H.B. No. 3745

	AN ACT
	relating to the Texas emissions reduction plan fund and account.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	ARTICLE 1. TEXAS EMISSIONS REDUCTION PLAN FUND AND ACCOUNT
	SECTION 1.01.  Section 386.001, Health and Safety Code, is
	amended by adding Subdivision (1) and amending Subdivision (5) to
	read as follows:
	(1)  "Account" means the Texas emissions reduction plan
	account established under Section 386.251.
	(5)  "Fund" means the Texas emissions reduction plan
	fund established under Section 386.250.
	SECTION 1.02.  Section 386.057(c), Health and Safety Code,
	is amended to read as follows:
	(c)  For projects funded as part of the infrastructure
	program under Subchapter C, the report must:
	(1)  describe and evaluate:
	(A)  the infrastructure facilities funded under
	that subchapter;
	(B)  the degree to which the funded facilities are
	supporting on-road or non-road diesel projects;
	(C)  the amount of fuel or electricity dispensed
	for each facility; and
	(D)  associated emissions reductions and
	cost-effectiveness; and
	(2)  make a finding regarding the need for additional
	appropriations from the account [fund] to improve the ability of
	the program to achieve its goals.
	SECTION 1.03.  The heading to Subchapter F, Chapter 386,
	Health and Safety Code, is amended to read as follows:
	SUBCHAPTER F. TEXAS EMISSIONS REDUCTION PLAN FUND AND ACCOUNT
	SECTION 1.04.  Subchapter F, Chapter 386, Health and Safety
	Code, is amended by adding Section 386.250 to read as follows:
	Sec. 386.250.  TEXAS EMISSIONS REDUCTION PLAN FUND. (a) The
	Texas emissions reduction plan fund is established as a trust fund
	outside the state treasury to be held by the comptroller and
	administered by the commission as trustee. Money in the fund may be
	spent without legislative appropriation and may be used only as
	provided by this chapter. Interest and other earnings on the
	balance of the fund shall be credited to the fund.
	(b)  The fund consists of:
	(1)  the amount of money deposited to the credit of the
	fund under:
	(A)  Section 386.056;
	(B)  Sections 151.0515 and 152.0215, Tax Code; and
	(C)  Sections 501.138, 502.358, and 548.5055,
	Transportation Code; and
	(2)  grant money recaptured under Section 386.111(d)
	and Chapter 391.
	(c)  Not later than the 30th day after the last day of each
	state fiscal biennium, the commission shall transfer the
	unencumbered balance of the fund remaining on the last day of the
	state fiscal biennium to the credit of the Texas emissions
	reduction plan account.
	SECTION 1.05.  Section 386.251, Health and Safety Code, is
	amended to read as follows:
	Sec. 386.251.  TEXAS EMISSIONS REDUCTION PLAN ACCOUNT
	[FUND]. (a) The Texas emissions reduction plan account [fund] is
	an account in the state treasury.
	(b)  The account [fund] is administered by the commission for
	the benefit of the plan established under this chapter.  The account
	[fund] is exempt from the application of Section 403.095,
	Government Code.  Interest earned on the account [fund] shall be
	credited to the account [fund].
	(c)  The account [fund] consists of its accumulated balance
	and [:
	[(1)]  the amount of money transferred to the account
	under Section 386.250(c) [deposited to the credit of the fund
	under:
	[(A)  Section 386.056;
	[(B)     Sections 151.0515 and 152.0215, Tax Code;
	and
	[(C)     Sections 501.138, 502.358, and 548.5055,
	Transportation Code; and
	[(2)     grant money recaptured under Section 386.111(d)
	and Chapter 391].
	SECTION 1.06.  The heading to Section 386.252, Health and
	Safety Code, is amended to read as follows:
	Sec. 386.252.  USE OF FUND AND ACCOUNT.
	SECTION 1.07.  Sections 386.252(a), (b), (e), (f), (g), and
	(h), Health and Safety Code, are amended to read as follows:
	(a)  Money in the fund and account 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 from the fund and account [appropriated to
	the commission] to be used for the programs under Section
	386.051(b) shall initially be allocated as follows:
	(1)  four percent may be used for the clean school bus
	program under Chapter 390;
	(2)  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 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 percent may be used for the Texas natural gas
	vehicle grant program under Chapter 394;
	(6)  not more than $6 million 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)  not more than $750,000 may be used each year to
	support research related to air quality as provided by Chapter 387;
	(8)  not more than $200,000 may be used for a health
	effects study;
	(9)  at least $6 million but not more than $16 [$8]
	million may be used by [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 percent may be used by the commission for the
	seaport and rail yard areas emissions reduction program established
	under Subchapter D-1;
	(11)  five percent may be used for the light-duty motor
	vehicle purchase or lease incentive program established under
	Subchapter D;
	(12)  not more than $216,000 may be used by [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; and
	(14)  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)  Money in the fund and account 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].
	(e)  Money in the fund and account may be used [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)  Not [To the extent that money is appropriated from the
	fund for that purpose, not] more than $2.5 million from the fund and
	account 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)  The [To the extent that money is appropriated from the
	fund for that purpose, the] commission may use [that] money from the
	fund and account 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.
	SECTION 1.08.  Section 395.011, Health and Safety Code, is
	amended to read as follows:
	Sec. 395.011.  FUNDING.  The legislature may appropriate
	money to the commission from the Texas emissions reduction plan
	account [fund] established under Section 386.251 to administer the
	program.
	SECTION 1.09.  The amendments to Section 386.251, Health and
	Safety Code, made by this article do not affect the balance of the
	Texas Emissions Reduction Plan Account No. 5071 remaining on
	September 1, 2021.
	SECTION 1.10.  This article takes effect September 1, 2021.
	ARTICLE 2. FUNDING SOURCES
	SECTION 2.01.  Section 151.0515(d), Tax Code, is amended to
	read as follows:
	(d)  This section expires on the last day of the state fiscal
	biennium during which the Texas Commission on Environmental Quality
	publishes in the Texas Register the notice required by Section
	382.037, Health and Safety Code [August 31, 2019].
	SECTION 2.02.  Section 152.0215(c), Tax Code, is amended to
	read as follows:
	(c)  This section expires on the last day of the state fiscal
	biennium during which the Texas Commission on Environmental Quality
	publishes in the Texas Register the notice required by Section
	382.037, Health and Safety Code [August 31, 2019].
	SECTION 2.03.  Section 501.138(b-3), Transportation Code,
	is amended to read as follows:
	(b-3)  This subsection and Subsection (b-2) expire on the
	last day of the state fiscal biennium during which the Texas
	Commission on Environmental Quality publishes in the Texas Register
	the notice required by Section 382.037, Health and Safety Code
	[August 31, 2019].
	SECTION 2.04.  Section 502.358(c), Transportation Code, is
	amended to read as follows:
	(c)  This section expires on the last day of the state fiscal
	biennium during which the Texas Commission on Environmental Quality
	publishes in the Texas Register the notice required by Section
	382.037, Health and Safety Code [August 31, 2019].
	SECTION 2.05.  The heading to Section 548.5055,
	Transportation Code, is amended to read as follows:
	Sec. 548.5055.  TEXAS EMISSIONS [EMISSION] REDUCTION PLAN
	FEE.
	SECTION 2.06.  Sections 548.5055(b) and (c), Transportation
	Code, are amended to read as follows:
	(b)  The department shall remit fees collected under this
	section to the comptroller at the time and in the manner prescribed
	by the comptroller for deposit in the Texas emissions [emission]
	reduction plan fund.
	(c)  This section expires on the last day of the state fiscal
	biennium during which the conservation commission publishes in the
	Texas Register the notice required by Section 382.037, Health and
	Safety Code [August 31, 2019].
	SECTION 2.07.  Sections 8(a-2) and (b), Chapter 755 (S.B.
	1731), Acts of the 85th Legislature, Regular Session, 2017, are
	repealed.
	ARTICLE 3. EFFECTIVE DATE
	SECTION 3.01.  Except as otherwise provided by this Act,
	this Act takes effect August 30, 2019.
	______________________________	______________________________
	President of the Senate	Speaker of the House
	I certify that H.B. No. 3745 was passed by the House on May 2,
	2019, by the following vote:  Yeas 139, Nays 0, 1 present, not
	voting; that the House refused to concur in Senate amendments to
	H.B. No. 3745 on May 23, 2019, and requested the appointment of a
	conference committee to consider the differences between the two
	houses; and that the House adopted the conference committee report
	on H.B. No. 3745 on May 26, 2019, by the following vote:  Yeas 145,
	Nays 1, 1 present, not voting.
	______________________________
	Chief Clerk of the House
	I certify that H.B. No. 3745 was passed by the Senate, with
	amendments, on May 22, 2019, by the following vote:  Yeas 27, Nays
	4; at the request of the House, the Senate appointed a conference
	committee to consider the differences between the two houses; and
	that the Senate adopted the conference committee report on H.B. No.
	3745 on May 26, 2019, by the following vote:  Yeas 30, Nays 1.
	______________________________
	Secretary of the Senate
	APPROVED: __________________
	Date
	__________________
	Governor