Texas 2023 88th Regular

Texas House Bill HB2191 Introduced / Bill

Filed 02/10/2023

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                    By: Canales H.B. No. 2191


 A BILL TO BE ENTITLED
 AN ACT
 relating to mobile source emissions reductions and transportation
 electrification.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 SECTION 1.  Subtitle F, Title 4, Government Code, is amended
 by adding Chapter 490J to read as follows:
 CHAPTER 490J. TEXAS TRANSPORTATION ELECTRIFICATION COUNCIL
 Sec. 490J.001.  DEFINITION. In this chapter, "council"
 means the Texas Transportation Electrification Council established
 by this chapter.
 Sec. 490J.002.  ESTABLISHMENT; COMPOSITION. (a)  The Texas
 Transportation Electrification Council is established.
 (b)  The council is composed of the chair of, or if not
 applicable, the administrative head of or a senior-level designee
 from, each of the following entities:
 (1)  the Public Utility Commission of Texas;
 (2)  the Electric Reliability Council of Texas;
 (3)  the Texas Commission on Environmental Quality;
 (4)  the State Energy Conservation Office;
 (5)  the Texas Department of Licensing and Regulation;
 (6)  the Texas Department of Transportation;
 (7)  the Texas Department of Motor Vehicles;
 (8)  the Texas Department of Housing and Community
 Affairs;
 (9)  the Texas State Affordable Housing Corporation;
 (10)  the Texas Division of Emergency Management; and
 (11)  the Texas Economic Development and Tourism
 Office.
 Sec. 490J.003.  PRESIDING OFFICER; MEETINGS. (a) The
 council annually shall elect one member to serve as the presiding
 officer of the council.
 (a-1)  The executive director of the Texas Department of
 Transportation shall serve as the initial presiding officer of the
 council. This subsection expires September 1, 2025.
 (b)  The council shall hold at least four public meetings
 each year.
 Sec. 490J.004.  ADMINISTRATIVE ATTACHMENT; FUNDING.  (a)
 The council is administratively attached to the Texas Department of
 Transportation.
 (b)  The council shall be funded using existing funds of the
 Texas Department of Transportation, including statewide planning
 and research funds.
 Sec. 490J.0045.  ELECTRIC VEHICLE CHARGING INFRASTRUCTURE
 ASSESSMENT. (a)  Not later than March 1, 2024, using existing
 databases, the council shall prepare an assessment of existing and
 planned public electric vehicle charging infrastructure and
 associated technologies in this state, including planned
 infrastructure and associated technologies by private entities.
 The assessment must include the number and types of electric
 vehicle chargers at each location.
 (b)  The council shall use the assessment in developing the
 plan required by Section 490J.005.
 (c)  This section expires September 1, 2030.
 Sec. 490J.005.  ELECTRIC VEHICLE CHARGING INFRASTRUCTURE
 PLAN. (a)  The council shall:
 (1)  develop a comprehensive plan for the development
 of public electric vehicle charging infrastructure and associated
 technologies in this state through the year 2040; and
 (2)  update the plan biennially.
 (b)  The plan must:
 (1)  include a phased implementation of the plan, in
 biennial increments through the year 2030, that complements
 electric vehicle charging infrastructure planned and installed
 pursuant to the Infrastructure Investment and Jobs Act (Pub. L.
 No. 117-58);
 (2)  identify areas in this state for which additional
 public electric vehicle charging infrastructure is needed to ensure
 that the vehicle choice of residents of this state is not
 constrained by a lack of access to adequate public electric vehicle
 charging infrastructure;
 (3)  provide for sufficient public electric vehicle
 charging infrastructure to meet and enable future demand for
 electric vehicles in this state that:
 (A)  ensures that adequate public electric
 vehicle charging infrastructure is available:
 (i)  with sufficient frequency and capacity
 to enable users of electric vehicles of various classes to travel
 border to border and community to community on interstate highways
 and other major roadways in this state;
 (ii)  along evacuation routes and at highway
 rest stops in this state; and
 (iii)  in rural communities, multifamily and
 underserved communities, town centers, commercial and retail
 areas, parks and other publicly owned lands, and other areas that
 are in close proximity to where local electric vehicle users live or
 work;
 (B)  is safe, dependable, serviceable, and
 operational;
 (C)  maximizes the benefits associated with
 transportation electrification;
 (D)  enhances commerce by ensuring an adequate
 distribution of public electric vehicle charging infrastructure is
 available throughout the state to stimulate lower costs and lower
 emissions from heavy duty trucking and delivery services;
 (E)  ensures adequate public electric vehicle
 charging capacity to facilitate commerce and enhance
 electrification of freight movement:
 (i)  at or near the borders of this state;
 (ii)  in or near airports, rail yards, and
 seaports; and
 (iii)  at warehouse complexes and truck
 stops;
 (F)  enhances accessibility of tourist areas to
 electric vehicle users; and
 (G)  covers any other areas identified by the
 council;
 (4)  stimulate competition, innovation, and consumer
 choices in public electric vehicle charging and related
 infrastructure and services and encourage private capital
 investment;
 (5)  specify the number and types of electric vehicle
 chargers per general location that are needed to meet the
 requirements prescribed by Subdivisions (2), (3), and (4);
 (6)  examine vehicle and charging infrastructure
 changes necessary to provide demand response functions and two-way
 electricity flow capability in order to allow vehicle-to-grid
 integration for cost savings, grid reliability, and resiliency; and
 (7)  provide for electric transportation corridors in
 and along Texas Department of Transportation rights-of-way that
 include the infrastructure needed for vehicle electrification,
 such as:
 (A)  a greatly expanded global positioning system
 network for vehicle location accuracy;
 (B)  advanced sensor networks for traffic;
 (C)  intelligent transportation services;
 (D)  connected vehicle applications; and
 (E)  improvements to energy infrastructure needed
 to provide adequate vehicle charging.
 (c)  In developing and updating the plan, the council:
 (1)  shall use, to the extent practicable, publicly
 available electric vehicle projections and models based on industry
 standards to determine, for each year, the percentage and number of
 electric vehicles by vehicle class that are expected on roadways in
 this state and the number of electric vehicle chargers that are
 needed to ensure that there is comprehensive and adequate access to
 public electric vehicle charging infrastructure in this state; and
 (2)  may rely on scenarios provided by the Electric
 Reliability Council of Texas or other information from appropriate
 sources for the percentage and number of electric vehicles by
 vehicle class on roadways in this state by year.
 (d)  The council may work with state agencies and the
 Electric Reliability Council of Texas to obtain information as
 needed to develop or update the plan, including:
 (1)  an assessment of vehicle fleet plans for
 electrification;
 (2)  an assessment of the costs of system upgrades to
 serve new electric grid interconnections, giving consideration to
 resilience, reliability, and other grid impacts; and
 (3)  detailed hosting capacity maps that enable
 identification of preferable least-cost locations for charging
 infrastructure that optimize existing distribution system assets.
 Sec. 490J.006.  STATE AGENCY POLICY RECOMMENDATIONS.  The
 council shall develop policy recommendations that state agencies
 may adopt to encourage the development of an adequate network of
 public electric vehicle charging infrastructure and associated
 technologies to meet the future electrified transportation needs in
 this state through the year 2030.
 Sec. 490J.007.  STAKEHOLDER INPUT.  In performing the
 council's duties under this chapter, the council shall seek advice
 and input from:
 (1)  privately owned electric utilities;
 (2)  municipally owned electric utilities;
 (3)  electric cooperatives;
 (4)  state and local transportation and transit
 agencies;
 (5)  port authorities;
 (6)  warehousing and logistics centers;
 (7)  electric vehicle charging infrastructure
 companies;
 (8)  environmental groups;
 (9)  organizations that represent the interests of
 individuals who live near areas that have a significant amount of
 freight traffic;
 (10)  consumer advocates;
 (11)  motor vehicle manufacturers;
 (12)  nonprofit organizations developing electric
 vehicle policy;
 (13)  nonprofit organizations representing food or
 motor fuel providers;
 (14)  apartment associations;
 (15)  low-income community development corporations;
 (16)  nonprofit organizations that represent
 utilities, electric vehicle manufacturers, and charging companies;
 and
 (17)  interested members of the public.
 Sec. 490J.008.  AUTHORITY TO CONTRACT AND CONSULT WITH
 CERTAIN PERSONS.  In performing the council's duties under this
 chapter, the council may:
 (1)  contract with:
 (A)  electrification organizations; and
 (B)  experts, academic scholars, and other
 appropriate professionals; and
 (2)  consult with the Texas A&M Transportation
 Institute and institutions of higher education, as defined by
 Section 61.003, Education Code.
 Sec. 490J.0085.  INITIAL REPORT. (a) Not later than
 December 1, 2024, the council shall prepare and submit to the
 governor, the lieutenant governor, each member of the legislature,
 and relevant state and federal agencies an initial written report
 of the council's findings that includes:
 (1)  the assessment prepared under Section 490J.0045;
 (2)  the plan developed under Section 490J.005,
 including the phased implementation of the plan required by
 Subsection (b)(1) of that section; and
 (3)  the policy recommendations developed under
 Section 490J.006.
 (b)  This section expires September 1, 2030.
 Sec. 490J.009.  BIENNIAL REPORT. Not later than December 1
 of each even-numbered year, the council shall prepare and submit to
 the governor, the lieutenant governor, each member of the
 legislature, and relevant state and federal agencies a written
 report that includes:
 (1)  a summary of the progress made on the
 implementation of the plan developed under Section 490J.005;
 (2)  the biennial update to the plan required under
 Section 490J.005(a)(2); and
 (3)  any updates to the policy recommendations
 developed under Section 490J.006.
 SECTION 2.  Section 386.001, Health and Safety Code, is
 amended by adding Subdivision (4) to read as follows:
 (4)  "Federal funds" means all assistance provided to
 the commission from the federal government in the form of grants,
 contracts, loans, loan guarantees, property, cooperative
 agreements, interest subsidies, insurance, direct appropriations,
 or any other method of disbursement.
 SECTION 3.  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, including the
 grant program established under Section 386.184;
 (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.
 SECTION 4.  Section 386.152, Health and Safety Code, is
 amended to read as follows:
 Sec. 386.152.  APPLICABILITY. (a) The provisions of this
 subchapter relating to a lessee do not apply to a person who rents
 or leases a light-duty motor vehicle for a term of 30 days or less.
 (b)  The provisions of this subchapter relating to a lessor
 do not apply to a person who rents or leases a light-duty motor
 vehicle to a person for a term of 30 days or less.
 SECTION 5.  Section 386.153, Health and Safety Code, is
 amended by amending Subsection (c) and adding Subsection (e) to
 read as follows:
 (c)  Only one incentive will be provided for each new
 light-duty motor vehicle. The incentive shall be provided to the
 seller or lessor of the vehicle. The seller or lessor shall credit
 the amount of the incentive to the purchaser or lessee at the time
 the sale is made or the lease is entered into. The incentive may not
 [shall] be provided to a seller [the lessee and not to the
 purchaser] if the motor vehicle is sold [purchased] for the purpose
 of leasing the vehicle to another person.
 (e)  The commission shall establish a registration program
 for sellers and lessors of new motor vehicles to apply online and
 receive incentives under this subchapter. The commission shall
 promptly pay the incentives when authorized under the registration
 program established by this subsection.
 SECTION 6.  Section 386.154, Health and Safety Code, is
 amended by amending Subsections (a), (b), and (d) and adding
 Subsections (f) and (g) to read as follows:
 (a)  A new light-duty motor vehicle powered by compressed
 natural gas or liquefied petroleum gas is eligible for a $5,000
 incentive if the vehicle:
 (1)  has four wheels;
 (2)  was originally manufactured to comply with and has
 been certified by an original equipment manufacturer or
 intermediate or final state vehicle manufacturer as complying with,
 or has been altered to comply with, federal motor vehicle safety
 standards, state emissions regulations, and any additional federal
 or state regulations applicable to vehicles powered by compressed
 natural gas or liquefied petroleum gas;
 (3)  was manufactured for use primarily on public
 streets, roads, and highways;
 (4)  has a dedicated or bi-fuel compressed natural gas
 or liquefied petroleum gas fuel system:
 (A)  installed prior to first sale or within 500
 miles of operation of the vehicle following first sale; and
 (B)  with a range of at least 125 miles as
 estimated, published, and updated by the United States
 Environmental Protection Agency;
 (5)  has, as applicable, a:
 (A)  compressed natural gas fuel system that
 complies with the:
 (i)  2013 NFPA 52 Vehicular Gaseous Fuel
 Systems Code; and
 (ii)  American National Standard for Basic
 Requirements for Compressed Natural Gas Vehicle (NGV) Fuel
 Containers, commonly cited as "ANSI/CSA NGV2"; or
 (B)  liquefied petroleum gas fuel system that
 complies with:
 (i)  the 2011 NFPA 58 Liquefied Petroleum
 Gas Code; and
 (ii)  Section VII of the 2013 ASME Boiler and
 Pressure Vessel Code; and
 (6)  was sold or leased [acquired] on or after
 September 1, 2013, or a later date established by the commission, by
 the seller or lessor [person] applying for the incentive under this
 subsection and for use or lease by the purchaser or lessee of the
 vehicle [that person] and not for resale.
 (b)  If the commission determines that an updated version of
 a code or standard described by Subsection (a)(5) is more stringent
 than the version of the code or standard described by Subsection
 (a)(5), the commission by rule may provide that a vehicle for which
 a seller or lessor [person] applies for an incentive under
 Subsection (a) is eligible for the incentive only if the vehicle
 complies with the updated version of the code or standard.
 (d)  A new light-duty motor vehicle powered by an electric
 drive is eligible for a $2,500 incentive if the total
 consideration, as defined by Section 152.002, Tax Code, of the
 vehicle is less than $55,000 and the vehicle:
 (1)  has four wheels;
 (2)  was manufactured for use primarily on public
 streets, roads, and highways;
 (3)  has not been modified from the original
 manufacturer's specifications;
 (4)  has a maximum speed capability of at least 55 miles
 per hour;
 (5)  is propelled to a significant extent by an
 electric motor that draws electricity from a hydrogen fuel cell or
 from a battery that:
 (A)  has a capacity of not less than four kilowatt
 hours; and
 (B)  is capable of being recharged from an
 external source of electricity; [and]
 (6)  is not designed, used, or maintained primarily to
 transport property; and
 (7)  was sold or leased [acquired] on or after
 September 1, 2013, or a later date as established by the commission,
 by the seller or lessor [person] applying for the incentive under
 this subsection and for use or lease by the purchaser or lessee of
 the vehicle [that person] and not for resale.
 (f)  A new light-duty motor vehicle powered by an electric
 drive is eligible for a $4,000 incentive if the vehicle:
 (1)  has four wheels;
 (2)  was manufactured for use primarily on public
 streets, roads, and highways;
 (3)  has not been modified from the original
 manufacturer's specifications;
 (4)  has a maximum speed capability of at least 55 miles
 per hour;
 (5)  is propelled solely by an electric motor that
 draws electricity from a battery that:
 (A)  has a capacity of not less than four kilowatt
 hours; and
 (B)  is capable of being recharged from an
 external source of electricity;
 (6)  is designed, used, or maintained primarily to
 transport property; and
 (7)  was sold or leased on or after September 1, 2024,
 or a later date as established by the commission, by the seller or
 lessor applying for the incentive under this subsection and for use
 or lease by the purchaser or lessee of the vehicle and not for
 resale.
 (g)  Notwithstanding Subsections (c) and (e), and subject to
 Section 386.252(a)(11), at the beginning of the second state fiscal
 year of the biennium, the commission shall adjust the initial
 vehicle limitations provided under Subsections (c) and (e) based on
 demand for incentives under this section during the preceding state
 fiscal year.
 SECTION 7.  Sections 386.157(a) and (c), Health and Safety
 Code, are amended to read as follows:
 (a)  A seller or lessor of [person who purchases or leases] a
 new light-duty motor vehicle described by Section 386.154 and
 listed under Section 386.156(a) is eligible to apply for an
 incentive under this subchapter.
 (c)  To receive money under an incentive program provided by
 this subchapter, the seller or lessor of a light-duty motor vehicle
 shall verify online that funds are available, that the seller or
 lessor is eligible [the purchaser or lessee of a new light-duty
 motor vehicle who is eligible to apply] for an incentive under this
 subchapter, and if the incentive is for a vehicle described by
 Section 386.154(d) or (f), that the purchaser or lessee of the
 vehicle has watched an online video that explains how and when to
 charge an electric vehicle to reduce peak demand for electricity
 and reduce air emissions [shall apply for the incentive in the
 manner provided by law or by rule of the commission].
 SECTION 8.  Section 386.158, Health and Safety Code, is
 amended to read as follows:
 Sec. 386.158.  COMMISSION TO ACCOUNT FOR MOTOR VEHICLE
 PURCHASE OR LEASE INCENTIVES. (a)  The commission by rule shall
 develop a method to administer and account for the motor vehicle
 purchase or lease incentives authorized by this subchapter and to
 pay incentive money to the seller [purchaser] or lessor [lessee] of
 a new motor vehicle[, on application of the purchaser or lessee as
 provided by this subchapter].
 (b)  The commission shall develop and publish online forms
 and instructions for the seller [purchaser] or lessor [lessee] of a
 new motor vehicle to use in applying to the commission for an
 incentive payment under this subchapter. [The commission shall
 make the forms available to new motor vehicle dealers and leasing
 agents. Dealers and leasing agents shall make the forms available
 to their prospective purchasers or lessees.]
 (c)  The commission may require the online submission of
 forms and documentation as needed to verify eligibility for an
 incentive under this subchapter.
 SECTION 9.  Section 386.159, Health and Safety Code, is
 amended to read as follows:
 Sec. 386.159.  PURCHASE OR LEASE INCENTIVES ONLINE PORTAL
 [INFORMATION]. [(a)]  The commission shall establish an online
 portal [a toll-free telephone number available to motor vehicle
 dealers and leasing agents for the dealers and agents to call] to
 verify that incentives are available. [The commission may provide
 for issuing verification numbers over the telephone line.
 [(b)  Reliance by a dealer or leasing agent on information
 provided by the commission is a complete defense to an action
 involving or based on eligibility of a vehicle for an incentive or
 availability of vehicles eligible for an incentive.]
 SECTION 10.  Section 386.160, Health and Safety Code, is
 amended to read as follows:
 Sec. 386.160.  RESERVATION OF INCENTIVES. The commission
 may provide for new motor vehicle sellers [dealers] and leasing
 agents to reserve for a limited time period incentives for eligible
 vehicles [that are not readily available and must be ordered,] if
 the seller [dealer] or leasing agent has a purchase or lease order
 signed by an identified customer.
 SECTION 11.  Section 386.181(b), Health and Safety Code, is
 amended to read as follows:
 (b)  The commission may include more specific definitions in
 the rules or guidelines developed to implement the programs
 [program] established by this subchapter in order to reduce
 emissions in and around seaports in a nonattainment area.
 SECTION 12.  Subchapter D-1, Chapter 386, Health and Safety
 Code, is amended by adding Section 386.184 to read as follows:
 Sec. 386.184. GRANT PROGRAM FOR ALTERNATIVELY FUELED DRAYAGE
 TRUCK OR CARGO HANDLING EQUIPMENT INFRASTRUCTURE PROJECTS. (a)
 The commission shall establish and administer a grant program to
 encourage the purchase, construction, and installation of
 infrastructure needed to support the use of drayage trucks that are
 or cargo handling equipment that is powered by an alternative fuel,
 as defined by Section 393.001.
 (b)  A grant awarded under the program established by this
 section may not exceed more than 80 percent of the estimated
 purchase, construction, and installation costs of the
 infrastructure project, provided that the commission may establish
 a reasonable maximum amount of a grant awarded per infrastructure
 project as needed.
 SECTION 13.  Sections 386.250(b) and (c), Health and Safety
 Code, are amended to read as follows:
 (b)  The fund consists of:
 (1)  the amount of money deposited to the credit of the
 fund under:
 (A)  Section 386.056;
 (B)  Sections 151.0515 and 152.0215, Tax Code; and
 (C)  Sections 501.138, 502.358, and 548.5055,
 Transportation Code; [and]
 (2)  grant money recaptured under Section 386.111(d)
 and Chapter 391; and
 (3)  federal funds deposited to the credit of the fund.
 (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). This subsection does not
 apply to federal funds deposited to the credit of the fund.
 SECTION 14.  Section 386.252, Health and Safety Code, is
 amended by amending Subsection (a) and adding Subsection (i) 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)  eight percent [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, including the grant program established under
 Section 386.184;
 (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.
 (i)  Notwithstanding any other law, federal funds deposited
 to the credit of the fund may be used only as provided by the terms
 of the applicable federal funds agreement.
 SECTION 15.  Section 393.006(a), Health and Safety Code, is
 amended to read as follows:
 (a)  Grants awarded under this chapter for a facility to
 provide alternative fuels other than natural gas may not exceed
 [the lesser of:
 [(1)]  50 percent of the sum of the actual eligible
 costs incurred by the grant recipient within deadlines established
 by the commission[; or
 [(2)  $600,000].
 SECTION 16.  Subtitle A, Title 14, Occupations Code, is
 amended by adding Chapter 2311 to read as follows:
 CHAPTER 2311. ELECTRIC VEHICLE SUPPLY EQUIPMENT
 SUBCHAPTER A. GENERAL PROVISIONS
 Sec. 2311.0101.  DEFINITIONS. In this chapter:
 (1)  "Commercial transaction" means any sale or
 exchange for compensation of electrical energy through a digital
 network.
 (2)  "Commission" means the Texas Commission of
 Licensing and Regulation.
 (3)  "Department" means the Texas Department of
 Licensing and Regulation.
 (4)  "Digital network" means an online-enabled
 application, website, or system offered or used by an electric
 vehicle charging provider that allows a user to initiate a
 commercial transaction to dispense electrical energy from electric
 vehicle supply equipment to an electric vehicle.
 (5)  "Electric vehicle supply equipment" means a device
 or equipment used to dispense electrical energy to an electric
 vehicle.
 (6)  "Electric vehicle supply provider" means an owner
 or operator of electric vehicle supply equipment that is available
 and accessible to the public to provide electrical energy through a
 commercial transaction.
 SUBCHAPTER B. POWERS AND DUTIES
 Sec. 2311.0201.  RULES.  The commission shall adopt rules as
 necessary to implement this chapter.
 Sec. 2311.0202.  FEES. The commission by rule shall set fees
 in amounts sufficient to cover the costs of administering this
 chapter.
 Sec. 2311.0203.  CONTRACT. The department may contract to
 perform the department's duties related to electric vehicle supply
 equipment, including inspections. A reference in this chapter to
 the commission or department in the context of a contracted service
 means the contractor.
 Sec. 2311.0204.  INSPECTION OF ELECTRIC VEHICLE SUPPLY
 EQUIPMENT. The department may periodically, or in response to a
 complaint, conduct an inspection of electric vehicle supply
 equipment in order to verify compliance with registration
 requirements and standards established in this chapter and
 commission rules, unless electric vehicle supply equipment is
 exempt from the application of this chapter by commission rule.
 Sec. 2311.0205.  COMPLAINTS REGARDING ELECTRIC VEHICLE
 SUPPLY EQUIPMENT. In accordance with Chapter 51, the executive
 director of the department shall establish methods by which
 consumers are notified of the name, Internet website address,
 mailing address, and telephone number of the department for the
 purpose of directing complaints to the department.
 Sec. 2311.0206.  EXEMPTIONS. (a)  The commission by rule may
 exempt electric vehicle supply equipment from a requirement
 established by this chapter if the commission determines that
 imposing or enforcing the requirement:
 (1)  is not cost-effective for the department;
 (2)  is not feasible with current resources or
 standards; or
 (3)  will not substantially benefit or protect
 consumers.
 (b)  Electric vehicle supply equipment is exempt from the
 requirements of this chapter if, in accordance with commission
 rule, the electric vehicle supply equipment is:
 (1)  installed in or adjacent to a private residence
 for noncommercial use; or
 (2)  provided at no charge for the exclusive use of an
 individual, or a group of individuals, including employees,
 tenants, visitors, or residents of a multiunit housing or office
 development.
 SUBCHAPTER C. OPERATION OF ELECTRIC VEHICLE SUPPLY EQUIPMENT
 Sec. 2311.0301.  DUTIES OF ELECTRIC VEHICLE SUPPLY PROVIDER.
 Unless electric vehicle supply equipment is exempt from the
 application of this chapter or has been removed from service, an
 electric vehicle supply provider shall:
 (1)  have electric vehicle supply equipment inspected
 as prescribed by commission rule; and
 (2)  maintain electric vehicle supply equipment in
 compliance with maintenance specifications, this chapter, and
 commission rule.
 Sec. 2311.0302.  REQUIRED REGISTRATION.  (a)  Unless
 electric vehicle supply equipment is exempt from the application of
 this chapter by commission rule, an electric vehicle supply
 provider shall register each charging unit of electric vehicle
 supply equipment operated by the provider with the department
 before the electric vehicle supply equipment is made available for
 use on a digital network for a commercial transaction.
 (b)  The department shall issue a registration to each
 applicant that meets the requirements of this chapter and submits
 an application that meets the requirements of this section. An
 application for electric vehicle supply equipment registration
 must:
 (1)  be submitted to the department in a manner
 prescribed by the department;
 (2)  be accompanied by any other document or form
 required by the department;
 (3)  include any fee required under Section 2311.0202;
 and
 (4)  include documentation of compliance with Section
 2311.0303, as prescribed by commission rule.
 (c)  A registration under this section is valid for one or
 two years as established by commission rule. The registration must
 be renewed at or before the end of each registration period.
 Sec. 2311.0303.  SPECIFICATIONS. (a)  Specifications for
 the installation and operation of electric vehicle supply equipment
 must be the same as those adopted by the National Institute of
 Standards and Technology.
 (b)  Electric vehicle supply equipment must be installed and
 operated in accordance with Chapter 1305.
 (c)  The commission may adopt rules as necessary to establish
 standards under this chapter.
 Sec. 2311.0304.  FEES; DISCLOSURES.  (a)  An electric
 vehicle supply provider shall disclose on the indicating element of
 the electric vehicle supply equipment or on the electric vehicle
 supply provider's digital network:
 (1)  the fee calculation method or methods; and
 (2)  applicable surcharges.
 (b)  Before the user begins charging, the electric vehicle
 supply provider shall disclose:
 (1)  the rate the user will be charged at the time of
 the transaction based on the available fee calculation method or
 methods; and
 (2)  a list of applicable surcharges.
 (c)  In accordance with commission rule, an electric vehicle
 supply provider shall show on the indicating element of the
 provider's electric vehicle supply equipment or on the provider's
 digital network a notice to consumers that:
 (1)  states that the department regulates electric
 vehicle supply equipment; and
 (2)  provides information on filing a complaint with
 the department about electric vehicle supply equipment.
 Sec. 2311.0305.  ELECTRONIC RECEIPT. After a reasonable
 period following the completion of a commercial transaction for
 electric vehicle charging, on request of a user, the electric
 vehicle supply provider shall transmit an electronic summary that
 includes:
 (1)  the date and time of the transaction;
 (2)  the physical location of the electric vehicle
 supply equipment;
 (3)  the duration of and kilowatt hours provided during
 the transaction; and
 (4)  an itemization of the total fees paid, including
 surcharges, if applicable.
 Sec. 2311.0306.  REPAIR OF DAMAGED ELECTRIC VEHICLE SUPPLY
 EQUIPMENT. (a)  An electric vehicle supply provider shall:
 (1)  remove from operation in a manner that prevents
 use and access by the public, in accordance with commission rules,
 electric vehicle supply equipment that poses a safety risk; and
 (2)  remove electric vehicle supply equipment that
 poses a safety risk from the electric vehicle supply provider's
 digital network listing of available charging units.
 (b)  If the department determines that electric vehicle
 supply equipment poses a safety risk, the department shall place a
 tag or other mark with the words "Out of Order" on the electric
 vehicle supply equipment.
 (c)  An electric vehicle supply provider may not return
 electric vehicle supply equipment to operation until the equipment
 has been repaired in accordance with manufacturer specifications
 and commission rule.
 SUBCHAPTER D. ENFORCEMENT
 Sec. 2311.0401.  DISCIPLINARY ACTION. A person is subject
 to the denial of an application, imposition of an administrative
 penalty under Subchapter F, Chapter 51, or disciplinary action
 under Section 51.353 if the person engages in a commercial
 transaction in violation of this chapter or a rule adopted under
 this chapter.
 Sec. 2311.0402.  ADMINISTRATIVE PROCEDURES. A proceeding
 for the denial of a registration or a disciplinary action or an
 appeal from that proceeding is governed by Chapter 2001, Government
 Code.
 SECTION 17.  (a) The Texas Commission of Licensing and
 Regulation shall adopt rules necessary to implement the changes in
 law made by this Act not later than December 1, 2024.
 (b)  Notwithstanding any other provision of this Act,
 electric vehicle supply equipment installed before December 31,
 2023, is exempt from the requirements of Section 2311.0303,
 Occupations Code, as added by this Act, until the fifth anniversary
 of the date the rules described by Subsection (a) of this section
 are adopted.
 SECTION 18.  (a) The Texas Department of Licensing and
 Regulation may establish and lead a stakeholder work group to
 provide input, advice, and recommendations on the activities under
 this Act. The Texas Department of Licensing and Regulation shall
 establish the size, composition, and scope of the stakeholder work
 group.
 (b)  This section expires on December 1, 2024.
 SECTION 19.  (a) An electric vehicle supply provider shall
 register all of the provider's electric vehicle supply equipment in
 operation in this state not later than March 1, 2025.
 (b)  Electric vehicle supply equipment installed in this
 state before the effective date of this Act must be operated in
 compliance with manufacturer specifications, Chapter 2311,
 Occupations Code, as added by this Act, and Texas Commission of
 Licensing and Regulation rules not later than March 1, 2028.
 (c)  Electric vehicle supply equipment installed on or after
 September 1, 2023, and before March 1, 2025, must be operated in
 compliance with manufacturer specifications, Chapter 2311,
 Occupations Code, as added by this Act, and Texas Commission of
 Licensing and Regulation rules not later than March 1, 2025.
 (d)  Electric vehicle supply equipment installed on or after
 March 1, 2025, must be operated in compliance with manufacturer
 specifications, Chapter 2311, Occupations Code, as added by this
 Act, and Texas Commission of Licensing and Regulation rules, and be
 registered with the Texas Department of Licensing and Regulation
 prior to operation.
 SECTION 20.  The Texas Transportation Electrification
 Council shall submit its first report under Section 490J.009,
 Government Code, as added by this Act, not later than December 1,
 2026.
 SECTION 21.  The changes in law made by this Act to
 Subchapter D, Chapter 386, Health and Safety Code, apply only to an
 incentive awarded on or after September 1, 2024. An incentive
 awarded before September 1, 2024, 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 22.  The change in law made by this Act to Section
 393.006, Health and Safety Code, applies only to a grant awarded on
 or after September 1, 2023. A grant awarded before September 1,
 2023, 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 23.  (a) Except as provided by Subsection (b), this
 Act takes effect September 1, 2023.
 (b)  Section 21 of this Act and the changes in law made by
 this Act to Subchapter D, Chapter 386, Health and Safety Code, other
 than Section 386.154(g), take effect September 1, 2024.