Texas 2023 - 88th Regular

Texas House Bill HB3100 Compare Versions

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1	1	By: Landgraf H.B. No. 3100
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the creation of a hydrogen infrastructure and vehicle
7	7	grant program under the Texas emissions reduction plan.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 386.051(b), Health and Safety Code, is
10	10	amended to read as follows:
11	11	(b) Under the plan, the commission and the comptroller shall
12	12	provide grants or other funding for:
13	13	(1) the diesel emissions reduction incentive program
14	14	established under Subchapter C, including for infrastructure
15	15	projects established under that subchapter;
16	16	(2) the motor vehicle purchase or lease incentive
17	17	program established under Subchapter D;
18	18	(3) the air quality research support program
19	19	established under Chapter 387;
20	20	(4) the clean school bus program established under
21	21	Chapter 390;
22	22	(5) the new technology implementation grant program
23	23	established under Chapter 391;
24	24	(6) the regional air monitoring program established
25	25	under Section 386.252(a);
26	26	(7) a health effects study as provided by Section
27	27	386.252(a);
28	28	(8) air quality planning activities as provided by
29	29	Section 386.252(d);
30	30	(9) a contract with the Energy Systems Laboratory at
31	31	the Texas A&M Engineering Experiment Station for computation of
32	32	creditable statewide emissions reductions as provided by Section
33	33	386.252(a);
34	34	(10) the Texas clean fleet program established under
35	35	Chapter 392;
36	36	(11) the Texas alternative fueling facilities program
37	37	established under Chapter 393;
38	38	(12) the Texas natural gas vehicle grant program
39	39	established under Chapter 394;
40	40	(13) other programs the commission may develop that
41	41	lead to reduced emissions of nitrogen oxides, particulate matter,
42	42	or volatile organic compounds in a nonattainment area or affected
43	43	county;
44	44	(14) other programs the commission may develop that
45	45	support congestion mitigation to reduce mobile source ozone
46	46	precursor emissions;
47	47	(15) the seaport and rail yard areas emissions
48	48	reduction program established under Subchapter D-1;
49	49	(16) conducting research and other activities
50	50	associated with making any necessary demonstrations to the United
51	51	States Environmental Protection Agency to account for the impact of
52	52	foreign emissions or an exceptional event;
53	53	(17) studies of or pilot programs for incentives for
54	54	port authorities located in nonattainment areas or affected
55	55	counties as provided by Section 386.252(a);
56	56	(18) the governmental alternative fuel fleet grant
57	57	program established under Chapter 395; [and]
58	58	(19) remittance of funds to the state highway fund for
59	59	use by the Texas Department of Transportation for congestion
60	60	mitigation and air quality improvement projects in nonattainment
61	61	areas and affected counties; and
62	62	(20) the Texas hydrogen infrastructure and vehicle
63	63	grant program established under Subchapter G.
64	64	SECTION 2. Section 386.252(a), Health and Safety Code, is
65	65	amended to read as follows:
66	66	(a) Money in the fund and account may be used only to
67	67	implement and administer programs established under the plan.
68	68	Subject to the reallocation of funds by the commission under
69	69	Subsection (h) and after remittance to the state highway fund under
70	70	Subsection (a-1), money from the fund and account to be used for the
71	71	programs under Section 386.051(b) shall initially be allocated as
72	72	follows:
73	73	(1) four percent may be used for the clean school bus
74	74	program under Chapter 390;
75	75	(2) three percent may be used for the new technology
76	76	implementation grant program under Chapter 391, from which at least
77	77	$1 million will be set aside for electricity storage projects
78	78	related to renewable energy;
79	79	(3) five percent may be used for the Texas clean fleet
80	80	program under Chapter 392;
81	81	(4) not more than $3 million may be used by the
82	82	commission to fund a regional air monitoring program in commission
83	83	Regions 3 and 4 to be implemented under the commission's oversight,
84	84	including direction regarding the type, number, location, and
85	85	operation of, and data validation practices for, monitors funded by
86	86	the program through a regional nonprofit entity located in North
87	87	Texas having representation from counties, municipalities, higher
88	88	education institutions, and private sector interests across the
89	89	area;
90	90	(5) 10 percent may be used for the Texas natural gas
91	91	vehicle grant program under Chapter 394;
92	92	(6) not more than $6 million may be used for the Texas
93	93	alternative fueling facilities program under Chapter 393, of which
94	94	a specified amount may be used for fueling stations to provide
95	95	natural gas fuel, except that money may not be allocated for the
96	96	Texas alternative fueling facilities program for the state fiscal
97	97	year ending August 31, 2019;
98	98	(7) not more than $750,000 may be used each year to
99	99	support research related to air quality as provided by Chapter 387;
100	100	(8) not more than $200,000 may be used for a health
101	101	effects study;
102	102	(9) at least $6 million but not more than $16 million
103	103	may be used by the commission for administrative costs, including
104	104	all direct and indirect costs for administering the plan, costs for
105	105	conducting outreach and education activities, and costs
106	106	attributable to the review or approval of applications for
107	107	marketable emissions reduction credits;
108	108	(10) six percent may be used by the commission for the
109	109	seaport and rail yard areas emissions reduction program established
110	110	under Subchapter D-1;
111	111	(11) five percent may be used for the light-duty motor
112	112	vehicle purchase or lease incentive program established under
113	113	Subchapter D;
114	114	(12) not more than $216,000 may be used by the
115	115	commission to contract with the Energy Systems Laboratory at the
116	116	Texas A&M Engineering Experiment Station annually for the
117	117	development and annual computation of creditable statewide
118	118	emissions reductions obtained through wind and other renewable
119	119	energy resources for the state implementation plan;
120	120	(13) not more than $500,000 may be used for studies of
121	121	or pilot programs for incentives for port authorities located in
122	122	nonattainment areas or affected counties to encourage cargo
123	123	movement that reduces emissions of nitrogen oxides and particulate
124	124	matter; [and]
125	125	(14) not more than $8 million may be used for the Texas
126	126	hydrogen infrastructure and vehicle grant program established
127	127	under Subchapter G; and
128	128	(15) the balance is to be used by the commission for
129	129	the diesel emissions reduction incentive program under Subchapter C
130	130	as determined by the commission.
131	131	SECTION 3. Chapter 386, Health and Safety Code, is amended
132	132	by adding Subchapter G to read as follows:
133	133	SUBCHAPTER G. TEXAS HYDROGEN INFRASTRUCTURE AND VEHICLE GRANT
134	134	PROGRAM
135	135	Sec. 386.301. DEFINITIONS. In this subchapter:
136	136	(1) "Hydrogen vehicle" means a motor vehicle that uses
137	137	hydrogen to operate the vehicle, including through the use of
138	138	hydrogen fuel cells or an internal combustion engine that runs on
139	139	hydrogen.
140	140	(2) "Program" means the Texas hydrogen infrastructure
141	141	and vehicle grant program established under this subchapter.
142	142	Sec. 386.302. PROGRAM. (a) The commission shall establish
143	143	and administer the Texas hydrogen infrastructure and vehicle grant
144	144	program to encourage the adoption of hydrogen infrastructure and
145	145	vehicles. Under the program, the commission shall provide funding
146	146	for eligible projects to offset the incremental cost of projects
147	147	that reduce emissions of oxides of nitrogen from high-emitting
148	148	sources in the state. The commission shall determine the
149	149	eligibility of projects.
150	150	(b) Projects that may be considered for a grant under the
151	151	program include:
152	152	(1) implementation of hydrogen infrastructure
153	153	projects;
154	154	(2) purchase or lease of on-road or non-road hydrogen
155	155	vehicles;
156	156	(3) replacement of on-road or non-road vehicles with
157	157	newer on-road or non-road hydrogen vehicles; and
158	158	(4) use of hydrogen fuel.
159	159	(c) A project listed in Subsection (b) is not eligible if it
160	160	is required by any state or federal law, rule or regulation,
161	161	memorandum of agreement, or other legally binding document. This
162	162	subsection does not apply to:
163	163	(1) an otherwise qualified project, regardless of the
164	164	fact that the state implementation plan assumes that the change in
165	165	equipment, vehicles, or operations will occur, if on the date the
166	166	grant is awarded the change is not required by any state or federal
167	167	law, rule or regulation, memorandum of agreement, or other legally
168	168	binding document; or
169	169	(2) the purchase of a hydrogen vehicle or facility
170	170	required only by local law or regulation or by corporate or
171	171	controlling board policy of a public or private entity.
172	172	Sec. 386.303. APPLICATION PACKAGE. (a) The commission
173	173	shall develop a simple, standardized application package for grants
174	174	under this subchapter. The package must include:
175	175	(1) an application form;
176	176	(2) a brief description of:
177	177	(A) the program;
178	178	(B) the projects that are eligible for available
179	179	funding;
180	180	(C) the selection criteria and evaluation
181	181	process; and
182	182	(D) the required documentation;
183	183	(3) the name of a person or office to contact for more
184	184	information;
185	185	(4) an example of the contract that an applicant will
186	186	be required to execute before receiving a grant; and
187	187	(5) any other information the commission considers
188	188	useful to inform the applicant and expedite the application
189	189	process.
190	190	(b) The application form shall require as much information
191	191	as the commission determines is necessary to properly evaluate each
192	192	project but shall otherwise minimize the information required.
193	193	Sec. 386.304. APPLICATION REVIEW PROCEDURES. (a) The
194	194	commission shall review an application for a grant for a project
195	195	authorized under this subchapter. If the commission determines
196	196	that an application is incomplete, the commission shall notify the
197	197	applicant with an explanation of what is missing from the
198	198	application. The commission shall evaluate the completed
199	199	application according to the appropriate project criteria. Subject
200	200	to available funding, the commission shall make a final
201	201	determination on an application as soon as possible.
202	202	(b) The commission shall make every effort to expedite the
203	203	application review process and to award grants to qualified
204	204	projects in a timely manner. To the extent possible, the commission
205	205	shall coordinate project review and approval with any timing
206	206	constraints related to project purchases or installations to be
207	207	made by an applicant.
208	208	(c) The commission may deny an application for a project
209	209	that does not meet the applicable project criteria or that the
210	210	commission determines is not made in good faith, is not credible, or
211	211	is not in compliance with this chapter and the goals of this
212	212	chapter.
213	213	(d) Subject to availability of funds, the commission shall
214	214	award a grant under this subchapter in conjunction with the
215	215	execution of a contract that obligates the commission to make the
216	216	grant and the recipient to perform the actions described in the
217	217	recipient's grant application. The contract must incorporate
218	218	provisions for recapturing grant money in proportion to any loss of
219	219	emissions reductions compared with the volume of emissions
220	220	reductions that was projected in awarding the grant. Grant money
221	221	recaptured under the contract provision shall be deposited in the
222	222	fund and reallocated for other projects under this chapter.
223	223	SECTION 4. This Act takes effect immediately if it receives
224	224	a vote of two-thirds of all the members elected to each house, as
225	225	provided by Section 39, Article III, Texas Constitution. If this
226	226	Act does not receive the vote necessary for immediate effect, this
227	227	Act takes effect September 1, 2023.