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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas emissions reduction plan. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 386.051(b), Health and Safety Code, is |
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amended to read as follows: |
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(b) Under the plan, the commission and the comptroller shall |
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provide grants or other funding for: |
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(1) the diesel emissions reduction incentive program |
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established under Subchapter C, including for infrastructure |
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projects established under that subchapter; |
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(2) the motor vehicle purchase or lease incentive |
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program established under Subchapter D; |
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(3) the air quality research support program |
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established under Chapter 387; |
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(4) the clean school bus program established under |
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Chapter 390; |
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(5) the new technology implementation grant program |
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established under Chapter 391; |
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(6) the regional air monitoring program established |
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under Section 386.252(a); |
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(7) a health effects study as provided by Section |
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386.252(a); |
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(8) air quality planning activities as provided by |
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Section 386.252(d); |
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(9) a contract with the Energy Systems Laboratory at |
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the Texas A&M Engineering Experiment Station for computation of |
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creditable statewide emissions reductions as provided by Section |
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386.252(a); |
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(10) the Texas clean fleet program established under |
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Chapter 392; |
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(11) the Texas alternative fueling facilities program |
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established under Chapter 393; |
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(12) the Texas natural gas vehicle grant program |
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established under Chapter 394; |
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(13) other programs the commission may develop that |
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lead to reduced emissions of nitrogen oxides, particulate matter, |
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or volatile organic compounds in a nonattainment area or affected |
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county; |
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(14) other programs the commission may develop that |
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support congestion mitigation to reduce mobile source ozone |
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precursor emissions; |
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(15) the seaport and rail yard areas emissions |
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reduction program established under Subchapter D-1; |
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(16) conducting research and other activities |
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associated with making any necessary demonstrations to the United |
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States Environmental Protection Agency to account for the impact of |
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foreign emissions or an exceptional event; |
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(17) studies of or pilot programs for incentives for |
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port authorities located in nonattainment areas or affected |
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counties as provided by Section 386.252(a); [and] |
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(18) the governmental alternative fuel fleet grant |
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program established under Chapter 395; and |
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(19) remittance of funds to the state highway fund for |
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use by the Texas Department of Transportation for congestion |
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mitigation and air quality improvement projects in nonattainment |
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areas and affected counties. |
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SECTION 2. Section 386.057, Health and Safety Code, is |
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amended by adding Subsection (e) to read as follows: |
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(e) Not later than October 1 of each year, the Texas |
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Department of Transportation shall report to the commission the |
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following information for all congestion mitigation and air quality |
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improvement projects in nonattainment areas and affected counties |
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that are planned to be funded, or received initial funding during |
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the preceding 10 years, from money received by the department under |
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this chapter: |
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(1) projects to mitigate congestion and improve air |
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quality that are currently planned; |
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(2) projects to mitigate congestion and improve air |
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quality that have been completed; |
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(3) estimated emissions reductions for all planned and |
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completed congestion mitigation projects; and |
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(4) estimated cost per ton analysis of reduced |
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emissions of nitrogen oxides, particulate matter, or volatile |
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organic compounds for each congestion mitigation project planned or |
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completed. |
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SECTION 3. Sections 386.104(c) and (c-1), Health and Safety |
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Code, are amended to read as follows: |
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(c) Except as otherwise provided by this subsection, for a |
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proposed project as described by Section 386.102(b), [other than a |
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project involving a marine vessel or engine,] not less than 75 |
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percent of vehicle miles traveled or hours of operation projected |
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for the five years immediately following the award of a grant must |
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be projected to take place in a nonattainment area or affected |
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county of this state. The commission may set the minimum percentage |
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of vehicle miles traveled or hours of operation required to take |
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place in a nonattainment area or affected county at a percentage and |
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for a period that is different from the percentage and period |
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specified by this subsection, provided that the commission may not |
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set the minimum percentage at a level that is less than 55 percent. |
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The commission may allow vehicle travel on highways and roadways, |
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or portions of a highway or roadway, designated by the commission |
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and located outside a nonattainment area or affected county to |
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count towards the percentage of use requirement in this subsection. |
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(c-1) For a proposed project involving a marine vessel or |
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engine, the vessel or engine must be operated in the intercoastal |
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waterways or bays adjacent to a nonattainment area or affected |
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county of this state for a sufficient percentage [amount] of time |
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over the lifetime of the project, as determined by the commission, |
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to meet the cost-effectiveness requirements of Section 386.105. |
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The percentage determined by the commission under this subsection |
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may not be less than 55 percent. |
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SECTION 4. Section 386.250(c), Health and Safety Code, as |
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effective September 1, 2021, is amended to read as follows: |
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(c) Not later than the 30th day after the last day of each |
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state fiscal biennium, the commission shall transfer the |
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unencumbered balance of the fund remaining on the last day of the |
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state fiscal biennium to the credit of the state highway fund for |
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use by the Texas Department of Transportation for projects |
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described by Section 386.051(b)(19) [Texas emissions reduction |
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plan account]. |
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SECTION 5. Section 386.251(c), Health and Safety Code, as |
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effective September 1, 2021, is amended to read as follows: |
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(c) The account consists of its accumulated balance [and the |
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amount of money transferred to the account under Section |
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386.250(c)]. |
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SECTION 6. Section 386.252, Health and Safety Code, as |
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effective September 1, 2021, is amended by amending Subsection (a) |
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and adding Subsection (a-1) to read as follows: |
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(a) Money in the fund and account may be used only to |
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implement and administer programs established under the |
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plan. Subject to the reallocation of funds by the commission under |
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Subsection (h) and after remittance to the state highway fund under |
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Subsection (a-1), money from the fund and account to be used for the |
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programs under Section 386.051(b) shall initially be allocated as |
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follows: |
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(1) four percent may be used for the clean school bus |
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program under Chapter 390; |
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(2) three percent may be used for the new technology |
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implementation grant program under Chapter 391, from which at least |
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$1 million will be set aside for electricity storage projects |
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related to renewable energy; |
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(3) five percent may be used for the Texas clean fleet |
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program under Chapter 392; |
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(4) not more than $3 million may be used by the |
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commission to fund a regional air monitoring program in commission |
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Regions 3 and 4 to be implemented under the commission's oversight, |
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including direction regarding the type, number, location, and |
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operation of, and data validation practices for, monitors funded by |
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the program through a regional nonprofit entity located in North |
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Texas having representation from counties, municipalities, higher |
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education institutions, and private sector interests across the |
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area; |
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(5) 10 percent may be used for the Texas natural gas |
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vehicle grant program under Chapter 394; |
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(6) not more than $6 million may be used for the Texas |
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alternative fueling facilities program under Chapter 393, of which |
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a specified amount may be used for fueling stations to provide |
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natural gas fuel, except that money may not be allocated for the |
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Texas alternative fueling facilities program for the state fiscal |
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year ending August 31, 2019; |
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(7) not more than $750,000 may be used each year to |
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support research related to air quality as provided by Chapter 387; |
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(8) not more than $200,000 may be used for a health |
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effects study; |
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(9) at least $6 million but not more than $16 million |
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may be used by the commission for administrative costs, including |
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all direct and indirect costs for administering the plan, costs for |
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conducting outreach and education activities, and costs |
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attributable to the review or approval of applications for |
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marketable emissions reduction credits; |
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(10) six percent may be used by the commission for the |
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seaport and rail yard areas emissions reduction program established |
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under Subchapter D-1; |
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(11) five percent may be used for the light-duty motor |
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vehicle purchase or lease incentive program established under |
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Subchapter D; |
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(12) not more than $216,000 may be used by the |
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commission to contract with the Energy Systems Laboratory at the |
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Texas A&M Engineering Experiment Station annually for the |
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development and annual computation of creditable statewide |
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emissions reductions obtained through wind and other renewable |
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energy resources for the state implementation plan; |
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(13) not more than $500,000 may be used for studies of |
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or pilot programs for incentives for port authorities located in |
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nonattainment areas or affected counties to encourage cargo |
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movement that reduces emissions of nitrogen oxides and particulate |
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matter; and |
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(14) the balance is to be used by the commission for |
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the diesel emissions reduction incentive program under Subchapter C |
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as determined by the commission. |
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(a-1) The commission shall remit not less than 35 percent of |
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the amount deposited to the credit of the fund to the state highway |
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fund for use by the Texas Department of Transportation for projects |
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described by Section 386.051(b)(19). |
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SECTION 7. Section 391.002(b), Health and Safety Code, is |
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amended to read as follows: |
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(b) Projects that may be considered for a grant under the |
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program include: |
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(1) advanced clean energy projects, as defined by |
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Section 382.003; |
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(2) new technology projects that reduce emissions of |
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regulated pollutants from stationary sources; |
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(3) new technology projects that reduce emissions from |
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upstream and midstream oil and gas production, completions, |
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gathering, storage, processing, and transmission activities |
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through: |
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(A) the replacement, repower, or retrofit of |
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stationary compressor engines; |
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(B) the installation of systems to reduce or |
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eliminate the loss of gas, flaring of gas, or burning of gas using |
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other combustion control devices; or |
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(C) the installation of systems that reduce |
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flaring emissions and other site emissions [by capturing waste heat |
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to generate electricity solely for on-site service]; and |
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(4) electricity storage projects related to renewable |
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energy, including projects to store electricity produced from wind |
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and solar generation that provide efficient means of making the |
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stored energy available during periods of peak energy use. |
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SECTION 8. Section 391.205(a), Health and Safety Code, is |
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amended to read as follows: |
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(a) Except as provided by Subsection (c), in awarding grants |
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under this chapter the commission shall give preference to projects |
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that: |
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(1) involve the transport, use, recovery for use, or |
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prevention of the loss of natural resources originating or produced |
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in this state; |
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(2) contain an energy efficiency component; |
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(3) include the use of solar, wind, or other renewable |
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energy sources; [or] |
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(4) recover waste heat from the combustion of natural |
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resources and use the heat to generate electricity; or |
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(5) reduce flaring emissions and other site emissions. |
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SECTION 9. Section 391.301, Health and Safety Code, is |
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amended to read as follows: |
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Sec. 391.301. RESTRICTION ON USE OF GRANT. A recipient of a |
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grant under this chapter must use the grant to pay the incremental |
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costs of the purchase, lease, or [and] installation of the project |
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for which the grant is made, which may include reasonable and |
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necessary expenses for the labor needed to install |
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emissions-reducing equipment. The recipient may [not] use the |
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grant for the costs of operating and maintaining the |
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emissions-reducing equipment. |
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SECTION 10. Section 501.138, Transportation Code, is |
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amended by amending Subsections (b-1), (b-2), and (b-3) and adding |
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Subsection (b-4) to read as follows: |
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(b-1) Except as provided by Subsection (b-4), fees [Fees] |
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collected under Subsection (b) to be sent to the comptroller shall |
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be deposited to the credit of the Texas [Mobility Fund, except that |
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$5 of each fee imposed under Subsection (a)(1) and deposited on or |
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after September 1, 2008, and before September 1, 2015, shall be |
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deposited to the credit of the Texas] emissions reduction plan |
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fund. |
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(b-2) The comptroller shall establish a record of the amount |
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of the fees deposited to the credit of the Texas emissions reduction |
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plan fund [Mobility Fund] under Subsection (b-1). On or before the |
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fifth workday of each month, the Texas Department of Transportation |
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shall remit to the comptroller for deposit to the credit of the |
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Texas Mobility Fund [emissions reduction plan fund] an amount of |
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money equal to the amount of the fees deposited by the comptroller |
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to the credit of the Texas emissions reduction plan fund [Mobility |
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Fund] under Subsection (b-1) in the preceding month. The Texas |
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Department of Transportation shall use for remittance to the |
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comptroller as required by this subsection money in the state |
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highway fund that is not required to be used for a purpose specified |
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by Section 7-a, Article VIII, Texas Constitution, and may not use |
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for that remittance money received by this state under the |
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congestion mitigation and air quality improvement program |
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established under 23 U.S.C. Section 149. |
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(b-3) This subsection and Subsections (b-1) and |
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[Subsection] (b-2) expire on the last day of the state fiscal |
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biennium during which the Texas Commission on Environmental Quality |
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publishes in the Texas Register the notice required by Section |
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382.037, Health and Safety Code. |
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(b-4) Fees collected under Subsection (b) to be sent to the |
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comptroller shall be deposited to the credit of the Texas Mobility |
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Fund if the fees are collected on or after the last day of the state |
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fiscal biennium during which the Texas Commission on Environmental |
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Quality publishes in the Texas Register the notice required by |
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Section 382.037, Health and Safety Code. |
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SECTION 11. The changes in law made by this Act apply only |
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to a Texas emissions reduction plan grant awarded on or after the |
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effective date of this Act. A grant awarded before the effective |
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date of this Act is governed by the law in effect on the date the |
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award was made, and the former law is continued in effect for that |
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purpose. |
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SECTION 12. The change in law made by this Act to Section |
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501.138, Transportation Code, applies only to a fee collected on or |
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after the effective date of this Act. A fee collected before the |
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effective date of this Act is governed by the law in effect when the |
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fee was collected, and the former law is continued in effect for |
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that purpose. |
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SECTION 13. This Act takes effect September 1, 2021. |
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* * * * * |