bill pays people to buy small electric engines

The text as introduced · 1,825 words

89R3106 JRR-F

By: Johnson
S.B. No. 727

A BILL TO BE ENTITLED

AN ACT

relating to the creation of a small non-road engine purchase

incentive program under 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 ]

(20) the Texas hydrogen infrastructure, vehicle, and

equipment grant program established under Subchapter G ; and

(21) the small non-road engine purchase incentive

program established under Subchapter H .

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) four percent may be used for the clean school bus

program under Chapter 390;

(2) eight percent total may be used between the Texas

hydrogen infrastructure, vehicle, and equipment grant program

established under Subchapter G and 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 the Texas hydrogen infrastructure, vehicle, and equipment grant

program;

(3) 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 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;

(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) two percent may be used for the small non-road

engine purchase incentive program established under Subchapter H;

and

(15) 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 3. Chapter 386, Health and Safety Code, is amended

by adding Subchapter H to read as follows:

SUBCHAPTER H. SMALL NON-ROAD ENGINE PURCHASE INCENTIVE PROGRAM

Sec. 386.351. DEFINITIONS. In this subchapter:

(1) "Four-stroke engine" means an engine that goes

through the steps of compression, power, exhaust, and intake in

four piston strokes.

(2) "Non-road engine" means an engine powering

equipment that has less than 25 horsepower.

(3) "Ozone precursors" means pollutants, including

nitrogen oxides and volatile organic compounds, that create ground

level ozone through chemical reactions.

(4) "Program" means the small non-road engine purchase

incentive program established under this subchapter.

(5) "Two-stroke engine" means an engine that goes

through the steps of compression, power, exhaust, and intake in two

piston strokes and mixes fuel with oil in the process.

Sec. 386.352. PROGRAM. (a) The commission shall develop a

small non-road engine purchase incentive program designed to reduce

emissions, including the emissions of ozone precursors,

particulate matter, and carbon monoxide, produced by two-stroke and

four-stroke non-road engines.

(b) The program shall authorize statewide financial

incentives for the purchase by persons in this state of:

(1) new non-road engines that are electrically powered

or powered by another alternative technology designated by the

commission; and

(2) batteries designated by the commission.

(c) The commission shall adopt rules necessary to implement

the program, including designating alternative technologies and

products eligible for incentives.

Sec. 386.353. ELIGIBILITY. (a) The purchase by a person in

this state of non-road engines or batteries is eligible for an

incentive under the program if:

(1) as applicable:

(A) the non-road engine purchased is

electrically powered or powered by another alternative technology

designated by the commission; or

(B) the battery purchased is necessary to improve

the efficiency of an electrically powered non-road engine owned or

operated by the person, as established by commission rule;

(2) the purchase meaningfully reduces emissions in

this state, as determined by the criteria established under

Subsection (b); and

(3) the purchase satisfies any minimum purchase

quantity requirements established by the commission to ensure

efficient administration of the program.

(b) The commission shall establish criteria for determining

whether a purchase of non-road engines or batteries meaningfully

reduces emissions in this state. The commission shall review and

revise the criteria as appropriate. The criteria must include:

(1) the proposed frequency of use of the newly

purchased non-road engine;

(2) the degree to which the purchase reduces the use of

existing two-stroke and four-stroke non-road engines; and

(3) the cost-effectiveness of the purchase as it

relates to advancing the purpose of the program under Section

386.352(a).

(c) When establishing criteria under this section, the

commission may allow for greater incentives for purchases that

reduce:

(1) health risks to equipment operators when using

non-road engines; and

(2) emissions of ozone precursors from non-road

engines that operate primarily within a nonattainment area or an

affected county.

(d) The commission may require the disposal of a two-stroke

engine or four-stroke engines replaced by a non-road engine that is

the subject of an incentive under this subchapter.

Sec. 386.354. APPLICATION FOR INCENTIVE. (a) A person who

makes a purchase that meets the eligibility requirements under

Section 386.353 may apply for an incentive under the program.

(b) An application for an incentive under this chapter must

be made on a form provided by the commission and must contain any

information necessary to:

(1) determine whether the project meets eligibility

requirements; and

(2) ensure the efficient administration of the

program.

(c) To reduce the administrative burden for the commission

and applicants, the commission may streamline the application

process by:

(1) reducing data entry and the copying of

applications; and

(2) implementing a system to accept applications

electronically through the commission's Internet website.

Sec. 386.355. AMOUNT OF INCENTIVE; ADMINISTRATION. (a) An

incentive provided under this subchapter may not exceed 80 percent

of the cost of eligible purchases of non-road engines and

batteries.

(b) The commission shall set standards for determining

incentive amounts, and may revise these standards as needed to:

(1) reflect changes to federal emission standards and

developments in technological capabilities and scientific

knowledge; and

(2) maximize the cost-effectiveness of the program in

reducing emissions.

(c) The commission shall publicize and promote the

availability of incentives under this subchapter to encourage

eligible purchases of non-road engines and batteries.

(d) The commission shall include in the biennial plan report

required by Section 386.057(b) a report of commission actions and

results under this subchapter.

SECTION 4. The Texas Commission on Environmental Quality

shall adopt rules and establish procedures under Subchapter H,

Chapter 386, Health and Safety Code, as added by this Act, as soon

as practicable after the effective date of this Act.

SECTION 5. This Act takes effect September 1, 2025.