By:  Hochberg                                                     H.B. No. 3469



A BILL TO BE ENTITLED

AN ACT

relating to the creation of the Texas Clean School Bus program.               
	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 
demonstration projects established under that subchapter;
		(2)  the motor vehicle purchase or lease incentive 
program established under Subchapter D; [and]
		(3)  the new technology research and development 
program established under Chapter 387; and
		(4)  the Texas Clean School Bus program established 
under Chapter 390.
	SECTION 2.  Section 386.052(b), Health and Safety Code, is 
amended to read as follows:
	(b)  Appropriate commission objectives include:                                
		(1)  achieving maximum reductions in oxides of nitrogen 
to demonstrate compliance with the state implementation plan;
		(2)  preventing areas of the state from being in 
violation of national ambient air quality standards; [and]
		(3)  achieving cost-saving and multiple benefits by 
reducing emissions of other pollutants; and [.]
		(4)  achieving reductions of diesel exhaust from school 
buses through the Texas Clean School Bus program established under 
Chapter 390.
	SECTION 3.  Section 386.252(a)(1)  Health and Safety Code is 
amended to read as follows:
		(1)  for the diesel emissions reduction incentive 
program, 87.5 percent of the money in the fund, of which no more 
than 1.5 percent may be allocated each year for the Texas Clean 
School Bus program under Chapter 390 and not more than 10 percent 
may be used for on-road diesel purchase or lease incentives;
	SECTION 4.  Subtitle C, Title 5, Health and Safety Code, is 
amended by adding Chapter 390 to read as follows:

CHAPTER 390.  TEXAS CLEAN SCHOOL BUS PROGRAM
	Sec. 390.101.  DEFINITIONS.  In this chapter:                           
		(1)  "Diesel exhaust" means one or more of the air 
pollutants emitted by the combustion of diesel fuel, including 
particulate matter, nitrogen oxides, volatile organic compounds, 
air toxics and carbon monoxide.
		(2)  "Qualifying fuel" includes any liquid or gaseous 
fuel or additives registered or verified by the United States 
Environmental Protection Agency, other than standard gasoline or 
diesel, that is ultimately dispensed into a covered vehicle that 
provides reductions of emissions of particulate matter.
		(3)  All other terms have the same meaning as in Section 
386.101.    
	Sec. 390.102.  PROGRAM.  (a)  The commission shall establish 
and administer a Clean School Bus program designed to reduce the 
exposure of school children to diesel exhaust in and around diesel 
fueled school buses.  Under the program, the commission shall 
provide grants for eligible projects to offset the incremental cost 
of projects that reduce emissions of diesel exhaust.
	(b)  Emissions-reducing projects that may be considered for 
a grant under the program include:
		(1)  diesel oxidation catalysts for school buses built 
prior to 1994;
		(2)  diesel particulate filters for school buses built 
from 1994 to 1998;
		(3)  purchase and use of emissions-reducing add-on 
equipment for school buses, including devices that reduce crankcase 
emissions;
		(4)  use of qualifying fuel; or                                        
		(5)  other technologies that the commission finds will 
bring significant emissions reductions.
	Sec. 390.103.  APPLICATION FOR GRANT.  (a)  Any school 
district in the state that operates one or more diesel fueled school 
buses or a transportation system provided by a countywide school 
district may apply for a grant under the program.
	(b)  An application for a grant under this subchapter must be 
made on an application provided by the commission and must contain 
information required by the commission.
	Sec. 390.104.  ELIGIBILITY REQUIREMENTS.  (a)  The 
commission shall by rule establish priorities for projects eligible 
to receive grants under this chapter.  The commission shall review 
and may modify the criteria and priorities as appropriate.
	(b)  School buses proposed for retrofit must be used on 
regular, daily routes to and from schools and have at least five 
years of useful remaining life unless the applicant agrees to 
remove the retrofit devices at the end of life of buses with less 
than five years of remaining life and reinstall them on other buses.
	(d)  The commission may approve payments for reasonable and 
necessary expenses for the labor to install emissions-reducing 
equipment.
	Sec. 390.106.  EXPIRATION.  This chapter expires August 31, 
2010.     
	SECTION 5.  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, 2005.