Texas 2019 - 86th Regular

Texas Senate Bill SB2154 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R7468 JRR-D
2	2	By: Zaffirini S.B. No. 2154
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the administration of certain programs under the Texas
8	8	emissions reduction plan.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 386.051(b), Health and Safety Code, is
11	11	amended to read as follows:
12	12	(b) Under the plan, the commission and the comptroller shall
13	13	provide grants or other funding for:
14	14	(1) the diesel emissions reduction incentive program
15	15	established under Subchapter C, including for infrastructure
16	16	projects established under that subchapter;
17	17	(2) the motor vehicle purchase or lease incentive
18	18	program established under Subchapter D;
19	19	(3) the air quality research support program
20	20	established under Chapter 387;
21	21	(4) the clean school bus program established under
22	22	Chapter 390;
23	23	(5) the new technology implementation grant program
24	24	established under Chapter 391;
25	25	(6) the regional air monitoring program established
26	26	under Section 386.252(a);
27	27	(7) a health effects study as provided by Section
28	28	386.252(a);
29	29	(8) air quality planning activities as provided by
30	30	Section 386.252(d);
31	31	(9) a contract with the Energy Systems Laboratory at
32	32	the Texas A&M Engineering Experiment Station for computation of
33	33	creditable statewide emissions reductions as provided by Section
34	34	386.252(a);
35	35	(10) the Texas clean fleet program established under
36	36	Chapter 392;
37	37	(11) the Texas alternative fueling facilities program
38	38	established under Chapter 393;
39	39	(12) the Texas natural gas vehicle grant program
40	40	established under Chapter 394;
41	41	(13) other programs the commission may develop that
42	42	lead to reduced emissions of nitrogen oxides, particulate matter,
43	43	or volatile organic compounds in a nonattainment area or affected
44	44	county;
45	45	(14) other programs the commission may develop that
46	46	support congestion mitigation to reduce mobile source ozone
47	47	precursor emissions;
48	48	(15) the seaport and rail yard areas emissions
49	49	reduction program established under Subchapter D-1;
50	50	(16) conducting research and other activities
51	51	associated with making any necessary demonstrations to the United
52	52	States Environmental Protection Agency to account for the impact of
53	53	foreign emissions or an exceptional event;
54	54	(17) studies of or pilot programs for incentives for
55	55	port authorities located in nonattainment areas or affected
56	56	counties as provided by Section 386.252(a); [and]
57	57	(18) the governmental alternative fuel fleet grant
58	58	program established under Chapter 395; and
59	59	(19) the Texas non-road natural gas grant program
60	60	established under Chapter 394A.
61	61	SECTION 2. Section 386.252(a), Health and Safety Code, is
62	62	amended to read as follows:
63	63	(a) Money in the fund may be used only to implement and
64	64	administer programs established under the plan. Subject to the
65	65	reallocation of funds by the commission under Subsection (h), money
66	66	appropriated to the commission to be used for the programs under
67	67	Section 386.051(b) shall initially be allocated as follows:
68	68	(1) four percent may be used for the clean school bus
69	69	program under Chapter 390;
70	70	(2) three percent may be used for the new technology
71	71	implementation grant program under Chapter 391, from which at least
72	72	$1 million will be set aside for electricity storage projects
73	73	related to renewable energy;
74	74	(3) five percent may be used for the Texas clean fleet
75	75	program under Chapter 392;
76	76	(4) not more than $3 million may be used by the
77	77	commission to fund a regional air monitoring program in commission
78	78	Regions 3 and 4 to be implemented under the commission's oversight,
79	79	including direction regarding the type, number, location, and
80	80	operation of, and data validation practices for, monitors funded by
81	81	the program through a regional nonprofit entity located in North
82	82	Texas having representation from counties, municipalities, higher
83	83	education institutions, and private sector interests across the
84	84	area;
85	85	(5) 10 percent may be used for the Texas natural gas
86	86	vehicle grant program under Chapter 394 and the Texas non-road
87	87	natural gas grant program established under Chapter 394A;
88	88	(6) not more than $6 million may be used for the Texas
89	89	alternative fueling facilities program under Chapter 393, of which
90	90	a specified amount may be used for fueling stations to provide
91	91	natural gas fuel, except that money may not be allocated for the
92	92	Texas alternative fueling facilities program for the state fiscal
93	93	year ending August 31, 2019;
94	94	(7) not more than $750,000 may be used each year to
95	95	support research related to air quality as provided by Chapter 387;
96	96	(8) not more than $200,000 may be used for a health
97	97	effects study;
98	98	(9) at least $6 million but not more than $8 million is
99	99	allocated to the commission for administrative costs, including all
100	100	direct and indirect costs for administering the plan, costs for
101	101	conducting outreach and education activities, and costs
102	102	attributable to the review or approval of applications for
103	103	marketable emissions reduction credits;
104	104	(10) six percent may be used by the commission for the
105	105	seaport and rail yard areas emissions reduction program established
106	106	under Subchapter D-1;
107	107	(11) five percent may be used for the light-duty motor
108	108	vehicle purchase or lease incentive program established under
109	109	Subchapter D;
110	110	(12) not more than $216,000 is allocated to the
111	111	commission to contract with the Energy Systems Laboratory at the
112	112	Texas A&M Engineering Experiment Station annually for the
113	113	development and annual computation of creditable statewide
114	114	emissions reductions obtained through wind and other renewable
115	115	energy resources for the state implementation plan;
116	116	(13) not more than $500,000 may be used for studies of
117	117	or pilot programs for incentives for port authorities located in
118	118	nonattainment areas or affected counties to encourage cargo
119	119	movement that reduces emissions of nitrogen oxides and particulate
120	120	matter; and
121	121	(14) the balance is to be used by the commission for
122	122	the diesel emissions reduction incentive program under Subchapter C
123	123	as determined by the commission.
124	124	SECTION 3. Section 393.001(1-a), Health and Safety Code, is
125	125	amended to read as follows:
126	126	(1-a) "Clean transportation zone" means:
127	127	(A) counties containing or intersected by a
128	128	portion of an interstate highway connecting the cities of Houston,
129	129	San Antonio, Dallas, and Fort Worth;
130	130	(B) counties located within the area bounded by
131	131	the interstate highways described by Paragraph (A);
132	132	(C) counties containing or intersected by a
133	133	portion of:
134	134	(i) an interstate highway connecting San
135	135	Antonio to Corpus Christi or Laredo;
136	136	(ii) the most direct route using highways
137	137	in the state highway system connecting Corpus Christi and Laredo;
138	138	or
139	139	(iii) a highway corridor connecting Corpus
140	140	Christi and Houston;
141	141	(D) counties located within the area bounded by
142	142	the highways described by Paragraph (C);
143	143	(E) counties containing or intersected by a
144	144	portion of:
145	145	(i) a United States highway connecting
146	146	Houston and Texarkana; or
147	147	(ii) a highway corridor connecting Houston
148	148	and Texarkana;
149	149	(F) counties containing or intersected by a
150	150	portion of an interstate highway connecting the cities of Dallas
151	151	and Texarkana;
152	152	(G) counties in this state all or part of which
153	153	are included in a nonattainment area designated under Section
154	154	107(d) of the federal Clean Air Act (42 U.S.C. Section 7407); and
155	155	(H) [(F)] counties designated as affected
156	156	counties under Section 386.001.
157	157	SECTION 4. Section 394.003(a), Health and Safety Code, is
158	158	amended to read as follows:
159	159	(a) A vehicle is a qualifying vehicle that may be considered
160	160	for a grant under the program if during the eligibility period
161	161	established by the commission the entity:
162	162	(1) purchased, leased, or otherwise commercially
163	163	financed the vehicle as an [a new] on-road heavy-duty or
164	164	medium-duty motor vehicle that:
165	165	(A) is a natural gas vehicle;
166	166	(B) is certified to the appropriate current
167	167	federal emissions standards as determined by the commission; and
168	168	(C) replaces an on-road heavy-duty or
169	169	medium-duty motor vehicle of the same weight classification and
170	170	use; or
171	171	(2) repowered the on-road motor vehicle to a natural
172	172	gas vehicle powered by a natural gas engine that is certified to the
173	173	appropriate current federal emissions standards as determined by
174	174	the commission.
175	175	SECTION 5. Section 394.005(b), Health and Safety Code, is
176	176	amended to read as follows:
177	177	(b) To be eligible for a grant under the program:
178	178	(1) the use of the qualifying vehicle must be
179	179	projected to result in a reduction in emissions of nitrogen oxides
180	180	of at least 25 percent as compared to the motor vehicle or engine
181	181	being replaced, based on:
182	182	(A) the baseline emission level set by the
183	183	commission under Subsection (g); and
184	184	(B) the certified emission rate of the qualifying
185	185	[new] vehicle; [and]
186	186	(2) the qualifying vehicle must:
187	187	(A) replace a heavy-duty or medium-duty motor
188	188	vehicle that:
189	189	(i) is an on-road vehicle that has been
190	190	owned, leased, or otherwise commercially financed and registered
191	191	and operated by the applicant in Texas for at least the two years
192	192	immediately preceding the submission of a grant application;
193	193	(ii) satisfies any minimum average annual
194	194	mileage or fuel usage requirements established by the commission;
195	195	(iii) satisfies any minimum percentage of
196	196	annual usage requirements established by the commission; and
197	197	(iv) is in operating condition and has at
198	198	least two years of remaining useful life, as determined in
199	199	accordance with criteria established by the commission;
200	200	(B) replace a heavy-duty or medium-duty motor
201	201	vehicle that:
202	202	(i) is owned by the applicant;
203	203	(ii) is an on-road vehicle that has been:
204	204	(a) owned, leased, or otherwise
205	205	commercially financed and operated in Texas as a fleet vehicle for
206	206	at least the two years immediately preceding the submission of a
207	207	grant application; and
208	208	(b) registered in a county located in
209	209	the clean transportation zone for at least the two years
210	210	immediately preceding the submission of a grant application; and
211	211	(iii) otherwise satisfies the mileage,
212	212	usage, and useful life requirements established under Paragraph (A)
213	213	as determined by documentation associated with the vehicle; or
214	214	(C) be a heavy-duty or medium-duty motor vehicle
215	215	repowered with a natural gas engine that:
216	216	(i) is installed in an on-road vehicle that
217	217	has been owned, leased, or otherwise commercially financed and
218	218	registered and operated by the applicant in Texas for at least the
219	219	two years immediately preceding the submission of a grant
220	220	application;
221	221	(ii) satisfies any minimum average annual
222	222	mileage or fuel usage requirements established by the commission;
223	223	(iii) satisfies any minimum percentage of
224	224	annual usage requirements established by the commission; and
225	225	(iv) is installed in an on-road vehicle
226	226	that, at the time of the vehicle's repowering, was in operating
227	227	condition and had at least two years of remaining useful life, as
228	228	determined in accordance with criteria established by the
229	229	commission; and
230	230	(3) if the qualifying vehicle is a used natural gas
231	231	vehicle, the vehicle must be of model year 2014 or later.
232	232	SECTION 6. Subtitle C, Title 5, Health and Safety Code, is
233	233	amended by adding Chapter 394A to read as follows:
234	234	CHAPTER 394A. TEXAS NON-ROAD NATURAL GAS GRANT PROGRAM
235	235	Sec. 394A.001. DEFINITIONS. In this chapter:
236	236	(1) "Clean transportation zone" has the meaning
237	237	assigned by Section 393.001.
238	238	(2) "Commission" means the Texas Commission on
239	239	Environmental Quality.
240	240	(3) "Executive director" means the executive director
241	241	of the commission.
242	242	(4) "Incremental cost" has the meaning assigned by
243	243	Section 386.001.
244	244	(5) "Natural gas engine" has the meaning assigned by
245	245	Section 394.001.
246	246	(6) "Non-road engine" has the meaning assigned by
247	247	Section 386.101.
248	248	(7) "Non-road natural gas vehicle or equipment" means
249	249	a vehicle or piece of equipment that is powered by a natural gas
250	250	engine.
251	251	(8) "Non-road vehicle or equipment" means a vehicle or
252	252	piece of equipment, excluding a motor vehicle as defined by Section
253	253	386.151 or a non-road natural gas vehicle or equipment, that is
254	254	powered by a non-road engine, including:
255	255	(A) non-road nonrecreational equipment and
256	256	vehicles;
257	257	(B) construction equipment;
258	258	(C) locomotives; and
259	259	(D) marine vessels.
260	260	(9) "Program" means the Texas non-road natural gas
261	261	grant program established under this chapter.
262	262	Sec. 394A.002. PROGRAM. The commission shall establish and
263	263	administer the Texas non-road natural gas grant program to
264	264	encourage an entity that has a non-road vehicle or equipment to
265	265	repower the vehicle or equipment with a natural gas engine or
266	266	replace the vehicle or equipment with a non-road natural gas
267	267	vehicle or equipment. Under the program, the commission shall
268	268	provide grants for eligible non-road vehicles or equipment to
269	269	offset the incremental cost for the entity of repowering or
270	270	replacing the non-road vehicle or equipment.
271	271	Sec. 394A.003. QUALIFYING VEHICLES AND EQUIPMENT. (a) A
272	272	vehicle or piece of equipment is a qualifying vehicle or equipment
273	273	that may be considered for a grant under the program if during the
274	274	eligibility period established by the commission the entity:
275	275	(1) purchased, leased, or otherwise commercially
276	276	financed the vehicle as a new non-road vehicle or equipment that:
277	277	(A) is a non-road natural gas vehicle or
278	278	equipment;
279	279	(B) is certified to the appropriate current
280	280	federal emissions standards as determined by the commission; and
281	281	(C) replaces a non-road vehicle or equipment of
282	282	the same weight classification and use; or
283	283	(2) repowered the non-road vehicle or equipment to a
284	284	non-road natural gas vehicle or equipment powered by a natural gas
285	285	engine that is certified to the appropriate current federal
286	286	emissions standards as determined by the commission.
287	287	(b) A non-road vehicle or equipment is not a qualifying
288	288	vehicle or equipment if the vehicle or equipment or the natural gas
289	289	engine powering the vehicle or equipment:
290	290	(1) has been awarded a grant under this chapter for a
291	291	previous reporting period; or
292	292	(2) has received a similar grant or tax credit in
293	293	another jurisdiction if that grant or tax credit program is relied
294	294	on for credit in the state implementation plan.
295	295	Sec. 394A.004. APPLICATION FOR GRANT. (a) Only an entity
296	296	operating in this state that operates a non-road vehicle or
297	297	equipment may apply for and receive a grant under this chapter.
298	298	(b) An application for a grant under this chapter must be
299	299	made on a form provided by the commission and must contain the
300	300	information required by the commission.
301	301	(c) The commission, after consulting stakeholders, shall:
302	302	(1) simplify the application form; and
303	303	(2) minimize, to the maximum extent possible,
304	304	documentation required for an application.
305	305	Sec. 394A.005. ELIGIBILITY FOR GRANTS. (a) The commission
306	306	shall establish criteria for prioritizing qualifying vehicles and
307	307	equipment eligible to receive grants under this chapter. The
308	308	commission shall review and revise the criteria as appropriate.
309	309	(b) To be eligible for a grant under the program:
310	310	(1) the use of the qualifying vehicle or equipment
311	311	must be projected to result in a reduction in emissions of nitrogen
312	312	oxides of at least 25 percent as compared to the vehicle, equipment,
313	313	or engine being replaced, based on:
314	314	(A) the baseline emission level set by the
315	315	commission under Subsection (h); and
316	316	(B) the certified emission rate of the new
317	317	vehicle or equipment; and
318	318	(2) the qualifying vehicle or equipment must:
319	319	(A) replace a non-road vehicle or equipment that:
320	320	(i) has been owned, leased, or otherwise
321	321	commercially financed and operated by the applicant in Texas for at
322	322	least the two years immediately preceding the submission of a grant
323	323	application;
324	324	(ii) satisfies any minimum average annual
325	325	mileage or fuel usage requirements established by the commission;
326	326	(iii) satisfies any minimum percentage of
327	327	annual usage requirements established by the commission; and
328	328	(iv) is in operating condition and has at
329	329	least two years of remaining useful life, as determined in
330	330	accordance with criteria established by the commission; or
331	331	(B) be a non-road vehicle or equipment repowered
332	332	with a natural gas engine that:
333	333	(i) is installed in a non-road vehicle or
334	334	equipment that has been owned, leased, or otherwise commercially
335	335	financed and operated by the applicant in Texas for at least the two
336	336	years immediately preceding the submission of a grant application;
337	337	(ii) satisfies any minimum average annual
338	338	mileage or fuel usage requirements established by the commission;
339	339	(iii) satisfies any minimum percentage of
340	340	annual usage requirements established by the commission; and
341	341	(iv) is installed in a non-road vehicle or
342	342	equipment that, at the time of the vehicle's or equipment's
343	343	repowering, was in operating condition and had at least two years of
344	344	remaining useful life, as determined in accordance with criteria
345	345	established by the commission.
346	346	(c) As a condition of receiving a grant, the qualifying
347	347	vehicle or equipment must be continuously owned, leased, or
348	348	otherwise commercially financed and operated in the state by the
349	349	grant recipient until the earlier of the fourth anniversary of the
350	350	activity start date established by the commission or a date
351	351	specified by the commission that takes into account the vehicle's
352	352	or equipment's usage after the activity start date established by
353	353	the commission. Not less than 75 percent of the annual use of the
354	354	qualifying vehicle or equipment, either mileage or fuel use as
355	355	determined by the commission, must occur in the clean
356	356	transportation zone.
357	357	(d) For purposes of Subsection (c), the commission shall
358	358	establish the activity start date based on the date the commission
359	359	accepts verification of the disposition of the vehicle, equipment,
360	360	or engine, as applicable.
361	361	(e) The commission shall include and enforce the usage
362	362	provisions in the grant contracts. The commission shall monitor
363	363	compliance with the ownership, leasing, and usage requirements,
364	364	including submission of reports on at least an annual basis, or more
365	365	frequently as determined by the commission.
366	366	(f) The commission by contract may require the return of all
367	367	or a portion of grant funds for a grant recipient's noncompliance
368	368	with the usage and percentage of use requirements under this
369	369	section.
370	370	(g) A non-road vehicle or equipment replaced under this
371	371	program must be rendered permanently inoperable by crushing the
372	372	vehicle or equipment, by making a hole in the engine block and
373	373	permanently destroying the frame of the vehicle or equipment, or by
374	374	another method approved by the commission, or be permanently
375	375	removed from operation in this state. The commission shall
376	376	establish criteria for ensuring the permanent destruction or
377	377	permanent removal of the vehicle, equipment, or engine, as
378	378	applicable. The commission shall enforce the destruction and
379	379	removal requirements. For purposes of this subsection, "permanent
380	380	removal" means the permanent export of the vehicle, equipment, or
381	381	engine to a destination outside of the United States, Canada, or the
382	382	United Mexican States.
383	383	(h) The commission shall establish baseline emission levels
384	384	for emissions of nitrogen oxides for non-road vehicles or equipment
385	385	being replaced or repowered by using the emission certification for
386	386	the vehicle, equipment, or engine being replaced. The commission
387	387	may consider deterioration of the emission performance of the
388	388	engine of the vehicle or equipment being replaced in establishing
389	389	the baseline emission level. The commission may consider and
390	390	establish baseline emission rates for additional pollutants of
391	391	concern.
392	392	(i) Mileage or fuel use requirements established by the
393	393	commission under Subsection (b)(2)(A)(ii) may differ by vehicle or
394	394	equipment weight categories and type of use.
395	395	(j) The executive director may waive the requirements of
396	396	Subsection (b)(2)(A)(i) on a finding of good cause, which may
397	397	include short lapses in operation due to economic conditions,
398	398	seasonal work, or other circumstances.
399	399	Sec. 394A.006. RESTRICTION ON USE OF GRANT. A recipient of
400	400	a grant under this chapter shall use the grant to pay the
401	401	incremental costs of the replacement or engine repower for which
402	402	the grant is made, which may include a portion of the initial cost
403	403	of the non-road natural gas vehicle or equipment or natural gas
404	404	engine, including the cost of the natural gas fuel system and
405	405	installation. The recipient may not use the grant to pay the
406	406	recipient's administrative expenses.
407	407	Sec. 394A.007. AMOUNT OF GRANT. (a) The commission shall
408	408	develop a grant schedule that:
409	409	(1) assigns a standardized grant in an amount up to 90
410	410	percent of the incremental cost of a non-road natural gas vehicle or
411	411	equipment purchase, lease, other commercial finance, or
412	412	repowering;
413	413	(2) is based on:
414	414	(A) the certified emission level of nitrogen
415	415	oxides, or other pollutants as determined by the commission, of the
416	416	engine powering the non-road natural gas vehicle or equipment; and
417	417	(B) the usage of the non-road natural gas vehicle
418	418	or equipment; and
419	419	(3) may take into account the overall emissions
420	420	reduction achieved by the non-road natural gas vehicle or
421	421	equipment.
422	422	(b) A person may not receive a grant under this chapter
423	423	that, when combined with any other grant, tax credit, or other
424	424	governmental incentive, exceeds the incremental cost of the vehicle
425	425	or equipment or engine repower for which the grant is awarded. A
426	426	person shall return to the commission the amount of a grant awarded
427	427	under this chapter that, when combined with any other grant, tax
428	428	credit, or other governmental incentive, exceeds the incremental
429	429	cost of the vehicle or equipment or engine repower for which the
430	430	grant is awarded.
431	431	(c) The commission shall reduce the amount of a grant
432	432	awarded under this chapter as necessary to keep the combined
433	433	incentive total at or below the incremental cost of the vehicle or
434	434	equipment for which the grant is awarded if the grant recipient is
435	435	eligible to receive an automatic incentive at or before the time a
436	436	grant is awarded under this chapter.
437	437	Sec. 394A.008. GRANT PROCEDURES. (a) The commission shall
438	438	establish procedures for:
439	439	(1) awarding grants under this chapter to reimburse
440	440	eligible costs; and
441	441	(2) streamlining the grant application, contracting,
442	442	reimbursement, and reporting process for qualifying non-road
443	443	natural gas vehicle or equipment purchases or repowers.
444	444	(b) Procedures established under this section must:
445	445	(1) provide for the commission to compile and
446	446	regularly update a listing of potentially eligible non-road natural
447	447	gas vehicles and equipment and natural gas engines that are
448	448	certified to the appropriate current federal emissions standards as
449	449	determined by the commission;
450	450	(2) provide a method to calculate the reduction in
451	451	emissions of nitrogen oxides, volatile organic compounds, carbon
452	452	monoxide, particulate matter, and sulfur compounds for each
453	453	replacement or repowering;
454	454	(3) assign a standardized grant amount for each
455	455	qualifying vehicle or equipment or engine repower under Section
456	456	394A.007;
457	457	(4) allow for processing applications on an ongoing
458	458	first-come, first-served basis;
459	459	(5) require grant applicants to identify natural gas
460	460	fueling stations that are available to fuel the qualifying vehicle
461	461	or equipment in the area of its use;
462	462	(6) provide for payment not later than the 30th day
463	463	after the date the request for reimbursement for an approved grant
464	464	is received;
465	465	(7) provide for application submission and
466	466	application status checks using procedures established by the
467	467	commission, which may include application submission and status
468	468	checks to be made over the Internet; and
469	469	(8) consolidate, simplify, and reduce the
470	470	administrative work for applicants and the commission associated
471	471	with grant application, contracting, reimbursement, and reporting
472	472	requirements.
473	473	(c) The commission, or its designee, shall oversee the grant
474	474	process and is responsible for final approval of any grant.
475	475	(d) Grant recipients are responsible for meeting all grant
476	476	conditions, including reporting and monitoring as required by the
477	477	commission through the grant contract.
478	478	Sec. 394A.009. EXPIRATION. This chapter expires on the
479	479	last day of the state fiscal biennium during which the commission
480	480	publishes in the Texas Register the notice required by Section
481	481	382.037.
482	482	SECTION 7. The changes in law made by this Act apply only to
483	483	a Texas emissions reduction plan grant awarded on or after the
484	484	effective date of this Act. A grant awarded before the effective
485	485	date of this Act is governed by the law in effect on the date the
486	486	award was made, and the former law is continued in effect for that
487	487	purpose.
488	488	SECTION 8. This Act takes effect September 1, 2019.