Bill Text: TX HB2221 | 2021-2022 | 87th Legislature | Comm Sub

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Bill Title: Relating to mobile source emissions reductions and transportation electrification; authorizing a surcharge.

Sponsorship: Slight Partisan Bill (Democrat 6-3)

Status: (Introduced - Dead) 2021-04-29 - Committee report sent to Calendars [HB2221 Detail]

Download: Texas-2021-HB2221-Comm_Sub.html

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87R19563 JRR-F
By: Canales H.B. No. 2221
Substitute the following for H.B. No. 2221:
By: Paddie C.S.H.B. No. 2221

A BILL TO BE ENTITLED
AN ACT
relating to mobile source emissions reductions and transportation
electrification; authorizing a surcharge.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 4, Government Code, is amended
by adding Chapter 490I to read as follows:
CHAPTER 490I. TEXAS TRANSPORTATION ELECTRIFICATION COUNCIL
Sec. 490I.001. DEFINITION. In this chapter, "council"
means the Texas Transportation Electrification Council established
by this chapter.
Sec. 490I.002. ESTABLISHMENT; COMPOSITION. (a) The Texas
Transportation Electrification Council is established.
(b) The council is composed of the chair of, or if not
applicable, the administrative head of or a senior-level designee
from, each of the following entities:
(1) the Public Utility Commission of Texas;
(2) the Electric Reliability Council of Texas;
(3) the Texas Commission on Environmental Quality;
(4) the State Energy Conservation Office;
(5) the Texas Department of Licensing and Regulation;
(6) the Texas Department of Transportation;
(7) the Texas Department of Motor Vehicles;
(8) the Texas Department of Housing and Community
Affairs;
(9) the Texas State Affordable Housing Corporation;
(10) the Texas Division of Emergency Management; and
(11) the Texas Economic Development and Tourism
Office.
Sec. 490I.003. PRESIDING OFFICER; MEETINGS. (a) The
council annually shall elect one member to serve as the presiding
officer of the council.
(a-1) The executive director of the Texas Department of
Transportation shall serve as the initial presiding officer of the
council. This subsection expires September 1, 2023.
(b) The council shall hold at least four public meetings
each year.
Sec. 490I.004. ADMINISTRATIVE ATTACHMENT; FUNDING. (a)
The council is administratively attached to the Texas Department of
Transportation.
(b) The council shall be funded using existing funds of the
Texas Department of Transportation.
Sec. 490I.0045. ELECTRIC VEHICLE CHARGING INFRASTRUCTURE
ASSESSMENT. (a) Not later than March 1, 2022, the council shall
prepare an assessment of existing and planned public electric
vehicle charging infrastructure and associated technologies in
this state using existing databases. The assessment must include
the number and types of electric vehicle chargers at each location.
(b) The council shall use the assessment in developing the
plan required by Section 490I.005.
(c) This section expires September 1, 2023.
Sec. 490I.005. ELECTRIC VEHICLE CHARGING INFRASTRUCTURE
PLAN. (a) The council shall:
(1) develop a comprehensive plan for the development
of public electric vehicle charging infrastructure and associated
technologies in this state through the year 2040; and
(2) update the plan biennially.
(b) The plan must:
(1) include a phased implementation of the plan, in
biennial increments, through the year 2030;
(2) identify areas in this state for which additional
public electric vehicle charging infrastructure is needed to ensure
that the vehicle choice of residents of this state is not
constrained by a lack of access to adequate public electric vehicle
charging infrastructure;
(3) provide for sufficient public electric vehicle
charging infrastructure to meet and enable future demand for
electric vehicles in this state that:
(A) ensures that adequate public electric
vehicle charging infrastructure is available:
(i) with sufficient frequency and capacity
to enable users of electric vehicles of various classes to travel
border to border and community to community on interstate highways
and other major roadways in this state;
(ii) along evacuation routes and at highway
rest stops in this state; and
(iii) in rural communities, multifamily and
underserved communities, town centers, commercial and retail
areas, parks and other publicly owned lands, and other areas that
are in close proximity to where local electric vehicle users live or
work;
(B) is safe, dependable, serviceable, and
operational;
(C) maximizes the benefits associated with
transportation electrification;
(D) enhances commerce by ensuring an adequate
distribution of public electric vehicle charging infrastructure is
available throughout the state to stimulate lower cost and lower
emissions from heavy duty trucking and delivery services;
(E) ensures adequate public electric vehicle
charging capacity to facilitate commerce:
(i) at or near the borders of this state;
(ii) in or near airports, rail yards, and
seaports; and
(iii) at warehouse complexes and truck
stops;
(F) enhances accessibility of tourist areas to
electric vehicle users; and
(G) covers any other areas identified by the
council;
(4) stimulate competition, innovation, consumer
choices in public electric vehicle charging and related
infrastructure and services, and encourage private capital
investment;
(5) specify the number and types of electric vehicle
chargers per general location that are needed to meet the
requirements prescribed by Subdivisions (2), (3), and (4);
(6) examine vehicle and charging infrastructure
changes necessary to provide demand response functions and two-way
electricity flow capability in order to allow vehicle to grid
integration for cost savings, grid reliability, and resiliency; and
(7) provide for electric transportation corridors in
and along Texas Department of Transportation rights-of-way that
include the infrastructure needed for vehicle electrification,
such as:
(A) a greatly expanded global positioning system
network for vehicle location accuracy;
(B) advanced sensor networks for traffic;
(C) intelligent transportation services;
(D) connected vehicle applications; and
(E) improvements to energy infrastructure needed
to provide adequate vehicle charging.
(c) In developing and updating the plan, the council:
(1) shall use, to the extent practicable, publicly
available electric vehicle projections and models based on industry
standards to determine, for each year, the percentage and number of
electric vehicles by vehicle class that are expected on roadways in
this state and the number of electric vehicle chargers that are
needed to ensure that there is comprehensive and adequate access to
public electric vehicle charging infrastructure in this state; and
(2) may rely on scenarios provided by the Electric
Reliability Council of Texas or other information from appropriate
sources for the percentage and number of electric vehicles by
vehicle class on roadways in this state by year.
Sec. 490I.006. STATE AGENCY POLICY RECOMMENDATIONS. The
council shall develop policy recommendations that state agencies
may adopt to encourage the development of an adequate network of
public electric vehicle charging infrastructure and associated
technologies to meet the future electrified transportation needs in
this state through the year 2030.
Sec. 490I.007. STAKEHOLDER INPUT. In performing the
council's duties under this chapter, the council shall seek advice
and input from:
(1) privately owned electric utilities;
(2) municipally owned electric utilities;
(3) electric cooperatives;
(4) state and local transportation and transit
agencies;
(5) port authorities;
(6) warehousing and logistics centers;
(7) electric vehicle charging infrastructure
companies;
(8) environmental groups;
(9) consumer advocates;
(10) motor vehicle manufacturers;
(11) nonprofit organizations developing electric
vehicle policy;
(12) nonprofit organizations representing food or
motor fuel providers;
(13) apartment associations;
(14) low-income community development corporations;
(15) nonprofit organizations that represent
utilities, electric vehicle manufacturers, and charging companies;
and
(16) interested members of the public.
Sec. 490I.008. AUTHORITY TO CONTRACT AND CONSULT WITH
CERTAIN PERSONS. In performing the council's duties under this
chapter, the council may:
(1) contract with experts, academic scholars, and
other appropriate professionals; and
(2) consult with the Texas A&M Transportation
Institute and institutions of higher education.
Sec. 490I.0085. INITIAL REPORT. (a) Not later than
December 1, 2022, the council shall prepare and submit to the
governor, the lieutenant governor, each member of the legislature,
and relevant state and federal agencies a written report of the
council's findings that includes:
(1) the assessment prepared under Section 490I.0045;
(2) the plan developed under Section 490I.005,
including the phased implementation of the plan required by
Subsection (b)(1) of that section; and
(3) the policy recommendations developed under
Section 490I.006.
(b) This section expires September 1, 2025.
Sec. 490I.009. BIENNIAL REPORT. Not later than December 1
of each even-numbered year, the council shall prepare and submit to
the governor, the lieutenant governor, each member of the
legislature, and relevant state and federal agencies a written
report that includes:
(1) a summary of the progress made on the
implementation of the plan developed under Section 490I.005;
(2) the biennial update to the plan required under
Section 490I.005(a)(2); and
(3) any updates to the policy recommendations
developed under Section 490I.006.
SECTION 2. Section 386.001, Health and Safety Code, is
amended by adding Subdivision (4) to read as follows:
(4) "Federal funds" means all assistance provided to
the commission from the federal government in the form of grants,
contracts, loans, loan guarantees, property, cooperative
agreements, interest subsidies, insurance, direct appropriations,
or any other method of disbursement.
SECTION 3. Section 386.154, Health and Safety Code, is
amended by amending Subsection (d) and adding Subsections (f), (g),
and (h) to read as follows:
(d) 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) has a maximum speed capability of at least 55 miles
per hour;
(5) 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) is not designed, used, or maintained primarily to
transport property; and
(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.
(f) A new light-duty motor vehicle powered by an electric
drive is eligible for a $4,000 incentive if the vehicle:
(1) satisfies the requirements of Subsections
(d)(1)-(5);
(2) is designed, used, or maintained primarily to
transport property; and
(3) was acquired on or after September 1, 2021, or a
later date as established by the commission, by the person applying
for the incentive under this subsection and for use by that person
and not for resale.
(g) The incentive under Subsection (f) is limited to 2,000
vehicles for each state fiscal biennium.
(h) Notwithstanding Subsections (c), (e), and (g) and
subject to Section 386.252(a)(11), at the beginning of the second
state fiscal year of the biennium, the commission shall adjust the
initial vehicle limitations provided under Subsections (c), (e),
and (g) based on demand for incentives under this section during the
preceding state fiscal year.
SECTION 4. Section 386.181(b), Health and Safety Code, is
amended to read as follows:
(b) The commission may include more specific definitions in
the rules or guidelines developed to implement the programs
[program] established by this subchapter in order to reduce
emissions in and around seaports in a nonattainment area.
SECTION 5. Subchapter D-1, Chapter 386, Health and Safety
Code, is amended by adding Section 386.184 to read as follows:
Sec. 386.184. GRANT PROGRAM FOR ALTERNATIVELY FUELED
DRAYAGE TRUCK OR CARGO HANDLING EQUIPMENT INFRASTRUCTURE PROJECTS.
(a) The commission shall establish and administer a grant program
to encourage the purchase, construction, and installation of
infrastructure needed to support the use of drayage trucks or cargo
handling equipment that are powered by an alternative fuel, as
defined by Section 393.001.
(b) A grant awarded under the program established by this
section may not exceed more than 80 percent of the purchase,
construction, and installation costs of the infrastructure
project, provided that the commission may establish a reasonable
maximum amount of a grant awarded per infrastructure project as
needed.
SECTION 6. Sections 386.250(b) and (c), Health and Safety
Code, as effective September 1, 2021, are amended to read as
follows:
(b) The fund consists of:
(1) the amount of money deposited to the credit of the
fund under:
(A) Section 386.056;
(B) Sections 151.0515 and 152.0215, Tax Code; and
(C) Sections 501.138, 502.358, and 548.5055,
Transportation Code; [and]
(2) grant money recaptured under Section 386.111(d)
and Chapter 391; and
(3) federal funds deposited to the credit of the fund.
(c) Not later than the 30th day after the last day of each
state fiscal biennium, the commission shall transfer the
unencumbered balance of the fund remaining on the last day of the
state fiscal biennium to the credit of the Texas emissions
reduction plan account. This subsection does not apply to federal
funds deposited to the credit of the fund.
SECTION 7. Section 386.252, Health and Safety Code, as
effective September 1, 2021, is amended by amending Subsection (a)
and adding Subsection (i) 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) 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 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) eight percent [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.
(i) Notwithstanding any other law, federal funds deposited
to the credit of the fund may be used only as provided by the terms
of the applicable federal funds agreement.
SECTION 8. Section 393.006(a), Health and Safety Code, is
amended to read as follows:
(a) Grants awarded under this chapter for a facility to
provide alternative fuels other than natural gas may not exceed
[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[; or
[(2) $600,000].
SECTION 9. Subtitle A, Title 14, Occupations Code, is
amended by adding Chapter 2311 to read as follows:
CHAPTER 2311. ELECTRIC VEHICLE METERING
Sec. 2311.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Texas Commission of
Licensing and Regulation.
(2) "Metering device" means a commercial device used
to measure electric energy transferred by electric vehicle charging
stations and compute the charge for the energy.
Sec. 2311.002. RULES. (a) The commission by rule shall
establish:
(1) specifications, tolerances, and other technical
requirements for metering devices used in electric vehicle charging
stations used in commercial transactions; and
(2) standards for electric vehicle charging services
that ensure the accuracy of measurements, enhance consumer
protections, and promote fair competition.
(b) In adopting rules under Subsection (a), the commission
shall consider recommendations from relevant state and federal
agencies and stakeholders.
SECTION 10. Subchapter G, Chapter 502, Transportation Code,
is amended by adding Section 502.360 to read as follows:
Sec. 502.360. ELECTRIC VEHICLE SURCHARGE. (a) In this
section, "electric vehicle" means a motor vehicle that uses
electricity as its only source of motor power.
(b) In addition to the applicable registration fee charged
under Subchapter F, at the time of application for registration or
renewal of registration of an electric vehicle, the applicant shall
pay a surcharge in an amount of $100.
(c) Surcharges collected under this section shall be
deposited to the credit of the state highway fund.
(c-1) Notwithstanding Subsection (c), $40 of each surcharge
collected under this section shall be deposited to the credit of the
general revenue fund and may be used only for the operations of the
Texas Transportation Electrification Council under Chapter 490I,
Government Code. This subsection expires September 1, 2025.
(d) The board shall adopt rules necessary to administer
registration for an electric vehicle under this section.
SECTION 11. Section 31.002, Utilities Code, is amended by
adding Subdivision (3-a) and amending Subdivisions (6) and (17) to
read as follows:
(3-a) "Alternatively fueled vehicle" has the meaning
assigned by Section 502.004, Transportation Code.
(6) "Electric utility" means a person or river
authority that owns or operates for compensation in this state
equipment or facilities to produce, generate, transmit,
distribute, sell, or furnish electricity in this state. The term
includes a lessee, trustee, or receiver of an electric utility and a
recreational vehicle park owner who does not comply with Subchapter
C, Chapter 184, with regard to the metered sale of electricity at
the recreational vehicle park. The term does not include:
(A) a municipal corporation;
(B) a qualifying facility;
(C) a power generation company;
(D) an exempt wholesale generator;
(E) a power marketer;
(F) a corporation described by Section 32.053 to
the extent the corporation sells electricity exclusively at
wholesale and not to the ultimate consumer;
(G) an electric cooperative;
(H) a retail electric provider;
(I) this state or an agency of this state; or
(J) a person not otherwise an electric utility
who:
(i) furnishes an electric service or
commodity only to itself, its employees, or its tenants as an
incident of employment or tenancy, if that service or commodity is
not resold to or used by others;
(ii) owns or operates in this state
equipment or facilities to produce, generate, transmit,
distribute, sell, or furnish electric energy to an electric
utility, if the equipment or facilities are used primarily to
produce and generate electric energy for consumption by that
person; [or]
(iii) owns or operates in this state a
recreational vehicle park that provides metered electric service in
accordance with Subchapter C, Chapter 184; or
(iv) owns or operates equipment used solely
to provide electricity charging service for consumption by
alternatively fueled vehicles.
(17) "Retail electric provider" means a person that
sells electric energy to retail customers in this state. A retail
electric provider may not own or operate generation assets. The
term does not include a person not otherwise a retail electric
provider who owns or operates equipment used solely to provide
electricity charging service for consumption by alternatively
fueled vehicles.
SECTION 12. Subchapter A, Chapter 31, Utilities Code, is
amended by adding Section 31.0021 to read as follows:
Sec. 31.0021. CHARGING SERVICE. The commission by rule may
exempt from the definition of "electric utility" or "retail
electric provider" under Section 31.002 a provider who owns or
operates equipment used solely to provide electricity charging
service for a mode of transportation.
SECTION 13. Section 37.001(3), Utilities Code, is amended
to read as follows:
(3) "Retail electric utility" means a person,
political subdivision, electric cooperative, or agency that
operates, maintains, or controls in this state a facility to
provide retail electric utility service. The term does not include
a corporation described by Section 32.053 to the extent that the
corporation sells electricity exclusively at wholesale and not to
the ultimate consumer. A qualifying cogenerator that sells
electric energy at retail to the sole purchaser of the
cogenerator's thermal output under Sections 35.061 and 36.007 is
not for that reason considered to be a retail electric utility. The
owner or operator of a qualifying cogeneration facility who was
issued the necessary environmental permits from the Texas Natural
Resource Conservation Commission after January 1, 1998, and who
commenced construction of such qualifying facility before July 1,
1998, may provide electricity to the purchasers of the thermal
output of that qualifying facility and shall not for that reason be
considered an electric utility or a retail electric utility,
provided that the purchasers of the thermal output are owners of
manufacturing or process operation facilities that are located on a
site entirely owned before September, 1987, by one owner who
retained ownership after September, 1987, of some portion of the
facilities and that those facilities now share some integrated
operations, such as the provision of services and raw materials. A
person who owns or operates equipment used solely to provide
electricity charging service for consumption by alternatively
fueled vehicles is not for that reason considered to be a retail
electric utility.
SECTION 14. Subchapter A, Chapter 37, Utilities Code, is
amended by adding Section 37.002 to read as follows:
Sec. 37.002. CHARGING SERVICE. The commission may by rule
exempt from the definition of "retail electric utility" under
Section 37.001 a provider who owns or operates equipment used
solely to provide electricity charging service for a mode of
transportation.
SECTION 15. (a) In this section:
(1) "Commission" means the Texas Commission on
Environmental Quality.
(2) "Vehicle" has the meaning assigned by Section
541.201, Transportation Code.
(3) "Vehicle recycler" means a person engaged in the
business of acquiring, dismantling, or preparing for recycling six
or more end-of-life vehicles in a calendar year for the primary
purpose of reselling the vehicles' parts. The term includes a
salvage vehicle dealer licensed under Chapter 2302, Occupations
Code.
(b) Using existing funds, the commission shall conduct a
study on policies pertaining to the recovery and recycling of
lithium-ion and other propulsion batteries sold with electric
vehicles in this state. The study must examine:
(1) methods to ensure that as close to 100 percent as
possible of electric vehicle batteries in this state are reused or
recycled at end-of-life in a safe and cost-effective manner;
(2) policy recommendations that reflect entire life
cycle considerations for electric vehicle batteries, including
opportunities and barriers to the reuse of electric vehicle
batteries as energy storage systems after a battery is removed from
a vehicle;
(3) best management considerations for electric
vehicle batteries at end-of-life and the overall effect of
different management practices on the environment;
(4) in-state and out-of-state options for the
recycling of electric vehicle batteries; and
(5) future electric vehicle battery technologies.
(c) Not later than January 1, 2022, the commission shall
establish and convene an advisory group to provide guidance and
direction to the commission for purposes of conducting the study
required by this section and making legislative recommendations
based on the study. The advisory group shall meet at least
quarterly.
(d) The commission shall appoint to the advisory group at
least one member from each of the following:
(1) a representative from the Texas Economic
Development and Tourism Office;
(2) a representative from the Public Utility
Commission of Texas;
(3) a manufacturer of electric vehicles;
(4) an organization that represents one or more
vehicle manufacturers;
(5) a nonprofit organization that represents
utilities, electric vehicle manufacturers, and charging companies;
(6) an electronic waste recycler or an organization
that represents one or more electronic waste recyclers;
(7) a vehicle repair dealer or an organization that
represents one or more vehicle repair dealers;
(8) a vehicle recycler or an organization that
represents one or more vehicle recyclers;
(9) a nationwide environmental organization that
researches waste reduction and recycling strategies;
(10) a representative of the large-scale lithium-ion
and other energy storage technology industries;
(11) an electric vehicle battery manufacturer; and
(12) a standards-developing organization that has a
focus on automotive engineering.
(e) In advising the commission under this section, the
advisory group shall consult with:
(1) universities and research institutions that have
conducted research in the area of battery recycling;
(2) manufacturers of electric and hybrid vehicles; and
(3) the recycling industry.
(f) Not later than December 1, 2022, the commission shall
prepare and submit to the governor, the lieutenant governor, and
each member of the legislature a written report that includes a
summary of the results of the study conducted under this section and
any legislative recommendations based on the study.
(g) The advisory group is abolished and this section expires
January 1, 2023.
SECTION 16. The Texas Transportation Electrification
Council shall submit its first report under Section 490I.009,
Government Code, as added by this Act, not later than December 1,
2024.
SECTION 17. The changes in law made by this Act to Chapter
386, Health and Safety Code, 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 18. Not later than December 1, 2024, the Texas
Commission of Licensing and Regulation shall adopt the rules
required by Section 2311.002, Occupations Code, as added by this
Act.
SECTION 19. This Act takes effect September 1, 2021.