2013S0577-1 03/08/13

By: Reynolds H.B. No. 3658

A BILL TO BE ENTITLED

AN ACT

relating to the use of the Texas emissions reduction plan fund.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 386.051, Health and Safety Code, is amended by amending Subsection (b) and adding Subsection (b-1) 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 air quality research support program established under Chapter 387;

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

(5) the new technology implementation grant program established under Chapter 391;

(6) the regional air monitoring program established under Section 386.252(a)(5);

(7) a health effects study as provided by Section 386.252(a)(7);

(8) air quality planning activities as provided by Section 386.252(a)(8); [and]

(9) a contract with the Energy Systems Laboratory at the Texas Engineering Experiment Station for computation of creditable statewide emissions reductions as provided by Section 386.252(a)(9);

(10) the clean fleet program established under Chapter 392;

(11) the alternative fueling facilities program established under Chapter 393; and

(12) the natural gas vehicle grants program and clean transportation triangle program established under Chapter 394.

(b-1) Under the plan, the commission may establish and administer other programs, including other grants or funding programs, as determined by the commission to be necessary or effective in fulfilling its duties and achieving the objectives described under Section 386.052. The commission may apply the criteria and requirements applicable to the programs under Subsection (b) to programs established under this subsection, or the commission may establish separate criteria and requirements as necessary to achieve the commission's objectives. The additional programs shall be consistent with and comply with all applicable laws, regulations, and guidelines pertaining to the use of state funds, the awarding and administration of grants and contracts, and achieving reductions in emissions of pollutants determined to be of concern. Under this subsection, the commission shall place a priority on programs that address the following goals:

(1) reduction of emissions of oxides of nitrogen or particulate matter from heavy-duty on-road vehicles and non-road equipment, including locomotives and marine vessels, at port facilities in nonattainment areas;

(2) reduction of emissions from the operation of drilling and related heavy-duty non-road equipment in oil and gas production fields where the commission determines that the programs can help prevent that area or an adjacent area from being in violation of national ambient air quality standards; and

(3) replacement, repower, or retrofit of heavy-duty on-road vehicles, medium-duty passenger vehicles, and non-road equipment to change from using gasoline or diesel fuel to engines or conversion systems certified under the United States Environmental Protection Agency's heavy-duty on-road or non-road engine emission or light-duty vehicle engine emission certification programs to using cleaner alternative fuels, either dedicated or in conjunction with regular fuel, and, particularly, alternative fuels produced in Texas.

SECTION 2. Subsection (a), Section 386.053, Health and Safety Code, is amended to read as follows:

(a) The commission shall adopt grant guidelines and criteria consistent with the requirements of Subchapter C [this chapter].

SECTION 3. Subsection (a), Section 386.054, Health and Safety Code, is amended to read as follows:

(a) The commission shall develop procedures for monitoring whether the emissions reductions projected for projects awarded grants under Subchapter C [this chapter] are actually achieved. Monitoring procedures may include project reviews and contract requirements that the grant recipient provide information semiannually about the project. If the commission requires an annual report, the report shall contain a minimum amount of information required from a recipient and the report format shall be simple and convenient.

SECTION 4. Subsection (a), Section 386.252, Health and Safety Code, as amended by Chapter 28 (S.B. 527), Acts of the 82nd Legislature, Regular Session, 2011, is amended to read as follows:

(a) Money in the fund may be used only to implement and administer programs established under the plan. Money appropriated to the commission to be used for the programs under Section 386.051(b) [and the total appropriation] shall be allocated as follows:

(1) not more than four percent may be used for the clean school bus program under Chapter 390;

(2) not more than 10 percent may be used for on-road diesel purchase or lease incentives under Section 386.112;

(3) a specified amount may be used for the new technology implementation grant program under Chapter 391, from which a defined amount may be set aside for electricity storage projects related to renewable energy;

(4) five percent shall be used for the clean fleet program under Chapter 392;

(5) up to [not more than $7 million shall be allocated in 2012 and 2013 and not more than] $3 million shall be used by the commission [allocated in 2014 and in subsequent years] to fund a regional air monitoring program in commission Regions 3 and 4 to be implemented under the commission's oversight, including direction regarding the type, number, location, and operation of, and data validation practices for, monitors funded by the program through a regional nonprofit entity located in North Texas having representation from counties, municipalities, higher education institutions, and private sector interests across the area;

(6) not less than 16 percent shall be used for the Texas natural gas vehicle grant program under Chapter 394;

(7) not more than four percent may be used to provide grants for natural gas fueling stations under the clean transportation triangle program under Section 394.010;

(8) two percent may be used for the Texas alternative fueling facilities program under Chapter 393;

(9) a specified amount may be used [is to be allocated] each year to support research related to air quality as provided by Chapter 387;

(10) [(7)] up to $200,000 may be used [is allocated] for a health effects study;

(11) [(8)] up to $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;

(12) [(9)] not more than $216,000 may be used by [is allocated to] the commission to contract with the Energy Systems Laboratory at the Texas Engineering Experiment Station 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

(13) [(10) not more than $3,400,000 is allocated to the commission for administrative costs incurred by the commission;

[(11) 1.5 percent of the money in the fund is allocated for administrative costs incurred by the laboratory; and

[(12)] the balance is to be used by [is allocated to] the commission for the diesel emissions reduction incentive program under Subchapter C.

SECTION 5. Subsections (b), (c), (d), and (e), Section 386.252, Health and Safety Code, are amended to read as follows:

(b) The commission may allocate unexpended money designated for the clean fleet program under Chapter 392 to other programs described under Subsection (a) after the commission allocates money to recipients under the clean fleet program.

(c) The commission may allocate unexpended money designated for the Texas alternative fueling facilities program under Chapter 393 to other programs described under Subsection (a) after the commission allocates money to recipients under the alternative fueling facilities program.

(d) The commission may reallocate money designated for the Texas natural gas vehicle grant program under Chapter 394 to other programs described under Subsection (a) if:

(1) the commission, in consultation with the governor and the advisory board, determines that the use of the money in the fund for that program will cause the state to be in noncompliance with the state implementation plan to the extent that federal action is likely; and

(2) the commission finds that the reallocation of some or all of the funding for the program would resolve the noncompliance.

(e) Under Subsection (d), the commission may not reallocate more than the minimum amount of money necessary to resolve the noncompliance. [money allocated under Subsection (a) to a particular program may be used for another program under the plan as determined by the commission.

[(c) Money in the fund may be allocated to the clean school bus program only if:

[(1) the money is available for that purpose after money is allocated for the other purposes of the fund as required by the state implementation plan; or

[(2) the amount of money deposited to the credit of the fund in a state fiscal year exceeds the amount the comptroller's biennial revenue estimate shows as the comptroller's estimated amount to be deposited to the credit of the fund in that year.

[(d) The commission may allocate unexpended money designated for the clean fleet program to other programs described under Subsection (a) after the commission allocates money to recipients under the clean fleet program.

[(e) The commission may allocate unexpended money designated for the Texas 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 6. Subsection (f), Section 386.252, Health and Safety Code, as added by Chapter 892 (S.B. 385), Acts of the 82nd Legislature, Regular Session, 2011, is amended to read as follows:

(f) Money appropriated to the commission for programs under Section 386.051(c) shall be allocated to those programs as determined by the commission [Notwithstanding Subsection (a), the commission may reallocate money in the fund if:

[(1) the commission, in consultation with the governor and the advisory board, determines that the use of the money in the fund for the program established under Chapter 394 will cause the state to be in noncompliance with the state implementation plan to the extent that federal action is likely; and

[(2) the commission finds that the reallocation of some or all of the funding for the program established under Chapter 394 would resolve the noncompliance].

SECTION 7. Subsection (g), Section 386.252, Health and Safety Code, is amended to read as follows:

(g) If the legislature does not specify amounts or percentages from the total appropriation to be allocated under Subsection (a) or (f), the commission shall determine the amounts of the total appropriation to be allocated under each of those subsections [Under Subsection (f), the commission may not reallocate more than the minimum amount of money necessary to resolve the noncompliance].

SECTION 8. Section 386.252, Health and Safety Code, is amended by adding Subsections (h), (i), (j), and (k) to read as follows:

(h) Unless a specified amount is appropriated for administrative costs, of the total appropriation to the commission from the fund, up to four percent or $4 million, whichever is greater, may be used by the commission for administrative costs.

(i) Subject to the limitations outlined in this section and any additional limitations placed on the use of the appropriated funds, money allocated under this section to a particular program may be used for another program under the plan as determined by the commission.

(j) Up to 1.5 percent of the money in the fund may be used for administrative costs incurred by the laboratory for work required under this chapter.

(k) If a specified percentage or amount from the fund is appropriated for a particular program or purpose that differs from the allocation percentage or amount established in this section, the specified appropriation percentage or amount shall apply.

SECTION 9. Subsection (a), Section 386.252, Health and Safety Code, as amended by Chapters 589 (Senate Bill No. 20) and 892 (Senate Bill No. 385), Acts of the 82nd Legislature, Regular Session, 2011, is repealed.

SECTION 10. Subsection (f), Section 386.252, Health and Safety Code, as added by Chapter 589 (Senate Bill No. 20), Acts of the 82nd Legislature, Regular Session, 2011, is repealed.

SECTION 11. This Act takes effect September 1, 2013.