86R1164 JRR-F
By: Reynolds H.B. No. 2581
A BILL TO BE ENTITLED
AN ACT
relating to the administration of and funding for the Texas
emissions reduction plan; reducing a surcharge.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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);
(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);
(10) the Texas clean fleet program established under
Chapter 392;
(11) the Texas alternative fueling facilities program
established under Chapter 393;
(12) the Texas natural gas vehicle grant 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;
(15) the seaport and rail yard areas emissions
reduction 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; and
(19) the energy efficiency loan guarantee program
established under Section 388.013.
SECTION 2. Section 386.252(a), Health and Safety Code, is
amended to read as follows:
(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
appropriated to the commission to be used for the programs under
Section 386.051(b) shall initially be allocated as follows:
(1) four percent may be used for the clean school bus
program under Chapter 390;
(2) 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 be used for the Texas 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 percent may be used for the Texas natural gas
vehicle grant program under Chapter 394;
(6) not more than $6 million 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) not more than $750,000 may be used each year to
support research related to air quality as provided by Chapter 387;
(8) not more than $200,000 may be used for a health
effects study;
(9) at least $6 million but not more than $8 million 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 percent may be used by the commission for the
seaport and rail yard areas emissions reduction program established
under Subchapter D-1;
(11) five percent may be used for the light-duty motor
vehicle purchase or lease incentive program established under
Subchapter D;
(12) 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; [and]
(14) at least $1 million and not more than $5 million
shall be allocated for the energy efficiency loan guarantee program
established under Section 388.013; and
(15) the balance is to be used by the commission for
the diesel emissions reduction incentive program under Subchapter C
as determined by the commission.
SECTION 3. Section 388.005(c), Health and Safety Code, is
amended to read as follows:
(c) Each political subdivision, institution of higher
education, or state agency shall establish a goal to reduce the
electric consumption by the entity by at least five percent each
state fiscal year for seven [10] years, beginning September 1, 2019
[2011].
SECTION 4. Chapter 388, Health and Safety Code, is amended
by adding Section 388.013 to read as follows:
Sec. 388.013. ENERGY EFFICIENCY LOAN GUARANTEE PROGRAM.
(a) The comptroller and the State Energy Conservation Office by
rule shall establish and administer a program that issues or
guarantees loans to be used for improvements that increase the
energy efficiency of residences that are not newly constructed.
(b) Rules adopted under this section must establish
eligibility requirements for receipt of a loan issued or guaranteed
under this section, including emissions reduction
cost-effectiveness criteria.
(c) The State Energy Conservation Office annually shall
submit to the commission and the laboratory a report that:
(1) evaluates the effectiveness of the program
established under this section; and
(2) quantifies energy savings and emissions
reductions as a result of this program for consideration in the
state implementation plan for emissions reduction credit.
SECTION 5. Section 389.002, Health and Safety Code, is
amended to read as follows:
Sec. 389.002. USE OF CERTAIN INFORMATION FOR FEDERAL
RECOGNITION OF EMISSIONS REDUCTIONS. The commission, using
information derived from the reports to the commission under
Sections 386.205, 388.003(e), [and] 388.006, and 388.013, shall
take all appropriate and necessary actions so that emissions
reductions achieved by means of activities under Chapters 386 and
388 are credited by the United States Environmental Protection
Agency to the appropriate emissions reduction objectives in the
state implementation plan.
SECTION 6. Sections 151.0515(b) and (d), Tax Code, are
amended to read as follows:
(b) In each county in this state, a surcharge is imposed on
the retail sale, lease, or rental of new or used equipment in an
amount equal to one [1.5] percent of the sale price or the lease or
rental amount.
(d) This section expires on the last day of the state fiscal
biennium during which the Texas Commission on Environmental Quality
publishes in the Texas Register the notice required by Section
382.037, Health and Safety Code [August 31, 2019].
SECTION 7. Section 152.0215(c), Tax Code, is amended to
read as follows:
(c) This section expires on the last day of the state fiscal
biennium during which the Texas Commission on Environmental Quality
publishes in the Texas Register the notice required by Section
382.037, Health and Safety Code [August 31, 2019].
SECTION 8. Sections 501.138(b-1), (b-2), and (b-3),
Transportation Code, are amended to read as follows:
(b-1) Fees collected under Subsection (b) to be sent to the
comptroller shall be deposited to the credit of the Texas Mobility
Fund[, except that $5 of each fee imposed under Subsection (a)(1)
and deposited on or after September 1, 2008, and before September 1,
2015, shall be deposited to the credit of the Texas emissions
reduction plan fund].
(b-2) The comptroller shall establish a record of the amount
of the fees deposited to the credit of the Texas Mobility Fund under
Subsection (b-1) that are attributable to applicants described by
Subsection (b)(3)(A). On or before the fifth workday of each
month, the Texas Department of Transportation shall remit to the
comptroller for deposit to the credit of the Texas emissions
reduction plan fund an amount of money equal to the amount of those
[the] fees deposited [by the comptroller to the credit of the Texas
Mobility Fund under Subsection (b-1)] in the preceding month. The
Texas Department of Transportation shall use for remittance to the
comptroller as required by this subsection money in the state
highway fund that is not required to be used for a purpose specified
by Section 7-a, Article VIII, Texas Constitution, and may not use
for that remittance money received by this state under the
congestion mitigation and air quality improvement program
established under 23 U.S.C. Section 149.
(b-3) This subsection and Subsection (b-2) expire on the
last day of the state fiscal biennium during which the Texas
Commission on Environmental Quality publishes in the Texas Register
the notice required by Section 382.037, Health and Safety Code
[August 31, 2019].
SECTION 9. Section 502.358(c), Transportation Code, is
amended to read as follows:
(c) This section expires on the last day of the state fiscal
biennium during which the Texas Commission on Environmental Quality
publishes in the Texas Register the notice required by Section
382.037, Health and Safety Code [August 31, 2019].
SECTION 10. The heading to Section 548.5055, Transportation
Code, is amended to read as follows:
Sec. 548.5055. TEXAS EMISSIONS [EMISSION] REDUCTION PLAN
FEE.
SECTION 11. Sections 548.5055(b) and (c), Transportation
Code, are amended to read as follows:
(b) The department shall remit fees collected under this
section to the comptroller at the time and in the manner prescribed
by the comptroller for deposit in the Texas emissions [emission]
reduction plan fund.
(c) This section expires on the last day of the state fiscal
biennium during which the conservation commission publishes in the
Texas Register the notice required by Section 382.037, Health and
Safety Code [August 31, 2019].
SECTION 12. Sections 8(a-2) and (b), Chapter 755 (S.B.
1731), Acts of the 85th Legislature, Regular Session, 2017, are
repealed.
SECTION 13. The Texas Department of Transportation is not
required to comply with Section 501.138(b-2), Transportation Code,
as amended by this Act, until October 1, 2019. Before October 1,
2019, the Texas Department of Transportation shall comply with
Section 501.138(b-2), Transportation Code, as it existed on the
effective date of this Act, and the former law is continued in
effect for that purpose.
SECTION 14. This Act takes effect August 30, 2019.