87S10833 JRR-F
By: Reynolds H.B. No. 246
A BILL TO BE ENTITLED
AN ACT
relating to the creation of an energy efficiency loan guarantee
program under 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, as
effective September 1, 2021, 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);
(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; and
(20) the energy efficiency loan guarantee program
established under Section 388.013.
SECTION 2. 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) 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) at least $1 million and not more than $5 million
shall be allocated for the energy efficiency loan guarantee program
established under Section 388.013; and
(15) 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 3. Chapter 388, Health and Safety Code, is amended
by adding Section 388.013 to read as follows:
Sec. 388.013. ENERGY EFFICIENCY LOAN GUARANTEE PROGRAM.
(a) The comptroller and the State Energy Conservation Office by
rule shall establish and administer a program that issues or
guarantees loans to be used for improvements that increase the
energy efficiency of residences that are not newly constructed.
(b) Rules adopted under this section must establish
eligibility requirements for receipt of a loan issued or guaranteed
under this section, including emissions reduction
cost-effectiveness criteria.
(c) The State Energy Conservation Office annually shall
submit to the commission and the laboratory a report that:
(1) evaluates the effectiveness of the program
established under this section; and
(2) quantifies energy savings and emissions
reductions as a result of this program for consideration in the
state implementation plan for emissions reduction credit.
SECTION 4. Section 389.002, Health and Safety Code, is
amended to read as follows:
Sec. 389.002. USE OF CERTAIN INFORMATION FOR FEDERAL
RECOGNITION OF EMISSIONS REDUCTIONS. The commission, using
information derived from the reports to the commission under
Sections 386.205, 388.003(e), [and] 388.006, and 388.013, shall
take all appropriate and necessary actions so that emissions
reductions achieved by means of activities under Chapters 386 and
388 are credited by the United States Environmental Protection
Agency to the appropriate emissions reduction objectives in the
state implementation plan.
SECTION 5. This Act takes effect on the 91st day after the
last day of the legislative session.