Landgraf Bill Merges Emissions Grants Into One Clean Fleet Program

The text as introduced · 1,507 words

By: Landgraf
H.B. No. 3868

A BILL TO BE ENTITLED

AN ACT

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) ] remittance of funds to the state highway fund

for use by the Texas Department of Transportation for congestion

mitigation and air quality improvement projects in nonattainment

areas and affected counties; and

(19) [ (20) ] the Texas hydrogen infrastructure,

vehicle, and equipment grant program established under Subchapter

G.

SECTION 2. Section 386.252(a), Health and Safety Code, is

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) and after remittance to the state highway fund under

Subsection (a-1), money from the fund and account to be used for the

programs under Section 386.051(b) shall initially be allocated as

follows:

(1) three [ four ] percent may be used for the clean

school bus program under Chapter 390;

(2) eight percent may be used for the new 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 and not more than $8 million may be used

for hydrogen infrastructure and vehicles;

(3) six [ five] percent may be used for the Texas 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) 7.5 percent may be used for the Texas 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 $750,000 may be used 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 15 percent

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) six percent may be used by the commission for the

seaport and rail yard areas emissions reduction program established

under Subchapter D-1;

(11) 2.5 percent may be used for the light-duty motor

vehicle purchase or lease incentive program established under

Subchapter D;

(12) not more than $500,000 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 that are

obtained through:

(A) wind and other renewable energy resources;

(B) energy efficiency programs administered by the

Public Utility Commission of Texas or the State Energy Conservation

Office; or

(C) the implementation of advanced building energy

codes; and

(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; and

(14) ] the balance is to be used by the commission for

the diesel emissions reduction incentive program under Subchapter C

as determined by the commission.

SECTION 5. Sec. 391.001, Health and Safety Code is amended

to read as follows: DEFINITIONS. In this chapter:

(1) "Best available control technology" has the

meaning assigned by Section 169 of the federal Clean Air Act (42

U.S.C. Section 7479(3)).

(2) "Commission" means the Texas Commission on

Environmental Quality.

(3) "Facility" has the meaning assigned by Section

382.003.

(4) "Incremental cost" has the meaning assigned by

Section 386.001.

(5) "New technology" means emissions control

technology that results in emissions reductions that exceed state

or federal requirements in effect at the time of submission of a new

technology implementation grant application.

(6) "Stationary source" has the meaning assigned by

Section 302 of the federal Clean Air Act (42 U.S.C. Section

7602(z)).

(7) "Hydrogen vehicle" means a motor vehicle that uses

hydrogen to operate the vehicle, including through the use of

hydrogen fuel cells or an internal combustion engine that runs on

hydrogen.

SECTION 6. Sec. 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; [ and ]

(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 ; and [ . ]

(5) to encourage the adoption of hydrogen

infrastructure and vehicles, including:

(A) implementation of hydrogen infrastructure

projects;

(B) purchase or lease of on-road or non-road

hydrogen vehicles;

(C) replacement of on-road or non-road vehicles

with newer on-road or non-road hydrogen vehicles;

(D) use of hydrogen fuel; and

(E) purchase or lease of hydrogen engines and

heavy equipment.

SECTION 1. Section 393.006(a), Health and Safety Code, is

amended to read as follows:

(a) Grants awarded under this chapter for a facility to

provide alternative fuels other than natural gas may not exceed

[ the lesser of:

[ (1) ] 50 percent of the sum of the actual eligible

costs incurred by the grant recipient within deadlines established

by the commission[ ; or

[ (2) $600,000 ].

SECTION 2. 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 3. This Act takes effect September 1, 2025.