Bill Text: TX HB4472 | 2021-2022 | 87th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the Texas emissions reduction plan.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2021-06-18 - Effective on 9/1/21 [HB4472 Detail]
Download: Texas-2021-HB4472-Comm_Sub.html
Bill Title: Relating to the Texas emissions reduction plan.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2021-06-18 - Effective on 9/1/21 [HB4472 Detail]
Download: Texas-2021-HB4472-Comm_Sub.html
87R23716 TYPED | |||
By: Landgraf | H.B. No. 4472 | ||
Substitute the following for H.B. No. 4472: | |||
By: Dominguez | C.S.H.B. No. 4472 |
|
||
|
||
relating to 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); [ |
||
(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); | ||
(20) fee-based contracts entered into under the | ||
program established under Section 386.058; and | ||
(21) the energy efficiency loan guarantee program | ||
established under Section 388.013. | ||
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 386.104(c) and (c-1), Health and Safety | ||
Code, are amended to read as follows: | ||
(c) Except as otherwise provided by this subsection, for a | ||
proposed project as described by Section 386.102(b), [ |
||
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 set the minimum percentage | ||
of vehicle miles traveled or hours of operation required to take | ||
place in a nonattainment area or affected county at a percentage and | ||
for a period that is different from the percentage and period | ||
specified by this subsection, provided that the commission may not | ||
set the minimum percentage at a level that is less than 55 percent. | ||
The commission may 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. | ||
(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 percentage [ |
||
over the lifetime of the project, as determined by the commission, | ||
to meet the cost-effectiveness requirements of Section 386.105. | ||
The percentage determined by the commission under this subsection | ||
may not be less than 55 percent. | ||
SECTION 4. Section 386.154(d), Health and Safety Code, is | ||
amended to read as follows: | ||
(f) A new light-duty motor vehicle powered by an electric | ||
drive is eligible for a $750 incentive if the vehicle: | ||
(1) is a motorcycle as defined by Section 541.201, | ||
Transportation Code; | ||
(2) was manufactured for use primarily on public | ||
streets, roads, and highways; | ||
(3) has not been modified from the original | ||
manufacturer's specifications; | ||
(4) has a maximum speed capability of at least 55 miles | ||
per hour; | ||
(5) is propelled to a significant extent by an | ||
electric motor that draws electricity from a hydrogen fuel cell or | ||
from a battery that: | ||
(A) has a capacity of not less than four kilowatt | ||
hours; and | ||
(B) is capable of being recharged from an | ||
external source of electricity; | ||
(6) was acquired on or after September 1, 2013, or a | ||
later date as established by the commission, by the person applying | ||
for the incentive under this subsection and for use or lease by that | ||
person and not for resale; and | ||
(7) is not a motor-assisted scooter or pocket bike or | ||
minimotorbike as those terms are defined by Section 551.351, | ||
Transportation Code. | ||
(g) The incentive under Subsection (g) is limited to 500 | ||
vehicles for each state fiscal biennium. | ||
SECTION 5. 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 per | ||
fiscal year as follows: | ||
(1) $3 million [ |
||
school bus program under Chapter 390; | ||
(2) $5 million [ |
||
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) $4 million [ |
||
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) $8 million [ |
||
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 [ |
||
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) $5 million [ |
||
commission for the seaport and rail yard areas emissions reduction | ||
program established under Subchapter D-1; | ||
(11) $4 million [ |
||
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; [ |
||
(14) not more than $10 million may be used by the | ||
commission for the purchase, maintenance, upgrade, and operation of | ||
air monitoring equipment, including data analysis, to be used in | ||
nonattainment areas and affected counties; | ||
(15) not more than $10 million may be used by the | ||
commission for fee-based contracts entered into under the program | ||
established under Section 386.058 | ||
(16) not more than $5 million may be allocated for the | ||
energy efficiency loan guarantee program established under Section | ||
388.013; and | ||
(17) 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) funding research at the Texas A&M | ||
Transportation Institute to determine: | ||
(1) the cost effectiveness of existing emissions | ||
reduction programs; and | ||
(2) cost effective programs not currently authorized | ||
to receive program funding that would improve the emissions | ||
reduction capabilities of the program | ||
(f) Not more than $5 [ |
||
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. | ||
(h) Subject to the limitations outlined in this section, | ||
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. [ |
||
SECTION 6. Chapter 388, Health and Safety Code, is amended | ||
by adding Section 388.013 to read as follows: | ||
Sec. 388.013. ENERGY EFFICIENCY LOAN GUARANTEE PROGRAM. | ||
(a) The comptroller and the State Energy Conservation Office by | ||
rule shall establish and administer a program that issues or | ||
guarantees loans to be used for improvements that increase the | ||
energy efficiency of residences that are not newly constructed. | ||
(b) Rules adopted under this section must establish | ||
eligibility requirements for receipt of a loan issued or guaranteed | ||
under this section, including emissions reduction | ||
cost-effectiveness criteria with preference given to nonattainment | ||
areas or affected counties. | ||
(c) The State Energy Conservation Office annually shall | ||
submit to the commission and the laboratory a report that: | ||
(1) evaluates the effectiveness of the program | ||
established under this section; and | ||
(2) quantifies energy savings and emissions | ||
reductions as a result of this program for consideration in the | ||
state implementation plan for emissions reduction credit. | ||
SECTION 7. Section 389.002, Health and Safety Code, is | ||
amended to read as follows: | ||
Sec. 389.002. USE OF CERTAIN INFORMATION FOR FEDERAL | ||
RECOGNITION OF EMISSIONS REDUCTIONS. The commission, using | ||
information derived from the reports to the commission under | ||
Sections 386.205, 388.003(e), [ |
||
take all appropriate and necessary actions so that emissions | ||
reductions achieved by means of activities under Chapters 386 and | ||
388 are credited by the United States Environmental Protection | ||
Agency to the appropriate emissions reduction objectives in the | ||
state implementation plan. | ||
SECTION 8. 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 sources; | ||
(3) 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; | ||
(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; or | ||
(C) the installation of systems that reduce | ||
flaring emissions and other site emissions [ |
||
(4) 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. | ||
SECTION 9. 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; | ||
(3) include the use of solar, wind, or other renewable | ||
energy sources; [ |
||
(4) recover waste heat from the combustion of natural | ||
resources and use the heat to generate electricity; or | ||
(5) reduce flaring emissions and other site emissions. | ||
SECTION 10. Section 391.301, Health and Safety Code, is | ||
amended to read as follows: | ||
Sec. 391.301. RESTRICTION ON USE OF GRANT. A recipient of a | ||
grant under this chapter must use the grant to pay the incremental | ||
costs of the purchase, lease, or [ |
||
for which the grant is made, which may include reasonable and | ||
necessary expenses for the labor needed to install | ||
emissions-reducing equipment. The recipient may [ |
||
grant for the costs of operating and maintaining the | ||
emissions-reducing equipment. | ||
SECTION 11. Section 394.003, Health and Safety Code, is | ||
amended by amending Subsection (a) and adding Subsection (c) 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 the entity: | ||
(1) purchased, leased, or otherwise commercially | ||
financed the vehicle as an [ |
||
medium-duty motor vehicle that: | ||
(A) is a new natural gas vehicle or, subject to | ||
Subsection (c), a used natural gas vehicle; | ||
(B) is certified to the appropriate current | ||
federal emissions standards as determined by the commission; and | ||
(C) replaces an on-road heavy-duty or | ||
medium-duty motor vehicle of the same weight classification and | ||
use; or | ||
(2) repowered the on-road motor vehicle to a natural | ||
gas vehicle powered by a natural gas engine that is certified to the | ||
appropriate current federal emissions standards as determined by | ||
the commission. | ||
(c) A used natural gas vehicle that is proposed to replace | ||
an on-road heavy-duty or medium-duty motor vehicle must be of model | ||
year 2017 or later, provided that the model year may not be more | ||
than six years older than the current model year at the time of the | ||
submission of the grant application. | ||
SECTION 12. Section 394.005(b), Health and Safety Code, is | ||
amended to read as follows: | ||
(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 qualifying | ||
[ |
||
(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 two years of remaining useful life, as determined in | ||
accordance with criteria established by the commission; | ||
(B) replace a heavy-duty or medium-duty motor | ||
vehicle that: | ||
(i) is owned by the applicant; | ||
(ii) is an on-road vehicle that has been: | ||
(a) owned, leased, or otherwise | ||
commercially financed and operated in Texas as a fleet vehicle for | ||
at least the two years immediately preceding the submission of a | ||
grant application; and | ||
(b) registered in a county located in | ||
the clean transportation zone for at least the two years | ||
immediately preceding the submission of a grant application; and | ||
(iii) otherwise satisfies the mileage, | ||
usage, and useful life requirements established under Paragraph (A) | ||
as determined by documentation associated with the vehicle; or | ||
(C) 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 two years of remaining useful life, as | ||
determined in accordance with criteria established by the | ||
commission. | ||
SECTION 13. Section 501.138, Transportation Code, is | ||
amended by amending Subsections (b-1), (b-2), and (b-3) and adding | ||
Subsection (b-4) to read as follows: | ||
(b-1) Except as provided by Subsection (b-4), fees [ |
||
collected under Subsection (b) to be sent to the comptroller shall | ||
be deposited to the credit of the Texas [ |
||
fund. | ||
(b-2) The comptroller shall establish a record of the amount | ||
of the fees deposited to the credit of the Texas emissions reduction | ||
plan fund [ |
||
fifth workday of each month, the Texas Department of Transportation | ||
shall remit to the comptroller for deposit to the credit of the | ||
Texas Mobility Fund [ |
||
money equal to the amount of the fees deposited by the comptroller | ||
to the credit of the Texas emissions reduction plan fund [ |
||
Department of Transportation shall use for remittance to the | ||
comptroller as required by this subsection money in the state | ||
highway fund that is not required to be used for a purpose specified | ||
by Section 7-a, Article VIII, Texas Constitution, and may not use | ||
for that remittance money received by this state under the | ||
congestion mitigation and air quality improvement program | ||
established under 23 U.S.C. Section 149. | ||
(b-3) This subsection and Subsections (b-1) and | ||
[ |
||
biennium during which the Texas Commission on Environmental Quality | ||
publishes in the Texas Register the notice required by Section | ||
382.037, Health and Safety Code. | ||
(b-4) Fees collected under Subsection (b) to be sent to the | ||
comptroller shall be deposited to the credit of the Texas Mobility | ||
Fund if the fees are collected on or after the last day of the state | ||
fiscal biennium during which the Texas Commission on Environmental | ||
Quality publishes in the Texas Register the notice required by | ||
Section 382.037, Health and Safety Code. | ||
SECTION 14. 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 15. The change in law made by this Act to Section | ||
501.138, Transportation Code, applies only to a fee collected on or | ||
after the effective date of this Act. A fee collected before the | ||
effective date of this Act is governed by the law in effect when the | ||
fee was collected, and the former law is continued in effect for | ||
that purpose. | ||
SECTION 16. This Act takes effect September 1, 2021. |