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  H.B. No. 3399
 
 
 
 
AN ACT
  relating to the requirements for grant programs funded through the
  Texas emissions reduction plan.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 386.104, Health and Safety Code, is
  amended by adding Subsections (i), (j), (k), (l), and (m) to read as
  follows:
         (i)  If the commission determines that a heavy-duty motor
  vehicle or engine under this chapter must be decommissioned, the
  commission shall require the decommissioning to be carried out by
  crushing the vehicle, by making a hole in the engine block and
  permanently destroying the frame of the vehicle, or by another
  method approved by the commission that permanently removes the
  vehicle from operation in this state. The commission shall provide
  a means for an applicant to propose an alternative method for
  complying with the requirements of this subsection. The commission
  shall enforce the requirements of this subsection.
         (j)  The executive director shall waive any eligibility
  requirements established under this section on a finding of good
  cause, which may include a waiver for short lapses in registration
  or operation attributable to economic conditions, seasonal work, or
  other circumstances.
         (k)  The commission shall consider an application under this
  chapter for the replacement of a vehicle that has been owned,
  leased, or otherwise commercially financed by the applicant.  If
  the commission determines that a heavy-duty motor vehicle or engine
  that is leased or otherwise commercially financed must be
  decommissioned, the commission shall ensure that the applicant has
  a legal right to decommission the vehicle or engine before awarding
  a grant to the applicant.
         (l)  The commission shall consider an application for a
  vehicle replacement or a fleet expansion for a project with an
  activity life of five years or more, or 400,000 miles, whichever is
  earlier.
         (m)  The commission shall provide a form that minimizes, to
  the maximum extent possible, the amount of paperwork required.
         SECTION 2.  Section 391.002, Health and Safety Code, as
  added by Chapter 1232 (S.B. 1759), Acts of the 81st Legislature,
  Regular Session, 2009, is amended by amending Subsection (b) and
  adding Subsection (c) to read as follows:
         (b)  An entity that places 20 [25] or more qualifying
  vehicles in service for use entirely in this state during a calendar
  year is eligible to participate in the program.
         (c)  Notwithstanding Subsection (b), an entity that submits
  a grant application for 20 or more qualifying vehicles is eligible
  to participate in the program even if the commission denies
  approval for one or more of the vehicles during the application
  process.
         SECTION 3.  Section 391.004, Health and Safety Code, as
  added by Chapter 1232 (S.B. 1759), Acts of the 81st Legislature,
  Regular Session, 2009, is amended by amending Subsection (a) and
  adding Subsection (d) to read as follows:
         (a)  An entity operating in this state that operates a fleet
  of at least 75 [100] vehicles may apply for and receive a grant
  under the program.
         (d)  The commission shall minimize, to the maximum extent
  possible, the amount of paperwork required for an application. An
  applicant may be required to submit a photograph or other
  documentation of a vehicle identification number, registration
  information, inspection information, tire condition, or engine
  block identification only if the photograph or documentation is
  requested by the commission after the commission has decided to
  award a grant to the applicant under this chapter.
         SECTION 4.  Section 391.005, Health and Safety Code, as
  added by Chapter 1232 (S.B. 1759), Acts of the 81st Legislature,
  Regular Session, 2009, is amended by amending Subsections (b), (c),
  (d), and (f) and adding Subsection (i) to read as follows:
         (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,
  leased, or otherwise commercially financed and 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 until the earlier of the fifth
  anniversary of [for at least five years from] the date of
  reimbursement of the grant-funded expenses or until the date the
  vehicle has been in operation for 400,000 miles after the date of
  reimbursement.  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 contract [ownership and usage] requirements,
  including submission of reports on at least an annual basis, or more
  frequently as determined by the commission.
         (f)  A vehicle or engine replaced under this program must be
  rendered permanently inoperable by crushing the vehicle, by [or]
  making a hole in the engine block and permanently destroying the
  frame of the vehicle, or by another method approved by the
  commission that permanently removes the vehicle from operation in
  this state. The commission shall provide a means for an applicant to
  propose an alternative method of complying with the requirements of
  this subsection. [The commission shall establish criteria for
  ensuring the permanent destruction of the engine and vehicle.]  The
  commission shall [monitor and] enforce the [destruction]
  requirements of this subsection.
         (i)  The executive director shall waive the requirements of
  Subsection (b)(2)(A) on a finding of good cause, which may include a
  waiver for short lapses in registration or operation attributable
  to economic conditions, seasonal work, or other circumstances.
         SECTION 5.  Sections 386.104, 391.002, 391.004, and 391.005,
  Health and Safety Code, as amended by this Act, apply only to a
  grant application submitted to the Texas Commission on
  Environmental Quality on or after the effective date of this Act. A
  grant application submitted to the Texas Commission on
  Environmental Quality before the effective date of this Act is
  governed by the law in effect on the date the application was
  submitted, and the former law is continued in effect for that
  purpose.
         SECTION 6.  This Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3399 was passed by the House on May
  11, 2011, by the following vote:  Yeas 148, Nays 1, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 3399 was passed by the Senate on May
  25, 2011, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor