H.B. No. 963
 
 
 
 
AN ACT
  relating to the Texas natural gas vehicle grant program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 394.003, Health and Safety Code, is
  amended by amending Subsection (a) and adding Subsection (c) 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 the entity:
               (1)  purchased, leased, or otherwise commercially
  financed the vehicle as an [a new] on-road heavy-duty or
  medium-duty motor vehicle that:
                     (A)  is a new natural gas vehicle or, subject to
  Subsection (c), a used 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; or
               (2)  repowered the on-road motor vehicle to a natural
  gas vehicle powered by a natural gas engine that is certified to the
  appropriate current federal emissions standards as determined by
  the commission.
         (c)  A used natural gas vehicle that is proposed to replace
  an on-road heavy-duty or medium-duty motor vehicle must be of model
  year 2017 or later, provided that the model year may not be more
  than six years older than the current model year at the time of the
  submission of the grant application.
         SECTION 2.  Section 394.005(b), Health and Safety Code, is
  amended to read as follows:
         (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 qualifying 
  [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;
                     (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.
         SECTION 3.  This Act takes effect September 1, 2021.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 963 was passed by the House on April
  9, 2021, by the following vote:  Yeas 117, Nays 27, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 963 was passed by the Senate on May
  21, 2021, by the following vote:  Yeas 30, Nays 1.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor