88R8124 JRR-D     By: Zaffirini S.B. No. 1190       A BILL TO BE ENTITLED   AN ACT   relating to certain eligibility requirements for grants under the   Texas natural gas vehicle grant program.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 394.005(b) and (c), Health and Safety   Code, are amended to read as follows:          (b)  To be eligible for a grant under the program:                (1)  the use of the qualifying vehicle must be   projected to result in a reduction in emissions of nitrogen oxides   of at least 25 percent as compared to the motor vehicle or engine   being replaced, based on:                      (A)  the baseline emission level set by the   commission under Subsection (g); and                      (B)  the certified emission rate of the qualifying   vehicle; and                (2)  the qualifying vehicle must:                      (A)  replace a heavy-duty or medium-duty motor   vehicle that:                            (i)  is an on-road vehicle that has been   owned, leased, or otherwise commercially financed and registered   and operated by the applicant in Texas for at least the two years   immediately preceding the submission of a grant application;                            (ii)  satisfies any minimum average annual   mileage or fuel usage requirements established by the commission;                            (iii)  satisfies any minimum percentage of   annual usage requirements established by the commission; and                            (iv)  is in operating condition and has at   least two years of remaining useful life, as determined in   accordance with criteria established by the commission;                      (B)  replace a heavy-duty or medium-duty motor   vehicle that:                            (i)  is owned by the applicant;                            (ii)  is an on-road vehicle that has been:                                  (a)  owned, leased, or otherwise   commercially financed and operated in Texas as a fleet vehicle for   at least the two years immediately preceding the submission of a   grant application; and                                  (b)  registered in Texas [a county   located in the clean transportation zone] for at least the two years   immediately preceding the submission of a grant application; and                            (iii)  otherwise satisfies the mileage,   usage, and useful life requirements established under Paragraph (A)   as determined by documentation associated with the vehicle; or                      (C)  be a heavy-duty or medium-duty motor vehicle   repowered with a natural gas engine that:                            (i)  is installed in an on-road vehicle that   has been owned, leased, or otherwise commercially financed and   registered and operated by the applicant in Texas for at least the   two years immediately preceding the submission of a grant   application;                            (ii)  satisfies any minimum average annual   mileage or fuel usage requirements established by the commission;                            (iii)  satisfies any minimum percentage of   annual usage requirements established by the commission; and                            (iv)  is installed in an on-road vehicle   that, at the time of the vehicle's repowering, was in operating   condition and had at least two years of remaining useful life, as   determined in accordance with criteria established by the   commission.          (c)  As a condition of receiving a grant, the qualifying   vehicle must be continuously owned, leased, or otherwise   commercially financed and registered and operated in the state by   the grant recipient until the earlier of the fourth anniversary of   the activity start date established by the commission or the date   the vehicle has been in operation for 400,000 miles after the   activity start date established by the commission.  [Not less than   75 percent of the annual use of the qualifying vehicle, either   mileage or fuel use as determined by the commission, must occur in   the clean transportation zone.]          SECTION 2.  Section 394.001(1-a), Health and Safety Code, is   repealed.          SECTION 3.  The change in law made by this Act applies only   to a 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 4.  This Act takes effect September 1, 2023.