By: Gutierrez S.B. No. 622
A BILL TO BE ENTITLED
AN ACT
relating to the new technology implementation grant program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 386.252(a), Health and Safety Code, is
amended to read as follows:
Sec. 386.252. USE OF FUND. (a) Money in the fund 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 appropriated to the commission 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) six [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) two [five] percent may be used for the 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 $8 million is
allocated to 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 is allocated to 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 2. Section 391.002, Health and Safety Code, is
amended to read as follows:
Sec. 391.002. GRANT PROGRAM. (a) The commission shall
establish and administer a new technology implementation grant
program to assist the implementation of new technologies to reduce
emissions from facilities and other stationary sources in this
state. The commission may establish a minimum capital expenditure
threshold for projects under Subsection (b)(2). Under the program,
the commission shall provide grants or other financial incentives
for eligible projects to offset the incremental cost of emissions
reductions.
(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 3. Section 391.205, Health and Safety Code, is
amended to read as follows:
Sec. 391.205. PREFERENCES. (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) systems that reduce flaring emissions and other
site emissions.
(b) Projects that include more than one of the criteria
described by Subsection (a) shall be given a greater preference in
the award of grants under this chapter.
(c) The commission may give preference under Subsection (a)
only if the cost-effectiveness and emission performance of the
project are comparable to those of a project not claiming a
preference described by that subsection.
SECTION 4. 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, rental 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 5. 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 6. This Act takes effect September 1, 2021.