86R1164 JRR-F
 
  By: Reynolds H.B. No. 2581
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the administration of and funding for the Texas
  emissions reduction plan; reducing a surcharge.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  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);
               (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);
               (10)  the Texas clean fleet program established under
  Chapter 392;
               (11)  the Texas alternative fueling facilities program
  established under Chapter 393;
               (12)  the Texas natural gas vehicle grant 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;
               (15)  the seaport and rail yard areas emissions
  reduction program established under Subchapter D-1;
               (16)  conducting research and other activities
  associated with making any necessary demonstrations to the United
  States Environmental Protection Agency to account for the impact of
  foreign emissions or an exceptional event;
               (17)  studies of or pilot programs for incentives for
  port authorities located in nonattainment areas or affected
  counties as provided by Section 386.252(a); [and]
               (18)  the governmental alternative fuel fleet grant
  program established under Chapter 395; and
               (19)  the energy efficiency loan guarantee program
  established under Section 388.013.
         SECTION 2.  Section 386.252(a), Health and Safety Code, is
  amended to read as follows:
         (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 (h), money
  appropriated to the commission to be used for the programs under
  Section 386.051(b) shall initially be allocated as follows:
               (1)  four percent may be used for the clean school bus
  program under Chapter 390;
               (2)  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 be used for the Texas 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)  10 percent may be used for the Texas natural gas
  vehicle grant program under Chapter 394;
               (6)  not more than $6 million 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, except that money may not be allocated for the
  Texas alternative fueling facilities program for the state fiscal
  year ending August 31, 2019;
               (7)  not more than $750,000 may be used each year to
  support research related to air quality as provided by Chapter 387;
               (8)  not more than $200,000 may be used for a health
  effects study;
               (9)  at least $6 million but not more than $8 million is
  allocated to the commission for administrative costs, including all
  direct and indirect costs for administering the plan, costs for
  conducting outreach and education activities, and costs
  attributable to the review or approval of applications for
  marketable emissions reduction credits;
               (10)  six percent may be used by the commission for the
  seaport and rail yard areas emissions reduction program established
  under Subchapter D-1;
               (11)  five percent may be used for the light-duty motor
  vehicle purchase or lease incentive program established under
  Subchapter D;
               (12)  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;
               (13)  not more than $500,000 may be used for studies of
  or pilot programs for incentives for port authorities located in
  nonattainment areas or affected counties to encourage cargo
  movement that reduces emissions of nitrogen oxides and particulate
  matter; [and]
               (14)  at least $1 million and not more than $5 million
  shall be allocated for the energy efficiency loan guarantee program
  established under Section 388.013; and
               (15)  the balance is to be used by the commission for
  the diesel emissions reduction incentive program under Subchapter C
  as determined by the commission.
         SECTION 3.  Section 388.005(c), Health and Safety Code, is
  amended to read as follows:
         (c)  Each political subdivision, institution of higher
  education, or state agency shall establish a goal to reduce the
  electric consumption by the entity by at least five percent each
  state fiscal year for seven [10] years, beginning September 1, 2019
  [2011].
         SECTION 4.  Chapter 388, Health and Safety Code, is amended
  by adding Section 388.013 to read as follows:
         Sec. 388.013.  ENERGY EFFICIENCY LOAN GUARANTEE PROGRAM.
  (a) The comptroller and the State Energy Conservation Office by
  rule shall establish and administer a program that issues or
  guarantees loans to be used for improvements that increase the
  energy efficiency of residences that are not newly constructed.
         (b)  Rules adopted under this section must establish
  eligibility requirements for receipt of a loan issued or guaranteed
  under this section, including emissions reduction
  cost-effectiveness criteria.
         (c)  The State Energy Conservation Office annually shall
  submit to the commission and the laboratory a report that:
               (1)  evaluates the effectiveness of the program
  established under this section; and
               (2)  quantifies energy savings and emissions
  reductions as a result of this program for consideration in the
  state implementation plan for emissions reduction credit.
         SECTION 5.  Section 389.002, Health and Safety Code, is
  amended to read as follows:
         Sec. 389.002.  USE OF CERTAIN INFORMATION FOR FEDERAL
  RECOGNITION OF EMISSIONS REDUCTIONS. The commission, using
  information derived from the reports to the commission under
  Sections 386.205, 388.003(e), [and] 388.006, and 388.013, shall
  take all appropriate and necessary actions so that emissions
  reductions achieved by means of activities under Chapters 386 and
  388 are credited by the United States Environmental Protection
  Agency to the appropriate emissions reduction objectives in the
  state implementation plan.
         SECTION 6.  Sections 151.0515(b) and (d), Tax Code, are
  amended to read as follows:
         (b)  In each county in this state, a surcharge is imposed on
  the retail sale, lease, or rental of new or used equipment in an
  amount equal to one [1.5] percent of the sale price or the lease or
  rental amount.
         (d)  This section expires on the last day of the state fiscal
  biennium during which the Texas Commission on Environmental Quality
  publishes in the Texas Register the notice required by Section
  382.037, Health and Safety Code [August 31, 2019].
         SECTION 7.  Section 152.0215(c), Tax Code, is amended to
  read as follows:
         (c)  This section expires on the last day of the state fiscal
  biennium during which the Texas Commission on Environmental Quality
  publishes in the Texas Register the notice required by Section
  382.037, Health and Safety Code [August 31, 2019].
         SECTION 8.  Sections 501.138(b-1), (b-2), and (b-3),
  Transportation Code, are amended to read as follows:
         (b-1)  Fees collected under Subsection (b) to be sent to the
  comptroller shall be deposited to the credit of the Texas Mobility
  Fund[, except that $5 of each fee imposed under Subsection (a)(1)
  and deposited on or after September 1, 2008, and before September 1,
  2015, shall be deposited to the credit of the Texas emissions
  reduction plan fund].
         (b-2)  The comptroller shall establish a record of the amount
  of the fees deposited to the credit of the Texas Mobility Fund under
  Subsection (b-1) that are attributable to applicants described by
  Subsection (b)(3)(A).  On or before the fifth workday of each
  month, the Texas Department of Transportation shall remit to the
  comptroller for deposit to the credit of the Texas emissions
  reduction plan fund an amount of money equal to the amount of those
  [the] fees deposited [by the comptroller to the credit of the Texas
  Mobility Fund under Subsection (b-1)] in the preceding month.  The
  Texas Department of Transportation shall use for remittance to the
  comptroller as required by this subsection money in the state
  highway fund that is not required to be used for a purpose specified
  by Section 7-a, Article VIII, Texas Constitution, and may not use
  for that remittance money received by this state under the
  congestion mitigation and air quality improvement program
  established under 23 U.S.C. Section 149.
         (b-3)  This subsection and Subsection (b-2) expire on the
  last day of the state fiscal biennium during which the Texas
  Commission on Environmental Quality publishes in the Texas Register
  the notice required by Section 382.037, Health and Safety Code
  [August 31, 2019].
         SECTION 9.  Section 502.358(c), Transportation Code, is
  amended to read as follows:
         (c)  This section expires on the last day of the state fiscal
  biennium during which the Texas Commission on Environmental Quality
  publishes in the Texas Register the notice required by Section
  382.037, Health and Safety Code [August 31, 2019].
         SECTION 10.  The heading to Section 548.5055, Transportation
  Code, is amended to read as follows:
         Sec. 548.5055.  TEXAS EMISSIONS [EMISSION] REDUCTION PLAN
  FEE.
         SECTION 11.  Sections 548.5055(b) and (c), Transportation
  Code, are amended to read as follows:
         (b)  The department shall remit fees collected under this
  section to the comptroller at the time and in the manner prescribed
  by the comptroller for deposit in the Texas emissions [emission]
  reduction plan fund.
         (c)  This section expires on the last day of the state fiscal
  biennium during which the conservation commission publishes in the
  Texas Register the notice required by Section 382.037, Health and
  Safety Code [August 31, 2019].
         SECTION 12.  Sections 8(a-2) and (b), Chapter 755 (S.B.
  1731), Acts of the 85th Legislature, Regular Session, 2017, are
  repealed.
         SECTION 13.  The Texas Department of Transportation is not
  required to comply with Section 501.138(b-2), Transportation Code,
  as amended by this Act, until October 1, 2019. Before October 1,
  2019, the Texas Department of Transportation shall comply with
  Section 501.138(b-2), Transportation Code, as it existed on the
  effective date of this Act, and the former law is continued in
  effect for that purpose.
         SECTION 14.  This Act takes effect August 30, 2019.