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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas natural gas vehicle grant program. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 394.001, Health and Safety Code, as |
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added by Chapter 892 (S.B. 385), Acts of the 82nd Legislature, |
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Regular Session, 2011, is amended by adding Subdivisions (10) and |
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(11) to read as follows: |
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(10) "School bus" has the meaning assigned by Section |
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541.201, Transportation Code. |
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(11) "Taxicab" means a private passenger vehicle that |
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provides passenger taxicab transportation services for |
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compensation. |
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SECTION 2. Section 394.002, Health and Safety Code, as |
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added by Chapter 892 (S.B. 385), Acts of the 82nd Legislature, |
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Regular Session, 2011, is amended to read as follows: |
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Sec. 394.002. PROGRAM. The commission shall establish and |
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administer the Texas natural gas vehicle grant program to encourage |
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an entity that has a heavy-duty or medium-duty motor vehicle, a |
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school bus, or a taxicab to repower the vehicle with a natural gas |
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engine or replace the vehicle with a natural gas vehicle. Under the |
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program, the commission shall provide grants for eligible |
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heavy-duty [motor vehicles] and medium-duty motor vehicles, school |
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buses, and taxicabs to offset the incremental cost for the entity of |
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repowering or replacing the [heavy-duty or medium-duty motor] |
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vehicle, school bus, or taxicab. |
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SECTION 3. Section 394.003, Health and Safety Code, as |
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added by Chapter 892 (S.B. 385), Acts of the 82nd Legislature, |
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Regular Session, 2011, is amended to read as follows: |
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Sec. 394.003. QUALIFYING VEHICLES. (a) A heavy-duty or |
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medium-duty motor vehicle is a qualifying vehicle that may be |
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considered for a grant under the program if during the calendar year |
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the entity: |
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(1) purchased, leased, or otherwise commercially |
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financed the vehicle as a new on-road heavy-duty or medium-duty |
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motor vehicle that: |
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(A) is a natural gas vehicle; |
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(B) is certified to current federal emissions |
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standards; |
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(C) replaces an on-road heavy-duty or |
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medium-duty motor vehicle of the same weight classification and |
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use; and |
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(D) is powered by an engine certified to: |
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(i) emit not more than 0.2 grams of nitrogen |
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oxides per brake horsepower hour; or |
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(ii) meet or exceed the United States |
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Environmental Protection Agency's Bin 5 standard for light-duty |
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engines when powering the vehicle; or |
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(2) repowered the on-road motor vehicle to a natural |
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gas vehicle powered by a natural gas engine that: |
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(A) is certified to current federal emissions |
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standards; and |
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(B) is: |
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(i) a heavy-duty engine that is certified |
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to emit not more than 0.2 grams of nitrogen oxides per brake |
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horsepower hour; or |
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(ii) certified to meet or exceed the United |
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States Environmental Protection Agency's Bin 5 standard for |
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light-duty engines when powering the vehicle. |
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(a-1) A school bus or taxicab is a qualifying vehicle that |
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may be considered for a grant under the program if during the |
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calendar year the entity: |
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(1) purchased, leased, or otherwise commercially |
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financed the vehicle as a new school bus or taxicab that: |
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(A) is a natural gas vehicle; |
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(B) is certified to current federal emissions |
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standards; |
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(C) replaces a school bus or taxicab of the same |
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weight classification and use; and |
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(D) is powered by an engine that meets emission |
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standards designated for the program by the commission under |
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Subsection (a-2); or |
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(2) repowered the school bus or taxicab to a natural |
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gas vehicle powered by a natural gas engine that meets emission |
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standards designated for the program by the commission under |
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Subsection (a-2). |
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(a-2) The commission by rule may establish emission |
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standards applicable to school buses and taxicabs that qualify a |
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school bus or taxicab to be considered for a grant under the |
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program. |
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(b) A heavy-duty or medium-duty motor vehicle, school bus, |
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or taxicab is not a qualifying vehicle if the vehicle or the natural |
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gas engine powering the vehicle: |
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(1) has been awarded a grant under this chapter or |
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Chapter 390 for a previous reporting period; or |
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(2) has received a similar grant or tax credit in |
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another jurisdiction if that grant or tax credit program is relied |
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on for credit in the state implementation plan. |
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SECTION 4. Section 394.004(a), Health and Safety Code, as |
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added by Chapter 892 (S.B. 385), Acts of the 82nd Legislature, |
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Regular Session, 2011, is amended to read as follows: |
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(a) Only an entity operating in this state that operates a |
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heavy-duty or medium-duty motor vehicle, school bus, or taxicab may |
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apply for and receive a grant under this chapter. |
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SECTION 5. Sections 394.005(b), (c), (f), and (g), Health |
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and Safety Code, as added by Chapter 892 (S.B. 385), Acts of the |
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82nd Legislature, Regular Session, 2011, are amended to read as |
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follows: |
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(b) To be eligible for a grant under the program: |
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(1) the use of the qualifying vehicle must be |
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projected to result in a reduction in emissions of nitrogen oxides |
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of at least 25 percent as compared to the motor vehicle or engine |
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being replaced, 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) the qualifying vehicle must: |
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(A) replace a heavy-duty or medium-duty motor |
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vehicle, school bus, or taxicab that: |
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(i) is an on-road vehicle that has been |
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owned, leased, or otherwise commercially financed and registered |
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and operated by the applicant in Texas for at least the two years |
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immediately preceding the submission of a grant application; |
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(ii) satisfies any minimum average annual |
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mileage or fuel usage requirements established by the commission; |
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(iii) satisfies any minimum percentage of |
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annual usage requirements established by the commission; and |
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(iv) is in operating condition and has at |
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least two years of remaining useful life, as determined in |
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accordance with criteria established by the commission; or |
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(B) be a heavy-duty or medium-duty motor vehicle, |
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school bus, or taxicab repowered with a natural gas engine that: |
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(i) is installed in an on-road vehicle that |
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has been owned, leased, or otherwise commercially financed and |
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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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(ii) satisfies any minimum average annual |
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mileage or fuel usage requirements established by the commission; |
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(iii) satisfies any minimum percentage of |
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annual usage requirements established by the commission; and |
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(iv) is installed in an on-road vehicle |
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that, at the time of the vehicle's repowering, was in operating |
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condition and had at least two years of remaining useful life, as |
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determined in accordance with criteria established by the |
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commission. |
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(c) As a condition of receiving a grant, the qualifying |
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vehicle must be continuously owned, leased, or otherwise |
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commercially financed and registered and operated in the state by |
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the grant recipient until the earlier of the fourth anniversary of |
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the date of reimbursement of the grant-funded expenses or until the |
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date the vehicle has been in operation for 400,000 miles after the |
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date of reimbursement. Not less than 75 percent of the annual use |
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of the qualifying vehicle, either mileage or fuel use as determined |
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by the commission, must occur in: |
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(1) the counties any part of which are included in the |
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areas [area] described by Section 394.010(a-1) [394.010(a)]; or |
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(2) counties designated as nonattainment areas within |
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the meaning of Section 107(d) of the federal Clean Air Act (42 |
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U.S.C. Section 7407). |
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(f) A heavy-duty or medium-duty motor vehicle, school bus, |
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or taxicab replaced under this program must be rendered permanently |
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inoperable by crushing the vehicle, by making a hole in the engine |
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block and permanently destroying the frame of the vehicle, or by |
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another method approved by the commission that permanently removes |
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the vehicle from operation in this state. The commission shall |
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establish criteria for ensuring the permanent destruction of the |
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engine or vehicle. The commission shall enforce the destruction |
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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 heavy-duty or |
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medium-duty motor vehicles, school buses, or taxicabs being |
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replaced by using the emission certification for the engine or |
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vehicle being replaced. The commission may consider deterioration |
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of the emission performance of the engine of the vehicle being |
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replaced in establishing the baseline emission level. The |
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commission may consider and establish baseline emission rates for |
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additional pollutants of concern, as determined by the commission |
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after consultation with the advisory board. |
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SECTION 6. Sections 394.009(a) and (e), Health and Safety |
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Code, as added by Chapter 892 (S.B. 385), Acts of the 82nd |
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Legislature, Regular Session, 2011, are amended to read as follows: |
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(a) In this section, "participating dealer" means a person |
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who: |
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(1) sells, leases, or otherwise commercially finances |
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on-road heavy-duty or medium-duty natural gas vehicles, school |
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buses, taxicabs, or heavy-duty or medium-duty natural gas engines; |
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and |
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(2) has satisfied all requirements established by the |
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commission for participation in the program as a dealer. |
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(e) The commission shall: |
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(1) maintain and make available to the public online a |
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list of all qualified dealers; and |
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(2) establish requirements for participation in the |
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program by sellers of on-road heavy-duty or medium-duty natural gas |
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vehicles, school buses, taxicabs, and heavy-duty or medium-duty |
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natural gas engines. |
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SECTION 7. The heading to Section 394.010, Health and |
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Safety Code, is amended to read as follows: |
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Sec. 394.010. CLEAN TRANSPORTATION TRIANGLES [TRIANGLE]. |
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SECTION 8. Section 394.010, Health and Safety Code, is |
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amended by amending Subsections (a) and (d) and adding Subsections |
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(a-1) and (a-2) to read as follows: |
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(a) In this section, "state highway" means a highway in |
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this state included in the plan providing for a system of state |
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highways prepared by the executive director of the Texas Department |
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of Transportation under Section 201.103, Transportation Code. |
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(a-1) To ensure that natural gas vehicles purchased, |
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leased, or otherwise commercially financed or repowered under the |
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program have access to fuel, and to build the foundation for a |
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self-sustaining market for natural gas vehicles in Texas, the |
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commission shall award grants to support the development of a |
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network of natural gas vehicle fueling stations along: |
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(1) the interstate highways connecting Houston, San |
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Antonio, Dallas, and Fort Worth; and |
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(2) the interstate highways connecting San Antonio to |
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Corpus Christi and Laredo and the state highways connecting Corpus |
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Christi and Laredo. |
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(a-2) In awarding the grants, the commission shall provide |
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for: |
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(1) strategically placed natural gas vehicle fueling |
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stations: |
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(A) in and between the Houston, San Antonio, and |
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Dallas-Fort Worth areas to enable a natural gas vehicle to travel |
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along that triangular area relying solely on natural gas fuel; and |
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(B) in and between the Corpus Christi, Laredo, |
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and San Antonio areas to enable a natural gas vehicle to travel |
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along that triangular area relying solely on natural gas fuel; |
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(2) the grants for each region described by Subsection |
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(a-1)(1) or (2) to be dispersed through a competitive bidding |
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process to offset a portion of the cost of installation of the |
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natural gas dispensing equipment; |
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(3) contracts that require the recipient stations to |
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meet operational, maintenance, and reporting requirements as |
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specified by the commission; and |
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(4) for each region described by Subsection (a-1)(1) |
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or (2), a listing, to be maintained by the commission and made |
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available to the public online, of all natural gas vehicle fueling |
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stations that have received grant funding, including location and |
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hours of operation. |
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(d) Stations funded by grants under this section must be |
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publicly accessible and must be located, as applicable, not more |
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than three miles from an interstate highway described by Subsection |
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(a-1)(1) or not more than three miles from an interstate highway or |
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state highway described by Subsection (a-1)(2) [system]. The |
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commission shall give preference to: |
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(1) stations providing both liquefied natural gas and |
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compressed natural gas at a single location; and |
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(2) stations located not more than one mile from an |
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interstate highway [system]. |
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SECTION 9. Chapter 393, Health and Safety Code, as added by |
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Chapter 589 (S.B. 20), Acts of the 82nd Legislature, Regular |
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Session, 2011, is repealed. |
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SECTION 10. This Act takes effect September 1, 2013. |