By: Birdwell S.R. No. 939
SENATE RESOLUTION
BE IT RESOLVED by the Senate of the State of Texas, 85th
Legislature, Regular Session, 2017, That Senate Rule 12.03 be
suspended in part as provided by Senate Rule 12.08 to enable the
conference committee appointed to resolve the differences on
Senate Bill 1731 (the repeal of laws governing certain state
entities, including the functions of those entities) to consider
and take action on the following matters:
(1) Senate Rule 12.03(4) is suspended to permit the
committee to add text on a matter not included in either the house
or senate version of the bill by adding the following text in
proposed SECTION 8 of the bill:
SECTION 8. TEXAS EMISSIONS REDUCTION PLAN ADVISORY
BOARD.
. . .
(b) To the extent of a conflict between Subsection (a-2)
of this section and any change in law made by another provision of
this section, the change in law made by the other provision of
this section controls.
(b-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Subchapter B, Chapter 382, Health and Safety
Code, is amended by adding Section 382.037 to read as follows:
Sec. 382.037. NOTICE IN TEXAS REGISTER REGARDING
NATIONAL AMBIENT AIR QUALITY STANDARDS FOR OZONE. (a) This
section applies only if:
(1) with respect to each active or revoked national
ambient air quality standard for ozone referenced in 40 C.F.R.
Section 81.344, the United States Environmental Protection
Agency has, for each designated area referenced in that section:
(A) designated the area as attainment or
unclassifiable/attainment; or
(B) approved a redesignation substitute
making a finding of attainment for the area; and
(2) for each designated area described by
Subdivision (1), with respect to an action of the United States
Environmental Protection Agency described by Subdivision (1)(A)
or (B):
(A) the action has been fully and finally
upheld following judicial review or the limitations period to
seek judicial review of the action has expired; and
(B) the rules under which the action was
approved by the agency have been fully and finally upheld
following judicial review or the limitations period to seek
judicial review of those rules has expired.
(b) Not later than the 30th day after the date the
conditions described by Subsection (a) have been met, the
commission shall publish notice in the Texas Register that, with
respect to each active or revoked national ambient air quality
standard for ozone referenced in 40 C.F.R. Section 81.344, the
United States Environmental Protection Agency has, for each
designated area referenced in that section:
(1) designated the area as attainment or
unclassifiable/attainment; or
(2) approved a redesignation substitute making a
finding of attainment for the area.
(b-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 386.001(3), Health and Safety Code, is
amended to read as follows:
(3) "Commission" means the Texas [Natural Resource
Conservation] Commission on Environmental Quality.
(c) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 386.002, Health and Safety Code, is
amended to read as follows:
Sec. 386.002. EXPIRATION. This chapter expires on the
last day of the state fiscal biennium during which the commission
publishes in the Texas Register the notice required by Section
382.037 [August 31, 2019].
(c-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 386.051(b), Health and Safety Code, is
amended to read as follows:
(b) Under the plan, the commission and the comptroller
shall provide grants or other funding for:
(1) the diesel emissions reduction incentive
program established under Subchapter C, including for
infrastructure projects established under that subchapter;
(2) the motor vehicle purchase or lease incentive
program established under Subchapter D;
(3) the air quality research support program
established under Chapter 387;
(4) the clean school bus program established under
Chapter 390;
(5) the new technology implementation grant program
established under Chapter 391;
(6) the regional air monitoring program established
under Section 386.252(a);
(7) a health effects study as provided by Section
386.252(a);
(8) air quality planning activities as provided by
Section 386.252(d) [386.252(a)];
(9) a contract with the Energy Systems Laboratory at
the Texas A&M Engineering Experiment Station for computation of
creditable statewide emissions reductions as provided by Section
386.252(a) [386.252(a)(14)];
(10) the clean fleet program established under
Chapter 392;
(11) the alternative fueling facilities program
established under Chapter 393;
(12) the natural gas vehicle grant program [and
clean transportation triangle program] established under Chapter
394;
(13) other programs the commission may develop that
lead to reduced emissions of nitrogen oxides, particulate
matter, or volatile organic compounds in a nonattainment area or
affected county;
(14) other programs the commission may develop that
support congestion mitigation to reduce mobile source ozone
precursor emissions; [and]
(15) the seaport and rail yard areas emissions
reduction [drayage truck incentive] program established under
Subchapter D-1;
(16) conducting research and other activities
associated with making any necessary demonstrations to the
United States Environmental Protection Agency to account for the
impact of foreign emissions or an exceptional event;
(17) studies of or pilot programs for incentives for
port authorities located in nonattainment areas or affected
counties as provided by Section 386.252(a); and
(18) the governmental alternative fuel fleet grant
program established under Chapter 395.
(c-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Sections 386.0515(a) and (c), Health and Safety
Code, are amended to read as follows:
(a) In this section:
(1) "Agricultural[, "agricultural] product
transportation" means the transportation of a raw agricultural
product from the place of production using a heavy-duty truck to:
(A) [(1)] a nonattainment area;
(B) [(2)] an affected county;
(C) [(3)] a destination inside the clean
transportation zone [triangle]; or
(D) [(4)] a county adjacent to a county
described by Paragraph (B) [Subdivision (2)] or that contains an
area described by Paragraph (A) or (C) [Subdivision (1) or (3)].
(2) "Clean transportation zone" has the meaning
assigned by Section 393.001.
(c) The determining factor for eligibility for
participation in a program established under Chapter 392 or
[Chapter] 394[, as added by Chapter 892 (Senate Bill No. 385),
Acts of the 82nd Legislature, Regular Session, 2011,] for a
project relating to agricultural product transportation is the
overall accumulative net reduction in emissions of oxides of
nitrogen in a nonattainment area, an affected county, or the
clean transportation zone [triangle].
. . .
(d-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 386.103, Health and Safety Code, is
amended by adding Subsection (c) to read as follows:
(c) To reduce the administrative burden for the
commission and applicants, the commission may streamline the
application process by:
(1) reducing data entry and the copying and
recopying of applications; and
(2) developing, maintaining, and periodically
updating a system to accept applications electronically through
the commission's Internet website.
(d-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Sections 386.104(f) and (j), Health and Safety
Code, are amended to read as follows:
. . .
(j) The executive director may [shall] waive any
eligibility requirements established under this section on a
finding of good cause, which may include a waiver for short
lapses in registration or operation attributable to economic
conditions, seasonal work, or other circumstances.
. . .
(e-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Sections 386.116(a), (b), and (c), Health and
Safety Code, are amended to read as follows:
(a) In this section, "small business" means a business
owned by a person who:
(1) owns and operates not more than five [two]
vehicles, one of which is:
(A) an on-road diesel [with a pre-1994 engine
model]; or
(B) a non-road diesel [with an engine with
uncontrolled emissions]; and
(2) has owned the vehicle described by Subdivision
(1)(A) or (B) for more than two years [one year].
(b) The commission [by rule] shall develop a method of
providing fast and simple access to grants under this subchapter
for a small business. The method must:
(1) create a separate small business grant program;
or
(2) require the commission to give special
consideration to small businesses when implementing another
program established under this subchapter.
(c) The commission shall publicize and promote the
availability of grants under this subchapter for small
businesses [section] to encourage the use of vehicles that
produce fewer emissions.
(e-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Chapter 386, Health and Safety Code, is amended
by adding Subchapter D to read as follows:
SUBCHAPTER D. MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM
Sec. 386.151. DEFINITIONS. In this subchapter:
(1) "Light-duty motor vehicle" means a motor
vehicle with a gross vehicle weight rating of less than 10,000
pounds.
(2) "Motor vehicle" means a self-propelled device
designed for transporting persons or property on a public highway
that is required to be registered under Chapter 502,
Transportation Code.
Sec. 386.152. APPLICABILITY. The provisions of this
subchapter relating to a lessee do not apply to a person who rents
or leases a light-duty motor vehicle for a term of 30 days or
less.
Sec. 386.153. COMMISSION DUTIES REGARDING LIGHT-DUTY
MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM. (a) The
commission shall develop a purchase or lease incentive program
for new light-duty motor vehicles and shall adopt rules necessary
to implement the program.
(b) The program shall authorize statewide incentives for
the purchase or lease of new light-duty motor vehicles powered by
compressed natural gas, liquefied petroleum gas, or hydrogen
fuel cell or other electric drives for a purchaser or lessee who
agrees to register and operate the vehicle in this state for a
minimum period of time to be established by the commission.
(c) Only one incentive will be provided for each new
light-duty motor vehicle. The incentive shall be provided to the
lessee and not to the purchaser if the motor vehicle is purchased
for the purpose of leasing the vehicle to another person.
(d) The commission by rule may revise the standards for
the maximum unloaded vehicle weight rating and gross vehicle
weight rating of an eligible vehicle to ensure that all of the
vehicle weight configurations available under one general
vehicle model may be eligible for an incentive.
Sec. 386.154. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
INCENTIVE REQUIREMENTS. (a) A new light-duty motor vehicle
powered by compressed natural gas or liquefied petroleum gas is
eligible for a $5,000 incentive if the vehicle:
(1) has four wheels;
(2) was originally manufactured to comply with and
has been certified by an original equipment manufacturer or
intermediate or final state vehicle manufacturer as complying
with, or has been altered to comply with, federal motor vehicle
safety standards, state emissions regulations, and any
additional federal or state regulations applicable to vehicles
powered by compressed natural gas or liquefied petroleum gas;
(3) was manufactured for use primarily on public
streets, roads, and highways;
(4) has a dedicated or bi-fuel compressed natural
gas or liquefied petroleum gas fuel system:
(A) installed prior to first sale or within
500 miles of operation of the vehicle following first sale; and
(B) with a range of at least 125 miles as
estimated, published, and updated by the United States
Environmental Protection Agency;
(5) has, as applicable, a:
(A) compressed natural gas fuel system that
complies with the:
(i) 2013 NFPA 52 Vehicular Gaseous Fuel
Systems Code; and
(ii) American National Standard for
Basic Requirements for Compressed Natural Gas Vehicle (NGV) Fuel
Containers, commonly cited as "ANSI/CSA NGV2"; or
(B) liquefied petroleum gas fuel system that
complies with:
(i) the 2011 NFPA 58 Liquefied Petroleum
Gas Code; and
(ii) Section VII of the 2013 ASME Boiler
and Pressure Vessel Code; and
(6) was acquired on or after September 1, 2013, or a
later date established by the commission, by the person applying
for the incentive under this subsection and for use or lease by
that person and not for resale.
(b) If the commission determines that an updated version
of a code or standard described by Subsection (a)(5) is more
stringent than the version of the code or standard described by
Subsection (a)(5), the commission by rule may provide that a
vehicle for which a person applies for an incentive under
Subsection (a) is eligible for the incentive only if the vehicle
complies with the updated version of the code or standard.
(c) The incentive under Subsection (a) is limited to
1,000 vehicles for each state fiscal biennium.
(d) A new light-duty motor vehicle powered by an electric
drive is eligible for a $2,500 incentive if the vehicle:
(1) has four wheels;
(2) was manufactured for use primarily on public
streets, roads, and highways;
(3) has not been modified from the original
manufacturer's specifications;
(4) has a maximum speed capability of at least 55
miles per hour;
(5) is propelled to a significant extent by an
electric motor that draws electricity from a hydrogen fuel cell
or from a battery that:
(A) has a capacity of not less than four
kilowatt hours; and
(B) is capable of being recharged from an
external source of electricity; and
(6) was acquired on or after September 1, 2013, or a
later date as established by the commission, by the person
applying for the incentive under this subsection and for use or
lease by that person and not for resale.
(e) The incentive under Subsection (d) is limited to
2,000 vehicles for each state fiscal biennium.
Sec. 386.155. MANUFACTURER'S REPORT. (a) At the
beginning of but not later than July 1 of each year preceding the
vehicle model year, a manufacturer of motor vehicles, an
intermediate or final state vehicle manufacturer, or a
manufacturer of compressed natural gas or liquefied petroleum
gas systems shall provide to the commission a list of the new
vehicle or natural gas or liquefied petroleum gas systems models
that the manufacturer intends to sell in this state during that
model year that meet the incentive requirements established
under Section 386.154. The manufacturer or installer may
supplement the list provided to the commission under this section
as necessary to include additional new vehicle models the
manufacturer intends to sell in this state during the model year.
(b) The commission may supplement the information
provided under Subsection (a) with additional information on
available vehicle models, including information provided by
manufacturers or installers of systems to convert new motor
vehicles to operate on natural gas or liquefied petroleum gas
before sale as a new vehicle or within 500 miles of operation of
the vehicle following first sale.
Sec. 386.156. LIST OF ELIGIBLE MOTOR VEHICLES. (a) On
August 1 of each year the commission shall publish a list of new
motor vehicle models eligible for inclusion in an incentive under
this subchapter. The commission shall publish supplements to
that list as necessary to include additional new vehicle models.
(b) The commission shall publish the list of eligible
motor vehicle models on the commission's Internet website.
Sec. 386.157. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
INCENTIVE. (a) A person who purchases or leases a new
light-duty motor vehicle described by Section 386.154 and listed
under Section 386.156(a) is eligible to apply for an incentive
under this subchapter.
(b) A lease incentive for a new light-duty motor vehicle
shall be prorated based on a three-year lease term.
(c) To receive money under an incentive program provided
by this subchapter, the purchaser or lessee of a new light-duty
motor vehicle who is eligible to apply for an incentive under
this subchapter shall apply for the incentive in the manner
provided by law or by rule of the commission.
Sec. 386.158. COMMISSION TO ACCOUNT FOR MOTOR VEHICLE
PURCHASE OR LEASE INCENTIVES. (a) The commission by rule shall
develop a method to administer and account for the motor vehicle
purchase or lease incentives authorized by this subchapter and to
pay incentive money to the purchaser or lessee of a new motor
vehicle, on application of the purchaser or lessee as provided by
this subchapter.
(b) The commission shall develop and publish forms and
instructions for the purchaser or lessee of a new motor vehicle
to use in applying to the commission for an incentive payment
under this subchapter. The commission shall make the forms
available to new motor vehicle dealers and leasing agents.
Dealers and leasing agents shall make the forms available to
their prospective purchasers or lessees.
(c) The commission may require the submission of forms
and documentation as needed to verify eligibility for an
incentive under this subchapter.
Sec. 386.159. PURCHASE OR LEASE INCENTIVES INFORMATION.
(a) The commission shall establish a toll-free telephone number
available to motor vehicle dealers and leasing agents for the
dealers and agents to call to verify that incentives are
available. The commission may provide for issuing verification
numbers over the telephone line.
(b) Reliance by a dealer or leasing agent on information
provided by the commission is a complete defense to an action
involving or based on eligibility of a vehicle for an incentive
or availability of vehicles eligible for an incentive.
Sec. 386.160. RESERVATION OF INCENTIVES. The commission
may provide for dealers and leasing agents to reserve for a
limited time period incentives for vehicles that are not readily
available and must be ordered, if the dealer or leasing agent has
a purchase or lease order signed by an identified customer.
(f) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, the heading to Subchapter D-1, Chapter 386,
Health and Safety Code, is amended to read as follows:
SUBCHAPTER D-1. SEAPORT AND RAIL YARD AREAS EMISSIONS REDUCTION
[DRAYAGE TRUCK INCENTIVE] PROGRAM
(f-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, the heading to Section 386.181, Health and
Safety Code, is amended to read as follows:
Sec. 386.181. DEFINITIONS [DEFINITION]; RULES.
(f-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 386.181(a), Health and Safety Code, is
amended to read as follows:
(a) In this subchapter:
(1) "Cargo handling equipment" means any heavy-duty
non-road, self-propelled vehicle or land-based equipment used at
a seaport or rail yard to lift or move cargo, such as
containerized, bulk, or break-bulk goods.
(2) "Drayage[, "drayage] truck" means a heavy-duty
on-road or non-road vehicle that is used for drayage activities
and that operates in or transgresses through [truck that
transports a load to or from] a seaport or rail yard for the
purpose of loading, unloading, or transporting cargo, including
transporting empty containers and chassis.
(3) "Repower" means to replace an old engine
powering a vehicle with a new engine, a used engine, a
remanufactured engine, or electric motors, drives, or fuel
cells.
(g) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 386.182, Health and Safety Code, is
amended to read as follows:
Sec. 386.182. COMMISSION DUTIES. (a) The commission
shall:
(1) develop a purchase incentive program to
encourage owners to:
(A) replace older drayage trucks and cargo
handling equipment [with pre-2007 model year engines] with newer
drayage trucks and cargo handling equipment; or
(B) repower drayage trucks and cargo handling
equipment; and
(2) [shall] adopt guidelines necessary to implement
the program described by Subdivision (1).
(b) The commission by rule and guideline shall establish
criteria for the engines and the models of drayage trucks and
cargo handling equipment that are eligible for inclusion in an
incentive program under this subchapter. [The guidelines must
provide that a drayage truck owner is not eligible for an
incentive payment under this subchapter unless the truck being
replaced contains a pre-2007 model year engine and the
replacement truck's engine is from model year 2010 or later as
determined by the commission and that the truck operates at a
seaport or rail yard.]
(g-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, the heading to Section 386.183, Health and
Safety Code, is amended to read as follows:
Sec. 386.183. DRAYAGE TRUCK AND CARGO HANDLING EQUIPMENT
PURCHASE INCENTIVE.
(g-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 386.183, Health and Safety Code, is
amended by amending Subsections (a), (b), (c), (d), and (e) and
adding Subsection (a-1) to read as follows:
(a) To be eligible for an incentive under this
subchapter, a person must:
(1) purchase a replacement drayage truck, piece of
cargo handling equipment, or engine that under Subsection
(a-1)(1)(A) or (2)(A), as applicable, and the guidelines adopted
by the commission under Section 386.182 is eligible for inclusion
in the program for an incentive under this subchapter; and
(2) agree to:
(A) register the drayage truck in this state,
if the replacement or repowered vehicle is an on-road drayage
truck;
(B) operate the replacement or repowered
drayage truck or cargo handling equipment in and within a maximum
distance established by the commission of a seaport or rail yard
in a nonattainment area of this state for not less than 50 percent
of the truck's or equipment's [vehicle's] annual mileage or hours
of operation, as determined by the commission; and
(C) permanently remove the [a pre-2007]
drayage truck, cargo handling equipment, or engine replaced
under the program [containing a pre-2007 engine owned by the
person] from operation in a nonattainment area of this state by
destroying the engine in accordance with guidelines established
by the commission and, if the incentive is for a replacement
drayage truck or cargo handling equipment, scrapping the truck or
equipment after the purchase of the replacement [new] truck or
equipment in accordance with guidelines established by the
commission.
(a-1) To be eligible for purchase under this program:
(1) a drayage truck or cargo handling equipment
must:
(A) be powered by an electric motor or contain
an engine certified to the current federal emissions standards
applicable to that type of engine, as determined by the
commission; and
(B) emit oxides of nitrogen at a rate that is
at least 25 percent less than the rate at which the truck or
equipment being replaced under the program emits such
pollutants; and
(2) an engine repowering a drayage truck or cargo
handling equipment must:
(A) be an electric motor or an engine
certified to the current federal emissions standards applicable
to that type of engine, as determined by the commission; and
(B) emit oxides of nitrogen at a rate that is
at least 25 percent less than the rate at which the former engine
in the truck or equipment being repowered under the program emits
such pollutants.
(b) To receive money under an incentive program provided
by this subchapter, the purchaser of a drayage truck, piece of
cargo handling equipment, or engine eligible for inclusion in the
program must apply for the incentive in the manner provided by
law, rule, or guideline of the commission.
(c) Not more than one incentive may be provided for each
drayage truck or piece of cargo handling equipment purchased or
repowered.
(d) An incentive provided under this subchapter may be
used to fund not more than 80 percent of, as applicable, the
purchase price of:
(1) the drayage truck or cargo handling equipment;
or
(2) the engine and any other eligible costs
associated with repowering the drayage truck or cargo handling
equipment, as determined by the commission.
(e) The commission shall establish procedures to verify
that a person who receives an incentive:
(1) has operated in a seaport or rail yard and owned
or leased the drayage truck or cargo handling equipment to be
replaced or repowered for at least two years prior to receiving
the grant; and
(2) as applicable:
(A) after purchase of the replacement drayage
truck or cargo handling equipment, permanently destroys the
engine and scraps the [drayage] truck or equipment replaced under
the program [that contained the pre-2007 engine owned or leased
by the person,] in accordance with guidelines established by the
commission; or
(B) after repowering the drayage truck or
cargo handling equipment, permanently destroys the engine that
was contained in the truck or equipment in accordance with
guidelines established by the commission[, after the purchase of
the new truck].
(h) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 386.252, Health and Safety Code, is
amended to read as follows:
Sec. 386.252. USE OF FUND. (a) Money in the fund may be
used only to implement and administer programs established under
the plan. Subject to the reallocation of funds by the commission
under Subsection (h), money [Money] appropriated to the
commission to be used for the programs under Section 386.051(b)
shall initially be allocated as follows:
(1) [not more than] four percent may be used for the
clean school bus program under Chapter 390;
(2) [not more than] three percent may be used for
the new technology implementation grant program under Chapter
391, from which at least $1 million will be set aside for
electricity storage projects related to renewable energy;
(3) five percent may [shall] be used for the clean
fleet program under Chapter 392;
(4) not more than $3 million may be used by the
commission to fund a regional air monitoring program in
commission Regions 3 and 4 to be implemented under the
commission's oversight, including direction regarding the type,
number, location, and operation of, and data validation
practices for, monitors funded by the program through a regional
nonprofit entity located in North Texas having representation
from counties, municipalities, higher education institutions,
and private sector interests across the area;
(5) 10 [not less than 16] percent may [shall] be
used for the Texas natural gas vehicle grant program under
Chapter 394;
(6) not more than $6 million [five percent] may be
used [to provide grants for natural gas fueling stations under
the clean transportation triangle program under Section 394.010;
[(7) not more than five percent may be used] for the
Texas alternative fueling facilities program under Chapter 393,
of which a specified amount may be used for fueling stations to
provide natural gas fuel, except that money may not be allocated
for the Texas alternative fueling facilities program for the
state fiscal year ending August 31, 2019;
(7) [(8)] not more than $750,000 [a specified
amount] may be used each year to support research related to air
quality as provided by Chapter 387;
(8) [(9)] not more than $200,000 may be used for a
health effects study[;
[(10) $500,000 is to be deposited in the state
treasury to the credit of the clean air account created under
Section 382.0622 to supplement funding for air quality planning
activities in affected counties];
(9) [(11)] at least $6 [$4] million but not more
than $8 [and up to four percent to a maximum of $7] million[,
whichever is greater,] is allocated to the commission for
administrative costs, including all direct and indirect costs
for administering the plan, costs for conducting outreach and
education activities, and costs attributable to the review or
approval of applications for marketable emissions reduction
credits;
(10) six [(12) at least two] percent may [and up to
five percent of the fund is to] be used by the commission for the
seaport and rail yard areas emissions reduction [drayage truck
incentive] program established under Subchapter D-1;
(11) [(13) not more than] five percent may be used
for the light-duty motor vehicle purchase or lease incentive
program established under Subchapter D;
(12) [(14)] not more than $216,000 is allocated to
the commission to contract with the Energy Systems Laboratory at
the Texas A&M Engineering Experiment Station annually for the
development and annual computation of creditable statewide
emissions reductions obtained through wind and other renewable
energy resources for the state implementation plan;
(13) not more than $500,000 may be used for studies
of or pilot programs for incentives for port authorities located
in nonattainment areas or affected counties to encourage cargo
movement that reduces emissions of nitrogen oxides and
particulate matter [(15) 1.5 percent of the money in the fund is
allocated for administrative costs incurred by the laboratory];
and
(14) [(16)] the balance is to be used by the
commission for the diesel emissions reduction incentive program
under Subchapter C as determined by the commission.
(b) [The commission may allocate unexpended money
designated for the clean fleet program under Chapter 392 to other
programs described under Subsection (a) after the commission
allocates money to recipients under the clean fleet program.
[(c) The commission may allocate unexpended money
designated for the Texas alternative fueling facilities program
under Chapter 393 to other programs described under Subsection
(a) after the commission allocates money to recipients under the
alternative fueling facilities program.
[(d) The commission may reallocate money designated for
the Texas natural gas vehicle grant program under Chapter 394 to
other programs described under Subsection (a) if:
[(1) the commission, in consultation with the
governor and the advisory board, determines that the use of the
money in the fund for that program will cause the state to be in
noncompliance with the state implementation plan to the extent
that federal action is likely; and
[(2) the commission finds that the reallocation of
some or all of the funding for the program would resolve the
noncompliance.
[(e) Under Subsection (d), the commission may not
reallocate more than the minimum amount of money necessary to
resolve the noncompliance.
[(e-1) Money allocated under Subsection (a) to a
particular program may be used for another program under the plan
as determined by the commission.
[(f)] Money in the fund may be used by the commission for
programs under Sections 386.051(b)(13), (b)(14), and (b-1) as
may be appropriated for those programs.
(c) [(g)] If the legislature does not specify amounts or
percentages from the total appropriation to the commission to be
allocated under Subsection (a) or (b) [(f)], the commission shall
determine the amounts of the total appropriation to be allocated
under each of those subsections, such that the total
appropriation is expended while maximizing emissions reductions.
(d) To supplement funding for air quality planning
activities in affected counties, $500,000 from the fund is to be
deposited annually in the state treasury to the credit of the
clean air account created under Section 382.0622.
(e) Money in the fund may be allocated for administrative
costs incurred by the Energy Systems Laboratory at the Texas A&M
Engineering Experiment Station as may be appropriated by the
legislature.
(f) To the extent that money is appropriated from the
fund for that purpose, not more than $2.5 million may be used by
the commission to conduct research and other activities
associated with making any necessary demonstrations to the
United States Environmental Protection Agency to account for the
impact of foreign emissions or an exceptional event.
(g) To the extent that money is appropriated from the
fund for that purpose, the commission may use that money to award
grants under the governmental alternative fuel fleet grant
program established under Chapter 395, except that the
commission may not use for that purpose more than three percent
of the balance of the fund as of September 1 of each state fiscal
year of the biennium for the governmental alternative fuel fleet
grant program in that fiscal year.
(h) Subject to the limitations outlined in this section
and any additional limitations placed on the use of the
appropriated funds, money allocated under this section to a
particular program may be used for another program under the plan
as determined by the commission, based on demand for grants for
eligible projects under particular programs after the commission
solicits projects to which to award grants according to the
initial allocation provisions of this section.
(h-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 390.001, Health and Safety Code, is
amended by amending Subdivision (1) and adding Subdivision (1-a)
to read as follows:
(1) "Commission" means the Texas Commission on
Environmental Quality.
(1-a) "Diesel exhaust" means one or more of the air
pollutants emitted from an engine by the combustion of diesel
fuel, including particulate matter, nitrogen oxides, volatile
organic compounds, air toxics, and carbon monoxide.
(h-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 390.002(b), Health and Safety Code, is
amended to read as follows:
(b) Projects that may be considered for a grant under the
program include:
(1) diesel oxidation catalysts for school buses
built before 1994;
(2) diesel particulate filters for school buses
built from 1994 to 1998;
(3) the purchase and use of emission-reducing
add-on equipment for school buses, including devices that reduce
crankcase emissions;
(4) the use of qualifying fuel; [and]
(5) other technologies that the commission finds
will bring about significant emissions reductions; and
(6) replacement of a pre-2007 model year school bus.
(i) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 390.004, Health and Safety Code, is
amended by adding Subsections (c) and (d) to read as follows:
(c) A school bus proposed for replacement must:
(1) be of model year 2006 or earlier;
(2) have been owned and operated by the applicant
for at least the two years before submission of the grant
application;
(3) be in good operational condition; and
(4) be currently used on a regular, daily route to
and from a school.
(d) A school bus proposed for purchase to replace a
pre-2007 model year school bus must be of the current model year
or the year before the current model year at the time of
submission of the grant application.
(i-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 390.005, Health and Safety Code, is
amended to read as follows:
Sec. 390.005. RESTRICTION ON USE OF GRANT. (a) A
recipient of a grant under this chapter shall use the grant to pay
the incremental costs of the project for which the grant is made,
which may include the reasonable and necessary expenses incurred
for the labor needed to install emissions-reducing equipment.
The recipient may not use the grant to pay the recipient's
administrative expenses.
(b) A school bus acquired to replace an existing school
bus must be purchased and the grant recipient must agree to own
and operate the school bus on a regular, daily route to and from a
school for at least five years after a start date established by
the commission, based on the date the commission accepts
documentation of the permanent destruction or permanent removal
of the school bus being replaced.
(c) A school bus replaced under this program must be
rendered permanently inoperable by crushing the bus, by making a
hole in the engine block and permanently destroying the frame of
the bus, or by another method approved by the commission, or be
permanently removed from operation in this state. The commission
shall establish criteria for ensuring the permanent destruction
or permanent removal of the engine or bus. The commission shall
enforce the destruction and removal requirements.
(d) In this section, "permanent removal" means the
permanent export of a school bus or the engine of a school bus to
a destination outside of the United States, Canada, or the United
Mexican States.
(i-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 390.006, Health and Safety Code, is
amended to read as follows:
Sec. 390.006. EXPIRATION. This chapter expires on the
last day of the state fiscal biennium during which the commission
publishes in the Texas Register the notice required by Section
382.037 [August 31, 2019].
(j) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 391.002(b), Health and Safety Code, is
amended to read as follows:
(b) Projects that may be considered for a grant under the
program include:
(1) advanced clean energy projects, as defined by
Section 382.003;
(2) new technology projects that reduce emissions
of regulated pollutants from stationary [point] sources;
(3) new technology projects that reduce emissions
from upstream and midstream oil and gas production, completions,
gathering, storage, processing, and transmission activities
through:
(A) the replacement, repower, or retrofit of
stationary compressor engines;
(B) the installation of systems to reduce or
eliminate the loss of gas, flaring of gas, or burning of gas using
other combustion control devices; or
(C) the installation of systems that reduce
flaring emissions and other site emissions by capturing waste
heat to generate electricity solely for on-site service; and
(4) [(3)] electricity storage projects related to
renewable energy, including projects to store electricity
produced from wind and solar generation that provide efficient
means of making the stored energy available during periods of
peak energy use.
(j-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 391.102(f), Health and Safety Code, is
amended to read as follows:
(f) In reviewing a grant application under this chapter
[coordinating interagency application review procedures], the
commission may [shall]:
(1) solicit review and comments from:
(A) the comptroller to assess:
(i) the financial stability of the
applicant;
(ii) the economic benefits and job
creation potential associated with the project; and
(iii) any other information related to
the duties of that office;
(B) the Public Utility Commission of Texas to
assess:
(i) the reliability of the proposed
technology;
(ii) the feasibility and
cost-effectiveness of electric transmission associated with the
project; and
(iii) any other information related to
the duties of that agency; and
(C) the Railroad Commission of Texas to
assess:
(i) the availability and cost of the fuel
involved with the project; and
(ii) any other information related to the
duties of that agency; and
(2) consider the comments received under
Subdivision (1) in the commission's grant award decision
process[; and
[(3) as part of the report required by Section
391.104, justify awards made to projects that have been
negatively reviewed by agencies under Subdivision (1)].
(j-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 391.104, Health and Safety Code, is
amended to read as follows:
Sec. 391.104. REPORTING REQUIREMENTS. The commission
[annually] shall include in the biennial plan report required by
Section 386.057(b) information [prepare a report] that
summarizes the applications received and grants awarded in the
preceding biennium [year]. Preparation of the information for
the report may [must] include the participation of any [the]
state agency [agencies] involved in the review of applications
under Section 391.102, if the commission determines
participation of the agency is needed.
(k) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 391.205(a), Health and Safety Code, is
amended to read as follows:
(a) Except as provided by Subsection (c), in awarding
grants under this chapter the commission shall give preference to
projects that:
(1) involve the transport, use, recovery for use, or
prevention of the loss of natural resources originating or
produced in this state;
(2) contain an energy efficiency component; [or]
(3) include the use of solar, wind, or other
renewable energy sources; or
(4) recover waste heat from the combustion of
natural resources and use the heat to generate electricity.
(k-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 391.304, Health and Safety Code, is
amended to read as follows:
Sec. 391.304. EXPIRATION. This chapter expires on the
last day of the state fiscal biennium during which the commission
publishes in the Texas Register the notice required by Section
382.037 [August 31, 2019].
(k-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 392.001(1), Health and Safety Code, is
amended to read as follows:
(1) "Alternative fuel" means a fuel other than
gasoline or diesel fuel, including electricity, compressed
natural gas, liquefied [liquified] natural gas, hydrogen,
propane, or a mixture of fuels containing at least 85 percent
methanol by volume.
(l) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Sections 392.002(b) and (c), Health and Safety
Code, are amended to read as follows:
(b) An entity that places 10 [20] or more qualifying
vehicles in service for use entirely in this state during a
calendar year is eligible to participate in the program.
(c) Notwithstanding Subsection (b), an entity that
submits a grant application for 10 [20] or more qualifying
vehicles is eligible to participate in the program even if the
commission denies approval for one or more of the vehicles during
the application process.
(l-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 392.003(a), Health and Safety Code, is
amended to read as follows:
(a) A vehicle is a qualifying vehicle that may be
considered for a grant under the program if during the
eligibility period established by the commission [calendar year]
the entity purchases a new on-road vehicle that:
(1) is certified to the appropriate current federal
emissions standards as determined by the commission;
(2) replaces a diesel-powered on-road vehicle of
the same weight classification and use; and
(3) is a hybrid vehicle or fueled by an alternative
fuel.
(l-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 392.004(d), Health and Safety Code, is
amended to read as follows:
(d) The commission shall minimize, to the maximum extent
possible, the amount of paperwork required for an application.
[An applicant may be required to submit a photograph or other
documentation of a vehicle identification number, registration
information, inspection information, tire condition, or engine
block identification only if the photograph or documentation is
requested by the commission after the commission has decided to
award a grant to the applicant under this chapter.]
(m) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 392.005, Health and Safety Code, is
amended by amending Subsections (c) and (i) and adding Subsection
(c-1) to read as follows:
(c) As a condition of receiving a grant, the qualifying
vehicle must be continuously owned, registered, and operated in
the state by the grant recipient until the earlier of the fifth
anniversary of the activity start date established by the
commission [the date of reimbursement of the grant-funded
expenses] or [until] the date the vehicle has been in operation
for 400,000 miles after the activity start date established by
the commission [of reimbursement]. Not less than 75 percent of
the annual use of the qualifying vehicle, either mileage or fuel
use as determined by the commission, must occur in the state.
(c-1) For purposes of Subsection (c), the commission
shall establish the activity start date based on the date the
commission accepts verification of the disposition of the
vehicle being replaced.
(i) The executive director may [shall] waive the
requirements of Subsection (b)(2)(A) on a finding of good cause,
which may include a waiver for short lapses in registration or
operation attributable to economic conditions, seasonal work, or
other circumstances.
(m-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 392.008, Health and Safety Code, is
amended to read as follows:
Sec. 392.008. EXPIRATION. This chapter expires on the
last day of the state fiscal biennium during which the commission
publishes in the Texas Register the notice required by Section
382.037 [August 31, 2017].
(m-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 393.001, Health and Safety Code, is
amended by amending Subdivision (1) and adding Subdivision (1-a)
to read as follows:
(1) "Alternative fuel" means a fuel other than
gasoline or diesel fuel, other than biodiesel fuel, including
electricity, compressed natural gas, liquefied [liquified]
natural gas, hydrogen, propane, or a mixture of fuels containing
at least 85 percent methanol by volume.
(1-a) "Clean transportation zone" means:
(A) counties containing or intersected by a
portion of an interstate highway connecting the cities of
Houston, San Antonio, Dallas, and Fort Worth;
(B) counties located within the area bounded
by the interstate highways described by Paragraph (A);
(C) counties containing or intersected by a
portion of:
(i) an interstate highway connecting San
Antonio to Corpus Christi or Laredo;
(ii) the most direct route using highways
in the state highway system connecting Corpus Christi and Laredo;
or
(iii) a highway corridor connecting
Corpus Christi and Houston;
(D) counties located within the area bounded
by the highways described by Paragraph (C);
(E) counties in this state all or part of which
are included in a nonattainment area designated under Section
107(d) of the federal Clean Air Act (42 U.S.C. Section 7407); and
(F) counties designated as affected counties
under Section 386.001.
(n) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 393.002, Health and Safety Code, is
amended to read as follows:
Sec. 393.002. PROGRAM. (a) The commission shall
establish and administer the Texas alternative fueling
facilities program to provide fueling facilities for alternative
fuel in the clean transportation zone [nonattainment areas].
Under the program, the commission shall provide a grant for each
eligible facility to offset the cost of those facilities.
(b) An entity that constructs or[,] reconstructs[, or
acquires] an alternative fueling facility is eligible to
participate in the program.
(c) To ensure that alternative fuel vehicles have access
to fuel and to build the foundation for a self-sustaining market
for alternative fuels in Texas, the commission shall provide for
strategically placed fueling facilities in the clean
transportation zone to enable an alternative fuel vehicle to
travel in those areas relying solely on the alternative fuel.
(d) The commission shall maintain a listing to be made
available to the public online of all vehicle fueling facilities
that have received grant funding, including location and hours of
operation.
(n-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 393.003, Health and Safety Code, is
amended by amending Subsections (a) and (b) and adding
Subsections (d) and (e) to read as follows:
(a) An entity operating in this state that constructs
or[,] reconstructs[, or acquires] a facility to [store,
compress, or] dispense alternative fuels may apply for and
receive a grant under the program.
(b) The commission may [adopt guidelines to] allow a
regional planning commission, council of governments, or similar
regional planning agency created under Chapter 391, Local
Government Code, or a private nonprofit organization to apply for
and receive a grant to improve the ability of the program to
achieve its goals.
(d) An application for a grant under the program must
include a certification that the applicant complies with laws,
rules, guidelines, and requirements applicable to taxation of
fuel provided by the applicant at each fueling facility owned or
operated by the applicant. The commission may terminate a grant
awarded under this section without further obligation to the
grant recipient if the commission determines that the recipient
did not comply with a law, rule, guideline, or requirement
described by this subsection. This subsection does not create a
cause of action to contest an application or award of a grant.
(e) The commission shall disburse grants under the
program through a competitive application selection process to
offset a portion of the eligible costs.
(n-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 393.004, Health and Safety Code, is
amended to read as follows:
Sec. 393.004. ELIGIBILITY OF FACILITIES FOR GRANTS.
(a) In addition to the requirements of this chapter, the
commission shall establish additional eligibility and
prioritization criteria as needed to implement the program [The
commission by rule shall establish criteria for prioritizing
facilities eligible to receive grants under this chapter. The
commission shall review and revise the criteria as appropriate].
(b) The prioritization criteria established under
Subsection (a) must provide that, for each grant round, the
commission may not award a grant to an entity that does not [To be
eligible for a grant under the program, the entity receiving the
grant must] agree to make the alternative fueling facility
accessible and available to the public [persons not associated
with the entity] at times designated by the grant contract until
each eligible entity that does agree to those terms has been
awarded a grant [agreement].
(c) The commission may not award more than one grant for
each facility.
(d) The commission may give preference to or otherwise
limit grant selections to:
(1) fueling facilities providing specific types of
alternative fuels;
(2) fueling facilities in a specified area or
location; and
(3) fueling facilities meeting other specified
prioritization criteria established by the commission.
(e) For fueling facilities to provide natural gas, the
commission shall give preference to:
(1) facilities providing both liquefied natural gas
and compressed natural gas at a single location;
(2) facilities located not more than one mile from
an interstate highway system;
(3) facilities located in the area in and between
the Houston, San Antonio, and Dallas-Fort Worth areas; and
(4) facilities located in the area in and between
the Corpus Christi, Laredo, and San Antonio areas [A recipient of
a grant under this chapter is not eligible to receive a second
grant under this chapter for the same facility].
(o) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 393.005, Health and Safety Code, is
amended to read as follows:
Sec. 393.005. RESTRICTION ON USE OF GRANT. (a) A
recipient of a grant under this chapter shall use the grant only
to pay the costs of the facility for which the grant is made. The
recipient may not use the grant to pay the recipient's:
(1) administrative expenses;
(2) expenses for the purchase of land or an interest
in land; or
(3) expenses for equipment or facility improvements
that are not directly related to the delivery, storage,
compression, or dispensing of the alternative fuel at the
facility.
(b) Each grant must be awarded using a contract that
requires the recipient to meet operational, maintenance, and
reporting requirements as specified by the commission.
(o-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 393.006, Health and Safety Code, is
amended to read as follows:
Sec. 393.006. AMOUNT OF GRANT. (a) Grants awarded under
this chapter for a facility to provide alternative fuels other
than natural gas may not exceed [For each eligible facility for
which a recipient is awarded a grant under the program, the
commission shall award the grant in an amount equal to] the
lesser of:
(1) 50 percent of the sum of the actual eligible
costs incurred by the grant recipient within deadlines
established by the commission [to construct, reconstruct, or
acquire the facility]; or
(2) $600,000.
(b) Grants awarded under this chapter for a facility to
provide natural gas may not exceed:
(1) $400,000 for a compressed natural gas facility;
(2) $400,000 for a liquefied natural gas facility;
or
(3) $600,000 for a facility providing both
liquefied and compressed natural gas.
(o-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 393.007, Health and Safety Code, is
amended to read as follows:
Sec. 393.007. EXPIRATION. This chapter expires on the
last day of the state fiscal biennium during which the commission
publishes in the Texas Register the notice required by Section
382.037 [August 31, 2018].
(p) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 394.001, Health and Safety Code, is
amended by amending Subdivisions (1), (4), (5), and (8) and
adding Subdivisions (1-a) and (7-a) to read as follows:
(1) "Certified" includes:
(A) new vehicle or new engine certification by
the United States Environmental Protection Agency; or
(B) certification or approval by the United
States Environmental Protection Agency of a system to convert a
vehicle or engine to operate on an alternative fuel and a
demonstration by the emissions data used to certify or approve
the vehicle or engine, if the commission determines the testing
used to obtain the emissions data is consistent with the testing
required for approval of an alternative fuel conversion system
for new and relatively new vehicles or engines under 40 C.F.R.
Part 85 ["Advisory board" means the Texas Emissions Reduction
Plan Advisory Board].
(1-a) "Clean transportation zone" has the meaning
assigned by Section 393.001.
(4) "Heavy-duty motor vehicle" means a motor
vehicle that [with]:
(A) has a gross vehicle weight rating of more
than 8,500 pounds; and
(B) is certified to or has an engine certified
to the United States Environmental Protection Agency's emissions
standards for heavy-duty vehicles or engines.
(5) "Incremental cost" has the meaning assigned by
Section 386.001 [means the difference between the manufacturer's
suggested retail price of a baseline vehicle, the documented
dealer price of a baseline vehicle, cost to lease or otherwise
commercially finance a baseline vehicle, cost to repower with a
baseline engine, or other appropriate baseline cost established
by the commission, and the actual cost of the natural gas vehicle
purchase, lease, or other commercial financing, or repower].
(7-a) "Natural gas engine" means an engine that
operates:
(A) solely on natural gas, including
compressed natural gas, liquefied natural gas, or liquefied
petroleum gas; or
(B) on a combination of diesel fuel and
natural gas, including compressed natural gas, liquefied natural
gas, or liquefied petroleum gas, and is capable of achieving at
least 60 percent displacement of diesel fuel with natural gas.
(8) "Natural gas vehicle" means a motor vehicle that
is powered by a natural gas engine [receives not less than 75
percent of its power from compressed or liquefied natural gas].
(p-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 394.003(a), Health and Safety Code, is
amended to read as follows:
(a) A vehicle is a qualifying vehicle that may be
considered for a grant under the program if during the
eligibility period established by the commission [calendar year]
the entity:
(1) purchased, leased, or otherwise commercially
financed the vehicle as a new on-road heavy-duty or medium-duty
motor vehicle that:
(A) is a natural gas vehicle;
(B) is certified to the appropriate current
federal emissions standards as determined by the commission; and
(C) replaces an on-road heavy-duty or
medium-duty motor vehicle of the same weight classification and
use; [and
[(D) is powered by an engine certified to:
[(i) emit not more than 0.2 grams of
nitrogen oxides per brake horsepower hour; or
[(ii) meet or exceed the United States
Environmental Protection Agency's Bin 5 standard for light-duty
engines when powering the vehicle;] or
(2) repowered the on-road motor vehicle to a natural
gas vehicle powered by a natural gas engine that[:
[(A)] is certified to the appropriate current
federal emissions standards as determined by the commission[;
and
[(B) is:
[(i) a heavy-duty engine that is
certified to emit not more than 0.2 grams of nitrogen oxides per
brake horsepower hour; or
[(ii) certified to meet or exceed the
United States Environmental Protection Agency's Bin 5 standard
for light-duty engines when powering the vehicle].
(p-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 394.005, Health and Safety Code, is
amended by amending Subsections (a), (b), (c), (f), (g), and (i)
and adding Subsection (c-1) to read as follows:
(a) The commission [by rule] shall establish criteria for
prioritizing qualifying vehicles eligible to receive grants
under this chapter. The commission shall review and revise the
criteria as appropriate [after consultation with the advisory
board].
(b) To be eligible for a grant under the program:
(1) the use of the qualifying vehicle must be
projected to result in a reduction in emissions of nitrogen
oxides of at least 25 percent as compared to the motor vehicle or
engine being replaced, based on:
(A) the baseline emission level set by the
commission under Subsection (g); and
(B) the certified emission rate of the new
vehicle; and
(2) the qualifying vehicle must:
(A) replace a heavy-duty or medium-duty motor
vehicle that:
(i) is an on-road vehicle that has been
owned, leased, or otherwise commercially financed and registered
and operated by the applicant in Texas for at least the two years
immediately preceding the submission of a grant application;
(ii) satisfies any minimum average
annual mileage or fuel usage requirements established by the
commission;
(iii) satisfies any minimum percentage
of annual usage requirements established by the commission; and
(iv) is in operating condition and has at
least two years of remaining useful life, as determined in
accordance with criteria established by the commission; [or]
(B) replace a heavy-duty or medium-duty motor
vehicle that:
(i) is owned by the applicant;
(ii) is an on-road vehicle that has been:
(a) owned, leased, or otherwise
commercially financed and operated in Texas as a fleet vehicle
for at least the two years immediately preceding the submission
of a grant application; and
(b) registered in a county located
in the clean transportation zone for at least the two years
immediately preceding the submission of a grant application; and
(iii) otherwise satisfies the mileage,
usage, and useful life requirements established under Paragraph
(A) as determined by documentation associated with the vehicle;
or
(C) be a heavy-duty or medium-duty motor
vehicle repowered with a natural gas engine that:
(i) is installed in an on-road vehicle
that has been owned, leased, or otherwise commercially financed
and registered and operated by the applicant in Texas for at
least the two years immediately preceding the submission of a
grant application;
(ii) satisfies any minimum average
annual mileage or fuel usage requirements established by the
commission;
(iii) satisfies any minimum percentage
of annual usage requirements established by the commission; and
(iv) is installed in an on-road vehicle
that, at the time of the vehicle's repowering, was in operating
condition and had at least two years of remaining useful life, as
determined in accordance with criteria established by the
commission.
(c) As a condition of receiving a grant, the qualifying
vehicle must be continuously owned, leased, or otherwise
commercially financed and registered and operated in the state by
the grant recipient until the earlier of the fourth anniversary
of the activity start date established by the commission [the
date of reimbursement of the grant-funded expenses] or [until]
the date the vehicle has been in operation for 400,000 miles
after the activity start date established by the commission [of
reimbursement]. Not less than 75 percent of the annual use of the
qualifying vehicle, either mileage or fuel use as determined by
the commission, must occur in the clean transportation zone[:
[(1) the counties any part of which are included in
the area described by Section 394.010(a); or
[(2) counties designated as nonattainment areas
within the meaning of Section 107(d) of the federal Clean Air Act
(42 U.S.C. Section 7407)].
(c-1) For purposes of Subsection (c), the commission
shall establish the activity start date based on the date the
commission accepts verification of the disposition of the
vehicle or engine.
(f) A heavy-duty or medium-duty motor vehicle replaced
under this program must be rendered permanently inoperable by
crushing the vehicle, by making a hole in the engine block and
permanently destroying the frame of the vehicle, or by another
method approved by the commission, or be [that] permanently
removed [removes the vehicle] from operation in this state. The
commission shall establish criteria for ensuring the permanent
destruction or permanent removal of the engine or vehicle. The
commission shall enforce the destruction and removal
requirements. For purposes of this subsection, "permanent
removal" means the permanent export of the vehicle or engine to a
destination outside of the United States, Canada, or the United
Mexican States.
(g) The commission shall establish baseline emission
levels for emissions of nitrogen oxides for on-road heavy-duty or
medium-duty motor vehicles being replaced or repowered by using
the emission certification for the engine or vehicle being
replaced. The commission may consider deterioration of the
emission performance of the engine of the vehicle being replaced
in establishing the baseline emission level. The commission may
consider and establish baseline emission rates for additional
pollutants of concern[, as determined by the commission . . . .
(i) The executive director may [shall] waive the
requirements of Subsection (b)(2)(A)(i) or (B)(ii) on a finding
of good cause, which may include short lapses in registration or
operation due to economic conditions, seasonal work, or other
circumstances.
(q) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 394.006, Health and Safety Code, is
amended to read as follows:
Sec. 394.006. RESTRICTION ON USE OF GRANT. A recipient
of a grant under this chapter shall use the grant to pay the
incremental costs of the replacement or vehicle repower for which
the grant is made, which may include a portion of the initial cost
of the natural gas vehicle or natural gas engine, including the
cost of the natural gas fuel system and installation [and the
reasonable and necessary expenses incurred for the labor needed
to install emissions-reducing equipment]. The recipient may not
use the grant to pay the recipient's administrative expenses.
(q-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 394.007(c), Health and Safety Code, is
amended to read as follows:
(c) A person may not receive a grant under this chapter
that, when combined with any other grant, tax credit, or other
governmental incentive, exceeds the incremental cost of the
vehicle or vehicle repower for which the grant is awarded. A
person shall return to the commission the amount of a grant
awarded under this chapter that, when combined with any other
grant, tax credit, or other governmental incentive, exceeds the
incremental cost of the vehicle or vehicle repower for which the
grant is awarded.
(q-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Sections 394.008(a) and (b), Health and Safety
Code, are amended to read as follows:
(a) The commission shall establish [adopt] procedures
for:
(1) awarding grants under this chapter to reimburse
eligible costs; [in the form of rebates; and]
(2) streamlining the grant application,
contracting, reimbursement, and reporting process for qualifying
natural gas vehicle purchases or repowers; and
(3) preapproving the award of grants to applicants
who propose to purchase and replace motor vehicles described by
Section 394.005(b)(2)(B).
(b) Procedures established [adopted] under this section
must:
(1) provide for the commission to compile and
regularly update a listing of potentially eligible [preapproved]
natural gas vehicles and natural gas engines that are certified
to the appropriate current federal emissions standards as
determined by the commission[:
[(A) powered by natural gas engines certified
to emit not more than 0.2 grams of nitrogen oxides per brake
horsepower hour; or
[(B) certified to the United States
Environmental Protection Agency's light-duty Bin 5 standard or
better];
(2) [if a federal standard for the calculation of
emissions reductions exists,] provide a method to calculate the
reduction in emissions of nitrogen oxides, volatile organic
compounds, carbon monoxide, particulate matter, and sulfur
compounds for each replacement or repowering;
(3) assign a standardized grant [rebate] amount for
each qualifying vehicle or engine repower under Section 394.007;
(4) allow for processing applications [rebates] on
an ongoing first-come, first-served basis;
(5) [provide for contracts between the commission
and participating dealers under Section 394.009;
[(6) allow grant recipients to assign their grant
funds to participating dealers to offset the purchase or lease
price;
[(7)] require grant applicants to identify natural
gas fueling stations that are available to fuel the qualifying
vehicle in the area of its use;
(6) [(8)] provide for payment not later than the
30th day after the date the request for reimbursement for an
approved grant is received;
(7) [(9)] provide for application submission and
application status checks using procedures established by the
commission, which may include application submission and status
checks to be made over the Internet; and
(8) [(10)] consolidate, simplify, and reduce the
administrative work for applicants and the commission associated
with grant application, contracting, reimbursement, and
reporting requirements.
(r) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Section 394.012, Health and Safety Code, is
amended to read as follows:
Sec. 394.012. EXPIRATION. This chapter expires on the
last day of the state fiscal biennium during which the commission
publishes in the Texas Register the notice required by Section
382.037 [August 31, 2017].
(r-1) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, Subtitle C, Title 5, Health and Safety Code, is
amended by adding Chapter 395 to read as follows:
CHAPTER 395. GOVERNMENTAL ALTERNATIVE FUEL FLEET GRANT PROGRAM
Sec. 395.001. DEFINITIONS. In this chapter:
(1) "Alternative fuel" means compressed natural
gas, liquefied natural gas, liquefied petroleum gas, hydrogen
fuel cells, or electricity, including electricity to power fully
electric motor vehicles and plug-in hybrid motor vehicles.
(2) "Commission" means the Texas Commission on
Environmental Quality.
(3) "Incremental cost" has the meaning assigned by
Section 386.001.
(4) "Motor vehicle" means a self-propelled device
designed for transporting persons or property on a public highway
that is required to be registered under Chapter 502,
Transportation Code.
(5) "Plug-in hybrid motor vehicle" has the meaning
assigned by Section 2158.001, Government Code.
(6) "Political subdivision" means a county,
municipality, school district, junior college district, river
authority, water district or other special district, or other
political subdivision created under the constitution or a
statute of this state.
(7) "Program" means the governmental alternative
fuel fleet grant program established under this chapter.
(8) "State agency" has the meaning assigned by
Section 2151.002, Government Code, and includes the commission.
Sec. 395.002. PROGRAM. (a) The commission shall
establish and administer a governmental alternative fuel fleet
grant program to assist an eligible applicant described by
Section 395.003 in purchasing or leasing new motor vehicles that
operate primarily on an alternative fuel.
(b) The program may provide a grant to an applicant
described by Section 395.003 to:
(1) purchase or lease a new motor vehicle described
by Section 395.004; or
(2) purchase, lease, or install refueling
infrastructure or equipment or procure refueling services as
described by Section 395.005 to store and dispense alternative
fuel needed for a motor vehicle described by Subdivision (1) of
this subsection.
Sec. 395.003. ELIGIBLE APPLICANTS. (a) A state agency
or political subdivision is eligible to apply for a grant under
the program if the entity operates a fleet of more than 15 motor
vehicles, excluding motor vehicles that are owned and operated by
a private company or other third party under a contract with the
entity.
(b) A mass transit or school transportation provider or
other public entity established to provide public or school
transportation services is eligible for a grant under the
program.
Sec. 395.004. MOTOR VEHICLE REQUIREMENTS. (a) A grant
recipient may purchase or lease with money from a grant under the
program a new motor vehicle that is originally manufactured to
operate using one or more alternative fuels or is converted to
operate using one or more alternative fuels before the first
retail sale of the vehicle, and that:
(1) has a dedicated system, dual-fuel system, or
bi-fuel system; and
(2) if the motor vehicle is a fully electric motor
vehicle or plug-in hybrid motor vehicle, has a United States
Environmental Protection Agency rating of at least 75 miles per
gallon equivalent or a 75-mile combined city and highway range.
(b) A grant recipient may not use money from a grant under
the program to replace a motor vehicle, transit bus, or school
bus that operates on an alternative fuel unless the replacement
vehicle produces fewer emissions and has greater fuel efficiency
than the vehicle being replaced.
Sec. 395.005. REFUELING INFRASTRUCTURE, EQUIPMENT, AND
SERVICES. A grant recipient may purchase, lease, or install
refueling infrastructure or equipment or procure refueling
services with money from a grant under the program if:
(1) the purchase, lease, installation, or
procurement is made in conjunction with the purchase or lease of
a motor vehicle as described by Section 395.004 or the conversion
of a motor vehicle to operate primarily on an alternative fuel;
(2) the grant recipient demonstrates that a
refueling station that meets the needs of the recipient is not
available within five miles of the location at which the
recipient's vehicles are stored or primarily used; and
(3) for the purchase or installation of refueling
infrastructure or equipment, the infrastructure or equipment
will be owned and operated by the grant recipient, and for the
lease of refueling infrastructure or equipment or the
procurement of refueling services, a third-party service
provider engaged by the grant recipient will provide the
infrastructure, equipment, or services.
Sec. 395.006. ELIGIBLE COSTS. (a) A motor vehicle lease
agreement paid for with money from a grant under the program must
have a term of at least three years.
(b) Refueling infrastructure or equipment purchased or
installed with money from a grant under the program must be used
specifically to store or dispense alternative fuel, as
determined by the commission.
(c) A lease of or service agreement for refueling
infrastructure, equipment, or services paid for with money from a
grant under the program must have a term of at least three years.
Sec. 395.007. GRANT AMOUNTS. (a) The commission may
establish standardized grant amounts based on the incremental
costs associated with the purchase or lease of different
categories of motor vehicles, including the type of fuel used,
vehicle class, and other categories the commission considers
appropriate.
(b) In determining the incremental costs and setting the
standardized grant amounts, the commission may consider the
difference in cost between a new motor vehicle operated using
conventional gasoline or diesel fuel and a new motor vehicle
operated using alternative fuel.
(c) The amount of a grant for the purchase or lease of a
motor vehicle may not exceed the amount of the incremental cost
of the purchase or lease.
(d) The commission may establish grant amounts to
reimburse the full cost of the purchase, lease, installation, or
procurement of refueling infrastructure, equipment, or services
or may establish criteria for reimbursing a percentage of the
cost.
(e) A grant under the program may be combined with
funding from other sources, including other grant programs,
except that a grant may not be combined with other funding or
grants from the Texas emissions reduction plan. When combined
with other funding sources, a grant may not exceed the total cost
to the grant recipient.
(f) In providing a grant for the lease of a motor vehicle
under this chapter, the commission shall establish criteria:
(1) to offset incremental costs through an up-front
payment to lower the cost basis of the lease; or
(2) if determined appropriate by the commission, to
provide for reimbursement of lease payments over no more than the
period of availability of the contracted funds under applicable
state law and regulation, which may be less than the required
three-year lease term.
(g) In providing a grant for the lease of refueling
infrastructure, equipment, or services, the commission shall
establish criteria:
(1) to offset incremental costs through an up-front
payment to lower the cost basis of the lease; or
(2) if determined appropriate by the commission, to
provide for reimbursement of lease payments over no more than the
period of availability of the contracted funds under applicable
state law and regulation, which may be less than the required
three-year lease term.
(h) Notwithstanding Subsection (d), the commission is
not obligated to fund the full cost of the purchase, lease,
installation, or procurement of refueling infrastructure,
equipment, or services if those costs cannot be incurred and
reimbursed over the period of availability of the funds under
applicable state law and regulation.
Sec. 395.008. AVAILABILITY OF EMISSIONS REDUCTION
CREDITS. (a) A project that is funded from a grant under the
program and that would generate marketable emissions reduction
credits under a state or federal emissions reduction credit
averaging, banking, or trading program is not eligible for
funding under the program unless:
(1) the project includes the transfer of the
credits, or the reductions that would otherwise be marketable
credits, to the commission and, if applicable, the state
implementation plan; and
(2) the credits or reductions, as applicable, are
permanently retired.
(b) An emissions reduction generated by a purchase or
lease under this chapter may be used to demonstrate conformity
with the state implementation plan.
Sec. 395.009. USE OF GRANT MONEY. A grant recipient when
using money from a grant under the program shall prioritize:
(1) the purchase or lease of new motor vehicles,
including new motor vehicles that are converted to operate on an
alternative fuel, when replacing vehicles or adding vehicles to
the fleet;
(2) the purchase of new motor vehicles, including
new motor vehicles that are converted to operate on an
alternative fuel, to replace vehicles that have the highest total
mileage and do not use an alternative fuel; and
(3) to the extent feasible, obtaining, whether by
purchase, purchase and conversion, or lease, motor vehicles that
use compressed natural gas, liquefied natural gas, or liquefied
petroleum gas.
Sec. 395.010. GRANT PROCEDURES AND CRITERIA. (a) The
commission shall establish specific criteria and procedures in
order to implement and administer the program, including the
creation and provision of application forms and guidance on the
application process.
(b) The commission shall award a grant through a contract
between the commission and the grant recipient.
(c) The commission shall provide an online application
process for the submission of all required application
documents.
(d) The commission may limit funding for a particular
period according to priorities established by the commission,
including limiting the availability of grants to specific
entities, for certain types of vehicles and infrastructure, or to
certain geographic areas to ensure equitable distribution of
grant funds across the state.
(e) In awarding grants under the program, the commission
shall prioritize projects in the following order:
(1) projects that are proposed by a state agency;
(2) projects that are in or near a nonattainment
area;
(3) projects that are in an affected county, as that
term is defined by Section 386.001; and
(4) projects that will produce the greatest
emissions reductions.
(f) In addition to the requirements under Subsection (e),
in awarding grants under the program, the commission shall
consider:
(1) the total amount of the emissions reduction that
would be achieved from the project;
(2) the type and number of vehicles purchased or
leased;
(3) the location of the fleet and the refueling
infrastructure or equipment;
(4) the number of vehicles served and the rate at
which vehicles are served by the refueling infrastructure or
equipment;
(5) the amount of any matching funds committed by
the applicant; and
(6) the schedule for project completion.
(g) The commission may not award more than 10 percent of
the total amount awarded under the program in any fiscal year for
purchasing, leasing, installing, or procuring refueling
infrastructure, equipment, or services.
Sec. 395.011. FUNDING. The legislature may appropriate
money to the commission from the Texas emissions reduction plan
fund established under Section 386.251 to administer the
program.
Sec. 395.012. ADMINISTRATIVE COSTS. In each fiscal
year, the commission may use up to 1.5 percent of the total amount
of money allocated to the program in that fiscal year, but not
more than $1 million, for the administrative costs of the
program.
Sec. 395.013. RULES. The commission may adopt rules as
necessary to implement this chapter.
Sec. 395.014. REPORT REQUIRED. On or before November 1
of each even-numbered year, the commission shall submit to the
governor, lieutenant governor, and members of the legislature a
report that includes the following information regarding awards
made under the program during the preceding state fiscal
biennium:
(1) the number of grants awarded under the program;
(2) the recipient of each grant awarded;
(3) the number of vehicles replaced;
(4) the number, type, and location of any refueling
infrastructure, equipment, or services funded under the program;
(5) the total emissions reductions achieved under
the program; and
(6) any other information the commission considers
relevant.
Sec. 395.015. EXPIRATION. This chapter expires on the
last day of the state fiscal biennium during which the commission
publishes in the Texas Register the notice required by Section
382.037.
(r-2) Effective on the date that the Texas Emissions
Reduction Plan Advisory Board is abolished under Subsection (a)
of this section, the following provisions of the Health and
Safety Code are repealed:
. . .
(4) Section 394.009;
(5) Section 394.010; and
(6) Section 394.011.
(s) This subsection takes effect on the date that the
Texas Emissions Reduction Plan Advisory Board is abolished under
Subsection (a) of this section. As soon as practicable after the
effective date of this subsection, the Texas Commission on
Environmental Quality shall implement the online application
process required by Section 395.010(c), Health and Safety Code,
as added by this section. Prior to the implementation of the
online application process, the commission may accept
applications for a grant under Chapter 395, Health and Safety
Code, as added by this section, in any manner provided by the
commission.
(s-1) This subsection takes effect on the date that the
Texas Emissions Reduction Plan Advisory Board is abolished under
Subsection (a) of this section. The changes in law made by this
section apply only to a Texas emissions reduction plan grant
awarded on or after the effective date of this section. A grant
awarded before the effective date of this section is governed by
the law in effect on the date the award was made, and the former
law is continued in effect for that purpose.
(t) This section takes effect August 30, 2017.
Explanation: The addition of text is necessary to ensure
that the Texas Commission on Environmental Quality is able to
carry out the commission's duties, responsibilities, and
functions in the implementation of the Texas Emissions Reduction
Plan after the abolishment of the Texas Emissions Reduction Plan
Advisory Board.
(2) Senate Rule 12.03(1) is suspended to permit the
committee to change, alter, or amend text which is not in
disagreement in proposed SECTION 18 of the bill, the effective
date provision of the bill, to read as follows:
SECTION 18. Except as otherwise provided by this Act,
this Act takes effect September 1, 2017.
Explanation: The change in the effective date provision
is necessary to provide an exception for provisions of the bill
that take effect on a date other than September 1, 2017.
_______________________________
President of the Senate
I hereby certify that the
above Resolution was adopted by
the Senate on May 28, 2017, by the
following vote: Yeas 28, Nays 3.
_______________________________
Secretary of the Senate