Bill Text: TX HB14 | 2015-2016 | 84th Legislature | Comm Sub

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Bill Title: Relating to the Texas emissions reduction plan.

Sponsorship: Moderate Partisan Bill (Democrat 4-1)

Status: (Engrossed - Dead) 2015-05-29 - House appoints conferees-reported [HB14 Detail]

Download: Texas-2015-HB14-Comm_Sub.html

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By: Morrison, Isaac, Reynolds H.B. No. 14
(Senate Sponsor - Watson)
(In the Senate - Received from the House May 11, 2015;
May 12, 2015, read first time and referred to Committee on Natural
Resources and Economic Development; May 21, 2015, reported
adversely, with favorable Committee Substitute by the following
vote: Yeas 9, Nays 1; May 21, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 14 By: Estes

COMMITTEE VOTE
YeaNayAbsentPNV
FraserX
EstesX
BirdwellX
HallX
HancockX
HinojosaX
LucioX
NicholsX
SeligerX
UrestiX
ZaffiriniX
A BILL TO BE ENTITLED
AN ACT
relating to the Texas emissions reduction plan.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 2. Section 386.002, Health and Safety Code, is
amended to read as follows:
Sec. 386.002. EXPIRATION. This chapter expires August 31,
2023 [2019].
SECTION 3. 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(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.
SECTION 4. 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 5. 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 6. Section 386.152, Health and Safety Code, is
amended by amending Subsection (b) and adding Subsection (d) to
read as follows:
(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.
(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.
SECTION 7. Sections 386.153(a), (b-1), (c), and (d), Health
and Safety Code, are amended to read as follows:
(a) A new light-duty motor vehicle powered by compressed
natural gas or liquefied petroleum gas is eligible for a $5,000
[$2,500] 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) [is rated at not more than 9,600 pounds unloaded
vehicle weight;
[(5)] 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) [(6)] 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) [(7)] 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-1) The incentive under Subsection (a) is limited to 1,000
[2,000] vehicles for each [the] state fiscal biennium [beginning
September 1, 2013].
(c) 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) [is rated at not more than 8,500 pounds unloaded
vehicle weight;
[(5)] has a maximum speed capability of at least 55
miles per hour;
(5) [(6)] 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) [(7)] 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.
(d) The incentive under Subsection (c) is limited to 2,000
vehicles for each [the] state fiscal biennium [beginning September
1, 2013].
SECTION 8. Section 386.155, Health and Safety Code, is
amended to read as follows:
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 [emissions standards] established [by the schedules
set out] under Section 386.153. 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.
SECTION 9. Section 386.156, Health and Safety Code, is
amended to read as follows:
Sec. 386.156. LIST OF ELIGIBLE MOTOR VEHICLES. (a) On
August 1 each year the commission shall publish a list of new
[model] motor vehicle models [vehicles] eligible for inclusion in
an incentive under this subchapter [as listed for the commission
under Section 386.155]. 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 [vehicles] on the commission's Internet website.
SECTION 10. Section 386.158(b), Health and Safety Code, is
amended to read as follows:
(b) A lease incentive for a new light-duty motor vehicle
shall be prorated based on a three-year [four-year] lease term.
SECTION 11. Section 386.160(c), Health and Safety Code, is
amended to read as follows:
(c) The commission may require the submission of forms and
documentation as needed to verify eligibility for an incentive
under this subchapter [In addition to other forms developed and
published under this section, the commission shall develop and
publish a verification form by which, with information provided by
the dealer or leasing agent, the commission can verify the sale of a
vehicle covered by this subchapter. The verification form shall
include at least the name of the purchaser, the vehicle
identification number of the vehicle involved, the date of the
purchase, and the name of the new motor dealer or leasing agent
involved in the transaction. At the time of sale or lease of a
vehicle eligible for an incentive under this subchapter, the dealer
or leasing agent shall complete the verification form supplied to
the dealer by the commission. The purchaser or lessee shall include
the completed verification form as part of the purchaser's
application for an incentive. The dealer shall maintain a copy of
the completed verification form for at least two years from the date
of the transaction].
SECTION 12. The heading to Section 386.161, Health and
Safety Code, is amended to read as follows:
Sec. 386.161. [SUSPENSION OF] PURCHASE OR LEASE INCENTIVES
INFORMATION.
SECTION 13. Subchapter D, Chapter 386, Health and Safety
Code, is amended by adding Section 386.1611 to read as follows:
Sec. 386.1611. 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 14. Section 386.162, Health and Safety Code, is
amended to read as follows:
Sec. 386.162. EXPIRATION. This subchapter expires August
31, 2023 [2015].
SECTION 15. 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 16. 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 17. Section 386.252, Health and Safety Code, is
amended by amending Subsection (a) and adding Subsections (g-1) and
(g-2) to read as follows:
(a) Money in the fund may be used only to implement and
administer programs established under the plan. Money
appropriated to the commission to be used for the programs under
Section 386.051(b) shall 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 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 shall be used for the
Texas natural gas vehicle grant program under Chapter 394;
(6) not more than 10 [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;
(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.
(g-1) 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.
(g-2) Money in the fund may be allocated for administrative
costs incurred by the laboratory.
SECTION 18. Section 390.006, Health and Safety Code, is
amended to read as follows:
Sec. 390.006. EXPIRATION. This chapter expires August 31,
2023 [2019].
SECTION 19. 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;
(2-a) 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
(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 20. 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 21. Section 391.304, Health and Safety Code, is
amended to read as follows:
Sec. 391.304. EXPIRATION. This chapter expires August 31,
2023 [2019].
SECTION 22. 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 23. 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 current federal emissions
standards;
(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 24. 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 25. Section 392.005, Health and Safety Code, is
amended by amending Subsections (b), (c), and (i) and adding
Subsection (c-1) to read as follows:
(b) To be eligible for a grant under the program, a project
must:
(1) result in a reduction in emissions of nitrogen
oxides or other pollutants, as established by the commission, of at
least 25 percent, 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) replace a vehicle that:
(A) 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;
(B) satisfies any minimum average annual mileage
or fuel usage requirements established by the commission;
(C) satisfies any minimum percentage of annual
usage requirements established by the commission; and
(D) is in operating condition and has at least
four [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, 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 26. Section 392.008, Health and Safety Code, is
amended to read as follows:
Sec. 392.008. EXPIRATION. This chapter expires August 31,
2023 [2017].
SECTION 27. 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 triangle" 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 triangular area
formed 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 triangular area
formed 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), as
amended; 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 28. 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 triangle [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 triangle 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 29. 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 30. 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) 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 commission
in the grant contract [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 triangular area in and
between the Houston, San Antonio, and Dallas-Fort Worth areas; and
(4) facilities located in the triangular 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 31. 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 32. 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 33. Section 393.007, Health and Safety Code, is
amended to read as follows:
Sec. 393.007. EXPIRATION. This chapter expires August 31,
2023 [2018].
SECTION 34. Sections 394.001(1), (4), and (5), Health and
Safety Code, are amended to read as follows:
(1) "Clean transportation triangle" has the meaning
assigned by Section 393.001 ["Advisory board" means the Texas
Emissions Reduction Plan Advisory Board].
(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].
SECTION 35. Section 394.001, Health and Safety Code, is
amended by adding Subdivision (1-a) to read as follows:
(1-a) "Certified" includes:
(A) new vehicle or 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.
SECTION 36. 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 current federal emissions
standards;
(C) replaces an on-road heavy-duty or
medium-duty motor vehicle of the same weight classification and
use; and
(D) is certified to or 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
(iii) meet or exceed the United States
Environmental Protection Agency's chassis-certified heavy-duty
vehicle emission standard of:
(a) 0.2 grams of nitrogen oxides per
mile for vehicles with a gross vehicle weight rating of 8,501 to
10,000 pounds; or
(b) 0.4 grams of nitrogen oxides per
mile for vehicles with a gross vehicle weight rating of 10,001 to
14,000 pounds; or
(2) repowered the on-road motor vehicle to a natural
gas vehicle powered by a natural gas engine that:
(A) is certified to current federal emissions
standards; 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; or
(iii) certified to meet or exceed the
United States Environmental Protection Agency's chassis-certified
heavy-duty vehicle emission standard of:
(a) 0.2 grams of nitrogen oxides per
mile for vehicles with a gross vehicle weight rating of 8,501 to
10,000 pounds when powering the vehicle; or
(b) 0.4 grams of nitrogen oxides per
mile for vehicles with a gross vehicle weight rating of 10,001 to
14,000 pounds when powering the vehicle.
SECTION 37. Section 394.005, Health and Safety Code, is
amended by amending Subsections (a), (b), (c), (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 four [two] years of remaining useful life, as determined in
accordance with criteria established by the commission; or
(B) 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 four [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 triangle [:
[(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.
(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) 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 38. 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 39. 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 40. 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.
(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:
(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; or
(C) meet or exceed the United States
Environmental Protection Agency's chassis-certified heavy-duty
vehicle emission standard of:
(i) 0.2 grams of nitrogen oxides per mile
for vehicles with a gross vehicle weight rating of 8,501 to 10,000
pounds; or
(ii) 0.4 grams of nitrogen oxides per mile
for vehicles with a gross vehicle weight rating of 10,001 to 14,000
pounds;
(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 41. Section 394.012, Health and Safety Code, is
amended to read as follows:
Sec. 394.012. EXPIRATION. This chapter expires August 31,
2023 [2017].
SECTION 42. Sections 386.161(b), 386.252(e-1), 394.009,
394.010, and 394.011, Health and Safety Code, are repealed.
SECTION 43. 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 44. This Act takes effect August 31, 2015.
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