Bill Text: TX HB2468 | 2021-2022 | 87th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to programs established and funded under the Texas emissions reduction plan.

Spectrum: Slight Partisan Bill (Democrat 3-1)

Status: (Engrossed - Dead) 2021-05-10 - Referred to Natural Resources & Economic Development [HB2468 Detail]

Download: Texas-2021-HB2468-Comm_Sub.html
  87R16682 JRR-F
 
  By: Thompson of Brazoria H.B. No. 2468
 
  Substitute the following for H.B. No. 2468:
 
  By:  Kuempel C.S.H.B. No. 2468
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to programs established and funded under the Texas
  emissions reduction plan.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  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(d);
               (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);
               (10)  the Texas clean fleet program established under
  Chapter 392;
               (11)  the Texas alternative fueling facilities program
  established under Chapter 393;
               (12)  the Texas natural gas vehicle grant 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;
               (15)  the seaport and rail yard areas emissions
  reduction program established under Subchapter D-1;
               (16)  conducting research and other activities
  associated with making any necessary demonstrations to the United
  States Environmental Protection Agency to account for the impact of
  foreign emissions or an exceptional event;
               (17)  studies of or pilot programs for incentives for
  port authorities located in nonattainment areas or affected
  counties as provided by Section 386.252(a); [and]
               (18)  the governmental alternative fuel fleet grant
  program established under Chapter 395;
               (19)  the purchase, maintenance, upgrade, and
  operation of air monitoring equipment as provided by Section
  386.252(a); and
               (20)  fee-based contracts entered into under the
  program established under Section 386.058.
         SECTION 2.  Subchapter B, Chapter 386, Health and Safety
  Code, is amended by adding Section 386.058 to read as follows:
         Sec. 386.058.  FEE-BASED CONTRACTS FOR PURCHASE OF
  REDUCTIONS IN EMISSIONS OF NITROGEN OXIDES. (a) The commission by
  rule shall establish a program authorizing the commission to enter
  into fee-based contracts for the purchase of reductions in
  emissions of nitrogen oxides.
         (b)  The program established under this section must:
               (1)  specify the types of projects that are eligible
  for fee-based contracts under the program, such as marine emission
  capture systems;
               (2)  measure nitrogen oxides emissions input and output
  on a continuous basis;
               (3)  require nitrogen oxides emissions reduced under
  the contract to be verified and certified by the commission;
               (4)  assign a dollar per ton fee based solely on the
  dollar per ton cost of the reduction in emissions of nitrogen
  oxides;
               (5)  require payments under the contract to be made
  only for actual reductions in nitrogen oxides emissions that are
  verified by the commission; and 
               (6)  authorize the commission to enter into multiyear
  contracts under the program.
         (c)  Notwithstanding Section 386.055:
               (1)  the commission may enter into a fee-based contract
  under the program established under this section for a project
  involving a new emissions reduction measure that would otherwise
  generate marketable credits under a state or federal emissions
  reduction credit averaging, banking, or trading program if, during
  the term of the contract, the project is not used for credit under
  any state or federal emissions reduction credit averaging, banking,
  or trading program; and
               (2)  a project that was subject to a fee-based contract
  under the program established under this section may be used for
  credit under a state or federal emissions reduction credit
  averaging, banking, or trading program if:
                     (A)  the contract has expired or otherwise
  terminated and the project is not subject to any other fee-based
  contract entered into under the program established under this
  section; and
                     (B)  the project otherwise meets the requirements
  of the applicable state or federal emissions reduction credit
  averaging, banking, or trading program.
         SECTION 3.  Sections 386.252(a) and (f), Health and Safety
  Code, as effective September 1, 2021, are 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)  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 Texas 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 $1 million [$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)  not more than $10 million may be used by the
  commission for the purchase, maintenance, upgrade, and operation of
  air monitoring equipment to be used in nonattainment areas and
  affected counties; and
               (15)  the balance is to be used by the commission for:
                     (A)  the diesel emissions reduction incentive
  program under Subchapter C as determined by the commission; and
                     (B)  fee-based contracts entered into under the
  program established under Section 386.058.
         (f)  Not more than $5 [$2.5] million from the fund and
  account may be used by the commission to conduct research and other
  activities associated with making any necessary demonstrations to
  the United States Environmental Protection Agency to account for
  the impact of foreign emissions or an exceptional event.
         SECTION 4.  This Act takes effect September 1, 2021.
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