Texas 2025 - 89th Regular

Texas Senate Bill SB727 Compare Versions

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Old	New	Differences
1	1	89R3106 JRR-F
2	2	By: Johnson S.B. No. 727
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the creation of a small non-road engine purchase
10	10	incentive program under the Texas emissions reduction plan.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 386.051(b), Health and Safety Code, is
13	13	amended to read as follows:
14	14	(b) Under the plan, the commission and the comptroller shall
15	15	provide grants or other funding for:
16	16	(1) the diesel emissions reduction incentive program
17	17	established under Subchapter C, including for infrastructure
18	18	projects established under that subchapter;
19	19	(2) the motor vehicle purchase or lease incentive
20	20	program established under Subchapter D;
21	21	(3) the air quality research support program
22	22	established under Chapter 387;
23	23	(4) the clean school bus program established under
24	24	Chapter 390;
25	25	(5) the new technology implementation grant program
26	26	established under Chapter 391;
27	27	(6) the regional air monitoring program established
28	28	under Section 386.252(a);
29	29	(7) a health effects study as provided by Section
30	30	386.252(a);
31	31	(8) air quality planning activities as provided by
32	32	Section 386.252(d);
33	33	(9) a contract with the Energy Systems Laboratory at
34	34	the Texas A&M Engineering Experiment Station for computation of
35	35	creditable statewide emissions reductions as provided by Section
36	36	386.252(a);
37	37	(10) the Texas clean fleet program established under
38	38	Chapter 392;
39	39	(11) the Texas alternative fueling facilities program
40	40	established under Chapter 393;
41	41	(12) the Texas natural gas vehicle grant program
42	42	established under Chapter 394;
43	43	(13) other programs the commission may develop that
44	44	lead to reduced emissions of nitrogen oxides, particulate matter,
45	45	or volatile organic compounds in a nonattainment area or affected
46	46	county;
47	47	(14) other programs the commission may develop that
48	48	support congestion mitigation to reduce mobile source ozone
49	49	precursor emissions;
50	50	(15) the seaport and rail yard areas emissions
51	51	reduction program established under Subchapter D-1;
52	52	(16) conducting research and other activities
53	53	associated with making any necessary demonstrations to the United
54	54	States Environmental Protection Agency to account for the impact of
55	55	foreign emissions or an exceptional event;
56	56	(17) studies of or pilot programs for incentives for
57	57	port authorities located in nonattainment areas or affected
58	58	counties as provided by Section 386.252(a);
59	59	(18) the governmental alternative fuel fleet grant
60	60	program established under Chapter 395;
61	61	(19) remittance of funds to the state highway fund for
62	62	use by the Texas Department of Transportation for congestion
63	63	mitigation and air quality improvement projects in nonattainment
64	64	areas and affected counties; [and]
65	65	(20) the Texas hydrogen infrastructure, vehicle, and
66	66	equipment grant program established under Subchapter G; and
67	67	(21) the small non-road engine purchase incentive
68	68	program established under Subchapter H.
69	69	SECTION 2. Section 386.252(a), Health and Safety Code, is
70	70	amended to read as follows:
71	71	(a) Money in the fund and account may be used only to
72	72	implement and administer programs established under the plan.
73	73	Subject to the reallocation of funds by the commission under
74	74	Subsection (h) and after remittance to the state highway fund under
75	75	Subsection (a-1), money from the fund and account to be used for the
76	76	programs under Section 386.051(b) shall initially be allocated as
77	77	follows:
78	78	(1) four percent may be used for the clean school bus
79	79	program under Chapter 390;
80	80	(2) eight percent total may be used between the Texas
81	81	hydrogen infrastructure, vehicle, and equipment grant program
82	82	established under Subchapter G and the new technology
83	83	implementation grant program under Chapter 391, from which at least
84	84	$1 million will be set aside for electricity storage projects
85	85	related to renewable energy and not more than $8 million may be used
86	86	for the Texas hydrogen infrastructure, vehicle, and equipment grant
87	87	program;
88	88	(3) five percent may be used for the Texas clean fleet
89	89	program under Chapter 392;
90	90	(4) not more than $3 million may be used by the
91	91	commission to fund a regional air monitoring program in commission
92	92	Regions 3 and 4 to be implemented under the commission's oversight,
93	93	including direction regarding the type, number, location, and
94	94	operation of, and data validation practices for, monitors funded by
95	95	the program through a regional nonprofit entity located in North
96	96	Texas having representation from counties, municipalities, higher
97	97	education institutions, and private sector interests across the
98	98	area;
99	99	(5) 7.5 percent may be used for the Texas natural gas
100	100	vehicle grant program under Chapter 394;
101	101	(6) not more than $6 million may be used for the Texas
102	102	alternative fueling facilities program under Chapter 393, of which
103	103	a specified amount may be used for fueling stations to provide
104	104	natural gas fuel, except that money may not be allocated for the
105	105	Texas alternative fueling facilities program for the state fiscal
106	106	year ending August 31, 2019;
107	107	(7) not more than $750,000 may be used each year to
108	108	support research related to air quality as provided by Chapter 387;
109	109	(8) not more than $200,000 may be used for a health
110	110	effects study;
111	111	(9) at least $6 million but not more than 15 percent
112	112	may be used by the commission for administrative costs, including
113	113	all direct and indirect costs for administering the plan, costs for
114	114	conducting outreach and education activities, and costs
115	115	attributable to the review or approval of applications for
116	116	marketable emissions reduction credits;
117	117	(10) six percent may be used by the commission for the
118	118	seaport and rail yard areas emissions reduction program established
119	119	under Subchapter D-1;
120	120	(11) 2.5 percent may be used for the light-duty motor
121	121	vehicle purchase or lease incentive program established under
122	122	Subchapter D;
123	123	(12) not more than $500,000 may be used by the
124	124	commission to contract with the Energy Systems Laboratory at the
125	125	Texas A&M Engineering Experiment Station annually for the
126	126	development and annual computation of creditable statewide
127	127	emissions reductions for the state implementation plan that are
128	128	obtained through:
129	129	(A) wind and other renewable energy resources;
130	130	(B) energy efficiency programs administered by
131	131	the Public Utility Commission of Texas or the State Energy
132	132	Conservation Office; or
133	133	(C) the implementation of advanced building
134	134	energy codes;
135	135	(13) not more than $500,000 may be used for studies of
136	136	or pilot programs for incentives for port authorities located in
137	137	nonattainment areas or affected counties to encourage cargo
138	138	movement that reduces emissions of nitrogen oxides and particulate
139	139	matter; [and]
140	140	(14) two percent may be used for the small non-road
141	141	engine purchase incentive program established under Subchapter H;
142	142	and
143	143	(15) the balance is to be used by the commission for
144	144	the diesel emissions reduction incentive program under Subchapter C
145	145	as determined by the commission.
146	146	SECTION 3. Chapter 386, Health and Safety Code, is amended
147	147	by adding Subchapter H to read as follows:
148	148	SUBCHAPTER H. SMALL NON-ROAD ENGINE PURCHASE INCENTIVE PROGRAM
149	149	Sec. 386.351. DEFINITIONS. In this subchapter:
150	150	(1) "Four-stroke engine" means an engine that goes
151	151	through the steps of compression, power, exhaust, and intake in
152	152	four piston strokes.
153	153	(2) "Non-road engine" means an engine powering
154	154	equipment that has less than 25 horsepower.
155	155	(3) "Ozone precursors" means pollutants, including
156	156	nitrogen oxides and volatile organic compounds, that create ground
157	157	level ozone through chemical reactions.
158	158	(4) "Program" means the small non-road engine purchase
159	159	incentive program established under this subchapter.
160	160	(5) "Two-stroke engine" means an engine that goes
161	161	through the steps of compression, power, exhaust, and intake in two
162	162	piston strokes and mixes fuel with oil in the process.
163	163	Sec. 386.352. PROGRAM. (a) The commission shall develop a
164	164	small non-road engine purchase incentive program designed to reduce
165	165	emissions, including the emissions of ozone precursors,
166	166	particulate matter, and carbon monoxide, produced by two-stroke and
167	167	four-stroke non-road engines.
168	168	(b) The program shall authorize statewide financial
169	169	incentives for the purchase by persons in this state of:
170	170	(1) new non-road engines that are electrically powered
171	171	or powered by another alternative technology designated by the
172	172	commission; and
173	173	(2) batteries designated by the commission.
174	174	(c) The commission shall adopt rules necessary to implement
175	175	the program, including designating alternative technologies and
176	176	products eligible for incentives.
177	177	Sec. 386.353. ELIGIBILITY. (a) The purchase by a person in
178	178	this state of non-road engines or batteries is eligible for an
179	179	incentive under the program if:
180	180	(1) as applicable:
181	181	(A) the non-road engine purchased is
182	182	electrically powered or powered by another alternative technology
183	183	designated by the commission; or
184	184	(B) the battery purchased is necessary to improve
185	185	the efficiency of an electrically powered non-road engine owned or
186	186	operated by the person, as established by commission rule;
187	187	(2) the purchase meaningfully reduces emissions in
188	188	this state, as determined by the criteria established under
189	189	Subsection (b); and
190	190	(3) the purchase satisfies any minimum purchase
191	191	quantity requirements established by the commission to ensure
192	192	efficient administration of the program.
193	193	(b) The commission shall establish criteria for determining
194	194	whether a purchase of non-road engines or batteries meaningfully
195	195	reduces emissions in this state. The commission shall review and
196	196	revise the criteria as appropriate. The criteria must include:
197	197	(1) the proposed frequency of use of the newly
198	198	purchased non-road engine;
199	199	(2) the degree to which the purchase reduces the use of
200	200	existing two-stroke and four-stroke non-road engines; and
201	201	(3) the cost-effectiveness of the purchase as it
202	202	relates to advancing the purpose of the program under Section
203	203	386.352(a).
204	204	(c) When establishing criteria under this section, the
205	205	commission may allow for greater incentives for purchases that
206	206	reduce:
207	207	(1) health risks to equipment operators when using
208	208	non-road engines; and
209	209	(2) emissions of ozone precursors from non-road
210	210	engines that operate primarily within a nonattainment area or an
211	211	affected county.
212	212	(d) The commission may require the disposal of a two-stroke
213	213	engine or four-stroke engines replaced by a non-road engine that is
214	214	the subject of an incentive under this subchapter.
215	215	Sec. 386.354. APPLICATION FOR INCENTIVE. (a) A person who
216	216	makes a purchase that meets the eligibility requirements under
217	217	Section 386.353 may apply for an incentive under the program.
218	218	(b) An application for an incentive under this chapter must
219	219	be made on a form provided by the commission and must contain any
220	220	information necessary to:
221	221	(1) determine whether the project meets eligibility
222	222	requirements; and
223	223	(2) ensure the efficient administration of the
224	224	program.
225	225	(c) To reduce the administrative burden for the commission
226	226	and applicants, the commission may streamline the application
227	227	process by:
228	228	(1) reducing data entry and the copying of
229	229	applications; and
230	230	(2) implementing a system to accept applications
231	231	electronically through the commission's Internet website.
232	232	Sec. 386.355. AMOUNT OF INCENTIVE; ADMINISTRATION. (a) An
233	233	incentive provided under this subchapter may not exceed 80 percent
234	234	of the cost of eligible purchases of non-road engines and
235	235	batteries.
236	236	(b) The commission shall set standards for determining
237	237	incentive amounts, and may revise these standards as needed to:
238	238	(1) reflect changes to federal emission standards and
239	239	developments in technological capabilities and scientific
240	240	knowledge; and
241	241	(2) maximize the cost-effectiveness of the program in
242	242	reducing emissions.
243	243	(c) The commission shall publicize and promote the
244	244	availability of incentives under this subchapter to encourage
245	245	eligible purchases of non-road engines and batteries.
246	246	(d) The commission shall include in the biennial plan report
247	247	required by Section 386.057(b) a report of commission actions and
248	248	results under this subchapter.
249	249	SECTION 4. The Texas Commission on Environmental Quality
250	250	shall adopt rules and establish procedures under Subchapter H,
251	251	Chapter 386, Health and Safety Code, as added by this Act, as soon
252	252	as practicable after the effective date of this Act.
253	253	SECTION 5. This Act takes effect September 1, 2025.