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  By: Deuell S.B. No. 1727
 
 
 
   
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the use of the Texas emissions reduction plan fund.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 386.051, Health and Safety Code, is
  amended by amending Subsection (b) and adding Subsection (b-1) 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)(5);
               (7)  a health effects study as provided by Section
  386.252(a)(7);
               (8)  air quality planning activities as provided by
  Section 386.252(a)(8); [and]
               (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)(9);
               (10)  the clean fleet program established under Chapter
  392;
               (11)  the alternative fueling facilities program
  established under Chapter 393; and
               (12)  the natural gas vehicle grants program and clean
  transportation triangle program established under Chapter 394.
         (b-1)  Under the plan, the commission may establish and
  administer other programs, including other grants or funding
  programs, as determined by the commission to be necessary or
  effective in fulfilling its duties and achieving the objectives
  described under Section 386.052. The commission may apply the
  criteria and requirements applicable to the programs under
  Subsection (b) to programs established under this subsection, or
  the commission may establish separate criteria and requirements as
  necessary to achieve the commission's objectives.  The additional
  programs shall be consistent with and comply with all applicable
  laws, regulations, and guidelines pertaining to the use of state
  funds, the awarding and administration of grants and contracts, and
  achieving reductions in emissions of pollutants determined to be of
  concern. Under this subsection, the commission shall place a
  priority on programs that address the following goals:
               (1)  reduction of emissions of oxides of nitrogen or
  particulate matter from heavy-duty on-road vehicles and non-road
  equipment, including locomotives and marine vessels, at port
  facilities in nonattainment areas;
               (2)  reduction of emissions from the operation of
  drilling and related heavy-duty non-road equipment in oil and gas
  production fields where the commission determines that the programs
  can help prevent that area or an adjacent area from being in
  violation of national ambient air quality standards; and
               (3)  replacement, repower, or retrofit of heavy-duty
  on-road vehicles, medium-duty passenger vehicles, and non-road
  equipment to change from using gasoline or diesel fuel to engines or
  conversion systems certified under the United States Environmental
  Protection Agency's heavy-duty on-road or non-road engine emission
  or light-duty vehicle engine emission certification programs to
  using cleaner alternative fuels, either dedicated or in conjunction
  with regular fuel, and, particularly, alternative fuels produced in
  Texas.
         SECTION 2.  Subsection (a), Section 386.053, Health and
  Safety Code, is amended to read as follows:
         (a)  The commission shall adopt grant guidelines and
  criteria consistent with the requirements of Subchapter C [this
  chapter].
         SECTION 3.  Subsection (a), Section 386.054, Health and
  Safety Code, is amended to read as follows:
         (a)  The commission shall develop procedures for monitoring
  whether the emissions reductions projected for projects awarded
  grants under Subchapter C [this chapter] are actually achieved.
  Monitoring procedures may include project reviews and contract
  requirements that the grant recipient provide information
  semiannually about the project. If the commission requires an
  annual report, the report shall contain a minimum amount of
  information required from a recipient and the report format shall
  be simple and convenient.
         SECTION 4.  Subsection (a), Section 386.252, Health and
  Safety Code, as amended by Chapter 28 (S.B. 527), Acts of the 82nd
  Legislature, Regular Session, 2011, is amended to read as follows: 
         (a)  Money in the fund may be used only to implement and
  administer programs established under the plan.  Money appropriated
  to the commission to be used for the programs under Section
  386.051(b) [and the total appropriation] shall be allocated as
  follows:
               (1)  not more than four percent may be used for the
  clean school bus program under Chapter 390;
               (2)  not more than 10 percent may be used for on-road
  diesel purchase or lease incentives under Section 386.112;
               (3)  a specified amount may be used for the new
  technology implementation grant program under Chapter 391, from
  which a defined amount may be set aside for electricity storage
  projects related to renewable energy;
               (4)  five percent shall be used for the clean fleet
  program under Chapter 392;
               (5)  up to [not more than $7 million shall be allocated
  in 2012 and 2013 and not more than] $3 million shall be used by the
  commission [allocated in 2014 and in subsequent years] 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;
               (6)  not less than 16 percent shall be used for the
  Texas natural gas vehicle grant program under Chapter 394;
               (7)  not more than four percent may be used to provide
  grants for natural gas fueling stations under the clean
  transportation triangle program under Section 394.010;
               (8)  two percent may be used for the Texas alternative
  fueling facilities program under Chapter 393;
               (9)  a specified amount may be used [is to be allocated]
  each year to support research related to air quality as provided by
  Chapter 387;
               (10) [(7)]  up to $200,000 may be used [is allocated]
  for a health effects study;
               (11) [(8)]  up to $500,000 is to be deposited in the
  state treasury to the credit of the clean air account created under
  Section 382.0622 to supplement funding for air quality planning
  activities in affected counties;
               (12) [(9)]  not more than $216,000 may be used by [is
  allocated to] the commission to contract with the Energy Systems
  Laboratory at the Texas 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; and
               (13) [(10)     not more than $3,400,000 is allocated to
  the commission for administrative costs incurred by the commission;
               [(11)     1.5 percent of the money in the fund is allocated
  for administrative costs incurred by the laboratory; and
               [(12)]  the balance is to be used by [is allocated to]
  the commission for the diesel emissions reduction incentive program
  under Subchapter C.
         SECTION 5.  Subsections (b), (c), (d), and (e), Section
  386.252, Health and Safety Code, are amended to read as follows:
         (b)  The commission may allocate unexpended money designated
  for the clean fleet program under Chapter 392 to other programs
  described under Subsection (a) after the commission allocates money
  to recipients under the clean fleet program.
         (c)  The commission may allocate unexpended money designated
  for the Texas alternative fueling facilities program under Chapter
  393 to other programs described under Subsection (a) after the
  commission allocates money to recipients under the alternative
  fueling facilities program.
         (d)  The commission may reallocate money designated for the
  Texas natural gas vehicle grant program under Chapter 394 to other
  programs described under Subsection (a) if:
               (1)  the commission, in consultation with the governor
  and the advisory board, determines that the use of the money in the
  fund for that program will cause the state to be in noncompliance
  with the state implementation plan to the extent that federal
  action is likely; and
               (2)  the commission finds that the reallocation of some
  or all of the funding for the program would resolve the
  noncompliance.
         (e)  Under Subsection (d), the commission may not reallocate
  more than the minimum amount of money necessary to resolve the
  noncompliance. [money allocated under Subsection (a) to a
  particular program may be used for another program under the plan as
  determined by the commission.
         [(c)     Money in the fund may be allocated to the clean school
  bus program only if:
               [(1)     the money is available for that purpose after
  money is allocated for the other purposes of the fund as required by
  the state implementation plan; or
               [(2)     the amount of money deposited to the credit of the
  fund in a state fiscal year exceeds the amount the comptroller's
  biennial revenue estimate shows as the comptroller's estimated
  amount to be deposited to the credit of the fund in that year.
         [(d)     The commission may allocate unexpended money
  designated for the clean fleet program to other programs described
  under Subsection (a) after the commission allocates money to
  recipients under the clean fleet program.
         [(e)     The commission may allocate unexpended money
  designated for the Texas alternative fueling facilities program to
  other programs described under Subsection (a) after the commission
  allocates money to recipients under the alternative fueling
  facilities program.]
         SECTION 6.  Subsection (f), Section 386.252, Health and
  Safety Code, as added by Chapter 892 (S.B. 385), Acts of the 82nd
  Legislature, Regular Session, 2011, is amended to read as follows:
         (f)  Money appropriated to the commission for programs under
  Section 386.051(c) shall be allocated to those programs as
  determined by the commission [Notwithstanding Subsection (a), the
  commission may reallocate money in the fund if:
               [(1)     the commission, in consultation with the governor
  and the advisory board, determines that the use of the money in the
  fund for the program established under Chapter 394 will cause the
  state to be in noncompliance with the state implementation plan to
  the extent that federal action is likely; and
               [(2)     the commission finds that the reallocation of
  some or all of the funding for the program established under Chapter
  394 would resolve the noncompliance].
         SECTION 7.  Subsection (g), Section 386.252, Health and
  Safety Code, is amended to read as follows:
         (g)  If the legislature does not specify amounts or
  percentages from the total appropriation to be allocated under
  Subsection (a) or (f), the commission shall determine the amounts
  of the total appropriation to be allocated under each of those
  subsections [Under Subsection (f), the commission may not
  reallocate more than the minimum amount of money necessary to
  resolve the noncompliance].
         SECTION 8.  Section 386.252, Health and Safety Code, is
  amended by adding Subsections (h), (i), (j), and (k) to read as
  follows:
         (h)  Unless a specified amount is appropriated for
  administrative costs, of the total appropriation to the commission
  from the fund, up to four percent or $4 million, whichever is
  greater, may be used by the commission for administrative costs.
         (i)  Subject to the limitations outlined in this section and
  any additional limitations placed on the use of the appropriated
  funds, money allocated under this section to a particular program
  may be used for another program under the plan as determined by the
  commission.
         (j)  Up to 1.5 percent of the money in the fund may be used
  for administrative costs incurred by the laboratory for work
  required under this chapter.
         (k)  If a specified percentage or amount from the fund is
  appropriated for a particular program or purpose that differs from
  the allocation percentage or amount established in this section,
  the specified appropriation percentage or amount shall apply.
         SECTION 9.  Subsection (a), Section 386.252, Health and
  Safety Code, as amended by Chapters 589 (Senate Bill No. 20) and 892
  (Senate Bill No. 385), Acts of the 82nd Legislature, Regular
  Session, 2011, is repealed.
         SECTION 10.  Subsection (f), Section 386.252, Health and
  Safety Code, as added by Chapter 589 (Senate Bill No. 20), Acts of
  the 82nd Legislature, Regular Session, 2011, is repealed.
         SECTION 11.  This Act takes effect September 1, 2013.