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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. 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 or liquefied natural gas. |
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SECTION 2. Chapter 403, Government Code, is amended by |
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adding Subchapter R to read as follows: |
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SUBCHAPTER R. GOVERNMENTAL ALTERNATIVE FUEL FLEET GRANT PROGRAM |
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Sec. 403.461. DEFINITIONS. In this subchapter: |
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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) "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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(3) "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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(4) "Program" means the governmental alternative fuel |
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fleet grant program established under this subchapter. |
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(5) "State agency" has the meaning assigned by Section |
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2151.002. |
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Sec. 403.462. PROGRAM. (a) The comptroller shall |
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establish and administer a governmental alternative fuel fleet |
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grant program to assist an eligible state agency, county, or |
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municipality in complying with Section 2158.0051 through the |
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purchase or lease of new motor vehicles that operate primarily on an |
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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, Health and Safety |
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Code. |
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(c) The program may provide a grant to a state agency, |
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county, or municipality to: |
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(1) purchase or lease a new motor vehicle described by |
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Section 403.464; or |
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(2) purchase and install refueling infrastructure and |
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equipment described by Section 403.465 to store and dispense |
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alternative fuel needed for a motor vehicle described by |
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Subdivision (1). |
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Sec. 403.463. 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 transit or school transportation provider or other |
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similar entity established to provide public or school |
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transportation services is eligible for a grant under this program. |
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Sec. 403.464. 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 range of at least 125 miles when operating on |
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the alternative fuel without refueling, as published by the United |
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States Environmental Protection Agency. |
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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. 403.465. REFUELING INFRASTRUCTURE AND EQUIPMENT |
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REQUIREMENTS. A grant recipient may purchase or install refueling |
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infrastructure or equipment with money from a grant under the |
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program if: |
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(1) the purchase or installation is made in |
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conjunction with the purchase or lease of a motor vehicle as |
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described by Section 403.464; |
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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 30 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) the refueling infrastructure or equipment will be |
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owned and operated by the grant recipient. |
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Sec. 403.466. 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 comptroller. |
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Sec. 403.467. GRANT AMOUNTS. (a) The comptroller 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 comptroller considers appropriate. |
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(b) In determining the incremental costs and setting the |
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standardized grant amounts, the comptroller 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 comptroller may establish grant amounts to |
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reimburse the full cost of the purchase and installation of |
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refueling infrastructure or equipment or may establish criteria for |
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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. 403.468. 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 subchapter: |
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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. 403.469. 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) when using money from a grant under |
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the program. |
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Sec. 403.470. GRANT PROCEDURES AND CRITERIA. (a) The |
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comptroller 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 comptroller shall award a grant through a contract |
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between the comptroller and the grant recipient. |
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(c) The comptroller may limit funding for a particular |
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period according to priorities established by the comptroller, |
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including limiting the availability of grants to specific entities, |
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geographic areas, or types of vehicles and infrastructure. |
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(d) In determining priorities for funding under the |
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program, the comptroller 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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(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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Sec. 403.471. FUNDING. The legislature may appropriate |
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money to the comptroller from the Texas emissions reduction plan |
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fund established under Section 386.251, Health and Safety Code, to |
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administer the program. |
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Sec. 403.472. EXPIRATION. This subchapter expires August |
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31, 2025. |
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SECTION 3. 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 Subchapter R, Chapter 403, Government |
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Code. |
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SECTION 4. Section 386.252, Health and Safety Code, is |
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amended by adding Subsection (i) to read as follows: |
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(i) To the extent that money is appropriated from the fund |
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for that purpose, the comptroller may use that money to award grants |
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under the governmental alternative fuel fleet grant program |
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established under Subchapter R, Chapter 403, Government Code, |
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except that the comptroller may not use for that purpose more than |
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three percent of the balance of the fund as of September 1 of each |
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state fiscal year of the biennium for the governmental alternative |
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fuel fleet grant program in that fiscal year. This subsection |
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expires August 31, 2025. |
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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. This Act takes effect September 1, 2015. |
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