S.B. No. 1759

	AN ACT
	relating to the extended registration of a commercial fleet of
	motor vehicles.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 502.001, Transportation Code, is amended
	by adding Subdivision (1-a) to read as follows:
	(1-a)  "Commercial fleet" means a group of at least 25
	nonapportioned motor vehicles owned by a corporation, limited or
	general partnership, limited liability company, or other business
	entity and used for the business purposes of that entity.
	SECTION 2.  Subchapter A, Chapter 502, Transportation Code,
	is amended by adding Section 502.0023 to read as follows:
	Sec. 502.0023.  EXTENDED REGISTRATION OF COMMERCIAL FLEET
	MOTOR VEHICLES. (a)  Notwithstanding Section 502.158(c), the
	department shall develop and implement a system of registration to
	allow an owner of a commercial fleet to register the motor vehicles
	in the commercial fleet for an extended registration period of not
	less than one year or more than eight years. The owner may select
	the number of years for registration under this section within that
	range and register the commercial fleet for that period. Payment
	for all registration fees for the entire registration period
	selected is due at the time of registration.
	(b)  A system of extended registration under this section
	must allow the owner of a commercial fleet to register:
	(1)  an entire commercial fleet in the county of the
	owner's residence or principal place of business; or
	(2)  the motor vehicles in a commercial fleet that are
	operated most regularly in the same county.
	(c)  In addition to the registration fees prescribed by
	Subchapter D, an owner registering a commercial fleet under this
	section shall pay:
	(1)  an annual commercial fleet registration fee of $10
	per motor vehicle in the fleet; and
	(2)  except as provided by Subsection (e), a one-time
	license plate manufacturing fee of $1.50 for each fleet motor
	vehicle license plate.
	(d)  A license plate issued under this section:
	(1)  may, on request of the owner, include the name or
	logo of the business entity that owns the vehicle;
	(2)  must include the expiration date of the
	registration period; and
	(3)  does not require an annual registration insignia
	to be valid.
	(e)  In addition to all other applicable registration fees,
	an owner registering a commercial fleet under this section shall
	pay a one-time license plate manufacturing fee of $8 for each set of
	plates issued that includes on the legend the name or logo of the
	business entity that owns the vehicle instead of the fee imposed by
	Subsection (c)(2).
	(f)  If a motor vehicle registered under this section has a
	gross weight in excess of 10,000 pounds, the department shall also
	issue a registration card for the vehicle that is valid for the
	selected registration period.
	(g)  The department shall adopt rules to implement this
	section, including rules on suspension from the commercial fleet
	program for failure to comply with this section or rules adopted
	under this section.
	(h)  The department and the counties in their budgeting
	processes shall consider any temporary increases and resulting
	decreases in revenue that will result from the use of the process
	provided under this section.
	SECTION 3.  Subsection (b), Section 501.0234,
	Transportation Code, is amended to read as follows:
	(b)  This section does not apply to a motor vehicle:
	(1)  that has been declared a total loss by an insurance
	company in the settlement or adjustment of a claim;
	(2)  for which the certificate of title has been
	surrendered in exchange for:
	(A)  a salvage vehicle title issued under this
	chapter;
	(B)  a nonrepairable vehicle title issued under
	this chapter;
	(C)  a certificate of authority issued under
	Subchapter D, Chapter 683; or
	(D)  an ownership document issued by another state
	that is comparable to a document described by Paragraphs (A)-(C);
	[or]
	(3)  with a gross weight in excess of 11,000 pounds; or
	(4)  purchased by a commercial fleet buyer who is a
	full-service deputy under Section 502.114 and who utilizes the
	dealer title application process developed to provide a method to
	submit title transactions to the county in which the commercial
	fleet buyer is a full-service deputy.
	SECTION 4.  Section 386.252, Health and Safety Code, is
	amended by amending Subsection (a) and adding Subsection (d) to
	read as follows:
	(a)  Money in the fund may be used only to implement and
	administer programs established under the plan and shall be
	allocated as follows:
	(1)  for the diesel emissions reduction incentive
	program, 87.5 percent of the money in the fund, of which not more
	than four percent may be used for the clean school bus program, five
	percent shall be used for the clean fleet program, and not more than
	10 percent may be used for on-road diesel purchase or lease
	incentives;
	(2)  for the new technology research and development
	program, 9.5 percent of the money in the fund, of which up to
	$250,000 is allocated for administration, up to $200,000 is
	allocated for a health effects study, $500,000 is to be deposited in
	the state treasury to the credit of the clean air account created
	under Section 382.0622 to supplement funding for air quality
	planning activities in affected counties, not less than 20 percent
	is to be allocated each year to support research related to air
	quality for the Houston-Galveston-Brazoria and Dallas-Fort Worth
	nonattainment areas by a nonprofit organization based in Houston of
	which $216,000 each year shall be contracted to the Energy Systems
	Laboratory at the Texas Engineering Experiment Station for the
	development and annual calculation of creditable statewide
	emissions reductions obtained through wind and other renewable
	energy resources for the State Implementation Plan, and the balance
	is to be allocated each year to a nonprofit organization or an
	institution of higher education based in Houston to be used to
	implement and administer the new technology research and
	development program under a contract with the commission for the
	purpose of identifying, testing, and evaluating new
	emissions-reducing technologies with potential for
	commercialization in this state and to facilitate their
	certification or verification; and
	(3)  for administrative costs incurred by the
	commission and the laboratory, three percent of the money in the
	fund.
	(d)  The commission may allocate unexpended money designated
	for the clean fleet program to other programs described under
	Subsection (a) after the commission allocates money to recipients
	under the clean fleet program.
	SECTION 5.  Subtitle C, Title 5, Health and Safety Code, is
	amended by adding Chapter 391 to read as follows:
	CHAPTER 391. TEXAS CLEAN FLEET PROGRAM
	Sec. 391.001.  DEFINITIONS. In this chapter:
	(1)  "Alternative fuel" means a fuel other than
	gasoline or diesel fuel, including electricity, compressed natural
	gas, liquified natural gas, hydrogen, propane, or a mixture of
	fuels containing at least 85 percent methanol by volume.
	(2)  "Commission" means the Texas Commission on
	Environmental Quality.
	(3)  "Golf cart" has the meaning assigned by Section
	502.001, Transportation Code.
	(4)  "Hybrid vehicle" means a vehicle with at least two
	different energy converters and two different energy storage
	systems on board the vehicle for the purpose of propelling the
	vehicle.
	(5)  "Incremental cost" has the meaning assigned by
	Section 386.001.
	(6)  "Light-duty motor vehicle" has the meaning
	assigned by Section 386.151.
	(7)  "Motor vehicle" has the meaning assigned by
	Section 386.151.
	(8)  "Neighborhood electric vehicle" means a motor
	vehicle that:
	(A)  is originally manufactured to meet, and does
	meet, the equipment requirements and safety standards established
	for "low-speed vehicles" in Federal Motor Vehicle Safety Standard
	No. 500 (49 C.F.R. Section 571.500);
	(B)  is a slow-moving vehicle, as defined by
	Section 547.001, Transportation Code, that is able to attain a
	speed of more than 20 miles per hour but not more than 25 miles per
	hour in one mile on a paved, level surface;
	(C)  is a four-wheeled motor vehicle;
	(D)  is powered by electricity or alternative
	power sources;
	(E)  has a gross vehicle weight rating of less
	than 3,000 pounds; and
	(F)  is not a golf cart.
	(9)  "Program" means the Texas clean fleet program
	established under this chapter.
	Sec. 391.002.  PROGRAM. (a)  The commission shall establish
	and administer the Texas clean fleet program to encourage a person
	that has a fleet of diesel-powered vehicles to replace them with
	alternative fuel or hybrid vehicles. Under the program, the
	commission shall provide grants for eligible projects to offset the
	incremental cost of projects for fleet owners.
	(b)  An entity that places 25 or more qualifying vehicles in
	service for use entirely in this state during a calendar year is
	eligible to participate in the program.
	Sec. 391.003.  QUALIFYING VEHICLES. (a)  A vehicle is a
	qualifying vehicle that may be considered for a grant under the
	program if during the calendar year the entity purchases a new
	on-road vehicle that:
	(1)  is certified to current federal emissions
	standards;
	(2)  replaces a diesel-powered on-road vehicle of the
	same weight classification and use; and
	(3)  is a hybrid vehicle or fueled by an alternative
	fuel.
	(b)  A vehicle is not a qualifying vehicle if the vehicle:
	(1)  is a neighborhood electric vehicle;
	(2)  has been used as a qualifying vehicle to qualify
	for a grant under this chapter for a previous reporting period or by
	another entity; or
	(3)  has qualified for a similar grant or tax credit in
	another jurisdiction.
	Sec. 391.004.  APPLICATION FOR GRANT. (a)  An entity
	operating in this state that operates a fleet of at least 100
	vehicles may apply for and receive a grant under the program.
	(b)  The commission may adopt guidelines to allow a regional
	planning commission, council of governments, or similar regional
	planning agency created under Chapter 391, Local Government Code,
	or a private nonprofit organization to apply for and receive a grant
	to improve the ability of the program to achieve its goals.
	(c)  An application for a grant under this chapter must be
	made on a form provided by the commission and must contain the
	information required by the commission.
	Sec. 391.005.  ELIGIBILITY OF PROJECTS FOR GRANTS. (a)  The
	commission by rule shall establish criteria for prioritizing
	projects eligible to receive grants under this chapter. The
	commission shall review and revise the criteria as appropriate.
	(b)  To be eligible for a grant under the program, a project
	must:
	(1)  result in a reduction in emissions of nitrogen
	oxides or other pollutants, as established by the commission, of at
	least 25 percent, based on:
	(A)  the baseline emission level set by the
	commission under Subsection (g); and
	(B)  the certified emission rate of the new
	vehicle; and
	(2)  replace a vehicle that:
	(A)  is an on-road vehicle that has been owned,
	registered, and operated by the applicant in Texas for at least the
	two years immediately preceding the submission of a grant
	application;
	(B)  satisfies any minimum average annual mileage
	or fuel usage requirements established by the commission;
	(C)  satisfies any minimum percentage of annual
	usage requirements established by the commission; and
	(D)  is in operating condition and has at least
	two years of remaining useful life, as determined in accordance
	with criteria established by the commission.
	(c)  As a condition of receiving a grant, the qualifying
	vehicle must be continuously owned, registered, and operated in the
	state by the grant recipient for at least five years from the date
	of reimbursement of the grant-funded expenses. Not less than 75
	percent of the annual use of the qualifying vehicle, either mileage
	or fuel use as determined by the commission, must occur in the
	state.
	(d)  The commission shall include and enforce the usage
	provisions in the grant contracts. The commission shall monitor
	compliance with the ownership and usage requirements, including
	submission of reports on at least an annual basis, or more
	frequently as determined by the commission.
	(e)  The commission by contract may require the return of all
	or a portion of grant funds for a grant recipient's noncompliance
	with the usage and percentage of use requirements under this
	section.
	(f)  A vehicle or engine replaced under this program must be
	rendered permanently inoperable by crushing the vehicle or making a
	hole in the engine block and permanently destroying the frame of the
	vehicle. The commission shall establish criteria for ensuring the
	permanent destruction of the engine and vehicle. The commission
	shall monitor and enforce the destruction requirements.
	(g)  The commission shall establish baseline emission levels
	for emissions of nitrogen oxides for on-road vehicles being
	replaced. The commission may consider and establish baseline
	emission rates for additional pollutants of concern, as determined
	by the commission.
	(h)  Mileage requirements established by the commission
	under Subsection (b)(2)(B) may differ by vehicle weight categories
	and type of use.
	Sec. 391.006.  RESTRICTION ON USE OF GRANT. A recipient of a
	grant under this chapter shall use the grant to pay the incremental
	costs of the project for which the grant is made, which may include
	the initial cost of the alternative fuel vehicle and the reasonable
	and necessary expenses incurred for the labor needed to install
	emissions-reducing equipment. The recipient may not use the grant
	to pay the recipient's administrative expenses.
	Sec. 391.007.  AMOUNT OF GRANT. (a)  The amount the
	commission shall award for each vehicle being replaced is:
	(1)  80 percent of the incremental cost for replacement
	of a heavy-duty diesel engine:
	(A)  manufactured prior to implementation of
	federal or California emission standards; and
	(B)  not certified to meet a specific emission
	level by either the United States Environmental Protection Agency
	or the California Air Resources Board;
	(2)  70 percent of the incremental cost for replacement
	of a heavy-duty diesel engine certified to meet the federal
	emission standards applicable to engines manufactured in 1990
	through 1997;
	(3)  60 percent of the incremental cost for replacement
	of a heavy-duty diesel engine certified to meet the federal
	emission standards applicable to engines manufactured in 1998
	through 2003;
	(4)  50 percent of the incremental cost for replacement
	of a heavy-duty diesel engine certified to meet the federal
	emission standards applicable to engines manufactured in 2004 and
	later;
	(5)  80 percent of the incremental cost for replacement
	of a light-duty diesel vehicle:
	(A)  manufactured prior to the implementation of
	certification requirements; and
	(B)  not certified to meet either mandatory or
	voluntary emission certification standards;
	(6)  70 percent of the incremental cost for replacement
	of a light-duty diesel vehicle certified to meet federal Tier 1
	emission standards phased in between 1994 and 1997; and
	(7)  60 percent of the incremental cost for replacement
	of a light-duty diesel vehicle certified to meet federal Tier 2
	emission standards phased in between 2004 and 2009.
	(b)  The commission may revise the standards for determining
	grant amounts, as needed to reflect changes to federal emission
	standards and decisions on pollutants of concern.
	Sec. 391.008.  EXPIRATION. This chapter expires August 31,
	2017.
	SECTION 6.  (a)  In this section:
	(1)  "Alternative fuel" means a fuel other than
	gasoline or diesel fuel, including electricity, compressed natural
	gas, liquified natural gas, hydrogen, propane, methanol, or a
	mixture of fuels containing at least 85 percent methanol by volume.
	(2)  "Commission" means the Texas Commission on
	Environmental Quality.
	(b)  The commission shall conduct an alternative fueling
	facilities study to:
	(1)  assess the correlation between the installation of
	fueling facilities in nonattainment areas and the deployment of
	fleet vehicles that use alternative fuels; and
	(2)  determine the emissions reductions achieved from
	replacing a diesel-powered engine with an engine utilizing
	alternative fuels.
	(c)  From the emissions reductions determined under
	Subsection (b) of this section, the commission shall determine the
	amount of emissions reductions that are fairly attributable to the
	installation of an alternative fuel fueling facility and the
	combustion of the alternative fuel in the vehicles fueled by the
	alternative fuel fueling facility.
	(d)  In connection with the study conducted under this
	section, the commission shall seek approval for credit in the state
	implementation plan from the United States Environmental
	Protection Agency for emissions reductions that can be:
	(1)  directly attributed to an alternative fuel fueling
	facility; and
	(2)  achieved as a consequence of an alternative fuel
	fueling facility encouraging the use of alternatively fueled
	vehicles.
	(e)  The commission shall include in the commission's
	biennial report to the legislature the findings of the study
	conducted under this section and the status of the discussions with
	the United States Environmental Protection Agency regarding credit
	for emissions reductions in the state implementation plan which can
	be achieved as a result of the installation of alternative fuel
	fueling facilities.
	(f)  This section expires August 31, 2011.
	SECTION 7.  Section 502.0022, Transportation Code, is
	repealed.
	SECTION 8.  (a)  The Texas Department of Transportation
	shall adopt the rules and establish the system required under
	Section 502.0023, Transportation Code, as added by this Act, not
	later than January 1, 2010.
	(b)  The Texas Commission on Environmental Quality shall
	adopt rules under Section 391.005, Health and Safety Code, as added
	by this Act, as soon as practicable after the effective date of this
	Act.
	SECTION 9.  This Act takes effect September 1, 2009.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I hereby certify that S.B. No. 1759 passed the Senate on
	April 20, 2009, by the following vote:  Yeas 30, Nays 0;
	May 29, 2009, Senate refused to concur in House amendments and
	requested appointment of Conference Committee; May 30, 2009, House
	granted request of the Senate; May 31, 2009, Senate adopted
	Conference Committee Report by the following vote:  Yeas 31,
	Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1759 passed the House, with
	amendments, on May 27, 2009, by the following vote:  Yeas 146,
	Nays 2, one present not voting; May 30, 2009, House granted request
	of the Senate for appointment of Conference Committee;
	May 31, 2009, House adopted Conference Committee Report by the
	following vote:  Yeas 135, Nays 9, one present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor