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A BILL TO BE ENTITLED
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AN ACT
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relating to alternative fuel fleets of certain governmental |
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entities, including funding for motor vehicles, infrastructure, |
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and equipment. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 2158.004(a), (b), (c), and (d), |
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Government Code, are amended to read as follows: |
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(a) A state agency operating a fleet of more than 15 |
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vehicles, excluding law enforcement and emergency vehicles, may not |
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purchase or lease a motor vehicle unless that vehicle uses |
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compressed natural gas, liquefied natural gas, liquefied petroleum |
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gas, methanol or methanol/gasoline blends of 85 percent or greater, |
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ethanol or ethanol/gasoline blends of 85 percent or greater, |
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biodiesel or biodiesel/diesel blends of 20 percent or greater, |
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hydrogen fuel cells, or electricity, including electricity to power |
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a plug-in hybrid motor vehicle. |
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(b) A state agency may obtain equipment or refueling |
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facilities necessary to operate vehicles using compressed natural |
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gas, liquefied natural gas, liquefied petroleum gas, methanol or |
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methanol/gasoline blends of 85 percent or greater, ethanol or |
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ethanol/gasoline blends of 85 percent or greater, biodiesel or |
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biodiesel/diesel blends of 20 percent or greater, hydrogen fuel |
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cells, or electricity, including electricity to power a plug-in |
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hybrid motor vehicle: |
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(1) by purchase or lease as authorized by law; |
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(2) by gift or loan of the equipment or facilities; or |
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(3) by gift or loan of the equipment or facilities or |
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by another arrangement under a service contract for the supply of |
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compressed natural gas, liquefied natural gas, liquefied petroleum |
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gas, methanol or methanol/gasoline blends of 85 percent or greater, |
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ethanol or ethanol/gasoline blends of 85 percent or greater, |
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biodiesel or biodiesel/diesel blends of 20 percent or greater, |
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hydrogen fuel cells, or electricity, including electricity to power |
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a plug-in hybrid motor vehicle. |
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(c) If the equipment or facilities are donated, loaned, or |
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provided through another arrangement with the supplier of |
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compressed natural gas, liquefied natural gas, liquefied petroleum |
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gas, methanol or methanol/gasoline blends of 85 percent or greater, |
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ethanol or ethanol/gasoline blends of 85 percent or greater, |
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biodiesel or biodiesel/diesel blends of 20 percent or greater, |
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hydrogen fuel cells, or electricity, including electricity to power |
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a plug-in hybrid motor vehicle, the supplier is entitled to recoup |
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its actual cost of donating, loaning, or providing the equipment or |
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facilities through its fuel charges under the supply contract. |
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(d) The commission may waive the requirements of this |
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section for a state agency on receipt of certification supported by |
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evidence acceptable to the commission that: |
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(1) the agency's vehicles will be operating primarily |
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in an area in which neither the agency nor a supplier has or can |
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reasonably be expected to establish adequate refueling for |
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compressed natural gas, liquefied natural gas, liquefied petroleum |
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gas, methanol or methanol/gasoline blends of 85 percent or greater, |
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ethanol or ethanol/gasoline blends of 85 percent or greater, |
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biodiesel or biodiesel/diesel blends of 20 percent or greater, |
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hydrogen fuel cells, or electricity, including electricity to power |
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a plug-in hybrid motor vehicle; or |
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(2) the agency is unable to obtain equipment or |
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refueling facilities necessary to operate vehicles using |
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compressed natural gas, liquefied natural gas, liquefied petroleum |
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gas, methanol or methanol/gasoline blends of 85 percent or greater, |
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ethanol or ethanol/gasoline blends of 85 percent or greater, |
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biodiesel or biodiesel/diesel blends of 20 percent or greater, |
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hydrogen fuel cells, or electricity, including electricity to power |
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a plug-in hybrid motor vehicle, at a projected cost that is |
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reasonably expected to be no greater than the net costs of continued |
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use of conventional gasoline or diesel fuels, measured over the |
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expected useful life of the equipment or facilities supplied. |
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SECTION 2. Subchapter A, Chapter 2158, Government Code, is |
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amended by adding Section 2158.0051 to read as follows: |
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Sec. 2158.0051. ALTERNATIVE FUEL FLEETS. (a) It is the |
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intent of this state that: |
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(1) the vehicle fleet of a state agency that operates a |
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fleet of more than 15 motor vehicles, subject to the availability of |
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funds, shall be converted into or replaced with motor vehicles that |
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use compressed natural gas, liquefied natural gas, liquefied |
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petroleum gas, hydrogen fuel cells, or electricity, including fully |
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electric vehicles and plug-in hybrid motor vehicles; |
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(2) a county or municipality that operates a vehicle |
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fleet of more than 15 motor vehicles is authorized, but is not |
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required, to convert the fleet into or replace the fleet with motor |
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vehicles that use compressed natural gas, liquefied natural gas, |
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liquefied petroleum gas, hydrogen fuel cells, or electricity, |
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including fully electric vehicles and plug-in hybrid motor |
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vehicles; and |
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(3) motor vehicles of a state agency, county, or |
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municipality described by Subdivisions (1) and (2) that are capable |
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of using fuels described by those subdivisions be primarily |
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operated with those fuels rather than conventional gasoline or |
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diesel fuels. |
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(b) In complying with Subsection (a), a state agency to |
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which this section applies shall prioritize: |
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(1) the purchase or lease of new motor vehicles when |
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replacing vehicles or adding vehicles to the fleet; |
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(2) the purchase of new motor vehicles to replace |
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vehicles that have the highest total mileage and do not use a fuel |
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described by Subsection (a); |
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(3) the conversion of motor vehicles that were driven |
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the most miles during the previous biennium and do not use a fuel |
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described by Subsection (a); and |
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(4) to the extent feasible, obtaining, whether by |
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conversion, purchase, or lease, motor vehicles that use compressed |
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natural gas, liquefied natural gas, or liquefied petroleum gas. |
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(c) Subsection (a)(1) does not apply to law enforcement or |
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emergency vehicles. |
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SECTION 3. Subtitle C, Title 5, Health and Safety Code, is |
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amended by adding Chapter 395 to read as follows: |
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CHAPTER 395. GOVERNMENTAL ALTERNATIVE FUEL FLEET GRANT PROGRAM |
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Sec. 395.001. DEFINITIONS. In this chapter: |
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(1) "Alternative fuel" means compressed natural gas, |
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liquefied natural gas, liquefied petroleum gas, hydrogen fuel |
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cells, or electricity, including electricity to power fully |
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electric vehicles and plug-in hybrid motor vehicles. |
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(2) "Commission" means the Texas Commission on |
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Environmental Quality. |
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(3) "Incremental cost" means the cost of a motor |
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vehicle or the cost of purchasing or installing refueling |
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infrastructure and equipment less a baseline cost that would |
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otherwise be incurred by a grant recipient in the normal course of |
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business. Incremental costs may include added lease or fuel costs |
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as well as additional capital costs. |
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(4) "Motor vehicle" means a self-propelled device |
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designed for transporting persons or property on a public highway |
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that is required to be registered under Chapter 502, Transportation |
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Code. |
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(5) "Political subdivision" means a school district, |
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junior college district, river authority, water district or other |
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special district, or other political subdivision created under the |
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constitution or a statute of this state, other than a county or |
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municipality. |
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(6) "Program" means the governmental alternative fuel |
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fleet grant program established under this chapter. |
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(7) "State agency" has the meaning assigned by Section |
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2151.002, Government Code. |
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Sec. 395.002. PROGRAM. (a) The commission shall establish |
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and administer a governmental alternative fuel fleet grant program |
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to assist an eligible state agency, county, municipality, or |
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political subdivision in: |
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(1) purchasing or leasing new motor vehicles that |
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operate primarily on an alternative fuel; or |
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(2) converting motor vehicles to operate primarily on |
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an alternative fuel. |
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(b) The program is funded under the Texas emissions |
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reduction plan established under Chapter 386. |
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(c) The program may provide a grant to a state agency, |
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county, municipality, or political subdivision to: |
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(1) purchase or lease a new motor vehicle described by |
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Section 395.004; |
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(2) convert a motor vehicle to operate primarily on an |
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alternative fuel; or |
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(3) purchase, lease, or install refueling |
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infrastructure or equipment or procure refueling services as |
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described by Section 395.005 to store and dispense alternative fuel |
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needed for a motor vehicle described by Subdivision (1) or (2). |
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Sec. 395.003. ELIGIBLE APPLICANTS. (a) A state agency, |
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county, or municipality is eligible to apply for a grant under this |
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program if the entity operates a fleet of more than 15 motor |
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vehicles, excluding motor vehicles that are owned and operated by a |
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private company or other third party under a contract with the |
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entity. |
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(b) A mass transit or school transportation provider or |
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other broadly similar public entity established to provide public |
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or school transportation services is eligible for a grant under |
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this program. |
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(c) If, on April 1 of an even-numbered year, the commission |
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has awarded less than 75 percent of the total amount to be awarded |
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in that fiscal year to eligible applicants under Subsections (a) |
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and (b), a political subdivision is eligible to apply for a grant |
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under the program during the remainder of that fiscal year. |
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Sec. 395.004. MOTOR VEHICLE REQUIREMENTS. (a) A grant |
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recipient may purchase or lease with money from a grant under the |
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program a new motor vehicle that: |
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(1) is originally manufactured to operate using one or |
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more alternative fuels or is converted to operate using one or more |
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alternative fuels before the first retail sale of the vehicle; and |
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(2) has a dedicated system, dual-fuel system, or |
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bi-fuel system with a United States Environmental Protection Agency |
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rating of at least 75 miles per gallon equivalent or a 75-mile |
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combined city and highway range. |
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(b) A grant recipient may not use money from a grant under |
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the program to replace a motor vehicle, transit bus, or school bus |
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that operates on an alternative fuel unless the replacement vehicle |
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produces fewer emissions and has greater fuel efficiency than the |
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vehicle being replaced. |
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Sec. 395.005. REFUELING INFRASTRUCTURE, EQUIPMENT, AND |
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SERVICES. A grant recipient may purchase, lease, or install |
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refueling infrastructure or equipment or procure refueling |
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services with money from a grant under the program if: |
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(1) the purchase, lease, installation, or procurement |
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is made in conjunction with the purchase or lease of a motor vehicle |
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as described by Section 395.004 or the conversion of a motor vehicle |
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to operate primarily on an alternative fuel; |
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(2) the grant recipient demonstrates that a refueling |
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station that meets the needs of the recipient is not available |
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within five miles of the location at which the recipient's vehicles |
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are stored or primarily used; and |
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(3) for the purchase or installation of refueling |
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infrastructure or equipment, the infrastructure or equipment will |
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be owned and operated by the grant recipient, and for the lease of |
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refueling infrastructure or equipment or the procurement of |
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refueling services, a third-party service provider engaged by the |
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grant recipient will provide the infrastructure, equipment, or |
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services. |
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Sec. 395.006. ELIGIBLE COSTS. (a) A motor vehicle lease |
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agreement paid for with money from a grant under the program must |
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have a term of at least three years. |
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(b) Refueling infrastructure or equipment purchased or |
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installed with money from a grant under the program must be used |
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specifically to store or dispense alternative fuel, as determined |
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by the commission. |
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(c) A lease of or service agreement for refueling |
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infrastructure, equipment, or services paid for with money from a |
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grant under the program must have a term of at least three years. |
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Sec. 395.007. GRANT AMOUNTS. (a) The commission may |
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establish standardized grant amounts based on the incremental costs |
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associated with the purchase or lease of different categories of |
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motor vehicles, including the type of fuel used, vehicle class, and |
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other categories the commission considers appropriate. |
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(b) In determining the incremental costs and setting the |
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standardized grant amounts, the commission may consider the |
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difference in cost between a new motor vehicle operated using |
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conventional gasoline or diesel fuel and a new motor vehicle |
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operated using alternative fuel. |
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(c) The amount of a grant for the purchase or lease of a |
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motor vehicle may not exceed the amount of the incremental cost of |
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the purchase or lease. |
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(d) The commission may establish grant amounts to reimburse |
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the full cost of the purchase, lease, installation, or procurement |
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of refueling infrastructure, equipment, or services or may |
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establish criteria for reimbursing a percentage of the cost. |
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(e) A grant under the program may be combined with funding |
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from other sources, including other grant programs, except that a |
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grant may not be combined with other funding or grants from the |
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Texas emissions reduction plan. When combined with other funding |
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sources, a grant may not exceed the total cost to the grant |
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recipient. |
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Sec. 395.008. AVAILABILITY OF EMISSIONS REDUCTION CREDITS. |
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(a) A purchase, lease, or installation that uses money from a |
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grant under the program may not be used for credit under a state or |
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federal emissions reduction credit averaging, banking, or trading |
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program. |
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(b) An emissions reduction generated by a purchase or lease |
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under this chapter: |
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(1) may not be used as a marketable emissions |
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reduction credit; and |
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(2) may be used to demonstrate conformity with the |
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state implementation plan. |
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(c) A project involving a new emissions reduction measure |
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that would otherwise generate marketable credits under a state or |
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federal emissions reduction credit averaging, banking, or trading |
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program is not eligible for funding under the program unless: |
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(1) the project includes the transfer of the |
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reductions that would otherwise be marketable credits to the state |
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implementation plan; and |
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(2) the reductions are permanently retired. |
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Sec. 395.009. USE OF GRANT MONEY BY COUNTY OR MUNICIPALITY. |
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A county or municipality shall prioritize the actions listed in |
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Sections 2158.0051(b)(1)-(4), Government Code, when using money |
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from a grant under the program. |
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Sec. 395.010. GRANT PROCEDURES AND CRITERIA. (a) The |
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commission shall establish specific criteria and procedures in |
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order to implement and administer the program, including the |
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creation and provision of application forms and guidance on the |
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application process. |
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(b) The commission shall award a grant through a contract |
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between the commission and the grant recipient. |
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(b-1) The commission shall provide an online application |
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process for the submission of all required application documents. |
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(c) The commission may limit funding for a particular period |
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according to priorities established by the commission, including |
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limiting the availability of grants to specific entities, for |
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certain types of vehicles and infrastructure, or to certain |
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geographic areas to ensure equitable distribution of grant funds |
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across the state. |
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(d) In awarding grants under the program, the commission |
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shall prioritize projects that: |
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(1) are proposed by a state agency; |
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(2) are in or near a nonattainment area; |
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(3) are in an affected county, as that term is defined |
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by Section 386.001(2); |
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(4) will produce the greatest emissions reductions; |
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and |
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(5) will generate the most marketable credits under a |
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state or federal emissions reduction credit averaging, banking, or |
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trading program. |
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(e) In addition to the requirements under Subsection (d), in |
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awarding grants under the program, the commission shall consider: |
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(1) the effectiveness of a proposed project in |
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assisting an applicant in complying with Section 2158.0051, |
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Government Code; |
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(2) the total amount of the emissions reduction that |
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would be achieved from the project; |
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(3) the type and number of vehicles purchased, leased, |
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or converted; |
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(4) the location of the fleet and the refueling |
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infrastructure or equipment; |
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(5) the number of vehicles served and the rate at which |
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vehicles are served by the refueling infrastructure or equipment; |
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(6) the amount of any matching funds committed by the |
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applicant; and |
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(7) the schedule for project completion. |
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(f) The commission may not award more than 10 percent of the |
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total amount awarded under the program in any fiscal year for |
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purchasing, leasing, installing, or procuring refueling |
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infrastructure, equipment, or services. |
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Sec. 395.011. FUNDING. The legislature may appropriate |
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money to the commission from the Texas emissions reduction plan |
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fund established under Section 386.251 to administer the program. |
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Sec. 395.0115. ADMINISTRATIVE COSTS. In each fiscal year, |
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the commission may use up to three-fourths of one percent of the |
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total amount of money awarded under the program in that fiscal year, |
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but not more than $1 million, for the administrative costs of the |
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program. |
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Sec. 395.012. RULES. The commission may adopt rules as |
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necessary to implement this chapter. |
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Sec. 395.013. REPORT REQUIRED. On or before November 1 of |
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each even-numbered year, the commission shall submit to the |
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governor, the lieutenant governor, and members of the legislature a |
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report that includes the following information regarding awards |
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made under the program during the preceding state fiscal biennium: |
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(1) the number of grants awarded under the program; |
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(2) the recipient of each grant awarded; |
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(3) the number of vehicles converted or replaced; |
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(4) the number, type, and location of any refueling |
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infrastructure, equipment, or services funded under the program; |
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(5) the total emissions reductions achieved under the |
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program; and |
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(6) any other information the commission considers |
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relevant. |
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Sec. 395.014. EXPIRATION. This chapter expires August 31, |
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2025. |
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SECTION 4. Section 386.051(b), Health and Safety Code, is |
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amended to read as follows: |
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(b) Under the plan, the commission and the comptroller shall |
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provide grants or other funding for: |
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(1) the diesel emissions reduction incentive program |
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established under Subchapter C, including for infrastructure |
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projects established under that subchapter; |
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(2) the motor vehicle purchase or lease incentive |
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program established under Subchapter D; |
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(3) the air quality research support program |
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established under Chapter 387; |
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(4) the clean school bus program established under |
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Chapter 390; |
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(5) the new technology implementation grant program |
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established under Chapter 391; |
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(6) the regional air monitoring program established |
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under Section 386.252(a); |
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(7) a health effects study as provided by Section |
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386.252(a); |
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(8) air quality planning activities as provided by |
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Section 386.252(a); |
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(9) a contract with the Energy Systems Laboratory at |
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the Texas Engineering Experiment Station for computation of |
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creditable statewide emissions reductions as provided by Section |
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386.252(a)(14); |
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(10) the clean fleet program established under Chapter |
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392; |
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(11) the alternative fueling facilities program |
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established under Chapter 393; |
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(12) the natural gas vehicle grant program and clean |
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transportation triangle program established under Chapter 394; |
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(13) other programs the commission may develop that |
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lead to reduced emissions of nitrogen oxides, particulate matter, |
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or volatile organic compounds in a nonattainment area or affected |
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county; |
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(14) other programs the commission may develop that |
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support congestion mitigation to reduce mobile source ozone |
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precursor emissions; [and] |
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(15) the drayage truck incentive program established |
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under Subchapter D-1; and |
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(16) the governmental alternative fuel fleet grant |
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program established under Chapter 395. |
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SECTION 5. Section 2158.0051, Government Code, as added by |
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this Act, applies beginning with the state fiscal biennium |
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beginning September 1, 2015. |
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SECTION 6. (a) To the extent that money is appropriated |
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from the Texas emissions reduction plan fund for that purpose, the |
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Texas Commission on Environmental Quality may use that money to |
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award grants under the governmental alternative fuel fleet grant |
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program created under Chapter 395, Health and Safety Code, as added |
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by this Act, except that the commission may not use for that purpose |
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more than three percent of the balance of the Texas emissions |
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reduction plan fund as of September 1 of each fiscal year of the |
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biennium for the governmental alternative fuel fleet grant program |
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in that fiscal year. |
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(b) This section expires August 31, 2025. |
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SECTION 7. This Act takes effect September 1, 2015. |