SB727 - Relating to the creation of a small non-road engine purchase incentive program under the Texas emissions reduction plan.

  89R3106 JRR-F     By: Johnson S.B. No. 727       A BILL TO BE ENTITLED   AN ACT   relating to the creation of a small non-road engine purchase   incentive program under the Texas emissions reduction plan.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  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);                (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);                (10)  the Texas clean fleet program established under   Chapter 392;                (11)  the Texas alternative fueling facilities program   established under Chapter 393;                (12)  the Texas natural gas vehicle grant 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;                (15)  the seaport and rail yard areas emissions   reduction 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);                (18)  the governmental alternative fuel fleet grant   program established under Chapter 395;                (19)  remittance of funds to the state highway fund for   use by the Texas Department of Transportation for congestion   mitigation and air quality improvement projects in nonattainment   areas and affected counties; [ and ]                (20)  the Texas hydrogen infrastructure, vehicle, and   equipment grant program established under Subchapter G ; and                 (21)     the small non-road engine purchase incentive   program established under Subchapter H .          SECTION 2.  Section 386.252(a), Health and Safety Code, is   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) and after remittance to the state highway fund under   Subsection (a-1), money from the fund and account 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)  eight percent total may be used between the Texas   hydrogen infrastructure, vehicle, and equipment grant program   established under Subchapter G and 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 and not more than $8 million may be used   for the Texas hydrogen infrastructure, vehicle, and equipment grant   program;                (3)  five percent may be used for the Texas 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)  7.5 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 15 percent   may be used by 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)  2.5 percent may be used for the light-duty motor   vehicle purchase or lease incentive program established under   Subchapter D;                (12)  not more than $500,000 may be used by 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 for the state implementation plan that are   obtained through:                      (A)  wind and other renewable energy resources;                      (B)  energy efficiency programs administered by   the Public Utility Commission of Texas or the State Energy   Conservation Office; or                      (C)  the implementation of advanced building   energy codes;                (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)   two percent may be used for the small non-road   engine purchase incentive program established under Subchapter H;   and                 (15)   the balance is to be used by the commission for   the diesel emissions reduction incentive program under Subchapter C   as determined by the commission.          SECTION 3.  Chapter 386, Health and Safety Code, is amended   by adding Subchapter H to read as follows:   SUBCHAPTER H. SMALL NON-ROAD ENGINE PURCHASE INCENTIVE PROGRAM           Sec. 386.351.  DEFINITIONS. In this subchapter:                 (1)     "Four-stroke engine" means an engine that goes   through the steps of compression, power, exhaust, and intake in   four piston strokes.                 (2)     "Non-road engine" means an engine powering   equipment that has less than 25 horsepower.                 (3)     "Ozone precursors" means pollutants, including   nitrogen oxides and volatile organic compounds, that create ground   level ozone through chemical reactions.                 (4)     "Program" means the small non-road engine purchase   incentive program established under this subchapter.                 (5)     "Two-stroke engine" means an engine that goes   through the steps of compression, power, exhaust, and intake in two   piston strokes and mixes fuel with oil in the process.           Sec.   386.352.     PROGRAM.   (a) The commission shall develop a   small non-road engine purchase incentive program designed to reduce   emissions, including the emissions of ozone precursors,   particulate matter, and carbon monoxide, produced by two-stroke and   four-stroke non-road engines.           (b)     The program shall authorize statewide financial   incentives for the purchase by persons in this state of:                 (1)     new non-road engines that are electrically powered   or powered by another alternative technology designated by the   commission; and                 (2)  batteries designated by the commission.           (c)     The commission shall adopt rules necessary to implement   the program, including designating alternative technologies and   products eligible for incentives.           Sec.   386.353.     ELIGIBILITY. (a) The purchase by a person in   this state of non-road engines   or batteries is eligible for an   incentive under the program if:                 (1)  as applicable:                       (A)     the non-road engine purchased is   electrically powered or powered by [Text truncated for display. Full text available on LegiScan.]