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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of an alternative fuel program to be funded |
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by the Texas emissions reduction plan fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 386.252, Health and Safety Code, is |
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amended by amending Subsection (a) and adding Subsection (d) to |
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read as follows: |
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(a) Money in the fund may be used only to implement and |
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administer programs established under the plan and shall be |
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allocated as follows: |
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(1) for the diesel emissions reduction incentive |
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program, 87.5 percent of the money in the fund, of which not more |
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than four percent may be used for the clean school bus program, five |
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percent shall be used for the clean fleet program, and not more than |
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10 percent may be used for on-road diesel purchase or lease |
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incentives; |
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(2) for the new technology research and development |
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program, 9.5 percent of the money in the fund, of which up to |
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$250,000 is allocated for administration, up to $200,000 is |
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allocated for a health effects study, $500,000 is to be deposited in |
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the state treasury to the credit of the clean air account created |
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under Section 382.0622 to supplement funding for air quality |
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planning activities in affected counties, not less than 20 percent |
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is to be allocated each year to support research related to air |
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quality for the Houston-Galveston-Brazoria and Dallas-Fort Worth |
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nonattainment areas by a nonprofit organization based in Houston of |
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which $216,000 each year shall be contracted to the Energy Systems |
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Laboratory at the Texas Engineering Experiment Station for the |
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development and annual calculation of creditable statewide |
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emissions reductions obtained through wind and other renewable |
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energy resources for the State Implementation Plan, and the balance |
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is to be allocated each year to a nonprofit organization or an |
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institution of higher education based in Houston to be used to |
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implement and administer the new technology research and |
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development program under a contract with the commission for the |
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purpose of identifying, testing, and evaluating new |
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emissions-reducing technologies with potential for |
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commercialization in this state and to facilitate their |
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certification or verification; and |
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(3) for administrative costs incurred by the |
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commission and the laboratory, three percent of the money in the |
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fund. |
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(d) The commission may allocate unexpended money designated |
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for the clean fleet program to other programs described under |
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Subsection (a) after the commission allocates money to recipients |
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under the clean fleet program. |
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SECTION 2. Subtitle C, Title 5, Health and Safety Code, is |
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amended by adding Chapter 391 to read as follows: |
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CHAPTER 391. TEXAS CLEAN FLEET PROGRAM |
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Sec. 391.001. DEFINITIONS. In this chapter: |
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(1) "Alternative fuel" means a fuel other than |
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gasoline, diesel or biodiesel fuel, including electricity, |
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compressed natural gas, liquified natural gas, hydrogen, propane, |
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or a mixture of fuels containing at least 85 percent methanol by |
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volume. |
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(2) "Commission" means the Texas Commission on |
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Environmental Quality. |
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(3) "Golf cart" has the meaning assigned by Section |
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502.001, Transportation Code. |
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(4) "Hybrid vehicle" means a vehicle with at least two |
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different energy converters and two different energy storage |
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systems on board the vehicle for the purpose of propelling the |
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vehicle. |
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(5) "Incremental cost" has the meaning assigned by |
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Section 386.001. |
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(6) "Light-duty motor vehicle" has the meaning |
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assigned by Section 386.151. |
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(7) "Motor vehicle" has the meaning assigned by |
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Section 386.151. |
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(8) "Neighborhood electric vehicle" means a motor |
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vehicle that: |
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(A) is originally manufactured to meet, and does |
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meet, the equipment requirements and safety standards established |
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for "low-speed vehicles" in Federal Motor Vehicle Safety Standard |
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No. 500 (49 C.F.R. Section 571.500); |
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(B) is a slow-moving vehicle, as defined by |
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Section 547.001, Transportation Code, that is able to attain a |
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speed of more than 20 miles per hour but not more than 25 miles per |
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hour in one mile on a paved, level surface; |
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(C) is a four-wheeled motor vehicle; |
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(D) is powered by electricity or alternative |
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power sources; |
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(E) has a gross vehicle weight rating of less |
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than 3,000 pounds; and |
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(F) is not a golf cart. |
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(9) "Program" means the Texas clean fleet program |
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established under this chapter. |
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Sec. 391.002. PROGRAM. (a) The commission shall establish |
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and administer the Texas clean fleet program to encourage a person |
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that has a fleet of vehicles to convert diesel-powered vehicles to |
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alternative fuel or hybrid vehicles or replace them with |
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alternative fuel or hybrid vehicles. Under the program, the |
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commission shall provide grants for eligible projects to offset the |
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incremental cost of projects for fleet owners. |
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(b) An entity that places 25 or more qualifying vehicles in |
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service for use entirely in this state during a calendar year is |
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eligible to participate in the program. |
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Sec. 391.003. QUALIFYING VEHICLES. (a) A vehicle is a |
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qualifying vehicle that may be considered for a grant under the |
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program if during the calendar year the entity purchases a new |
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on-road vehicle that: |
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(1) is certified to current federal emissions |
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standards; |
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(2) replaces a diesel-powered on-road vehicle of the |
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same weight classification and use; and |
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(3) is a hybrid vehicle or fueled by an alternative |
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fuel. |
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(b) A vehicle is not a qualifying vehicle if the vehicle: |
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(1) is a neighborhood electric vehicle; |
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(2) has been used as a qualifying vehicle to qualify |
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for a grant under this chapter for a previous reporting period or by |
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another entity; or |
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(3) has qualified for a similar grant or tax credit in |
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another jurisdiction. |
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Sec. 391.004. APPLICATION FOR GRANT. (a) An entity |
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operating in this state that operates a fleet of at least 100 |
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vehicles may apply for and receive a grant under the program. |
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(b) The commission may adopt guidelines to allow a regional |
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planning commission, council of governments, or similar regional |
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planning agency created under Chapter 391, Local Government Code, |
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or a private nonprofit organization to apply for and receive a grant |
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to improve the ability of the program to achieve its goals. |
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(c) An application for a grant under this chapter must be |
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made on a form provided by the commission and must contain the |
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information required by the commission. |
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Sec. 391.005. ELIGIBILITY OF PROJECTS FOR GRANTS. (a) The |
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commission by rule shall establish criteria for prioritizing |
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projects eligible to receive grants under this chapter. The |
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commission shall review and revise the criteria as appropriate. |
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(b) To be eligible for a grant under the program, a project |
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must: |
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(1) result in a reduction in emissions of nitrogen |
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oxides or other pollutants, as established by the commission, of at |
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least 25 percent, based on: |
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(A) the baseline emission level set by the |
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commission under Subsection (g); and |
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(B) the certified emission rate of the new |
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vehicle; and |
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(2) replace a vehicle that: |
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(A) is an on-road vehicle that has been owned, |
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registered, and operated by the applicant in Texas for at least the |
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two years immediately preceding the submission of a grant |
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application; |
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(B) satisfies any minimum average annual mileage |
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or fuel usage requirements established by the commission; |
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(C) satisfies any minimum percentage of annual |
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usage requirements established by the commission; and |
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(D) is in operating condition and has at least |
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two years of remaining useful life, as determined in accordance |
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with criteria established by the commission. |
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(c) As a condition of receiving a grant, the qualifying |
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vehicle must be continuously owned, registered, and operated in the |
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state by the grant recipient for at least five years from the date |
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of reimbursement of the grant-funded expenses. Not less than 75 |
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percent of the annual use of the qualifying vehicle, either mileage |
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or fuel use as determined by the commission, must occur in the |
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state. |
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(d) The commission shall include and enforce the usage |
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provisions in the grant contracts. The commission shall monitor |
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compliance with the ownership and usage requirements, including |
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submission of reports on at least an annual basis, or more |
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frequently as determined by the commission. |
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(e) The commission by contract may require the return of all |
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or a portion of grant funds for a grant recipient's noncompliance |
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with the usage and percentage of use requirements under this |
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section. |
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(f) A vehicle or engine replaced under this program must be |
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rendered permanently inoperable by crushing the vehicle or making a |
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hole in the engine block and permanently destroying the frame of the |
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vehicle. The commission shall establish criteria for ensuring the |
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permanent destruction of the engine and vehicle. The commission |
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shall monitor and enforce the destruction requirements. |
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(g) The commission shall establish baseline emission levels |
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for emissions of nitrogen oxides for on-road vehicles being |
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replaced. The commission may consider and establish baseline |
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emission rates for additional pollutants of concern, as determined |
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by the commission. |
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(h) Mileage requirements established by the commission |
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under Subsection (b)(2)(B) may differ by vehicle weight categories |
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and type of use. |
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Sec. 391.006. RESTRICTION ON USE OF GRANT. A recipient of a |
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grant under this chapter shall use the grant to pay the incremental |
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costs of the project for which the grant is made, which may include |
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the initial cost of the alternative fuel vehicle and the reasonable |
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and necessary expenses incurred for the labor needed to install |
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emissions-reducing equipment. The recipient may not use the grant |
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to pay the recipient's administrative expenses. |
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Sec. 391.007. AMOUNT OF GRANT. (a) The amount the |
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commission shall award for each vehicle being replaced is: |
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(1) 80 percent of the incremental cost for a |
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heavy-duty diesel engine: |
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(A) manufactured prior to implementation of |
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federal or California emission standards; and |
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(B) not certified to meet a specific emission |
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level by either the U.S. Environmental Protection Agency or the |
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California Air Resources Board; |
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(2) 70 percent of the incremental cost for a |
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heavy-duty diesel engine certified to meet the federal emission |
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standards applicable to engines manufactured in 1990 through 1997; |
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(3) 60 percent of the incremental cost for a |
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heavy-duty diesel engine certified to meet the federal emission |
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standards applicable to engines manufactured in 1998 through 2003; |
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(4) 50 percent of the incremental cost for a |
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heavy-duty diesel engine certified to meet the federal emission |
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standards applicable to engines manufactured in 2004 and later; |
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(5) 80 percent of the incremental cost for a |
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light-duty diesel vehicle: |
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(A) manufactured prior to the implementation of |
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certification requirements; and |
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(B) not certified to meet either mandatory or |
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voluntary emission certification standards; |
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(6) 70 percent of the incremental cost for a |
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light-duty diesel vehicle certified to meet federal emission |
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standards prior to 2004; and |
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(7) 60 percent of the incremental cost for a |
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light-duty diesel vehicle certified to meet federal emission |
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standards applicable after 2003. |
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(b) The commission may revise the standards for determining |
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grant amounts, as needed to reflect changes to federal emission |
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standards and decisions on pollutants of concern. |
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Sec. 391.008. EXPIRATION. This chapter expires August 31, |
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2017. |
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SECTION 3. (a) In this section: |
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(1) "Alternative fuel" means a fuel other than |
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gasoline or diesel fuel, other than biodiesel fuel, including |
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electricity, compressed natural gas, liquified natural gas, |
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hydrogen, propane, methanol, or a mixture of fuels containing at |
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least 85 percent methanol by volume. |
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(2) "Commission" means the Texas Commission on |
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Environmental Quality. |
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(b) The commission shall conduct an alternative fueling |
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facilities study to: |
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(1) assess the correlation between the installation of |
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fueling facilities in nonattainment areas and the deployment of |
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fleet vehicles that use alternative fuels; and |
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(2) determine the emissions reductions achieved from |
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replacing a diesel-powered engine with an engine utilizing |
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alternative fuels. |
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(c) From the emissions reductions determined under |
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Subsection (b) of this section, the commission shall determine the |
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amount of emissions reductions which are fairly attributable to the |
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installation of an alternative fuel fueling facility and the |
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combustion of the alternative fuel in the vehicles fueled by the |
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alternative fuel fueling facility. |
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(d) In connection with the study conducted under this |
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section, the commission shall seek approval for credit in the state |
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implementation plan from the United States Environmental |
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Protection Agency for emissions reductions that can be: |
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(1) directly attributed to an alternative fuel fueling |
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facility; and |
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(2) achieved as a consequence of an alternative fuel |
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fueling facility encouraging the use of alternatively fueled |
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vehicles. |
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(e) The commission shall include in the commission's |
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biennial report to the legislature the findings of the study |
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conducted under this section and the status of the discussions with |
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the United States Environmental Protection Agency regarding credit |
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for emissions reductions in the state implementation plan which can |
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be achieved as a result of the installation of alternative fuel |
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fueling facilities. |
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(f) This section expires August 31, 2011. |
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SECTION 4. The Texas Commission on Environmental Quality |
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shall adopt rules under Section 391.005, Health and Safety Code, as |
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added by this Act, as soon as practicable after the effective date |
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of this Act. |
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SECTION 5. This Act takes effect September 1, 2009. |