By: Gutierrez S.B. No. 622               A BILL TO BE ENTITLED   AN ACT   relating to the new technology implementation grant program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 386.252(a), Health and Safety Code, is   amended to read as follows:          Sec. 386.252.  USE OF FUND. (a) Money in the fund 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 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)  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 $8 million 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 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.          SECTION 2.  Section 391.002, Health and Safety Code, is   amended to read as follows:          Sec. 391.002.  GRANT PROGRAM. (a) The commission shall   establish and administer a new technology implementation grant   program to assist the implementation of new technologies to reduce   emissions from facilities and other stationary sources in this   state. The commission may establish a minimum capital expenditure   threshold for projects under Subsection (b)(2). Under the program,   the commission shall provide grants or other financial incentives   for eligible projects to offset the incremental cost of emissions   reductions.          (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, Health and Safety Code, is   amended to read as follows:          Sec. 391.205.  PREFERENCES. (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)  systems that reduce flaring emissions and other   site emissions.          (b)  Projects that include more than one of the criteria   described by Subsection (a) shall be given a greater preference in   the award of grants under this chapter.          (c)  The commission may give preference under Subsection (a)   only if the cost-effectiveness and emission performance of the   project are comparable to those of a project not claiming a   preference described by that subsection.          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 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.  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 6.  This Act takes effect September 1, 2021.