87R5594 JRR-D
By: Lozano, Landgraf, Dominguez, Guillen H.B. No. 963
A BILL TO BE ENTITLED
AN ACT
relating to the Texas natural gas vehicle grant program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 394.003, Health and Safety Code, is
amended by amending Subsection (a) and adding Subsection (c) to
read as follows:
(a) A vehicle is a qualifying vehicle that may be considered
for a grant under the program if during the eligibility period
established by the commission the entity:
(1) purchased, leased, or otherwise commercially
financed the vehicle as an [a new] on-road heavy-duty or
medium-duty motor vehicle that:
(A) is a new natural gas vehicle or, subject to
Subsection (c), a used natural gas vehicle;
(B) is certified to the appropriate current
federal emissions standards as determined by the commission; and
(C) replaces an on-road heavy-duty or
medium-duty motor vehicle of the same weight classification and
use; or
(2) repowered the on-road motor vehicle to a natural
gas vehicle powered by a natural gas engine that is certified to the
appropriate current federal emissions standards as determined by
the commission.
(c) A used natural gas vehicle that is proposed to replace
an on-road heavy-duty or medium-duty motor vehicle must be of model
year 2017 or later, provided that the model year may not be more
than six years older than the current model year at the time of the
submission of the grant application.
SECTION 2. Section 394.005(b), Health and Safety Code, is
amended to read as follows:
(b) To be eligible for a grant under the program:
(1) the use of the qualifying vehicle must be
projected to result in a reduction in emissions of nitrogen oxides
of at least 25 percent as compared to the motor vehicle or engine
being replaced, based on:
(A) the baseline emission level set by the
commission under Subsection (g); and
(B) the certified emission rate of the qualifying
[new] vehicle; and
(2) the qualifying vehicle must:
(A) replace a heavy-duty or medium-duty motor
vehicle that:
(i) is an on-road vehicle that has been
owned, leased, or otherwise commercially financed and registered
and operated by the applicant in Texas for at least the two years
immediately preceding the submission of a grant application;
(ii) satisfies any minimum average annual
mileage or fuel usage requirements established by the commission;
(iii) satisfies any minimum percentage of
annual usage requirements established by the commission; and
(iv) is in operating condition and has at
least two years of remaining useful life, as determined in
accordance with criteria established by the commission;
(B) replace a heavy-duty or medium-duty motor
vehicle that:
(i) is owned by the applicant;
(ii) is an on-road vehicle that has been:
(a) owned, leased, or otherwise
commercially financed and operated in Texas as a fleet vehicle for
at least the two years immediately preceding the submission of a
grant application; and
(b) registered in a county located in
the clean transportation zone for at least the two years
immediately preceding the submission of a grant application; and
(iii) otherwise satisfies the mileage,
usage, and useful life requirements established under Paragraph (A)
as determined by documentation associated with the vehicle; or
(C) be a heavy-duty or medium-duty motor vehicle
repowered with a natural gas engine that:
(i) is installed in an on-road vehicle that
has been owned, leased, or otherwise commercially financed and
registered and operated by the applicant in Texas for at least the
two years immediately preceding the submission of a grant
application;
(ii) satisfies any minimum average annual
mileage or fuel usage requirements established by the commission;
(iii) satisfies any minimum percentage of
annual usage requirements established by the commission; and
(iv) is installed in an on-road vehicle
that, at the time of the vehicle's repowering, was in operating
condition and had at least two years of remaining useful life, as
determined in accordance with criteria established by the
commission.
SECTION 3. Section 394.007, Health and Safety Code, is
amended by adding Subsection (a-1) to read as follows:
(a-1) A grant awarded under this chapter for a qualifying
vehicle that is a used natural gas vehicle may not be less than 80
percent of the incremental cost of the vehicle purchase, lease, or
other commercial finance.
SECTION 4. This Act takes effect September 1, 2021.