Bill Text: TX HB2938 | 2011-2012 | 82nd Legislature | Introduced
Bill Title: Relating to a grant program for certain natural gas motor vehicles.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-04-20 - Companion considered in lieu of in committee [HB2938 Detail]
Download: Texas-2011-HB2938-Introduced.html
82R10629 JAM-F | ||
By: Strama | H.B. No. 2938 |
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relating to a grant program for certain natural gas motor vehicles. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 386.252(a), Health and Safety Code, as | ||
amended by Chapters 1125 (H.B. 1796) and 1232 (S.B. 1759), Acts of | ||
the 81st Legislature, Regular Session, 2009, is reenacted and | ||
amended to read as follows: | ||
(a) Money in the fund may be used only to implement and | ||
administer programs established under the plan and shall be | ||
allocated as follows: | ||
(1) for the diesel emissions reduction incentive | ||
program, 87.5 percent of the money in the fund, of which: | ||
(A) not more than four percent may be used for the | ||
clean school bus program; | ||
(B) not more than 10 percent may be used for | ||
on-road diesel purchase or lease incentives; [ |
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(C) a specified amount may be used for the new | ||
technology implementation grant program, from which a defined | ||
amount may be set aside for electricity storage projects related to | ||
renewable energy; | ||
(D) five percent shall be used for the clean | ||
fleet program; | ||
(E) not less than 16 percent shall be used for the | ||
natural gas vehicle rebate program; and | ||
(F) not more than four percent may be used to | ||
provide grants for natural gas fueling stations under Section | ||
393.009; | ||
(2) for the new technology research and development | ||
program, nine percent of the money in the fund, of which: | ||
(A) up to $200,000 is allocated for a health | ||
effects study; | ||
(B) $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; | ||
(C) not less than 20 percent is to be allocated | ||
each year to support research related to air quality as provided by | ||
Section 387.010; and | ||
(D) the balance is allocated each year to the | ||
commission to be used to: | ||
(i) implement and administer the new | ||
technology research and development program for the purpose of | ||
identifying, testing, and evaluating new emissions-reducing | ||
technologies with potential for commercialization in this state and | ||
to facilitate their certification or verification; and | ||
(ii) contract with the Energy Systems | ||
Laboratory at the Texas Engineering Experiment Station for $216,000 | ||
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; and | ||
(3) two percent is allocated to the commission and 1.5 | ||
percent is allocated to the laboratory for administrative costs | ||
incurred by the commission and the laboratory. | ||
SECTION 2. Subtitle C, Title 5, Health and Safety Code, is | ||
amended by adding Chapter 393 to read as follows: | ||
CHAPTER 393. TEXAS NATURAL GAS VEHICLE GRANT PROGRAM | ||
Sec. 393.001. DEFINITIONS. In this chapter: | ||
(1) "Commission" means the Texas Commission on | ||
Environmental Quality. | ||
(2) "Executive director" means the executive director | ||
of the Texas Commission on Environmental Quality. | ||
(3) "Heavy-duty motor vehicle" means a motor vehicle | ||
with: | ||
(A) a gross vehicle weight rating of more than | ||
10,000 pounds; and | ||
(B) an engine certified to the United States | ||
Environmental Protection Agency's standards for heavy-duty | ||
engines. | ||
(4) "Incremental cost" has the meaning assigned by | ||
Section 386.001. | ||
(5) "Motor vehicle" has the meaning assigned by | ||
Section 386.151. | ||
(6) "Natural gas vehicle" means a motor vehicle that | ||
receives not less than 75 percent of its power from compressed or | ||
liquefied natural gas. | ||
(7) "Program" means the Texas natural gas vehicle | ||
grant program established under this chapter. | ||
Sec. 393.002. PROGRAM. The commission shall establish and | ||
administer the Texas natural gas vehicle grant program to encourage | ||
an entity that has a heavy-duty motor vehicle to repower the vehicle | ||
with a natural gas engine or replace the vehicle with a natural gas | ||
vehicle. Under the program, the commission shall provide grants | ||
for eligible heavy-duty motor vehicles to offset the incremental | ||
cost for the entity of repowering or replacing the heavy-duty motor | ||
vehicle. | ||
Sec. 393.003. QUALIFYING VEHICLES. (a) A vehicle is a | ||
qualifying vehicle that may be considered for a grant under the | ||
program if during the calendar year the entity: | ||
(1) purchased or leased the vehicle as a new on-road | ||
heavy-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 motor vehicle | ||
of the same weight classification and use; and | ||
(D) is powered by an engine certified to emit not | ||
more than 0.2 grams of nitrogen oxides per brake horsepower hour; or | ||
(2) repowered the on-road heavy-duty 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 certified to emit not more than 0.2 grams | ||
of nitrogen oxides per brake horsepower hour. | ||
(b) A heavy-duty motor vehicle is not a qualifying vehicle | ||
if the vehicle or the natural gas engine powering the vehicle: | ||
(1) has been used as a qualifying vehicle to receive a | ||
grant under this chapter for a previous reporting period or by | ||
another entity; or | ||
(2) has received a similar grant or tax credit in | ||
another jurisdiction if that grant or tax credit program is relied | ||
on for credit in the state implementation plan. | ||
Sec. 393.004. APPLICATION FOR GRANT. (a) Only an entity | ||
operating in this state that operates a heavy-duty motor vehicle | ||
may apply for and receive a grant under this chapter. | ||
(b) An application for a grant under this chapter must be | ||
made on a form provided by the commission and must contain the | ||
information required by the commission. | ||
(c) The commission, after consulting stakeholders, shall: | ||
(1) simplify the application form; and | ||
(2) minimize, to the extent feasible, documentation | ||
required for an application. | ||
Sec. 393.005. ELIGIBILITY FOR GRANTS. (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. | ||
(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 heavy-duty 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 motor vehicle that: | ||
(i) is an on-road vehicle that has been | ||
owned or leased and registered and operated by the applicant in | ||
Texas for at least the two years immediately preceding the | ||
submission of a grant application; | ||
(ii) satisfies any minimum average annual | ||
mileage or fuel usage requirements established by the commission; | ||
(iii) satisfies any minimum percentage of | ||
annual usage requirements established by the commission; and | ||
(iv) is in operating condition and has at | ||
least two years of remaining useful life, as determined in | ||
accordance with criteria established by the commission; or | ||
(B) be a heavy-duty motor vehicle repowered with | ||
a natural gas engine that: | ||
(i) is installed in an on-road vehicle that | ||
has been owned or leased 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) at the time of the vehicle's repowering | ||
with a natural gas engine, the vehicle was in operating condition | ||
and had at least two years of remaining useful life, as determined | ||
in accordance with criteria established by the commission. | ||
(c) As a condition of receiving a grant, the qualifying | ||
vehicle must be continuously owned or leased and registered and | ||
operated in the state by the grant recipient until the earlier of | ||
the fourth anniversary of the date of reimbursement of the | ||
grant-funded expenses or until the date the vehicle has been in | ||
operation for 400,000 miles. 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 counties any part of | ||
which are included in the area described by Section 393.010(a). | ||
(d) The commission shall include and enforce the usage | ||
provisions in the grant contracts. The commission shall monitor | ||
compliance with the ownership, leasing, and usage requirements, | ||
including submission of reports on at least an annual basis, or more | ||
frequently as determined by the commission. | ||
(e) The commission by contract may require the return of all | ||
or a portion of grant funds for a grant recipient's noncompliance | ||
with the usage and percentage of use requirements under this | ||
section. | ||
(f) A heavy-duty motor vehicle or engine replaced under this | ||
program must be rendered permanently inoperable by crushing the | ||
vehicle, by making a hole in the engine block and permanently | ||
destroying the frame of the vehicle, or by another method approved | ||
by the commission that permanently removes the vehicle from | ||
operation in this state. The commission shall establish criteria | ||
for ensuring the permanent destruction of the engine and vehicle. | ||
The commission shall enforce the destruction requirements. | ||
(g) The commission shall establish baseline emission levels | ||
for emissions of nitrogen oxides for on-road heavy-duty motor | ||
vehicles being replaced 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. | ||
(h) Mileage or fuel use requirements established by the | ||
commission under Subsection (b)(2)(A)(ii) may differ by vehicle | ||
weight categories and type of use. | ||
(i) The executive director may waive the requirements of | ||
Subsection (b)(2)(A)(i) on a finding of good cause, including short | ||
lapses in registration or operation due to economic conditions, | ||
seasonal work, or other circumstances. | ||
Sec. 393.006. 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 for which the grant is made, which may | ||
include the initial cost of the natural gas vehicle or natural gas | ||
engine 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. | ||
Sec. 393.007. AMOUNT OF GRANT. (a) The commission shall | ||
develop a grant schedule that: | ||
(1) assigns a standardized grant in an amount between | ||
60 and 90 percent of the incremental cost of a natural gas vehicle | ||
purchase, lease, or repowering; and | ||
(2) is based on: | ||
(A) the certified emission level of nitrogen | ||
oxides, or other pollutants as determined by the commission, of the | ||
engine powering the natural gas vehicle; | ||
(B) the overall emissions reduction achieved by | ||
the natural gas vehicle; and | ||
(C) the usage of the natural gas vehicle. | ||
(b) Not less than 50 percent of the total amount of grants | ||
awarded under this chapter for the purchase and repowering of motor | ||
vehicles must be awarded to motor vehicles with a gross vehicle | ||
weight rating of at least 33,001 pounds. The minimum grant | ||
requirement under this subsection does not apply if the commission | ||
does not receive enough grant applications to satisfy the | ||
requirement for motor vehicles described by this subsection that | ||
are eligible to receive a grant under this chapter. | ||
Sec. 393.008. GRANT PROCEDURES. (a) The commission shall | ||
adopt procedures for: | ||
(1) awarding grants under this chapter 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 adopted under this section must: | ||
(1) provide for a listing compiled by the commission | ||
of pre-approved natural gas vehicles powered by natural gas engines | ||
certified to emit not more than 0.2 grams of nitrogen oxides per | ||
brake horsepower hour; | ||
(2) 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 rebate amount for each | ||
qualifying vehicle under Section 393.007; | ||
(4) allow for processing rebates on an ongoing | ||
first-come, first-served basis; | ||
(5) provide for contracts between the commission and | ||
participating dealers under Section 393.009; | ||
(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; | ||
(8) provide for payment not later than the 30th day | ||
after the date a grant is approved; | ||
(9) provide for application submission and | ||
application status checks to be made over the Internet; and | ||
(10) consolidate, simplify, and reduce the | ||
administrative work for applicants and the commission associated | ||
with grant application, contracting, reimbursement, and reporting | ||
requirements. | ||
(c) The commission, or its designee, shall oversee the grant | ||
process and is responsible for final approval of any grant. | ||
(d) Grant recipients are responsible for meeting all grant | ||
conditions, including reporting and monitoring as required by the | ||
commission through the grant contract. | ||
Sec. 393.009. PARTICIPATING DEALERS. (a) In this section, | ||
"participating dealer" means a person who: | ||
(1) sells or leases on-road heavy-duty natural gas | ||
vehicles or heavy-duty natural gas engines; and | ||
(2) has satisfied all requirements established by the | ||
commission for participation in the program as a dealer. | ||
(b) A participating dealer must agree to the terms and | ||
conditions of a standardized contract developed by the commission. | ||
(c) A participating dealer shall: | ||
(1) provide information regarding natural gas vehicle | ||
grants to fleet operators; | ||
(2) assist an applicant who purchases or leases a | ||
natural gas vehicle or engine from the dealer with the completion of | ||
the application; and | ||
(3) submit completed applications and documentation | ||
to the commission on behalf of an applicant who purchases or leases | ||
a natural gas vehicle or engine from the dealer. | ||
(d) A participating dealer may not approve a grant. | ||
(e) The commission shall: | ||
(1) maintain and make available to the public online a | ||
list of all qualified dealers; and | ||
(2) establish requirements for participation in the | ||
program by sellers of on-road heavy-duty natural gas vehicles and | ||
natural gas engines. | ||
Sec. 393.010. CLEAN TRANSPORTATION TRIANGLE. (a) To | ||
ensure that natural gas vehicles purchased or leased or repowered | ||
under the program have access to fuel, and to build the foundation | ||
for a self-sustaining market for natural gas vehicles in Texas, the | ||
commission shall award grants to support the development of a | ||
network of natural gas vehicle fueling stations along the | ||
interstate highways between Houston, San Antonio, and the | ||
Dallas-Fort Worth area. In awarding the grants, the commission | ||
shall provide for: | ||
(1) strategically placed natural gas vehicle fueling | ||
stations in and between the Houston, San Antonio, and Dallas-Fort | ||
Worth areas to enable a natural gas vehicle to travel along that | ||
triangular area relying solely on natural gas fuel; | ||
(2) grants to be dispersed through a competitive | ||
bidding process to offset a portion of the cost of installation of | ||
the natural gas dispensing equipment; | ||
(3) contracts that require the recipient stations to | ||
meet operational, maintenance, and reporting requirements as | ||
specified by the commission; and | ||
(4) a listing, to be maintained by the commission and | ||
made available to the public online, of all natural gas vehicle | ||
fueling stations that have received grant funding, including | ||
location and hours of operation. | ||
(b) The commission may not award more than three station | ||
grants to any entity. | ||
(c) Stations funded by grants under this section must be | ||
publicly accessible and located not more than three miles from an | ||
interstate highway system. The commission shall give preference | ||
to: | ||
(1) stations providing both liquefied natural gas and | ||
compressed natural gas at a single location; and | ||
(2) stations located not more than one mile from an | ||
interstate highway system. | ||
(d) To meet the goals of this section, the commission may | ||
solicit grant applications under this section for a new fueling | ||
station in a specific area or location. | ||
(e) Grants made under this section are not subject to the | ||
requirements of Sections 393.002 through 393.008. The commission | ||
shall develop an application package and review applications in | ||
accordance with Sections 386.110 and 386.111. | ||
(f) The commission, in consultation with the natural gas | ||
industry, shall determine the most efficient use of funding for the | ||
station grants under this section to maximize the availability of | ||
natural gas fueling stations. | ||
Sec. 393.011. ADDITIONAL INCENTIVES FOR NATURAL GAS | ||
VEHICLES. The commission shall work with the Texas Department of | ||
Transportation and local transportation authorities to provide | ||
additional incentives for natural gas vehicles such as access to | ||
high occupancy vehicle lanes and preferred parking in urban areas. | ||
Sec. 393.012. ADMINISTRATION OF PROGRAM. The commission | ||
may contract with one or more entities for administration of the | ||
program. | ||
Sec. 393.013. EXPIRATION. This chapter expires August 31, | ||
2017. | ||
SECTION 3. The Texas Commission on Environmental Quality | ||
shall adopt rules and establish procedures under Chapter 393, | ||
Health and Safety Code, as added by this Act, as soon as practicable | ||
after the effective date of this Act. | ||
SECTION 4. To the extent of any conflict, this Act prevails | ||
over another Act of the 82nd Legislature, Regular Session, 2011, | ||
relating to nonsubstantive additions to and corrections in enacted | ||
codes. | ||
SECTION 5. This Act takes effect September 1, 2011. |