Bill Text: TX HB2682 | 2017-2018 | 85th Legislature | Introduced

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Bill Title: Relating to the administration of and funding for the Texas emissions reduction plan.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-04-18 - Left pending in committee [HB2682 Detail]

Download: Texas-2017-HB2682-Introduced.html

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85R5656 JRR-F
By: Reynolds H.B. No. 2682

A BILL TO BE ENTITLED
AN ACT
relating to the administration of and funding for the Texas
emissions reduction plan.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 2158.001(3) and (4), Government Code,
are amended to read as follows:
(3) "Light-duty motor vehicle" has the meaning
assigned by Section 392.001 [386.151], Health and Safety Code.
(4) "Motor vehicle" has the meaning assigned by
Section 392.001 [386.151], Health and Safety Code.
SECTION 2. 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 3. Section 386.002, Health and Safety Code, is
amended to read as follows:
Sec. 386.002. EXPIRATION. This chapter expires August 31,
2025 [2019].
SECTION 4. 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 alternative leak detection technology grant
[motor vehicle purchase or lease incentive] program established
under Section 386.252(a) [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 activities in
affected counties that are not otherwise required by state or
federal law as provided by [program established under] Section
386.252(a);
(7) studies of or pilot programs for activities
described [a health effects study as provided] by Section
386.252(a)(8) [386.252(a)];
(8) air quality planning activities as provided by
Section 386.252(d) [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 and other reductions of
air contaminants subject to the permitting requirements of Chapter
382 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 seaport and rail yard areas emissions
reduction [drayage truck incentive] program established under
Subchapter D-1.
SECTION 5. Section 386.057(b), Health and Safety Code, is
amended to read as follows:
(b) Not later than December 1, 2002, and not later than
December 1 of each subsequent second year, the commission, in
consultation with the advisory board, shall publish and submit to
the legislature a biennial plan report. The report must include:
(1) the information included in the annual reviews
conducted under Subsection (a);
(2) specific information for individual projects as
required by Subsection (c);
(3) information contained in reports received under
Sections 386.205, 388.003(e), and 388.006[, and 391.104]; [and]
(4) information required to be included under Section
391.104; and
(5) a summary of the commission's activities under
Section 386.052.
SECTION 6. Section 386.102(e), Health and Safety Code, is
amended to read as follows:
(e) To improve the success of the program the commission:
(1) shall establish cost-effective limits for grants
awarded under the program to an owner or operator of a locomotive or
marine vessel that are lower than the cost-effectiveness limits
applied to other emissions reductions grants;
(2) shall determine the maximum amount of reductions
available from the locomotive and marine sectors and develop
strategies to facilitate the maximum amount of reductions in these
sectors; [and]
(3) shall minimize, to the maximum extent possible,
the amount of paperwork required for an application for a grant
under the program; and
(4) after seeking comments and suggestions from
stakeholders, including applicants for and recipients of a grant
under the program and members of the economic sectors that
purchase, lease, or use equipment or vehicles subject to a
surcharge or fee that is deposited to the credit of the fund, shall:
(A) post on the commission's Internet website
comments and suggestions the commission received from stakeholders
on or regarding methods to minimize paperwork and to reduce the
administrative burden on applicants for a grant under the program;
and
(B) adopt and implement methods described by
Paragraph (A) that will not result in:
(i) increases to the period that an
application is under review; or
(ii) delays in the awarding of grants under
the program [include in the report required by Section 386.057(b)
that is due not later than December 1, 2006, an analysis of the
cost-effectiveness of the grants in these sectors].
SECTION 7. Section 386.103, Health and Safety Code, is
amended by amending Subsection (b) and adding Subsections (c) and
(d) to read as follows:
(b) An application for a grant under this subchapter must be
made on an application provided by the commission and must contain
information required by the commission, including:
(1) a [detailed] description of the proposed project;
(2) the minimum amount of information necessary for
the commission to determine whether the project meets eligibility
requirements for the type of project proposed, including a
statement of the amounts of any other public financial assistance
the project will receive; and
(3) other information the commission may require.
(c) The commission may request that the applicant provide
additional information under Subsection (b)(3) after the
application is filed.
(d) 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 8. Section 386.104, Health and Safety Code, is
amended by amending Subsections (c) and (j) and adding Subsections
(c-1) and (c-2) to read as follows:
(c) Except as otherwise provided by this subsection, for
[For] a proposed project as described by Section 386.102(b), other
than a project involving a marine vessel or engine, not less than 75
percent of vehicle miles traveled or hours of operation projected
for the five years immediately following the award of a grant must
be projected to take place in a nonattainment area or affected
county of this state. The commission may also allow vehicle travel
on highways and roadways, or portions of a highway or roadway,
designated by the commission and located outside a nonattainment
area or affected county to count towards the percentage of use
requirement in this subsection. For a proposed project involving
heavy-duty non-road diesel equipment, the commission shall set the
minimum percentage of hours of operation required to take place in a
nonattainment area or affected county at a level that supports the
economic feasibility of projects involving such equipment.
(c-1) For a proposed project involving a marine vessel or
engine, the vessel or engine must be operated in the intercoastal
waterways or bays adjacent to a nonattainment area or affected
county of this state for a sufficient amount of time over the
lifetime of the project, as determined by the commission, to meet
the cost-effectiveness requirements of Section 386.105.
(c-2) For a proposed project involving non-road equipment
used for natural gas recovery purposes, the equipment must be
operated in a nonattainment area or affected county for a
sufficient amount of use over the lifetime of the project, as
determined by the commission, to meet the cost-effectiveness
requirements of Section 386.105.
(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 9. Sections 386.116(a), (b), and (c), Health and
Safety Code, are amended to read as follows:
(a) In this section, "small business" means a business owned
by a person who:
(1) owns and operates not more than two vehicles, one
of which is:
(A) an on-road diesel [with a pre-1994 engine
model]; or
(B) a non-road diesel [with an engine with
uncontrolled emissions]; and
(2) has owned the vehicle described by Subdivision
(1)(A) or (B) for more than two years [one year].
(b) The commission [by rule] shall develop a method of
providing fast and simple access to grants under this subchapter
for a small business. The method must:
(1) create a separate small business grant program; or
(2) require the commission to give special
consideration to small businesses when implementing another
program established under this subchapter.
(c) The commission shall publicize and promote the
availability of grants under this subchapter for small businesses
[section] to encourage the use of vehicles that produce fewer
emissions.
SECTION 10. Section 386.117, Health and Safety Code, is
amended by amending Subsection (a) and adding Subsection (g) to
read as follows:
(a) The commission shall adopt a process for awarding grants
under this subchapter in the form of rebates to streamline the grant
application, contracting, reimbursement, and reporting processes
for certain projects. The process adopted under this section must:
(1) designate certain types of projects, such as
repowers, replacements, and retrofits, as eligible for rebates;
(2) project standardized oxides of nitrogen emissions
reductions for each designated project type;
(3) assign a standardized rebate amount for each
designated project type and set that amount at a level that supports
the economic feasibility of projects involving heavy-duty non-road
diesel equipment;
(4) allow for processing rebates on an ongoing
first-come, first-served basis; and
(5) consolidate, simplify, and reduce the
administrative work for applicants and the commission associated
with grant application, contracting, reimbursement, and reporting
processes for designated project types.
(g) To improve the success of the rebate grant process, the
commission, after seeking comments and suggestions from
stakeholders, including applicants for and recipients of a rebate
grant and members of the economic sectors that purchase, lease, or
use equipment or vehicles subject to a surcharge or fee that is
deposited to the credit of the fund, shall:
(1) post on the commission's Internet website comments
and suggestions the commission received from stakeholders on or
regarding methods to minimize paperwork and to reduce the
administrative burden on applicants for a rebate grant; and
(2) adopt and implement methods described by
Subdivision (1) that will not result in:
(A) increases to the period that an application
is under review; or
(B) delays in the awarding of rebate grants.
SECTION 11. The heading to Subchapter D-1, Chapter 386,
Health and Safety Code, is amended to read as follows:
SUBCHAPTER D-1. SEAPORT AND RAIL YARD AREAS EMISSIONS REDUCTION
[DRAYAGE TRUCK INCENTIVE] PROGRAM
SECTION 12. The heading to Section 386.181, Health and
Safety Code, is amended to read as follows:
Sec. 386.181. DEFINITIONS [DEFINITION]; RULES.
SECTION 13. Section 386.181(a), Health and Safety Code, is
amended to read as follows:
(a) In this subchapter:
(1) "Cargo handling equipment" means any heavy-duty
non-road, self-propelled vehicle or land-based equipment used at a
seaport or rail yard to lift or move cargo, such as containerized,
bulk, or break-bulk goods.
(2) "Drayage [, "drayage] truck" means a heavy-duty
on-road or non-road vehicle that is used for drayage activities and
that operates in or transgresses through [truck that transports a
load to or from] a seaport or rail yard for the purpose of loading,
unloading, or transporting cargo, including transporting empty
containers and chassis.
SECTION 14. Section 386.182, Health and Safety Code, is
amended to read as follows:
Sec. 386.182. COMMISSION DUTIES. (a) The commission
shall:
(1) develop a purchase incentive program to encourage
owners to replace drayage trucks and cargo handling equipment [with
pre-2007 model year engines] with newer drayage trucks and cargo
handling equipment; and
(2) [shall] adopt guidelines necessary to implement
the program described by Subdivision (1).
(b) The commission by rule or guideline shall establish
criteria for the models of drayage trucks and cargo handling
equipment that are eligible for inclusion in an incentive program
under this subchapter. [The guidelines must provide that a drayage
truck owner is not eligible for an incentive payment under this
subchapter unless the truck being replaced contains a pre-2007
model year engine and the replacement truck's engine is from model
year 2010 or later as determined by the commission and that the
truck operates at a seaport or rail yard.]
SECTION 15. The heading to Section 386.183, Health and
Safety Code, is amended to read as follows:
Sec. 386.183. DRAYAGE TRUCK AND CARGO HANDLING EQUIPMENT
PURCHASE INCENTIVE.
SECTION 16. Section 386.183, Health and Safety Code, is
amended by amending Subsections (a), (b), (c), (d), and (e) and
adding Subsections (a-1) and (a-2) to read as follows:
(a) To be eligible for an incentive under this subchapter, a
person must:
(1) purchase a replacement drayage truck or cargo
handling equipment that under Subsection (a-2) and the guidelines
adopted by the commission under Section 386.182 is eligible for
inclusion in the program for an incentive under this subchapter;
and
(2) agree to:
(A) register the drayage truck in this state, if
the replacement vehicle is an on-road drayage truck;
(B) operate the drayage truck or cargo handling
equipment in and within a maximum distance established by the
commission of a seaport or rail yard in a nonattainment area of this
state for not less than 50 percent of the truck's or equipment's
[vehicle's] annual mileage or hours of operation, as determined by
the commission; and
(C) permanently remove the [a pre-2007] drayage
truck or cargo handling equipment replaced under the program
[containing a pre-2007 engine owned by the person] from operation
in a nonattainment area of this state by destroying the engine and
scrapping the truck or equipment after the purchase of the
replacement [new] truck or equipment in accordance with guidelines
established by the commission.
(a-1) To be eligible for replacement under this program:
(1) an on-road drayage truck must contain a pre-2007
model year on-road engine or an engine certified to an emission rate
equivalent to a pre-2007 model year engine; and
(2) a non-road drayage truck or cargo handling
equipment must contain:
(A) an engine certified to an emission rate
equivalent to the United States Environmental Protection Agency's
Tier 3 or earlier non-road emission standards; or
(B) an uncontrolled engine manufactured before
the United States Environmental Protection Agency's non-road
emission standards were first implemented.
(a-2) To be eligible for purchase under this program:
(1) an on-road drayage truck must be powered by an
electric motor or contain a 2010 or later on-road engine; and
(2) a non-road drayage truck or cargo handling
equipment must be powered by an electric motor or contain an engine
certified to an emission rate equivalent to the United States
Environmental Protection Agency's final Tier 4 non-road emission
standards or a more stringent emission standard.
(b) To receive money under an incentive program provided by
this subchapter, the purchaser of a drayage truck or cargo handling
equipment eligible for inclusion in the program must apply for the
incentive in the manner provided by law, rule, or guideline of the
commission.
(c) Not more than one incentive may be provided for each
drayage truck or piece of cargo handling equipment purchased.
(d) An incentive provided under this subchapter may be used
to fund not more than 80 percent of the purchase price of the
drayage truck or cargo handling equipment.
(e) The commission shall establish procedures to verify
that a person who receives an incentive:
(1) has operated in a seaport or rail yard and owned or
leased the drayage truck or cargo handling equipment to be replaced
for at least two years prior to receiving the grant; and
(2) permanently destroys the engine and scraps the
drayage truck or cargo handling equipment replaced under the
program [that contained the pre-2007 engine owned or leased by the
person], in accordance with guidelines established by the
commission, after the purchase of the replacement [new] truck or
equipment.
SECTION 17. Section 386.205, Health and Safety Code, is
amended to read as follows:
Sec. 386.205. EVALUATION OF UTILITY COMMISSION AND
COMPTROLLER ENERGY EFFICIENCY PROGRAMS. (a) In cooperation with
the laboratory, the utility commission shall provide an annual
report to the commission that, by county, quantifies the reductions
of energy demand, peak loads, and associated emissions of air
contaminants achieved from programs implemented by the state energy
conservation office and from programs implemented under Section
39.905, Utilities Code.
(b) The report must also quantify the reductions in the
emissions of each air contaminant subject to the permitting
requirements of Chapter 382.
SECTION 18. Section 386.252, Health and Safety Code, is
amended to read as follows:
Sec. 386.252. USE OF FUND. (a) Money in the fund may be
used only to implement and administer programs established under
the plan. Subject to the reallocation of funds by the commission
under Subsection (f), money [Money] appropriated to the commission
to be used for the programs under Section 386.051(b) shall be
allocated at the beginning of each state fiscal biennium 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 may [shall] be used for the clean
fleet program under Chapter 392;
(4) not more than $2 [$3] million may be used by the
commission to fund grants for [a regional] air monitoring
activities in affected counties that are not otherwise required by
state or federal law [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 may [shall] be used for
the Texas natural gas vehicle grant program under Chapter 394;
(6) 10 [not more than 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 $500,000 [$200,000] may be
used for studies of or pilot programs for:
(A) incentives for port authorities located in
nonattainment areas to encourage cargo movement that reduces
emissions of nitrogen oxides and particulate matter;
(B) the designation of freight lanes on highways
that are to be used exclusively by low-emissions freight vehicles;
and
(C) the electrification of freight vehicles and
cargo handling equipment to increase commerce and to reduce
congestion and emissions [a health effects study];
(9) not more than $2 million may be used by the
commission to fund an alternative leak detection technology grant
program that:
(A) is to be implemented under the commission's
oversight; and
(B) provides grants for the purchase and use of
innovative technologies by an owner or operator, or a regional
nonprofit entity representing an owner or operator, of a facility
regulated under Subchapter I, Chapter 382, that is located in a
nonattainment area or affected county [(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];
(10) [(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 and costs for conducting
outreach and education activities to promote participation in the
programs funded under this section;
(11) if the commission contracts with a third party to
award all or a portion of the grants or other funding allocated to a
program listed in Section 386.051(b), an amount not to exceed five
percent of the contracted amount may be used for the administrative
costs incurred by the third party;
(12) [at least] two percent may [and up to five percent
of the fund is to] be used by the commission for the seaport and rail
yard areas emissions reduction [drayage truck incentive] program
established under Subchapter D-1;
(13) [not more than five percent may be used for the
light-duty motor vehicle purchase or lease incentive program
established under Subchapter D;
[(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 and other reductions of air contaminants
subject to the permitting requirements of Chapter 382 that are
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
(14) [(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.
(b) [The commission may allocate unexpended money
designated for the clean fleet program under Chapter 392 to other
programs described under Subsection (a) after the commission
allocates money to recipients under the clean fleet program.
[(c) The commission may allocate unexpended money
designated for the Texas alternative fueling facilities program
under Chapter 393 to other programs described under Subsection (a)
after the commission allocates money to recipients under the
alternative fueling facilities program.
[(d) The commission may reallocate money designated for the
Texas natural gas vehicle grant program under Chapter 394 to other
programs described under Subsection (a) if:
[(1) the commission, in consultation with the governor
and the advisory board, determines that the use of the money in the
fund for that program will cause the state to be in noncompliance
with the state implementation plan to the extent that federal
action is likely; and
[(2) the commission finds that the reallocation of
some or all of the funding for the program would resolve the
noncompliance.
[(e) Under Subsection (d), the commission may not
reallocate more than the minimum amount of money necessary to
resolve the noncompliance.
[(e-1) Money allocated under Subsection (a) to a particular
program may be used for another program under the plan as determined
by the commission.
[(f)] Money in the fund may be used by the commission for
programs under Sections 386.051(b)(13), (b)(14), and (b-1) as may
be appropriated for those programs.
(c) [(g)] If the legislature does not specify amounts or
percentages from the total appropriation to the commission to be
allocated under Subsection (a) or (b) [(f)], the commission shall
determine the amounts of the total appropriation to be allocated
under each of those subsections, such that the total appropriation
is expended while maximizing emissions reductions.
(d) To supplement funding for air quality planning
activities in affected counties, $500,000 from the fund may be
deposited annually in the state treasury to the credit of the clean
air account created under Section 382.0622, if the commission
determines that the money is needed for that purpose.
(e) Money in the fund shall be allocated for administrative
costs incurred by the Energy Systems Laboratory at the Texas A&M
Engineering Experiment Station as may be appropriated by the
legislature.
(f) [(h)] Subject to the limitations outlined in this
section and any additional limitations placed on the use of the
appropriated funds, money allocated under this section to a
particular program may be used for another program under the plan as
determined by the commission, based on demand for grants for
eligible projects under particular programs after the commission
solicits projects to which to award grants according to the initial
allocation provisions of this section.
SECTION 19. Section 390.002, Health and Safety Code, is
amended by amending Subsection (b) and adding Subsection (c) to
read as follows:
(b) Projects that may be considered for a grant under the
program include:
(1) diesel oxidation catalysts for school buses built
before 1994;
(2) diesel particulate filters for school buses built
from 1994 to 1998;
(3) the purchase and use of emission-reducing add-on
equipment for school buses, including devices that reduce crankcase
emissions;
(4) the use of qualifying fuel; [and]
(5) other technologies that the commission finds will
bring about significant emissions reductions; and
(6) replacement of a school bus that is of model year
2006 or earlier.
(c) The commission may modify the model year requirements
under Subsection (b) in order to best meet the goals of the program.
SECTION 20. Section 390.004, Health and Safety Code, is
amended by adding Subsections (c), (d), and (e) to read as follows:
(c) A school bus proposed for replacement must:
(1) be of model year 2006 or earlier;
(2) have been owned and operated by the applicant for
at least the two years before submission of the grant application;
(3) be in good operational condition; and
(4) be currently used on a regular, daily route to and
from a school.
(d) A school bus proposed for purchase to replace a school
bus described by Subsection (c) must be of the current model year or
the year before the current model year at the time of submission of
the grant application.
(e) The commission may modify the model year requirement
under Subsection (c)(1) in order to best meet the goals of the
program.
SECTION 21. Section 390.005, Health and Safety Code, is
amended to read as follows:
Sec. 390.005. RESTRICTION ON USE OF GRANT. (a) A recipient
of a grant under this chapter shall use the grant to pay the
incremental costs of the project for which the grant is made, which
may include 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. The commission may establish limits on
the eligible grant amounts and the percentage of incremental costs
that may be reimbursed under the grant.
(b) A school bus acquired to replace an existing school bus
must be purchased and the grant recipient must agree to own and
operate the school bus on a regular, daily route to and from a
school for at least five years after a start date established by the
commission, based on the date the commission accepts documentation
of the destruction of the school bus being replaced.
(c) A school bus replaced under the program must be
permanently removed from operation by destroying the engine and
scrapping the bus after the purchase of the new bus in accordance
with criteria established by the commission.
SECTION 22. Section 390.006, Health and Safety Code, is
amended to read as follows:
Sec. 390.006. EXPIRATION. This chapter expires August 31,
2025 [2019].
SECTION 23. 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; and
(4) electricity storage projects that improve grid
reliability and air quality by reducing transmission congestion.
SECTION 24. Section 391.102(f), Health and Safety Code, is
amended to read as follows:
(f) In reviewing a grant application under this chapter
[coordinating interagency application review procedures], the
commission may [shall]:
(1) solicit review and comments from:
(A) the comptroller to assess:
(i) the financial stability of the
applicant;
(ii) the economic benefits and job creation
potential associated with the project; and
(iii) any other information related to the
duties of that office;
(B) the Public Utility Commission of Texas to
assess:
(i) the reliability of the proposed
technology;
(ii) the feasibility and
cost-effectiveness of electric transmission associated with the
project; and
(iii) any other information related to the
duties of that agency; and
(C) the Railroad Commission of Texas to assess:
(i) the availability and cost of the fuel
involved with the project; and
(ii) any other information related to the
duties of that agency; and
(2) consider the comments received under Subdivision
(1) in the commission's grant award decision process[; and
[(3) as part of the report required by Section
391.104, justify awards made to projects that have been negatively
reviewed by agencies under Subdivision (1)].
SECTION 25. Section 391.104, Health and Safety Code, is
amended to read as follows:
Sec. 391.104. REPORTING REQUIREMENTS. The commission
[annually] shall include in the biennial plan report required by
Section 386.057(b) information [prepare a report] that summarizes
the applications received and grants awarded in the preceding
biennium [year]. Preparation of the information for the report may
[must] include the participation of any [the] state agency
[agencies] involved in the review of applications under Section
391.102, if the commission determines participation of the agency
is needed.
SECTION 26. 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 27. Section 391.304, Health and Safety Code, is
amended to read as follows:
Sec. 391.304. EXPIRATION. This chapter expires August 31,
2025 [2019].
SECTION 28. Sections 392.001(1), (6), and (7), Health and
Safety Code, are 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, or propane[, or a
mixture of fuels containing at least 85 percent methanol by
volume].
(6) "Light-duty motor vehicle" means a motor vehicle
with a gross vehicle weight rating of less than 10,000 pounds [has
the meaning assigned by Section 386.151].
(7) "Motor vehicle" means a self-propelled device
designed for transporting persons or property on a public highway
that is required to be registered under Chapter 502, Transportation
Code [has the meaning assigned by Section 386.151].
SECTION 29. 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 the vehicle:
(1) is a new on-road vehicle purchased by an entity
during the eligibility period established by the commission;
(2) [calendar year the entity purchases a new on-road
vehicle that:
[(1)] is certified to current federal emissions
standards;
(3) [(2)] replaces a diesel-powered on-road vehicle
of the same weight classification and use; and
(4) [(3)] is a hybrid vehicle or fueled by an
alternative fuel.
SECTION 30. 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 31. 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 32. Section 392.008, Health and Safety Code, is
amended to read as follows:
Sec. 392.008. EXPIRATION. This chapter expires August 31,
2025 [2017].
SECTION 33. 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 electricity, including truck
stop electrification or high-capacity batteries to reduce truck
idling [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); 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 34. 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 35. 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 award grants under the program
through a competitive application selection process to offset a
portion of the eligible costs.
SECTION 36. 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) Except as otherwise provided by this subsection, to [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]. An entity may apply for and is eligible to
receive a grant for an alternative fueling facility that is not
accessible and available to the public with commission approval.
(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 37. 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 38. 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 39. Section 393.007, Health and Safety Code, is
amended to read as follows:
Sec. 393.007. EXPIRATION. This chapter expires August 31,
2025 [2018].
SECTION 40. Section 394.001, Health and Safety Code, is
amended by amending Subdivisions (1), (4), (5), and (7) and adding
Subdivision (1-a) to read as follows:
(1) "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
["Advisory board" means the Texas Emissions Reduction Plan Advisory
Board].
(1-a) "Clean transportation triangle" has the meaning
assigned by Section 393.001.
(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].
(7) "Motor vehicle" has the meaning assigned by
Section 392.001 [386.151].
SECTION 41. 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 42. 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 43. 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 44. 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 45. 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) meet or exceed [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 46. Section 394.012, Health and Safety Code, is
amended to read as follows:
Sec. 394.012. EXPIRATION. This chapter expires August 31,
2025 [2017].
SECTION 47. Section 151.0515(d), Tax Code, is amended to
read as follows:
(d) This section expires August 31, 2025 [2019].
SECTION 48. Section 152.0215(c), Tax Code, is amended to
read as follows:
(c) This section expires August 31, 2025 [2019].
SECTION 49. Section 501.138(b-3), Transportation Code, is
amended to read as follows:
(b-3) This subsection and Subsection (b-2) expire August
31, 2025 [2019].
SECTION 50. Section 502.358(c), Transportation Code, is
amended to read as follows:
(c) This section expires August 31, 2025 [2019].
SECTION 51. The heading to Section 548.5055, Transportation
Code, is amended to read as follows:
Sec. 548.5055. TEXAS EMISSIONS [EMISSION] REDUCTION PLAN
FEE.
SECTION 52. Sections 548.5055(b) and (c), Transportation
Code, are amended to read as follows:
(b) The department shall remit fees collected under this
section to the comptroller at the time and in the manner prescribed
by the comptroller for deposit in the Texas emissions [emission]
reduction plan fund.
(c) This section expires August 31, 2025 [2019].
SECTION 53. Sections 386.112, 386.113, 386.114, 386.115,
386.117(e), 391.302, 394.009, 394.010, and 394.011, Health and
Safety Code, are repealed.
SECTION 54. 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 55. (a) Not later than December 31, 2017, the Texas
Commission on Environmental Quality shall post on the commission's
Internet website the information required by Sections
386.102(e)(4)(A) and 386.117(g)(1), Health and Safety Code, as
added by this Act.
(b) As soon as practicable after December 31, 2017, the
Texas Commission on Environmental Quality shall implement the
methods required by Sections 386.102(e)(4)(B) and 386.117(g)(2),
Health and Safety Code, as added by this Act.
SECTION 56. This Act takes effect August 30, 2017.