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A BILL TO BE ENTITLED
|
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AN ACT
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relating to the Texas emissions reduction plan and other related |
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programs and measures to reduce emissions. |
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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), |
|
Government Code, are amended to read as follows: |
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(a) A state agency operating a fleet of more than 15 |
|
vehicles, excluding law enforcement and emergency vehicles, may not |
|
purchase or lease a motor vehicle unless that vehicle uses |
|
compressed natural gas, liquefied natural gas, liquefied petroleum |
|
gas, methanol or methanol/gasoline blends of 85 percent or greater, |
|
ethanol or ethanol/gasoline blends of 85 percent or greater, |
|
biodiesel or biodiesel/diesel blends of 20 percent or greater, |
|
hydrogen fuel cells, or electricity, including electricity to power |
|
a plug-in hybrid electric motor vehicle. |
|
(b) A state agency may obtain equipment or refueling |
|
facilities necessary to operate vehicles using compressed natural |
|
gas, liquefied natural gas, liquefied petroleum gas, methanol or |
|
methanol/gasoline blends of 85 percent or greater, ethanol or |
|
ethanol/gasoline blends of 85 percent or greater, biodiesel or |
|
biodiesel/diesel blends of 20 percent or greater, hydrogen fuel |
|
cells, or electricity, including electricity to power a plug-in |
|
hybrid electric motor vehicle: |
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(1) by purchase or lease as authorized by law; |
|
(2) by gift or loan of the equipment or facilities; or |
|
(3) by gift or loan of the equipment or facilities or |
|
by another arrangement under a service contract for the supply of |
|
compressed natural gas, liquefied natural gas, liquefied petroleum |
|
gas, methanol or methanol/gasoline blends of 85 percent or greater, |
|
ethanol or ethanol/gasoline blends of 85 percent or greater, |
|
biodiesel or biodiesel/diesel blends of 20 percent or greater, |
|
hydrogen fuel cells, or electricity, including electricity to power |
|
a plug-in hybrid electric motor vehicle. |
|
(c) If the equipment or facilities are donated, loaned, or |
|
provided through another arrangement with the supplier of |
|
compressed natural gas, liquefied natural gas, liquefied petroleum |
|
gas, methanol or methanol/gasoline blends of 85 percent or greater, |
|
ethanol or ethanol/gasoline blends of 85 percent or greater, |
|
biodiesel or biodiesel/diesel blends of 20 percent or greater, |
|
hydrogen fuel cells, or electricity, including electricity to power |
|
a plug-in hybrid electric motor vehicle, the supplier is entitled |
|
to recoup its actual cost of donating, loaning, or providing the |
|
equipment or facilities through its fuel charges under the supply |
|
contract. |
|
(d) The commission may waive the requirements of this |
|
section for a state agency on receipt of certification supported by |
|
evidence acceptable to the commission that: |
|
(1) the agency's vehicles will be operating primarily |
|
in an area in which neither the agency nor a supplier has or can |
|
reasonably be expected to establish adequate refueling for |
|
compressed natural gas, liquefied natural gas, liquefied petroleum |
|
gas, methanol or methanol/gasoline blends of 85 percent or greater, |
|
ethanol or ethanol/gasoline blends of 85 percent or greater, |
|
biodiesel or biodiesel/diesel blends of 20 percent or greater, |
|
hydrogen fuel cells, or electricity, including electricity to power |
|
a plug-in hybrid electric motor vehicle; or |
|
(2) the agency is unable to obtain equipment or |
|
refueling facilities necessary to operate vehicles using |
|
compressed natural gas, liquefied natural gas, liquefied petroleum |
|
gas, methanol or methanol/gasoline blends of 85 percent or greater, |
|
ethanol or ethanol/gasoline blends of 85 percent or greater, |
|
biodiesel or biodiesel/diesel blends of 20 percent or greater, |
|
hydrogen fuel cells, or electricity, including electricity to power |
|
a plug-in hybrid electric motor vehicle, at a projected cost that is |
|
reasonably expected to be no greater than the net costs of continued |
|
use of conventional gasoline or diesel fuels, measured over the |
|
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) |
|
Notwithstanding the purchase requirements of Section 2158.004, it |
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is the intent of this state that: |
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(1) the vehicle fleet of a state agency that operates a |
|
fleet of more than 15 motor vehicles, subject to the availability of |
|
funds, shall be replaced with motor vehicles that use compressed |
|
natural gas, liquefied natural gas, liquefied petroleum gas, |
|
hydrogen fuel cells, or electricity, including both fully electric |
|
motor vehicles and plug-in hybrid electric motor vehicles; |
|
(2) a county or municipality that operates a vehicle |
|
fleet of more than 15 motor vehicles is authorized, but is not |
|
required, to replace the fleet with motor vehicles that use |
|
compressed natural gas, liquefied natural gas, liquefied petroleum |
|
gas, hydrogen fuel cells, or electricity, including both fully |
|
electric motor vehicles and plug-in hybrid electric motor vehicles; |
|
and |
|
(3) motor vehicles of a state agency, county, or |
|
municipality described by Subdivisions (1) and (2) that are capable |
|
of using fuels described by those subdivisions be primarily |
|
operated with those fuels rather than conventional gasoline or |
|
diesel fuels. |
|
(b) In complying with Subsection (a), a state agency to |
|
which this section applies shall prioritize: |
|
(1) the purchase or lease of new motor vehicles, |
|
including new motor vehicles that are converted to operate on an |
|
alternative fuel described by Subsection (a)(1), when replacing |
|
vehicles or adding vehicles to the fleet; |
|
(2) the purchase of new motor vehicles, including new |
|
motor vehicles that are converted to operate on an alternative fuel |
|
described by Subsection (a)(1), to replace vehicles that have the |
|
highest total mileage and do not use a fuel described by Subsection |
|
(a)(1); and |
|
(3) to the extent feasible, obtaining, whether by |
|
purchase, purchase and conversion, or lease, motor vehicles that |
|
use compressed natural gas, liquefied natural gas, or liquefied |
|
petroleum gas. |
|
(c) Subsection (a)(1) does not apply to law enforcement or |
|
emergency vehicles. |
|
SECTION 3. Section 386.001(3), Health and Safety Code, is |
|
amended to read as follows: |
|
(3) "Commission" means the Texas [Natural Resource
|
|
Conservation] Commission on Environmental Quality. |
|
SECTION 4. Section 386.002, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 386.002. EXPIRATION. This chapter expires on the last |
|
day of the state fiscal biennium during which the commission |
|
publishes in the Texas Register certification that, with respect to |
|
each national ambient air quality standard for ozone under 40 |
|
C.F.R. Section 81.344, the United States Environmental Protection |
|
Agency has, for each designated area under that section: |
|
(1) designated the area as attainment or |
|
unclassifiable; or |
|
(2) approved a redesignation substitute making a |
|
finding of attainment for the area [August 31, 2019]. |
|
SECTION 5. Section 386.051(b), Health and Safety Code, is |
|
amended 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); |
|
(7) a health effects study as provided by Section |
|
386.252(a); |
|
(8) air quality planning activities as provided by |
|
Section 386.252(d) [386.252(a)]; |
|
(9) a contract with the Energy Systems Laboratory at |
|
the Texas A&M Engineering Experiment Station for computation of |
|
creditable statewide emissions reductions as provided by Section |
|
386.252(a) [386.252(a)(14)]; |
|
(10) the clean fleet program established under Chapter |
|
392; |
|
(11) the alternative fueling facilities program |
|
established under Chapter 393; |
|
(12) the natural gas vehicle grant program [and clean
|
|
transportation triangle program] established under Chapter 394; |
|
(13) other programs the commission may develop that |
|
lead to reduced emissions of nitrogen oxides, particulate matter, |
|
or volatile organic compounds in a nonattainment area or affected |
|
county; |
|
(14) other programs the commission may develop that |
|
support congestion mitigation to reduce mobile source ozone |
|
precursor emissions; [and] |
|
(15) the drayage truck incentive program established |
|
under Subchapter D-1; and |
|
(16) the governmental alternative fuel fleet grant |
|
program established under Chapter 395. |
|
SECTION 6. Sections 386.0515(a) and (c), Health and Safety |
|
Code, are amended to read as follows: |
|
(a) In this section: |
|
(1) "Agricultural [, "agricultural] product |
|
transportation" means the transportation of a raw agricultural |
|
product from the place of production using a heavy-duty truck to: |
|
(A) [(1)] a nonattainment area; |
|
(B) [(2)] an affected county; |
|
(C) [(3)] a destination inside the clean |
|
transportation zone [triangle]; or |
|
(D) [(4)] a county adjacent to a county described |
|
by Paragraph (B) [Subdivision (2)] or that contains an area |
|
described by Paragraph (A) or (C) [Subdivision (1) or (3)]. |
|
(2) "Clean transportation zone" has the meaning |
|
assigned by Section 393.001. |
|
(c) The determining factor for eligibility for |
|
participation in a program established under Chapter 392 or |
|
[Chapter] 394[, as added by Chapter 892 (Senate Bill No.
385), Acts
|
|
of the 82nd Legislature, Regular Session, 2011,] for a project |
|
relating to agricultural product transportation is the overall |
|
accumulative net reduction in emissions of oxides of nitrogen in a |
|
nonattainment area, an affected county, or the clean transportation |
|
zone [triangle]. |
|
SECTION 7. Section 386.103, Health and Safety Code, is |
|
amended by adding Subsection (c) to read as follows: |
|
(c) To reduce the administrative burden for the commission |
|
and applicants, the commission may streamline the application |
|
process by: |
|
(1) reducing data entry and the copying and recopying |
|
of applications; and |
|
(2) developing, maintaining, and periodically |
|
updating a system to accept applications electronically through the |
|
commission's Internet website. |
|
SECTION 8. Section 386.104(j), Health and Safety Code, is |
|
amended to read as follows: |
|
(j) The executive director may [shall] waive any |
|
eligibility requirements established under this section on a |
|
finding of good cause, which may include a waiver for short lapses |
|
in registration or operation attributable to economic conditions, |
|
seasonal work, or other circumstances. |
|
SECTION 9. Chapter 386, Health and Safety Code, is amended |
|
by adding Subchapter D to read as follows: |
|
SUBCHAPTER D. MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM |
|
Sec. 386.151. DEFINITIONS. In this subchapter: |
|
(1) "Light-duty motor vehicle" means a motor vehicle |
|
with a gross vehicle weight rating of less than 10,000 pounds. |
|
(2) "Motor vehicle" means a self-propelled device |
|
designed for transporting persons or property on a public highway |
|
that is required to be registered under Chapter 502, Transportation |
|
Code. |
|
Sec. 386.152. APPLICABILITY. The provisions of this |
|
subchapter relating to a lessee do not apply to a person who rents |
|
or leases a light-duty motor vehicle for a term of 30 days or less. |
|
Sec. 386.153. COMMISSION DUTIES REGARDING LIGHT-DUTY MOTOR |
|
VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM. (a) The commission |
|
shall develop a purchase or lease incentive program for new |
|
light-duty motor vehicles and shall adopt rules necessary to |
|
implement the program. |
|
(b) The program shall authorize statewide incentives for |
|
the purchase or lease of new light-duty motor vehicles powered by |
|
compressed natural gas, liquefied petroleum gas, or hydrogen fuel |
|
cell or other electric drives for a purchaser or lessee who agrees |
|
to register and operate the vehicle in this state for a minimum |
|
period of time to be established by the commission. |
|
(c) Only one incentive will be provided for each new |
|
light-duty motor vehicle. The incentive shall be provided to the |
|
lessee and not to the purchaser if the motor vehicle is purchased |
|
for the purpose of leasing the vehicle to another person. |
|
(d) The commission by rule may revise the standards for the |
|
maximum unloaded vehicle weight rating and gross vehicle weight |
|
rating of an eligible vehicle to ensure that all of the vehicle |
|
weight configurations available under one general vehicle model may |
|
be eligible for an incentive. |
|
Sec. 386.154. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE |
|
INCENTIVE REQUIREMENTS. (a) A new light-duty motor vehicle powered |
|
by compressed natural gas or liquefied petroleum gas is eligible |
|
for a $5,000 incentive if the vehicle: |
|
(1) has four wheels; |
|
(2) was originally manufactured to comply with and has |
|
been certified by an original equipment manufacturer or |
|
intermediate or final state vehicle manufacturer as complying with, |
|
or has been altered to comply with, federal motor vehicle safety |
|
standards, state emissions regulations, and any additional federal |
|
or state regulations applicable to vehicles powered by compressed |
|
natural gas or liquefied petroleum gas; |
|
(3) was manufactured for use primarily on public |
|
streets, roads, and highways; |
|
(4) has a dedicated or bi-fuel compressed natural gas |
|
or liquefied petroleum gas fuel system: |
|
(A) installed prior to first sale or within 500 |
|
miles of operation of the vehicle following first sale; and |
|
(B) with a range of at least 125 miles as |
|
estimated, published, and updated by the United States |
|
Environmental Protection Agency; |
|
(5) has, as applicable, a: |
|
(A) compressed natural gas fuel system that |
|
complies with the: |
|
(i) 2013 NFPA 52 Vehicular Gaseous Fuel |
|
Systems Code; and |
|
(ii) American National Standard for Basic |
|
Requirements for Compressed Natural Gas Vehicle (NGV) Fuel |
|
Containers, commonly cited as "ANSI/CSA NGV2"; or |
|
(B) liquefied petroleum gas fuel system that |
|
complies with: |
|
(i) the 2011 NFPA 58 Liquefied Petroleum |
|
Gas Code; and |
|
(ii) Section VII of the 2013 ASME Boiler and |
|
Pressure Vessel Code; and |
|
(6) was acquired on or after September 1, 2013, or a |
|
later date established by the commission, by the person applying |
|
for the incentive under this subsection and for use or lease by that |
|
person and not for resale. |
|
(b) If the commission determines that an updated version of |
|
a code or standard described by Subdivision (a)(5) is more |
|
stringent than the version of the code or standard described by |
|
Subdivision (a)(5), the commission by rule may provide that a |
|
vehicle for which a person applies for an incentive under |
|
Subsection (a) is eligible for the incentive only if the vehicle |
|
complies with the updated version of the code or standard. |
|
(c) The incentive under Subsection (a) is limited to 1,000 |
|
vehicles for each state fiscal biennium. |
|
(d) A new light-duty motor vehicle powered by an electric |
|
drive is eligible for a $2,500 incentive if the vehicle: |
|
(1) has four wheels; |
|
(2) was manufactured for use primarily on public |
|
streets, roads, and highways; |
|
(3) has not been modified from the original |
|
manufacturer's specifications; |
|
(4) has a maximum speed capability of at least 55 miles |
|
per hour; |
|
(5) is propelled to a significant extent by an |
|
electric motor that draws electricity from a hydrogen fuel cell or |
|
from a battery that: |
|
(A) has a capacity of not less than four kilowatt |
|
hours; and |
|
(B) is capable of being recharged from an |
|
external source of electricity; and |
|
(6) was acquired on or after September 1, 2013, or a |
|
later date as established by the commission, by the person applying |
|
for the incentive under this subsection and for use or lease by that |
|
person and not for resale. |
|
(e) The incentive under Subsection (d) is limited to 2,000 |
|
vehicles for each state fiscal biennium. |
|
Sec. 386.155. MANUFACTURER'S REPORT. (a) At the beginning |
|
of but not later than July 1 of each year preceding the vehicle |
|
model year, a manufacturer of motor vehicles, an intermediate or |
|
final state vehicle manufacturer, or a manufacturer of compressed |
|
natural gas or liquefied petroleum gas systems shall provide to the |
|
commission a list of the new vehicle or natural gas or liquefied |
|
petroleum gas systems models that the manufacturer intends to sell |
|
in this state during that model year that meet the incentive |
|
requirements established under Section 386.154. The manufacturer |
|
or installer may supplement the list provided to the commission |
|
under this section as necessary to include additional new vehicle |
|
models the manufacturer intends to sell in this state during the |
|
model year. |
|
(b) The commission may supplement the information provided |
|
under Subsection (a) with additional information on available |
|
vehicle models, including information provided by manufacturers or |
|
installers of systems to convert new motor vehicles to operate on |
|
natural gas or liquefied petroleum gas before sale as a new vehicle |
|
or within 500 miles of operation of the vehicle following first |
|
sale. |
|
Sec. 386.156. LIST OF ELIGIBLE MOTOR VEHICLES. (a) On |
|
August 1 of each year the commission shall publish a list of new |
|
motor vehicle models eligible for inclusion in an incentive under |
|
this subchapter. The commission shall publish supplements to that |
|
list as necessary to include additional new vehicle models. |
|
(b) The commission shall publish the list of eligible motor |
|
vehicle models on the commission's Internet website. |
|
Sec. 386.157. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE |
|
INCENTIVE. (a) A person who purchases or leases a new light-duty |
|
motor vehicle described by Section 386.154 and listed under Section |
|
386.156(a) is eligible to apply for an incentive under this |
|
subchapter. |
|
(b) A lease incentive for a new light-duty motor vehicle |
|
shall be prorated based on a three-year lease term. |
|
(c) To receive money under an incentive program provided by |
|
this subchapter, the purchaser or lessee of a new light-duty motor |
|
vehicle who is eligible to apply for an incentive under this |
|
subchapter shall apply for the incentive in the manner provided by |
|
law or by rule of the commission. |
|
Sec. 386.158. COMMISSION TO ACCOUNT FOR MOTOR VEHICLE |
|
PURCHASE OR LEASE INCENTIVES. (a) The commission by rule shall |
|
develop a method to administer and account for the motor vehicle |
|
purchase or lease incentives authorized by this subchapter and to |
|
pay incentive money to the purchaser or lessee of a new motor |
|
vehicle, on application of the purchaser or lessee as provided by |
|
this subchapter. |
|
(b) The commission shall develop and publish forms and |
|
instructions for the purchaser or lessee of a new motor vehicle to |
|
use in applying to the commission for an incentive payment under |
|
this subchapter. The commission shall make the forms available to |
|
new motor vehicle dealers and leasing agents. Dealers and leasing |
|
agents shall make the forms available to their prospective |
|
purchasers or lessees. |
|
(c) The commission may require the submission of forms and |
|
documentation as needed to verify eligibility for an incentive |
|
under this subchapter. |
|
Sec. 386.159. PURCHASE OR LEASE INCENTIVES INFORMATION. (a) |
|
The commission shall establish a toll-free telephone number |
|
available to motor vehicle dealers and leasing agents for the |
|
dealers and agents to call to verify that incentives are available. |
|
The commission may provide for issuing verification numbers over |
|
the telephone line. |
|
(b) Reliance by a dealer or leasing agent on information |
|
provided by the commission is a complete defense to an action |
|
involving or based on eligibility of a vehicle for an incentive or |
|
availability of vehicles eligible for an incentive. |
|
Sec. 386.160. RESERVATION OF INCENTIVES. The commission may |
|
provide for dealers and leasing agents to reserve for a limited time |
|
period incentives for vehicles that are not readily available and |
|
must be ordered, if the dealer or leasing agent has a purchase or |
|
lease order signed by an identified customer. |
|
SECTION 10. Section 386.181(a), Health and Safety Code, is |
|
amended to read as follows: |
|
(a) In this subchapter, "drayage truck" means a truck or |
|
land-based equipment that transports a load to, [or] from, or in a |
|
seaport or rail yard. |
|
SECTION 11. Section 386.182(a), Health and Safety Code, is |
|
amended to read as follows: |
|
(a) The commission shall: |
|
(1) develop a purchase incentive program to encourage |
|
owners to replace drayage trucks with pre-2007 model year engines |
|
or engines certified to an emission rate equivalent to a pre-2007 |
|
model year engine; and |
|
(2) [with newer drayage trucks and shall] adopt |
|
guidelines necessary to implement the program described by |
|
Subdivision (1). |
|
SECTION 12. Section 386.252, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 386.252. USE OF FUND. (a) Money in the fund may be used |
|
only to implement and administer programs established under the |
|
plan. Subject to the reallocation of funds by the commission under |
|
Subsection (g), money [Money] appropriated to the commission to be |
|
used for the programs under Section 386.051(b) shall initially 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] three percent may be used for the |
|
new technology implementation grant program under Chapter 391, from |
|
which at least $1 million will be set aside for electricity storage |
|
projects related to renewable energy; |
|
(3) five percent may [shall] be used for the clean |
|
fleet program under Chapter 392; |
|
(4) not more than $3 million may be used by the |
|
commission 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; |
|
(5) [not less than] 16 percent may [shall] be used for |
|
the Texas natural gas vehicle grant program under Chapter 394; |
|
(6) 10 [not more than five] percent may be used [to
|
|
provide grants for natural gas fueling stations under the clean
|
|
transportation triangle program under Section 394.010;
|
|
[(7) not more than five percent may be used] for the |
|
Texas alternative fueling facilities program under Chapter 393, of |
|
which a specified amount may be used for fueling stations to provide |
|
natural gas fuel; |
|
(7) [(8)] a specified amount may be used each year to |
|
support research related to air quality as provided by Chapter 387; |
|
(8) [(9)] not more than $200,000 may be used for a |
|
health effects study[;
|
|
[(10)
$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]; |
|
(9) [(11)] at least $4 million and up to four percent |
|
to a maximum of $7 million, whichever is greater, is allocated to |
|
the commission for administrative costs and costs for conducting |
|
outreach and education activities to promote participation in the |
|
programs funded under this section; |
|
(10) [(12) at least] two percent [and up to five
|
|
percent of the fund] is to be used by the commission for the drayage |
|
truck incentive program established under Subchapter D-1; |
|
(11) [(13) not more than] five percent may be used for |
|
the light-duty motor vehicle purchase or lease incentive program |
|
established under Subchapter D; |
|
(12) [(14)] not more than $216,000 is allocated to the |
|
commission to contract with the Energy Systems Laboratory at the |
|
Texas A&M 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; |
|
[(15)
1.5 percent of the money in the fund is allocated
|
|
for administrative costs incurred by the laboratory;] and |
|
(13) [(16)] the balance is to be used by the |
|
commission for the diesel emissions reduction incentive program |
|
under Subchapter C as determined by the commission. |
|
(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.
|
|
[(e-1)
Money allocated under Subsection (a) to a particular
|
|
program may be used for another program under the plan as determined
|
|
by the commission.
|
|
[(f)] Money in the fund may be used by the commission for |
|
programs under Sections 386.051(b)(13), (b)(14), and (b-1) as may |
|
be appropriated for those programs. |
|
(c) [(g)] If the legislature does not specify amounts or |
|
percentages from the total appropriation to the commission to be |
|
allocated under Subsection (a) or (b) [(f)], the commission shall |
|
determine the amounts of the total appropriation to be allocated |
|
under each of those subsections, such that the total appropriation |
|
is expended while maximizing emissions reductions. |
|
(d) To supplement funding for air quality planning |
|
activities in affected counties, $500,000 from the fund is to be |
|
deposited annually in the state treasury to the credit of the clean |
|
air account created under Section 382.0622. |
|
(e) Money in the fund may be allocated for administrative |
|
costs incurred by the Energy Systems Laboratory at the Texas A&M |
|
Engineering Experiment Station as may be appropriated by the |
|
legislature. |
|
(f) To the extent that money is appropriated from the fund |
|
for that purpose, the commission may use that money to award grants |
|
under the governmental alternative fuel fleet grant program |
|
established under Chapter 395, except that the commission may not |
|
use for that purpose more than three percent of the balance of the |
|
fund as of September 1 of each state fiscal year of the biennium for |
|
the governmental alternative fuel fleet grant program in that |
|
fiscal year. |
|
(g) [(h)] 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, based on demand for grants for |
|
eligible projects under particular programs after the commission |
|
solicits projects to which to award grants according to the initial |
|
allocation provisions of this section. |
|
SECTION 13. Section 390.002(b), Health and Safety Code, is |
|
amended to read as follows: |
|
(b) Projects that may be considered for a grant under the |
|
program include: |
|
(1) diesel oxidation catalysts for school buses built |
|
before 1994; |
|
(2) diesel particulate filters for school buses built |
|
from 1994 to 1998; |
|
(3) the purchase and use of emission-reducing add-on |
|
equipment for school buses, including devices that reduce crankcase |
|
emissions; |
|
(4) the use of qualifying fuel; [and] |
|
(5) other technologies that the commission finds will |
|
bring about significant emissions reductions; and |
|
(6) replacement of a pre-2007 model year school bus. |
|
SECTION 14. Section 390.004, Health and Safety Code, is |
|
amended by adding Subsections (c) and (d) to read as follows: |
|
(c) A school bus proposed for replacement must: |
|
(1) be of model year 2006 or earlier; |
|
(2) have been owned and operated by the applicant for |
|
at least the two years before submission of the grant application; |
|
(3) be in good operational condition; and |
|
(4) be currently used on a regular, daily route to and |
|
from a school. |
|
(d) A school bus proposed for purchase to replace a pre-2007 |
|
model year school bus must be of the current model year or the year |
|
before the current model year at the time of submission of the grant |
|
application. |
|
SECTION 15. Section 390.005, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 390.005. RESTRICTION ON USE OF GRANT. (a) A recipient |
|
of a grant under this chapter shall use the grant to pay the |
|
incremental costs of the project for which the grant is made, which |
|
may include the reasonable and necessary expenses incurred for the |
|
labor needed to install emissions-reducing equipment. The |
|
recipient may not use the grant to pay the recipient's |
|
administrative expenses. |
|
(b) A school bus acquired to replace an existing school bus |
|
must be purchased and the grant recipient must agree to own and |
|
operate the school bus on a regular, daily route to and from a |
|
school for at least five years after a start date established by the |
|
commission, based on the date the commission accepts documentation |
|
of the destruction of the school bus being replaced. |
|
(c) A school bus replaced under this program must be |
|
rendered permanently inoperable by crushing the bus, by making a |
|
hole in the engine block and permanently destroying the frame of the |
|
bus, or by another method approved by the commission, or be |
|
permanently removed from operation in this state. The commission |
|
shall establish criteria for ensuring the permanent destruction or |
|
permanent removal of the engine or bus. The commission shall |
|
enforce the destruction and removal requirements. For purposes of |
|
this subsection, "permanent removal" means the permanent export of |
|
the bus or engine to a destination outside of the United States, |
|
Canada, or the United Mexican States. |
|
SECTION 16. Section 390.006, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 390.006. EXPIRATION. This chapter expires on the last |
|
day of the state fiscal biennium during which the commission |
|
publishes in the Texas Register certification that, with respect to |
|
each national ambient air quality standard for ozone under 40 |
|
C.F.R. Section 81.344, the United States Environmental Protection |
|
Agency has, for each designated area under that section: |
|
(1) designated the area as attainment or |
|
unclassifiable; or |
|
(2) approved a redesignation substitute making a |
|
finding of attainment for the area [August 31, 2019]. |
|
SECTION 17. Section 391.002(b), Health and Safety Code, is |
|
amended to read as follows: |
|
(b) Projects that may be considered for a grant under the |
|
program include: |
|
(1) advanced clean energy projects, as defined by |
|
Section 382.003; |
|
(2) new technology projects that reduce emissions of |
|
regulated pollutants from stationary [point] sources; |
|
(3) new technology projects that reduce emissions from |
|
upstream and midstream oil and gas production, completions, |
|
gathering, storage, processing, and transmission activities |
|
through: |
|
(A) the replacement, repower, or retrofit of |
|
stationary compressor engines; or |
|
(B) the installation of systems to reduce or |
|
eliminate the loss of gas, flaring of gas, or burning of gas using |
|
other combustion control devices; and |
|
(4) [(3)] electricity storage projects related to |
|
renewable energy, including projects to store electricity produced |
|
from wind and solar generation that provide efficient means of |
|
making the stored energy available during periods of peak energy |
|
use. |
|
SECTION 18. Section 391.205(a), Health and Safety Code, is |
|
amended to read as follows: |
|
(a) Except as provided by Subsection (c), in awarding grants |
|
under this chapter the commission shall give preference to projects |
|
that: |
|
(1) involve the transport, use, recovery for use, or |
|
prevention of the loss of natural resources originating or produced |
|
in this state; |
|
(2) contain an energy efficiency component; or |
|
(3) include the use of solar, wind, or other renewable |
|
energy sources. |
|
SECTION 19. Section 391.304, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 391.304. EXPIRATION. This chapter expires on the last |
|
day of the state fiscal biennium during which the commission |
|
publishes in the Texas Register certification that, with respect to |
|
each national ambient air quality standard for ozone under 40 |
|
C.F.R. Section 81.344, the United States Environmental Protection |
|
Agency has, for each designated area under that section: |
|
(1) designated the area as attainment or |
|
unclassifiable; or |
|
(2) approved a redesignation substitute making a |
|
finding of attainment for the area [August 31, 2019]. |
|
SECTION 20. Section 392.001(1), Health and Safety Code, is |
|
amended to read as follows: |
|
(1) "Alternative fuel" means a fuel other than |
|
gasoline or diesel fuel, including electricity, compressed natural |
|
gas, liquefied [liquified] natural gas, hydrogen, propane, or a |
|
mixture of fuels containing at least 85 percent methanol by volume. |
|
SECTION 21. Section 392.003(a), Health and Safety Code, is |
|
amended to read as follows: |
|
(a) A vehicle is a qualifying vehicle that may be considered |
|
for a grant under the program if during the eligibility period |
|
established by the commission [calendar year] the entity purchases |
|
a new on-road vehicle that: |
|
(1) is certified to the appropriate current federal |
|
emissions standards as determined by the commission; |
|
(2) replaces a diesel-powered on-road vehicle of the |
|
same weight classification and use; and |
|
(3) is a hybrid vehicle or fueled by an alternative |
|
fuel. |
|
SECTION 22. Section 392.004(d), Health and Safety Code, is |
|
amended to read as follows: |
|
(d) The commission shall minimize, to the maximum extent |
|
possible, the amount of paperwork required for an application. [An
|
|
applicant may be required to submit a photograph or other
|
|
documentation of a vehicle identification number, registration
|
|
information, inspection information, tire condition, or engine
|
|
block identification only if the photograph or documentation is
|
|
requested by the commission after the commission has decided to
|
|
award a grant to the applicant under this chapter.] |
|
SECTION 23. Section 392.005, Health and Safety Code, is |
|
amended by amending Subsections (c) and (i) and adding Subsection |
|
(c-1) to read as follows: |
|
(c) As a condition of receiving a grant, the qualifying |
|
vehicle must be continuously owned, registered, and operated in the |
|
state by the grant recipient until the earlier of the fifth |
|
anniversary of the activity start date established by the |
|
commission [the date of reimbursement of the grant-funded expenses] |
|
or [until] the date the vehicle has been in operation for 400,000 |
|
miles after the activity start date established by the commission |
|
[of reimbursement]. Not less than 75 percent of the annual use of |
|
the qualifying vehicle, either mileage or fuel use as determined by |
|
the commission, must occur in the state. |
|
(c-1) For purposes of Subsection (c), the commission shall |
|
establish the activity start date based on the date the commission |
|
accepts verification of the disposition of the vehicle being |
|
replaced. |
|
(i) The executive director may [shall] waive the |
|
requirements of Subsection (b)(2)(A) on a finding of good cause, |
|
which may include a waiver for short lapses in registration or |
|
operation attributable to economic conditions, seasonal work, or |
|
other circumstances. |
|
SECTION 24. Section 392.008, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 392.008. EXPIRATION. This chapter expires on the last |
|
day of the state fiscal biennium during which the commission |
|
publishes in the Texas Register certification that, with respect to |
|
each national ambient air quality standard for ozone under 40 |
|
C.F.R. Section 81.344, the United States Environmental Protection |
|
Agency has, for each designated area under that section: |
|
(1) designated the area as attainment or |
|
unclassifiable; or |
|
(2) approved a redesignation substitute making a |
|
finding of attainment for the area [August 31, 2017]. |
|
SECTION 25. Section 393.001, Health and Safety Code, is |
|
amended by amending Subdivision (1) and adding Subdivisions (1-a) |
|
and (4) to read as follows: |
|
(1) "Alternative fuel" means a fuel other than |
|
gasoline or diesel fuel, other than biodiesel fuel, including |
|
electricity, compressed natural gas, liquefied [liquified] natural |
|
gas, hydrogen, propane, or a mixture of fuels containing at least 85 |
|
percent methanol by volume. |
|
(1-a) "Clean transportation zone" means: |
|
(A) counties containing or intersected by a |
|
portion of an interstate highway connecting the cities of Houston, |
|
San Antonio, Dallas, and Fort Worth; |
|
(B) counties located within the area bounded by |
|
the interstate highways described by Paragraph (A); |
|
(C) counties containing or intersected by a |
|
portion of: |
|
(i) an interstate highway connecting San |
|
Antonio to Corpus Christi or Laredo; or |
|
(ii) a state highway connecting Corpus |
|
Christi and Laredo; |
|
(D) counties located within the area bounded by |
|
the highways described by Paragraph (C); |
|
(E) counties in this state all or part of which |
|
are included in a nonattainment area designated under Section |
|
107(d) of the federal Clean Air Act (42 U.S.C. Section 7407); and |
|
(F) counties designated as affected counties |
|
under Section 386.001. |
|
(4) "State highway" means a highway in this state |
|
included in the plan providing for a system of state highways |
|
prepared by the executive director of the Texas Department of |
|
Transportation under Section 201.103, Transportation Code. |
|
SECTION 26. Section 393.002, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 393.002. PROGRAM. (a) The commission shall establish |
|
and administer the Texas alternative fueling facilities program to |
|
provide fueling facilities for alternative fuel in the clean |
|
transportation zone [nonattainment areas]. Under the program, the |
|
commission shall provide a grant for each eligible facility to |
|
offset the cost of those facilities. |
|
(b) An entity that constructs or [,] reconstructs[, or
|
|
acquires] an alternative fueling facility is eligible to |
|
participate in the program. |
|
(c) To ensure that alternative fuel vehicles have access to |
|
fuel and to build the foundation for a self-sustaining market for |
|
alternative fuels in Texas, the commission shall provide for |
|
strategically placed fueling facilities in the clean |
|
transportation zone to enable an alternative fuel vehicle to travel |
|
in those areas relying solely on the alternative fuel. |
|
(d) The commission shall maintain a listing to be made |
|
available to the public online of all vehicle fueling facilities |
|
that have received grant funding, including location and hours of |
|
operation. |
|
SECTION 27. Section 393.003, Health and Safety Code, is |
|
amended by amending Subsections (a) and (b) and adding Subsections |
|
(d) and (e) to read as follows: |
|
(a) An entity operating in this state that constructs or [,] |
|
reconstructs[, or acquires] a facility to [store, compress, or] |
|
dispense alternative fuels may apply for and receive a grant under |
|
the program. |
|
(b) The commission may [adopt guidelines to] allow a |
|
regional planning commission, council of governments, or similar |
|
regional planning agency created under Chapter 391, Local |
|
Government Code, or a private nonprofit organization to apply for |
|
and receive a grant to improve the ability of the program to achieve |
|
its goals. |
|
(d) An application for a grant under the program must |
|
include a certification that the applicant complies with laws, |
|
rules, guidelines, and requirements applicable to taxation of fuel |
|
provided by the applicant at each fueling facility owned or |
|
operated by the applicant. The commission may terminate a grant |
|
awarded under this section without further obligation to the grant |
|
recipient if the commission determines that the recipient did not |
|
comply with a law, rule, guideline, or requirement described by |
|
this subsection. This subsection does not create a cause of action |
|
to contest an application or award of a grant. |
|
(e) The commission shall disperse grants under the program |
|
through a competitive application selection process to offset a |
|
portion of the eligible costs. |
|
SECTION 28. Section 393.004, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 393.004. ELIGIBILITY OF FACILITIES FOR GRANTS. (a) In |
|
addition to the requirements of this chapter, the commission shall |
|
establish additional eligibility and prioritization criteria as |
|
needed to implement the program [The commission by rule shall
|
|
establish criteria for prioritizing facilities eligible to receive
|
|
grants under this chapter. The commission shall review and revise
|
|
the criteria as appropriate]. |
|
(b) The prioritization criteria established under |
|
Subsection (a) must provide that, for each grant round, the |
|
commission may not award a grant to an entity that does not [To be
|
|
eligible for a grant under the program, the entity receiving the
|
|
grant must] agree to make the alternative fueling facility |
|
accessible and available to the public [persons not associated with
|
|
the entity] at times designated by the grant contract until each |
|
eligible entity that does agree to those terms has been awarded a |
|
grant [agreement]. |
|
(c) The commission may not award more than one grant for |
|
each facility. |
|
(d) The commission may give preference to or otherwise limit |
|
grant selections to: |
|
(1) fueling facilities providing specific types of |
|
alternative fuels; |
|
(2) fueling facilities in a specified area or |
|
location; and |
|
(3) fueling facilities meeting other specified |
|
prioritization criteria established by the commission. |
|
(e) For fueling facilities to provide natural gas, the |
|
commission shall give preference to: |
|
(1) facilities providing both liquefied natural gas |
|
and compressed natural gas at a single location; |
|
(2) facilities located not more than one mile from an |
|
interstate highway system; |
|
(3) facilities located in the area in and between the |
|
Houston, San Antonio, and Dallas-Fort Worth areas; and |
|
(4) facilities located in the area in and between the |
|
Corpus Christi, Laredo, and San Antonio areas [A recipient of a
|
|
grant under this chapter is not eligible to receive a second grant
|
|
under this chapter for the same facility]. |
|
SECTION 29. Section 393.005, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 393.005. RESTRICTION ON USE OF GRANT. (a) A recipient |
|
of a grant under this chapter shall use the grant only to pay the |
|
costs of the facility for which the grant is made. The recipient may |
|
not use the grant to pay the recipient's: |
|
(1) administrative expenses; |
|
(2) expenses for the purchase of land or an interest in |
|
land; or |
|
(3) expenses for equipment or facility improvements |
|
that are not directly related to the delivery, storage, |
|
compression, or dispensing of the alternative fuel at the facility. |
|
(b) Each grant must be awarded using a contract that |
|
requires the recipient to meet operational, maintenance, and |
|
reporting requirements as specified by the commission. |
|
SECTION 30. Section 393.006, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 393.006. AMOUNT OF GRANT. (a) Grants awarded under |
|
this chapter for a facility to provide alternative fuels other than |
|
natural gas may not exceed [For each eligible facility for which a
|
|
recipient is awarded a grant under the program, the commission
|
|
shall award the grant in an amount equal to] the lesser of: |
|
(1) 50 percent of the sum of the actual eligible costs |
|
incurred by the grant recipient within deadlines established by the |
|
commission [to construct, reconstruct, or acquire the facility]; or |
|
(2) $600,000. |
|
(b) Grants awarded under this chapter for a facility to |
|
provide natural gas may not exceed: |
|
(1) $400,000 for a compressed natural gas facility; |
|
(2) $400,000 for a liquefied natural gas facility; or |
|
(3) $600,000 for a facility providing both liquefied |
|
and compressed natural gas. |
|
SECTION 31. Section 393.007, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 393.007. EXPIRATION. This chapter expires on the last |
|
day of the state fiscal biennium during which the commission |
|
publishes in the Texas Register certification that, with respect to |
|
each national ambient air quality standard for ozone under 40 |
|
C.F.R. Section 81.344, the United States Environmental Protection |
|
Agency has, for each designated area under that section: |
|
(1) designated the area as attainment or |
|
unclassifiable; or |
|
(2) approved a redesignation substitute making a |
|
finding of attainment for the area [August 31, 2018]. |
|
SECTION 32. Section 394.001, Health and Safety Code, is |
|
amended by amending Subdivisions (1), (4), (5), and (8) and adding |
|
Subdivisions (1-a) and (7-a) to read as follows: |
|
(1) "Clean transportation zone" has the meaning |
|
assigned by Section 393.001 ["Advisory board" means the Texas
|
|
Emissions Reduction Plan Advisory Board]. |
|
(1-a) "Certified" includes: |
|
(A) new vehicle or new engine certification by |
|
the United States Environmental Protection Agency; or |
|
(B) certification or approval by the United |
|
States Environmental Protection Agency of a system to convert a |
|
vehicle or engine to operate on an alternative fuel and a |
|
demonstration by the emissions data used to certify or approve the |
|
vehicle or engine, if the commission determines the testing used to |
|
obtain the emissions data is consistent with the testing required |
|
for approval of an alternative fuel conversion system for new and |
|
relatively new vehicles or engines under 40 C.F.R. Part 85. |
|
(4) "Heavy-duty motor vehicle" means a motor vehicle |
|
that [with]: |
|
(A) has a gross vehicle weight rating of more |
|
than 8,500 pounds; and |
|
(B) is certified to or has an engine certified to |
|
the United States Environmental Protection Agency's emissions |
|
standards for heavy-duty vehicles or engines. |
|
(5) "Incremental cost" has the meaning assigned by |
|
Section 386.001 [means the difference between the manufacturer's
|
|
suggested retail price of a baseline vehicle, the documented dealer
|
|
price of a baseline vehicle, cost to lease or otherwise
|
|
commercially finance a baseline vehicle, cost to repower with a
|
|
baseline engine, or other appropriate baseline cost established by
|
|
the commission, and the actual cost of the natural gas vehicle
|
|
purchase, lease, or other commercial financing, or repower]. |
|
(7-a) "Natural gas engine" means an engine that |
|
operates: |
|
(A) solely on compressed or liquefied natural |
|
gas; or |
|
(B) on a combination of diesel fuel and |
|
compressed or liquefied natural gas and is capable of achieving at |
|
least 60 percent displacement of diesel fuel with natural gas. |
|
(8) "Natural gas vehicle" means a motor vehicle that |
|
is powered by a natural gas engine [receives not less than 75
|
|
percent of its power from compressed or liquefied natural gas]. |
|
SECTION 33. Section 394.003(a), Health and Safety Code, is |
|
amended to read as follows: |
|
(a) A vehicle is a qualifying vehicle that may be considered |
|
for a grant under the program if during the eligibility period |
|
established by the commission [calendar year] the entity: |
|
(1) purchased, leased, or otherwise commercially |
|
financed the vehicle as a new on-road heavy-duty or medium-duty |
|
motor vehicle that: |
|
(A) is a natural gas vehicle; |
|
(B) is certified to the appropriate current |
|
federal emissions standards as determined by the commission; and |
|
(C) replaces an on-road heavy-duty or |
|
medium-duty motor vehicle of the same weight classification and |
|
use; [and
|
|
[(D) is powered by an engine certified to:
|
|
[(i)
emit not more than 0.2 grams of
|
|
nitrogen oxides per brake horsepower hour; or
|
|
[(ii)
meet or exceed the United States
|
|
Environmental Protection Agency's Bin 5 standard for light duty
|
|
engines when powering the vehicle;] or |
|
(2) repowered the on-road motor vehicle to a natural |
|
gas vehicle powered by a natural gas engine that[:
|
|
[(A)] is certified to the appropriate current |
|
federal emissions standards as determined by the commission [; and
|
|
[(B) is:
|
|
[(i)
a heavy duty engine that is certified
|
|
to emit not more than 0.2 grams of nitrogen oxides per brake
|
|
horsepower hour; or
|
|
[(ii)
certified to meet or exceed the
|
|
United States Environmental Protection Agency's Bin 5 standard for
|
|
light duty engines when powering the vehicle]. |
|
SECTION 34. Section 394.005, Health and Safety Code, is |
|
amended by amending Subsections (a), (b), (c), (f), (g), and (i) and |
|
adding Subsection (c-1) to read as follows: |
|
(a) The commission [by rule] shall establish criteria for |
|
prioritizing qualifying vehicles eligible to receive grants under |
|
this chapter. The commission shall review and revise the criteria |
|
as appropriate [after consultation with the advisory board]. |
|
(b) To be eligible for a grant under the program: |
|
(1) the use of the qualifying vehicle must be |
|
projected to result in a reduction in emissions of nitrogen oxides |
|
of at least 25 percent as compared to the motor vehicle or engine |
|
being replaced, based on: |
|
(A) the baseline emission level set by the |
|
commission under Subsection (g); and |
|
(B) the certified emission rate of the new |
|
vehicle; and |
|
(2) the qualifying vehicle must: |
|
(A) replace a heavy-duty or medium-duty motor |
|
vehicle that: |
|
(i) is an on-road vehicle that has been |
|
owned, leased, or otherwise commercially financed and registered |
|
and operated by the applicant in Texas for at least the two years |
|
immediately preceding the submission of a grant application; |
|
(ii) satisfies any minimum average annual |
|
mileage or fuel usage requirements established by the commission; |
|
(iii) satisfies any minimum percentage of |
|
annual usage requirements established by the commission; and |
|
(iv) is in operating condition and has at |
|
least two years of remaining useful life, as determined in |
|
accordance with criteria established by the commission; [or] |
|
(B) replace a heavy-duty or medium-duty motor |
|
vehicle that: |
|
(i) is owned by the applicant; |
|
(ii) is an on-road vehicle that has been: |
|
(a) owned, leased, or otherwise |
|
commercially financed and operated in Texas as a fleet vehicle for |
|
at least the two years immediately preceding the submission of a |
|
grant application; and |
|
(b) registered in a county located in |
|
a nonattainment or near-nonattainment area for at least the two |
|
years immediately preceding the submission of a grant application; |
|
and |
|
(iii) otherwise satisfies the mileage, |
|
usage, and useful life requirements established under Paragraph (A) |
|
as determined by documentation associated with the vehicle; or |
|
(C) be a heavy-duty or medium-duty motor vehicle |
|
repowered with a natural gas engine that: |
|
(i) is installed in an on-road vehicle that |
|
has been owned, leased, or otherwise commercially financed and |
|
registered and operated by the applicant in Texas for at least the |
|
two years immediately preceding the submission of a grant |
|
application; |
|
(ii) satisfies any minimum average annual |
|
mileage or fuel usage requirements established by the commission; |
|
(iii) satisfies any minimum percentage of |
|
annual usage requirements established by the commission; and |
|
(iv) is installed in an on-road vehicle |
|
that, at the time of the vehicle's repowering, was in operating |
|
condition and had at least two years of remaining useful life, as |
|
determined in accordance with criteria established by the |
|
commission. |
|
(c) As a condition of receiving a grant, the qualifying |
|
vehicle must be continuously owned, leased, or otherwise |
|
commercially financed and registered and operated in the state by |
|
the grant recipient until the earlier of the fourth anniversary of |
|
the activity start date established by the commission [the date of
|
|
reimbursement of the grant funded expenses] or [until] the date the |
|
vehicle has been in operation for 400,000 miles after the activity |
|
start date established by the commission [of reimbursement]. Not |
|
less than 75 percent of the annual use of the qualifying vehicle, |
|
either mileage or fuel use as determined by the commission, must |
|
occur in the clean transportation zone [:
|
|
[(1)
the counties any part of which are included in the
|
|
area described by Section 394.010(a); or
|
|
[(2)
counties designated as nonattainment areas
|
|
within the meaning of Section 107(d) of the federal Clean Air Act
|
|
(42 U.S.C. Section 7407)]. |
|
(c-1) For purposes of Subsection (c), the commission shall |
|
establish the activity start date based on the date the commission |
|
accepts verification of the disposition of the vehicle or engine. |
|
(f) A heavy-duty or medium-duty motor vehicle replaced |
|
under this program must be rendered permanently inoperable by |
|
crushing the vehicle, by making a hole in the engine block and |
|
permanently destroying the frame of the vehicle, or by another |
|
method approved by the commission, or be [that] permanently removed |
|
[removes the vehicle] from operation in this state. The commission |
|
shall establish criteria for ensuring the permanent destruction or |
|
permanent removal of the engine or vehicle. The commission shall |
|
enforce the destruction and removal requirements. For purposes of |
|
this subsection, "permanent removal" means the permanent export of |
|
the vehicle or engine to a destination outside of the United States, |
|
Canada, or the United Mexican States. |
|
(g) The commission shall establish baseline emission levels |
|
for emissions of nitrogen oxides for on-road heavy-duty or |
|
medium-duty motor vehicles being replaced or repowered by using the |
|
emission certification for the engine or vehicle being replaced. |
|
The commission may consider deterioration of the emission |
|
performance of the engine of the vehicle being replaced in |
|
establishing the baseline emission level. The commission may |
|
consider and establish baseline emission rates for additional |
|
pollutants of concern[, as determined by the commission after
|
|
consultation with the advisory board]. |
|
(i) The executive director may [shall] waive the |
|
requirements of Subsection (b)(2)(A)(i) or (B)(ii) on a finding of |
|
good cause, which may include short lapses in registration or |
|
operation due to economic conditions, seasonal work, or other |
|
circumstances. |
|
SECTION 35. Section 394.006, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 394.006. RESTRICTION ON USE OF GRANT. A recipient of a |
|
grant under this chapter shall use the grant to pay the incremental |
|
costs of the replacement or vehicle repower for which the grant is |
|
made, which may include a portion of the initial cost of the natural |
|
gas vehicle or natural gas engine, including the cost of the natural |
|
gas fuel system and installation [and the reasonable and necessary
|
|
expenses incurred for the labor needed to install
|
|
emissions-reducing equipment]. The recipient may not use the grant |
|
to pay the recipient's administrative expenses. |
|
SECTION 36. Section 394.007(c), Health and Safety Code, is |
|
amended to read as follows: |
|
(c) A person may not receive a grant under this chapter |
|
that, when combined with any other grant, tax credit, or other |
|
governmental incentive, exceeds the incremental cost of the vehicle |
|
or vehicle repower for which the grant is awarded. A person shall |
|
return to the commission the amount of a grant awarded under this |
|
chapter that, when combined with any other grant, tax credit, or |
|
other governmental incentive, exceeds the incremental cost of the |
|
vehicle or vehicle repower for which the grant is awarded. |
|
SECTION 37. Sections 394.008(a) and (b), Health and Safety |
|
Code, are amended to read as follows: |
|
(a) The commission shall establish [adopt] procedures for: |
|
(1) awarding grants under this chapter to reimburse |
|
eligible costs; [in the form of rebates; and] |
|
(2) streamlining the grant application, contracting, |
|
reimbursement, and reporting process for qualifying natural gas |
|
vehicle purchases or repowers; and |
|
(3) preapproving the award of grants to applicants who |
|
propose to purchase and replace motor vehicles described by Section |
|
394.005(b)(2)(B). |
|
(b) Procedures established [adopted] under this section |
|
must: |
|
(1) provide for the commission to compile and |
|
regularly update a listing of potentially eligible [preapproved] |
|
natural gas vehicles and engines powered by natural gas that are |
|
certified to the appropriate current federal emissions standards as |
|
determined by the commission[:
|
|
[(A)
powered by natural gas engines certified to
|
|
emit not more than 0.2 grams of nitrogen oxides per brake horsepower
|
|
hour; or
|
|
[(B)
certified to the United States
|
|
Environmental Protection Agency's light duty Bin 5 standard or
|
|
better]; |
|
(2) [if a federal standard for the calculation of
|
|
emissions reductions exists,] provide a method to calculate the |
|
reduction in emissions of nitrogen oxides, volatile organic |
|
compounds, carbon monoxide, particulate matter, and sulfur |
|
compounds for each replacement or repowering; |
|
(3) assign a standardized grant [rebate] amount for |
|
each qualifying vehicle or engine repower under Section 394.007; |
|
(4) allow for processing applications [rebates] on an |
|
ongoing first-come, first-served basis; |
|
(5) [provide for contracts between the commission and
|
|
participating dealers under Section 394.009;
|
|
[(6)
allow grant recipients to assign their grant
|
|
funds to participating dealers to offset the purchase or lease
|
|
price;
|
|
[(7)] require grant applicants to identify natural gas |
|
fueling stations that are available to fuel the qualifying vehicle |
|
in the area of its use; |
|
(6) [(8)] provide for payment not later than the 30th |
|
day after the date the request for reimbursement for an approved |
|
grant is received; |
|
(7) [(9)] provide for application submission and |
|
application status checks using procedures established by the |
|
commission, which may include application submission and status |
|
checks to be made over the Internet; and |
|
(8) [(10)] consolidate, simplify, and reduce the |
|
administrative work for applicants and the commission associated |
|
with grant application, contracting, reimbursement, and reporting |
|
requirements. |
|
SECTION 38. Section 394.012, Health and Safety Code, is |
|
amended to read as follows: |
|
Sec. 394.012. EXPIRATION. This chapter expires on the last |
|
day of the state fiscal biennium during which the commission |
|
publishes in the Texas Register certification that, with respect to |
|
each national ambient air quality standard for ozone under 40 |
|
C.F.R. Section 81.344, the United States Environmental Protection |
|
Agency has, for each designated area under that section: |
|
(1) designated the area as attainment or |
|
unclassifiable; or |
|
(2) approved a redesignation substitute making a |
|
finding of attainment for the area [August 31, 2017]. |
|
SECTION 39. Subtitle C, Title 5, Health and Safety Code, is |
|
amended by adding Chapter 395 to read as follows: |
|
CHAPTER 395. GOVERNMENTAL ALTERNATIVE FUEL FLEET GRANT PROGRAM |
|
Sec. 395.001. DEFINITIONS. In this chapter: |
|
(1) "Alternative fuel" means compressed natural gas, |
|
liquefied natural gas, liquefied petroleum gas, hydrogen fuel |
|
cells, or electricity, including electricity to power fully |
|
electric motor vehicles and plug-in hybrid electric motor vehicles. |
|
(2) "Commission" means the Texas Commission on |
|
Environmental Quality. |
|
(3) "Incremental cost" has the meaning assigned by |
|
Section 386.001. |
|
(4) "Motor vehicle" means a self-propelled device |
|
designed for transporting persons or property on a public highway |
|
that is required to be registered under Chapter 502, Transportation |
|
Code. |
|
(5) "Political subdivision" means a school district, |
|
junior college district, river authority, water district or other |
|
special district, or other political subdivision created under the |
|
constitution or a statute of this state, other than a county or |
|
municipality. |
|
(6) "Program" means the governmental alternative fuel |
|
fleet grant program established under this chapter. |
|
(7) "State agency" has the meaning assigned by Section |
|
2151.002, Government Code. |
|
Sec. 395.002. PROGRAM. (a) The commission shall establish |
|
and administer a governmental alternative fuel fleet grant program |
|
to assist an eligible state agency, county, municipality, or |
|
political subdivision in purchasing or leasing new motor vehicles |
|
that operate primarily on an alternative fuel. |
|
(b) The program may provide a grant to a state agency, |
|
county, municipality, or political subdivision to: |
|
(1) purchase or lease a new motor vehicle described by |
|
Section 395.004; or |
|
(2) purchase, lease, or install refueling |
|
infrastructure or equipment or procure refueling services as |
|
described by Section 395.005 to store and dispense alternative fuel |
|
needed for a motor vehicle described by Subdivision (1) of this |
|
subsection. |
|
Sec. 395.003. ELIGIBLE APPLICANTS. (a) A state agency, |
|
county, or municipality is eligible to apply for a grant under the |
|
program if the entity operates a fleet of more than 15 motor |
|
vehicles, excluding motor vehicles that are owned and operated by a |
|
private company or other third party under a contract with the |
|
entity. |
|
(b) A mass transit or school transportation provider or |
|
other public entity established to provide public or school |
|
transportation services is eligible for a grant under the program. |
|
Sec. 395.004. MOTOR VEHICLE REQUIREMENTS. (a) A grant |
|
recipient may purchase or lease with money from a grant under the |
|
program a new motor vehicle that is originally manufactured to |
|
operate using one or more alternative fuels or is converted to |
|
operate using one or more alternative fuels before the first retail |
|
sale of the vehicle, and that: |
|
(1) has a dedicated system, dual-fuel system, or |
|
bi-fuel system; and |
|
(2) if the motor vehicle is a fully electric motor |
|
vehicle or plug-in hybrid electric motor vehicle, has a United |
|
States Environmental Protection Agency rating of at least 75 miles |
|
per gallon equivalent or a 75-mile combined city and highway range. |
|
(b) A grant recipient may not use money from a grant under |
|
the program to replace a motor vehicle, transit bus, or school bus |
|
that operates on an alternative fuel unless the replacement vehicle |
|
produces fewer emissions and has greater fuel efficiency than the |
|
vehicle being replaced. |
|
Sec. 395.005. REFUELING INFRASTRUCTURE, EQUIPMENT, AND |
|
SERVICES. A grant recipient may purchase, lease, or install |
|
refueling infrastructure or equipment or procure refueling |
|
services with money from a grant under the program if: |
|
(1) the purchase, lease, installation, or procurement |
|
is made in conjunction with the purchase or lease of a motor vehicle |
|
as described by Section 395.004 or the conversion of a motor vehicle |
|
to operate primarily on an alternative fuel; |
|
(2) the grant recipient demonstrates that a refueling |
|
station that meets the needs of the recipient is not available |
|
within five miles of the location at which the recipient's vehicles |
|
are stored or primarily used; and |
|
(3) for the purchase or installation of refueling |
|
infrastructure or equipment, the infrastructure or equipment will |
|
be owned and operated by the grant recipient, and for the lease of |
|
refueling infrastructure or equipment or the procurement of |
|
refueling services, a third-party service provider engaged by the |
|
grant recipient will provide the infrastructure, equipment, or |
|
services. |
|
Sec. 395.006. ELIGIBLE COSTS. (a) A motor vehicle lease |
|
agreement paid for with money from a grant under the program must |
|
have a term of at least three years. |
|
(b) Refueling infrastructure or equipment purchased or |
|
installed with money from a grant under the program must be used |
|
specifically to store or dispense alternative fuel, as determined |
|
by the commission. |
|
(c) A lease of or service agreement for refueling |
|
infrastructure, equipment, or services paid for with money from a |
|
grant under the program must have a term of at least three years. |
|
Sec. 395.007. GRANT AMOUNTS. (a) The commission may |
|
establish standardized grant amounts based on the incremental costs |
|
associated with the purchase or lease of different categories of |
|
motor vehicles, including the type of fuel used, vehicle class, and |
|
other categories the commission considers appropriate. |
|
(b) In determining the incremental costs and setting the |
|
standardized grant amounts, the commission may consider the |
|
difference in cost between a new motor vehicle operated using |
|
conventional gasoline or diesel fuel and a new motor vehicle |
|
operated using alternative fuel. |
|
(c) The amount of a grant for the purchase or lease of a |
|
motor vehicle may not exceed the amount of the incremental cost of |
|
the purchase or lease. |
|
(d) The commission may establish grant amounts to reimburse |
|
the full cost of the purchase, lease, installation, or procurement |
|
of refueling infrastructure, equipment, or services or may |
|
establish criteria for reimbursing a percentage of the cost. |
|
(e) A grant under the program may be combined with funding |
|
from other sources, including other grant programs, except that a |
|
grant may not be combined with other funding or grants from the |
|
Texas emissions reduction plan. When combined with other funding |
|
sources, a grant may not exceed the total cost to the grant |
|
recipient. |
|
(f) In providing a grant for the lease of a motor vehicle |
|
under this chapter, the commission shall establish criteria: |
|
(1) to offset incremental costs through an up-front |
|
payment to lower the cost basis of the lease; or |
|
(2) if determined appropriate by the commission, to |
|
provide for reimbursement of lease payments over no more than the |
|
period of availability of the contracted funds under applicable |
|
state law and regulation, which may be less than the required |
|
three-year lease term. |
|
(g) In providing a grant for the lease of refueling |
|
infrastructure, equipment, or services, the commission shall |
|
establish criteria: |
|
(1) to offset incremental costs through an up-front |
|
payment to lower the cost basis of the lease; or |
|
(2) if determined appropriate by the commission, to |
|
provide for reimbursement of lease payments over no more than the |
|
period of availability of the contracted funds under applicable |
|
state law and regulation, which may be less than the required |
|
three-year lease term. |
|
(h) Notwithstanding Subsection (d), the commission is not |
|
obligated to fund the full cost of the purchase, lease, |
|
installation, or procurement of refueling infrastructure, |
|
equipment, or services if those costs cannot be incurred and |
|
reimbursed over the period of availability of the funds under |
|
applicable state law and regulation. |
|
Sec. 395.008. AVAILABILITY OF EMISSIONS REDUCTION CREDITS. |
|
(a) A project that is funded from a grant under the program and that |
|
would generate marketable emissions reduction credits under a state |
|
or federal emissions reduction credit averaging, banking, or |
|
trading program is not eligible for funding under the program |
|
unless: |
|
(1) the project includes the transfer of the credits, |
|
or the reductions that would otherwise be marketable credits, to |
|
the commission and, if applicable, the state implementation plan; |
|
and |
|
(2) the credits or reductions, as applicable, are |
|
permanently retired. |
|
(b) An emissions reduction generated by a purchase or lease |
|
under this chapter may be used to demonstrate conformity with the |
|
state implementation plan. |
|
Sec. 395.009. USE OF GRANT MONEY BY COUNTY OR MUNICIPALITY. |
|
A county or municipality shall prioritize the actions listed in |
|
Section 2158.0051(b), Government Code, when using money from a |
|
grant under the program. |
|
Sec. 395.010. GRANT PROCEDURES AND CRITERIA. (a) The |
|
commission shall establish specific criteria and procedures in |
|
order to implement and administer the program, including the |
|
creation and provision of application forms and guidance on the |
|
application process. |
|
(b) The commission shall award a grant through a contract |
|
between the commission and the grant recipient. |
|
(c) The commission shall provide an online application |
|
process for the submission of all required application documents. |
|
(d) The commission may limit funding for a particular period |
|
according to priorities established by the commission, including |
|
limiting the availability of grants to specific entities, for |
|
certain types of vehicles and infrastructure, or to certain |
|
geographic areas to ensure equitable distribution of grant funds |
|
across the state. |
|
(e) In awarding grants under the program, the commission |
|
shall prioritize projects that: |
|
(1) are proposed by a state agency; |
|
(2) are in or near a nonattainment area; |
|
(3) are in an affected county, as that term is defined |
|
by Section 386.001; and |
|
(4) will produce the greatest emissions reductions. |
|
(f) In addition to the requirements under Subsection (e), in |
|
awarding grants under the program, the commission shall consider: |
|
(1) the effectiveness of a proposed project in |
|
assisting an applicant in complying with Section 2158.0051, |
|
Government Code; |
|
(2) the total amount of the emissions reduction that |
|
would be achieved from the project; |
|
(3) the type and number of vehicles purchased or |
|
leased; |
|
(4) the location of the fleet and the refueling |
|
infrastructure or equipment; |
|
(5) the number of vehicles served and the rate at which |
|
vehicles are served by the refueling infrastructure or equipment; |
|
(6) the amount of any matching funds committed by the |
|
applicant; and |
|
(7) the schedule for project completion. |
|
(g) The commission may not award more than 10 percent of the |
|
total amount awarded under the program in any fiscal year for |
|
purchasing, leasing, installing, or procuring refueling |
|
infrastructure, equipment, or services. |
|
Sec. 395.011. FUNDING. The legislature may appropriate |
|
money to the commission from the Texas emissions reduction plan |
|
fund established under Section 386.251 to administer the program. |
|
Sec. 395.012. ADMINISTRATIVE COSTS. In each fiscal year, |
|
the commission may use up to three-fourths of one percent of the |
|
total amount of money awarded under the program in that fiscal year, |
|
but not more than $1 million, for the administrative costs of the |
|
program. |
|
Sec. 395.013. RULES. The commission may adopt rules as |
|
necessary to implement this chapter. |
|
Sec. 395.014. REPORT REQUIRED. On or before November 1 of |
|
each even-numbered year, the commission shall submit to the |
|
governor, lieutenant governor, and members of the legislature a |
|
report that includes the following information regarding awards |
|
made under the program during the preceding state fiscal biennium: |
|
(1) the number of grants awarded under the program; |
|
(2) the recipient of each grant awarded; |
|
(3) the number of vehicles replaced; |
|
(4) the number, type, and location of any refueling |
|
infrastructure, equipment, or services funded under the program; |
|
(5) the total emissions reductions achieved under the |
|
program; and |
|
(6) any other information the commission considers |
|
relevant. |
|
Sec. 395.015. EXPIRATION. This chapter expires on the last |
|
day of the state fiscal biennium during which the commission |
|
publishes in the Texas Register certification that, with respect to |
|
each national ambient air quality standard for ozone under 40 |
|
C.F.R. Section 81.344, the United States Environmental Protection |
|
Agency has, for each designated area under that section: |
|
(1) designated the area as attainment or |
|
unclassifiable; or |
|
(2) approved a redesignation substitute making a |
|
finding of attainment for the area. |
|
SECTION 40. Sections 394.009, 394.010, and 394.011, Health |
|
and Safety Code, are repealed. |
|
SECTION 41. The changes in law made by this Act apply only |
|
to a Texas emissions reduction plan grant awarded on or after the |
|
effective date of this Act. A grant awarded before the effective |
|
date of this Act is governed by the law in effect on the date the |
|
award was made, and the former law is continued in effect for that |
|
purpose. |
|
SECTION 42. This Act takes effect September 1, 2017. |