81R10354 SMH-D

By: Strama H.B. No. 2867

A BILL TO BE ENTITLED

AN ACT

relating to the development by the Texas Commission on Environmental Quality of a rebate program for plug-in hybrid motor vehicles.

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 projects established under that subchapter;

(2) the motor vehicle purchase or lease incentive program established under Subchapter D;

(3) the new technology research and development program established under Chapter 387; [and]

(4) the clean school bus program established under Chapter 390; and

(5) the plug-in hybrid motor vehicle rebate program established under Subchapter G.

SECTION 2. Section 386.252(a), Health and Safety Code, is 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, and a portion determined by the commission may be used for light-duty plug-in hybrid motor vehicle rebates;

(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 a nonprofit organization or an institution of higher education 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 3. Chapter 386, Health and Safety Code, is amended by adding Subchapter G to read as follows:

SUBCHAPTER G. PLUG-IN HYBRID MOTOR VEHICLE REBATE PROGRAM

Sec. 386.301. DEFINITIONS. In this subchapter:

(1) "Light-duty motor vehicle" and "motor vehicle" have the meanings assigned by Section 386.151.

(2) "Plug-in hybrid motor vehicle" means a vehicle that:

(A) draws motive power from a battery that:

(i) has a capacity of at least four kilowatt-hours; and

(ii) can be recharged from an external source of electricity; and

(B) is a light-duty motor vehicle.

Sec. 386.302. COMMISSION DUTIES REGARDING PLUG-IN HYBRID MOTOR VEHICLE REBATE PROGRAM. (a) The commission shall develop a rebate program for plug-in hybrid motor vehicles and shall adopt rules necessary to implement the program.

(b) The program shall authorize statewide rebates for the purchase of new plug-in hybrid motor vehicles for a purchaser who agrees to register the vehicle in this state and operate the vehicle in this state for not less than 75 percent of the vehicle's annual mileage.

(c) Only one rebate may be provided for each new plug-in hybrid motor vehicle.

Sec. 386.303. PLUG-IN HYBRID MOTOR VEHICLE REBATE. A new plug-in hybrid motor vehicle is eligible for a $4,000 rebate.

Sec. 386.304. MODIFICATION OF REBATE. After evaluating new technologies, the commission may change the rebate established by Section 386.303 to improve the ability of the program to achieve its goals, including a phaseout of the rebate based on the level of market saturation of each vehicle, consistent with federal regulations governing the phaseout, if any, of incentives for hybrid vehicles.

Sec. 386.305. MANUFACTURER'S REPORT. Not later than July 1 of each year and before the beginning of the manufacturer's vehicle model year, a manufacturer of motor vehicles shall provide to the commission a list of the new plug-in hybrid motor vehicle models that the manufacturer intends to sell in this state during that model year. The manufacturer may supplement the list provided to the commission under this section as necessary to include additional new plug-in hybrid motor vehicle models the manufacturer intends to sell in this state during the model year.

Sec. 386.306. LIST OF ELIGIBLE VEHICLES. (a) On August 1 of each year, the commission shall publish a list of the new model plug-in hybrid motor vehicles as listed for the commission under Section 386.305. The commission shall publish and supplement that list as necessary to include additional new plug-in hybrid motor vehicle models listed in a supplement to the original list provided by a manufacturer under Section 386.305.

(b) The commission shall distribute the list of eligible plug-in hybrid motor vehicles to all new motor vehicle dealers in this state.

Sec. 386.307. COMMISSION TO ACCOUNT FOR REBATES. (a) The commission by rule shall develop a method to administer and account for the plug-in hybrid motor vehicle rebates authorized by this subchapter and to pay rebates to the purchaser of a new plug-in hybrid motor vehicle on application of the purchaser as provided by this subchapter.

(b) The commission shall develop and publish forms and instructions for the purchaser of a new plug-in hybrid motor vehicle to use in applying to the commission for a rebate under this subchapter. The commission shall make the forms available to new motor vehicle dealers. Dealers shall make the forms available to their prospective purchasers.

(c) In addition to other forms developed and published under this section, the commission shall develop and publish a verification form by which, with information provided by the dealer, the commission can verify the sale of a vehicle covered by this subchapter. The verification form must include at least the name of the purchaser, the vehicle identification number of the vehicle involved, the date of the purchase, and the name of the new motor vehicle dealer involved in the transaction. At the time of sale of a vehicle eligible for a rebate under this subchapter, the dealer shall complete the verification form supplied to the dealer by the commission. The purchaser must include the completed verification form as part of the purchaser's application for a rebate. The dealer shall maintain a copy of the completed verification form for at least two years from the date of the transaction.

Sec. 386.308. SUSPENSION OF REBATES. (a) The commission shall keep a record of plug-in hybrid motor vehicle rebate applications and payments.

(b) If the balance of the money in the fund available for plug-in hybrid motor vehicle rebates falls below 15 percent of the total amount allocated for the rebates during a fiscal year, the commission may suspend the rebates until the date the commission can certify that the balance available in the fund for rebates is an amount adequate to resume the rebates or until the beginning of the next fiscal year, whichever is earlier. If the commission suspends the rebates, the commission shall immediately notify all new motor vehicle dealers that the rebates have been suspended.

(c) The commission shall establish a toll-free telephone number available to motor vehicle dealers to call to verify that rebates are available. The commission may provide for issuing verification numbers over the telephone.

(d) Reliance by a dealer on information provided by the commission is a complete defense to an action involving or based on eligibility of a vehicle for a rebate or availability of vehicles eligible for a rebate.

SECTION 4. Not later than January 1, 2010, the Texas Commission on Environmental Quality shall adopt rules under Subchapter G, Chapter 386, Health and Safety Code, as added by this Act.

SECTION 5. This Act takes effect September 1, 2009.