By: Goodwin H.B. No. 3637
A BILL TO BE ENTITLED
AN ACT
relating to mobile source emissions reductions and transportation
electrification; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 4, Government Code, is amended
by adding Chapter 490I to read as follows:
CHAPTER 490I. TEXAS TRANSPORTATION ELECTRIFICATION COUNCIL
Sec. 490I.001. DEFINITION. In this chapter, "council"
means the Texas Transportation Electrification Council established
by this chapter.
Sec. 490I.002. ESTABLISHMENT; COMPOSITION. (a) The Texas
Transportation Electrification Council is established.
(b) The council is composed of the chair of, or if not
applicable, the administrative head of, each of the following
entities:
(1) the Public Utility Commission of Texas;
(2) the Electric Reliability Council of Texas;
(3) the Texas Commission on Environmental Quality;
(4) the State Energy Conservation Office;
(5) the Texas Department of Licensing and Regulation;
(6) the Texas Department of Transportation;
(7) the Texas Department of Motor Vehicles;
(8) the Texas Department of Housing and Community
Affairs;
(9) the Texas State Affordable Housing Corporation;
(10) the Texas Division of Emergency Management; and
(11) the Texas Economic Development and Tourism
Office.
Sec. 490I.003. PRESIDING OFFICER; MEETINGS. (a) The
council annually shall elect one member to serve as the presiding
officer of the council.
(a-1) The chair of the Public Utility Commission of Texas
shall serve as the initial presiding officer of the council. This
subsection expires September 1, 2023.
(b) The council shall hold at least four public meetings
each year.
Sec. 490I.004. ADMINISTRATIVE ATTACHMENT; FUNDING. (a)
The council is administratively attached to the Texas Department of
Transportation.
(b) The council shall be funded using existing funds of the
Texas Department of Transportation.
Sec. 490I.0045. ELECTRIC VEHICLE CHARGING INFRASTRUCTURE
ASSESSMENT. (a) Not later than March 1, 2022, the council shall
prepare an assessment of existing and planned public electric
vehicle charging infrastructure and associated technologies in
this state using existing databases. The assessment must include
the number and types of electric vehicle chargers at each location.
(b) The council shall use the assessment in developing the
plan required by Section 490I.005.
(c) This section expires September 1, 2023.
Sec. 490I.005. ELECTRIC VEHICLE CHARGING INFRASTRUCTURE
PLAN. (a) The council shall:
(1) develop a comprehensive plan for the development
of public electric vehicle charging infrastructure and associated
technologies in this state through the year 2040; and
(2) update the plan biennially.
(b) The plan must:
(1) include a phased implementation of the plan, in
biennial increments, through the year 2030;
(2) identify areas in this state for which additional
public electric vehicle charging infrastructure is needed to ensure
that the vehicle choice of residents of this state is not
constrained by a lack of access to adequate public electric vehicle
charging infrastructure;
(3) provide for sufficient public electric vehicle
charging infrastructure to meet and enable future demand for
electric vehicles in this state that:
(A) ensures that adequate public electric
vehicle charging infrastructure is available:
(i) with sufficient frequency and capacity
to enable users of electric vehicles of various classes to travel
border to border and community to community on interstate highways
and other major roadways in this state;
(ii) along evacuation routes and at highway
rest stops in this state; and
(iii) in rural communities, multifamily and
underserved communities, town centers, commercial and retail
areas, parks and other publicly owned lands, and other areas that
are in close proximity to where local electric vehicle users live or
work;
(B)
(i) at or near the borders of this state;
(ii) in or near airports, rail yards, and
seaports; and
(iii) at warehouse complexes and truck
stops;
(C) enhances accessibility of tourist areas to
electric vehicle users; and
(D) covers any other areas identified by the
council;
(4) stimulate competition, innovation, consumer
choices in public electric vehicle charging and related
infrastructure and services, and encourage private capital
investment; and
(5) specify the number and types of electric vehicle
chargers per general location that are needed to meet the
requirements prescribed by Subdivisions (2), (3), and (4).
(c) In developing and updating the plan, the council:
(1) shall use, to the extent practicable, publicly
available electric vehicle projections and models based on industry
standards to determine, for each year, the percentage and number of
electric vehicles by vehicle class that are expected on roadways in
this state and the number of electric vehicle chargers that are
needed to ensure that there is comprehensive and adequate access to
public electric vehicle charging infrastructure in this state; and
(2) may rely on scenarios provided by the Electric
Reliability Council of Texas or other information from appropriate
sources for the percentage and number of electric vehicles by
vehicle class on roadways in this state by year.
Sec. 490I.006. STATE AGENCY POLICY RECOMMENDATIONS. The
council shall develop policy recommendations that state agencies
may adopt to encourage the development of an adequate network of
public electric vehicle charging infrastructure and associated
technologies to meet the future electrified transportation needs in
this state through the year 2030.
Sec. 490I.007. STAKEHOLDER INPUT. In performing the
council 's duties under this chapter, the council shall seek advice
and input from:
(1) privately owned electric utilities;
(2) municipally owned electric utilities;
(3) electric cooperatives;
(4) state and local transportation and transit
agencies;
(5) port authorities;
(6) warehousing and logistics centers;
(7) electric vehicle charging infrastructure
companies;
(8) environmental groups;
(9) consumer advocates;
(10) motor vehicle manufacturers;
(11) nonprofit organizations developing electric
vehicle policy;
(12) nonprofit organizations representing food or
motor fuel providers;
(13) apartment associations;
(14) low-income community development corporations;
and
(15) interested members of the public.
Sec. 490I.008. AUTHORITY TO CONTRACT AND CONSULT WITH
CERTAIN PERSONS. In performing the council 's duties under this
chapter, the council may:
(1) contract with experts, academic scholars, and
other appropriate professionals; and
(2) consult with the Texas A&M Transportation
Institute and institutions of higher education.
Sec. 490I.0085. INITIAL REPORT. (a) Not later than
December 1, 2022, the council shall prepare and submit to the
governor, the lieutenant governor, each member of the legislature,
and relevant state and federal agencies a written report of the
council 's findings that includes:
(1) the assessment prepared under Section 490I.0045;
(2) the plan developed under Section 490I.005,
including the phased implementation of the plan required by
Subsection (b)(1) of that section; and
(3) the policy recommendations developed under
Section 490I.006.
(b) This section expires September 1, 2023.
Sec. 490I.009. BIENNIAL REPORT. Not later than December 1
of each even-numbered year, the council shall prepare and submit to
the governor, the lieutenant governor, each member of the
legislature, and relevant state and federal agencies a written
report that includes:
(1) a summary of the progress made on the
implementation of the plan developed under Section 490I.005;
(2) the biennial update to the plan required under
Section 490I.005(a)(2); and
(3) any updates to the policy recommendations
developed under Section 490I.006.
SECTION 2. Section 386.001, Health and Safety Code, is
amended by adding Subdivision (4) to read as follows:
(4) "Federal funds" means all assistance provided to
the commission from the federal government in the form of grants,
contracts, loans, loan guarantees, property, cooperative
agreements, interest subsidies, insurance, direct appropriations,
or any other method of disbursement.
SECTION 3. Section 386.152, Health and Safety Code, is
amended to read as follows:
Sec. 386.152. APPLICABILITY.
(a) The provisions of this subchapter relating to a lessee
do not apply to a person who rents or leases a light-duty motor
vehicle for a term of 30 days or less.
(b) The provisions of this subchapter relating to a lessor
do not apply to a person who rents or leases a light-duty motor
vehicle to a person for a term of 30 days or less.
SECTION 4. Section 386.153, Health and Safety Code, is
amended by amending Subsection (c) and adding Subsection (e) to
read as follows:
(c) Only one incentive will be provided for each new
light-duty motor vehicle. The incentive shall be provided to the
seller or lessor of the vehicle. The seller or lessor shall credit
the amount of the incentive to the purchaser or lessee at the time
the sale is made or the lease is entered into. The incentive may not
[shall] be provided to a seller [the lessee and not to the
purchaser] if the motor vehicle is sold [purchased] for the purpose
of leasing the vehicle to another person.
(e) The commission shall establish a registration program
for sellers and lessors of new motor vehicles to apply online and
receive incentives under this subchapter. The commission shall
promptly pay the incentives when authorized under the registration
program established by this subsection.
SECTION 5. Section 386.154, Health and Safety Code, is
amended by amending Subsections (a), (b), and (d) and adding
Subsections (f), (g), and (h) to read as follows:
(a) A new light-duty motor vehicle powered by compressed
natural gas or liquefied petroleum gas is eligible for a $5,000
incentive if the vehicle:
(1) has four wheels;
(2) was originally manufactured to comply with and has
been certified by an original equipment manufacturer or
intermediate or final state vehicle manufacturer as complying with,
or has been altered to comply with, federal motor vehicle safety
standards, state emissions regulations, and any additional federal
or state regulations applicable to vehicles powered by compressed
natural gas or liquefied petroleum gas;
(3) was manufactured for use primarily on public
streets, roads, and highways;
(4) has a dedicated or bi-fuel compressed natural gas
or liquefied petroleum gas fuel system:
(A) installed prior to first sale or within 500
miles of operation of the vehicle following first sale; and
(B) with a range of at least 125 miles as
estimated, published, and updated by the United States
Environmental Protection Agency;
(5) has, as applicable, a:
(A) compressed natural gas fuel system that
complies with the:
(i) 2013 NFPA 52 Vehicular Gaseous Fuel
Systems Code; and
(ii) American National Standard for Basic
Requirements for Compressed Natural Gas Vehicle (NGV) Fuel
Containers, commonly cited as "ANSI/CSA NGV2"; or
(B) liquefied petroleum gas fuel system that
complies with:
(i) the 2011 NFPA 58 Liquefied Petroleum
Gas Code; and
(ii) Section VII of the 2013 ASME Boiler and
Pressure Vessel Code; and
(6) was sold or leased [acquired] on or after
September 1, 2013, or a later date established by the commission, by
the seller or lessor [person] applying for the incentive under this
subsection and for use or lease by the purchaser or lessee of the
vehicle [that person] and not for resale.
(b) If the commission determines that an updated version of
a code or standard described by Subsection (a)(5) is more stringent
than the version of the code or standard described by Subsection
(a)(5), the commission by rule may provide that a vehicle for which
a seller or lessor [person] applies for an incentive under
Subsection (a) is eligible for the incentive only if the vehicle
complies with the updated version of the code or standard.
(d) A new light-duty motor vehicle powered by an electric
drive is eligible for a $2,500 incentive if the vehicle:
(1) has four wheels;
(2) was manufactured for use primarily on public
streets, roads, and highways;
(3) has not been modified from the original
manufacturer 's specifications;
(4) has a maximum speed capability of at least 55 miles
per hour;
(5) is propelled to a significant extent by an
electric motor that draws electricity from a hydrogen fuel cell or
from a battery that:
(A) has a capacity of not less than four kilowatt
hours; and
(B) is capable of being recharged from an
external source of electricity; [and]
(6) is not designed, used, or maintained primarily to
transport property; and
(7) was sold or leased [acquired] on or after
September 1, 2013, or a later date as established by the commission,
by the seller or lessor [person] applying for the incentive under
this subsection and for use or lease by the purchaser or lessee of
the vehicle [that person] and not for resale.
(f) A new light-duty motor vehicle powered by an electric
drive is eligible for a $4,000 incentive if the vehicle:
(1) satisfies the requirements of Subsections
(d)(1)-(5);
(2) is designed, used, or maintained primarily to
transport property; and
(3) was sold or leased on or after September 1, 2021,
or a later date as established by the commission, by the seller or
lessor applying for the incentive under this subsection and for use
or lease by the purchaser or lessee of the vehicle and not for
resale.
(g) The incentive under Subsection (f) is limited to 2,000
vehicles for each state fiscal biennium.
(h) Notwithstanding Subsections (c), (e), and (g) and
subject to Section 386.252(a)(11), at the beginning of the second
state fiscal year of the biennium, the commission shall adjust the
initial vehicle limitations provided under Subsections (c), (e),
and (g) based on demand for incentives under this section during the
preceding state fiscal year.
SECTION 6. Sections 386.157(a) and (c), Health and Safety
Code, are amended to read as follows:
(a) A seller or lessor of [person who purchases or leases] a
new light-duty motor vehicle described by Section 386.154 and
listed under Section 386.156(a) is eligible to apply for an
incentive under this subchapter.
(c) To receive money under an incentive program provided by
this subchapter, the seller or lessor of a light-duty motor vehicle
shall verify online that funds are available, that the seller or
lessor is eligible [the purchaser or lessee of a new light-duty
motor vehicle who is eligible to apply] for an incentive under this
subchapter, and if the incentive is for a vehicle described by
Section 386.154(d) or (f), that the purchaser or lessee of the
vehicle has watched an online video that explains how and when to
charge an electric vehicle to reduce peak demand for electricity
and reduce air emissions [shall apply for the incentive in the
manner provided by law or by rule of the commission].
SECTION 7. Section 386.158, Health and Safety Code, is
amended to read as follows:
Sec. 386.158. COMMISSION TO ACCOUNT FOR MOTOR VEHICLE
PURCHASE OR LEASE INCENTIVES.
(a) The commission by rule shall develop a method to
administer and account for the motor vehicle purchase or lease
incentives authorized by this subchapter and to pay incentive money
to the seller [purchaser] or lessor [lessee] of a new motor
vehicle[, on application of the purchaser or lessee as provided by
this subchapter].
(b) The commission shall develop and publish online forms
and instructions for the seller [purchaser] or lessor [lessee] of a
new motor vehicle to use in applying to the commission for an
incentive payment under this subchapter. [The commission shall
make the forms available to new motor vehicle dealers and leasing
agents. Dealers and leasing agents shall make the forms available
to their prospective purchasers or lessees.]
(c) The commission may require the online submission of
forms and documentation as needed to verify eligibility for an
incentive under this subchapter.
SECTION 8. Section 386.159, Health and Safety Code, is
amended to read as follows:
Sec. 386.159. PURCHASE OR LEASE INCENTIVES ONLINE PORTAL
[INFORMATION]. [(a)] The commission shall establish an online
portal [a toll-free telephone number available to motor vehicle
dealers and leasing agents for the dealers and agents to call] to
verify that incentives are available. [The commission may provide
for issuing verification numbers over the telephone line.
[(b) Reliance by a dealer or leasing agent on information
provided by the commission is a complete defense to an action
involving or based on eligibility of a vehicle for an incentive or
availability of vehicles eligible for an incentive.]
SECTION 9. Section 386.160, Health and Safety Code, is
amended to read as follows:
Sec. 386.160. RESERVATION OF INCENTIVES. The commission
may provide for new motor vehicle sellers [dealers] and leasing
agents to reserve for a limited time period incentives for eligible
vehicles [that are not readily available and must be ordered,] if
the seller [dealer] or leasing agent has a purchase or lease order
signed by an identified customer.
SECTION 10. Sections 386.250(b) and (c), Health and Safety
Code, as effective September 1, 2021, are amended to read as
follows:
(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; and
(3) federal funds deposited to the credit of the fund.
(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. This subsection does not apply to federal
funds deposited to the credit of the fund.
SECTION 11. Section 386.252, Health and Safety Code, as
effective September 1, 2021, is amended by amending Subsection (a)
and adding Subsection (i) 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 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) eight percent [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 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) the balance is to be used by the commission for
the diesel emissions reduction incentive program under Subchapter C
as determined by the commission.
(i) Notwithstanding any other law, federal funds deposited
to the credit of the fund may be used only as provided by the terms
of the applicable federal funds agreement.
SECTION 19. (a) In this section:
(1) "Commission" means the Texas Commission on
Environmental Quality.
(2) "Vehicle" has the meaning assigned by Section
541.201, Transportation Code.
(3) "Vehicle recycler" means a person engaged in the
business of acquiring, dismantling, or preparing for recycling six
or more end-of-life vehicles in a calendar year for the primary
purpose of reselling the vehicles ' parts. The term includes a
salvage vehicle dealer licensed under Chapter 2302, Occupations
Code.
(b) Using existing funds, the commission shall conduct a
study on policies pertaining to the recovery and recycling of
lithium-ion and other propulsion batteries sold with electric
vehicles in this state. The study must examine:
(1) methods to ensure that as close to 100 percent as
possible of electric vehicle batteries in this state are reused or
recycled at end-of-life in a safe and cost-effective manner;
(2) policy recommendations that reflect entire life
cycle considerations for electric vehicle batteries, including
opportunities and barriers to the reuse of electric vehicle
batteries as energy storage systems after a battery is removed from
a vehicle;
(3) best management considerations for electric
vehicle batteries at end-of-life and the overall effect of
different management practices on the environment;
(4) in-state and out-of-state options for the
recycling of electric vehicle batteries; and
(5) future electric vehicle battery technologies.
(c) Not later than January 1, 2022, the commission shall
establish and convene an advisory group to provide guidance and
direction to the commission for purposes of conducting the study
required by this section and making legislative recommendations
based on the study. The advisory group shall meet at least
quarterly.
(d) The commission shall appoint to the advisory group at
least one member from each of the following:
(1) a representative from the Texas Economic
Development and Tourism Office;
(2) a representative from the Public Utility
Commission of Texas;
(3) a manufacturer of electric vehicles;
(4) an organization that represents one or more
vehicle manufacturers;
(5) a nonprofit organization that represents
utilities, electric vehicle manufacturers, and charging companies;
(6) an electronic waste recycler or an organization
that represents one or more electronic waste recyclers;
(7) a vehicle repair dealer or an organization that
represents one or more vehicle repair dealers;
(8) a vehicle recycler or an organization that
represents one or more vehicle recyclers;
(9) a nationwide environmental organization that
researches waste reduction and recycling strategies;
(10) a representative of the large-scale lithium-ion
and other energy storage technology industries;
(11) an electric vehicle battery manufacturer; and
(12) a standards-developing organization that has a
focus on automotive engineering.
(e) In advising the commission under this section, the
advisory group shall consult with:
(1) universities and research institutions that have
conducted research in the area of battery recycling;
(2) manufacturers of electric and hybrid vehicles; and
(3) the recycling industry.
(f) Not later than December 1, 2022, the commission shall
prepare and submit to the governor, the lieutenant governor, and
each member of the legislature a written report that includes a
summary of the results of the study conducted under this section and
any legislative recommendations based on the study.
(g) The advisory group is abolished and this section expires
January 1, 2023.
SECTION 20. The Texas Transportation Electrification
Council shall submit its first report under Section 490I.009,
Government Code, as added by this Act, not later than December 1,
2024.
SECTION 21. The changes in law made by this Act to Chapter
386, Health and Safety Code, apply only to a Texas emissions
reduction plan grant awarded on or after the effective date of this
Act. A grant awarded before the effective date of this Act is
governed by the law in effect on the date the award was made, and the
former law is continued in effect for that purpose.
SECTION 22. Not later than December 1, 2024, the Texas
Commission of Licensing and Regulation shall adopt the rules
required by Section 2311.002, Occupations Code, as added by this
Act.
SECTION 23. This Act takes effect September 1, 2021.