Bill Text: TX SB12 | 2015-2016 | 84th Legislature | Comm Sub
Bill Title: Relating to alternative fuel fleets of certain governmental entities, including funding for motor vehicles, infrastructure, and equipment.
Spectrum: Slight Partisan Bill (Republican 6-2)
Status: (Engrossed - Dead) 2015-05-19 - Committee report sent to Calendars [SB12 Detail]
Download: Texas-2015-SB12-Comm_Sub.html
84R29696 DDT-F | ||
By: Uresti, et al. | S.B. No. 12 | |
(Landgraf, Isaac, Meyer, Darby, Craddick, et al.) | ||
Substitute the following for S.B. No. 12: No. |
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relating to alternative fuel fleets of certain governmental | ||
entities, including funding for motor vehicles, infrastructure, | ||
and equipment. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sections 2158.004(a), (b), (c), and (d), | ||
Government Code, are amended to read as follows: | ||
(a) A state agency operating a fleet of more than 15 | ||
vehicles, excluding law enforcement and emergency vehicles, may not | ||
purchase or lease a motor vehicle unless that vehicle uses | ||
compressed natural gas, liquefied natural gas, liquefied petroleum | ||
gas, methanol or methanol/gasoline blends of 85 percent or greater, | ||
ethanol or ethanol/gasoline blends of 85 percent or greater, | ||
biodiesel or biodiesel/diesel blends of 20 percent or greater, | ||
hydrogen fuel cells, or electricity, including electricity to power | ||
a plug-in hybrid motor vehicle. | ||
(b) A state agency may obtain equipment or refueling | ||
facilities necessary to operate vehicles using compressed natural | ||
gas, liquefied natural gas, liquefied petroleum gas, methanol or | ||
methanol/gasoline blends of 85 percent or greater, ethanol or | ||
ethanol/gasoline blends of 85 percent or greater, biodiesel or | ||
biodiesel/diesel blends of 20 percent or greater, hydrogen fuel | ||
cells, or electricity, including electricity to power a plug-in | ||
hybrid motor vehicle: | ||
(1) by purchase or lease as authorized by law; | ||
(2) by gift or loan of the equipment or facilities; or | ||
(3) by gift or loan of the equipment or facilities or | ||
by another arrangement under a service contract for the supply of | ||
compressed natural gas, liquefied natural gas, liquefied petroleum | ||
gas, methanol or methanol/gasoline blends of 85 percent or greater, | ||
ethanol or ethanol/gasoline blends of 85 percent or greater, | ||
biodiesel or biodiesel/diesel blends of 20 percent or greater, | ||
hydrogen fuel cells, or electricity, including electricity to power | ||
a plug-in hybrid motor vehicle. | ||
(c) If the equipment or facilities are donated, loaned, or | ||
provided through another arrangement with the supplier of | ||
compressed natural gas, liquefied natural gas, liquefied petroleum | ||
gas, methanol or methanol/gasoline blends of 85 percent or greater, | ||
ethanol or ethanol/gasoline blends of 85 percent or greater, | ||
biodiesel or biodiesel/diesel blends of 20 percent or greater, | ||
hydrogen fuel cells, or electricity, including electricity to power | ||
a plug-in hybrid motor vehicle, the supplier is entitled to recoup | ||
its actual cost of donating, loaning, or providing the equipment or | ||
facilities through its fuel charges under the supply contract. | ||
(d) The commission may waive the requirements of this | ||
section for a state agency on receipt of certification supported by | ||
evidence acceptable to the commission that: | ||
(1) the agency's vehicles will be operating primarily | ||
in an area in which neither the agency nor a supplier has or can | ||
reasonably be expected to establish adequate refueling for | ||
compressed natural gas, liquefied natural gas, liquefied petroleum | ||
gas, methanol or methanol/gasoline blends of 85 percent or greater, | ||
ethanol or ethanol/gasoline blends of 85 percent or greater, | ||
biodiesel or biodiesel/diesel blends of 20 percent or greater, | ||
hydrogen fuel cells, or electricity, including electricity to power | ||
a plug-in hybrid motor vehicle; or | ||
(2) the agency is unable to obtain equipment or | ||
refueling facilities necessary to operate vehicles using | ||
compressed natural gas, liquefied natural gas, liquefied petroleum | ||
gas, methanol or methanol/gasoline blends of 85 percent or greater, | ||
ethanol or ethanol/gasoline blends of 85 percent or greater, | ||
biodiesel or biodiesel/diesel blends of 20 percent or greater, | ||
hydrogen fuel cells, or electricity, including electricity to power | ||
a plug-in hybrid motor vehicle, at a projected cost that is | ||
reasonably expected to be no greater than the net costs of continued | ||
use of conventional gasoline or diesel fuels, measured over the | ||
expected useful life of the equipment or facilities supplied. | ||
SECTION 2. Subchapter A, Chapter 2158, Government Code, is | ||
amended by adding Section 2158.0051 to read as follows: | ||
Sec. 2158.0051. ALTERNATIVE FUEL FLEETS. (a) It is the | ||
intent of this state that: | ||
(1) the vehicle fleet of a state agency that operates a | ||
fleet of more than 15 motor vehicles, subject to the availability of | ||
funds, shall be converted into or replaced with motor vehicles that | ||
use compressed natural gas, liquefied natural gas, liquefied | ||
petroleum gas, hydrogen fuel cells, or electricity, including fully | ||
electric vehicles and plug-in hybrid motor vehicles; | ||
(2) a county or municipality that operates a vehicle | ||
fleet of more than 15 motor vehicles is authorized, but is not | ||
required, to convert the fleet into or replace the fleet with motor | ||
vehicles that use compressed natural gas, liquefied natural gas, | ||
liquefied petroleum gas, hydrogen fuel cells, or electricity, | ||
including fully electric vehicles and plug-in hybrid motor | ||
vehicles; and | ||
(3) motor vehicles of a state agency, county, or | ||
municipality described by Subdivisions (1) and (2) that are capable | ||
of using fuels described by those subdivisions be primarily | ||
operated with those fuels rather than conventional gasoline or | ||
diesel fuels. | ||
(b) In complying with Subsection (a), a state agency to | ||
which this section applies shall prioritize: | ||
(1) the purchase or lease of new motor vehicles when | ||
replacing vehicles or adding vehicles to the fleet; | ||
(2) the purchase of new motor vehicles to replace | ||
vehicles that have the highest total mileage and do not use a fuel | ||
described by Subsection (a); | ||
(3) the conversion of motor vehicles that were driven | ||
the most miles during the previous biennium and do not use a fuel | ||
described by Subsection (a); and | ||
(4) to the extent feasible, obtaining, whether by | ||
conversion, purchase, or lease, motor vehicles that use compressed | ||
natural gas, liquefied natural gas, or liquefied petroleum gas. | ||
(c) Subsection (a)(1) does not apply to law enforcement or | ||
emergency vehicles. | ||
SECTION 3. Subtitle C, Title 5, Health and Safety Code, is | ||
amended by adding Chapter 395 to read as follows: | ||
CHAPTER 395. GOVERNMENTAL ALTERNATIVE FUEL FLEET GRANT PROGRAM | ||
Sec. 395.001. DEFINITIONS. In this chapter: | ||
(1) "Alternative fuel" means compressed natural gas, | ||
liquefied natural gas, liquefied petroleum gas, hydrogen fuel | ||
cells, or electricity, including electricity to power fully | ||
electric vehicles and plug-in hybrid motor vehicles. | ||
(2) "Commission" means the Texas Commission on | ||
Environmental Quality. | ||
(3) "Incremental cost" means the cost of a motor | ||
vehicle or the cost of purchasing or installing refueling | ||
infrastructure and equipment less a baseline cost that would | ||
otherwise be incurred by a grant recipient in the normal course of | ||
business. Incremental costs may include added lease or fuel costs | ||
as well as additional capital costs. | ||
(4) "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. | ||
(5) "Political subdivision" means a school district, | ||
junior college district, river authority, water district or other | ||
special district, or other political subdivision created under the | ||
constitution or a statute of this state, other than a county or | ||
municipality. | ||
(6) "Program" means the governmental alternative fuel | ||
fleet grant program established under this chapter. | ||
(7) "State agency" has the meaning assigned by Section | ||
2151.002, Government Code. | ||
Sec. 395.002. PROGRAM. (a) The commission shall establish | ||
and administer a governmental alternative fuel fleet grant program | ||
to assist an eligible state agency, county, municipality, or | ||
political subdivision in: | ||
(1) purchasing or leasing new motor vehicles that | ||
operate primarily on an alternative fuel; or | ||
(2) converting motor vehicles to operate primarily on | ||
an alternative fuel. | ||
(b) The program is funded under the Texas emissions | ||
reduction plan established under Chapter 386. | ||
(c) The program may provide a grant to a state agency, | ||
county, municipality, or political subdivision to: | ||
(1) purchase or lease a new motor vehicle described by | ||
Section 395.004; | ||
(2) convert a motor vehicle to operate primarily on an | ||
alternative fuel; or | ||
(3) purchase, lease, or install refueling | ||
infrastructure or equipment or procure refueling services as | ||
described by Section 395.005 to store and dispense alternative fuel | ||
needed for a motor vehicle described by Subdivision (1) or (2). | ||
Sec. 395.003. ELIGIBLE APPLICANTS. (a) A state agency, | ||
county, or municipality is eligible to apply for a grant under this | ||
program if the entity operates a fleet of more than 15 motor | ||
vehicles, excluding motor vehicles that are owned and operated by a | ||
private company or other third party under a contract with the | ||
entity. | ||
(b) A mass transit or school transportation provider or | ||
other broadly similar public entity established to provide public | ||
or school transportation services is eligible for a grant under | ||
this program. | ||
(c) If, on April 1 of an even-numbered year, the commission | ||
has awarded less than 75 percent of the total amount to be awarded | ||
in that fiscal year to eligible applicants under Subsections (a) | ||
and (b), a political subdivision is eligible to apply for a grant | ||
under the program during the remainder of that fiscal year. | ||
Sec. 395.004. MOTOR VEHICLE REQUIREMENTS. (a) A grant | ||
recipient may purchase or lease with money from a grant under the | ||
program a new motor vehicle that: | ||
(1) is originally manufactured to operate using one or | ||
more alternative fuels or is converted to operate using one or more | ||
alternative fuels before the first retail sale of the vehicle; and | ||
(2) has a dedicated system, dual-fuel system, or | ||
bi-fuel system with a United States Environmental Protection Agency | ||
rating of at least 75 miles per gallon equivalent or a 75-mile | ||
combined city and highway range. | ||
(b) A grant recipient may not use money from a grant under | ||
the program to replace a motor vehicle, transit bus, or school bus | ||
that operates on an alternative fuel unless the replacement vehicle | ||
produces fewer emissions and has greater fuel efficiency than the | ||
vehicle being replaced. | ||
Sec. 395.005. REFUELING INFRASTRUCTURE, EQUIPMENT, AND | ||
SERVICES. A grant recipient may purchase, lease, or install | ||
refueling infrastructure or equipment or procure refueling | ||
services with money from a grant under the program if: | ||
(1) the purchase, lease, installation, or procurement | ||
is made in conjunction with the purchase or lease of a motor vehicle | ||
as described by Section 395.004 or the conversion of a motor vehicle | ||
to operate primarily on an alternative fuel; | ||
(2) the grant recipient demonstrates that a refueling | ||
station that meets the needs of the recipient is not available | ||
within five miles of the location at which the recipient's vehicles | ||
are stored or primarily used; and | ||
(3) for the purchase or installation of refueling | ||
infrastructure or equipment, the infrastructure or equipment will | ||
be owned and operated by the grant recipient, and for the lease of | ||
refueling infrastructure or equipment or the procurement of | ||
refueling services, a third-party service provider engaged by the | ||
grant recipient will provide the infrastructure, equipment, or | ||
services. | ||
Sec. 395.006. ELIGIBLE COSTS. (a) A motor vehicle lease | ||
agreement paid for with money from a grant under the program must | ||
have a term of at least three years. | ||
(b) Refueling infrastructure or equipment purchased or | ||
installed with money from a grant under the program must be used | ||
specifically to store or dispense alternative fuel, as determined | ||
by the commission. | ||
(c) A lease of or service agreement for refueling | ||
infrastructure, equipment, or services paid for with money from a | ||
grant under the program must have a term of at least three years. | ||
Sec. 395.007. GRANT AMOUNTS. (a) The commission may | ||
establish standardized grant amounts based on the incremental costs | ||
associated with the purchase or lease of different categories of | ||
motor vehicles, including the type of fuel used, vehicle class, and | ||
other categories the commission considers appropriate. | ||
(b) In determining the incremental costs and setting the | ||
standardized grant amounts, the commission may consider the | ||
difference in cost between a new motor vehicle operated using | ||
conventional gasoline or diesel fuel and a new motor vehicle | ||
operated using alternative fuel. | ||
(c) The amount of a grant for the purchase or lease of a | ||
motor vehicle may not exceed the amount of the incremental cost of | ||
the purchase or lease. | ||
(d) The commission may establish grant amounts to reimburse | ||
the full cost of the purchase, lease, installation, or procurement | ||
of refueling infrastructure, equipment, or services or may | ||
establish criteria for reimbursing a percentage of the cost. | ||
(e) A grant under the program may be combined with funding | ||
from other sources, including other grant programs, except that a | ||
grant may not be combined with other funding or grants from the | ||
Texas emissions reduction plan. When combined with other funding | ||
sources, a grant may not exceed the total cost to the grant | ||
recipient. | ||
Sec. 395.008. AVAILABILITY OF EMISSIONS REDUCTION CREDITS. | ||
(a) A purchase, lease, or installation that uses money from a | ||
grant under the program may not be used for credit under a state or | ||
federal emissions reduction credit averaging, banking, or trading | ||
program. | ||
(b) An emissions reduction generated by a purchase or lease | ||
under this chapter: | ||
(1) may not be used as a marketable emissions | ||
reduction credit; and | ||
(2) may be used to demonstrate conformity with the | ||
state implementation plan. | ||
(c) 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 is not eligible for funding under the program unless: | ||
(1) the project includes the transfer of the | ||
reductions that would otherwise be marketable credits to the state | ||
implementation plan; and | ||
(2) the reductions are permanently retired. | ||
Sec. 395.009. USE OF GRANT MONEY BY COUNTY OR MUNICIPALITY. | ||
A county or municipality shall prioritize the actions listed in | ||
Sections 2158.0051(b)(1)-(4), Government Code, when using money | ||
from a grant under the program. | ||
Sec. 395.010. GRANT PROCEDURES AND CRITERIA. (a) The | ||
commission shall establish specific criteria and procedures in | ||
order to implement and administer the program, including the | ||
creation and provision of application forms and guidance on the | ||
application process. | ||
(b) The commission shall award a grant through a contract | ||
between the commission and the grant recipient. | ||
(b-1) The commission shall provide an online application | ||
process for the submission of all required application documents. | ||
(c) The commission may limit funding for a particular period | ||
according to priorities established by the commission, including | ||
limiting the availability of grants to specific entities, for | ||
certain types of vehicles and infrastructure, or to certain | ||
geographic areas to ensure equitable distribution of grant funds | ||
across the state. | ||
(d) In awarding grants under the program, the commission | ||
shall prioritize projects that: | ||
(1) are proposed by a state agency; | ||
(2) are in or near a nonattainment area; | ||
(3) are in an affected county, as that term is defined | ||
by Section 386.001(2); | ||
(4) will produce the greatest emissions reductions; | ||
and | ||
(5) will generate the most marketable credits under a | ||
state or federal emissions reduction credit averaging, banking, or | ||
trading program. | ||
(e) In addition to the requirements under Subsection (d), in | ||
awarding grants under the program, the commission shall consider: | ||
(1) the effectiveness of a proposed project in | ||
assisting an applicant in complying with Section 2158.0051, | ||
Government Code; | ||
(2) the total amount of the emissions reduction that | ||
would be achieved from the project; | ||
(3) the type and number of vehicles purchased, leased, | ||
or converted; | ||
(4) the location of the fleet and the refueling | ||
infrastructure or equipment; | ||
(5) the number of vehicles served and the rate at which | ||
vehicles are served by the refueling infrastructure or equipment; | ||
(6) the amount of any matching funds committed by the | ||
applicant; and | ||
(7) the schedule for project completion. | ||
(f) The commission may not award more than 10 percent of the | ||
total amount awarded under the program in any fiscal year for | ||
purchasing, leasing, installing, or procuring refueling | ||
infrastructure, equipment, or services. | ||
Sec. 395.011. FUNDING. The legislature may appropriate | ||
money to the commission from the Texas emissions reduction plan | ||
fund established under Section 386.251 to administer the program. | ||
Sec. 395.0115. ADMINISTRATIVE COSTS. In each fiscal year, | ||
the commission may use up to three-fourths of one percent of the | ||
total amount of money awarded under the program in that fiscal year, | ||
but not more than $1 million, for the administrative costs of the | ||
program. | ||
Sec. 395.012. RULES. The commission may adopt rules as | ||
necessary to implement this chapter. | ||
Sec. 395.013. REPORT REQUIRED. On or before November 1 of | ||
each even-numbered year, the commission shall submit to the | ||
governor, the lieutenant governor, and members of the legislature a | ||
report that includes the following information regarding awards | ||
made under the program during the preceding state fiscal biennium: | ||
(1) the number of grants awarded under the program; | ||
(2) the recipient of each grant awarded; | ||
(3) the number of vehicles converted or replaced; | ||
(4) the number, type, and location of any refueling | ||
infrastructure, equipment, or services funded under the program; | ||
(5) the total emissions reductions achieved under the | ||
program; and | ||
(6) any other information the commission considers | ||
relevant. | ||
Sec. 395.014. EXPIRATION. This chapter expires August 31, | ||
2025. | ||
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 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(a); | ||
(9) a contract with the Energy Systems Laboratory at | ||
the Texas Engineering Experiment Station for computation of | ||
creditable statewide emissions reductions as provided by Section | ||
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; [ |
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(15) the drayage truck incentive program established | ||
under Subchapter D-1; and | ||
(16) the governmental alternative fuel fleet grant | ||
program established under Chapter 395. | ||
SECTION 5. Section 2158.0051, Government Code, as added by | ||
this Act, applies beginning with the state fiscal biennium | ||
beginning September 1, 2015. | ||
SECTION 6. (a) To the extent that money is appropriated | ||
from the Texas emissions reduction plan fund for that purpose, the | ||
Texas Commission on Environmental Quality may use that money to | ||
award grants under the governmental alternative fuel fleet grant | ||
program created under Chapter 395, Health and Safety Code, as added | ||
by this Act, except that the commission may not use for that purpose | ||
more than three percent of the balance of the Texas emissions | ||
reduction plan fund as of September 1 of each fiscal year of the | ||
biennium for the governmental alternative fuel fleet grant program | ||
in that fiscal year. | ||
(b) This section expires August 31, 2025. | ||
SECTION 7. This Act takes effect September 1, 2015. |