By: Landgraf, Bell of Montgomery H.B. No. 4472
(Senate Sponsor - Birdwell)
(In the Senate - Received from the House May 17, 2021;
May 17, 2021, read first time and referred to Committee on Natural
Resources & Economic Development; May 24, 2021, reported
adversely, with favorable Committee Substitute by the following
vote: Yeas 9, Nays 0; May 24, 2021, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 4472 By: Birdwell
A BILL TO BE ENTITLED
AN ACT
relating to the Texas emissions reduction plan.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 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 Texas clean fleet program established under
Chapter 392;
(11) the Texas alternative fueling facilities program
established under Chapter 393;
(12) the Texas 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; and
(19) remittance of funds to the state highway fund for
use by the Texas Department of Transportation for congestion
mitigation and air quality improvement projects in nonattainment
areas and affected counties.
SECTION 2. Section 386.057, Health and Safety Code, is
amended by adding Subsection (e) to read as follows:
(e) Not later than October 1 of each year, the Texas
Department of Transportation shall report to the commission the
following information for all congestion mitigation and air quality
improvement projects in nonattainment areas and affected counties
that are planned to be funded, or received initial funding during
the preceding 10 years, from money received by the department under
this chapter:
(1) projects to mitigate congestion and improve air
quality that are currently planned;
(2) projects to mitigate congestion and improve air
quality that have been completed;
(3) estimated emissions reductions for all planned and
completed congestion mitigation projects; and
(4) estimated cost per ton analysis of reduced
emissions of nitrogen oxides, particulate matter, or volatile
organic compounds for each congestion mitigation project planned or
completed.
SECTION 3. Sections 386.104(c) and (c-1), Health and Safety
Code, are amended to read as follows:
(c) Except as otherwise provided by this subsection, for a
proposed project as described by Section 386.102(b), [other than a
project involving a marine vessel or engine,] not less than 75
percent of vehicle miles traveled or hours of operation projected
for the five years immediately following the award of a grant must
be projected to take place in a nonattainment area or affected
county of this state. The commission may set the minimum percentage
of vehicle miles traveled or hours of operation required to take
place in a nonattainment area or affected county at a percentage and
for a period that is different from the percentage and period
specified by this subsection, provided that the commission may not
set the minimum percentage at a level that is less than 55 percent.
The commission may allow vehicle travel on highways and roadways,
or portions of a highway or roadway, designated by the commission
and located outside a nonattainment area or affected county to
count towards the percentage of use requirement in this subsection.
(c-1) For a proposed project involving a marine vessel or
engine, the vessel or engine must be operated in the intercoastal
waterways or bays adjacent to a nonattainment area or affected
county of this state for a sufficient percentage [amount] of time
over the lifetime of the project, as determined by the commission,
to meet the cost-effectiveness requirements of Section 386.105.
The percentage determined by the commission under this subsection
may not be less than 55 percent.
SECTION 4. Section 386.250(c), Health and Safety Code, as
effective September 1, 2021, is amended to read as follows:
(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 state highway fund for
use by the Texas Department of Transportation for projects
described by Section 386.051(b)(19) [Texas emissions reduction
plan account].
SECTION 5. Section 386.251(c), Health and Safety Code, as
effective September 1, 2021, is amended to read as follows:
(c) The account consists of its accumulated balance [and the
amount of money transferred to the account under Section
386.250(c)].
SECTION 6. Section 386.252, Health and Safety Code, as
effective September 1, 2021, is amended by amending Subsection (a)
and adding Subsection (a-1) 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) and after remittance to the state highway fund under
Subsection (a-1), 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 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.
(a-1) The commission shall remit not less than 35 percent of
the amount deposited to the credit of the fund to the state highway
fund for use by the Texas Department of Transportation for projects
described by Section 386.051(b)(19).
SECTION 7. Section 391.002(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) advanced clean energy projects, as defined by
Section 382.003;
(2) new technology projects that reduce emissions of
regulated pollutants from stationary sources;
(3) new technology projects that reduce emissions from
upstream and midstream oil and gas production, completions,
gathering, storage, processing, and transmission activities
through:
(A) the replacement, repower, or retrofit of
stationary compressor engines;
(B) the installation of systems to reduce or
eliminate the loss of gas, flaring of gas, or burning of gas using
other combustion control devices; or
(C) the installation of systems that reduce
flaring emissions and other site emissions [by capturing waste heat
to generate electricity solely for on-site service]; and
(4) electricity storage projects related to renewable
energy, including projects to store electricity produced from wind
and solar generation that provide efficient means of making the
stored energy available during periods of peak energy use.
SECTION 8. Section 391.205(a), Health and Safety Code, is
amended to read as follows:
(a) Except as provided by Subsection (c), in awarding grants
under this chapter the commission shall give preference to projects
that:
(1) involve the transport, use, recovery for use, or
prevention of the loss of natural resources originating or produced
in this state;
(2) contain an energy efficiency component;
(3) include the use of solar, wind, or other renewable
energy sources; [or]
(4) recover waste heat from the combustion of natural
resources and use the heat to generate electricity; or
(5) reduce flaring emissions and other site emissions.
SECTION 9. Section 391.301, Health and Safety Code, is
amended to read as follows:
Sec. 391.301. RESTRICTION ON USE OF GRANT. A recipient of a
grant under this chapter must use the grant to pay the incremental
costs of the purchase, lease, or [and] installation of the project
for which the grant is made, which may include reasonable and
necessary expenses for the labor needed to install
emissions-reducing equipment. The recipient may [not] use the
grant for the costs of operating and maintaining the
emissions-reducing equipment.
SECTION 10. Section 501.138, Transportation Code, is
amended by amending Subsections (b-1), (b-2), and (b-3) and adding
Subsection (b-4) to read as follows:
(b-1) Except as provided by Subsection (b-4), fees [Fees]
collected under Subsection (b) to be sent to the comptroller shall
be deposited to the credit of the Texas [Mobility Fund, except that
$5 of each fee imposed under Subsection (a)(1) and deposited on or
after September 1, 2008, and before September 1, 2015, shall be
deposited to the credit of the Texas] emissions reduction plan
fund.
(b-2) The comptroller shall establish a record of the amount
of the fees deposited to the credit of the Texas emissions reduction
plan fund [Mobility Fund] under Subsection (b-1). On or before the
fifth workday of each month, the Texas Department of Transportation
shall remit to the comptroller for deposit to the credit of the
Texas Mobility Fund [emissions reduction plan fund] an amount of
money equal to the amount of the fees deposited by the comptroller
to the credit of the Texas emissions reduction plan fund [Mobility
Fund] under Subsection (b-1) in the preceding month. The Texas
Department of Transportation shall use for remittance to the
comptroller as required by this subsection money in the state
highway fund that is not required to be used for a purpose specified
by Section 7-a, Article VIII, Texas Constitution, and may not use
for that remittance money received by this state under the
congestion mitigation and air quality improvement program
established under 23 U.S.C. Section 149.
(b-3) This subsection and Subsections (b-1) and
[Subsection] (b-2) expire on the last day of the state fiscal
biennium during which the Texas Commission on Environmental Quality
publishes in the Texas Register the notice required by Section
382.037, Health and Safety Code.
(b-4) Fees collected under Subsection (b) to be sent to the
comptroller shall be deposited to the credit of the Texas Mobility
Fund if the fees are collected on or after the last day of the state
fiscal biennium during which the Texas Commission on Environmental
Quality publishes in the Texas Register the notice required by
Section 382.037, Health and Safety Code.
SECTION 11. The changes in law made by this Act 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 12. The change in law made by this Act to Section
501.138, Transportation Code, applies only to a fee collected on or
after the effective date of this Act. A fee collected before the
effective date of this Act is governed by the law in effect when the
fee was collected, and the former law is continued in effect for
that purpose.
SECTION 13. This Act takes effect September 1, 2021.
* * * * *