liquefied natural gas, liquefied petroleum
46	44		gas, methanol or methanol/gasoline blends of 85 percent or greater,
47	45		ethanol or ethanol/gasoline blends of 85 percent or greater,
48	46		biodiesel or biodiesel/diesel blends of 20 percent or greater,
49	47		hydrogen fuel cells, or electricity, including electricity to power
50	48		a plug-in hybrid electric motor vehicle, the supplier is entitled
51	49		to recoup its actual cost of donating, loaning, or providing the
52	50		equipment or facilities through its fuel charges under the supply
53	51		contract.
54	52		(d) The commission may waive the requirements of this
55	53		section for a state agency on receipt of certification supported by
56	54		evidence acceptable to the commission that:
57	55		(1) the agency's vehicles will be operating primarily
58	56		in an area in which neither the agency nor a supplier has or can
59	57		reasonably be expected to establish adequate refueling for
60	58		compressed natural gas, liquefied natural gas, liquefied petroleum
61	59		gas, methanol or methanol/gasoline blends of 85 percent or greater,
62	60		ethanol or ethanol/gasoline blends of 85 percent or greater,
63	61		biodiesel or biodiesel/diesel blends of 20 percent or greater,
64	62		hydrogen fuel cells, or electricity, including electricity to power
65	63		a plug-in hybrid electric motor vehicle; or
66	64		(2) the agency is unable to obtain equipment or
67	65		refueling facilities necessary to operate vehicles using
68	66		compressed natural gas, liquefied natural gas, liquefied petroleum
69	67		gas, methanol or methanol/gasoline blends of 85 percent or greater,
70	68		ethanol or ethanol/gasoline blends of 85 percent or greater,
71	69		biodiesel or biodiesel/diesel blends of 20 percent or greater,
72	70		hydrogen fuel cells, or electricity, including electricity to power
73	71		a plug-in hybrid electric motor vehicle, at a projected cost that is
74	72		reasonably expected to be no greater than the net costs of continued
75	73		use of conventional gasoline or diesel fuels, measured over the
76	74		expected useful life of the equipment or facilities supplied.
77	75		SECTION 2. Subchapter A, Chapter 2158, Government Code, is
78	76		amended by adding Section 2158.0051 to read as follows:
79	77		Sec. 2158.0051. ALTERNATIVE FUEL FLEETS.
80	78		(a) Notwithstanding the purchase requirements of Section
81		-	2158.004~~, it is the intent of this state that~~:
	79	+	2158.004:
82	80		(1) the vehicle fleet of a state agency that operates a
83	81		fleet of more than 15 motor vehicles, subject to the availability of
84		-	funds, ~~shall~~ be replaced with motor vehicles that use compressed
	82	+	funds, may be replaced with motor vehicles that use compressed
85	83		natural gas, liquefied natural gas, liquefied petroleum gas,
86	84		hydrogen fuel cells, or electricity, including both fully electric
87	85		motor vehicles and plug-in hybrid electric motor vehicles;
88	86		(2) a county or municipality that operates a vehicle
89	87		fleet of more than 15 motor vehicles is authorized, but is not
90	88		required, to replace the fleet with motor vehicles that use
91	89		compressed natural gas, liquefied natural gas, liquefied petroleum
92	90		gas, hydrogen fuel cells, or electricity, including both fully
93	91		electric motor vehicles and plug-in hybrid electric motor vehicles;
94	92		and
95	93		(3) motor vehicles of a state agency, county, or
96	94		municipality described by Subdivisions (1) and (2) that are capable
97		-	of using fuels described by those subdivisions be primarily
98		-	operated with those fuels rather than conventional gasoline or
99		-	diesel fuels.
	95	+	of using fuels described by those subdivisions shall be primarily
	96	+	operated with those fuels.
100	97		(b) In complying with Subsection (a), a state agency to
101	98		which this section applies shall prioritize:
102	99		(1) the purchase or lease of new motor vehicles,
103	100		including new motor vehicles that are converted to operate on an
104	101		alternative fuel described by Subsection (a)(1), when replacing
105	102		vehicles or adding vehicles to the fleet;
106	103		(2) the purchase of new motor vehicles, including new
107	104		motor vehicles that are converted to operate on an alternative fuel
108	105		described by Subsection (a)(1), to replace vehicles that have the
109	106		highest total mileage and do not use a fuel described by Subsection
110	107		(a)(1); and
111	108		(3) to the extent feasible, obtaining, whether by
112	109		purchase, purchase and conversion, or lease, motor vehicles that
113	110		use compressed natural gas, liquefied natural gas, or liquefied
114	111		petroleum gas.
115	112		(c) Subsection (a)(1) does not apply to law enforcement or
116	113		emergency vehicles.
117	114		SECTION 3. Section 386.001(3), Health and Safety Code, is
118	115		amended to read as follows:
119	116		(3) "Commission" means the Texas [Natural Resource
120	117		Conservation] Commission on Environmental Quality.
121	118		SECTION 4. Section 386.002, Health and Safety Code, is
122	119		amended to read as follows:
123	120		Sec. 386.002. EXPIRATION. This chapter expires on the last
124		-	day of the state fiscal biennium during which the ~~commission~~
125		-	publishes in the ~~Texas~~ Register ~~certification that, with respect to~~
126		-	each national ambient air ~~quality standard for ozone under 40~~
127		-	C.F.R. Section 81.344, the ~~United States Environmental Protection~~
	121	+	day of the state fiscal biennium during which the United States
	122	+	Environmental Protection Agency publishes in the Federal Register
	123	+	certification that, with respect to each national ambient air
	124	+	quality standard for ozone under 40 C.F.R. Section 81.344, the
128	125		agency has, for each designated area under that section:
129	126		(1) designated the area as attainment or
130	127		unclassifiable; or
131	128		(2) approved a redesignation substitute making a
132	129		finding of attainment for the area [August 31, 2019].
133	130		SECTION 5. Section 386.051(b), Health and Safety Code, is
134	131		amended to read as follows:
135	132		(b) Under the plan, the commission and the comptroller shall
136	133		provide grants or other funding for:
137	134		(1) the diesel emissions reduction incentive program
138	135		established under Subchapter C, including for infrastructure
139	136		projects established under that subchapter;
140	137		(2) the motor vehicle purchase or lease incentive
141	138		program established under Subchapter D;
142	139		(3) the air quality research support program
143	140		established under Chapter 387;
144	141		(4) the clean school bus program established under
145	142		Chapter 390;
146	143		(5) the new technology implementation grant program
147	144		established under Chapter 391;
148	145		(6) the regional air monitoring program established
149	146		under Section 386.252(a);
150	147		(7) a health effects study as provided by Section
151	148		386.252(a);
152	149		(8) air quality planning activities as provided by
153	150		Section 386.252(d) [386.252(a)];
154	151		(9) a contract with the Energy Systems Laboratory at
155	152		the Texas A&M Engineering Experiment Station for computation of
156		-	creditable statewide emissions reductions as provided by Section
157		-	386.252(a) [386.252(a)(14)];
	153	+	creditable statewide emissions reductions and other reductions of
	154	+	air contaminants subject to the permitting requirements of Chapter
	155	+	382 as provided by Section 386.252(a) [386.252(a)(14)];
158	156		(10) the clean fleet program established under Chapter
159	157		392;
160	158		(11) the alternative fueling facilities program
161	159		established under Chapter 393;
162	160		(12) the natural gas vehicle grant program [and clean
163	161		transportation triangle program] established under Chapter 394;
164	162		(13) other programs the commission may develop that
165	163		lead to reduced emissions of nitrogen oxides, particulate matter,
166	164		or volatile organic compounds in a nonattainment area or affected
167	165		county;
168	166		(14) other programs the commission may develop that
169	167		support congestion mitigation to reduce mobile source ozone
170	168		precursor emissions; [and]
171		-	(15) the drayage truck incentive program established
172		-	under Subchapter D-1; and
173		-	(16) the governmental alternative fuel fleet grant
	169	+	(15) the seaport and rail yard areas emissions
	170	+	reduction [drayage truck incentive] program established under
	171	+	Subchapter D-1;
	172	+	(16) conducting research and other activities
	173	+	associated with making any necessary demonstrations in the state's
	174	+	air quality state implementation plan submitted to the United
	175	+	States Environmental Protection Agency that the excess emissions
	176	+	reported for an area are the result of a foreign emissions source or
	177	+	an exceptional event; and
	178	+	(17) the governmental alternative fuel fleet grant
174	179		program established under Chapter 395.
175	180		SECTION 6. Sections 386.0515(a) and (c), Health and Safety
176	181		Code, are amended to read as follows:
177	182		(a) In this section:
178	183		(1) "Agricultural[, "agricultural] product
179	184		transportation" means the transportation of a raw agricultural
180	185		product from the place of production using a heavy-duty truck to:
181	186		(A) [(1)] a nonattainment area;
182	187		(B) [(2)] an affected county;
183	188		(C) [(3)] a destination inside the clean
184	189		transportation zone [triangle]; or
185	190		(D) [(4)] a county adjacent to a county described
186	191		by Paragraph (B) [Subdivision (2)] or that contains an area
187	192		described by Paragraph (A) or (C) [Subdivision (1) or (3)].
188	193		(2) "Clean transportation zone" has the meaning
189	194		assigned by Section 393.001.
190	195		(c) The determining factor for eligibility for
191	196		participation in a program established under Chapter 392 or
192	197		[Chapter] 394[, as added by Chapter 892 (Senate Bill No. 385), Acts
193	198		of the 82nd Legislature, Regular Session, 2011,] for a project
194	199		relating to agricultural product transportation is the overall
195	200		accumulative net reduction in emissions of oxides of nitrogen in a
196	201		nonattainment area, an affected county, or the clean transportation
197	202		zone [triangle].
198	203		SECTION 7. Section 386.103, Health and Safety Code, is
199	204		amended by adding Subsection (c) to read as follows:
200	205		(c) To reduce the administrative burden for the commission
201	206		and applicants, the commission may streamline the application
202	207		process by:
203	208		(1) reducing data entry and the copying and recopying
204	209		of applications; and
205	210		(2) developing, maintaining, and periodically
206	211		updating a system to accept applications electronically through the
207	212		commission's Internet website.
208	213		SECTION 8. Section 386.104(j), Health and Safety Code, is
209	214		amended to read as follows:
210	215		(j) The executive director may [shall] waive any
211	216		eligibility requirements established under this section on a
212	217		finding of good cause, which may include a waiver for short lapses
213	218		in registration or operation attributable to economic conditions,
214	219		seasonal work, or other circumstances.
215		-	SECTION 9. Chapter 386, Health and Safety Code, is amended
	220	+	SECTION 9. Sections 386.116(a), (b), and (c), Health and
	221	+	Safety Code, are amended to read as follows:
	222	+	(a) In this section, "small business" means a business owned
	223	+	by a person who:
	224	+	(1) owns and operates not more than five [two]
	225	+	vehicles, one of which is:
	226	+	(A) an on-road diesel [with a pre-1994 engine
	227	+	model]; or
	228	+	(B) a non-road diesel [with an engine with
	229	+	uncontrolled emissions]; and
	230	+	(2) has owned the vehicle described by Subdivision
	231	+	(1)(A) or (B) for more than two years [one year].
	232	+	(b) The commission [by rule] shall develop a method of
	233	+	providing fast and simple access to grants under this subchapter
	234	+	for a small business. The method must:
	235	+	(1) create a separate small business grant program; or
	236	+	(2) require the commission to give special
	237	+	consideration to small businesses when implementing another
	238	+	program established under this subchapter.
	239	+	(c) The commission shall publicize and promote the
	240	+	availability of grants under this subchapter for small businesses
	241	+	[section] to encourage the use of vehicles that produce fewer
	242	+	emissions.
	243	+	SECTION 10. Chapter 386, Health and Safety Code, is amended
216	244		by adding Subchapter D to read as follows:
217	245		SUBCHAPTER D. MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM
218	246		Sec. 386.151. DEFINITIONS. In this subchapter:
219	247		(1) "Light-duty motor vehicle" means a motor vehicle
220	248		with a gross vehicle weight rating of less than 10,000 pounds.
221	249		(2) "Motor vehicle" means a self-propelled device
222	250		designed for transporting persons or property on a public highway
223	251		that is required to be registered under Chapter 502, Transportation
224	252		Code.
225	253		Sec. 386.152. APPLICABILITY. The provisions of this
226	254		subchapter relating to a lessee do not apply to a person who rents
227	255		or leases a light-duty motor vehicle for a term of 30 days or less.
228	256		Sec. 386.153. COMMISSION DUTIES REGARDING LIGHT-DUTY MOTOR
229	257		VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM. (a) The commission
230	258		shall develop a purchase or lease incentive program for new
231	259		light-duty motor vehicles and shall adopt rules necessary to
232	260		implement the program.
233	261		(b) The program shall authorize statewide incentives for
234	262		the purchase or lease of new light-duty motor vehicles powered by
235	263		compressed natural gas, liquefied petroleum gas, or hydrogen fuel
236	264		cell or other electric drives for a purchaser or lessee who agrees
237	265		to register and operate the vehicle in this state for a minimum
238	266		period of time to be established by the commission.
239	267		(c) Only one incentive will be provided for each new
240	268		light-duty motor vehicle. The incentive shall be provided to the
241	269		lessee and not to the purchaser if the motor vehicle is purchased
242	270		for the purpose of leasing the vehicle to another person.
243	271		(d) The commission by rule may revise the standards for the
244	272		maximum unloaded vehicle weight rating and gross vehicle weight
245	273		rating of an eligible vehicle to ensure that all of the vehicle
246	274		weight configurations available under one general vehicle model may
247	275		be eligible for an incentive.
248	276		Sec. 386.154. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
249	277		INCENTIVE REQUIREMENTS. (a) A new light-duty motor vehicle
250	278		powered by compressed natural gas or liquefied petroleum gas is
251	279		eligible for a $5,000 incentive if the vehicle:
252	280		(1) has four wheels;
253	281		(2) was originally manufactured to comply with and has
254	282		been certified by an original equipment manufacturer or
255	283		intermediate or final state vehicle manufacturer as complying with,
256	284		or has been altered to comply with, federal motor vehicle safety
257	285		standards, state emissions regulations, and any additional federal
258	286		or state regulations applicable to vehicles powered by compressed
259	287		natural gas or liquefied petroleum gas;
260	288		(3) was manufactured for use primarily on public
261	289		streets, roads, and highways;
262	290		(4) has a dedicated or bi-fuel compressed natural gas
263	291		or liquefied petroleum gas fuel system:
264	292		(A) installed prior to first sale or within 500
265	293		miles of operation of the vehicle following first sale; and
266	294		(B) with a range of at least 125 miles as
267	295		estimated, published, and updated by the United States
268	296		Environmental Protection Agency;
269	297		(5) has, as applicable, a:
270	298		(A) compressed natural gas fuel system that
271	299		complies with the:
272	300		(i) 2013 NFPA 52 Vehicular Gaseous Fuel
273	301		Systems Code; and
274	302		(ii) American National Standard for Basic
275	303		Requirements for Compressed Natural Gas Vehicle (NGV) Fuel
276	304		Containers, commonly cited as "ANSI/CSA NGV2"; or
277	305		(B) liquefied petroleum gas fuel system that
278	306		complies with:
279	307		(i) the 2011 NFPA 58 Liquefied Petroleum
280	308		Gas Code; and
281	309		(ii) Section VII of the 2013 ASME Boiler and
282	310		Pressure Vessel Code; and
283	311		(6) was acquired on or after September 1, 2013, or a
284	312		later date established by the commission, by the person applying
285	313		for the incentive under this subsection and for use or lease by that
286	314		person and not for resale.
287	315		(b) If the commission determines that an updated version of
288	316		a code or standard described by Subdivision (a)(5) is more
289	317		stringent than the version of the code or standard described by
290	318		Subdivision (a)(5), the commission by rule may provide that a
291	319		vehicle for which a person applies for an incentive under
292	320		Subsection (a) is eligible for the incentive only if the vehicle
293	321		complies with the updated version of the code or standard.
294	322		(c) The incentive under Subsection (a) is limited to 1,000
295	323		vehicles for each state fiscal biennium.
296	324		(d) A new light-duty motor vehicle powered by an electric
297	325		drive is eligible for a $2,500 incentive if the vehicle:
298	326		(1) has four wheels;
299	327		(2) was manufactured for use primarily on public
300	328		streets, roads, and highways;
301	329		(3) has not been modified from the original
302	330		manufacturer's specifications;
303	331		(4) has a maximum speed capability of at least 55 miles
304	332		per hour;
305	333		(5) is propelled to a significant extent by an
306	334		electric motor that draws electricity from a hydrogen fuel cell or
307	335		from a battery that:
308	336		(A) has a capacity of not less than four kilowatt
309	337		hours; and
310	338		(B) is capable of being recharged from an
311	339		external source of electricity; and
312	340		(6) was acquired on or after September 1, 2013, or a
313	341		later date as established by the commission, by the person applying
314	342		for the incentive under this subsection and for use or lease by that
315	343		person and not for resale.
316	344		(e) The incentive under Subsection (d) is limited to 2,000
317	345		vehicles for each state fiscal biennium.
318	346		Sec. 386.155. MANUFACTURER'S REPORT. (a) At the beginning
319	347		of but not later than July 1 of each year preceding the vehicle
320	348		model year, a manufacturer of motor vehicles, an intermediate or
321	349		final state vehicle manufacturer, or a manufacturer of compressed
322	350		natural gas or liquefied petroleum gas systems shall provide to the
323	351		commission a list of the new vehicle or natural gas or liquefied
324	352		petroleum gas systems models that the manufacturer intends to sell
325	353		in this state during that model year that meet the incentive
326	354		requirements established under Section 386.154. The manufacturer
327	355		or installer may supplement the list provided to the commission
328	356		under this section as necessary to include additional new vehicle
329	357		models the manufacturer intends to sell in this state during the
330	358		model year.
331	359		(b) The commission may supplement the information provided
332	360		under Subsection (a) with additional information on available
333	361		vehicle models, including information provided by manufacturers or
334	362		installers of systems to convert new motor vehicles to operate on
335	363		natural gas or liquefied petroleum gas before sale as a new vehicle
336	364		or within 500 miles of operation of the vehicle following first
337	365		sale.
338	366		Sec. 386.156. LIST OF ELIGIBLE MOTOR VEHICLES. (a) On
339	367		August 1 of each year the commission shall publish a list of new
340	368		motor vehicle models eligible for inclusion in an incentive under
341	369		this subchapter. The commission shall publish supplements to that
342	370		list as necessary to include additional new vehicle models.
343	371		(b) The commission shall publish the list of eligible motor
344	372		vehicle models on the commission's Internet website.
345	373		Sec. 386.157. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
346	374		INCENTIVE. (a) A person who purchases or leases a new light-duty
347	375		motor vehicle described by Section 386.154 and listed under Section
348	376		386.156(a) is eligible to apply for an incentive under this
349	377		subchapter.
350	378		(b) A lease incentive for a new light-duty motor vehicle
351	379		shall be prorated based on a three-year lease term.
352	380		(c) To receive money under an incentive program provided by
353	381		this subchapter, the purchaser or lessee of a new light-duty motor
354	382		vehicle who is eligible to apply for an incentive under this
355	383		subchapter shall apply for the incentive in the manner provided by
356	384		law or by rule of the commission.
357	385		Sec. 386.158. COMMISSION TO ACCOUNT FOR MOTOR VEHICLE
358	386		PURCHASE OR LEASE INCENTIVES. (a) The commission by rule shall
359	387		develop a method to administer and account for the motor vehicle
360	388		purchase or lease incentives authorized by this subchapter and to
361	389		pay incentive money to the purchaser or lessee of a new motor
362	390		vehicle, on application of the purchaser or lessee as provided by
363	391		this subchapter.
364	392		(b) The commission shall develop and publish forms and
365	393		instructions for the purchaser or lessee of a new motor vehicle to
366	394		use in applying to the commission for an incentive payment under
367	395		this subchapter. The commission shall make the forms available to
368	396		new motor vehicle dealers and leasing agents. Dealers and leasing
369	397		agents shall make the forms available to their prospective
370	398		purchasers or lessees.
371	399		(c) The commission may require the submission of forms and
372	400		documentation as needed to verify eligibility for an incentive
373	401		under this subchapter.
374	402		Sec. 386.159. PURCHASE OR LEASE INCENTIVES INFORMATION.
375	403		(a) The commission shall establish a toll-free telephone number
376	404		available to motor vehicle dealers and leasing agents for the
377	405		dealers and agents to call to verify that incentives are available.
378	406		The commission may provide for issuing verification numbers over
379	407		the telephone line.
380	408		(b) Reliance by a dealer or leasing agent on information
381	409		provided by the commission is a complete defense to an action
382	410		involving or based on eligibility of a vehicle for an incentive or
383	411		availability of vehicles eligible for an incentive.
384	412		Sec. 386.160. RESERVATION OF INCENTIVES. The commission
385	413		may provide for dealers and leasing agents to reserve for a limited
386	414		time period incentives for vehicles that are not readily available
387	415		and must be ordered, if the dealer or leasing agent has a purchase
388	416		or lease order signed by an identified customer.
389		-	SECTION 10. Section 386.181(a), Health and Safety Code, is
	417	+	SECTION 11. The heading to Subchapter D-1, Chapter 386,
	418	+	Health and Safety Code, is amended to read as follows:
	419	+	SUBCHAPTER D-1. SEAPORT AND RAIL YARD AREAS EMISSIONS REDUCTION
	420	+	[DRAYAGE TRUCK INCENTIVE] PROGRAM
	421	+	SECTION 12. The heading to Section 386.181, Health and
	422	+	Safety Code, is amended to read as follows:
	423	+	Sec. 386.181. DEFINITIONS [DEFINITION]; RULES.
	424	+	SECTION 13. Section 386.181(a), Health and Safety Code, is
390	425		amended to read as follows:
391		-	(a) In this subchapter, "drayage truck" means a truck or
392		-	land-based equipment that transports a load to, [or] from, or in a
393		-	seaport or rail yard.
394		-	SECTION 11. Section 386.182(a), Health and Safety Code, is
	426	+	(a) In this subchapter:
	427	+	(1) "Cargo handling equipment" means any heavy-duty
	428	+	non-road, self-propelled vehicle or land-based equipment used at a
	429	+	seaport or rail yard to lift or move cargo, such as containerized,
	430	+	bulk, or break-bulk goods.
	431	+	(2) "Drayage [, "drayage] truck" means a heavy-duty
	432	+	on-road or non-road vehicle that is used for drayage activities and
	433	+	that operates in or transgresses through [truck that transports a
	434	+	load to or from] a seaport or rail yard for the purpose of loading,
	435	+	unloading, or transporting cargo, including transporting empty
	436	+	containers and chassis.
	437	+	SECTION 14. Section 386.182, Health and Safety Code, is
395	438		amended to read as follows:
396		-	(a) The commission shall:
	439	+	Sec. 386.182. COMMISSION DUTIES. (a) The commission
	440	+	shall:
397	441		(1) develop a purchase incentive program to encourage
398		-	owners to replace drayage trucks with pre-2007 model year engines
399		-	or engines certified to an emission rate equivalent to a pre-2007
400		-	model year engine; and
401		-	(2) [with newer drayage trucks and shall] adopt
402		-	guidelines necessary to implement the program described by
403		-	Subdivision (1).
404		-	SECTION 12. Section 386.252, Health and Safety Code, is
	442	+	owners to replace older drayage trucks and cargo handling equipment
	443	+	[with pre-2007 model year engines] with newer drayage trucks and
	444	+	cargo handling equipment; and
	445	+	(2) [shall] adopt guidelines necessary to implement
	446	+	the program described by Subdivision (1).
	447	+	(b) The commission by rule and guideline shall establish
	448	+	criteria for the models of drayage trucks and cargo handling
	449	+	equipment that are eligible for inclusion in an incentive program
	450	+	under this subchapter. [The guidelines must provide that a drayage
	451	+	truck owner is not eligible for an incentive payment under this
	452	+	subchapter unless the truck being replaced contains a pre-2007
	453	+	model year engine and the replacement truck's engine is from model
	454	+	year 2010 or later as determined by the commission and that the
	455	+	truck operates at a seaport or rail yard.]
	456	+	SECTION 15. The heading to Section 386.183, Health and
	457	+	Safety Code, is amended to read as follows:
	458	+	Sec. 386.183. DRAYAGE TRUCK AND CARGO HANDLING EQUIPMENT
	459	+	PURCHASE INCENTIVE.
	460	+	SECTION 16. Section 386.183, Health and Safety Code, is
	461	+	amended by amending Subsections (a), (b), (c), (d), and (e) and
	462	+	adding Subsection (a-1) to read as follows:
	463	+	(a) To be eligible for an incentive under this subchapter, a
	464	+	person must:
	465	+	(1) purchase a replacement drayage truck or cargo
	466	+	handling equipment that under Subsection (a-1)(1) and the
	467	+	guidelines adopted by the commission under Section 386.182 is
	468	+	eligible for inclusion in the program for an incentive under this
	469	+	subchapter; and
	470	+	(2) agree to:
	471	+	(A) register the drayage truck in this state, if
	472	+	the replacement vehicle is an on-road drayage truck;
	473	+	(B) operate the drayage truck or cargo handling
	474	+	equipment in and within a maximum distance established by the
	475	+	commission of a seaport or rail yard in a nonattainment area of this
	476	+	state for not less than 50 percent of the truck's or equipment's
	477	+	[vehicle's] annual mileage or hours of operation, as determined by
	478	+	the commission; and
	479	+	(C) permanently remove the [a pre-2007] drayage
	480	+	truck or cargo handling equipment replaced under the program
	481	+	[containing a pre-2007 engine owned by the person] from operation
	482	+	in a nonattainment area of this state by destroying the engine and
	483	+	scrapping the truck or equipment after the purchase of the
	484	+	replacement [new] truck or equipment in accordance with guidelines
	485	+	established by the commission.
	486	+	(a-1) To be eligible for purchase under this program a
	487	+	drayage truck or cargo handling equipment must:
	488	+	(1) be powered by an electric motor or contain an
	489	+	engine certified to the current federal emissions standards
	490	+	applicable to that type of engine, as determined by the commission;
	491	+	and
	492	+	(2) emit oxides of nitrogen at a rate that is at least
	493	+	25 percent less than the rate at which the truck or equipment being
	494	+	replaced under the program emits such pollutants.
	495	+	(b) To receive money under an incentive program provided by
	496	+	this subchapter, the purchaser of a drayage truck or cargo handling
	497	+	equipment eligible for inclusion in the program must apply for the
	498	+	incentive in the manner provided by law, rule, or guideline of the
	499	+	commission.
	500	+	(c) Not more than one incentive may be provided for each
	501	+	drayage truck or piece of cargo handling equipment purchased.
	502	+	(d) An incentive provided under this subchapter may be used
	503	+	to fund not more than 80 percent of the purchase price of the
	504	+	drayage truck or cargo handling equipment.
	505	+	(e) The commission shall establish procedures to verify
	506	+	that a person who receives an incentive:
	507	+	(1) has operated in a seaport or rail yard and owned or
	508	+	leased the drayage truck or cargo handling equipment to be replaced
	509	+	for at least two years prior to receiving the grant; and
	510	+	(2) permanently destroys the engine and scraps the
	511	+	drayage truck or cargo handling equipment replaced under the
	512	+	program [that contained the pre-2007 engine owned or leased by the
	513	+	person], in accordance with guidelines established by the
	514	+	commission, after the purchase of the replacement [new] truck or
	515	+	equipment.
	516	+	SECTION 17. Section 386.205, Health and Safety Code, is
	517	+	amended to read as follows:
	518	+	Sec. 386.205. EVALUATION OF UTILITY COMMISSION AND
	519	+	COMPTROLLER ENERGY EFFICIENCY PROGRAMS. (a) In cooperation with
	520	+	the laboratory, the utility commission shall provide an annual
	521	+	report to the commission that, by county, quantifies the reductions
	522	+	of energy demand, peak loads, and associated emissions of air
	523	+	contaminants achieved from programs implemented by the state energy
	524	+	conservation office and from programs implemented under Section
	525	+	39.905, Utilities Code.
	526	+	(b) The report must also quantify the reductions in the
	527	+	emissions of each air contaminant subject to the permitting
	528	+	requirements of Chapter 382.
	529	+	SECTION 18. Section 386.252, Health and Safety Code, is
405	530		amended to read as follows:
406	531		Sec. 386.252. USE OF FUND. (a) Money in the fund may be
407	532		used only to implement and administer programs established under
408	533		the plan. Subject to the reallocation of funds by the commission
409	534		under Subsection (g), money [Money] appropriated to the commission
410	535		to be used for the programs under Section 386.051(b) shall
411	536		initially be allocated as follows:
412	537		(1) [not more than] four percent may be used for the
413	538		clean school bus program under Chapter 390;
414	539		(2) [not more than] three percent may be used for the
415	540		new technology implementation grant program under Chapter 391, from
416	541		which at least $1 million will be set aside for electricity storage
417	542		projects related to renewable energy;
418	543		(3) five percent may [shall] be used for the clean
419	544		fleet program under Chapter 392;
420		-	(4) not more than $3 million may be used by the
	545	+	(4) not more than $1.5 [$3] million may be used by the
421	546		commission to fund a regional air monitoring program in commission
422	547		Regions 3 and 4 to be implemented under the commission's oversight,
423	548		including direction regarding the type, number, location, and
424	549		operation of, and data validation practices for, monitors funded by
425	550		the program through a regional nonprofit entity located in North
426	551		Texas having representation from counties, municipalities, higher
427	552		education institutions, and private sector interests across the
428	553		area;
429		-	(5) [not less than] 16 percent may [shall] be used ~~for~~
430		-	the Texas natural gas vehicle grant program under Chapter 394;
431		-	(6) ~~10 [~~not more than five] percent may be used ~~[to~~
432		-	provide grants for natural gas fueling stations under the clean
	554	+	(5) 10 [not less than 16] percent may [shall] be used
	555	+	for the Texas natural gas vehicle grant program under Chapter 394;
	556	+	(6) not more than $6 million [five percent] may be used
	557	+	[to provide grants for natural gas fueling stations under the clean
433	558		transportation triangle program under Section 394.010;
434	559		[(7) not more than five percent may be used] for the
435	560		Texas alternative fueling facilities program under Chapter 393, of
436	561		which a specified amount may be used for fueling stations to provide
437		-	natural gas fuel;
438		-	(7) [(8)] a specified amount may be used each year to
439		-	support research related to air quality as provided by Chapter 387;
	562	+	natural gas fuel, except that money may not be allocated for the
	563	+	Texas alternative fueling facilities program for the state fiscal
	564	+	year ending August 31, 2019;
	565	+	(7) [(8)] not more than $750,000 [a specified amount]
	566	+	may be used each year to support research related to air quality as
	567	+	provided by Chapter 387;
440	568		(8) [(9)] not more than $200,000 may be used for a
441	569		health effects study[;
442	570		[(10) $500,000 is to be deposited in the state treasury
443	571		to the credit of the clean air account created under Section
444	572		382.0622 to supplement funding for air quality planning activities
445	573		in affected counties];
446	574		(9) [(11)] at least $4 million and up to four percent
447		-	to a maximum of $7 million, whichever is greater, is allocated to
448		-	the commission for administrative costs and costs for conducting
449		-	outreach and education activities to promote participation in the
450		-	programs funded under this section;
451		-	(10) [(12) at least] two percent [and up to five
452		-	percent of the fund] is to be used by the commission for the drayage
453		-	truck incentive program established under Subchapter D-1;
	575	+	to a maximum of $8 [$7] million, whichever is greater, is allocated
	576	+	to the commission for administrative costs, including all direct
	577	+	and indirect costs for administering the plan and costs for
	578	+	conducting outreach and education activities;
	579	+	(10) six [(12) at least two] percent [and up to five
	580	+	percent of the fund] is to be used by the commission for the seaport
	581	+	and rail yard areas emissions reduction [drayage truck incentive]
	582	+	program established under Subchapter D-1;
454	583		(11) [(13) not more than] five percent may be used for
455	584		the light-duty motor vehicle purchase or lease incentive program
456	585		established under Subchapter D;
457	586		(12) [(14)] not more than $216,000 is allocated to the
458	587		commission to contract with the Energy Systems Laboratory at the
459	588		Texas A&M Engineering Experiment Station annually for the
460	589		development and annual computation of creditable statewide
461		-	emissions reductions obtained through wind and other renewable
462		-	energy resources for the state implementation plan;
463		-	[(15) 1.5 percent of the money in the fund is allocated
464		-	for administrative costs incurred by the laboratory;] and
465		-	(13) [(16)] the balance is to be used by the
	590	+	emissions reductions and other reductions of air contaminants
	591	+	subject to the permitting requirements of Chapter 382 that are
	592	+	obtained through wind and other renewable energy resources for the
	593	+	state implementation plan;
	594	+	(13) not more than $500,000 may be used by the
	595	+	commission to conduct research and other activities associated with
	596	+	making any necessary demonstrations in the state's air quality
	597	+	state implementation plan submitted to the United States
	598	+	Environmental Protection Agency that the excess emissions reported
	599	+	for an area are the result of a foreign emissions source or an
	600	+	exceptional event [(15) 1.5 percent of the money in the fund is
	601	+	allocated for administrative costs incurred by the laboratory]; and
	602	+	(14) [(16)] the balance is to be used by the
466	603		commission for the diesel emissions reduction incentive program
467	604		under Subchapter C as determined by the commission.
468	605		(b) [The commission may allocate unexpended money
469	606		designated for the clean fleet program under Chapter 392 to other
470	607		programs described under Subsection (a) after the commission
471	608		allocates money to recipients under the clean fleet program.
472	609		[(c) The commission may allocate unexpended money
473	610		designated for the Texas alternative fueling facilities program
474	611		under Chapter 393 to other programs described under Subsection (a)
475	612		after the commission allocates money to recipients under the
476	613		alternative fueling facilities program.
477	614		[(d) The commission may reallocate money designated for the
478	615		Texas natural gas vehicle grant program under Chapter 394 to other
479	616		programs described under Subsection (a) if:
480	617		[(1) the commission, in consultation with the governor
481	618		and the advisory board, determines that the use of the money in the
482	619		fund for that program will cause the state to be in noncompliance
483	620		with the state implementation plan to the extent that federal
484	621		action is likely; and
485	622		[(2) the commission finds that the reallocation of
486	623		some or all of the funding for the program would resolve the
487	624		noncompliance.
488	625		[(e) Under Subsection (d), the commission may not
489	626		reallocate more than the minimum amount of money necessary to
490	627		resolve the noncompliance.
491	628		[(e-1) Money allocated under Subsection (a) to a particular
492	629		program may be used for another program under the plan as determined
493	630		by the commission.
494	631		[(f)] Money in the fund may be used by the commission for
495	632		programs under Sections 386.051(b)(13), (b)(14), and (b-1) as may
496	633		be appropriated for those programs.
497	634		(c) [(g)] If the legislature does not specify amounts or
498	635		percentages from the total appropriation to the commission to be
499	636		allocated under Subsection (a) or (b) [(f)], the commission shall
500	637		determine the amounts of the total appropriation to be allocated
501	638		under each of those subsections, such that the total appropriation
502	639		is expended while maximizing emissions reductions.
503	640		(d) To supplement funding for air quality planning
504	641		activities in affected counties, $500,000 from the fund is to be
505	642		deposited annually in the state treasury to the credit of the clean
506	643		air account created under Section 382.0622.
507	644		(e) Money in the fund may be allocated for administrative
508	645		costs incurred by the Energy Systems Laboratory at the Texas A&M
509	646		Engineering Experiment Station as may be appropriated by the
510	647		legislature.
511	648		(f) To the extent that money is appropriated from the fund
512	649		for that purpose, the commission may use that money to award grants
513	650		under the governmental alternative fuel fleet grant program
514	651		established under Chapter 395, except that the commission may not
515	652		use for that purpose more than three percent of the balance of the
516	653		fund as of September 1 of each state fiscal year of the biennium for
517	654		the governmental alternative fuel fleet grant program in that
518	655		fiscal year.
519	656		(g) [(h)] Subject to the limitations outlined in this
520	657		section and any additional limitations placed on the use of the
521	658		appropriated funds, money allocated under this section to a
522	659		particular program may be used for another program under the plan as
523	660		determined by the commission, based on demand for grants for
524	661		eligible projects under particular programs after the commission
525	662		solicits projects to which to award grants according to the initial
526	663		allocation provisions of this section.
527		-	SECTION 13. Section 390.002(b), Health and Safety Code, is
	664	+	SECTION 19. Section 390.002(b), Health and Safety Code, is
528	665		amended to read as follows:
529	666		(b) Projects that may be considered for a grant under the
530	667		program include:
531	668		(1) diesel oxidation catalysts for school buses built
532	669		before 1994;
533	670		(2) diesel particulate filters for school buses built
534	671		from 1994 to 1998;
535	672		(3) the purchase and use of emission-reducing add-on
536	673		equipment for school buses, including devices that reduce crankcase
537	674		emissions;
538	675		(4) the use of qualifying fuel; [and]
539	676		(5) other technologies that the commission finds will
540	677		bring about significant emissions reductions; and
541	678		(6) replacement of a pre-2007 model year school bus.
542		-	SECTION 14. Section 390.004, Health and Safety Code, is
	679	+	SECTION 20. Section 390.004, Health and Safety Code, is
543	680		amended by adding Subsections (c) and (d) to read as follows:
544	681		(c) A school bus proposed for replacement must:
545	682		(1) be of model year 2006 or earlier;
546	683		(2) have been owned and operated by the applicant for
547	684		at least the two years before submission of the grant application;
548	685		(3) be in good operational condition; and
549	686		(4) be currently used on a regular, daily route to and
550	687		from a school.
551	688		(d) A school bus proposed for purchase to replace a pre-2007
552	689		model year school bus must be of the current model year or the year
553	690		before the current model year at the time of submission of the grant
554	691		application.
555		-	SECTION 15. Section 390.005, Health and Safety Code, is
	692	+	SECTION 21. Section 390.005, Health and Safety Code, is
556	693		amended to read as follows:
557	694		Sec. 390.005. RESTRICTION ON USE OF GRANT. (a) A
558	695		recipient of a grant under this chapter shall use the grant to pay
559	696		the incremental costs of the project for which the grant is made,
560	697		which may include the reasonable and necessary expenses incurred
561	698		for the labor needed to install emissions-reducing equipment. The
562	699		recipient may not use the grant to pay the recipient's
563	700		administrative expenses.
564	701		(b) A school bus acquired to replace an existing school bus
565	702		must be purchased and the grant recipient must agree to own and
566	703		operate the school bus on a regular, daily route to and from a
567	704		school for at least five years after a start date established by the
568	705		commission, based on the date the commission accepts documentation
569	706		of the destruction of the school bus being replaced.
570	707		(c) A school bus replaced under this program must be
571	708		rendered permanently inoperable by crushing the bus, by making a
572	709		hole in the engine block and permanently destroying the frame of the
573	710		bus, or by another method approved by the commission, or be
574	711		permanently removed from operation in this state. The commission
575	712		shall establish criteria for ensuring the permanent destruction or
576	713		permanent removal of the engine or bus. The commission shall
577	714		enforce the destruction and removal requirements. For purposes of
578	715		this subsection, "permanent removal" means the permanent export of
579	716		the bus or engine to a destination outside of the United States,
580	717		Canada, or the United Mexican States.
581		-	SECTION 16. Section 390.006, Health and Safety Code, is
	718	+	SECTION 22. Section 390.006, Health and Safety Code, is
582	719		amended to read as follows:
583	720		Sec. 390.006. EXPIRATION. This chapter expires on the last
584		-	day of the state fiscal biennium during which the ~~commission~~
585		-	publishes in the ~~Texas~~ Register ~~certification that, with respect to~~
586		-	each national ambient air ~~quality standard for ozone under 40~~
587		-	C.F.R. Section 81.344, the ~~United States Environmental Protection~~
	721	+	day of the state fiscal biennium during which the United States
	722	+	Environmental Protection Agency publishes in the Federal Register
	723	+	certification that, with respect to each national ambient air
	724	+	quality standard for ozone under 40 C.F.R. Section 81.344, the
588	725		agency has, for each designated area under that section:
589	726		(1) designated the area as attainment or
590	727		unclassifiable; or
591	728		(2) approved a redesignation substitute making a
592	729		finding of attainment for the area [August 31, 2019].
593		-	SECTION 17. Section 391.002(b), Health and Safety Code, is
	730	+	SECTION 23. Section 391.002(b), Health and Safety Code, is
594	731		amended to read as follows:
595	732		(b) Projects that may be considered for a grant under the
596	733		program include:
597	734		(1) advanced clean energy projects, as defined by
598	735		Section 382.003;
599	736		(2) new technology projects that reduce emissions of
600	737		regulated pollutants from stationary [point] sources;
601	738		(3) new technology projects that reduce emissions from
602	739		upstream and midstream oil and gas production, completions,
603	740		gathering, storage, processing, and transmission activities
604	741		through:
605	742		(A) the replacement, repower, or retrofit of
606		-	stationary compressor engines; or
	743	+	stationary compressor engines;
607	744		(B) the installation of systems to reduce or
608	745		eliminate the loss of gas, flaring of gas, or burning of gas using
609		-	other combustion control devices; and
	746	+	other combustion control devices; or
	747	+	(C) the installation of systems that reduce
	748	+	flaring emissions and other site emissions by capturing waste heat
	749	+	to generate electricity solely for on-site service; and
610	750		(4) [(3)] electricity storage projects related to
611	751		renewable energy, including projects to store electricity produced
612	752		from wind and solar generation that provide efficient means of
613	753		making the stored energy available during periods of peak energy
614	754		use.
615		-	SECTION 18. Section 391.205(a), Health and Safety Code, is
	755	+	SECTION 24. Section 391.102(f), Health and Safety Code, is
	756	+	amended to read as follows:
	757	+	(f) In reviewing a grant application under this chapter
	758	+	[coordinating interagency application review procedures], the
	759	+	commission may [shall]:
	760	+	(1) solicit review and comments from:
	761	+	(A) the comptroller to assess:
	762	+	(i) the financial stability of the
	763	+	applicant;
	764	+	(ii) the economic benefits and job creation
	765	+	potential associated with the project; and
	766	+	(iii) any other information related to the
	767	+	duties of that office;
	768	+	(B) the Public Utility Commission of Texas to
	769	+	assess:
	770	+	(i) the reliability of the proposed
	771	+	technology;
	772	+	(ii) the feasibility and
	773	+	cost-effectiveness of electric transmission associated with the
	774	+	project; and
	775	+	(iii) any other information related to the
	776	+	duties of that agency; and
	777	+	(C) the Railroad Commission of Texas to assess:
	778	+	(i) the availability and cost of the fuel
	779	+	involved with the project; and
	780	+	(ii) any other information related to the
	781	+	duties of that agency; and
	782	+	(2) consider the comments received under Subdivision
	783	+	(1) in the commission's grant award decision process[; and
	784	+	[(3) as part of the report required by Section 391.104,
	785	+	justify awards made to projects that have been negatively reviewed
	786	+	by agencies under Subdivision (1)].
	787	+	SECTION 25. Section 391.104, Health and Safety Code, is
	788	+	amended to read as follows:
	789	+	Sec. 391.104. REPORTING REQUIREMENTS. The commission
	790	+	[annually] shall include in the biennial plan report required by
	791	+	Section 386.057(b) information [prepare a report] that summarizes
	792	+	the applications received and grants awarded in the preceding
	793	+	biennium [year]. Preparation of the information for the report may
	794	+	[must] include the participation of any [the] state agency
	795	+	[agencies] involved in the review of applications under Section
	796	+	391.102, if the commission determines participation of the agency
	797	+	is needed.
	798	+	SECTION 26. Section 391.205(a), Health and Safety Code, is
616	799		amended to read as follows:
617	800		(a) Except as provided by Subsection (c), in awarding grants
618	801		under this chapter the commission shall give preference to projects
619	802		that:
620	803		(1) involve the transport, use, recovery for use, or
621	804		prevention of the loss of natural resources originating or produced
622	805		in this state;
623		-	(2) contain an energy efficiency component; or
	806	+	(2) contain an energy efficiency component; [or]
624	807		(3) include the use of solar, wind, or other renewable
625		-	energy sources.
626		-	SECTION 19. Section 391.304, Health and Safety Code, is
	808	+	energy sources; or
	809	+	(4) recover waste heat from the combustion of natural
	810	+	resources and use the heat to generate electricity.
	811	+	SECTION 27. Section 391.304, Health and Safety Code, is
627	812		amended to read as follows:
628	813		Sec. 391.304. EXPIRATION. This chapter expires on the last
629		-	day of the state fiscal biennium during which the ~~commission~~
630		-	publishes in the ~~Texas~~ Register ~~certification that, with respect to~~
631		-	each national ambient air ~~quality standard for ozone under 40~~
632		-	C.F.R. Section 81.344, the ~~United States Environmental Protection~~
	814	+	day of the state fiscal biennium during which the United States
	815	+	Environmental Protection Agency publishes in the Federal Register
	816	+	certification that, with respect to each national ambient air
	817	+	quality standard for ozone under 40 C.F.R. Section 81.344, the
633	818		agency has, for each designated area under that section:
634	819		(1) designated the area as attainment or
635	820		unclassifiable; or
636	821		(2) approved a redesignation substitute making a
637	822		finding of attainment for the area [August 31, 2019].
638		-	SECTION 20. Section 392.001(1), Health and Safety Code, is
	823	+	SECTION 28. Section 392.001(1), Health and Safety Code, is
639	824		amended to read as follows:
640	825		(1) "Alternative fuel" means a fuel other than
641	826		gasoline or diesel fuel, including electricity, compressed natural
642	827		gas, liquefied [liquified] natural gas, hydrogen, propane, or a
643	828		mixture of fuels containing at least 85 percent methanol by volume.
644		-	SECTION 21. Section 392.003(a), Health and Safety Code, is
	829	+	SECTION 29. Sections 392.002(b) and (c), Health and Safety
	830	+	Code, are amended to read as follows:
	831	+	(b) An entity that places 10 [20] or more qualifying
	832	+	vehicles in service for use entirely in this state during a calendar
	833	+	year is eligible to participate in the program.
	834	+	(c) Notwithstanding Subsection (b), an entity that submits
	835	+	a grant application for 10 [20] or more qualifying vehicles is
	836	+	eligible to participate in the program even if the commission
	837	+	denies approval for one or more of the vehicles during the
	838	+	application process.
	839	+	SECTION 30. Section 392.003(a), Health and Safety Code, is
645	840		amended to read as follows:
646	841		(a) A vehicle is a qualifying vehicle that may be considered
647	842		for a grant under the program if during the eligibility period
648	843		established by the commission [calendar year] the entity purchases
649	844		a new on-road vehicle that:
650	845		(1) is certified to the appropriate current federal
651	846		emissions standards as determined by the commission;
652	847		(2) replaces a diesel-powered on-road vehicle of the
653	848		same weight classification and use; and
654	849		(3) is a hybrid vehicle or fueled by an alternative
655	850		fuel.
656		-	SECTION 22. Section 392.004(d), Health and Safety Code, is
	851	+	SECTION 31. Section 392.004(d), Health and Safety Code, is
657	852		amended to read as follows:
658	853		(d) The commission shall minimize, to the maximum extent
659	854		possible, the amount of paperwork required for an application. [An
660	855		applicant may be required to submit a photograph or other
661	856		documentation of a vehicle identification number, registration
662	857		information, inspection information, tire condition, or engine
663	858		block identification only if the photograph or documentation is
664	859		requested by the commission after the commission has decided to
665	860		award a grant to the applicant under this chapter.]
666		-	SECTION 23. Section 392.005, Health and Safety Code, is
	861	+	SECTION 32. Section 392.005, Health and Safety Code, is
667	862		amended by amending Subsections (c) and (i) and adding Subsection
668	863		(c-1) to read as follows:
669	864		(c) As a condition of receiving a grant, the qualifying
670	865		vehicle must be continuously owned, registered, and operated in the
671	866		state by the grant recipient until the earlier of the fifth
672	867		anniversary of the activity start date established by the
673	868		commission [the date of reimbursement of the grant-funded expenses]
674	869		or [until] the date the vehicle has been in operation for 400,000
675	870		miles after the activity start date established by the commission
676	871		[of reimbursement]. Not less than 75 percent of the annual use of
677	872		the qualifying vehicle, either mileage or fuel use as determined by
678	873		the commission, must occur in the state.
679	874		(c-1) For purposes of Subsection (c), the commission shall
680	875		establish the activity start date based on the date the commission
681	876		accepts verification of the disposition of the vehicle being
682	877		replaced.
683	878		(i) The executive director may [shall] waive the
684	879		requirements of Subsection (b)(2)(A) on a finding of good cause,
685	880		which may include a waiver for short lapses in registration or
686	881		operation attributable to economic conditions, seasonal work, or
687	882		other circumstances.
688		-	SECTION 24. Section 392.008, Health and Safety Code, is
	883	+	SECTION 33. Section 392.008, Health and Safety Code, is
689	884		amended to read as follows:
690	885		Sec. 392.008. EXPIRATION. This chapter expires on the last
691		-	day of the state fiscal biennium during which the ~~commission~~
692		-	publishes in the ~~Texas~~ Register ~~certification that, with respect to~~
693		-	each national ambient air ~~quality standard for ozone under 40~~
694		-	C.F.R. Section 81.344, the ~~United States Environmental Protection~~
	886	+	day of the state fiscal biennium during which the United States
	887	+	Environmental Protection Agency publishes in the Federal Register
	888	+	certification that, with respect to each national ambient air
	889	+	quality standard for ozone under 40 C.F.R. Section 81.344, the
695	890		agency has, for each designated area under that section:
696	891		(1) designated the area as attainment or
697	892		unclassifiable; or
698	893		(2) approved a redesignation substitute making a
699	894		finding of attainment for the area [August 31, 2017].
700		-	SECTION 25. Section 393.001, Health and Safety Code, is
701		-	amended by amending Subdivision (1) and adding ~~Subdivisions~~ (1-a)
702		-	~~and (4) to~~ read as follows:
	895	+	SECTION 34. Section 393.001, Health and Safety Code, is
	896	+	amended by amending Subdivision (1) and adding Subdivision (1-a) to
	897	+	read as follows:
703	898		(1) "Alternative fuel" means a fuel other than
704	899		gasoline or diesel fuel, other than biodiesel fuel, including
705	900		electricity, compressed natural gas, liquefied [liquified] natural
706	901		gas, hydrogen, propane, or a mixture of fuels containing at least 85
707	902		percent methanol by volume.
708	903		(1-a) "Clean transportation zone" means:
709	904		(A) counties containing or intersected by a
710	905		portion of an interstate highway connecting the cities of Houston,
711	906		San Antonio, Dallas, and Fort Worth;
712	907		(B) counties located within the area bounded by
713	908		the interstate highways described by Paragraph (A);
714	909		(C) counties containing or intersected by a
715	910		portion of:
716	911		(i) an interstate highway connecting San
717	912		Antonio to Corpus Christi or Laredo; or
718		-	(ii) ~~a state highway connecting Corpus~~
719		-	Christi and Laredo;
	913	+	(ii) the most direct route using highways
	914	+	in the state highway system connecting Corpus Christi and Laredo;
720	915		(D) counties located within the area bounded by
721	916		the highways described by Paragraph (C);
722	917		(E) counties in this state all or part of which
723	918		are included in a nonattainment area designated under Section
724	919		107(d) of the federal Clean Air Act (42 U.S.C. Section 7407); and
725	920		(F) counties designated as affected counties
726	921		under Section 386.001.
727		-	(4) "State highway" means a highway in this state
728		-	included in the plan providing for a system of state highways
729		-	prepared by the executive director of the Texas Department of
730		-	Transportation under Section 201.103, Transportation Code.
731		-	SECTION 26. Section 393.002, Health and Safety Code, is
	922	+	SECTION 35. Section 393.002, Health and Safety Code, is
732	923		amended to read as follows:
733	924		Sec. 393.002. PROGRAM. (a) The commission shall establish
734	925		and administer the Texas alternative fueling facilities program to
735	926		provide fueling facilities for alternative fuel in the clean
736	927		transportation zone [nonattainment areas]. Under the program, the
737	928		commission shall provide a grant for each eligible facility to
738	929		offset the cost of those facilities.
739	930		(b) An entity that constructs or[,] reconstructs[, or
740	931		acquires] an alternative fueling facility is eligible to
741	932		participate in the program.
742	933		(c) To ensure that alternative fuel vehicles have access to
743	934		fuel and to build the foundation for a self-sustaining market for
744	935		alternative fuels in Texas, the commission shall provide for
745	936		strategically placed fueling facilities in the clean
746	937		transportation zone to enable an alternative fuel vehicle to travel
747	938		in those areas relying solely on the alternative fuel.
748	939		(d) The commission shall maintain a listing to be made
749	940		available to the public online of all vehicle fueling facilities
750	941		that have received grant funding, including location and hours of
751	942		operation.
752		-	SECTION 27. Section 393.003, Health and Safety Code, is
	943	+	SECTION 36. Section 393.003, Health and Safety Code, is
753	944		amended by amending Subsections (a) and (b) and adding Subsections
754	945		(d) and (e) to read as follows:
755	946		(a) An entity operating in this state that constructs or[,]
756	947		reconstructs[, or acquires] a facility to [store, compress, or]
757	948		dispense alternative fuels may apply for and receive a grant under
758	949		the program.
759	950		(b) The commission may [adopt guidelines to] allow a
760	951		regional planning commission, council of governments, or similar
761	952		regional planning agency created under Chapter 391, Local
762	953		Government Code, or a private nonprofit organization to apply for
763	954		and receive a grant to improve the ability of the program to achieve
764	955		its goals.
765	956		(d) An application for a grant under the program must
766	957		include a certification that the applicant complies with laws,
767	958		rules, guidelines, and requirements applicable to taxation of fuel
768	959		provided by the applicant at each fueling facility owned or
769	960		operated by the applicant. The commission may terminate a grant
770	961		awarded under this section without further obligation to the grant
771	962		recipient if the commission determines that the recipient did not
772	963		comply with a law, rule, guideline, or requirement described by
773	964		this subsection. This subsection does not create a cause of action
774	965		to contest an application or award of a grant.
775	966		(e) The commission shall disburse grants under the program
776	967		through a competitive application selection process to offset a
777	968		portion of the eligible costs.
778		-	SECTION 28. Section 393.004, Health and Safety Code, is
	969	+	SECTION 37. Section 393.004, Health and Safety Code, is
779	970		amended to read as follows:
780	971		Sec. 393.004. ELIGIBILITY OF FACILITIES FOR GRANTS.
781	972		(a) In addition to the requirements of this chapter, the
782	973		commission shall establish additional eligibility and
783	974		prioritization criteria as needed to implement the program [The
784	975		commission by rule shall establish criteria for prioritizing
785	976		facilities eligible to receive grants under this chapter. The
786	977		commission shall review and revise the criteria as appropriate].
787	978		(b) The prioritization criteria established under
788	979		Subsection (a) must provide that, for each grant round, the
789	980		commission may not award a grant to an entity that does not [To be
790	981		eligible for a grant under the program, the entity receiving the
791	982		grant must] agree to make the alternative fueling facility
792	983		accessible and available to the public [persons not associated with
793	984		the entity] at times designated by the grant contract until each
794	985		eligible entity that does agree to those terms has been awarded a
795	986		grant [agreement].
796	987		(c) The commission may not award more than one grant for
797	988		each facility.
798	989		(d) The commission may give preference to or otherwise limit
799	990		grant selections to:
800	991		(1) fueling facilities providing specific types of
801	992		alternative fuels;
802	993		(2) fueling facilities in a specified area or
803	994		location; and
804	995		(3) fueling facilities meeting other specified
805	996		prioritization criteria established by the commission.
806	997		(e) For fueling facilities to provide natural gas, the
807	998		commission shall give preference to:
808	999		(1) facilities providing both liquefied natural gas
809	1000		and compressed natural gas at a single location;
810	1001		(2) facilities located not more than one mile from an
811	1002		interstate highway system;
812	1003		(3) facilities located in the area in and between the
813	1004		Houston, San Antonio, and Dallas-Fort Worth areas; and
814	1005		(4) facilities located in the area in and between the
815	1006		Corpus Christi, Laredo, and San Antonio areas [A recipient of a
816	1007		grant under this chapter is not eligible to receive a second grant
817	1008		under this chapter for the same facility].
818		-	SECTION 29. Section 393.005, Health and Safety Code, is
	1009	+	SECTION 38. Section 393.005, Health and Safety Code, is
819	1010		amended to read as follows:
820	1011		Sec. 393.005. RESTRICTION ON USE OF GRANT. (a) A
821	1012		recipient of a grant under this chapter shall use the grant only to
822	1013		pay the costs of the facility for which the grant is made. The
823	1014		recipient may not use the grant to pay the recipient's:
824	1015		(1) administrative expenses;
825	1016		(2) expenses for the purchase of land or an interest in
826	1017		land; or
827	1018		(3) expenses for equipment or facility improvements
828	1019		that are not directly related to the delivery, storage,
829	1020		compression, or dispensing of the alternative fuel at the facility.
830	1021		(b) Each grant must be awarded using a contract that
831	1022		requires the recipient to meet operational, maintenance, and
832	1023		reporting requirements as specified by the commission.
833		-	SECTION 30. Section 393.006, Health and Safety Code, is
	1024	+	SECTION 39. Section 393.006, Health and Safety Code, is
834	1025		amended to read as follows:
835	1026		Sec. 393.006. AMOUNT OF GRANT. (a) Grants awarded under
836	1027		this chapter for a facility to provide alternative fuels other than
837	1028		natural gas may not exceed [For each eligible facility for which a
838	1029		recipient is awarded a grant under the program, the commission
839	1030		shall award the grant in an amount equal to] the lesser of:
840	1031		(1) 50 percent of the sum of the actual eligible costs
841	1032		incurred by the grant recipient within deadlines established by the
842	1033		commission [to construct, reconstruct, or acquire the facility]; or
843	1034		(2) $600,000.
844	1035		(b) Grants awarded under this chapter for a facility to
845	1036		provide natural gas may not exceed:
846	1037		(1) $400,000 for a compressed natural gas facility;
847	1038		(2) $400,000 for a liquefied natural gas facility; or
848	1039		(3) $600,000 for a facility providing both liquefied
849	1040		and compressed natural gas.
850		-	SECTION 31. Section 393.007, Health and Safety Code, is
	1041	+	SECTION 40. Section 393.007, Health and Safety Code, is
851	1042		amended to read as follows:
852	1043		Sec. 393.007. EXPIRATION. This chapter expires on the last
853		-	day of the state fiscal biennium during which the ~~commission~~
854		-	publishes in the ~~Texas~~ Register ~~certification that, with respect to~~
855		-	each national ambient air ~~quality standard for ozone under 40~~
856		-	C.F.R. Section 81.344, the ~~United States Environmental Protection~~
	1044	+	day of the state fiscal biennium during which the United States
	1045	+	Environmental Protection Agency publishes in the Federal Register
	1046	+	certification that, with respect to each national ambient air
	1047	+	quality standard for ozone under 40 C.F.R. Section 81.344, the
857	1048		agency has, for each designated area under that section:
858	1049		(1) designated the area as attainment or
859	1050		unclassifiable; or
860	1051		(2) approved a redesignation substitute making a
861	1052		finding of attainment for the area [August 31, 2018].
862		-	SECTION 32. Section 394.001, Health and Safety Code, is
	1053	+	SECTION 41. Section 394.001, Health and Safety Code, is
863	1054		amended by amending Subdivisions (1), (4), (5), and (8) and adding
864	1055		Subdivisions (1-a) and (7-a) to read as follows:
865	1056		(1) "Clean transportation zone" has the meaning
866	1057		assigned by Section 393.001 ["Advisory board" means the Texas
867	1058		Emissions Reduction Plan Advisory Board].
868	1059		(1-a) "Certified" includes:
869	1060		(A) new vehicle or new engine certification by
870	1061		the United States Environmental Protection Agency; or
871	1062		(B) certification or approval by the United
872	1063		States Environmental Protection Agency of a system to convert a
873	1064		vehicle or engine to operate on an alternative fuel and a
874	1065		demonstration by the emissions data used to certify or approve the
875	1066		vehicle or engine, if the commission determines the testing used to
876	1067		obtain the emissions data is consistent with the testing required
877	1068		for approval of an alternative fuel conversion system for new and
878	1069		relatively new vehicles or engines under 40 C.F.R. Part 85.
879	1070		(4) "Heavy-duty motor vehicle" means a motor vehicle
880	1071		that [with]:
881	1072		(A) has a gross vehicle weight rating of more
882	1073		than 8,500 pounds; and
883	1074		(B) is certified to or has an engine certified to
884	1075		the United States Environmental Protection Agency's emissions
885	1076		standards for heavy-duty vehicles or engines.
886	1077		(5) "Incremental cost" has the meaning assigned by
887	1078		Section 386.001 [means the difference between the manufacturer's
888	1079		suggested retail price of a baseline vehicle, the documented dealer
889	1080		price of a baseline vehicle, cost to lease or otherwise
890	1081		commercially finance a baseline vehicle, cost to repower with a
891	1082		baseline engine, or other appropriate baseline cost established by
892	1083		the commission, and the actual cost of the natural gas vehicle
893	1084		purchase, lease, or other commercial financing, or repower].
894	1085		(7-a) "Natural gas engine" means an engine that
895	1086		operates:
896		-	(A) solely on compressed or liquefied natural
897		-	gas; or
898		-	(B) on a combination of diesel fuel and
899		-	compressed or liquefied natural gas and is capable of achieving at
900		-	least 60 percent displacement of diesel fuel with natural gas.
	1087	+	(A) solely on natural gas, including compressed
	1088	+	natural gas, liquefied natural gas, or liquefied petroleum gas; or
	1089	+	(B) on a combination of diesel fuel and natural
	1090	+	gas, including compressed natural gas, liquefied natural gas, or
	1091	+	liquefied petroleum gas, and is capable of achieving at least 60
	1092	+	percent displacement of diesel fuel with natural gas.
901	1093		(8) "Natural gas vehicle" means a motor vehicle that
902	1094		is powered by a natural gas engine [receives not less than 75
903	1095		percent of its power from compressed or liquefied natural gas].
904		-	SECTION 33. Section 394.003(a), Health and Safety Code, is
	1096	+	SECTION 42. Section 394.003(a), Health and Safety Code, is
905	1097		amended to read as follows:
906	1098		(a) A vehicle is a qualifying vehicle that may be considered
907	1099		for a grant under the program if during the eligibility period
908	1100		established by the commission [calendar year] the entity:
909	1101		(1) purchased, leased, or otherwise commercially
910	1102		financed the vehicle as a new on-road heavy-duty or medium-duty
911	1103		motor vehicle that:
912	1104		(A) is a natural gas vehicle;
913	1105		(B) is certified to the appropriate current
914	1106		federal emissions standards as determined by the commission; and
915	1107		(C) replaces an on-road heavy-duty or
916	1108		medium-duty motor vehicle of the same weight classification and
917	1109		use; [and
918	1110		[(D) is powered by an engine certified to:
919	1111		[(i) emit not more than 0.2 grams of
920	1112		nitrogen oxides per brake horsepower hour; or
921	1113		[(ii) meet or exceed the United States
922	1114		Environmental Protection Agency's Bin 5 standard for light-duty
923	1115		engines when powering the vehicle;] or
924	1116		(2) repowered the on-road motor vehicle to a natural
925	1117		gas vehicle powered by a natural gas engine that[:
926	1118		[(A)] is certified to the appropriate current
927	1119		federal emissions standards as determined by the commission[; and
928	1120		[(B) is:
929	1121		[(i) a heavy-duty engine that is certified
930	1122		to emit not more than 0.2 grams of nitrogen oxides per brake
931	1123		horsepower hour; or
932	1124		[(ii) certified to meet or exceed the
933	1125		United States Environmental Protection Agency's Bin 5 standard for
934	1126		light-duty engines when powering the vehicle].
935		-	SECTION 34. Section 394.005, Health and Safety Code, is
	1127	+	SECTION 43. Section 394.005, Health and Safety Code, is
936	1128		amended by amending Subsections (a), (b), (c), (f), (g), and (i) and
937	1129		adding Subsection (c-1) to read as follows:
938	1130		(a) The commission [by rule] shall establish criteria for
939	1131		prioritizing qualifying vehicles eligible to receive grants under
940	1132		this chapter. The commission shall review and revise the criteria
941	1133		as appropriate [after consultation with the advisory board].
942	1134		(b) To be eligible for a grant under the program:
943	1135		(1) the use of the qualifying vehicle must be
944	1136		projected to result in a reduction in emissions of nitrogen oxides
945	1137		of at least 25 percent as compared to the motor vehicle or engine
946	1138		being replaced, based on:
947	1139		(A) the baseline emission level set by the
948	1140		commission under Subsection (g); and
949	1141		(B) the certified emission rate of the new
950	1142		vehicle; and
951	1143		(2) the qualifying vehicle must:
952	1144		(A) replace a heavy-duty or medium-duty motor
953	1145		vehicle that:
954	1146		(i) is an on-road vehicle that has been
955	1147		owned, leased, or otherwise commercially financed and registered
956	1148		and operated by the applicant in Texas for at least the two years
957	1149		immediately preceding the submission of a grant application;
958	1150		(ii) satisfies any minimum average annual
959	1151		mileage or fuel usage requirements established by the commission;
960	1152		(iii) satisfies any minimum percentage of
961	1153		annual usage requirements established by the commission; and
962	1154		(iv) is in operating condition and has at
963		-	least two years of remaining useful life, as determined in
	1155	+	least four [two] years of remaining useful life, as determined in
964	1156		accordance with criteria established by the commission; [or]
965	1157		(B) replace a heavy-duty or medium-duty motor
966	1158		vehicle that:
967	1159		(i) is owned by the applicant;
968	1160		(ii) is an on-road vehicle that has been:
969	1161		(a) owned, leased, or otherwise
970	1162		commercially financed and operated in Texas as a fleet vehicle for
971	1163		at least the two years immediately preceding the submission of a
972	1164		grant application; and
973	1165		(b) registered in a county located in
974		-	a nonattainment or near-nonattainment area for at least the two
975		-	years immediately preceding the submission of a grant application;
976		-	and
	1166	+	the clean transportation zone for at least the two years
	1167	+	immediately preceding the submission of a grant application; and
977	1168		(iii) otherwise satisfies the mileage,
978	1169		usage, and useful life requirements established under Paragraph (A)
979	1170		as determined by documentation associated with the vehicle; or
980	1171		(C) be a heavy-duty or medium-duty motor vehicle
981	1172		repowered with a natural gas engine that:
982	1173		(i) is installed in an on-road vehicle that
983	1174		has been owned, leased, or otherwise commercially financed and
984	1175		registered and operated by the applicant in Texas for at least the
985	1176		two years immediately preceding the submission of a grant
986	1177		application;
987	1178		(ii) satisfies any minimum average annual
988	1179		mileage or fuel usage requirements established by the commission;
989	1180		(iii) satisfies any minimum percentage of
990	1181		annual usage requirements established by the commission; and
991	1182		(iv) is installed in an on-road vehicle
992	1183		that, at the time of the vehicle's repowering, was in operating
993		-	condition and had at least two years of remaining useful ~~life, as~~
994		-	determined in accordance with criteria established by the
	1184	+	condition and had at least four [two] years of remaining useful
	1185	+	life, as determined in accordance with criteria established by the
995	1186		commission.
996	1187		(c) As a condition of receiving a grant, the qualifying
997	1188		vehicle must be continuously owned, leased, or otherwise
998	1189		commercially financed and registered and operated in the state by
999	1190		the grant recipient until the earlier of the fourth anniversary of
1000	1191		the activity start date established by the commission [the date of
1001	1192		reimbursement of the grant-funded expenses] or [until] the date the
1002	1193		vehicle has been in operation for 400,000 miles after the activity
1003	1194		start date established by the commission [of reimbursement]. Not
1004	1195		less than 75 percent of the annual use of the qualifying vehicle,
1005	1196		either mileage or fuel use as determined by the commission, must
1006	1197		occur in the clean transportation zone[:
1007	1198		[(1) the counties any part of which are included in the
1008	1199		area described by Section 394.010(a); or
1009	1200		[(2) counties designated as nonattainment areas
1010	1201		within the meaning of Section 107(d) of the federal Clean Air Act
1011	1202		(42 U.S.C. Section 7407)].
1012	1203		(c-1) For purposes of Subsection (c), the commission shall
1013	1204		establish the activity start date based on the date the commission
1014	1205		accepts verification of the disposition of the vehicle or engine.
1015	1206		(f) A heavy-duty or medium-duty motor vehicle replaced
1016	1207		under this program must be rendered permanently inoperable by
1017	1208		crushing the vehicle, by making a hole in the engine block and
1018	1209		permanently destroying the frame of the vehicle, or by another
1019	1210		method approved by the commission, or be [that] permanently removed
1020	1211		[removes the vehicle] from operation in this state. The commission
1021	1212		shall establish criteria for ensuring the permanent destruction or
1022	1213		permanent removal of the engine or vehicle. The commission shall
1023	1214		enforce the destruction and removal requirements. For purposes of
1024	1215		this subsection, "permanent removal" means the permanent export of
1025	1216		the vehicle or engine to a destination outside of the United States,
1026	1217		Canada, or the United Mexican States.
1027	1218		(g) The commission shall establish baseline emission levels
1028	1219		for emissions of nitrogen oxides for on-road heavy-duty or
1029	1220		medium-duty motor vehicles being replaced or repowered by using the
1030	1221		emission certification for the engine or vehicle being replaced.
1031	1222		The commission may consider deterioration of the emission
1032	1223		performance of the engine of the vehicle being replaced in
1033	1224		establishing the baseline emission level. The commission may
1034	1225		consider and establish baseline emission rates for additional
1035	1226		pollutants of concern[, as determined by the commission after
1036	1227		consultation with the advisory board].
1037	1228		(i) The executive director may [shall] waive the
1038	1229		requirements of Subsection (b)(2)(A)(i) or (B)(ii) on a finding of
1039	1230		good cause, which may include short lapses in registration or
1040	1231		operation due to economic conditions, seasonal work, or other
1041	1232		circumstances.
1042		-	SECTION 35. Section 394.006, Health and Safety Code, is
	1233	+	SECTION 44. Section 394.006, Health and Safety Code, is
1043	1234		amended to read as follows:
1044	1235		Sec. 394.006. RESTRICTION ON USE OF GRANT. A recipient of a
1045	1236		grant under this chapter shall use the grant to pay the incremental
1046	1237		costs of the replacement or vehicle repower for which the grant is
1047	1238		made, which may include a portion of the initial cost of the natural
1048	1239		gas vehicle or natural gas engine, including the cost of the natural
1049	1240		gas fuel system and installation [and the reasonable and necessary
1050	1241		expenses incurred for the labor needed to install
1051	1242		emissions-reducing equipment]. The recipient may not use the
1052	1243		grant to pay the recipient's administrative expenses.
1053		-	SECTION 36. Section 394.007(c), Health and Safety Code, is
	1244	+	SECTION 45. Section 394.007(c), Health and Safety Code, is
1054	1245		amended to read as follows:
1055	1246		(c) A person may not receive a grant under this chapter
1056	1247		that, when combined with any other grant, tax credit, or other
1057	1248		governmental incentive, exceeds the incremental cost of the vehicle
1058	1249		or vehicle repower for which the grant is awarded. A person shall
1059	1250		return to the commission the amount of a grant awarded under this
1060	1251		chapter that, when combined with any other grant, tax credit, or
1061	1252		other governmental incentive, exceeds the incremental cost of the
1062	1253		vehicle or vehicle repower for which the grant is awarded.
1063		-	SECTION 37. Sections 394.008(a) and (b), Health and Safety
	1254	+	SECTION 46. Sections 394.008(a) and (b), Health and Safety
1064	1255		Code, are amended to read as follows:
1065	1256		(a) The commission shall establish [adopt] procedures for:
1066	1257		(1) awarding grants under this chapter to reimburse
1067	1258		eligible costs; [in the form of rebates; and]
1068	1259		(2) streamlining the grant application, contracting,
1069	1260		reimbursement, and reporting process for qualifying natural gas
1070	1261		vehicle purchases or repowers; and
1071	1262		(3) preapproving the award of grants to applicants who
1072	1263		propose to purchase and replace motor vehicles described by Section
1073	1264		394.005(b)(2)(B).
1074	1265		(b) Procedures established [adopted] under this section
1075	1266		must:
1076	1267		(1) provide for the commission to compile and
1077	1268		regularly update a listing of potentially eligible [preapproved]
1078		-	natural gas vehicles and ~~engines powered by~~ natural gas that are
1079		-	~~certified to~~ the appropriate current federal emissions standards as
1080		-	~~determined~~ by the commission[:
	1269	+	natural gas vehicles and natural gas engines that are certified to
	1270	+	the appropriate current federal emissions standards as determined
	1271	+	by the commission[:
1081	1272		[(A) powered by natural gas engines certified to
1082	1273		emit not more than 0.2 grams of nitrogen oxides per brake horsepower
1083	1274		hour; or
1084	1275		[(B) certified to the United States
1085	1276		Environmental Protection Agency's light-duty Bin 5 standard or
1086	1277		better];
1087	1278		(2) [if a federal standard for the calculation of
1088	1279		emissions reductions exists,] provide a method to calculate the
1089	1280		reduction in emissions of nitrogen oxides, volatile organic
1090	1281		compounds, carbon monoxide, particulate matter, and sulfur
1091	1282		compounds for each replacement or repowering;
1092	1283		(3) assign a standardized grant [rebate] amount for
1093	1284		each qualifying vehicle or engine repower under Section 394.007;
1094	1285		(4) allow for processing applications [rebates] on an
1095	1286		ongoing first-come, first-served basis;
1096	1287		(5) [provide for contracts between the commission and
1097	1288		participating dealers under Section 394.009;
1098	1289		[(6) allow grant recipients to assign their grant
1099	1290		funds to participating dealers to offset the purchase or lease
1100	1291		price;
1101	1292		[(7)] require grant applicants to identify natural gas
1102	1293		fueling stations that are available to fuel the qualifying vehicle
1103	1294		in the area of its use;
1104	1295		(6) [(8)] provide for payment not later than the 30th
1105	1296		day after the date the request for reimbursement for an approved
1106	1297		grant is received;
1107	1298		(7) [(9)] provide for application submission and
1108	1299		application status checks using procedures established by the
1109	1300		commission, which may include application submission and status
1110	1301		checks to be made over the Internet; and
1111	1302		(8) [(10)] consolidate, simplify, and reduce the
1112	1303		administrative work for applicants and the commission associated
1113	1304		with grant application, contracting, reimbursement, and reporting
1114	1305		requirements.
1115		-	SECTION 38. Section 394.012, Health and Safety Code, is
	1306	+	SECTION 47. Section 394.012, Health and Safety Code, is
1116	1307		amended to read as follows:
1117	1308		Sec. 394.012. EXPIRATION. This chapter expires on the last
1118		-	day of the state fiscal biennium during which the ~~commission~~
1119		-	publishes in the ~~Texas~~ Register ~~certification that, with respect to~~
1120		-	each national ambient air ~~quality standard for ozone under 40~~
1121		-	C.F.R. Section 81.344, the ~~United States Environmental Protection~~
	1309	+	day of the state fiscal biennium during which the United States
	1310	+	Environmental Protection Agency publishes in the Federal Register
	1311	+	certification that, with respect to each national ambient air
	1312	+	quality standard for ozone under 40 C.F.R. Section 81.344, the
1122	1313		agency has, for each designated area under that section:
1123	1314		(1) designated the area as attainment or
1124	1315		unclassifiable; or
1125	1316		(2) approved a redesignation substitute making a
1126	1317		finding of attainment for the area [August 31, 2017].
1127		-	SECTION 39. Subtitle C, Title 5, Health and Safety Code, is
	1318	+	SECTION 48. Subtitle C, Title 5, Health and Safety Code, is
1128	1319		amended by adding Chapter 395 to read as follows:
1129	1320		CHAPTER 395. GOVERNMENTAL ALTERNATIVE FUEL FLEET GRANT PROGRAM
1130	1321		Sec. 395.001. DEFINITIONS. In this chapter:
1131	1322		(1) "Alternative fuel" means compressed natural gas,
1132	1323		liquefied natural gas, liquefied petroleum gas, hydrogen fuel
1133	1324		cells, or electricity, including electricity to power fully
1134	1325		electric motor vehicles and plug-in hybrid electric motor vehicles.
1135	1326		(2) "Commission" means the Texas Commission on
1136	1327		Environmental Quality.
1137	1328		(3) "Incremental cost" has the meaning assigned by
1138	1329		Section 386.001.
1139	1330		(4) "Motor vehicle" means a self-propelled device
1140	1331		designed for transporting persons or property on a public highway
1141	1332		that is required to be registered under Chapter 502, Transportation
1142	1333		Code.
1143	1334		(5) "Political subdivision" means a school district,
1144	1335		junior college district, river authority, water district or other
1145	1336		special district, or other political subdivision created under the
1146	1337		constitution or a statute of this state, other than a county or
1147	1338		municipality.
1148	1339		(6) "Program" means the governmental alternative fuel
1149	1340		fleet grant program established under this chapter.
1150	1341		(7) "State agency" has the meaning assigned by Section
1151	1342		2151.002, Government Code.
1152	1343		Sec. 395.002. PROGRAM. (a) The commission shall establish
1153	1344		and administer a governmental alternative fuel fleet grant program
1154	1345		to assist an eligible state agency, county, municipality, or
1155	1346		political subdivision in purchasing or leasing new motor vehicles
1156	1347		that operate primarily on an alternative fuel.
1157	1348		(b) The program may provide a grant to a state agency,
1158	1349		county, municipality, or political subdivision to:
1159	1350		(1) purchase or lease a new motor vehicle described by
1160	1351		Section 395.004; or
1161	1352		(2) purchase, lease, or install refueling
1162	1353		infrastructure or equipment or procure refueling services as
1163	1354		described by Section 395.005 to store and dispense alternative fuel
1164	1355		needed for a motor vehicle described by Subdivision (1) of this
1165	1356		subsection.
1166	1357		Sec. 395.003. ELIGIBLE APPLICANTS. (a) A state agency,
1167	1358		county, or municipality is eligible to apply for a grant under the
1168	1359		program if the entity operates a fleet of more than 15 motor
1169	1360		vehicles, excluding motor vehicles that are owned and operated by a
1170	1361		private company or other third party under a contract with the
1171	1362		entity.
1172	1363		(b) A mass transit or school transportation provider or
1173	1364		other public entity established to provide public or school
1174	1365		transportation services is eligible for a grant under the program.
1175	1366		Sec. 395.004. MOTOR VEHICLE REQUIREMENTS. (a) A grant
1176	1367		recipient may purchase or lease with money from a grant under the
1177	1368		program a new motor vehicle that is originally manufactured to
1178	1369		operate using one or more alternative fuels or is converted to
1179	1370		operate using one or more alternative fuels before the first retail
1180	1371		sale of the vehicle, and that:
1181	1372		(1) has a dedicated system, dual-fuel system, or
1182	1373		bi-fuel system; and
1183	1374		(2) if the motor vehicle is a fully electric motor
1184	1375		vehicle or plug-in hybrid electric motor vehicle, has a United
1185	1376		States Environmental Protection Agency rating of at least 75 miles
1186	1377		per gallon equivalent or a 75-mile combined city and highway range.
1187	1378		(b) A grant recipient may not use money from a grant under
1188	1379		the program to replace a motor vehicle, transit bus, or school bus
1189	1380		that operates on an alternative fuel unless the replacement vehicle
1190	1381		produces fewer emissions and has greater fuel efficiency than the
1191	1382		vehicle being replaced.
1192	1383		Sec. 395.005. REFUELING INFRASTRUCTURE, EQUIPMENT, AND
1193	1384		SERVICES. A grant recipient may purchase, lease, or install
1194	1385		refueling infrastructure or equipment or procure refueling
1195	1386		services with money from a grant under the program if:
1196	1387		(1) the purchase, lease, installation, or procurement
1197	1388		is made in conjunction with the purchase or lease of a motor vehicle
1198	1389		as described by Section 395.004 or the conversion of a motor vehicle
1199	1390		to operate primarily on an alternative fuel;
1200	1391		(2) the grant recipient demonstrates that a refueling
1201	1392		station that meets the needs of the recipient is not available
1202	1393		within five miles of the location at which the recipient's vehicles
1203	1394		are stored or primarily used; and
1204	1395		(3) for the purchase or installation of refueling
1205	1396		infrastructure or equipment, the infrastructure or equipment will
1206	1397		be owned and operated by the grant recipient, and for the lease of
1207	1398		refueling infrastructure or equipment or the procurement of
1208	1399		refueling services, a third-party service provider engaged by the
1209	1400		grant recipient will provide the infrastructure, equipment, or
1210	1401		services.
1211	1402		Sec. 395.006. ELIGIBLE COSTS. (a) A motor vehicle lease
1212	1403		agreement paid for with money from a grant under the program must
1213	1404		have a term of at least three years.
1214	1405		(b) Refueling infrastructure or equipment purchased or
1215	1406		installed with money from a grant under the program must be used
1216	1407		specifically to store or dispense alternative fuel, as determined
1217	1408		by the commission.
1218	1409		(c) A lease of or service agreement for refueling
1219	1410		infrastructure, equipment, or services paid for with money from a
1220	1411		grant under the program must have a term of at least three years.
1221	1412		Sec. 395.007. GRANT AMOUNTS. (a) The commission may
1222	1413		establish standardized grant amounts based on the incremental costs
1223	1414		associated with the purchase or lease of different categories of
1224	1415		motor vehicles, including the type of fuel used, vehicle class, and
1225	1416		other categories the commission considers appropriate.
1226	1417		(b) In determining the incremental costs and setting the
1227	1418		standardized grant amounts, the commission may consider the
1228	1419		difference in cost between a new motor vehicle operated using
1229	1420		conventional gasoline or diesel fuel and a new motor vehicle
1230	1421		operated using alternative fuel.
1231	1422		(c) The amount of a grant for the purchase or lease of a
1232	1423		motor vehicle may not exceed the amount of the incremental cost of
1233	1424		the purchase or lease.
1234	1425		(d) The commission may establish grant amounts to reimburse
1235	1426		the full cost of the purchase, lease, installation, or procurement
1236	1427		of refueling infrastructure, equipment, or services or may
1237	1428		establish criteria for reimbursing a percentage of the cost.
1238	1429		(e) A grant under the program may be combined with funding
1239	1430		from other sources, including other grant programs, except that a
1240	1431		grant may not be combined with other funding or grants from the
1241	1432		Texas emissions reduction plan. When combined with other funding
1242	1433		sources, a grant may not exceed the total cost to the grant
1243	1434		recipient.
1244	1435		(f) In providing a grant for the lease of a motor vehicle
1245	1436		under this chapter, the commission shall establish criteria:
1246	1437		(1) to offset incremental costs through an up-front
1247	1438		payment to lower the cost basis of the lease; or
1248	1439		(2) if determined appropriate by the commission, to
1249	1440		provide for reimbursement of lease payments over no more than the
1250	1441		period of availability of the contracted funds under applicable
1251	1442		state law and regulation, which may be less than the required
1252	1443		three-year lease term.
1253	1444		(g) In providing a grant for the lease of refueling
1254	1445		infrastructure, equipment, or services, the commission shall
1255	1446		establish criteria:
1256	1447		(1) to offset incremental costs through an up-front
1257	1448		payment to lower the cost basis of the lease; or
1258	1449		(2) if determined appropriate by the commission, to
1259	1450		provide for reimbursement of lease payments over no more than the
1260	1451		period of availability of the contracted funds under applicable
1261	1452		state law and regulation, which may be less than the required
1262	1453		three-year lease term.
1263	1454		(h) Notwithstanding Subsection (d), the commission is not
1264	1455		obligated to fund the full cost of the purchase, lease,
1265	1456		installation, or procurement of refueling infrastructure,
1266	1457		equipment, or services if those costs cannot be incurred and
1267	1458		reimbursed over the period of availability of the funds under
1268	1459		applicable state law and regulation.
1269	1460		Sec. 395.008. AVAILABILITY OF EMISSIONS REDUCTION CREDITS.
1270	1461		(a) A project that is funded from a grant under the program and
1271	1462		that would generate marketable emissions reduction credits under a
1272	1463		state or federal emissions reduction credit averaging, banking, or
1273	1464		trading program is not eligible for funding under the program
1274	1465		unless:
1275	1466		(1) the project includes the transfer of the credits,
1276	1467		or the reductions that would otherwise be marketable credits, to
1277	1468		the commission and, if applicable, the state implementation plan;
1278	1469		and
1279	1470		(2) the credits or reductions, as applicable, are
1280	1471		permanently retired.
1281	1472		(b) An emissions reduction generated by a purchase or lease
1282	1473		under this chapter may be used to demonstrate conformity with the
1283	1474		state implementation plan.
1284	1475		Sec. 395.009. USE OF GRANT MONEY BY COUNTY OR MUNICIPALITY.
1285	1476		A county or municipality shall prioritize the actions listed in
1286	1477		Section 2158.0051(b), Government Code, when using money from a
1287	1478		grant under the program.
1288	1479		Sec. 395.010. GRANT PROCEDURES AND CRITERIA. (a) The
1289	1480		commission shall establish specific criteria and procedures in
1290	1481		order to implement and administer the program, including the
1291	1482		creation and provision of application forms and guidance on the
1292	1483		application process.
1293	1484		(b) The commission shall award a grant through a contract
1294	1485		between the commission and the grant recipient.
1295	1486		(c) The commission shall provide an online application
1296	1487		process for the submission of all required application documents.
1297	1488		(d) The commission may limit funding for a particular period
1298	1489		according to priorities established by the commission, including
1299	1490		limiting the availability of grants to specific entities, for
1300	1491		certain types of vehicles and infrastructure, or to certain
1301	1492		geographic areas to ensure equitable distribution of grant funds
1302	1493		across the state.
1303	1494		(e) In awarding grants under the program, the commission
1304	1495		shall prioritize projects that:
1305	1496		(1) are proposed by a state agency;
1306	1497		(2) are in or near a nonattainment area;
1307	1498		(3) are in an affected county, as that term is defined
1308	1499		by Section 386.001; and
1309	1500		(4) will produce the greatest emissions reductions.
1310	1501		(f) In addition to the requirements under Subsection (e), in
1311	1502		awarding grants under the program, the commission shall consider:
1312	1503		(1) the effectiveness of a proposed project in
1313	1504		assisting an applicant in complying with Section 2158.0051,
1314	1505		Government Code;
1315	1506		(2) the total amount of the emissions reduction that
1316	1507		would be achieved from the project;
1317	1508		(3) the type and number of vehicles purchased or
1318	1509		leased;
1319	1510		(4) the location of the fleet and the refueling
1320	1511		infrastructure or equipment;
1321	1512		(5) the number of vehicles served and the rate at which
1322	1513		vehicles are served by the refueling infrastructure or equipment;
1323	1514		(6) the amount of any matching funds committed by the
1324	1515		applicant; and
1325	1516		(7) the schedule for project completion.
1326	1517		(g) The commission may not award more than 10 percent of the
1327	1518		total amount awarded under the program in any fiscal year for
1328	1519		purchasing, leasing, installing, or procuring refueling
1329	1520		infrastructure, equipment, or services.
1330	1521		Sec. 395.011. FUNDING. The legislature may appropriate
1331	1522		money to the commission from the Texas emissions reduction plan
1332	1523		fund established under Section 386.251 to administer the program.
1333	1524		Sec. 395.012. ADMINISTRATIVE COSTS. In each fiscal year,
1334		-	the commission may use up to three-fourths of one percent of the
1335		-	total amount of money awarded under the program in that fiscal year,
1336		-	but not more than $1 million, for the administrative costs of the
1337		-	program.
	1525	+	the commission may use up to 1.5 percent of the total amount of
	1526	+	money allocated to the program in that fiscal year, but not more
	1527	+	than $1 million, for the administrative costs of the program.
1338	1528		Sec. 395.013. RULES. The commission may adopt rules as
1339	1529		necessary to implement this chapter.
1340	1530		Sec. 395.014. REPORT REQUIRED. On or before November 1 of
1341	1531		each even-numbered year, the commission shall submit to the
1342	1532		governor, lieutenant governor, and members of the legislature a
1343	1533		report that includes the following information regarding awards
1344	1534		made under the program during the preceding state fiscal biennium:
1345	1535		(1) the number of grants awarded under the program;
1346	1536		(2) the recipient of each grant awarded;
1347	1537		(3) the number of vehicles replaced;
1348	1538		(4) the number, type, and location of any refueling
1349	1539		infrastructure, equipment, or services funded under the program;
1350	1540		(5) the total emissions reductions achieved under the
1351	1541		program; and
1352	1542		(6) any other information the commission considers
1353	1543		relevant.
1354	1544		Sec. 395.015. EXPIRATION. This chapter expires on the last
1355		-	day of the state fiscal biennium during which the ~~commission~~
1356		-	publishes in the ~~Texas~~ Register ~~certification that, with respect to~~
1357		-	each national ambient air ~~quality standard for ozone under 40~~
1358		-	C.F.R. Section 81.344, the ~~United States Environmental Protection~~
	1545	+	day of the state fiscal biennium during which the United States
	1546	+	Environmental Protection Agency publishes in the Federal Register
	1547	+	certification that, with respect to each national ambient air
	1548	+	quality standard for ozone under 40 C.F.R. Section 81.344, the
1359	1549		agency has, for each designated area under that section:
1360	1550		(1) designated the area as attainment or
1361	1551		unclassifiable; or
1362	1552		(2) approved a redesignation substitute making a
1363	1553		finding of attainment for the area.
1364		-	SECTION 40. Sections 394.009, 394.010, and 394.011, Health
	1554	+	SECTION 49. Section 151.0515(d), Tax Code, is amended to
	1555	+	read as follows:
	1556	+	(d) This section expires on the last day of the state fiscal
	1557	+	biennium during which the United States Environmental Protection
	1558	+	Agency publishes in the Federal Register certification that, with
	1559	+	respect to each national ambient air quality standard for ozone
	1560	+	under 40 C.F.R. Section 81.344, the agency has, for each designated
	1561	+	area under that section:
	1562	+	(1) designated the area as attainment or
	1563	+	unclassifiable; or
	1564	+	(2) approved a redesignation substitute making a
	1565	+	finding of attainment for the area [August 31, 2019].
	1566	+	SECTION 50. Section 152.0215(c), Tax Code, is amended to
	1567	+	read as follows:
	1568	+	(c) This section expires on the last day of the state fiscal
	1569	+	biennium during which the United States Environmental Protection
	1570	+	Agency publishes in the Federal Register certification that, with
	1571	+	respect to each national ambient air quality standard for ozone
	1572	+	under 40 C.F.R. Section 81.344, the agency has, for each designated
	1573	+	area under that section:
	1574	+	(1) designated the area as attainment or
	1575	+	unclassifiable; or
	1576	+	(2) approved a redesignation substitute making a
	1577	+	finding of attainment for the area [August 31, 2019].
	1578	+	SECTION 51. Sections 501.138(b-1), (b-2), and (b-3),
	1579	+	Transportation Code, are amended to read as follows:
	1580	+	(b-1) Fees collected under Subsection (b) to be sent to the
	1581	+	comptroller shall be deposited to the credit of the Texas Mobility
	1582	+	Fund[, except that $5 of each fee imposed under Subsection (a)(1)
	1583	+	and deposited on or after September 1, 2008, and before September 1,
	1584	+	2015, shall be deposited to the credit of the Texas emissions
	1585	+	reduction plan fund].
	1586	+	(b-2) The comptroller shall establish a record of the amount
	1587	+	of the fees deposited to the credit of the Texas Mobility Fund under
	1588	+	Subsection (b-1) that are attributable to applicants described by
	1589	+	Subsection (b)(3)(A). On or before the fifth workday of each month,
	1590	+	the Texas Department of Transportation shall remit to the
	1591	+	comptroller for deposit to the credit of the Texas emissions
	1592	+	reduction plan fund an amount of money equal to the amount of the
	1593	+	fees deposited by the comptroller to the credit of the Texas
	1594	+	Mobility Fund under Subsection (b-1) that are attributable to
	1595	+	applicants described by Subsection (b)(3)(A) in the preceding
	1596	+	month. The Texas Department of Transportation shall use for
	1597	+	remittance to the comptroller as required by this subsection money
	1598	+	in the state highway fund that is not required to be used for a
	1599	+	purpose specified by Section 7-a, Article VIII, Texas Constitution,
	1600	+	and may not use for that remittance money received by this state
	1601	+	under the congestion mitigation and air quality improvement program
	1602	+	established under 23 U.S.C. Section 149.
	1603	+	(b-3) This subsection and Subsection (b-2) expire August
	1604	+	31, 2021 [2019].
	1605	+	SECTION 52. Section 502.358(c), Transportation Code, is
	1606	+	amended to read as follows:
	1607	+	(c) This section expires on the last day of the state fiscal
	1608	+	biennium during which the United States Environmental Protection
	1609	+	Agency publishes in the Federal Register certification that, with
	1610	+	respect to each national ambient air quality standard for ozone
	1611	+	under 40 C.F.R. Section 81.344, the agency has, for each designated
	1612	+	area under that section:
	1613	+	(1) designated the area as attainment or
	1614	+	unclassifiable; or
	1615	+	(2) approved a redesignation substitute making a
	1616	+	finding of attainment for the area [August 31, 2019].
	1617	+	SECTION 53. The heading to Section 548.5055, Transportation
	1618	+	Code, is amended to read as follows:
	1619	+	Sec. 548.5055. TEXAS EMISSIONS [EMISSION] REDUCTION PLAN
	1620	+	FEE.
	1621	+	SECTION 54. Sections 548.5055(b) and (c), Transportation
	1622	+	Code, are amended to read as follows:
	1623	+	(b) The department shall remit fees collected under this
	1624	+	section to the comptroller at the time and in the manner prescribed
	1625	+	by the comptroller for deposit in the Texas emissions [emission]
	1626	+	reduction plan fund.
	1627	+	(c) This section expires on the last day of the state fiscal
	1628	+	biennium during which the United States Environmental Protection
	1629	+	Agency publishes in the Federal Register certification that, with
	1630	+	respect to each national ambient air quality standard for ozone
	1631	+	under 40 C.F.R. Section 81.344, the agency has, for each designated
	1632	+	area under that section:
	1633	+	(1) designated the area as attainment or
	1634	+	unclassifiable; or
	1635	+	(2) approved a redesignation substitute making a
	1636	+	finding of attainment for the area [August 31, 2019].
	1637	+	SECTION 55. Sections 394.009, 394.010, and 394.011, Health
1365	1638		and Safety Code, are repealed.
1366		-	SECTION 41. The changes in law made by this Act apply only
1367		-	to a Texas emissions reduction plan grant awarded on or after the
1368		-	effective date of this Act. A grant awarded before the effective
1369		-	date of this Act is governed by the law in effect on the date the
1370		-	award was made, and the former law is continued in effect for that
	1639	+	SECTION 56. (a) The changes in law made by this Act apply
	1640	+	only to a Texas emissions reduction plan grant awarded on or after
	1641	+	the effective date of this Act. A grant awarded before the
	1642	+	effective date of this Act is governed by the law in effect on the
	1643	+	date the award was made, and the former law is continued in effect
	1644	+	for that purpose.
	1645	+	(b) The changes in law made by this Act to Section 501.138,
	1646	+	Transportation Code, apply only to a fee collected on or after the
	1647	+	effective date of this Act. A fee collected before the effective
	1648	+	date of this Act is governed by the law in effect when the fee was
	1649	+	collected, and the former law is continued in effect for that
1371	1650		purpose.
1372		-	SECTION 42. This Act takes effect September 1, 2017.
1373		-	* * * * *
	1651	+	SECTION 57. This Act takes effect August 30, 2017.