87R23596 JXC-D
	By: Deshotel, Guillen	H.B. No. 4120
	Substitute the following for H.B. No. 4120:
	By:  Paddie	C.S.H.B. No. 4120

	A BILL TO BE ENTITLED
	AN ACT
	relating to the efficient use and generation of electricity by
	public schools.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 390.002(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)  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;
	(5)  other technologies that the commission finds will
	bring about significant emissions reductions; [and]
	(6)  the replacement or conversion of a [pre-2007 model
	year] school bus eligible for replacement or conversion under
	Section 390.004; and
	(7)  the installation of charging infrastructure for
	electric school buses.
	SECTION 2.  Section 390.003, Health and Safety Code, is
	amended by adding Subsection (a-1) to read as follows:
	(a-1)  A private entity that leases school buses to a school
	district or provides school bus services or supporting
	infrastructure to a school district by contract may apply for and
	receive a grant under the program.
	SECTION 3.  Section 390.004, Health and Safety Code, is
	amended by amending Subsections (a), (c), and (d) and adding
	Subsections (a-1) and (a-2) to read as follows:
	(a)  The commission by rule shall establish criteria for
	setting priorities for projects eligible to receive grants under
	this chapter. Except as provided by Subsection (a-1), the [The]
	commission shall review and may modify the criteria and priorities
	as appropriate.
	(a-1)  The criteria must prioritize projects that achieve
	the greatest reductions in diesel exhaust, especially particulate
	matter.
	(a-2)  The commission shall ensure that at least 75 percent
	of the money issued for grants under this chapter is issued for
	projects to purchase electric buses or to convert diesel buses into
	electric buses.
	(c)  A school bus proposed for replacement must:
	(1)  be of model year 2006 or earlier if the bus will be
	replaced with a combustion engine bus;
	(1-a)  be of a model year that is at least six years
	older than the year in which the grant application is submitted or
	have an odometer reading at least 150,000 miles if the bus will be
	replaced with an electric bus;
	(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
	[pre-2007 model year] 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.
	SECTION 4.  Section 390.005(a), Health and Safety Code, is
	amended to read as follows:
	(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 or vehicle charging infrastructure.
	The recipient may not use the grant to pay the recipient's
	administrative expenses.
	SECTION 5.  Chapter 35, Utilities Code, is amended by adding
	Subchapter F to read as follows:
	SUBCHAPTER F. PUBLIC SCHOOLS
	Sec. 35.201.  DEFINITIONS. In this subchapter:
	(1)  "Distributed renewable generation" has the
	meaning assigned by Section 39.916.
	(2)  "Interconnection" means the right of a person to
	physically connect an energy source and related equipment to an
	electricity distribution system and the technical requirements,
	rules, or processes required for the connection.
	(3)  "School energy source" means a source that is:
	(A)  on-site distributed renewable generation,
	energy storage, or an electric school bus; and
	(B)  owned, leased, or used by a school district
	or open-enrollment charter school.
	Sec. 35.202.  USE OF SCHOOL ENERGY SOURCES. (a) A school
	district or open-enrollment charter school that installs electric
	vehicle charging equipment shall contract with an electric
	cooperative, an electric utility, a municipally owned utility, or a
	transmission and distribution utility to:
	(1)  install make-ready infrastructure on the
	cooperative's or utility's side of the meter required to facilitate
	interconnection of the electric vehicle charging equipment,
	including a new service connection, transformer, conductor,
	connector, conduit, or meter; and
	(2)  provide any necessary construction on the
	cooperative's or utility's side of the meter to comply with local
	regulations related to the charging equipment.
	(b)  Electric cooperatives, electric utilities, municipally
	owned utilities, and transmission and distribution utilities shall
	use their best efforts to:
	(1)  encourage and facilitate interconnection
	processes for school energy sources; and
	(2)  provide information about distribution system
	capacity and needs to a school district or open-enrollment charter
	school, or a person acting on behalf of a school district or
	open-enrollment charter school, to facilitate interconnection of
	school energy sources.
	(c)  A school district or open-enrollment charter school, or
	a person acting on behalf of a school district or open-enrollment
	charter school, may:
	(1)  provide distribution system grid services,
	including local capacity relief, voltage and VAR support, and local
	frequency control, using a school energy source or a combination of
	school energy sources; and
	(2)  receive appropriate compensation for distribution
	grid services provided under Subdivision (1).
	(d)  The independent organization certified under Section
	39.151 for the ERCOT power region shall adopt rules or protocols to
	allow a school district or open-enrollment charter school, or a
	person acting on behalf of a school district or open-enrollment
	charter school, to sell energy and ancillary services from school
	energy sources in the wholesale market without registering as a
	power generation company.
	SECTION 6.  Subchapter H, Chapter 36, Utilities Code, is
	amended by adding Section 36.3531 to read as follows:
	Sec. 36.3531.  TIME-OF-USE RATES FOR PUBLIC SCHOOLS. (a)
	Notwithstanding any other provision of this title, each electric
	utility that provides electric service to a retail customer shall
	offer to a school district or open-enrollment charter school served
	by the electric utility time-of-use rates to promote efficient:
	(1)  charging of electric school buses; and
	(2)  energy use in school buildings.
	(b)  Notwithstanding any other provision of this title, each
	transmission and distribution utility in the ERCOT power region
	shall offer to any retail electric provider in its service area that
	serves a school district or open-enrollment charter school a rate
	structure that allows the retail electric provider to offer
	time-of-use rates to the district or school to promote efficient:
	(1)  charging of electric school buses; and
	(2)  energy use for school buildings.
	SECTION 7.  The changes in law made by this Act to Chapter
	390, 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 8.  The changes in law made by this Act to Section
	36.3531, Utilities Code, as added by this Act, do not require an
	electric utility to initiate a new ratemaking proceeding. An
	electric utility shall comply with Section 36.3531, Utilities Code,
	as added by this Act, beginning with the electric utility's first
	ratemaking proceeding that begins after the effective date of this
	Act.
	SECTION 9.  This Act takes effect September 1, 2021.