By: Landgraf H.B. No. 4472
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the Texas emissions reduction plan fund and account.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 386.252(a), Health and Safety Code, as
  effective September 1, 2021, is amended to read as follows:
         (a)  Money in the fund and account 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 from the fund and account 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)  six [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)  two [five] percent may 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)  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 $16 million
  may be used by 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 may be used by 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)  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 2.  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 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;
                     (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; or
                     (C)  the installation of systems that reduce
  flaring emissions and other site emissions [by capturing waste heat
  to generate electricity solely for on-site service]; and
               (4)  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 3.  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;
               (3)  include the use of solar, wind, or other renewable
  energy sources; [or]
               (4)  recover waste heat from the combustion of natural
  resources and use the heat to generate electricity; or
               (5)  reduce emissions.
         SECTION 4.  Section 391.301, Health and Safety Code, is
  amended to read as follows:
         Sec. 391.301.  RESTRICTION ON USE OF GRANT. A recipient of a
  grant under this chapter must use the grant to pay the incremental
  costs of the purchase, rental, or [and] installation of the project
  for which the grant is made, which may include reasonable and
  necessary expenses for the labor needed to install
  emissions-reducing equipment. [The recipient may not use the grant
  for the costs of operating and maintaining the emissions-reducing
  equipment.]
         SECTION 5.  Section 151.0515(b), Tax Code, is 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 1 [1.5] percent of the sale price or the lease or
  rental amount.
         SECTION 6.  Section 501.138, Transportation Code, is amended
  by amending Subsections (b-1), (b-2), and (b-3) and adding
  Subsection (b-4) to read as follows:
         (b-1)  Except as provided by Subsection (b-4), fees [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 emissions reduction
  plan fund [Mobility Fund] under Subsection (b-1). 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 Mobility Fund [emissions reduction plan fund] an amount of
  money equal to the amount of the fees deposited by the comptroller
  to the credit of the Texas emissions reduction plan fund [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 Subsections (b-1) 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.
         (b-4)  Fees collected under Subsection (b) to be sent to the
  comptroller shall be deposited to the credit of the Texas Mobility
  Fund if the fees are collected on or after 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.
         SECTION 7.  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 8.  The change in law made by this Act to Section
  501.138, Transportation Code, applies only to a fee collected on or
  after the effective date of this Act. A fee collected before the
  effective date of this Act is governed by the law in effect when the
  fee was collected, and the former law is continued in effect for
  that purpose.
         SECTION 9.  This Act takes effect September 1, 2021.