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  S.B. No. 1759
 
 
 
 
AN ACT
  relating to the extended registration of a commercial fleet of
  motor vehicles.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 502.001, Transportation Code, is amended
  by adding Subdivision (1-a) to read as follows:
               (1-a)  "Commercial fleet" means a group of at least 25
  nonapportioned motor vehicles owned by a corporation, limited or
  general partnership, limited liability company, or other business
  entity and used for the business purposes of that entity.
         SECTION 2.  Subchapter A, Chapter 502, Transportation Code,
  is amended by adding Section 502.0023 to read as follows:
         Sec. 502.0023.  EXTENDED REGISTRATION OF COMMERCIAL FLEET
  MOTOR VEHICLES. (a)  Notwithstanding Section 502.158(c), the
  department shall develop and implement a system of registration to
  allow an owner of a commercial fleet to register the motor vehicles
  in the commercial fleet for an extended registration period of not
  less than one year or more than eight years. The owner may select
  the number of years for registration under this section within that
  range and register the commercial fleet for that period. Payment
  for all registration fees for the entire registration period
  selected is due at the time of registration.
         (b)  A system of extended registration under this section
  must allow the owner of a commercial fleet to register:
               (1)  an entire commercial fleet in the county of the
  owner's residence or principal place of business; or
               (2)  the motor vehicles in a commercial fleet that are
  operated most regularly in the same county.
         (c)  In addition to the registration fees prescribed by
  Subchapter D, an owner registering a commercial fleet under this
  section shall pay:
               (1)  an annual commercial fleet registration fee of $10
  per motor vehicle in the fleet; and
               (2)  except as provided by Subsection (e), a one-time
  license plate manufacturing fee of $1.50 for each fleet motor
  vehicle license plate.
         (d)  A license plate issued under this section:
               (1)  may, on request of the owner, include the name or
  logo of the business entity that owns the vehicle;
               (2)  must include the expiration date of the
  registration period; and
               (3)  does not require an annual registration insignia
  to be valid.
         (e)  In addition to all other applicable registration fees,
  an owner registering a commercial fleet under this section shall
  pay a one-time license plate manufacturing fee of $8 for each set of
  plates issued that includes on the legend the name or logo of the
  business entity that owns the vehicle instead of the fee imposed by
  Subsection (c)(2).
         (f)  If a motor vehicle registered under this section has a
  gross weight in excess of 10,000 pounds, the department shall also
  issue a registration card for the vehicle that is valid for the
  selected registration period.
         (g)  The department shall adopt rules to implement this
  section, including rules on suspension from the commercial fleet
  program for failure to comply with this section or rules adopted
  under this section.
         (h)  The department and the counties in their budgeting
  processes shall consider any temporary increases and resulting
  decreases in revenue that will result from the use of the process
  provided under this section.
         SECTION 3.  Subsection (b), Section 501.0234,
  Transportation Code, is amended to read as follows:
         (b)  This section does not apply to a motor vehicle:
               (1)  that has been declared a total loss by an insurance
  company in the settlement or adjustment of a claim;
               (2)  for which the certificate of title has been
  surrendered in exchange for:
                     (A)  a salvage vehicle title issued under this
  chapter;
                     (B)  a nonrepairable vehicle title issued under
  this chapter;
                     (C)  a certificate of authority issued under
  Subchapter D, Chapter 683; or
                     (D)  an ownership document issued by another state
  that is comparable to a document described by Paragraphs (A)-(C);
  [or]
               (3)  with a gross weight in excess of 11,000 pounds; or
               (4)  purchased by a commercial fleet buyer who is a
  full-service deputy under Section 502.114 and who utilizes the
  dealer title application process developed to provide a method to
  submit title transactions to the county in which the commercial
  fleet buyer is a full-service deputy.
         SECTION 4.  Section 386.252, Health and Safety Code, is
  amended by amending Subsection (a) and adding Subsection (d) to
  read as follows:
         (a)  Money in the fund may be used only to implement and
  administer programs established under the plan and shall be
  allocated as follows:
               (1)  for the diesel emissions reduction incentive
  program, 87.5 percent of the money in the fund, of which not more
  than four percent may be used for the clean school bus program, five
  percent shall be used for the clean fleet program, and not more than
  10 percent may be used for on-road diesel purchase or lease
  incentives;
               (2)  for the new technology research and development
  program, 9.5 percent of the money in the fund, of which up to
  $250,000 is allocated for administration, up to $200,000 is
  allocated for a health effects study, $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, not less than 20 percent
  is to be allocated each year to support research related to air
  quality for the Houston-Galveston-Brazoria and Dallas-Fort Worth
  nonattainment areas by a nonprofit organization based in Houston of
  which $216,000 each year shall be contracted to the Energy Systems
  Laboratory at the Texas Engineering Experiment Station for the
  development and annual calculation of creditable statewide
  emissions reductions obtained through wind and other renewable
  energy resources for the State Implementation Plan, and the balance
  is to be allocated each year to a nonprofit organization or an
  institution of higher education based in Houston to be used to
  implement and administer the new technology research and
  development program under a contract with the commission for the
  purpose of identifying, testing, and evaluating new
  emissions-reducing technologies with potential for
  commercialization in this state and to facilitate their
  certification or verification; and
               (3)  for administrative costs incurred by the
  commission and the laboratory, three percent of the money in the
  fund.
         (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.
         SECTION 5.  Subtitle C, Title 5, Health and Safety Code, is
  amended by adding Chapter 391 to read as follows:
  CHAPTER 391. TEXAS CLEAN FLEET PROGRAM
         Sec. 391.001.  DEFINITIONS. In this chapter:
               (1)  "Alternative fuel" means a fuel other than
  gasoline or diesel fuel, including electricity, compressed natural
  gas, liquified natural gas, hydrogen, propane, or a mixture of
  fuels containing at least 85 percent methanol by volume.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Golf cart" has the meaning assigned by Section
  502.001, Transportation Code.
               (4)  "Hybrid vehicle" means a vehicle with at least two
  different energy converters and two different energy storage
  systems on board the vehicle for the purpose of propelling the
  vehicle.
               (5)  "Incremental cost" has the meaning assigned by
  Section 386.001.
               (6)  "Light-duty motor vehicle" has the meaning
  assigned by Section 386.151.
               (7)  "Motor vehicle" has the meaning assigned by
  Section 386.151.
               (8)  "Neighborhood electric vehicle" means a motor
  vehicle that:
                     (A)  is originally manufactured to meet, and does
  meet, the equipment requirements and safety standards established
  for "low-speed vehicles" in Federal Motor Vehicle Safety Standard
  No. 500 (49 C.F.R. Section 571.500);
                     (B)  is a slow-moving vehicle, as defined by
  Section 547.001, Transportation Code, that is able to attain a
  speed of more than 20 miles per hour but not more than 25 miles per
  hour in one mile on a paved, level surface;
                     (C)  is a four-wheeled motor vehicle;
                     (D)  is powered by electricity or alternative
  power sources;
                     (E)  has a gross vehicle weight rating of less
  than 3,000 pounds; and
                     (F)  is not a golf cart.
               (9)  "Program" means the Texas clean fleet program
  established under this chapter.
         Sec. 391.002.  PROGRAM. (a)  The commission shall establish
  and administer the Texas clean fleet program to encourage a person
  that has a fleet of diesel-powered vehicles to replace them with
  alternative fuel or hybrid vehicles. Under the program, the
  commission shall provide grants for eligible projects to offset the
  incremental cost of projects for fleet owners.
         (b)  An entity that places 25 or more qualifying vehicles in
  service for use entirely in this state during a calendar year is
  eligible to participate in the program.
         Sec. 391.003.  QUALIFYING VEHICLES. (a)  A vehicle is a
  qualifying vehicle that may be considered for a grant under the
  program if during the calendar year the entity purchases a new
  on-road vehicle that:
               (1)  is certified to current federal emissions
  standards;
               (2)  replaces a diesel-powered on-road vehicle of the
  same weight classification and use; and
               (3)  is a hybrid vehicle or fueled by an alternative
  fuel.
         (b)  A vehicle is not a qualifying vehicle if the vehicle:
               (1)  is a neighborhood electric vehicle;
               (2)  has been used as a qualifying vehicle to qualify
  for a grant under this chapter for a previous reporting period or by
  another entity; or
               (3)  has qualified for a similar grant or tax credit in
  another jurisdiction.
         Sec. 391.004.  APPLICATION FOR GRANT. (a)  An entity
  operating in this state that operates a fleet of at least 100
  vehicles may apply for and receive a grant under the program.
         (b)  The commission may adopt guidelines to allow a regional
  planning commission, council of governments, or similar regional
  planning agency created under Chapter 391, Local Government Code,
  or a private nonprofit organization to apply for and receive a grant
  to improve the ability of the program to achieve its goals.
         (c)  An application for a grant under this chapter must be
  made on a form provided by the commission and must contain the
  information required by the commission.
         Sec. 391.005.  ELIGIBILITY OF PROJECTS FOR GRANTS. (a)  The
  commission by rule shall establish criteria for prioritizing
  projects eligible to receive grants under this chapter. The
  commission shall review and revise the criteria as appropriate.
         (b)  To be eligible for a grant under the program, a project
  must:
               (1)  result in a reduction in emissions of nitrogen
  oxides or other pollutants, as established by the commission, of at
  least 25 percent, based on:
                     (A)  the baseline emission level set by the
  commission under Subsection (g); and
                     (B)  the certified emission rate of the new
  vehicle; and
               (2)  replace a vehicle that:
                     (A)  is an on-road vehicle that has been owned,
  registered, and operated by the applicant in Texas for at least the
  two years immediately preceding the submission of a grant
  application;
                     (B)  satisfies any minimum average annual mileage
  or fuel usage requirements established by the commission;
                     (C)  satisfies any minimum percentage of annual
  usage requirements established by the commission; and
                     (D)  is in operating condition and has at least
  two years of remaining useful life, as determined in accordance
  with criteria established by the commission.
         (c)  As a condition of receiving a grant, the qualifying
  vehicle must be continuously owned, registered, and operated in the
  state by the grant recipient for at least five years from the date
  of reimbursement of the grant-funded expenses. Not less than 75
  percent of the annual use of the qualifying vehicle, either mileage
  or fuel use as determined by the commission, must occur in the
  state.
         (d)  The commission shall include and enforce the usage
  provisions in the grant contracts. The commission shall monitor
  compliance with the ownership and usage requirements, including
  submission of reports on at least an annual basis, or more
  frequently as determined by the commission.
         (e)  The commission by contract may require the return of all
  or a portion of grant funds for a grant recipient's noncompliance
  with the usage and percentage of use requirements under this
  section.
         (f)  A vehicle or engine replaced under this program must be
  rendered permanently inoperable by crushing the vehicle or making a
  hole in the engine block and permanently destroying the frame of the
  vehicle. The commission shall establish criteria for ensuring the
  permanent destruction of the engine and vehicle. The commission
  shall monitor and enforce the destruction requirements.
         (g)  The commission shall establish baseline emission levels
  for emissions of nitrogen oxides for on-road vehicles being
  replaced. The commission may consider and establish baseline
  emission rates for additional pollutants of concern, as determined
  by the commission.
         (h)  Mileage requirements established by the commission
  under Subsection (b)(2)(B) may differ by vehicle weight categories
  and type of use.
         Sec. 391.006.  RESTRICTION ON USE OF GRANT. A recipient of a
  grant under this chapter shall use the grant to pay the incremental
  costs of the project for which the grant is made, which may include
  the initial cost of the alternative fuel vehicle and the reasonable
  and necessary expenses incurred for the labor needed to install
  emissions-reducing equipment. The recipient may not use the grant
  to pay the recipient's administrative expenses.
         Sec. 391.007.  AMOUNT OF GRANT. (a)  The amount the
  commission shall award for each vehicle being replaced is:
               (1)  80 percent of the incremental cost for replacement
  of a heavy-duty diesel engine:
                     (A)  manufactured prior to implementation of
  federal or California emission standards; and
                     (B)  not certified to meet a specific emission
  level by either the United States Environmental Protection Agency
  or the California Air Resources Board;
               (2)  70 percent of the incremental cost for replacement
  of a heavy-duty diesel engine certified to meet the federal
  emission standards applicable to engines manufactured in 1990
  through 1997;
               (3)  60 percent of the incremental cost for replacement
  of a heavy-duty diesel engine certified to meet the federal
  emission standards applicable to engines manufactured in 1998
  through 2003;
               (4)  50 percent of the incremental cost for replacement
  of a heavy-duty diesel engine certified to meet the federal
  emission standards applicable to engines manufactured in 2004 and
  later;
               (5)  80 percent of the incremental cost for replacement
  of a light-duty diesel vehicle:
                     (A)  manufactured prior to the implementation of
  certification requirements; and
                     (B)  not certified to meet either mandatory or
  voluntary emission certification standards;
               (6)  70 percent of the incremental cost for replacement
  of a light-duty diesel vehicle certified to meet federal Tier 1
  emission standards phased in between 1994 and 1997; and
               (7)  60 percent of the incremental cost for replacement
  of a light-duty diesel vehicle certified to meet federal Tier 2
  emission standards phased in between 2004 and 2009.
         (b)  The commission may revise the standards for determining
  grant amounts, as needed to reflect changes to federal emission
  standards and decisions on pollutants of concern.
         Sec. 391.008.  EXPIRATION. This chapter expires August 31,
  2017.
         SECTION 6.  (a)  In this section:
               (1)  "Alternative fuel" means a fuel other than
  gasoline or diesel fuel, including electricity, compressed natural
  gas, liquified natural gas, hydrogen, propane, methanol, or a
  mixture of fuels containing at least 85 percent methanol by volume.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
         (b)  The commission shall conduct an alternative fueling
  facilities study to:
               (1)  assess the correlation between the installation of
  fueling facilities in nonattainment areas and the deployment of
  fleet vehicles that use alternative fuels; and
               (2)  determine the emissions reductions achieved from
  replacing a diesel-powered engine with an engine utilizing
  alternative fuels.
         (c)  From the emissions reductions determined under
  Subsection (b) of this section, the commission shall determine the
  amount of emissions reductions that are fairly attributable to the
  installation of an alternative fuel fueling facility and the
  combustion of the alternative fuel in the vehicles fueled by the
  alternative fuel fueling facility.
         (d)  In connection with the study conducted under this
  section, the commission shall seek approval for credit in the state
  implementation plan from the United States Environmental
  Protection Agency for emissions reductions that can be:
               (1)  directly attributed to an alternative fuel fueling
  facility; and
               (2)  achieved as a consequence of an alternative fuel
  fueling facility encouraging the use of alternatively fueled
  vehicles.
         (e)  The commission shall include in the commission's
  biennial report to the legislature the findings of the study
  conducted under this section and the status of the discussions with
  the United States Environmental Protection Agency regarding credit
  for emissions reductions in the state implementation plan which can
  be achieved as a result of the installation of alternative fuel
  fueling facilities.
         (f)  This section expires August 31, 2011.
         SECTION 7.  Section 502.0022, Transportation Code, is
  repealed.
         SECTION 8.  (a)  The Texas Department of Transportation
  shall adopt the rules and establish the system required under
  Section 502.0023, Transportation Code, as added by this Act, not
  later than January 1, 2010.
         (b)  The Texas Commission on Environmental Quality shall
  adopt rules under Section 391.005, Health and Safety Code, as added
  by this Act, as soon as practicable after the effective date of this
  Act.
         SECTION 9.  This Act takes effect September 1, 2009.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1759 passed the Senate on
  April 20, 2009, by the following vote:  Yeas 30, Nays 0;
  May 29, 2009, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 30, 2009, House
  granted request of the Senate; May 31, 2009, Senate adopted
  Conference Committee Report by the following vote:  Yeas 31,
  Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1759 passed the House, with
  amendments, on May 27, 2009, by the following vote:  Yeas 146,
  Nays 2, one present not voting; May 30, 2009, House granted request
  of the Senate for appointment of Conference Committee;
  May 31, 2009, House adopted Conference Committee Report by the
  following vote:  Yeas 135, Nays 9, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor