By: Reynolds H.B. No. 70       A BILL TO BE ENTITLED   AN ACT   relating to the creation of an energy efficiency loan guarantee   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, as   effective September 1, 2021, 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 energy efficiency loan guarantee program   established under Section 388.013.          SECTION 2.  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) 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)  at least $1 million and not more than $5 million   shall be allocated for the energy efficiency loan guarantee program   established under Section 388.013; 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 388, Health and Safety Code, is amended   by adding Section 388.013 to read as follows:          Sec. 388.013.  ENERGY EFFICIENCY LOAN GUARANTEE PROGRAM.   (a) The comptroller and the State Energy Conservation Office by   rule shall establish and administer a program that issues or   guarantees loans to be used for improvements that increase the   energy efficiency of residences that are not newly constructed.          (b)  Rules adopted under this section must establish   eligibility requirements for receipt of a loan issued or guaranteed   under this section, including emissions reduction   cost-effectiveness criteria.          (c)  The State Energy Conservation Office annually shall   submit to the commission and the laboratory a report that:                (1)  evaluates the effectiveness of the program   established under this section; and                (2)  quantifies energy savings and emissions   reductions as a result of this program for consideration in the   state implementation plan for emissions reduction credit.          SECTION 4.  Section 389.002, Health and Safety Code, is   amended to read as follows:          Sec. 389.002.  USE OF CERTAIN INFORMATION FOR FEDERAL   RECOGNITION OF EMISSIONS REDUCTIONS. The commission, using   information derived from the reports to the commission under   Sections 386.205, 388.003(e), [and] 388.006, and 388.013, shall   take all appropriate and necessary actions so that emissions   reductions achieved by means of activities under Chapters 386 and   388 are credited by the United States Environmental Protection   Agency to the appropriate emissions reduction objectives in the   state implementation plan.          SECTION 5.  This Act takes effect on the 91st day after the   last day of the legislative session.