Texas 2021 - 87th Regular

Texas House Bill HB4120 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	87R23596 JXC-D
2		-	By: Deshotel, Guillen H.B. No. 4120
3		-	Substitute the following for H.B. No. 4120:
4		-	By: Paddie C.S.H.B. No. 4120
	1	+	87R5646 JXC-D
	2	+	By: Deshotel H.B. No. 4120
5	3
6	4
7	5		A BILL TO BE ENTITLED
8	6		AN ACT
9	7		relating to the efficient use and generation of electricity by
10	8		public schools.
11	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	10		SECTION 1. Section 390.002(b), Health and Safety Code, is
13	11		amended to read as follows:
14	12		(b) Projects that may be considered for a grant under the
15	13		program include:
16	14		(1) diesel oxidation catalysts for school buses built
17	15		before 1994;
18	16		(2) diesel particulate filters for school buses built
19	17		from 1994 to 1998;
20	18		(3) the purchase and use of emission-reducing add-on
21	19		equipment for school buses, including devices that reduce crankcase
22	20		emissions;
23	21		(4) the use of qualifying fuel;
24	22		(5) other technologies that the commission finds will
25	23		bring about significant emissions reductions; [and]
26	24		(6) the replacement or conversion of a [pre-2007 model
27	25		year] school bus eligible for replacement or conversion under
28	26		Section 390.004; and
29	27		(7) the installation of charging infrastructure for
30	28		electric school buses.
31	29		SECTION 2. Section 390.003, Health and Safety Code, is
32	30		amended by adding Subsection (a-1) to read as follows:
33	31		(a-1) A private entity that leases school buses to a school
34	32		district or provides school bus services or supporting
35	33		infrastructure to a school district by contract may apply for and
36	34		receive a grant under the program.
37	35		SECTION 3. Section 390.004, Health and Safety Code, is
38	36		amended by amending Subsections (a), (c), and (d) and adding
39	37		Subsections (a-1) and (a-2) to read as follows:
40	38		(a) The commission by rule shall establish criteria for
41	39		setting priorities for projects eligible to receive grants under
42	40		this chapter. Except as provided by Subsection (a-1), the [The]
43	41		commission shall review and may modify the criteria and priorities
44	42		as appropriate.
45	43		(a-1) The criteria must prioritize projects that achieve
46	44		the greatest reductions in diesel exhaust, especially particulate
47	45		matter.
48	46		(a-2) The commission shall ensure that at least 75 percent
49	47		of the money issued for grants under this chapter is issued for
50	48		projects to purchase electric buses or to convert diesel buses into
51	49		electric buses.
52	50		(c) A school bus proposed for replacement must:
53	51		(1) be of model year 2006 or earlier if the bus will be
54	52		replaced with a combustion engine bus;
55		-	(1-a) be of a model year that is at least ~~six~~ years
	53	+	(1-a) be of a model year that is at least nine years
56	54		older than the year in which the grant application is submitted or
57		-	have an odometer reading at least ~~150~~,000 miles if the bus will be
	55	+	have an odometer reading at least 200,000 miles if the bus will be
58	56		replaced with an electric bus;
59	57		(2) have been owned and operated by the applicant for
60	58		at least the two years before submission of the grant application;
61	59		(3) be in good operational condition; and
62	60		(4) be currently used on a regular, daily route to and
63	61		from a school.
64	62		(d) A school bus proposed for purchase to replace a
65	63		[pre-2007 model year] school bus described by Subsection (c) must
66	64		be of the current model year or the year before the current model
67	65		year at the time of submission of the grant application.
68	66		SECTION 4. Section 390.005(a), Health and Safety Code, is
69	67		amended to read as follows:
70	68		(a) A recipient of a grant under this chapter shall use the
71	69		grant to pay the incremental costs of the project for which the
72	70		grant is made, which may include the reasonable and necessary
73	71		expenses incurred for the labor needed to install
74	72		emissions-reducing equipment or vehicle charging infrastructure.
75	73		The recipient may not use the grant to pay the recipient's
76	74		administrative expenses.
77		-	SECTION 5. Chapter 35, Utilities Code, is amended by adding
78		-	Subchapter F to read as follows:
79		-	SUBCHAPTER F. PUBLIC SCHOOLS
80		-	Sec. 35.201. DEFINITIONS. In this subchapter:
81		-	(1) "Distributed renewable generation" has the
82		-	meaning assigned by Section 39.916.
83		-	(2) "Interconnection" means the right of a person to
84		-	physically connect an energy source and related equipment to an
85		-	electricity distribution system and the technical requirements,
86		-	rules, or processes required for the connection.
87		-	(3) "School energy source" means a source that is:
88		-	(A) on-site distributed renewable generation,
89		-	energy storage, or an electric school bus; and
90		-	(B) owned, leased, or used by a school district
91		-	or open-enrollment charter school.
92		-	Sec. 35.202. USE OF SCHOOL ENERGY SOURCES. (a) A school
93		-	district or open-enrollment charter school that installs electric
94		-	vehicle charging equipment shall contract with an electric
95		-	cooperative, an electric utility, a municipally owned utility, or a
96		-	transmission and distribution utility to:
97		-	(1) install make-ready infrastructure on the
98		-	cooperative's or utility's side of the meter required to facilitate
99		-	interconnection of the electric vehicle charging equipment,
100		-	including a new service connection, transformer, conductor,
101		-	connector, conduit, or meter; and
102		-	(2) provide any necessary construction on the
103		-	cooperative's or utility's side of the meter to comply with local
104		-	regulations related to the charging equipment.
105		-	(b) Electric cooperatives, electric utilities, municipally
106		-	owned utilities, and transmission and distribution utilities shall
107		-	use their best efforts to:
108		-	(1) encourage and facilitate interconnection
109		-	processes for school energy sources; and
110		-	(2) provide information about distribution system
111		-	capacity and needs to a school district or open-enrollment charter
112		-	school, or a person acting on behalf of a school district or
113		-	open-enrollment charter school, to facilitate interconnection of
114		-	school energy sources.
115		-	(c) A school district or open-enrollment charter school, or
116		-	a person acting on behalf of a school district or open-enrollment
117		-	charter school, may:
118		-	(1) provide distribution system grid services,
119		-	including local capacity relief, voltage and VAR support, and local
120		-	frequency control, using a school energy source or a combination of
121		-	school energy sources; and
122		-	(2) receive appropriate compensation for distribution
123		-	grid services provided under Subdivision (1).
124		-	(d) The independent organization certified under Section
125		-	39.151 for the ERCOT power region shall adopt rules or protocols to
126		-	allow a school district or open-enrollment charter school, or a
127		-	person acting on behalf of a school district or open-enrollment
128		-	charter school, to sell energy and ancillary services from school
129		-	energy sources in the wholesale market without registering as a
130		-	power generation company.
131		-	SECTION 6. Subchapter H, Chapter 36, Utilities Code, is
	75	+	SECTION 5. Subchapter H, Chapter 36, Utilities Code, is
132	76		amended by adding Section 36.3531 to read as follows:
133	77		Sec. 36.3531. TIME-OF-USE RATES FOR PUBLIC SCHOOLS. (a)
134	78		Notwithstanding any other provision of this title, each electric
135	79		utility that provides electric service to a retail customer shall
136	80		offer to a school district or open-enrollment charter school served
137	81		by the electric utility time-of-use rates to promote efficient:
138	82		(1) charging of electric school buses; and
139	83		(2) energy use in school buildings.
140	84		(b) Notwithstanding any other provision of this title, each
141	85		transmission and distribution utility in the ERCOT power region
142	86		shall offer to any retail electric provider in its service area that
143	87		serves a school district or open-enrollment charter school a rate
144	88		structure that allows the retail electric provider to offer
145	89		time-of-use rates to the district or school to promote efficient:
146	90		(1) charging of electric school buses; and
147	91		(2) energy use for school buildings.
148		-	SECTION 7. The changes in law made by this Act to Chapter
	92	+	(c) A regulatory authority shall provide a mechanism for
	93	+	approving a tariff in accordance with this section.
	94	+	SECTION 6. Chapter 35, Utilities Code, is amended by adding
	95	+	Subchapter F to read as follows:
	96	+	SUBCHAPTER F. PUBLIC SCHOOLS
	97	+	Sec. 35.201. DEFINITIONS. (a) In this subchapter:
	98	+	(1) "Distributed renewable generation" has the
	99	+	meaning assigned by Section 39.916.
	100	+	(2) "Electric utility" includes a municipally owned
	101	+	utility and an electric cooperative.
	102	+	(3) "Interconnection" means the right of a person to
	103	+	physically connect an energy source and related equipment to an
	104	+	electricity distribution system and the technical requirements,
	105	+	rules, or processes required for the connection.
	106	+	(4) "School energy source" means a source that is:
	107	+	(A) on-site distributed renewable generation,
	108	+	energy storage, or an electric school bus; and
	109	+	(B) owned, leased, or used by a school district
	110	+	or open-enrollment charter school.
	111	+	Sec. 35.202. USE OF SCHOOL ENERGY SOURCES. (a) A school
	112	+	district or open-enrollment charter school may contract with an
	113	+	electric utility to:
	114	+	(1) install make-ready infrastructure on the utility's
	115	+	side of the meter required to facilitate interconnection of
	116	+	electric vehicle charging equipment, including a new service
	117	+	connection, transformer, conductor, connector, conduit, or meter;
	118	+	and
	119	+	(2) provide any necessary construction to comply with
	120	+	local regulations related to the charging equipment.
	121	+	(b) Electric utilities shall use their best efforts to:
	122	+	(1) encourage and facilitate interconnection
	123	+	processes for school energy sources; and
	124	+	(2) provide information about distribution system
	125	+	capacity and needs to market providers of on-site distributed
	126	+	renewable generation, energy storage, and electric school buses.
	127	+	(c) A school district or open-enrollment charter school, or
	128	+	a person acting on behalf of a school district or open-enrollment
	129	+	charter school, may, without registering as a power generation
	130	+	company:
	131	+	(1) provide distribution system grid services using a
	132	+	school energy source or a combination of school energy sources; and
	133	+	(2) receive appropriate compensation for electricity
	134	+	sold under Subdivision (1).
	135	+	(d) The independent organization certified under Section
	136	+	39.151 for the ERCOT power region shall adopt rules or protocols to
	137	+	allow a school district or open-enrollment charter school, or a
	138	+	person acting on behalf of a school district or open-enrollment
	139	+	charter school, to sell energy and ancillary services from school
	140	+	energy sources in the wholesale market without registering as a
	141	+	power generation company.
	142	+	SECTION 7. The changes in law made by this Act in Chapter
149	143		390, Health and Safety Code, apply only to a Texas emissions
150	144		reduction plan grant awarded on or after the effective date of this
151	145		Act. A grant awarded before the effective date of this Act is
152	146		governed by the law in effect on the date the award was made, and the
153	147		former law is continued in effect for that purpose.
154		-	SECTION 8. The changes in law made by this Act to Section
	148	+	SECTION 8. The changes in law made by this Act in Section
155	149		36.3531, Utilities Code, as added by this Act, do not require an
156	150		electric utility to initiate a new ratemaking proceeding. An
157	151		electric utility shall comply with Section 36.3531, Utilities Code,
158	152		as added by this Act, beginning with the electric utility's first
159	153		ratemaking proceeding that begins after the effective date of this
160	154		Act.
161	155		SECTION 9. This Act takes effect September 1, 2021.