87R16682 JRR-F
By: Thompson of Brazoria H.B. No. 2468
Substitute the following for H.B. No. 2468:
By: Kuempel C.S.H.B. No. 2468
A BILL TO BE ENTITLED
AN ACT
relating to programs established and funded under the Texas
emissions reduction plan.
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;
(19) the purchase, maintenance, upgrade, and
operation of air monitoring equipment as provided by Section
386.252(a); and
(20) fee-based contracts entered into under the
program established under Section 386.058.
SECTION 2. Subchapter B, Chapter 386, Health and Safety
Code, is amended by adding Section 386.058 to read as follows:
Sec. 386.058. FEE-BASED CONTRACTS FOR PURCHASE OF
REDUCTIONS IN EMISSIONS OF NITROGEN OXIDES. (a) The commission by
rule shall establish a program authorizing the commission to enter
into fee-based contracts for the purchase of reductions in
emissions of nitrogen oxides.
(b) The program established under this section must:
(1) specify the types of projects that are eligible
for fee-based contracts under the program, such as marine emission
capture systems;
(2) measure nitrogen oxides emissions input and output
on a continuous basis;
(3) require nitrogen oxides emissions reduced under
the contract to be verified and certified by the commission;
(4) assign a dollar per ton fee based solely on the
dollar per ton cost of the reduction in emissions of nitrogen
oxides;
(5) require payments under the contract to be made
only for actual reductions in nitrogen oxides emissions that are
verified by the commission; and
(6) authorize the commission to enter into multiyear
contracts under the program.
(c) Notwithstanding Section 386.055:
(1) the commission may enter into a fee-based contract
under the program established under this section for a project
involving a new emissions reduction measure that would otherwise
generate marketable credits under a state or federal emissions
reduction credit averaging, banking, or trading program if, during
the term of the contract, the project is not used for credit under
any state or federal emissions reduction credit averaging, banking,
or trading program; and
(2) a project that was subject to a fee-based contract
under the program established under this section may be used for
credit under a state or federal emissions reduction credit
averaging, banking, or trading program if:
(A) the contract has expired or otherwise
terminated and the project is not subject to any other fee-based
contract entered into under the program established under this
section; and
(B) the project otherwise meets the requirements
of the applicable state or federal emissions reduction credit
averaging, banking, or trading program.
SECTION 3. Sections 386.252(a) and (f), Health and Safety
Code, as effective September 1, 2021, 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 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 $1 million [$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 million
may be used by 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 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) not more than $10 million may be used by the
commission for the purchase, maintenance, upgrade, and operation of
air monitoring equipment to be used in nonattainment areas and
affected counties; and
(15) the balance is to be used by the commission for:
(A) the diesel emissions reduction incentive
program under Subchapter C as determined by the commission; and
(B) fee-based contracts entered into under the
program established under Section 386.058.
(f) Not more than $5 [$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.
SECTION 4. This Act takes effect September 1, 2021.