By: Watson, et al. S.B. No. 529
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the clean school bus program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (a), Section 386.252, Health and
  Safety Code, as amended by Section 3, Chapter 766, Section 3,
  Chapter 1095, and Section 11, Chapter 1125, Acts of the 79th
  Legislature, Regular Session, 2005, is reenacted and amended to
  read as follows:
         (a)  Money in the fund may be used only to implement and
  administer programs established under the plan and shall be
  allocated as follows:
               (1)  for the diesel emissions reduction incentive
  program, 87.5 percent of the money in the fund, of which [not more
  than four percent may be used for the clean school bus program and]
  not more than 10 percent may be used for on-road diesel purchase or
  lease incentives;
               (2)  for the new technology research and development
  program, 9.5 percent of the money in the fund, of which up to
  $250,000 is allocated for administration, up to $200,000 is
  allocated for a health effects study, $500,000 is to be deposited in
  the state treasury to the credit of the clean air account created
  under Section 382.0622 to supplement funding for air quality
  planning activities in affected counties, not less than 20 percent
  is to be allocated each year to support research related to air
  quality for the Houston-Galveston-Brazoria and Dallas-Fort Worth
  nonattainment areas by a nonprofit organization based in Houston of
  which $216,000 each year shall be contracted to the Energy Systems
  Laboratory at the Texas Engineering Experiment Station for the
  development and annual calculation of creditable statewide
  emissions reductions obtained through wind and other renewable
  energy resources for the State Implementation Plan, and the balance
  is to be allocated each year to that nonprofit organization based in
  Houston to be used to implement and administer the new technology
  research and development program under a contract with the
  commission for the purpose of identifying, testing, and evaluating
  new emissions-reducing technologies with potential for
  commercialization in this state and to facilitate their
  certification or verification; and
               (3)  for administrative costs incurred by the
  commission and the laboratory, three percent of the money in the
  fund.
         SECTION 2.  Effective September 1, 2008, Subsection (a),
  Section 386.252, Health and Safety Code, as amended by Section 3,
  Chapter 766, Section 3, Chapter 1095, and Section 12, Chapter 1125,
  Acts of the 79th Legislature, Regular Session, 2005, is reenacted
  and amended to read as follows:
         (a)  Money in the fund may be used only to implement and
  administer programs established under the plan and shall be
  allocated as follows:
               (1)  for the diesel emissions reduction incentive
  program, 64 percent of the money in the fund, of which [not more
  than four percent may be used for the clean school bus program and]
  not more than 10 percent may be used for on-road diesel purchase or
  lease incentives;
               (2)  for the new technology research and development
  program, 33 percent of the money in the fund, of which up to
  $250,000 is allocated for administration, up to $200,000 is
  allocated for a health effects study, $500,000 is to be deposited in
  the state treasury to the credit of the clean air account created
  under Section 382.0622 to supplement funding for air quality
  planning activities in affected counties, not less than 10 percent
  is to be allocated each year to support research related to air
  quality for the Houston-Galveston-Brazoria and Dallas-Fort Worth
  nonattainment areas by a nonprofit organization based in Houston of
  which $216,000 each year shall be contracted to the Energy Systems
  Laboratory at the Texas Engineering Experiment Station for the
  development and annual calculation of creditable statewide
  emissions reductions obtained through wind and other renewable
  energy resources for the State Implementation Plan, not less than
  25.5 percent is to be allocated each year to that nonprofit
  organization based in Houston to be used to implement and
  administer the new technology research and development program
  under a contract with the commission for the purpose of
  identifying, testing, and evaluating new emissions-reducing
  technologies with potential for commercialization in this state and
  to facilitate their certification or verification, not more than
  $12,500,000 is to be allocated each year from any excess funds to be
  administered by the commission to fund a study of regional ozone
  formation in this state, meteorological and chemical modeling, and
  issues related to ozone formation by ozone precursors and fine
  particulate matter formation in this state, and the balance is to be
  allocated each year to the commission to fund promising new
  technologies as identified through the new technology research and
  development program and recommended by that nonprofit organization
  based in Houston in order to permit obtaining the maximum credits
  for emissions reductions under the state's air quality state
  implementation plans; and
               (3)  for administrative costs incurred by the
  commission and the laboratory, three percent of the money in the
  fund.
         SECTION 3.  Subsection (c), Section 386.252, Health and
  Safety Code, is amended to read as follows:
         (c)  Notwithstanding Subsection (a), money [Money] in the
  fund that is not appropriated for the purposes provided by that
  subsection may be appropriated for [allocated to] the clean school
  bus program established under Chapter 390 [only if:
               [(1)     the money is available for that purpose after
  money is allocated for the other purposes of the fund as required by
  the state implementation plan; or
               [(2)     the amount of money deposited to the credit of the
  fund in a state fiscal year exceeds the amount the comptroller's
  biennial revenue estimate shows as the comptroller's estimated
  amount to be deposited to the credit of the fund in that year].
         SECTION 4.  Section 390.001, Health and Safety Code, is
  amended by adding Subdivision (6) to read as follows:
               (6)  "School bus" has the meaning assigned by Section
  541.201, Transportation Code.
         SECTION 5.  Section 390.002, Health and Safety Code, is
  amended by amending Subsection (b) and adding Subsections (c) and
  (d) to read as follows:
         (b)  Projects that may be considered for a grant under the
  program include:
               (1)  [diesel oxidation catalysts for school buses built
  before 1994;
               [(2)] diesel particulate filters for school buses built
  from 2000 to 2006 [1994 to 1998];
               (2)  closed crankcase filtration systems to eliminate
  diesel exhaust emitted from the engine crankcase for school buses
  built from 1992 to 2006;
               (3)  the purchase and use of other [emission-reducing]
  add-on equipment for school buses that has been verified by the
  United States Environmental Protection Agency or the California Air
  Resources Board as effective in reducing emissions[, including
  devices that reduce crankcase emissions];
               (4)  replacement of school buses built before 1994 that
  would not otherwise be replaced before September 1, 2011 [the use of
  qualifying fuel]; and
               (5)  other technologies that the commission finds will
  bring about significant emissions reductions.
         (c)  In determining whether school buses would not otherwise
  be replaced before the date provided by Subsection (b)(4), the
  commission shall consider reasonable school bus replacement
  schedules as determined by the commission in consultation with the
  Texas Education Agency. A grant under that subsection may not
  exceed 50 percent of the cost of replacement of each school bus for
  which the grant is made.
         (d)  The legislature intends for the program to result in the
  maximum reduction of emissions of diesel exhaust from the school
  bus fleet of this state for the duration of the program. In making
  grants in the state fiscal biennium ending August 31, 2009,
  preference shall be given to grants for the installation of closed
  crankcase filtration systems on all eligible school buses and to
  grants for the installation of diesel particulate filters on the
  oldest eligible school buses. The program is not intended to
  substitute for the normal schedule for replacing buses in this
  state's fleet of school buses.
         SECTION 6.  Subsections (a) and (b), Section 390.003, Health
  and Safety Code, are amended to read as follows:
         (a)  The following entities [A school district in this state
  that operates one or more diesel-fueled school buses or a
  transportation system provided by a countywide school district] may
  apply for and receive a grant under the program:
               (1)  a school district in this state that operates one
  or more diesel-fueled school buses;
               (2)  a transportation system provided by a countywide
  school district; or
               (3)  an entity that provides school bus service under a
  contract with a school district or with the parents of school
  children who are enrolled in a public elementary or secondary
  school and who ride on the entity's buses.
         (b)  The commission may adopt guidelines to allow a regional
  planning commission, council of governments, or similar regional
  planning agency created under Chapter 391, Local Government Code,
  [or] a private nonprofit organization, or a regional education
  service center to also apply for and receive a grant to improve the
  ability of the program to achieve its goals.
         SECTION 7.  Subsection (a), Section 390.004, Health and
  Safety Code, is amended to read as follows:
         (a)  The commission by rule shall establish criteria for
  setting priorities for projects eligible to receive grants under
  this chapter. The criteria must be consistent with Section
  390.002(d). The commission shall review and may modify the
  criteria and priorities as appropriate.
         SECTION 8.  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, 2007.