89R15877 JRR-F     By: Phelan H.B. No. 4400       A BILL TO BE ENTITLED   AN ACT   relating to supplemental environmental projects authorized by the   Texas Commission on Environmental Quality.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 7.067, Water Code, is amended by adding   Subsections (d), (e), and (f) to read as follows:          (d)  The commission may determine the types of projects that   may be approved as a supplemental environmental project.  For a   respondent that is a local government, those types of projects must   include:                (1)  purchasing, operating, or maintaining:                      (A)  alternative fuel vehicles, including   passenger cars, light trucks, heavy trucks, and buses; and                      (B)  alternative fuel heavy equipment, including   tractors, bulldozers, front-end loaders, and motor graders;                (2)  constructing, operating, or maintaining   alternative fuel refueling infrastructure necessary to operate an   alternative fuel fleet; and                (3)  providing energy efficiency upgrades to buildings   and facilities owned by the local government, including heating,   ventilation, air conditioning, lighting, and building envelope   upgrades.          (e)  For a supplemental environmental project involving   alternative fuel vehicles, the commission:                (1)  must allow the project to include:                      (A)  the entire cost of the vehicle; and                      (B)  any alternative fuel equipment or upgrades   involved; and                (2)  may not limit the project to including only the   difference in cost between conventional fuel vehicles, equipment,   or upgrades and the alternative fuel counterparts.          (f)  The commission:                (1)  may not require a contract associated with a   supplemental environmental project to be for a term of less than   five years; and                (2)  must allow a contract associated with a   supplemental environmental project to be renewable for periods of   at least five years.          SECTION 2.  This Act takes effect September 1, 2025.