BILL ANALYSIS

H.B. 963

By: Lozano

Environmental Regulation

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been noted that the Texas natural gas vehicle grant program is underutilized with only around a third of the amount allocated in this fiscal year requested by the close of the application period. Small fleet operators, often owner-operators with just one vehicle, are generally not able to afford new natural gas vehicles to replace their diesel vehicles, even with a grant, while large fleet operators cycle out their natural gas vehicles and sell them out of state because there is no secondary market for these used vehicles in Texas.

H.B. 963 seeks to provide for better utilization of the grant program by making certain used natural gas vehicles eligible under the program, which will provide a more affordable option for smaller operators to switch from a diesel vehicle to a natural gas vehicle, help target the most polluting diesel vehicles in small communities, and help create a secondary market to keep clean natural gas vehicles in Texas.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 963 amends the Health and Safety Code to make a used natural gas vehicle that otherwise satisfies applicable statutory requirements a qualifying vehicle under the Texas natural gas vehicle grant program. The bill requires a used natural gas vehicle that is proposed to replace an on-road heavy-duty or medium-duty motor vehicle to be of model year 2017 or later and prohibits the model year from being more than six years older than the current model year at the time of the grant application submission. The bill prohibits a program grant for a qualifying vehicle that is a used natural gas vehicle from being less than 80 percent of the incremental cost of the vehicle purchase, lease, or other commercial finance.

EFFECTIVE DATE

September 1, 2021.