S.B. No. 1731
 
 
 
 
AN ACT
  relating to the repeal of laws governing certain state entities,
  including the functions of those entities, and to certain duties,
  responsibilities, and functions of the Texas Commission on
  Environmental Quality on the abolishment of certain of those
  entities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  AGRICULTURE AND WILDLIFE RESEARCH AND MANAGEMENT
  ADVISORY COMMITTEE. (a)  The Agriculture and Wildlife Research and
  Management Advisory Committee is abolished.
         (b)  Section 50.001, Agriculture Code, is amended to read as
  follows:
         Sec. 50.001.  PROGRAM. The Texas Agricultural Experiment
  Station[, in consultation with the Agriculture and Wildlife
  Research and Management Advisory Committee established under
  Section 88.216, Education Code,] shall develop and administer a
  program to finance agriculture and wildlife research that the Texas
  Agricultural Experiment Station determines to be of the highest
  scientific merit and to offer significant promise in providing new
  directions for long-term solutions to continued agriculture
  production, water availability, and wildlife habitat availability.
         (c)  Section 88.216, Education Code, is repealed.
         SECTION 2.  STATE OF TEXAS ANNIVERSARY REMEMBRANCE DAY MEDAL
  COMMITTEE. (a)  The State of Texas Anniversary Remembrance Day
  Medal Committee is abolished.
         (b)  Chapter 3103, Government Code, is repealed.
         SECTION 3.  TEXAS BIOENERGY POLICY COUNCIL AND TEXAS
  BIOENERGY RESEARCH COMMITTEE. (a)  The Texas Bioenergy Policy
  Council and the Texas Bioenergy Research Committee are abolished.
         (b)  Chapter 50D, Agriculture Code, is repealed.
         (c)  To the extent of any conflict, this section prevails
  over another Act of the 85th Legislature, Regular Session, 2017,
  relating to nonsubstantive additions to and corrections in enacted
  codes.
         SECTION 4.  BORDER SECURITY COUNCIL. (a)  The Border
  Security Council is abolished.
         (b)  Section 421.0025, Government Code, is repealed.
         SECTION 5.  COLLEGE OPPORTUNITY ACT COMMITTEE. (a)  The
  College Opportunity Act committee is abolished.
         (b)  Chapter 1233, Government Code, is repealed.
         SECTION 6.  TEXAS DISTINGUISHED SERVICE AWARDS COMMITTEE.
  (a)  The Texas Distinguished Service Awards Committee is
  abolished.
         (b)  Chapter 3102, Government Code, is repealed.
         SECTION 7.  ADVISORY BOARD OF ECONOMIC DEVELOPMENT
  STAKEHOLDERS. (a)  The advisory board of economic development
  stakeholders is abolished.
         (b)  Section 481.169, Government Code, is repealed.
         SECTION 8.  TEXAS EMISSIONS REDUCTION PLAN ADVISORY BOARD.
  (a)  The Texas Emissions Reduction Plan Advisory Board is abolished
  on the date that the programs described by Section 386.252(a),
  Health and Safety Code, and the funding for those programs are
  continued in effect.
         (a-1)  In effectuating the abolition of the Texas Emissions
  Reduction Plan Advisory Board, the Texas Commission on
  Environmental Quality shall complete any unfinished work of the
  abolished advisory board, including conducting the annual review of
  programs required under Section 386.057(a), Health and Safety Code.
  In conducting that annual review, the commission shall consider the
  feasibility and benefits of implementing a governmental
  alternative fuel fleet grant program. If the commission determines
  that implementing a governmental alternative fuel fleet grant
  program is feasible and would contribute to emissions reductions,
  the commission may adopt rules governing the program and the
  eligibility of entities to receive grants from the fund created
  under Section 386.251, Health and Safety Code.
         (a-2)  Notwithstanding any other provision of law, except as
  provided by Subsection (b) of this section, the programs described
  by Section 386.252(a), Health and Safety Code, and the funding for
  those programs are continued until the last day of the state fiscal
  biennium during which the United States Environmental Protection
  Agency publishes in the Federal Register certification that, with
  respect to each national ambient air quality standard for ozone
  under 40 C.F.R. Section 81.344, the agency has, for each designated
  area under that section, designated the area as attainment or
  unclassifiable or approved a redesignation substitute making a
  finding of attainment for the area.
         (b)  To the extent of a conflict between Subsection (a-2) of
  this section and any change in law made by another provision of this
  section, the change in law made by the other provision of this
  section controls.
         (b-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Subchapter B, Chapter 382, Health and Safety Code, is
  amended by adding Section 382.037 to read as follows:
         Sec. 382.037.  NOTICE IN TEXAS REGISTER REGARDING NATIONAL
  AMBIENT AIR QUALITY STANDARDS FOR OZONE. (a)  This section applies
  only if:
               (1)  with respect to each active or revoked national
  ambient air quality standard for ozone referenced in 40 C.F.R.
  Section 81.344, the United States Environmental Protection Agency
  has, for each designated area referenced in that section:
                     (A)  designated the area as attainment or
  unclassifiable/attainment; or
                     (B)  approved a redesignation substitute making a
  finding of attainment for the area; and
               (2)  for each designated area described by Subdivision
  (1), with respect to an action of the United States Environmental
  Protection Agency described by Subdivision (1)(A) or (B):
                     (A)  the action has been fully and finally upheld
  following judicial review or the limitations period to seek
  judicial review of the action has expired; and
                     (B)  the rules under which the action was approved
  by the agency have been fully and finally upheld following judicial
  review or the limitations period to seek judicial review of those
  rules has expired.
         (b)  Not later than the 30th day after the date the
  conditions described by Subsection (a) have been met, the
  commission shall publish notice in the Texas Register that, with
  respect to each active or revoked national ambient air quality
  standard for ozone referenced in 40 C.F.R. Section 81.344, the
  United States Environmental Protection Agency has, for each
  designated area referenced in that section:
               (1)  designated the area as attainment or
  unclassifiable/attainment; or
               (2)  approved a redesignation substitute making a
  finding of attainment for the area.
         (b-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 386.001(3), Health and Safety Code, is
  amended to read as follows:
               (3)  "Commission" means the Texas [Natural Resource
  Conservation] Commission on Environmental Quality.
         (c)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Section 386.002, Health and Safety Code, is amended to
  read as follows:
         Sec. 386.002.  EXPIRATION. This chapter expires on the last
  day of the state fiscal biennium during which the commission
  publishes in the Texas Register the notice required by Section
  382.037 [August 31, 2019].
         (c-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, 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) [386.252(a)];
               (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) [386.252(a)(14)];
               (10)  the clean fleet program established under Chapter
  392;
               (11)  the alternative fueling facilities program
  established under Chapter 393;
               (12)  the natural gas vehicle grant program [and clean
  transportation triangle 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; [and]
               (15)  the seaport and rail yard areas emissions
  reduction [drayage truck incentive] 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); and
               (18)  the governmental alternative fuel fleet grant
  program established under Chapter 395.
         (c-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Sections 386.0515(a) and (c), Health and Safety Code,
  are amended to read as follows:
         (a)  In this section:
               (1)  "Agricultural[, "agricultural] product
  transportation" means the transportation of a raw agricultural
  product from the place of production using a heavy-duty truck to:
                     (A) [(1)]  a nonattainment area;
                     (B) [(2)]  an affected county;
                     (C) [(3)]  a destination inside the clean
  transportation zone [triangle]; or
                     (D) [(4)]  a county adjacent to a county described
  by Paragraph (B) [Subdivision (2)] or that contains an area
  described by Paragraph (A) or (C) [Subdivision (1) or (3)].
               (2)  "Clean transportation zone" has the meaning
  assigned by Section 393.001.
         (c)  The determining factor for eligibility for
  participation in a program established under Chapter 392 or
  [Chapter] 394[, as added by Chapter 892 (Senate Bill No. 385), Acts
  of the 82nd Legislature, Regular Session, 2011,] for a project
  relating to agricultural product transportation is the overall
  accumulative net reduction in emissions of oxides of nitrogen in a
  nonattainment area, an affected county, or the clean transportation
  zone [triangle].
         (d)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Sections 386.057(a) and (b), Health and Safety Code, are
  amended to read as follows:
         (a)  The commission[, in consultation with the advisory
  board,] annually shall review programs established under the plan,
  including each project funded under the plan, the amount granted
  for the project, the emissions reductions attributable to the
  project, and the cost-effectiveness of the project.
         (b)  Not later than December 1, 2002, and not later than
  December 1 of each subsequent second year, the commission[, in
  consultation with the advisory board,] shall publish and submit to
  the legislature a biennial plan report. The report must include:
               (1)  the information included in the annual reviews
  conducted under Subsection (a);
               (2)  specific information for individual projects as
  required by Subsection (c);
               (3)  information contained in reports received under
  Sections 386.205, 388.003(e), 388.006, and 391.104; and
               (4)  a summary of the commission's activities under
  Section 386.052.
         (d-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 386.103, Health and Safety Code, is amended
  by adding Subsection (c) to read as follows:
         (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 and recopying
  of applications; and
               (2)  developing, maintaining, and periodically
  updating a system to accept applications electronically through the
  commission's Internet website.
         (d-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Sections 386.104(f) and (j), Health and Safety Code,
  are amended to read as follows:
         (f)  A proposed retrofit, repower, replacement, or add-on
  equipment project must document, in a manner acceptable to the
  commission, a reduction in emissions of oxides of nitrogen of at
  least 30 percent compared with the baseline emissions adopted by
  the commission for the relevant engine year and application. After
  study of available emissions reduction technologies and[,] after
  public notice and comment, [and after consultation with the
  advisory board,] the commission may revise the minimum percentage
  reduction in emissions of oxides of nitrogen required by this
  subsection to improve the ability of the program to achieve its
  goals.
         (j)  The executive director may [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.
         (e)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Sections 386.107, 386.114, and 386.115, Health and Safety
  Code, are amended to read as follows:
         Sec. 386.107.  ADJUSTMENT TO MAXIMUM COST-EFFECTIVENESS
  AMOUNT AND AWARD AMOUNT. After study of available emissions
  reduction technologies and costs and after public notice and
  comment, the commission[, in consultation with the advisory board,]
  may change the values of the maximum grant award criteria
  established in Section 386.106 to account for inflation or to
  improve the ability of the program to achieve its goals.
         Sec. 386.114.  MODIFICATION OF INCENTIVE EMISSIONS
  STANDARDS. After evaluating new technologies and after public
  notice and comment, the commission[, in consultation with the
  advisory board,] may change the incentive emissions standards
  established by Section 386.113 to improve the ability of the
  program to achieve its goals.
         Sec. 386.115.  MODIFICATION OF VEHICLE ELIGIBILITY. After
  evaluating the availability of vehicles meeting the emissions
  standards and after public notice and comment, the commission[, in
  consultation with the advisory board,] may expand the program to
  include other on-road vehicles, regardless of fuel type used, that
  meet the emissions standards, have a gross vehicle weight rating of
  greater than 8,500 pounds, and are purchased or leased in lieu of a
  new on-road diesel.
         (e-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Sections 386.116(a), (b), and (c), Health and Safety
  Code, are amended to read as follows:
         (a)  In this section, "small business" means a business owned
  by a person who:
               (1)  owns and operates not more than five [two]
  vehicles, one of which is:
                     (A)  an on-road diesel [with a pre-1994 engine
  model]; or
                     (B)  a non-road diesel [with an engine with
  uncontrolled emissions]; and
               (2)  has owned the vehicle described by Subdivision
  (1)(A) or (B) for more than two years [one year].
         (b)  The commission [by rule] shall develop a method of
  providing fast and simple access to grants under this subchapter
  for a small business. The method must:
               (1)  create a separate small business grant program; or
               (2)  require the commission to give special
  consideration to small businesses when implementing another
  program established under this subchapter.
         (c)  The commission shall publicize and promote the
  availability of grants under this subchapter for small businesses
  [section] to encourage the use of vehicles that produce fewer
  emissions.
         (e-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Chapter 386, Health and Safety Code, is amended by
  adding Subchapter D to read as follows:
  SUBCHAPTER D.  MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM
         Sec. 386.151.  DEFINITIONS. In this subchapter:
               (1)  "Light-duty motor vehicle" means a motor vehicle
  with a gross vehicle weight rating of less than 10,000 pounds.
               (2)  "Motor vehicle" means a self-propelled device
  designed for transporting persons or property on a public highway
  that is required to be registered under Chapter 502, Transportation
  Code.
         Sec. 386.152.  APPLICABILITY. The provisions of this
  subchapter relating to a lessee do not apply to a person who rents
  or leases a light-duty motor vehicle for a term of 30 days or less.
         Sec. 386.153.  COMMISSION DUTIES REGARDING LIGHT-DUTY MOTOR
  VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM. (a)  The commission
  shall develop a purchase or lease incentive program for new
  light-duty motor vehicles and shall adopt rules necessary to
  implement the program.
         (b)  The program shall authorize statewide incentives for
  the purchase or lease of new light-duty motor vehicles powered by
  compressed natural gas, liquefied petroleum gas, or hydrogen fuel
  cell or other electric drives for a purchaser or lessee who agrees
  to register and operate the vehicle in this state for a minimum
  period of time to be established by the commission.
         (c)  Only one incentive will be provided for each new
  light-duty motor vehicle. The incentive shall be provided to the
  lessee and not to the purchaser if the motor vehicle is purchased
  for the purpose of leasing the vehicle to another person.
         (d)  The commission by rule may revise the standards for the
  maximum unloaded vehicle weight rating and gross vehicle weight
  rating of an eligible vehicle to ensure that all of the vehicle
  weight configurations available under one general vehicle model may
  be eligible for an incentive.
         Sec. 386.154.  LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
  INCENTIVE REQUIREMENTS. (a)  A new light-duty motor vehicle
  powered by compressed natural gas or liquefied petroleum gas is
  eligible for a $5,000 incentive if the vehicle:
               (1)  has four wheels;
               (2)  was originally manufactured to comply with and has
  been certified by an original equipment manufacturer or
  intermediate or final state vehicle manufacturer as complying with,
  or has been altered to comply with, federal motor vehicle safety
  standards, state emissions regulations, and any additional federal
  or state regulations applicable to vehicles powered by compressed
  natural gas or liquefied petroleum gas;
               (3)  was manufactured for use primarily on public
  streets, roads, and highways;
               (4)  has a dedicated or bi-fuel compressed natural gas
  or liquefied petroleum gas fuel system:
                     (A)  installed prior to first sale or within 500
  miles of operation of the vehicle following first sale; and
                     (B)  with a range of at least 125 miles as
  estimated, published, and updated by the United States
  Environmental Protection Agency;
               (5)  has, as applicable, a:
                     (A)  compressed natural gas fuel system that
  complies with the:
                           (i)  2013 NFPA 52 Vehicular Gaseous Fuel
  Systems Code; and
                           (ii)  American National Standard for Basic
  Requirements for Compressed Natural Gas Vehicle (NGV) Fuel
  Containers, commonly cited as "ANSI/CSA NGV2"; or
                     (B)  liquefied petroleum gas fuel system that
  complies with:
                           (i)  the 2011 NFPA 58 Liquefied Petroleum
  Gas Code; and
                           (ii)  Section VII of the 2013 ASME Boiler and
  Pressure Vessel Code; and
               (6)  was acquired on or after September 1, 2013, or a
  later date established by the commission, by the person applying
  for the incentive under this subsection and for use or lease by that
  person and not for resale.
         (b)  If the commission determines that an updated version of
  a code or standard described by Subsection (a)(5) is more stringent
  than the version of the code or standard described by Subsection
  (a)(5), the commission by rule may provide that a vehicle for which
  a person applies for an incentive under Subsection (a) is eligible
  for the incentive only if the vehicle complies with the updated
  version of the code or standard.
         (c)  The incentive under Subsection (a) is limited to 1,000
  vehicles for each state fiscal biennium.
         (d)  A new light-duty motor vehicle powered by an electric
  drive is eligible for a $2,500 incentive if the vehicle:
               (1)  has four wheels;
               (2)  was manufactured for use primarily on public
  streets, roads, and highways;
               (3)  has not been modified from the original
  manufacturer's specifications;
               (4)  has a maximum speed capability of at least 55 miles
  per hour;
               (5)  is propelled to a significant extent by an
  electric motor that draws electricity from a hydrogen fuel cell or
  from a battery that:
                     (A)  has a capacity of not less than four kilowatt
  hours; and
                     (B)  is capable of being recharged from an
  external source of electricity; and
               (6)  was acquired on or after September 1, 2013, or a
  later date as established by the commission, by the person applying
  for the incentive under this subsection and for use or lease by that
  person and not for resale.
         (e)  The incentive under Subsection (d) is limited to 2,000
  vehicles for each state fiscal biennium.
         Sec. 386.155.  MANUFACTURER'S REPORT. (a)  At the beginning
  of but not later than July 1 of each year preceding the vehicle
  model year, a manufacturer of motor vehicles, an intermediate or
  final state vehicle manufacturer, or a manufacturer of compressed
  natural gas or liquefied petroleum gas systems shall provide to the
  commission a list of the new vehicle or natural gas or liquefied
  petroleum gas systems models that the manufacturer intends to sell
  in this state during that model year that meet the incentive
  requirements established under Section 386.154. The manufacturer
  or installer may supplement the list provided to the commission
  under this section as necessary to include additional new vehicle
  models the manufacturer intends to sell in this state during the
  model year.
         (b)  The commission may supplement the information provided
  under Subsection (a) with additional information on available
  vehicle models, including information provided by manufacturers or
  installers of systems to convert new motor vehicles to operate on
  natural gas or liquefied petroleum gas before sale as a new vehicle
  or within 500 miles of operation of the vehicle following first
  sale.
         Sec. 386.156.  LIST OF ELIGIBLE MOTOR VEHICLES. (a)  On
  August 1 of each year the commission shall publish a list of new
  motor vehicle models eligible for inclusion in an incentive under
  this subchapter. The commission shall publish supplements to that
  list as necessary to include additional new vehicle models.
         (b)  The commission shall publish the list of eligible motor
  vehicle models on the commission's Internet website.
         Sec. 386.157.  LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE
  INCENTIVE. (a)  A person who purchases or leases a new light-duty
  motor vehicle described by Section 386.154 and listed under Section
  386.156(a) is eligible to apply for an incentive under this
  subchapter.
         (b)  A lease incentive for a new light-duty motor vehicle
  shall be prorated based on a three-year lease term.
         (c)  To receive money under an incentive program provided by
  this subchapter, the purchaser or lessee of a new light-duty motor
  vehicle who is eligible to apply for an incentive under this
  subchapter shall apply for the incentive in the manner provided by
  law or by rule of the commission.
         Sec. 386.158.  COMMISSION TO ACCOUNT FOR MOTOR VEHICLE
  PURCHASE OR LEASE INCENTIVES. (a)  The commission by rule shall
  develop a method to administer and account for the motor vehicle
  purchase or lease incentives authorized by this subchapter and to
  pay incentive money to the purchaser or lessee of a new motor
  vehicle, on application of the purchaser or lessee as provided by
  this subchapter.
         (b)  The commission shall develop and publish forms and
  instructions for the purchaser or lessee of a new motor vehicle to
  use in applying to the commission for an incentive payment under
  this subchapter. The commission shall make the forms available to
  new motor vehicle dealers and leasing agents. Dealers and leasing
  agents shall make the forms available to their prospective
  purchasers or lessees.
         (c)  The commission may require the submission of forms and
  documentation as needed to verify eligibility for an incentive
  under this subchapter.
         Sec. 386.159.  PURCHASE OR LEASE INCENTIVES INFORMATION.
  (a)  The commission shall establish a toll-free telephone number
  available to motor vehicle dealers and leasing agents for the
  dealers and agents to call to verify that incentives are available.
  The commission may provide for issuing verification numbers over
  the telephone line.
         (b)  Reliance by a dealer or leasing agent on information
  provided by the commission is a complete defense to an action
  involving or based on eligibility of a vehicle for an incentive or
  availability of vehicles eligible for an incentive.
         Sec. 386.160.  RESERVATION OF INCENTIVES. The commission
  may provide for dealers and leasing agents to reserve for a limited
  time period incentives for vehicles that are not readily available
  and must be ordered, if the dealer or leasing agent has a purchase
  or lease order signed by an identified customer.
         (f)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, the heading to Subchapter D-1, Chapter 386, Health and
  Safety Code, is amended to read as follows:
  SUBCHAPTER D-1. SEAPORT AND RAIL YARD AREAS EMISSIONS REDUCTION
  [DRAYAGE TRUCK INCENTIVE] PROGRAM
         (f-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, the heading to Section 386.181, Health and Safety
  Code, is amended to read as follows:
         Sec. 386.181.  DEFINITIONS [DEFINITION]; RULES.
         (f-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 386.181(a), Health and Safety Code, is
  amended to read as follows:
         (a)  In this subchapter:
               (1)  "Cargo handling equipment" means any heavy-duty
  non-road, self-propelled vehicle or land-based equipment used at a
  seaport or rail yard to lift or move cargo, such as containerized,
  bulk, or break-bulk goods.
               (2)  "Drayage[, "drayage] truck" means a heavy-duty
  on-road or non-road vehicle that is used for drayage activities and
  that operates in or transgresses through [truck that transports a
  load to or from] a seaport or rail yard for the purpose of loading,
  unloading, or transporting cargo, including transporting empty
  containers and chassis.
               (3)  "Repower" means to replace an old engine powering
  a vehicle with a new engine, a used engine, a remanufactured engine,
  or electric motors, drives, or fuel cells.
         (g)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Section 386.182, Health and Safety Code, is amended to
  read as follows:
         Sec. 386.182.  COMMISSION DUTIES. (a)  The commission
  shall:
               (1)  develop a purchase incentive program to encourage
  owners to:
                     (A)  replace older drayage trucks and cargo
  handling equipment [with pre-2007 model year engines] with newer
  drayage trucks and cargo handling equipment; or
                     (B)  repower drayage trucks and cargo handling
  equipment; and
               (2)  [shall] adopt guidelines necessary to implement
  the program described by Subdivision (1).
         (b)  The commission by rule and guideline shall establish
  criteria for the engines and the models of drayage trucks and cargo
  handling equipment that are eligible for inclusion in an incentive
  program under this subchapter.  [The guidelines must provide that a
  drayage truck owner is not eligible for an incentive payment under
  this subchapter unless the truck being replaced contains a pre-2007
  model year engine and the replacement truck's engine is from model
  year 2010 or later as determined by the commission and that the
  truck operates at a seaport or rail yard.]
         (g-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, the heading to Section 386.183, Health and Safety
  Code, is amended to read as follows:
         Sec. 386.183.  DRAYAGE TRUCK AND CARGO HANDLING EQUIPMENT
  PURCHASE INCENTIVE.
         (g-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 386.183, Health and Safety Code, is amended
  by amending Subsections (a), (b), (c), (d), and (e) and adding
  Subsection (a-1) to read as follows:
         (a)  To be eligible for an incentive under this subchapter, a
  person must:
               (1)  purchase a replacement drayage truck, piece of
  cargo handling equipment, or engine that under Subsection
  (a-1)(1)(A) or (2)(A), as applicable, and the guidelines adopted by
  the commission under Section 386.182 is eligible for inclusion in
  the program for an incentive under this subchapter; and
               (2)  agree to:
                     (A)  register the drayage truck in this state, if
  the replacement or repowered vehicle is an on-road drayage truck;
                     (B)  operate the replacement or repowered drayage
  truck or cargo handling equipment in and within a maximum distance
  established by the commission of a seaport or rail yard in a
  nonattainment area of this state for not less than 50 percent of the
  truck's or equipment's [vehicle's] annual mileage or hours of
  operation, as determined by the commission; and
                     (C)  permanently remove the [a pre-2007] drayage
  truck, cargo handling equipment, or engine replaced under the
  program [containing a pre-2007 engine owned by the person] from
  operation in a nonattainment area of this state by destroying the
  engine in accordance with guidelines established by the commission
  and, if the incentive is for a replacement drayage truck or cargo
  handling equipment, scrapping the truck or equipment after the
  purchase of the replacement [new] truck or equipment in accordance
  with guidelines established by the commission.
         (a-1)  To be eligible for purchase under this program:
               (1)  a drayage truck or cargo handling equipment must:
                     (A)  be powered by an electric motor or contain an
  engine certified to the current federal emissions standards
  applicable to that type of engine, as determined by the commission;
  and
                     (B)  emit oxides of nitrogen at a rate that is at
  least 25 percent less than the rate at which the truck or equipment
  being replaced under the program emits such pollutants; and
               (2)  an engine repowering a drayage truck or cargo
  handling equipment must:
                     (A)  be an electric motor or an engine certified
  to the current federal emissions standards applicable to that type
  of engine, as determined by the commission; and
                     (B)  emit oxides of nitrogen at a rate that is at
  least 25 percent less than the rate at which the former engine in
  the truck or equipment being repowered under the program emits such
  pollutants.
         (b)  To receive money under an incentive program provided by
  this subchapter, the purchaser of a drayage truck, piece of cargo
  handling equipment, or engine eligible for inclusion in the program
  must apply for the incentive in the manner provided by law, rule, or
  guideline of the commission.
         (c)  Not more than one incentive may be provided for each
  drayage truck or piece of cargo handling equipment purchased or
  repowered.
         (d)  An incentive provided under this subchapter may be used
  to fund not more than 80 percent of, as applicable, the purchase
  price of:
               (1)  the drayage truck or cargo handling equipment; or
               (2)  the engine and any other eligible costs associated
  with repowering the drayage truck or cargo handling equipment, as
  determined by the commission.
         (e)  The commission shall establish procedures to verify
  that a person who receives an incentive:
               (1)  has operated in a seaport or rail yard and owned or
  leased the drayage truck or cargo handling equipment to be replaced
  or repowered for at least two years prior to receiving the grant;
  and
               (2)  as applicable:
                     (A)  after purchase of the replacement drayage
  truck or cargo handling equipment, permanently destroys the engine
  and scraps the [drayage] truck or equipment replaced under the
  program [that contained the pre-2007 engine owned or leased by the
  person,] in accordance with guidelines established by the
  commission; or
                     (B)  after repowering the drayage truck or cargo
  handling equipment, permanently destroys the engine that was
  contained in the truck or equipment in accordance with guidelines
  established by the commission[, after the purchase of the new
  truck].
         (h)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Section 386.252, Health and Safety Code, is amended to
  read as follows:
         Sec. 386.252.  USE OF FUND. (a)  Money in the fund 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), money [Money] appropriated to the commission
  to be used for the programs under Section 386.051(b) shall
  initially 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] three percent may be used for 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;
               (3)  five percent may [shall] be used for the 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)  10 [not less than 16] percent may [shall] be used
  for the Texas natural gas vehicle grant program under Chapter 394;
               (6)  not more than $6 million [five percent] may be used
  [to provide grants for natural gas fueling stations under the clean
  transportation triangle program under Section 394.010;
               [(7)  not more than five percent 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) [(8)]  not more than $750,000 [a specified amount]
  may be used each year to support research related to air quality as
  provided by Chapter 387;
               (8) [(9)]  not more than $200,000 may be used for a
  health effects study[;
               [(10)     $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];
               (9) [(11)]  at least $6 [$4] million but not more than
  $8 [and up to four percent to a maximum of $7] million[, whichever
  is greater,] is allocated to 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 [(12)  at least two] percent may [and up to
  five percent of the fund is to] be used by the commission for the
  seaport and rail yard areas emissions reduction [drayage truck
  incentive] program established under Subchapter D-1;
               (11) [(13)  not more than] five percent may be used for
  the light-duty motor vehicle purchase or lease incentive program
  established under Subchapter D;
               (12) [(14)]  not more than $216,000 is allocated to 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 obtained through wind and other renewable
  energy resources for the state implementation plan;
               (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 [(15)     1.5 percent of the money in the fund is allocated for
  administrative costs incurred by the laboratory]; and
               (14) [(16)]  the balance is to be used by the
  commission for the diesel emissions reduction incentive program
  under Subchapter C as determined by the commission.
         (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.
         [(e-1)     Money allocated under Subsection (a) to a particular
  program may be used for another program under the plan as determined
  by the commission.
         [(f)]  Money in the fund may be used by the commission for
  programs under Sections 386.051(b)(13), (b)(14), and (b-1) as may
  be appropriated for those programs.
         (c) [(g)]  If the legislature does not specify amounts or
  percentages from the total appropriation to the commission to be
  allocated under Subsection (a) or (b) [(f)], the commission shall
  determine the amounts of the total appropriation to be allocated
  under each of those subsections, such that the total appropriation
  is expended while maximizing emissions reductions.
         (d)  To supplement funding for air quality planning
  activities in affected counties, $500,000 from the fund is to be
  deposited annually in the state treasury to the credit of the clean
  air account created under Section 382.0622.
         (e)  Money in the fund may be allocated for administrative
  costs incurred by the Energy Systems Laboratory at the Texas A&M
  Engineering Experiment Station as may be appropriated by the
  legislature.
         (f)  To the extent that money is appropriated from the fund
  for that purpose, not more than $2.5 million may be used by the
  commission to conduct 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.
         (g)  To the extent that money is appropriated from the fund
  for that purpose, the commission may use that money to award grants
  under the governmental alternative fuel fleet grant program
  established under Chapter 395, except that the commission may not
  use for that purpose more than three percent of the balance of the
  fund as of September 1 of each state fiscal year of the biennium for
  the governmental alternative fuel fleet grant program in that
  fiscal year.
         (h)  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, based on demand for grants for eligible projects under
  particular programs after the commission solicits projects to which
  to award grants according to the initial allocation provisions of
  this section.
         (h-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 390.001, Health and Safety Code, is amended
  by amending Subdivision (1) and adding Subdivision (1-a) to read as
  follows:
               (1)  "Commission" means the Texas Commission on
  Environmental Quality.
               (1-a)  "Diesel exhaust" means one or more of the air
  pollutants emitted from an engine by the combustion of diesel fuel,
  including particulate matter, nitrogen oxides, volatile organic
  compounds, air toxics, and carbon monoxide.
         (h-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 390.002(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)  diesel oxidation catalysts for school buses built
  before 1994;
               (2)  diesel particulate filters for school buses built
  from 1994 to 1998;
               (3)  the purchase and use of emission-reducing add-on
  equipment for school buses, including devices that reduce crankcase
  emissions;
               (4)  the use of qualifying fuel; [and]
               (5)  other technologies that the commission finds will
  bring about significant emissions reductions; and
               (6)  replacement of a pre-2007 model year school bus.
         (i)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Section 390.004, Health and Safety Code, is amended by
  adding Subsections (c) and (d) to read as follows:
         (c)  A school bus proposed for replacement must:
               (1)  be of model year 2006 or earlier;
               (2)  have been owned and operated by the applicant for
  at least the two years before submission of the grant application; 
               (3)  be in good operational condition; and
               (4)  be currently used on a regular, daily route to and
  from a school.
         (d)  A school bus proposed for purchase to replace a pre-2007
  model year school bus must be of the current model year or the year
  before the current model year at the time of submission of the grant
  application.
         (i-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 390.005, Health and Safety Code, is amended
  to read as follows:
         Sec. 390.005.  RESTRICTION ON USE OF GRANT. (a)  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 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.
         (b)  A school bus acquired to replace an existing school bus
  must be purchased and the grant recipient must agree to own and
  operate the school bus on a regular, daily route to and from a
  school for at least five years after a start date established by the
  commission, based on the date the commission accepts documentation
  of the permanent destruction or permanent removal of the school bus
  being replaced.
         (c)  A school bus replaced under this program must be
  rendered permanently inoperable by crushing the bus, by making a
  hole in the engine block and permanently destroying the frame of the
  bus, or by another method approved by the commission, or be
  permanently removed from operation in this state.  The commission
  shall establish criteria for ensuring the permanent destruction or
  permanent removal of the engine or bus.  The commission shall
  enforce the destruction and removal requirements.
         (d)  In this section, "permanent removal" means the
  permanent export of a school bus or the engine of a school bus to a
  destination outside of the United States, Canada, or the United
  Mexican States.
         (i-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 390.006, Health and Safety Code, is amended
  to read as follows:
         Sec. 390.006.  EXPIRATION. This chapter expires on the last
  day of the state fiscal biennium during which the commission
  publishes in the Texas Register the notice required by Section
  382.037 [August 31, 2019].
         (j)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, 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 [point] sources;
               (3)  new technology projects that reduce emissions from
  upstream and midstream oil and gas production, completions,
  gathering, storage, processing, and transmission 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 by capturing waste heat
  to generate electricity solely for on-site service; and
               (4) [(3)]  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.
         (j-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 391.102(f), Health and Safety Code, is
  amended to read as follows:
         (f)  In reviewing a grant application under this chapter
  [coordinating interagency application review procedures], the
  commission may [shall]:
               (1)  solicit review and comments from:
                     (A)  the comptroller to assess:
                           (i)  the financial stability of the
  applicant;
                           (ii)  the economic benefits and job creation
  potential associated with the project; and
                           (iii)  any other information related to the
  duties of that office;
                     (B)  the Public Utility Commission of Texas to
  assess:
                           (i)  the reliability of the proposed
  technology;
                           (ii)  the feasibility and
  cost-effectiveness of electric transmission associated with the
  project; and
                           (iii)  any other information related to the
  duties of that agency; and
                     (C)  the Railroad Commission of Texas to assess:
                           (i)  the availability and cost of the fuel
  involved with the project; and
                           (ii)  any other information related to the
  duties of that agency; and
               (2)  consider the comments received under Subdivision
  (1) in the commission's grant award decision process[; and
               [(3)     as part of the report required by Section
  391.104, justify awards made to projects that have been negatively
  reviewed by agencies under Subdivision (1)].
         (j-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 391.104, Health and Safety Code, is amended
  to read as follows:
         Sec. 391.104.  REPORTING REQUIREMENTS. The commission
  [annually] shall include in the biennial plan report required by
  Section 386.057(b) information [prepare a report] that summarizes
  the applications received and grants awarded in the preceding
  biennium [year]. Preparation of the information for the report may
  [must] include the participation of any [the] state agency
  [agencies] involved in the review of applications under Section
  391.102, if the commission determines participation of the agency
  is needed.
         (k)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Section 391.205(a), Health and Safety Code, is amended to
  read as follows:
         (a)  Except as provided by Subsection (c), in awarding grants
  under this chapter the commission shall give preference to projects
  that:
               (1)  involve the transport, use, recovery for use, or
  prevention of the loss of natural resources originating or produced
  in this state;
               (2)  contain an energy efficiency component; [or]
               (3)  include the use of solar, wind, or other renewable
  energy sources; or
               (4)  recover waste heat from the combustion of natural
  resources and use the heat to generate electricity.
         (k-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 391.304, Health and Safety Code, is amended
  to read as follows:
         Sec. 391.304.  EXPIRATION. This chapter expires on the last
  day of the state fiscal biennium during which the commission
  publishes in the Texas Register the notice required by Section
  382.037 [August 31, 2019].
         (k-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 392.001(1), Health and Safety Code, is
  amended to read as follows:
               (1)  "Alternative fuel" means a fuel other than
  gasoline or diesel fuel, including electricity, compressed natural
  gas, liquefied [liquified] natural gas, hydrogen, propane, or a
  mixture of fuels containing at least 85 percent methanol by volume.
         (l)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Sections 392.002(b) and (c), Health and Safety Code, are
  amended to read as follows:
         (b)  An entity that places 10 [20] 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 10 [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.
         (l-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 392.003(a), Health and Safety Code, is
  amended to read as follows:
         (a)  A vehicle is a qualifying vehicle that may be considered
  for a grant under the program if during the eligibility period
  established by the commission [calendar year] the entity purchases
  a new on-road vehicle that:
               (1)  is certified to the appropriate current federal
  emissions standards as determined by the commission;
               (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.
         (l-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 392.004(d), Health and Safety Code, is
  amended to read as follows:
         (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.]
         (m)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Section 392.005, Health and Safety Code, is amended by
  amending Subsections (c) and (i) and adding Subsection (c-1) to
  read as follows:
         (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 the activity start date established by the
  commission [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 activity start date established by the commission
  [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.
         (c-1)  For purposes of Subsection (c), the commission shall
  establish the activity start date based on the date the commission
  accepts verification of the disposition of the vehicle being
  replaced.
         (i)  The executive director may [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.
         (m-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 392.008, Health and Safety Code, is amended
  to read as follows:
         Sec. 392.008.  EXPIRATION. This chapter expires on the last
  day of the state fiscal biennium during which the commission
  publishes in the Texas Register the notice required by Section
  382.037 [August 31, 2017].
         (m-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 393.001, Health and Safety Code, is amended
  by amending Subdivision (1) and adding Subdivision (1-a) to read as
  follows:
               (1)  "Alternative fuel" means a fuel other than
  gasoline or diesel fuel, other than biodiesel fuel, including
  electricity, compressed natural gas, liquefied [liquified] natural
  gas, hydrogen, propane, or a mixture of fuels containing at least 85
  percent methanol by volume.
               (1-a)  "Clean transportation zone" means:
                     (A)  counties containing or intersected by a
  portion of an interstate highway connecting the cities of Houston,
  San Antonio, Dallas, and Fort Worth;
                     (B)  counties located within the area bounded by
  the interstate highways described by Paragraph (A);
                     (C)  counties containing or intersected by a
  portion of:
                           (i)  an interstate highway connecting San
  Antonio to Corpus Christi or Laredo;
                           (ii)  the most direct route using highways
  in the state highway system connecting Corpus Christi and Laredo;
  or
                           (iii)  a highway corridor connecting Corpus
  Christi and Houston;
                     (D)  counties located within the area bounded by
  the highways described by Paragraph (C);
                     (E)  counties in this state all or part of which
  are included in a nonattainment area designated under Section
  107(d) of the federal Clean Air Act (42 U.S.C. Section 7407); and
                     (F)  counties designated as affected counties
  under Section 386.001.
         (n)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Section 393.002, Health and Safety Code, is amended to
  read as follows:
         Sec. 393.002.  PROGRAM. (a)  The commission shall establish
  and administer the Texas alternative fueling facilities program to
  provide fueling facilities for alternative fuel in the clean
  transportation zone [nonattainment areas].  Under the program, the
  commission shall provide a grant for each eligible facility to
  offset the cost of those facilities.
         (b)  An entity that constructs or[,] reconstructs[, or
  acquires] an alternative fueling facility is eligible to
  participate in the program.
         (c)  To ensure that alternative fuel vehicles have access to
  fuel and to build the foundation for a self-sustaining market for
  alternative fuels in Texas, the commission shall provide for
  strategically placed fueling facilities in the clean
  transportation zone to enable an alternative fuel vehicle to travel
  in those areas relying solely on the alternative fuel.
         (d)  The commission shall maintain a listing to be made
  available to the public online of all vehicle fueling facilities
  that have received grant funding, including location and hours of
  operation.
         (n-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 393.003, Health and Safety Code, is amended
  by amending Subsections (a) and (b) and adding Subsections (d) and
  (e) to read as follows:
         (a)  An entity operating in this state that constructs or[,]
  reconstructs[, or acquires] a facility to [store, compress, or]
  dispense alternative fuels 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.
         (d)  An application for a grant under the program must
  include a certification that the applicant complies with laws,
  rules, guidelines, and requirements applicable to taxation of fuel
  provided by the applicant at each fueling facility owned or
  operated by the applicant. The commission may terminate a grant
  awarded under this section without further obligation to the grant
  recipient if the commission determines that the recipient did not
  comply with a law, rule, guideline, or requirement described by
  this subsection. This subsection does not create a cause of action
  to contest an application or award of a grant.
         (e)  The commission shall disburse grants under the program
  through a competitive application selection process to offset a
  portion of the eligible costs.
         (n-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 393.004, Health and Safety Code, is amended
  to read as follows:
         Sec. 393.004.  ELIGIBILITY OF FACILITIES FOR GRANTS.
  (a)  In addition to the requirements of this chapter, the
  commission shall establish additional eligibility and
  prioritization criteria as needed to implement the program [The
  commission by rule shall establish criteria for prioritizing
  facilities eligible to receive grants under this chapter.   The
  commission shall review and revise the criteria as appropriate].
         (b)  The prioritization criteria established under
  Subsection (a) must provide that, for each grant round, the
  commission may not award a grant to an entity that does not [To be
  eligible for a grant under the program, the entity receiving the
  grant must] agree to make the alternative fueling facility
  accessible and available to the public [persons not associated with
  the entity] at times designated by the grant contract until each
  eligible entity that does agree to those terms has been awarded a
  grant [agreement].
         (c)  The commission may not award more than one grant for
  each facility.
         (d)  The commission may give preference to or otherwise limit
  grant selections to:
               (1)  fueling facilities providing specific types of
  alternative fuels;
               (2)  fueling facilities in a specified area or
  location; and
               (3)  fueling facilities meeting other specified
  prioritization criteria established by the commission.
         (e)  For fueling facilities to provide natural gas, the
  commission shall give preference to:
               (1)  facilities providing both liquefied natural gas
  and compressed natural gas at a single location;
               (2)  facilities located not more than one mile from an
  interstate highway system;
               (3)  facilities located in the area in and between the
  Houston, San Antonio, and Dallas-Fort Worth areas; and
               (4)  facilities located in the area in and between the
  Corpus Christi, Laredo, and San Antonio areas [A recipient of a
  grant under this chapter is not eligible to receive a second grant
  under this chapter for the same facility].
         (o)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Section 393.005, Health and Safety Code, is amended to
  read as follows:
         Sec. 393.005.  RESTRICTION ON USE OF GRANT.  (a)  A
  recipient of a grant under this chapter shall use the grant only to
  pay the costs of the facility for which the grant is made.  The
  recipient may not use the grant to pay the recipient's:
               (1)  administrative expenses;
               (2)  expenses for the purchase of land or an interest in
  land; or
               (3)  expenses for equipment or facility improvements
  that are not directly related to the delivery, storage,
  compression, or dispensing of the alternative fuel at the facility.
         (b)  Each grant must be awarded using a contract that
  requires the recipient to meet operational, maintenance, and
  reporting requirements as specified by the commission.
         (o-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 393.006, Health and Safety Code, is amended
  to read as follows:
         Sec. 393.006.  AMOUNT OF GRANT.  (a)  Grants awarded under
  this chapter for a facility to provide alternative fuels other than
  natural gas may not exceed [For each eligible facility for which a
  recipient is awarded a grant under the program, the commission
  shall award the grant in an amount equal to] the lesser of:
               (1)  50 percent of the sum of the actual eligible costs
  incurred by the grant recipient within deadlines established by the
  commission [to construct, reconstruct, or acquire the facility]; or
               (2)  $600,000.
         (b)  Grants awarded under this chapter for a facility to
  provide natural gas may not exceed:
               (1)  $400,000 for a compressed natural gas facility;
               (2)  $400,000 for a liquefied natural gas facility; or
               (3)  $600,000 for a facility providing both liquefied
  and compressed natural gas.
         (o-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 393.007, Health and Safety Code, is amended
  to read as follows:
         Sec. 393.007.  EXPIRATION.  This chapter expires on the last
  day of the state fiscal biennium during which the commission
  publishes in the Texas Register the notice required by Section
  382.037 [August 31, 2018].
         (p)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Section 394.001, Health and Safety Code, is amended by
  amending Subdivisions (1), (4), (5), and (8) and adding
  Subdivisions (1-a) and (7-a) to read as follows:
               (1)  "Certified" includes:
                     (A)  new vehicle or new engine certification by
  the United States Environmental Protection Agency; or
                     (B)  certification or approval by the United
  States Environmental Protection Agency of a system to convert a
  vehicle or engine to operate on an alternative fuel and a
  demonstration by the emissions data used to certify or approve the
  vehicle or engine, if the commission determines the testing used to
  obtain the emissions data is consistent with the testing required
  for approval of an alternative fuel conversion system for new and
  relatively new vehicles or engines under 40 C.F.R. Part 85
  ["Advisory board" means the Texas Emissions Reduction Plan Advisory
  Board].
               (1-a)  "Clean transportation zone" has the meaning
  assigned by Section 393.001.
               (4)  "Heavy-duty motor vehicle" means a motor vehicle
  that [with]:
                     (A)  has a gross vehicle weight rating of more
  than 8,500 pounds; and
                     (B)  is certified to or has an engine certified to
  the United States Environmental Protection Agency's emissions
  standards for heavy-duty vehicles or engines.
               (5)  "Incremental cost" has the meaning assigned by
  Section 386.001 [means the difference between the manufacturer's
  suggested retail price of a baseline vehicle, the documented dealer
  price of a baseline vehicle, cost to lease or otherwise
  commercially finance a baseline vehicle, cost to repower with a
  baseline engine, or other appropriate baseline cost established by
  the commission, and the actual cost of the natural gas vehicle
  purchase, lease, or other commercial financing, or repower].
               (7-a)  "Natural gas engine" means an engine that
  operates:
                     (A)  solely on natural gas, including compressed
  natural gas, liquefied natural gas, or liquefied petroleum gas; or 
                     (B)  on a combination of diesel fuel and natural
  gas, including compressed natural gas, liquefied natural gas, or
  liquefied petroleum gas, and is capable of achieving at least 60
  percent displacement of diesel fuel with natural gas.
               (8)  "Natural gas vehicle" means a motor vehicle that
  is powered by a natural gas engine [receives not less than 75
  percent of its power from compressed or liquefied natural gas].
         (p-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 394.003(a), Health and Safety Code, is
  amended to read as follows:
         (a)  A vehicle is a qualifying vehicle that may be considered
  for a grant under the program if during the eligibility period
  established by the commission [calendar year] the entity:
               (1)  purchased, leased, or otherwise commercially
  financed the vehicle as a new on-road heavy-duty or medium-duty
  motor vehicle that:
                     (A)  is a natural gas vehicle;
                     (B)  is certified to the appropriate current
  federal emissions standards as determined by the commission; and
                     (C)  replaces an on-road heavy-duty or
  medium-duty motor vehicle of the same weight classification and
  use; [and
                     [(D)  is powered by an engine certified to:
                           [(i)     emit not more than 0.2 grams of
  nitrogen oxides per brake horsepower hour; or
                           [(ii)     meet or exceed the United States
  Environmental Protection Agency's Bin 5 standard for light-duty
  engines when powering the vehicle;] or
               (2)  repowered the on-road motor vehicle to a natural
  gas vehicle powered by a natural gas engine that[:
                     [(A)]  is certified to the appropriate current
  federal emissions standards as determined by the commission[; and
                     [(B)  is:
                           [(i)     a heavy-duty engine that is certified
  to emit not more than 0.2 grams of nitrogen oxides per brake
  horsepower hour; or
                           [(ii)     certified to meet or exceed the
  United States Environmental Protection Agency's Bin 5 standard for
  light-duty engines when powering the vehicle].
         (p-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 394.005, Health and Safety Code, is amended
  by amending Subsections (a), (b), (c), (f), (g), and (i) and adding
  Subsection (c-1) to read as follows:
         (a)  The commission [by rule] shall establish criteria for
  prioritizing qualifying vehicles eligible to receive grants under
  this chapter.  The commission shall review and revise the criteria
  as appropriate [after consultation with the advisory board].
         (b)  To be eligible for a grant under the program:
               (1)  the use of the qualifying vehicle must be
  projected to result in a reduction in emissions of nitrogen oxides
  of at least 25 percent as compared to the motor vehicle or engine
  being replaced, 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)  the qualifying vehicle must:
                     (A)  replace a heavy-duty or medium-duty motor
  vehicle that:
                           (i)  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;
                           (ii)  satisfies any minimum average annual
  mileage or fuel usage requirements established by the commission;
                           (iii)  satisfies any minimum percentage of
  annual usage requirements established by the commission; and
                           (iv)  is in operating condition and has at
  least two years of remaining useful life, as determined in
  accordance with criteria established by the commission; [or]
                     (B)  replace a heavy-duty or medium-duty motor
  vehicle that:
                           (i)  is owned by the applicant;
                           (ii)  is an on-road vehicle that has been:
                                 (a)  owned, leased, or otherwise
  commercially financed and operated in Texas as a fleet vehicle for
  at least the two years immediately preceding the submission of a
  grant application; and
                                 (b)  registered in a county located in
  the clean transportation zone for at least the two years
  immediately preceding the submission of a grant application; and
                           (iii)  otherwise satisfies the mileage,
  usage, and useful life requirements established under Paragraph (A)
  as determined by documentation associated with the vehicle; or
                     (C)  be a heavy-duty or medium-duty motor vehicle
  repowered with a natural gas engine that:
                           (i)  is installed in 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;
                           (ii)  satisfies any minimum average annual
  mileage or fuel usage requirements established by the commission;
                           (iii)  satisfies any minimum percentage of
  annual usage requirements established by the commission; and
                           (iv)  is installed in an on-road vehicle
  that, at the time of the vehicle's repowering, was in operating
  condition and had 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, leased, or otherwise
  commercially financed and registered and operated in the state by
  the grant recipient until the earlier of the fourth anniversary of
  the activity start date established by the commission [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 activity
  start date established by the commission [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 clean transportation zone[:
               [(1)     the counties any part of which are included in the
  area described by Section 394.010(a); or
               [(2)     counties designated as nonattainment areas
  within the meaning of Section 107(d) of the federal Clean Air Act
  (42 U.S.C. Section 7407)].
         (c-1)  For purposes of Subsection (c), the commission shall
  establish the activity start date based on the date the commission
  accepts verification of the disposition of the vehicle or engine.
         (f)  A heavy-duty or medium-duty motor vehicle replaced
  under this program must be rendered permanently inoperable 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, or be [that] permanently removed 
  [removes the vehicle] from operation in this state.  The commission
  shall establish criteria for ensuring the permanent destruction or
  permanent removal of the engine or vehicle.  The commission shall
  enforce the destruction and removal requirements.  For purposes of
  this subsection, "permanent removal" means the permanent export of
  the vehicle or engine to a destination outside of the United States,
  Canada, or the United Mexican States.
         (g)  The commission shall establish baseline emission levels
  for emissions of nitrogen oxides for on-road heavy-duty or
  medium-duty motor vehicles being replaced or repowered by using the
  emission certification for the engine or vehicle being replaced.  
  The commission may consider deterioration of the emission
  performance of the engine of the vehicle being replaced in
  establishing the baseline emission level.  The commission may
  consider and establish baseline emission rates for additional
  pollutants of concern[, as determined by the commission after
  consultation with the advisory board].
         (i)  The executive director may [shall] waive the
  requirements of Subsection (b)(2)(A)(i) or (B)(ii) on a finding of
  good cause, which may include short lapses in registration or
  operation due to economic conditions, seasonal work, or other
  circumstances.
         (q)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Section 394.006, Health and Safety Code, is amended to
  read as follows:
         Sec. 394.006.  RESTRICTION ON USE OF GRANT.  A recipient of a
  grant under this chapter shall use the grant to pay the incremental
  costs of the replacement or vehicle repower for which the grant is
  made, which may include a portion of the initial cost of the natural
  gas vehicle or natural gas engine, including the cost of the natural
  gas fuel system and installation [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.
         (q-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Section 394.007(c), Health and Safety Code, is
  amended to read as follows:
         (c)  A person may not receive a grant under this chapter
  that, when combined with any other grant, tax credit, or other
  governmental incentive, exceeds the incremental cost of the vehicle
  or vehicle repower for which the grant is awarded. A person shall
  return to the commission the amount of a grant awarded under this
  chapter that, when combined with any other grant, tax credit, or
  other governmental incentive, exceeds the incremental cost of the
  vehicle or vehicle repower for which the grant is awarded.
         (q-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Sections 394.008(a) and (b), Health and Safety Code,
  are amended to read as follows:
         (a)  The commission shall establish [adopt] procedures for:
               (1)  awarding grants under this chapter to reimburse
  eligible costs; [in the form of rebates; and]
               (2)  streamlining the grant application, contracting,
  reimbursement, and reporting process for qualifying natural gas
  vehicle purchases or repowers; and
               (3)  preapproving the award of grants to applicants who
  propose to purchase and replace motor vehicles described by Section
  394.005(b)(2)(B).
         (b)  Procedures established [adopted] under this section
  must:
               (1)  provide for the commission to compile and
  regularly update a listing of potentially eligible [preapproved]
  natural gas vehicles and natural gas engines that are certified to
  the appropriate current federal emissions standards as determined
  by the commission[:
                     [(A)     powered by natural gas engines certified to
  emit not more than 0.2 grams of nitrogen oxides per brake horsepower
  hour; or
                     [(B)     certified to the United States
  Environmental Protection Agency's light-duty Bin 5 standard or
  better];
               (2)  [if a federal standard for the calculation of
  emissions reductions exists,] provide a method to calculate the
  reduction in emissions of nitrogen oxides, volatile organic
  compounds, carbon monoxide, particulate matter, and sulfur
  compounds for each replacement or repowering;
               (3)  assign a standardized grant [rebate] amount for
  each qualifying vehicle or engine repower under Section 394.007;
               (4)  allow for processing applications [rebates] on an
  ongoing first-come, first-served basis;
               (5)  [provide for contracts between the commission and
  participating dealers under Section 394.009;
               [(6)     allow grant recipients to assign their grant
  funds to participating dealers to offset the purchase or lease
  price;
               [(7)]  require grant applicants to identify natural gas
  fueling stations that are available to fuel the qualifying vehicle
  in the area of its use;
               (6) [(8)]  provide for payment not later than the 30th
  day after the date the request for reimbursement for an approved
  grant is received;
               (7) [(9)]  provide for application submission and
  application status checks using procedures established by the
  commission, which may include application submission and status
  checks to be made over the Internet; and
               (8) [(10)]  consolidate, simplify, and reduce the
  administrative work for applicants and the commission associated
  with grant application, contracting, reimbursement, and reporting
  requirements.
         (r)  Effective on the date that the Texas Emissions Reduction
  Plan Advisory Board is abolished under Subsection (a) of this
  section, Section 394.012, Health and Safety Code, is amended to
  read as follows:
         Sec. 394.012.  EXPIRATION.  This chapter expires on the last
  day of the state fiscal biennium during which the commission
  publishes in the Texas Register the notice required by Section
  382.037 [August 31, 2017].
         (r-1)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, Subtitle C, Title 5, Health and Safety Code, is
  amended by adding Chapter 395 to read as follows:
  CHAPTER 395.  GOVERNMENTAL ALTERNATIVE FUEL FLEET GRANT PROGRAM
         Sec. 395.001.  DEFINITIONS. In this chapter:
               (1)  "Alternative fuel" means compressed natural gas,
  liquefied natural gas, liquefied petroleum gas, hydrogen fuel
  cells, or electricity, including electricity to power fully
  electric motor vehicles and plug-in hybrid motor vehicles.
               (2)  "Commission" means the Texas Commission on
  Environmental Quality.
               (3)  "Incremental cost" has the meaning assigned by
  Section 386.001.
               (4)  "Motor vehicle" means a self-propelled device
  designed for transporting persons or property on a public highway
  that is required to be registered under Chapter 502, Transportation
  Code.
               (5)  "Plug-in hybrid motor vehicle" has the meaning
  assigned by Section 2158.001, Government Code.
               (6)  "Political subdivision" means a county,
  municipality, school district, junior college district, river
  authority, water district or other special district, or other
  political subdivision created under the constitution or a statute
  of this state.
               (7)  "Program" means the governmental alternative fuel
  fleet grant program established under this chapter.
               (8)  "State agency" has the meaning assigned by Section
  2151.002, Government Code, and includes the commission.
         Sec. 395.002.  PROGRAM. (a)  The commission shall establish
  and administer a governmental alternative fuel fleet grant program
  to assist an eligible applicant described by Section 395.003 in
  purchasing or leasing new motor vehicles that operate primarily on
  an alternative fuel.
         (b)  The program may provide a grant to an applicant
  described by Section 395.003 to:
               (1)  purchase or lease a new motor vehicle described by
  Section 395.004; or
               (2)  purchase, lease, or install refueling
  infrastructure or equipment or procure refueling services as
  described by Section 395.005 to store and dispense alternative fuel
  needed for a motor vehicle described by Subdivision (1) of this
  subsection.
         Sec. 395.003.  ELIGIBLE APPLICANTS. (a)  A state agency or
  political subdivision is eligible to apply for a grant under the
  program if the entity operates a fleet of more than 15 motor
  vehicles, excluding motor vehicles that are owned and operated by a
  private company or other third party under a contract with the
  entity.
         (b)  A mass transit or school transportation provider or
  other public entity established to provide public or school
  transportation services is eligible for a grant under the program.
         Sec. 395.004.  MOTOR VEHICLE REQUIREMENTS. (a)  A grant
  recipient may purchase or lease with money from a grant under the
  program a new motor vehicle that is originally manufactured to
  operate using one or more alternative fuels or is converted to
  operate using one or more alternative fuels before the first retail
  sale of the vehicle, and that:
               (1)  has a dedicated system, dual-fuel system, or
  bi-fuel system; and
               (2)  if the motor vehicle is a fully electric motor
  vehicle or plug-in hybrid motor vehicle, has a United States
  Environmental Protection Agency rating of at least 75 miles per
  gallon equivalent or a 75-mile combined city and highway range.
         (b)  A grant recipient may not use money from a grant under
  the program to replace a motor vehicle, transit bus, or school bus
  that operates on an alternative fuel unless the replacement vehicle
  produces fewer emissions and has greater fuel efficiency than the
  vehicle being replaced.
         Sec. 395.005.  REFUELING INFRASTRUCTURE, EQUIPMENT, AND
  SERVICES. A grant recipient may purchase, lease, or install
  refueling infrastructure or equipment or procure refueling
  services with money from a grant under the program if:
               (1)  the purchase, lease, installation, or procurement
  is made in conjunction with the purchase or lease of a motor vehicle
  as described by Section 395.004 or the conversion of a motor vehicle
  to operate primarily on an alternative fuel;
               (2)  the grant recipient demonstrates that a refueling
  station that meets the needs of the recipient is not available
  within five miles of the location at which the recipient's vehicles
  are stored or primarily used; and
               (3)  for the purchase or installation of refueling
  infrastructure or equipment, the infrastructure or equipment will
  be owned and operated by the grant recipient, and for the lease of
  refueling infrastructure or equipment or the procurement of
  refueling services, a third-party service provider engaged by the
  grant recipient will provide the infrastructure, equipment, or
  services.
         Sec. 395.006.  ELIGIBLE COSTS. (a)  A motor vehicle lease
  agreement paid for with money from a grant under the program must
  have a term of at least three years.
         (b)  Refueling infrastructure or equipment purchased or
  installed with money from a grant under the program must be used
  specifically to store or dispense alternative fuel, as determined
  by the commission.
         (c)  A lease of or service agreement for refueling
  infrastructure, equipment, or services paid for with money from a
  grant under the program must have a term of at least three years.
         Sec. 395.007.  GRANT AMOUNTS. (a)  The commission may
  establish standardized grant amounts based on the incremental costs
  associated with the purchase or lease of different categories of
  motor vehicles, including the type of fuel used, vehicle class, and
  other categories the commission considers appropriate.
         (b)  In determining the incremental costs and setting the
  standardized grant amounts, the commission may consider the
  difference in cost between a new motor vehicle operated using
  conventional gasoline or diesel fuel and a new motor vehicle
  operated using alternative fuel.
         (c)  The amount of a grant for the purchase or lease of a
  motor vehicle may not exceed the amount of the incremental cost of
  the purchase or lease.
         (d)  The commission may establish grant amounts to reimburse
  the full cost of the purchase, lease, installation, or procurement
  of refueling infrastructure, equipment, or services or may
  establish criteria for reimbursing a percentage of the cost.
         (e)  A grant under the program may be combined with funding
  from other sources, including other grant programs, except that a
  grant may not be combined with other funding or grants from the
  Texas emissions reduction plan. When combined with other funding
  sources, a grant may not exceed the total cost to the grant
  recipient.
         (f)  In providing a grant for the lease of a motor vehicle
  under this chapter, the commission shall establish criteria:
               (1)  to offset incremental costs through an up-front
  payment to lower the cost basis of the lease; or 
               (2)  if determined appropriate by the commission, to
  provide for reimbursement of lease payments over no more than the
  period of availability of the contracted funds under applicable
  state law and regulation, which may be less than the required
  three-year lease term.
         (g)  In providing a grant for the lease of refueling
  infrastructure, equipment, or services, the commission shall
  establish criteria:
               (1)  to offset incremental costs through an up-front
  payment to lower the cost basis of the lease; or
               (2)  if determined appropriate by the commission, to
  provide for reimbursement of lease payments over no more than the
  period of availability of the contracted funds under applicable
  state law and regulation, which may be less than the required
  three-year lease term.
         (h)  Notwithstanding Subsection (d), the commission is not
  obligated to fund the full cost of the purchase, lease,
  installation, or procurement of refueling infrastructure,
  equipment, or services if those costs cannot be incurred and
  reimbursed over the period of availability of the funds under
  applicable state law and regulation.
         Sec. 395.008.  AVAILABILITY OF EMISSIONS REDUCTION CREDITS.
  (a)  A project that is funded from a grant under the program and
  that would generate marketable emissions reduction credits under a
  state or federal emissions reduction credit averaging, banking, or
  trading program is not eligible for funding under the program
  unless:
               (1)  the project includes the transfer of the credits,
  or the reductions that would otherwise be marketable credits, to
  the commission and, if applicable, the state implementation plan;
  and
               (2)  the credits or reductions, as applicable, are
  permanently retired.
         (b)  An emissions reduction generated by a purchase or lease
  under this chapter may be used to demonstrate conformity with the
  state implementation plan.
         Sec. 395.009.  USE OF GRANT MONEY. A grant recipient when
  using money from a grant under the program shall prioritize:
               (1)  the purchase or lease of new motor vehicles,
  including new motor vehicles that are converted to operate on an
  alternative fuel, when replacing vehicles or adding vehicles to the
  fleet;
               (2)  the purchase of new motor vehicles, including new
  motor vehicles that are converted to operate on an alternative
  fuel, to replace vehicles that have the highest total mileage and do
  not use an alternative fuel; and
               (3)  to the extent feasible, obtaining, whether by
  purchase, purchase and conversion, or lease, motor vehicles that
  use compressed natural gas, liquefied natural gas, or liquefied
  petroleum gas.
         Sec. 395.010.  GRANT PROCEDURES AND CRITERIA. (a)  The
  commission shall establish specific criteria and procedures in
  order to implement and administer the program, including the
  creation and provision of application forms and guidance on the
  application process.
         (b)  The commission shall award a grant through a contract
  between the commission and the grant recipient.
         (c)  The commission shall provide an online application
  process for the submission of all required application documents.
         (d)  The commission may limit funding for a particular period
  according to priorities established by the commission, including
  limiting the availability of grants to specific entities, for
  certain types of vehicles and infrastructure, or to certain
  geographic areas to ensure equitable distribution of grant funds
  across the state.
         (e)  In awarding grants under the program, the commission
  shall prioritize projects in the following order:
               (1)  projects that are proposed by a state agency;
               (2)  projects that are in or near a nonattainment area;
               (3)  projects that are in an affected county, as that
  term is defined by Section 386.001; and
               (4)  projects that will produce the greatest emissions
  reductions.
         (f)  In addition to the requirements under Subsection (e), in
  awarding grants under the program, the commission shall consider:
               (1)  the total amount of the emissions reduction that
  would be achieved from the project;
               (2)  the type and number of vehicles purchased or
  leased;
               (3)  the location of the fleet and the refueling
  infrastructure or equipment;
               (4)  the number of vehicles served and the rate at which
  vehicles are served by the refueling infrastructure or equipment;
               (5)  the amount of any matching funds committed by the
  applicant; and
               (6)  the schedule for project completion.
         (g)  The commission may not award more than 10 percent of the
  total amount awarded under the program in any fiscal year for
  purchasing, leasing, installing, or procuring refueling
  infrastructure, equipment, or services.
         Sec. 395.011.  FUNDING. The legislature may appropriate
  money to the commission from the Texas emissions reduction plan
  fund established under Section 386.251 to administer the program.
         Sec. 395.012.  ADMINISTRATIVE COSTS.  In each fiscal year,
  the commission may use up to 1.5 percent of the total amount of
  money allocated to the program in that fiscal year, but not more
  than $1 million, for the administrative costs of the program.
         Sec. 395.013.  RULES. The commission may adopt rules as
  necessary to implement this chapter.
         Sec. 395.014.  REPORT REQUIRED.  On or before November 1 of
  each even-numbered year, the commission shall submit to the
  governor, lieutenant governor, and members of the legislature a
  report that includes the following information regarding awards
  made under the program during the preceding state fiscal biennium:
               (1)  the number of grants awarded under the program;
               (2)  the recipient of each grant awarded;
               (3)  the number of vehicles replaced;
               (4)  the number, type, and location of any refueling
  infrastructure, equipment, or services funded under the program;
               (5)  the total emissions reductions achieved under the
  program; and
               (6)  any other information the commission considers
  relevant.
         Sec. 395.015.  EXPIRATION. This chapter expires on the last
  day of the state fiscal biennium during which the commission
  publishes in the Texas Register the notice required by Section
  382.037.
         (r-2)  Effective on the date that the Texas Emissions
  Reduction Plan Advisory Board is abolished under Subsection (a) of
  this section, the following provisions of the Health and Safety
  Code are repealed:
               (1)  Section 386.001(1);
               (2)  Section 386.058;
               (3)  Section 394.001(1);
               (4)  Section 394.009;
               (5)  Section 394.010; and
               (6)  Section 394.011.
         (s)  This subsection takes effect on the date that the Texas
  Emissions Reduction Plan Advisory Board is abolished under
  Subsection (a) of this section.  As soon as practicable after the
  effective date of this subsection, the Texas Commission on
  Environmental Quality shall implement the online application
  process required by Section 395.010(c), Health and Safety Code, as
  added by this section.  Prior to the implementation of the online
  application process, the commission may accept applications for a
  grant under Chapter 395, Health and Safety Code, as added by this
  section, in any manner provided by the commission.
         (s-1)  This subsection takes effect on the date that the
  Texas Emissions Reduction Plan Advisory Board is abolished under
  Subsection (a) of this section.  The changes in law made by this
  section apply only to a Texas emissions reduction plan grant
  awarded on or after the effective date of this section.  A grant
  awarded before the effective date of this section is governed by the
  law in effect on the date the award was made, and the former law is
  continued in effect for that purpose.
         (t)  This section takes effect August 30, 2017.
         SECTION 9.  FIRE ANT RESEARCH AND MANAGEMENT ACCOUNT
  ADVISORY COMMITTEE. (a)  The Fire Ant Research and Management
  Account Advisory Committee is abolished.
         (b)  The following provisions are repealed:
               (1)  Section 77.022, Agriculture Code; and
               (2)  Section 88.215, Education Code.
         SECTION 10.  PALLIATIVE CARE INTERDISCIPLINARY ADVISORY
  COUNCIL. Section 118.003, Health and Safety Code, is repealed.
         SECTION 11.  AGRICULTURE POLICY BOARD. (a)  The Agriculture
  Policy Board is abolished.
         (b)  Section 2.004, Agriculture Code, is repealed.
         SECTION 12.  ADVISORY OVERSIGHT COMMUNITY OUTREACH
  COMMITTEE. (a)  The Advisory Oversight Community Outreach
  Committee is abolished.
         (b)  Section 411.0197, Government Code, is repealed.
         SECTION 13.  RAIN HARVESTING AND WATER RECYCLING TASK FORCE.
  (a)  The task force under Section 2113.301(h), Government Code, as
  repealed by this section, is abolished.
         (b)  Section 2113.301(h), Government Code, is repealed.
         SECTION 14.  STATE COGENERATION COUNCIL. (a)  The State
  Cogeneration Council is abolished. All rules adopted by the State
  Cogeneration Council are abolished.
         (b)  Section 2302.024, Government Code, is amended to read as
  follows:
         Sec. 2302.024.  AUTHORITY TO SELL POWER. A [(a)     After the
  council has approved the application to construct or operate a
  cogeneration facility, a] cogenerating state agency may contract in
  the same manner as a qualifying facility for the sale to an electric
  utility of firm or nonfirm power produced by the state agency
  cogeneration facility that exceeds the agency's power
  requirements.
         [(b)     A cogenerating state agency may consult with the
  council about the price or other terms of a contract entered under
  this section.]
         (c)  The following provisions of the Government Code are
  repealed:
               (1)  Section 2302.001(3);
               (2)  Sections 2302.002, 2302.003, 2302.004, 2302.005,
  2302.006, and 2302.007;
               (3)  Section 2302.021(a); and
               (4)  Section 2302.022.
         SECTION 15.  PREMARITAL EDUCATION HANDBOOK ADVISORY
  COMMITTEE. (a)  The advisory committee under Section 2.014(d),
  Family Code, as repealed by this section, is abolished.
         (b)  Section 2.014(d), Family Code, is repealed.
         SECTION 16.  INDEPENDENT REVIEW ORGANIZATION ADVISORY
  GROUP. (a)  The advisory group under Section 4202.011, Insurance
  Code, as repealed by this section, is abolished.
         (b)  Section 4202.011, Insurance Code, is repealed.
         SECTION 17.  VEHICLE PROTECTION PRODUCT WARRANTOR ADVISORY
  BOARD. (a)  The Vehicle Protection Product Warrantor Advisory
  Board is abolished.
         (b)  Subchapter C, Chapter 2306, Occupations Code, is
  repealed.
         SECTION 18.  Except as otherwise provided by this Act, this
  Act takes effect September 1, 2017.
 
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1731 passed the Senate on
  April 27, 2017, by the following vote:  Yeas 31, Nays 0;
  May 26, 2017, Senate refused to concur in House amendments and
  requested appointment of Conference Committee; May 27, 2017, House
  granted request of the Senate; May 28, 2017, Senate adopted
  Conference Committee Report by the following vote:  Yeas 28,
  Nays 3.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1731 passed the House, with
  amendments, on May 24, 2017, by the following vote:  Yeas 145,
  Nays 0, one present not voting; May 27, 2017, House granted request
  of the Senate for appointment of Conference Committee;
  May 28, 2017, House adopted Conference Committee Report by the
  following vote:  Yeas 146, Nays 0, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
             Date
 
 
  ______________________________ 
            Governor