Bill Text: TX HB4885 | 2023-2024 | 88th Legislature | Enrolled
Bill Title: Relating to programs established and funded under the Texas emissions reduction plan.
Spectrum: Moderate Partisan Bill (Republican 4-1)
Status: (Passed) 2023-06-13 - Effective on 9/1/23 [HB4885 Detail]
Download: Texas-2023-HB4885-Enrolled.html
H.B. No. 4885 |
|
||
relating to programs established and funded 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. | ||
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 [ |
||
the Texas hydrogen infrastructure, vehicle, and equipment grant | ||
program established under Subchapter G and [ |
||
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 [ |
||
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 | ||
[ |
||
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 [ |
||
motor vehicle purchase or lease incentive program established under | ||
Subchapter D; | ||
(12) not more than $500,000 [ |
||
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) 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 G to read as follows: | ||
SUBCHAPTER G. TEXAS HYDROGEN INFRASTRUCTURE, VEHICLE, AND | ||
EQUIPMENT GRANT PROGRAM | ||
Sec. 386.301. DEFINITIONS. In this subchapter: | ||
(1) "Hydrogen vehicle or equipment" means a heavy-duty | ||
motor vehicle or piece of heavy-duty equipment that uses hydrogen | ||
to operate the vehicle or equipment, including through the use of | ||
hydrogen fuel cells or an internal combustion engine that runs on | ||
hydrogen. | ||
(2) "Program" means the Texas hydrogen | ||
infrastructure, vehicle, and equipment grant program established | ||
under this subchapter. | ||
Sec. 386.302. PROGRAM. (a) The commission shall establish | ||
and administer the Texas hydrogen infrastructure, vehicle, and | ||
equipment grant program to encourage the adoption of hydrogen | ||
infrastructure, vehicles, and equipment. Under the program, the | ||
commission shall provide funding for eligible projects to offset | ||
the incremental cost of projects that reduce emissions of oxides of | ||
nitrogen from high-emitting sources in nonattainment areas and | ||
affected counties of this state. The commission shall determine | ||
the eligibility of projects. | ||
(b) Projects that may be considered for a grant under the | ||
program include: | ||
(1) implementation of hydrogen infrastructure | ||
projects; | ||
(2) purchase or lease of on-road or non-road hydrogen | ||
vehicles or equipment; | ||
(3) replacement of on-road or non-road heavy-duty | ||
vehicles or equipment with newer on-road or non-road hydrogen | ||
vehicles or equipment; and | ||
(4) the repower or conversion of on-road or non-road | ||
heavy-duty vehicles or equipment with a powertrain that runs on or | ||
is powered by hydrogen. | ||
(c) A project listed in Subsection (b) is not eligible if it | ||
is required by any state or federal law, rule or regulation, | ||
memorandum of agreement, or other legally binding document. This | ||
subsection does not apply to: | ||
(1) an otherwise qualified project, regardless of the | ||
fact that the state implementation plan assumes that the change in | ||
vehicles, equipment, or operations will occur, if on the date the | ||
grant is awarded the change is not required by any state or federal | ||
law, rule or regulation, memorandum of agreement, or other legally | ||
binding document; or | ||
(2) the purchase of a hydrogen vehicle or equipment or | ||
facility required only by local law or regulation or by corporate or | ||
controlling board policy of a public or private entity. | ||
(d) The commission shall prioritize the awarding of grants | ||
under this subchapter in the following order: | ||
(1) projects to replace on-road heavy-duty vehicles | ||
with newer on-road hydrogen vehicles; | ||
(2) projects to purchase, lease, repower, or convert | ||
on-road heavy-duty vehicles with a powertrain that runs on or is | ||
powered by hydrogen; | ||
(3) projects to implement hydrogen refueling | ||
infrastructure that will be accessible and available to the public | ||
at times designated by the grant contract; | ||
(4) projects to replace non-road heavy-duty vehicles | ||
with newer non-road hydrogen vehicles; and | ||
(5) projects to purchase, lease, repower, or convert | ||
non-road heavy-duty vehicles with a powertrain that runs on or is | ||
powered by hydrogen. | ||
(e) Subject to Subsection (d), in awarding grants under this | ||
subchapter, the commission shall give preference to the most | ||
cost-effective projects that will result in the greatest reduction | ||
in emissions of oxides of nitrogen. | ||
(f) The commission shall establish additional eligibility | ||
and prioritization criteria as needed to implement the program. | ||
Sec. 386.303. APPLICATION PACKAGE. (a) The commission | ||
shall develop a simple, standardized application package for grants | ||
under this subchapter. The package must include: | ||
(1) an application form; | ||
(2) a brief description of: | ||
(A) the program; | ||
(B) the projects that are eligible for available | ||
funding; | ||
(C) the selection criteria and evaluation | ||
process; and | ||
(D) the required documentation; | ||
(3) the name of a person or office to contact for more | ||
information; | ||
(4) an example of the contract that an applicant will | ||
be required to execute before receiving a grant; and | ||
(5) any other information the commission considers | ||
useful to inform the applicant and expedite the application | ||
process. | ||
(b) The application form shall require as much information | ||
as the commission determines is necessary to properly evaluate each | ||
project but shall otherwise minimize the information required. | ||
Sec. 386.304. APPLICATION REVIEW PROCEDURES. (a) The | ||
commission shall review an application for a grant for a project | ||
authorized under this subchapter. If the commission determines | ||
that an application is incomplete, the commission shall notify the | ||
applicant with an explanation of what is missing from the | ||
application. The commission shall evaluate the completed | ||
application according to the appropriate project criteria. Subject | ||
to available funding, the commission shall make a final | ||
determination on an application as soon as possible. | ||
(b) The commission shall make every effort to expedite the | ||
application review process and to award grants to qualified | ||
projects in a timely manner. To the extent possible, the commission | ||
shall coordinate project review and approval with any timing | ||
constraints related to project purchases or installations to be | ||
made by an applicant. | ||
(c) The commission may deny an application for a project | ||
that does not meet the applicable project criteria or that the | ||
commission determines is not made in good faith, is not credible, or | ||
is not in compliance with this chapter and the goals of this | ||
chapter. | ||
(d) Subject to availability of funds, the commission shall | ||
award a grant under this subchapter in conjunction with the | ||
execution of a contract that obligates the commission to make the | ||
grant and the recipient to perform the actions described in the | ||
recipient's grant application. The contract must incorporate | ||
provisions for recapturing grant money in proportion to any loss of | ||
emissions reductions compared with the volume of emissions | ||
reductions that was projected in awarding the grant. Grant money | ||
recaptured under the contract provision shall be deposited in the | ||
fund and reallocated for other projects under this chapter. | ||
SECTION 4. 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, [ |
||
completions, gathering, storage, processing, [ |
||
or refining 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. | ||
SECTION 5. This Act takes effect September 1, 2023. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 4885 was passed by the House on April | ||
28, 2023, by the following vote: Yeas 108, Nays 37, 2 present, not | ||
voting; and that the House concurred in Senate amendments to H.B. | ||
No. 4885 on May 25, 2023, by the following vote: Yeas 127, Nays 13, | ||
1 present, not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 4885 was passed by the Senate, with | ||
amendments, on May 23, 2023, by the following vote: Yeas 27, Nays | ||
4. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: __________________ | ||
Date | ||
__________________ | ||
Governor |