By: Landgraf H.B. No. 3100
A BILL TO BE ENTITLED
AN ACT
relating to the creation of a hydrogen infrastructure and vehicle
grant 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, 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 Texas hydrogen infrastructure and vehicle
grant program established under Subchapter G.
SECTION 2. Section 386.252(a), Health and Safety Code, 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) not more than $8 million may be used for the Texas
hydrogen infrastructure and vehicle grant program established
under Subchapter G; 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 386, Health and Safety Code, is amended
by adding Subchapter G to read as follows:
SUBCHAPTER G. TEXAS HYDROGEN INFRASTRUCTURE AND VEHICLE GRANT
PROGRAM
Sec. 386.301. DEFINITIONS. In this subchapter:
(1) "Hydrogen vehicle" means a motor vehicle that uses
hydrogen to operate the vehicle, including through the use of
hydrogen fuel cells or an internal combustion engine that runs on
hydrogen.
(2) "Program" means the Texas hydrogen infrastructure
and vehicle grant program established under this subchapter.
Sec. 386.302. PROGRAM. (a) The commission shall establish
and administer the Texas hydrogen infrastructure and vehicle grant
program to encourage the adoption of hydrogen infrastructure and
vehicles. Under the program, the commission shall provide funding
for eligible projects to offset the incremental cost of projects
that reduce emissions of oxides of nitrogen from high-emitting
sources in the state. The commission shall determine the
eligibility of projects.
(b) Projects that may be considered for a grant under the
program include:
(1) implementation of hydrogen infrastructure
projects;
(2) purchase or lease of on-road or non-road hydrogen
vehicles;
(3) replacement of on-road or non-road vehicles with
newer on-road or non-road hydrogen vehicles; and
(4) use of hydrogen fuel.
(c) A project listed in Subsection (b) is not eligible if it
is required by any state or federal law, rule or regulation,
memorandum of agreement, or other legally binding document. This
subsection does not apply to:
(1) an otherwise qualified project, regardless of the
fact that the state implementation plan assumes that the change in
equipment, vehicles, or operations will occur, if on the date the
grant is awarded the change is not required by any state or federal
law, rule or regulation, memorandum of agreement, or other legally
binding document; or
(2) the purchase of a hydrogen vehicle or facility
required only by local law or regulation or by corporate or
controlling board policy of a public or private entity.
Sec. 386.303. APPLICATION PACKAGE. (a) The commission
shall develop a simple, standardized application package for grants
under this subchapter. The package must include:
(1) an application form;
(2) a brief description of:
(A) the program;
(B) the projects that are eligible for available
funding;
(C) the selection criteria and evaluation
process; and
(D) the required documentation;
(3) the name of a person or office to contact for more
information;
(4) an example of the contract that an applicant will
be required to execute before receiving a grant; and
(5) any other information the commission considers
useful to inform the applicant and expedite the application
process.
(b) The application form shall require as much information
as the commission determines is necessary to properly evaluate each
project but shall otherwise minimize the information required.
Sec. 386.304. APPLICATION REVIEW PROCEDURES. (a) The
commission shall review an application for a grant for a project
authorized under this subchapter. If the commission determines
that an application is incomplete, the commission shall notify the
applicant with an explanation of what is missing from the
application. The commission shall evaluate the completed
application according to the appropriate project criteria. Subject
to available funding, the commission shall make a final
determination on an application as soon as possible.
(b) The commission shall make every effort to expedite the
application review process and to award grants to qualified
projects in a timely manner. To the extent possible, the commission
shall coordinate project review and approval with any timing
constraints related to project purchases or installations to be
made by an applicant.
(c) The commission may deny an application for a project
that does not meet the applicable project criteria or that the
commission determines is not made in good faith, is not credible, or
is not in compliance with this chapter and the goals of this
chapter.
(d) Subject to availability of funds, the commission shall
award a grant under this subchapter in conjunction with the
execution of a contract that obligates the commission to make the
grant and the recipient to perform the actions described in the
recipient's grant application. The contract must incorporate
provisions for recapturing grant money in proportion to any loss of
emissions reductions compared with the volume of emissions
reductions that was projected in awarding the grant. Grant money
recaptured under the contract provision shall be deposited in the
fund and reallocated for other projects under this chapter.
SECTION 4. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.