87R23596 JXC-D
By: Deshotel, Guillen H.B. No. 4120
Substitute the following for H.B. No. 4120:
By: Paddie C.S.H.B. No. 4120
A BILL TO BE ENTITLED
AN ACT
relating to the efficient use and generation of electricity by
public schools.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 390.002(b), Health and Safety Code, is
amended to read as follows:
(b) Projects that may be considered for a grant under the
program include:
(1) diesel oxidation catalysts for school buses built
before 1994;
(2) diesel particulate filters for school buses built
from 1994 to 1998;
(3) the purchase and use of emission-reducing add-on
equipment for school buses, including devices that reduce crankcase
emissions;
(4) the use of qualifying fuel;
(5) other technologies that the commission finds will
bring about significant emissions reductions; [and]
(6) the replacement or conversion of a [pre-2007 model
year] school bus eligible for replacement or conversion under
Section 390.004; and
(7) the installation of charging infrastructure for
electric school buses.
SECTION 2. Section 390.003, Health and Safety Code, is
amended by adding Subsection (a-1) to read as follows:
(a-1) A private entity that leases school buses to a school
district or provides school bus services or supporting
infrastructure to a school district by contract may apply for and
receive a grant under the program.
SECTION 3. Section 390.004, Health and Safety Code, is
amended by amending Subsections (a), (c), and (d) and adding
Subsections (a-1) and (a-2) to read as follows:
(a) The commission by rule shall establish criteria for
setting priorities for projects eligible to receive grants under
this chapter. Except as provided by Subsection (a-1), the [The]
commission shall review and may modify the criteria and priorities
as appropriate.
(a-1) The criteria must prioritize projects that achieve
the greatest reductions in diesel exhaust, especially particulate
matter.
(a-2) The commission shall ensure that at least 75 percent
of the money issued for grants under this chapter is issued for
projects to purchase electric buses or to convert diesel buses into
electric buses.
(c) A school bus proposed for replacement must:
(1) be of model year 2006 or earlier if the bus will be
replaced with a combustion engine bus;
(1-a) be of a model year that is at least six years
older than the year in which the grant application is submitted or
have an odometer reading at least 150,000 miles if the bus will be
replaced with an electric bus;
(2) have been owned and operated by the applicant for
at least the two years before submission of the grant application;
(3) be in good operational condition; and
(4) be currently used on a regular, daily route to and
from a school.
(d) A school bus proposed for purchase to replace a
[pre-2007 model year] school bus described by Subsection (c) must
be of the current model year or the year before the current model
year at the time of submission of the grant application.
SECTION 4. Section 390.005(a), Health and Safety Code, is
amended to read as follows:
(a) A recipient of a grant under this chapter shall use the
grant to pay the incremental costs of the project for which the
grant is made, which may include the reasonable and necessary
expenses incurred for the labor needed to install
emissions-reducing equipment or vehicle charging infrastructure.
The recipient may not use the grant to pay the recipient's
administrative expenses.
SECTION 5. Chapter 35, Utilities Code, is amended by adding
Subchapter F to read as follows:
SUBCHAPTER F. PUBLIC SCHOOLS
Sec. 35.201. DEFINITIONS. In this subchapter:
(1) "Distributed renewable generation" has the
meaning assigned by Section 39.916.
(2) "Interconnection" means the right of a person to
physically connect an energy source and related equipment to an
electricity distribution system and the technical requirements,
rules, or processes required for the connection.
(3) "School energy source" means a source that is:
(A) on-site distributed renewable generation,
energy storage, or an electric school bus; and
(B) owned, leased, or used by a school district
or open-enrollment charter school.
Sec. 35.202. USE OF SCHOOL ENERGY SOURCES. (a) A school
district or open-enrollment charter school that installs electric
vehicle charging equipment shall contract with an electric
cooperative, an electric utility, a municipally owned utility, or a
transmission and distribution utility to:
(1) install make-ready infrastructure on the
cooperative's or utility's side of the meter required to facilitate
interconnection of the electric vehicle charging equipment,
including a new service connection, transformer, conductor,
connector, conduit, or meter; and
(2) provide any necessary construction on the
cooperative's or utility's side of the meter to comply with local
regulations related to the charging equipment.
(b) Electric cooperatives, electric utilities, municipally
owned utilities, and transmission and distribution utilities shall
use their best efforts to:
(1) encourage and facilitate interconnection
processes for school energy sources; and
(2) provide information about distribution system
capacity and needs to a school district or open-enrollment charter
school, or a person acting on behalf of a school district or
open-enrollment charter school, to facilitate interconnection of
school energy sources.
(c) A school district or open-enrollment charter school, or
a person acting on behalf of a school district or open-enrollment
charter school, may:
(1) provide distribution system grid services,
including local capacity relief, voltage and VAR support, and local
frequency control, using a school energy source or a combination of
school energy sources; and
(2) receive appropriate compensation for distribution
grid services provided under Subdivision (1).
(d) The independent organization certified under Section
39.151 for the ERCOT power region shall adopt rules or protocols to
allow a school district or open-enrollment charter school, or a
person acting on behalf of a school district or open-enrollment
charter school, to sell energy and ancillary services from school
energy sources in the wholesale market without registering as a
power generation company.
SECTION 6. Subchapter H, Chapter 36, Utilities Code, is
amended by adding Section 36.3531 to read as follows:
Sec. 36.3531. TIME-OF-USE RATES FOR PUBLIC SCHOOLS. (a)
Notwithstanding any other provision of this title, each electric
utility that provides electric service to a retail customer shall
offer to a school district or open-enrollment charter school served
by the electric utility time-of-use rates to promote efficient:
(1) charging of electric school buses; and
(2) energy use in school buildings.
(b) Notwithstanding any other provision of this title, each
transmission and distribution utility in the ERCOT power region
shall offer to any retail electric provider in its service area that
serves a school district or open-enrollment charter school a rate
structure that allows the retail electric provider to offer
time-of-use rates to the district or school to promote efficient:
(1) charging of electric school buses; and
(2) energy use for school buildings.
SECTION 7. The changes in law made by this Act to Chapter
390, 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 8. The changes in law made by this Act to Section
36.3531, Utilities Code, as added by this Act, do not require an
electric utility to initiate a new ratemaking proceeding. An
electric utility shall comply with Section 36.3531, Utilities Code,
as added by this Act, beginning with the electric utility's first
ratemaking proceeding that begins after the effective date of this
Act.
SECTION 9. This Act takes effect September 1, 2021.