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.