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A BILL TO BE ENTITLED
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AN ACT
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relating to programs established and funded under the Texas |
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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); |
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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; and |
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(20) the Texas hydrogen infrastructure, vehicle, and |
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equipment grant program established under Subchapter G. |
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SECTION 2. Section 386.252(a), Health and Safety Code, is |
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amended 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 plan. |
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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) eight [three] percent total may be used between |
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the Texas hydrogen infrastructure, vehicle, and equipment grant |
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program established under Subchapter G and [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 and not more than $8 million may be used |
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for the Texas hydrogen infrastructure, vehicle, and equipment grant |
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program; |
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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) 7.5 [10] percent may be used for the Texas natural |
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gas 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 15 percent |
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[$16 million] may be used by the commission for administrative |
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costs, including all direct and indirect costs for administering |
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the plan, costs for conducting outreach and education activities, |
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and costs attributable to the review or approval of applications |
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for 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) 2.5 [five] percent may be used for the light-duty |
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motor vehicle purchase or lease incentive program established under |
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Subchapter D; |
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(12) not more than $500,000 [$216,000] may be used by |
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the commission to contract with the Energy Systems Laboratory at |
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the 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 for the state implementation plan that are |
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obtained through: |
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(A) wind and other renewable energy resources; |
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(B) energy efficiency programs administered by |
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the Public Utility Commission of Texas or the State Energy |
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Conservation Office; or |
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(C) the implementation of advanced building |
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energy codes [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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SECTION 3. Chapter 386, Health and Safety Code, is amended |
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by adding Subchapter G to read as follows: |
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SUBCHAPTER G. TEXAS HYDROGEN INFRASTRUCTURE, VEHICLE, AND |
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EQUIPMENT GRANT PROGRAM |
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Sec. 386.301. DEFINITIONS. In this subchapter: |
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(1) "Hydrogen vehicle or equipment" means a heavy-duty |
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motor vehicle or piece of heavy-duty equipment that uses hydrogen |
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to operate the vehicle or equipment, including through the use of |
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hydrogen fuel cells or an internal combustion engine that runs on |
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hydrogen. |
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(2) "Program" means the Texas hydrogen |
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infrastructure, vehicle, and equipment grant program established |
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under this subchapter. |
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Sec. 386.302. PROGRAM. (a) The commission shall establish |
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and administer the Texas hydrogen infrastructure, vehicle, and |
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equipment grant program to encourage the adoption of hydrogen |
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infrastructure, vehicles, and equipment. Under the program, the |
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commission shall provide funding for eligible projects to offset |
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the incremental cost of projects that reduce emissions of oxides of |
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nitrogen from high-emitting sources in nonattainment areas and |
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affected counties of this state. The commission shall determine |
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the eligibility of projects. |
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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) implementation of hydrogen infrastructure |
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projects; |
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(2) purchase or lease of on-road or non-road hydrogen |
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vehicles or equipment; |
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(3) replacement of on-road or non-road heavy-duty |
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vehicles or equipment with newer on-road or non-road hydrogen |
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vehicles or equipment; and |
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(4) the repower or conversion of on-road or non-road |
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heavy-duty vehicles or equipment with a powertrain that runs on or |
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is powered by hydrogen. |
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(c) A project listed in Subsection (b) is not eligible if it |
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is required by any state or federal law, rule or regulation, |
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memorandum of agreement, or other legally binding document. This |
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subsection does not apply to: |
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(1) an otherwise qualified project, regardless of the |
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fact that the state implementation plan assumes that the change in |
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vehicles, equipment, or operations will occur, if on the date the |
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grant is awarded the change is not required by any state or federal |
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law, rule or regulation, memorandum of agreement, or other legally |
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binding document; or |
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(2) the purchase of a hydrogen vehicle or equipment or |
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facility required only by local law or regulation or by corporate or |
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controlling board policy of a public or private entity. |
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(d) The commission shall prioritize the awarding of grants |
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under this subchapter in the following order: |
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(1) projects to replace on-road heavy-duty vehicles |
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with newer on-road hydrogen vehicles; |
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(2) projects to purchase, lease, repower, or convert |
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on-road heavy-duty vehicles with a powertrain that runs on or is |
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powered by hydrogen; |
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(3) projects to implement hydrogen refueling |
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infrastructure that will be accessible and available to the public |
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at times designated by the grant contract; |
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(4) projects to replace non-road heavy-duty vehicles |
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with newer non-road hydrogen vehicles; and |
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(5) projects to purchase, lease, repower, or convert |
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non-road heavy-duty vehicles with a powertrain that runs on or is |
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powered by hydrogen. |
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(e) Subject to Subsection (d), in awarding grants under this |
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subchapter, the commission shall give preference to the most |
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cost-effective projects that will result in the greatest reduction |
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in emissions of oxides of nitrogen. |
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(f) The commission shall establish additional eligibility |
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and prioritization criteria as needed to implement the program. |
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Sec. 386.303. APPLICATION PACKAGE. (a) The commission |
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shall develop a simple, standardized application package for grants |
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under this subchapter. The package must include: |
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(1) an application form; |
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(2) a brief description of: |
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(A) the program; |
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(B) the projects that are eligible for available |
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funding; |
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(C) the selection criteria and evaluation |
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process; and |
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(D) the required documentation; |
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(3) the name of a person or office to contact for more |
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information; |
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(4) an example of the contract that an applicant will |
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be required to execute before receiving a grant; and |
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(5) any other information the commission considers |
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useful to inform the applicant and expedite the application |
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process. |
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(b) The application form shall require as much information |
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as the commission determines is necessary to properly evaluate each |
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project but shall otherwise minimize the information required. |
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Sec. 386.304. APPLICATION REVIEW PROCEDURES. (a) The |
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commission shall review an application for a grant for a project |
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authorized under this subchapter. If the commission determines |
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that an application is incomplete, the commission shall notify the |
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applicant with an explanation of what is missing from the |
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application. The commission shall evaluate the completed |
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application according to the appropriate project criteria. Subject |
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to available funding, the commission shall make a final |
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determination on an application as soon as possible. |
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(b) The commission shall make every effort to expedite the |
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application review process and to award grants to qualified |
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projects in a timely manner. To the extent possible, the commission |
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shall coordinate project review and approval with any timing |
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constraints related to project purchases or installations to be |
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made by an applicant. |
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(c) The commission may deny an application for a project |
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that does not meet the applicable project criteria or that the |
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commission determines is not made in good faith, is not credible, or |
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is not in compliance with this chapter and the goals of this |
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chapter. |
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(d) Subject to availability of funds, the commission shall |
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award a grant under this subchapter in conjunction with the |
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execution of a contract that obligates the commission to make the |
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grant and the recipient to perform the actions described in the |
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recipient's grant application. The contract must incorporate |
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provisions for recapturing grant money in proportion to any loss of |
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emissions reductions compared with the volume of emissions |
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reductions that was projected in awarding the grant. Grant money |
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recaptured under the contract provision shall be deposited in the |
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fund and reallocated for other projects under this chapter. |
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SECTION 4. 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, or downstream oil and gas production, |
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completions, gathering, storage, processing, [and] transmission, |
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or refining activities 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; 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 5. This Act takes effect September 1, 2023. |
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