Bill Text: TX SB12 | 2015-2016 | 84th Legislature | Comm Sub

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Bill Title: Relating to alternative fuel fleets of certain governmental entities, including funding for motor vehicles, infrastructure, and equipment.

Sponsorship: 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

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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.

A BILL TO BE ENTITLED
AN ACT
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; [and]
(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.