H.B. No. 3745
AN ACT
relating to the Texas emissions reduction plan fund and account.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. TEXAS EMISSIONS REDUCTION PLAN FUND AND ACCOUNT
SECTION 1.01. Section 386.001, Health and Safety Code, is
amended by adding Subdivision (1) and amending Subdivision (5) to
read as follows:
(1) "Account" means the Texas emissions reduction plan
account established under Section 386.251.
(5) "Fund" means the Texas emissions reduction plan
fund established under Section 386.250.
SECTION 1.02. Section 386.057(c), Health and Safety Code,
is amended to read as follows:
(c) For projects funded as part of the infrastructure
program under Subchapter C, the report must:
(1) describe and evaluate:
(A) the infrastructure facilities funded under
that subchapter;
(B) the degree to which the funded facilities are
supporting on-road or non-road diesel projects;
(C) the amount of fuel or electricity dispensed
for each facility; and
(D) associated emissions reductions and
cost-effectiveness; and
(2) make a finding regarding the need for additional
appropriations from the account [fund] to improve the ability of
the program to achieve its goals.
SECTION 1.03. The heading to Subchapter F, Chapter 386,
Health and Safety Code, is amended to read as follows:
SUBCHAPTER F. TEXAS EMISSIONS REDUCTION PLAN FUND AND ACCOUNT
SECTION 1.04. Subchapter F, Chapter 386, Health and Safety
Code, is amended by adding Section 386.250 to read as follows:
Sec. 386.250. TEXAS EMISSIONS REDUCTION PLAN FUND. (a) The
Texas emissions reduction plan fund is established as a trust fund
outside the state treasury to be held by the comptroller and
administered by the commission as trustee. Money in the fund may be
spent without legislative appropriation and may be used only as
provided by this chapter. Interest and other earnings on the
balance of the fund shall be credited to the fund.
(b) The fund consists of:
(1) the amount of money deposited to the credit of the
fund under:
(A) Section 386.056;
(B) Sections 151.0515 and 152.0215, Tax Code; and
(C) Sections 501.138, 502.358, and 548.5055,
Transportation Code; and
(2) grant money recaptured under Section 386.111(d)
and Chapter 391.
(c) Not later than the 30th day after the last day of each
state fiscal biennium, the commission shall transfer the
unencumbered balance of the fund remaining on the last day of the
state fiscal biennium to the credit of the Texas emissions
reduction plan account.
SECTION 1.05. Section 386.251, Health and Safety Code, is
amended to read as follows:
Sec. 386.251. TEXAS EMISSIONS REDUCTION PLAN ACCOUNT
[FUND]. (a) The Texas emissions reduction plan account [fund] is
an account in the state treasury.
(b) The account [fund] is administered by the commission for
the benefit of the plan established under this chapter. The account
[fund] is exempt from the application of Section 403.095,
Government Code. Interest earned on the account [fund] shall be
credited to the account [fund].
(c) The account [fund] consists of its accumulated balance
and [:
[(1)] the amount of money transferred to the account
under Section 386.250(c) [deposited to the credit of the fund
under:
[(A) Section 386.056;
[(B) Sections 151.0515 and 152.0215, Tax Code;
and
[(C) Sections 501.138, 502.358, and 548.5055,
Transportation Code; and
[(2) grant money recaptured under Section 386.111(d)
and Chapter 391].
SECTION 1.06. The heading to Section 386.252, Health and
Safety Code, is amended to read as follows:
Sec. 386.252. USE OF FUND AND ACCOUNT.
SECTION 1.07. Sections 386.252(a), (b), (e), (f), (g), and
(h), Health and Safety Code, are amended to read as follows:
(a) Money in the fund and account 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 from the fund and account [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 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 $16 [$8]
million may be used by [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 may be used by [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) 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) Money in the fund and account 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].
(e) Money in the fund and account may be used [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) Not [To the extent that money is appropriated from the
fund for that purpose, not] more than $2.5 million from the fund and
account 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) The [To the extent that money is appropriated from the
fund for that purpose, the] commission may use [that] money from the
fund and account 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.
SECTION 1.08. Section 395.011, Health and Safety Code, is
amended to read as follows:
Sec. 395.011. FUNDING. The legislature may appropriate
money to the commission from the Texas emissions reduction plan
account [fund] established under Section 386.251 to administer the
program.
SECTION 1.09. The amendments to Section 386.251, Health and
Safety Code, made by this article do not affect the balance of the
Texas Emissions Reduction Plan Account No. 5071 remaining on
September 1, 2021.
SECTION 1.10. This article takes effect September 1, 2021.
ARTICLE 2. FUNDING SOURCES
SECTION 2.01. Section 151.0515(d), Tax Code, is amended to
read as follows:
(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 2.02. 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 2.03. Section 501.138(b-3), Transportation Code,
is amended to read as follows:
(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 2.04. 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 2.05. The heading to Section 548.5055,
Transportation Code, is amended to read as follows:
Sec. 548.5055. TEXAS EMISSIONS [EMISSION] REDUCTION PLAN
FEE.
SECTION 2.06. 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 2.07. Sections 8(a-2) and (b), Chapter 755 (S.B.
1731), Acts of the 85th Legislature, Regular Session, 2017, are
repealed.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. Except as otherwise provided by this Act,
this Act takes effect August 30, 2019.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3745 was passed by the House on May 2,
2019, by the following vote: Yeas 139, Nays 0, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 3745 on May 23, 2019, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 3745 on May 26, 2019, by the following vote: Yeas 145,
Nays 1, 1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3745 was passed by the Senate, with
amendments, on May 22, 2019, by the following vote: Yeas 27, Nays
4; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
3745 on May 26, 2019, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor