87R9425 JXC-D
By: Hefner H.B. No. 4384
A BILL TO BE ENTITLED
AN ACT
relating to the replacement of the light-duty motor vehicle
purchase or lease incentive program with the gas flaring and
venting reduction program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2158.001(3) and (4), Government Code,
are amended to read as follows:
(3) "Light-duty motor vehicle" has the meaning
assigned by Section 392.001 [386.151], Health and Safety Code.
(4) "Motor vehicle" has the meaning assigned by
Section 392.001 [386.151], Health and Safety Code.
SECTION 2. 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 gas flaring and venting reduction [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 clean fleet program established under Chapter
392;
(11) the alternative fueling facilities program
established under Chapter 393;
(12) the 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.
SECTION 3. The heading to Subchapter D, Chapter 386, Health
and Safety Code, is amended to read as follows:
SUBCHAPTER D. GAS FLARING AND VENTING REDUCTION [MOTOR VEHICLE
PURCHASE OR LEASE INCENTIVE] PROGRAM
SECTION 4. Section 386.151, Health and Safety Code, is
amended to read as follows:
Sec. 386.151. DEFINITIONS. In this subchapter:
(1) "Flare" means to burn a flare to consume gas that
otherwise would be permitted to escape into the open air from a well
producing oil or gas ["Light-duty motor vehicle" means a motor
vehicle with a gross vehicle weight rating of less than 10,000
pounds].
(2) "Vent" means to vent gas into the open air from a
well producing oil or gas ["Motor vehicle" means a self-propelled
device designed for transporting persons or property on a public
highway that is required to be registered under Chapter 502,
Transportation Code].
SECTION 5. Subchapter D, Chapter 386, Health and Safety
Code, is amended by adding Section 386.1511 to read as follows:
Sec. 386.1511. REBATES FOR GAS FLARING AND VENTING
REDUCTION TECHNOLOGY. (a) The commission shall:
(1) develop a grant program to encourage the purchase
and use of technology that reduces the need to flare or vent gas
from a well producing oil or gas;
(2) publish a list of types of technology eligible for
grants under this subchapter; and
(3) adopt rules necessary to implement the program.
(b) The commission shall:
(1) award grants under this subchapter in the form of
rebates;
(2) assign a rebate amount or percentage for each type
of technology eligible for a rebate; and
(3) allow for processing rebates on an ongoing
first-come, first-served basis.
(c) The commission may administer the rebate grants or may
designate another entity to administer the grants.
SECTION 6. Section 386.252(a), Health and Safety Code, as
effective September 1, 2021, is 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 $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 gas flaring and
venting reduction [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.
SECTION 7. Sections 392.001(6) and (7), Health and Safety
Code, are amended to read as follows:
(6) "Light-duty motor vehicle" means a motor vehicle
with a gross vehicle weight rating of less than 10,000 pounds [has
the meaning assigned by Section 386.151].
(7) "Motor vehicle" means a self-propelled device
designed for transporting persons or property on a public highway
that is required to be registered under Chapter 502, Transportation
Code [has the meaning assigned by Section 386.151].
SECTION 8. Section 394.001(7), Health and Safety Code, is
amended to read as follows:
(7) "Motor vehicle" has the meaning assigned by
Section 392.001 [386.151].
SECTION 9. The following provisions of the Health and
Safety Code are repealed:
(1) Section 386.152;
(2) Section 386.153;
(3) Section 386.154;
(4) Section 386.155;
(5) Section 386.156;
(6) Section 386.157;
(7) Section 386.158;
(8) Section 386.159; and
(9) Section 386.160.
SECTION 10. The changes in law made by this Act do not apply
to a grant issued before the effective date of this Act. A grant
issued under Subchapter D, Chapter 386, Health and Safety Code,
before the effective date of this Act is governed by that subchapter
as it existed immediately before the effective date of this Act, and
the former law is continued in effect for that purpose.
SECTION 11. This Act takes effect September 1, 2021.