By: Landgraf H.B. No. 4472       A BILL TO BE ENTITLED   AN ACT   relating to the Texas emissions reduction plan fund and account.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 386.252(a), Health and Safety Code, as   effective September 1, 2021, 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), 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)  six [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)  two [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 million   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)  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 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.          SECTION 2.  Section 391.002(b), Health and Safety Code, is   amended to read as follows:          (b)  Projects that may be considered for a grant under the   program include:                (1)  advanced clean energy projects, as defined by   Section 382.003;                (2)  new technology projects that reduce emissions of   regulated pollutants from stationary sources;                (3)  new technology projects that reduce emissions from   upstream and midstream oil and gas production, completions,   gathering, storage, processing, and transmission activities   through:                      (A)  the replacement, repower, or retrofit of   stationary compressor engines;                      (B)  the installation of systems to reduce or   eliminate the loss of gas, flaring of gas, or burning of gas using   other combustion control devices; or                      (C)  the installation of systems that reduce   flaring emissions and other site emissions [by capturing waste heat   to generate electricity solely for on-site service]; and                (4)  electricity storage projects related to renewable   energy, including projects to store electricity produced from wind   and solar generation that provide efficient means of making the   stored energy available during periods of peak energy use.          SECTION 3.  Section 391.205(a), Health and Safety Code, is   amended to read as follows:          (a)  Except as provided by Subsection (c), in awarding grants   under this chapter the commission shall give preference to projects   that:                (1)  involve the transport, use, recovery for use, or   prevention of the loss of natural resources originating or produced   in this state;                (2)  contain an energy efficiency component;                (3)  include the use of solar, wind, or other renewable   energy sources; [or]                (4)  recover waste heat from the combustion of natural   resources and use the heat to generate electricity; or                (5)  reduce emissions.          SECTION 4.  Section 391.301, Health and Safety Code, is   amended to read as follows:          Sec. 391.301.  RESTRICTION ON USE OF GRANT. A recipient of a   grant under this chapter must use the grant to pay the incremental   costs of the purchase, rental, or [and] installation of the project   for which the grant is made, which may include reasonable and   necessary expenses for the labor needed to install   emissions-reducing equipment. [The recipient may not use the grant   for the costs of operating and maintaining the emissions-reducing   equipment.]          SECTION 5.  Section 151.0515(b), Tax Code, is amended to   read as follows:          (b)  In each county in this state, a surcharge is imposed on   the retail sale, lease, or rental of new or used equipment in an   amount equal to 1 [1.5] percent of the sale price or the lease or   rental amount.          SECTION 6.  Section 501.138, Transportation Code, is amended   by amending Subsections (b-1), (b-2), and (b-3) and adding   Subsection (b-4) to read as follows:          (b-1)  Except as provided by Subsection (b-4), fees [Fees]   collected under Subsection (b) to be sent to the comptroller shall   be deposited to the credit of the Texas [Mobility Fund, except that   $5 of each fee imposed under Subsection (a)(1) and deposited on or   after September 1, 2008, and before September 1, 2015, shall be   deposited to the credit of the Texas] emissions reduction plan   fund.          (b-2)  The comptroller shall establish a record of the amount   of the fees deposited to the credit of the Texas emissions reduction   plan fund [Mobility Fund] under Subsection (b-1). On or before the   fifth workday of each month, the Texas Department of Transportation   shall remit to the comptroller for deposit to the credit of the   Texas Mobility Fund [emissions reduction plan fund] an amount of   money equal to the amount of the fees deposited by the comptroller   to the credit of the Texas emissions reduction plan fund [Mobility   Fund] under Subsection (b-1) in the preceding month. The Texas   Department of Transportation shall use for remittance to the   comptroller as required by this subsection money in the state   highway fund that is not required to be used for a purpose specified   by Section 7-a, Article VIII, Texas Constitution, and may not use   for that remittance money received by this state under the   congestion mitigation and air quality improvement program   established under 23 U.S.C. Section 149.          (b-3)  This subsection and Subsections (b-1) 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.          (b-4)  Fees collected under Subsection (b) to be sent to the   comptroller shall be deposited to the credit of the Texas Mobility   Fund if the fees are collected on or after 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.          SECTION 7.  The changes in law made by this Act apply only to   a Texas emissions reduction plan grant awarded on or after the   effective date of this Act. A grant awarded before the effective   date of this Act is governed by the law in effect on the date the   award was made, and the former law is continued in effect for that   purpose.          SECTION 8.  The change in law made by this Act to Section   501.138, Transportation Code, applies only to a fee collected on or   after the effective date of this Act. A fee collected before the   effective date of this Act is governed by the law in effect when the   fee was collected, and the former law is continued in effect for   that purpose.          SECTION 9.  This Act takes effect September 1, 2021.