Amend CSSB 1425 (Senate committee printing) as follows: (1) In SECTION 2 of the bill, in added Section 391.001, Health and Safety Code (page 1, line 60), strike "or diesel fuel, other than" and substitute ", diesel or". (2) In SECTION 2 of the bill, in added Section 391.001, Health and Safety Code (page 1, line 62), strike "methanol,". (3) In SECTION 2 of the bill in added Section 391.001, Health and Safety Code, strike Subdivisions (3), (4), and (5) (page 2, lines 3-10) and substitute: (3) "Golf cart" has the meaning assigned by Section 502.001, Transportation Code. (4) "Hybrid vehicle" means a vehicle with at least two different energy converters and two different energy storage systems on board the vehicle for the purpose of propelling the vehicle. (5) "Incremental cost" has the meaning assigned by Section 386.001. (6) "Light-duty motor vehicle" has the meaning assigned by Section 386.151. (7) "Motor vehicle" has the meaning assigned by Section 386.151. (8) "Neighborhood electric vehicle" means a motor vehicle that: (A) is originally manufactured to meet, and does meet, the equipment requirements and safety standards established for "low-speed vehicles" in Federal Motor Vehicle Safety Standard 500 (49 C.F.R. Section 571.500); (B) is a slow-moving vehicle, as defined by Section 547.001, Transportation Code, that is able to attain a speed of more than 20 miles per hour but not more than 25 miles per hour in one mile on a paved, level surface; (C) is a four-wheeled motor vehicle; (D) is powered by electricity or alternative power sources; (E) has a gross vehicle weight rating of less than 3,000 pounds; and (F) is not a golf cart. (9) "Program" means the Texas clean fleet program established under this chapter. (4) In SECTION 2 of the bill, in added Section 391.003, Health and Safety Code, strike Subsection (a) (page 2, lines 21-31) and substitute: (a) A vehicle is a qualifying vehicle that may be considered for a grant under the program if during the calendar year the entity purchases a new on-road vehicle that: (1) is certified to current federal emissions standards; (2) replaces a diesel-powered on-road vehicle of the same weight classification and use; and (3) is a hybrid vehicle or fueled by an alternative fuel. (5) In SECTION 2 of the bill, strike added Section 391.003(b)(1), Health and Safety Code (page 2, lines 33 and 34), and substitute: (1) is a neighborhood electric vehicle; (6) In SECTION 2 of the bill, strike added Section 391.005, Health and Safety Code (page 2, lines 51-63), and substitute the following: Sec. 391.005. ELIGIBILITY OF PROJECTS FOR GRANTS. (a) The commission by rule shall establish criteria for prioritizing projects eligible to receive grants under this chapter. The commission shall review and revise the criteria as appropriate. (b) To be eligible for a grant under the program, a project must: (1) result in a reduction in emissions of nitrogen oxides or other pollutants, as established by the commission, of at least 25 percent, based on: (A) the baseline emission level set by the commission under Subsection (g); and (B) the certified emission rate of the new vehicle; and (2) replace a vehicle that: (A) is an on-road vehicle that has been owned, registered, and operated by the applicant in Texas for at least the two years immediately preceding the submission of a grant application; (B) satisfies any minimum average annual mileage or fuel usage requirements established by the commission; (C) satisfies any minimum percentage of annual usage requirements established by the commission; and (D) is in operating condition and has at least two years of remaining useful life, as determined in accordance with criteria established by the commission. (c) As a condition of receiving a grant, the qualifying vehicle must be continuously owned, registered, and operated in the state by the grant recipient for at least five years from the date of reimbursement of the grant-funded expenses. Not less than 75 percent of the annual use of the qualifying vehicle, either mileage or fuel use as determined by the commission, must occur in the state. (d) The commission shall include and enforce the usage provisions in the grant contracts. The commission shall monitor compliance with the ownership and usage requirements, including submission of reports on at least an annual basis, or more frequently as determined by the commission. (e) The commission by contract may require the return of all or a portion of grant funds for a grant recipient's noncompliance with the usage and percentage of use requirements under this section. (f) A vehicle or engine replaced under this program must be rendered permanently inoperable by crushing the vehicle or making a hole in the engine block and permanently destroying the frame of the vehicle. The commission shall establish criteria for ensuring the permanent destruction of the engine and vehicle. The commission shall monitor and enforce the destruction requirements. (g) The commission shall establish baseline emission levels for emissions of nitrogen oxides for on-road vehicles being replaced. The commission may consider and establish baseline emission rates for additional pollutants of concern, as determined by the commission. (h) Mileage requirements established by the commission under Subsection (b)(2)(B) may differ by vehicle weight categories and type of use. (7) In SECTION 2 of the bill, strike added Section 391.007, Health and Safety Code (page 3, lines 2-14), and substitute the following: Sec. 391.007. AMOUNT OF GRANT. (a) The amount the commission shall award for each vehicle being replaced is: (1) 80 percent of the incremental cost for a heavy-duty diesel engine: (A) manufactured prior to implementation of federal or California emission standards; and (B) not certified to meet a specific emission level by either the U.S. Environmental Protection Agency or the California Air Resources Board; (2) 70 percent of the incremental cost for a heavy-duty diesel engine certified to meet the federal emission standards applicable to engines manufactured in 1990 through 1997; (3) 60 percent of the incremental cost for a heavy-duty diesel engine certified to meet the federal emission standards applicable to engines manufactured in 1998 through 2003; (4) 50 percent of the incremental cost for a heavy-duty diesel engine certified to meet the federal emission standards applicable to engines manufactured in 2004 and later; (5) 80 percent of the incremental cost for a light-duty diesel vehicle: (A) manufactured prior to the implementation of certification requirements; and (B) not certified to meet either mandatory or voluntary emission certification standards; (6) 70 percent of the incremental cost for a light-duty diesel vehicle certified to meet federal emission standards prior to 2004; and (7) 60 percent of the incremental cost for a light-duty diesel vehicle certified to meet federal emission standards applicable after 2003. (b) The commission may revise the standards for determining grant amounts, as needed to reflect changes to federal emission standards and decisions on pollutants of concern.