By: Landgraf H.B. No. 3100       A BILL TO BE ENTITLED   AN ACT   relating to the creation of a hydrogen infrastructure and vehicle   grant 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; [and]                (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 and vehicle   grant program established under Subchapter G.          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)  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)  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)  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)  not more than $8 million may be used for the Texas   hydrogen infrastructure and vehicle grant program established   under Subchapter G; 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 G to read as follows:   SUBCHAPTER G. TEXAS HYDROGEN INFRASTRUCTURE AND VEHICLE GRANT   PROGRAM          Sec. 386.301.  DEFINITIONS. In this subchapter:                (1)  "Hydrogen vehicle" means a motor vehicle that uses   hydrogen to operate the vehicle, including through the use of   hydrogen fuel cells or an internal combustion engine that runs on   hydrogen.                (2)  "Program" means the Texas hydrogen infrastructure   and vehicle grant program established under this subchapter.           Sec. 386.302.  PROGRAM. (a) The commission shall establish   and administer the Texas hydrogen infrastructure and vehicle grant   program to encourage the adoption of hydrogen infrastructure and   vehicles. Under the program, the commission shall provide funding   for eligible projects to offset the incremental cost of projects   that reduce emissions of oxides of nitrogen from high-emitting   sources in the state. The commission shall determine the   eligibility of projects.          (b)  Projects that may be considered for a grant under the   program include:                (1)  implementation of hydrogen infrastructure   projects;                (2)  purchase or lease of on-road or non-road hydrogen   vehicles;                (3)  replacement of on-road or non-road vehicles with   newer on-road or non-road hydrogen vehicles; and                (4)  use of hydrogen fuel.          (c)  A project listed in Subsection (b) is not eligible if it   is required by any state or federal law, rule or regulation,   memorandum of agreement, or other legally binding document. This   subsection does not apply to:                (1)  an otherwise qualified project, regardless of the   fact that the state implementation plan assumes that the change in   equipment, vehicles, or operations will occur, if on the date the   grant is awarded the change is not required by any state or federal   law, rule or regulation, memorandum of agreement, or other legally   binding document; or                (2)  the purchase of a hydrogen vehicle or facility   required only by local law or regulation or by corporate or   controlling board policy of a public or private entity.          Sec. 386.303.  APPLICATION PACKAGE. (a) The commission   shall develop a simple, standardized application package for grants   under this subchapter. The package must include:                (1)  an application form;                (2)  a brief description of:                      (A)  the program;                      (B)  the projects that are eligible for available   funding;                      (C)  the selection criteria and evaluation   process; and                      (D)  the required documentation;                (3)  the name of a person or office to contact for more   information;                (4)  an example of the contract that an applicant will   be required to execute before receiving a grant; and                (5)  any other information the commission considers   useful to inform the applicant and expedite the application   process.          (b)  The application form shall require as much information   as the commission determines is necessary to properly evaluate each   project but shall otherwise minimize the information required.          Sec. 386.304.  APPLICATION REVIEW PROCEDURES. (a) The   commission shall review an application for a grant for a project   authorized under this subchapter. If the commission determines   that an application is incomplete, the commission shall notify the   applicant with an explanation of what is missing from the   application. The commission shall evaluate the completed   application according to the appropriate project criteria. Subject   to available funding, the commission shall make a final   determination on an application as soon as possible.          (b)  The commission shall make every effort to expedite the   application review process and to award grants to qualified   projects in a timely manner. To the extent possible, the commission   shall coordinate project review and approval with any timing   constraints related to project purchases or installations to be   made by an applicant.          (c)  The commission may deny an application for a project   that does not meet the applicable project criteria or that the   commission determines is not made in good faith, is not credible, or   is not in compliance with this chapter and the goals of this   chapter.          (d)  Subject to availability of funds, the commission shall   award a grant under this subchapter in conjunction with the   execution of a contract that obligates the commission to make the   grant and the recipient to perform the actions described in the   recipient's grant application. The contract must incorporate   provisions for recapturing grant money in proportion to any loss of   emissions reductions compared with the volume of emissions   reductions that was projected in awarding the grant. Grant money   recaptured under the contract provision shall be deposited in the   fund and reallocated for other projects under this chapter.          SECTION 4.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution. If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2023.