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  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