82R3742 JAM-F
 
  By: Otto H.B. No. 1037
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of an alternative fuel program to be funded
  by the Texas emissions reduction plan fund.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 386.252(a), Health and Safety Code, as
  amended by Chapters 1125 (H.B. 1796) and 1232 (S.B. 1759), Acts of
  the 81st Legislature, Regular Session, 2009, 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:
                     (A)  not more than four percent may be used for the
  clean school bus program;
                     (B)  not more than 10 percent may be used for
  on-road diesel purchase or lease incentives; [and]
                     (C)  a specified amount may be used for the new
  technology implementation grant program, from which a defined
  amount may be set aside for electricity storage projects related to
  renewable energy;
                     (D)  five percent shall be used for the clean
  fleet program; and
                     (E)  two percent may be used for the alternative
  fueling facilities program;
               (2)  for the new technology research and development
  program, nine percent of the money in the fund, of which:
                     (A)  up to $200,000 is allocated for a health
  effects study;
                     (B)  $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;
                     (C)  not less than 20 percent is to be allocated
  each year to support research related to air quality as provided by
  Section 387.010; and
                     (D)  the balance is allocated each year to the
  commission to be used to:
                           (i)  implement and administer the new
  technology research and development program 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
                           (ii)  contract with the Energy Systems
  Laboratory at the Texas Engineering Experiment Station for $216,000
  annually for the development and annual computation of creditable
  statewide emissions reductions obtained through wind and other
  renewable energy resources for the state implementation plan; and
               (3)  two percent is allocated to the commission and 1.5
  percent is allocated to the laboratory for administrative costs
  incurred by the commission and the laboratory.
         SECTION 2.  Section 386.252, Health and Safety Code, is
  amended by adding Subsection (e) to read as follows:
         (e)  The commission may allocate unexpended money designated
  for the alternative fueling facilities program to other programs
  described under Subsection (a) after the commission allocates money
  to recipients under the alternative fueling facilities program.
         SECTION 3.  Subtitle C, Title 5, Health and Safety Code, is
  amended by adding Chapter 393 to read as follows:
  CHAPTER 393. ALTERNATIVE FUELING FACILITIES PROGRAM
         Sec. 393.001.  DEFINITIONS. In this chapter:
               (1)  "Alternative fuel" means a fuel other than
  gasoline or diesel fuel, other than biodiesel fuel, including
  electricity, compressed natural gas, liquified natural gas,
  hydrogen, propane, or a mixture of fuels containing at least 85
  percent methanol by volume.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Program" means the Texas alternative fueling
  facilities program established under this chapter.
         Sec. 393.002.  PROGRAM. (a)  The commission shall establish
  and administer the Texas alternative fueling facilities program to
  provide fueling facilities for alternative fuel in nonattainment
  areas. Under the program, the commission shall provide a grant for
  each eligible facility to offset the cost of those facilities.
         (b)  An entity that constructs, reconstructs, or acquires an
  alternative fueling facility is eligible to participate in the
  program.
         Sec. 393.003.  APPLICATION FOR GRANT. (a)  An entity
  operating in this state that constructs, reconstructs, or acquires
  a facility to store, compress, or dispense alternative fuels may
  apply for and receive a grant under the program.
         (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 to apply for and receive a grant
  to improve the ability of the program to achieve its goals.
         (c)  An application for a grant under this chapter must be
  made on a form provided by the commission and must contain the
  information required by the commission.
         Sec. 393.004.  ELIGIBILITY OF FACILITIES FOR GRANTS. (a)  
  The commission by rule shall establish criteria for prioritizing
  facilities 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, the entity
  receiving the grant must agree to make the alternative fueling
  facility available to persons not associated with the entity at
  times designated by the grant agreement.
         (c)  A recipient of a grant under this chapter is not
  eligible to receive a second grant under this chapter for the same
  facility.
         Sec. 393.005.  RESTRICTION ON USE OF GRANT. A recipient of a
  grant under this chapter shall use the grant only to pay the costs
  of the facility for which the grant is made. The recipient may not
  use the grant to pay the recipient's administrative expenses.
         Sec. 393.006.  AMOUNT OF GRANT. For each eligible facility
  for which a recipient is awarded a grant under the program, the
  commission shall award the grant in an amount equal to the lesser
  of:
               (1)  50 percent of the sum of the actual costs incurred
  by the grant recipient in one calendar year to construct,
  reconstruct, or acquire the facility; or
               (2)  $500,000.
         Sec. 393.007.  EXPIRATION. This chapter expires August 31,
  2018.
         SECTION 4.  The Texas Commission on Environmental Quality
  shall adopt rules under Section 393.004, Health and Safety Code, as
  added by this Act, as soon as practicable after the effective date
  of this Act.
         SECTION 5.  This Act takes effect September 1, 2011.