3 | 5 | | |
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4 | 6 | | |
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5 | 7 | | A BILL TO BE ENTITLED |
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6 | 8 | | AN ACT |
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7 | 9 | | relating to programs established and funded under the Texas |
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8 | 10 | | emissions reduction plan. |
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9 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 12 | | SECTION 1. Section 386.051(b), Health and Safety Code, is |
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11 | 13 | | amended to read as follows: |
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12 | 14 | | (b) Under the plan, the commission and the comptroller shall |
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13 | 15 | | provide grants or other funding for: |
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14 | 16 | | (1) the diesel emissions reduction incentive program |
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15 | 17 | | established under Subchapter C, including for infrastructure |
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16 | 18 | | projects established under that subchapter; |
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17 | 19 | | (2) the motor vehicle purchase or lease incentive |
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18 | 20 | | program established under Subchapter D; |
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19 | 21 | | (3) the air quality research support program |
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20 | 22 | | established under Chapter 387; |
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21 | 23 | | (4) the clean school bus program established under |
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22 | 24 | | Chapter 390; |
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23 | 25 | | (5) the new technology implementation grant program |
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24 | 26 | | established under Chapter 391; |
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25 | 27 | | (6) the regional air monitoring program established |
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26 | 28 | | under Section 386.252(a); |
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27 | 29 | | (7) a health effects study as provided by Section |
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28 | 30 | | 386.252(a); |
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29 | 31 | | (8) air quality planning activities as provided by |
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30 | 32 | | Section 386.252(d); |
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31 | 33 | | (9) a contract with the Energy Systems Laboratory at |
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32 | 34 | | the Texas A&M Engineering Experiment Station for computation of |
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33 | 35 | | creditable statewide emissions reductions as provided by Section |
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34 | 36 | | 386.252(a); |
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35 | 37 | | (10) the Texas clean fleet program established under |
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36 | 38 | | Chapter 392; |
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37 | 39 | | (11) the Texas alternative fueling facilities program |
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38 | 40 | | established under Chapter 393; |
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39 | 41 | | (12) the Texas natural gas vehicle grant program |
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40 | 42 | | established under Chapter 394; |
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41 | 43 | | (13) other programs the commission may develop that |
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42 | 44 | | lead to reduced emissions of nitrogen oxides, particulate matter, |
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43 | 45 | | or volatile organic compounds in a nonattainment area or affected |
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44 | 46 | | county; |
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45 | 47 | | (14) other programs the commission may develop that |
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46 | 48 | | support congestion mitigation to reduce mobile source ozone |
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47 | 49 | | precursor emissions; |
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48 | 50 | | (15) the seaport and rail yard areas emissions |
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49 | 51 | | reduction program established under Subchapter D-1; |
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50 | 52 | | (16) conducting research and other activities |
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51 | 53 | | associated with making any necessary demonstrations to the United |
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52 | 54 | | States Environmental Protection Agency to account for the impact of |
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53 | 55 | | foreign emissions or an exceptional event; |
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54 | 56 | | (17) studies of or pilot programs for incentives for |
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55 | 57 | | port authorities located in nonattainment areas or affected |
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56 | 58 | | counties as provided by Section 386.252(a); [and] |
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57 | 59 | | (18) the governmental alternative fuel fleet grant |
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58 | 60 | | program established under Chapter 395; |
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59 | 61 | | (19) the purchase, maintenance, upgrade, and |
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60 | 62 | | operation of air monitoring equipment as provided by Section |
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61 | 63 | | 386.252(a); and |
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62 | 64 | | (20) fee-based contracts entered into under the |
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63 | 65 | | program established under Section 386.058. |
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64 | 66 | | SECTION 2. Subchapter B, Chapter 386, Health and Safety |
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65 | 67 | | Code, is amended by adding Section 386.058 to read as follows: |
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66 | 68 | | Sec. 386.058. FEE-BASED CONTRACTS FOR PURCHASE OF |
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67 | 69 | | REDUCTIONS IN EMISSIONS OF NITROGEN OXIDES. (a) The commission by |
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68 | 70 | | rule shall establish a program authorizing the commission to enter |
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69 | 71 | | into fee-based contracts for the purchase of reductions in |
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70 | 72 | | emissions of nitrogen oxides. |
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71 | 73 | | (b) The program established under this section must: |
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72 | 74 | | (1) specify the types of projects that are eligible |
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73 | 75 | | for fee-based contracts under the program, such as marine emission |
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74 | 76 | | capture systems; |
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75 | 77 | | (2) measure nitrogen oxides emissions input and output |
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76 | 78 | | on a continuous basis; |
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77 | 79 | | (3) require nitrogen oxides emissions reduced under |
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78 | 80 | | the contract to be verified and certified by the commission; |
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79 | 81 | | (4) assign a dollar per ton fee based solely on the |
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80 | 82 | | dollar per ton cost of the reduction in emissions of nitrogen |
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81 | 83 | | oxides; |
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82 | 84 | | (5) require payments under the contract to be made |
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83 | 85 | | only for actual reductions in nitrogen oxides emissions that are |
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84 | 86 | | verified by the commission; and |
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85 | 87 | | (6) authorize the commission to enter into multiyear |
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86 | 88 | | contracts under the program. |
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87 | 89 | | (c) Notwithstanding Section 386.055: |
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88 | 90 | | (1) the commission may enter into a fee-based contract |
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89 | 91 | | under the program established under this section for a project |
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90 | 92 | | involving a new emissions reduction measure that would otherwise |
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91 | 93 | | generate marketable credits under a state or federal emissions |
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92 | 94 | | reduction credit averaging, banking, or trading program if, during |
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93 | 95 | | the term of the contract, the project is not used for credit under |
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94 | 96 | | any state or federal emissions reduction credit averaging, banking, |
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95 | 97 | | or trading program; and |
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96 | 98 | | (2) a project that was subject to a fee-based contract |
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97 | 99 | | under the program established under this section may be used for |
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98 | 100 | | credit under a state or federal emissions reduction credit |
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99 | 101 | | averaging, banking, or trading program if: |
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100 | 102 | | (A) the contract has expired or otherwise |
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101 | 103 | | terminated and the project is not subject to any other fee-based |
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102 | 104 | | contract entered into under the program established under this |
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103 | 105 | | section; and |
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104 | 106 | | (B) the project otherwise meets the requirements |
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105 | 107 | | of the applicable state or federal emissions reduction credit |
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106 | 108 | | averaging, banking, or trading program. |
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107 | 109 | | SECTION 3. Sections 386.252(a) and (f), Health and Safety |
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108 | 110 | | Code, as effective September 1, 2021, are amended to read as |
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109 | 111 | | follows: |
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110 | 112 | | (a) Money in the fund and account may be used only to |
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111 | 113 | | implement and administer programs established under the plan. |
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112 | 114 | | Subject to the reallocation of funds by the commission under |
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113 | 115 | | Subsection (h), money from the fund and account to be used for the |
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114 | 116 | | programs under Section 386.051(b) shall initially be allocated as |
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115 | 117 | | follows: |
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116 | 118 | | (1) four percent may be used for the clean school bus |
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117 | 119 | | program under Chapter 390; |
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118 | 120 | | (2) three percent may be used for the new technology |
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119 | 121 | | implementation grant program under Chapter 391, from which at least |
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120 | 122 | | $1 million will be set aside for electricity storage projects |
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121 | 123 | | related to renewable energy; |
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122 | 124 | | (3) five percent may be used for the Texas clean fleet |
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123 | 125 | | program under Chapter 392; |
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124 | 126 | | (4) not more than $3 million may be used by the |
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125 | 127 | | commission to fund a regional air monitoring program in commission |
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126 | 128 | | Regions 3 and 4 to be implemented under the commission's oversight, |
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127 | 129 | | including direction regarding the type, number, location, and |
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128 | 130 | | operation of, and data validation practices for, monitors funded by |
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129 | 131 | | the program through a regional nonprofit entity located in North |
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130 | 132 | | Texas having representation from counties, municipalities, higher |
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131 | 133 | | education institutions, and private sector interests across the |
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132 | 134 | | area; |
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133 | 135 | | (5) 10 percent may be used for the Texas natural gas |
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134 | 136 | | vehicle grant program under Chapter 394; |
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135 | 137 | | (6) not more than $6 million may be used for the Texas |
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136 | 138 | | alternative fueling facilities program under Chapter 393, of which |
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137 | 139 | | a specified amount may be used for fueling stations to provide |
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138 | 140 | | natural gas fuel, except that money may not be allocated for the |
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139 | 141 | | Texas alternative fueling facilities program for the state fiscal |
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140 | 142 | | year ending August 31, 2019; |
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141 | 143 | | (7) not more than $1 million [$750,000] may be used |
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142 | 144 | | each year to support research related to air quality as provided by |
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143 | 145 | | Chapter 387; |
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144 | 146 | | (8) not more than $200,000 may be used for a health |
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145 | 147 | | effects study; |
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146 | 148 | | (9) at least $6 million but not more than $16 million |
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147 | 149 | | may be used by the commission for administrative costs, including |
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148 | 150 | | all direct and indirect costs for administering the plan, costs for |
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149 | 151 | | conducting outreach and education activities, and costs |
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150 | 152 | | attributable to the review or approval of applications for |
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151 | 153 | | marketable emissions reduction credits; |
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152 | 154 | | (10) six percent may be used by the commission for the |
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153 | 155 | | seaport and rail yard areas emissions reduction program established |
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154 | 156 | | under Subchapter D-1; |
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155 | 157 | | (11) five percent may be used for the light-duty motor |
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156 | 158 | | vehicle purchase or lease incentive program established under |
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157 | 159 | | Subchapter D; |
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158 | 160 | | (12) not more than $216,000 may be used by the |
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159 | 161 | | commission to contract with the Energy Systems Laboratory at the |
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160 | 162 | | Texas A&M Engineering Experiment Station annually for the |
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161 | 163 | | development and annual computation of creditable statewide |
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162 | 164 | | emissions reductions obtained through wind and other renewable |
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163 | 165 | | energy resources for the state implementation plan; |
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164 | 166 | | (13) not more than $500,000 may be used for studies of |
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165 | 167 | | or pilot programs for incentives for port authorities located in |
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166 | 168 | | nonattainment areas or affected counties to encourage cargo |
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167 | 169 | | movement that reduces emissions of nitrogen oxides and particulate |
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168 | 170 | | matter; [and] |
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169 | 171 | | (14) not more than $10 million may be used by the |
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170 | 172 | | commission for the purchase, maintenance, upgrade, and operation of |
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171 | 173 | | air monitoring equipment to be used in nonattainment areas and |
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172 | 174 | | affected counties; and |
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173 | 175 | | (15) the balance is to be used by the commission for: |
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174 | 176 | | (A) the diesel emissions reduction incentive |
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175 | 177 | | program under Subchapter C as determined by the commission; and |
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176 | 178 | | (B) fee-based contracts entered into under the |
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177 | 179 | | program established under Section 386.058. |
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178 | 180 | | (f) Not more than $5 [$2.5] million from the fund and |
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179 | 181 | | account may be used by the commission to conduct research and other |
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180 | 182 | | activities associated with making any necessary demonstrations to |
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181 | 183 | | the United States Environmental Protection Agency to account for |
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182 | 184 | | the impact of foreign emissions or an exceptional event. |
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183 | 185 | | SECTION 4. This Act takes effect September 1, 2021. |
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