88R8124 JRR-D
 
  By: Zaffirini S.B. No. 1190
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to certain eligibility requirements for grants under the
  Texas natural gas vehicle grant program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 394.005(b) and (c), Health and Safety
  Code, are amended to read as follows:
         (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 qualifying
  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;
                     (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 Texas [a county
  located in the clean transportation zone] 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 or the date
  the vehicle has been in operation for 400,000 miles after the
  activity start date established by the commission.  [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.]
         SECTION 2.  Section 394.001(1-a), Health and Safety Code, is
  repealed.
         SECTION 3.  The change in law made by this Act applies only
  to a 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 4.  This Act takes effect September 1, 2023.