CHAPTER 386. TEXAS EMISSIONS REDUCTION PLAN

Statutes > Texas Statutes > HEALTH AND SAFETY CODE > TITLE 5. SANITATION AND ENVIRONMENTAL QUALITY > CHAPTER 386. TEXAS EMISSIONS REDUCTION PLAN

HEALTH AND SAFETY CODE

TITLE 5. SANITATION AND ENVIRONMENTAL QUALITY

SUBTITLE C. AIR QUALITY

CHAPTER 386. TEXAS EMISSIONS REDUCTION PLAN

For expiration of this chapter, see Section 386.002.

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 386.001. DEFINITIONS.

In this chapter:

(1) "Advisory board" means the Texas Emissions Reduction Plan

Advisory Board.

(2) "Affected county" includes:

(A) Bastrop County;

(B) Bexar County;

(D) Comal County;

(E) Ellis County;

(F) Gregg County;

(G) Guadalupe County;

(H) Harrison County;

(I) Hays County;

(J) Henderson County;

(K) Hood County;

(L) Hunt County;

(M) Johnson County;

(N) Kaufman County;

(O) Nueces County;

(P) Parker County;

(Q) Rockwall County;

(R) Rusk County;

(S) San Patricio County;

(T) Smith County;

(U) Travis County;

(V) Upshur County;

(W) Victoria County;

(X) Williamson County;

(Y) Wilson County; and

(Z) any other county designated as an affected county by

commission rule because of deteriorating air quality.

(3) "Commission" means the Texas Natural Resource Conservation

Commission.

(4) Repealed by Acts 2005, 79th Leg., Ch. 1125, Sec. 22, eff.

September 1, 2005.

(5) "Fund" means the Texas emissions reduction plan fund.

(6) "Incremental cost" means the cost of an applicant's project

less a baseline cost that would otherwise be incurred by an

applicant in the normal course of business. Incremental costs may

include added lease or fuel costs as well as additional capital

costs.

(7) "Laboratory" means the Energy Systems Laboratory at the

Texas Engineering Experiment Station of The Texas A&M

University System.

(8) "Nonattainment area" means an area so designated under

Section 107(d) of the federal Clean Air Act (42 U.S.C. Section

7407), as amended.

(9) "Plan" means the Texas emissions reduction plan.

(10) "Site" means the total of all stationary sources located on

one or more contiguous or adjacent properties, which are under

common control of the same person or persons under common

control.

(10-a) "Stationary engine" means a machine used in a nonmobile

application that converts fuel into mechanical motion, including

turbines and other internal combustion devices.

(11) "Utility commission" means the Public Utility Commission of

Texas.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 1331, Sec. 1, eff.

June 20, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1125, Sec. 22, eff. September 1, 2005.

Acts 2009, 81st Leg., R.S., Ch.

1125, Sec. 14, eff. September 1, 2009.

Sec. 386.002. EXPIRATION. This chapter expires August 31, 2019.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1125, Sec. 3, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

262, Sec. 2.01, eff. June 8, 2007.

Acts 2009, 81st Leg., R.S., Ch.

1125, Sec. 15, eff. September 1, 2009.

SUBCHAPTER B. TEXAS EMISSIONS REDUCTION PLAN

Sec. 386.051. TEXAS EMISSIONS REDUCTION PLAN. (a) The utility

commission, the commission, and the comptroller shall establish

and administer the Texas emissions reduction plan in accordance

with this chapter.

(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 new technology research and development program

established under Chapter 387;

(4) the clean school bus program established under Chapter 390;

and

(5) the new technology implementation grant program established

under Chapter 391.

or other funding for the energy efficiency grant program

established under Subchapter E.

(d) Equipment purchased before September 1, 2001, is not

eligible for a grant or other funding under the plan.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., 3rd C.S., ch. 11, Sec. 3,

eff. Oct. 20, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

766, Sec. 1, eff. June 17, 2005.

Acts 2009, 81st Leg., R.S., Ch.

1125, Sec. 5, eff. September 1, 2009.

Sec. 386.052. COMMISSION DUTIES. (a) In administering the plan

established under this chapter and in accordance with the

requirements of this chapter, the commission:

(1) shall:

(A) manage plan funds and oversee the plan;

(B) produce guidelines, protocols, and criteria for eligible

projects;

cost-effectiveness;

(D) prepare reports regarding the progress and effectiveness of

the plan; and

(E) take all appropriate and necessary actions so that emissions

reductions achieved through the plan are credited by the United

States Environmental Protection Agency to the appropriate

emissions reduction objectives in the state implementation plan;

and

(2) may hire staff and consultants needed to complete the

commission's duties under this section and ensure timely review

of applications and reimbursement of grant applicants' eligible

project costs.

(b) Appropriate commission objectives include:

(1) achieving maximum reductions in oxides of nitrogen to

demonstrate compliance with the state implementation plan;

(2) preventing areas of the state from being in violation of

national ambient air quality standards;

(3) achieving cost-saving and multiple benefits by reducing

emissions of other pollutants;

(4) achieving reductions of emissions of diesel exhaust from

school buses; and

(5) advancing new technologies that reduce oxides of nitrogen

and other emissions from facilities and other stationary sources.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Amended by:

Acts 2005, 79th Leg., Ch.

766, Sec. 2, eff. June 17, 2005.

Acts 2007, 80th Leg., R.S., Ch.

262, Sec. 2.02, eff. June 8, 2007.

Acts 2009, 81st Leg., R.S., Ch.

1125, Sec. 6, eff. September 1, 2009.

Sec. 386.053. GUIDELINES AND CRITERIA. (a) The commission

shall adopt grant guidelines and criteria consistent with the

requirements of this chapter.

(b) Guidelines must include protocols to calculate projected

emissions reductions, project cost-effectiveness, and safeguards

to ensure that funded projects generate emissions reductions not

otherwise required by state or federal law.

available to the public and the United States Environmental

Protection Agency before the 30th day preceding the date of final

adoption and shall hold at least one public meeting to consider

public comments on the draft guidelines and criteria before final

adoption. The public meeting shall be held in the affected state

implementation plan area, and if the guidelines affect more than

one state implementation plan area, a public meeting shall be

held in each affected state implementation plan area affected by

the guidelines.

(d) The commission may propose revisions to the guidelines and

criteria adopted under this section as necessary to improve the

ability of the plan to achieve its goals. Revisions may include,

among other changes, adding additional pollutants, adding

stationary engines or engines used in stationary applications,

adding vehicles and equipment that use fuels other than diesel,

or adjusting eligible program categories, as appropriate, to

ensure that incentives established under this chapter achieve the

maximum possible emissions reductions. The commission shall make

a proposed revision available to the public before the 30th day

preceding the date of final adoption of the revision and shall

hold at least one public meeting to consider public comments on

the proposed revision before final adoption.

(e) Because the legislature finds that the current state of air

quality in the state jeopardizes the state's ability to meet

federal air quality requirements, the commission and the

comptroller may adopt emergency rules under Section 2001.034,

Government Code, with abbreviated notice, to carry out any

rulemaking necessary to implement this chapter.

(f) Except as provided by Subsection (e), the rulemaking

requirements of Chapter 2001, Government Code, do not apply to

the adoption or revision of guidelines and criteria under this

section.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 1331, Sec. 2, eff.

June 20, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1125, Sec. 4, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

262, Sec. 2.03, eff. June 8, 2007.

Sec. 386.054. MONITORING PROCEDURES. (a) The commission shall

develop procedures for monitoring whether the emissions

reductions projected for projects awarded grants under this

chapter are actually achieved. Monitoring procedures may include

project reviews and contract requirements that the grant

recipient provide information semiannually about the project. If

the commission requires an annual report, the report shall

contain a minimum amount of information required from a recipient

and the report format shall be simple and convenient.

(b) Monitoring and reviewing procedures must be sufficient to

enable emissions reductions generated by funded projects to be

fully credited to air quality plans.

from time to time as necessary or appropriate to enhance the

effectiveness of the plan.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.055. AVAILABILITY OF EMISSIONS REDUCTION CREDITS

GENERALLY. (a) A project funded under a program established

under this chapter may not be used for credit under any state or

federal emissions reduction credit averaging, banking, or trading

program.

(b) An emissions reduction generated by a program established

under this chapter:

(1) may not be used as a marketable emissions reduction credit

or, except as provided by Section 386.056, to offset any

emissions reduction obligation; and

(2) may be used to demonstrate conformity with the state

implementation plan.

would otherwise generate marketable credits under state or

federal emissions reduction credit averaging, banking, or trading

programs is not eligible for funding under a program established

under this chapter unless:

(1) the project includes the transfer of the reductions that

would otherwise be marketable credits to the state implementation

plan or the owner or operator as provided by Section 386.056; and

(2) the reductions are permanently retired.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.056. AVAILABILITY OF EMISSIONS REDUCTIONS IN CERTAIN

NONATTAINMENT AREAS. (a) An owner or operator of a site located

in the Houston-Galveston or Dallas-Fort Worth nonattainment area

may use emissions reductions generated by a program established

under this chapter to offset the requirements of commission rules

relating to control of air pollution from oxides of nitrogen if:

(1) the owner or operator of the site contributes to the fund

$75,000 for each ton of emissions that is used, not to exceed 25

tons annually and not to exceed one-half ton per day;

(2) the owner or operator of the site demonstrates to the

commission's satisfaction that the site will be in full

compliance with the commission's emissions reduction rules not

later than the fifth anniversary of the date on which the

emissions reductions would otherwise be required;

(3) emissions from the site are reduced by at least 80 percent

from the established baseline; and

(4) the commission approves a petition by the owner or operator

that demonstrates that it is technically infeasible to comply

with the commission's emissions reduction requirements above 80

percent.

(b) Funds collected under this section shall be used to generate

emissions reductions needed to meet the commission's attainment

demonstration.

generated from funds collected under this section occur in the

same nonattainment area in which the site that purchased the

emissions reductions is located.

(d) The commission shall assure that the emissions reductions

funded under the programs authorized by this subchapter used to

offset commission requirements under this section benefit the

community in which the site using the emissions reductions is

located. If there are no eligible emissions reduction projects

within the community, the commission may authorize projects in an

adjacent community. In this subsection, "community" means a

justice of the peace precinct.

(e) The commission shall assure that emission reduction credits

may be received in the Houston-Galveston nonattainment area for

energy efficiency and urban heat island programs in connection

with the State Implementation Plan for the eight-hour ozone

standard.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1095, Sec. 2, eff. September 1, 2005.

Sec. 386.057. REVIEW AND REPORTING REQUIREMENTS. (a) The

commission, in consultation with the advisory board, annually

shall review programs established under the plan, including each

project funded under the plan, the amount granted for the

project, the emissions reductions attributable to the project,

and the cost-effectiveness of the project.

(b) Not later than December 1, 2002, and not later than December

1 of each subsequent second year, the commission, in consultation

with the advisory board, shall publish and submit to the

legislature a biennial plan report. The report must include:

(1) the information included in the annual reviews conducted

under Subsection (a);

(2) specific information for individual projects as required by

Subsection (c);

(3) information contained in reports received under Sections

386.205, 388.003(e), 388.006, and 391.104; and

(4) a summary of the commission's activities under Section

386.052.

under Subchapter C, the report must:

(1) describe and evaluate:

(A) the infrastructure facilities funded under that subchapter;

(B) the degree to which the funded facilities are supporting

on-road or non-road diesel projects;

facility; and

(D) associated emissions reductions and cost-effectiveness; and

(2) make a finding regarding the need for additional

appropriations from the fund to improve the ability of the

program to achieve its goals.

(d) The report must:

(1) account for money received, money disbursed as grants, money

reserved for grants based on project approvals, and any

recommended transfer of money between allocations and must

estimate future demand for grant funds under the plan;

(2) describe the overall effectiveness of the plan in delivering

the emissions reductions that may be credited to air quality

plans;

(3) evaluate the effectiveness of the plan in soliciting and

evaluating project applications, providing awards in a timely

manner, and monitoring project implementation;

(4) describe adjustments made to project selection criteria and

recommend any further needed changes or adjustments to the grant

programs, including changes in grant award criteria,

administrative procedures, or statutory provisions that would

enhance the plan's effectiveness and efficiency;

(5) describe adjustments made to the maximum cost-effectiveness

amount and award amount;

(6) evaluate the benefits of addressing additional pollutants as

part of the plan; and

(7) include legislative recommendations necessary to improve the

effectiveness of the plan.

(e) Repealed by Acts 2005, 79th Leg., Ch. 1125, Sec. 22, eff.

September 1, 2005.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1125, Sec. 22, eff. September 1, 2005.

Acts 2009, 81st Leg., R.S., Ch.

1125, Sec. 7, eff. September 1, 2009.

Sec. 386.058. TEXAS EMISSIONS REDUCTION PLAN ADVISORY BOARD.

(a) The Texas Emissions Reduction Plan Advisory Board consists

of 15 members appointed as provided by this section and seven ex

officio members as provided by this section.

(b) The governor shall appoint to the advisory board:

(1) a representative of the trucking industry;

(2) a representative of the air conditioning manufacturing

industry;

(3) a representative of the electric utility industry;

(4) a representative of regional transportation; and

(5) a representative of the nonprofit organization described by

Section 386.252(a)(2).

(1) a representative of the engine manufacturing industry;

(2) a representative of the air transportation industry;

(3) a representative of the environmental community;

(4) a representative of the fuel cell industry; and

(5) a representative of the energy-efficient construction

industry.

(d) The speaker of the house of representatives shall appoint to

the advisory board:

(1) a representative of consumer groups;

(2) a representative of the construction industry;

(3) a representative of the automobile industry;

(4) a representative of the agriculture industry; and

(5) a representative of the fuel industry.

(e) Appointed members of the advisory board serve staggered

four-year terms, with the terms of seven or eight appointed

members expiring February 1 of each odd-numbered year. An

appointed member may be reappointed to a subsequent term.

(f) Ex officio members of the advisory board are:

(1) one member of the senate appointed by the lieutenant

governor;

(2) the presiding officer of the house standing committee having

primary jurisdiction over matters related to environmental

regulation;

(3) a representative of the commission, designated by the

executive director;

(4) a representative of the General Land Office, designated by

the Commissioner of the General Land Office;

(5) a representative of the comptroller's office, designated by

the comptroller;

(6) a representative of the Railroad Commission of Texas,

designated by the presiding officer of the agency; and

(7) a representative of the United States Environmental

Protection Agency's Region 6 office, designated by the United

States Environmental Protection Agency Region 6 administrator.

(g) The advisory board annually shall elect a presiding officer.

(h) The advisory board shall review the plan and shall recommend

to the commission changes to revenue sources or financial

incentives or any legislative, regulatory, or budgetary changes

needed.

(i) The commission shall provide necessary staff support to the

advisory board.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 1328, Sec. 10, eff.

June 21, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1125, Sec. 5, eff. September 1, 2005.

SUBCHAPTER C. DIESEL EMISSIONS REDUCTION INCENTIVE PROGRAM

Sec. 386.101. DEFINITIONS. In this subchapter:

(1) "Cost-effectiveness" means the total dollar amount expended

divided by the total number of tons of oxides of nitrogen

emissions reduction attributable to that expenditure.

Cost-effectiveness for the program as a whole and for particular

projects under the program is calculated as provided by Sections

386.105 and 386.106.

(2) "Fuel cell" means an electrochemical device that uses fuel

and oxidant to continuously generate electricity.

(3) "Motor vehicle" means a self-propelled device designed for

transporting persons or property on a public highway that is

required to be registered under Chapter 502, Transportation Code.

(4) "Non-road diesel" means a vehicle or piece of equipment,

excluding a motor vehicle or on-road diesel, that is powered by a

non-road engine, including:

(A) non-road nonrecreational equipment and vehicles;

(B) construction equipment;

(D) marine vessels; and

(E) other high-emitting diesel engine categories established by

the commission.

(5) "Non-road engine" means an internal combustion engine that

is:

(A) in or on a piece of equipment that is self-propelled or that

propels itself and performs another function, excluding a vehicle

that is used solely for competition;

(B) in or on a piece of equipment that is intended to be

propelled while performing its function; or

one location to another.

(6) "On-road diesel" means an on-road diesel-powered motor

vehicle that has a gross vehicle weight rating of 8,500 pounds or

more.

(7) "Program" means the diesel emissions reduction incentive

program established under this subchapter.

(8) "Qualifying fuel" includes any liquid or gaseous fuel or

additives registered or verified by the United States

Environmental Protection Agency that is ultimately dispensed into

a motor vehicle or on-road or non-road diesel that provides

reductions of emissions of oxides of nitrogen beyond reductions

required by state or federal law.

(9) "Repower" means to replace an old engine powering an on-road

or non-road diesel with a new engine, a used engine, a

remanufactured engine, or electric motors, drives, or fuel cells.

(10) "Retrofit" means to equip an engine and fuel system with

new emissions-reducing parts or technology verified by the United

States Environmental Protection Agency after manufacture of the

original engine and fuel system.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 1331, Sec. 3, eff.

June 20, 2003.

Sec. 386.102. PROGRAM. (a) The commission shall establish and

administer a diesel emissions reduction incentive program. Under

the program, the commission shall provide grants for eligible

projects to offset the incremental cost of projects that reduce

emissions of oxides of nitrogen from high-emitting diesel sources

in nonattainment areas and affected counties of the state. The

commission shall determine the eligibility of projects.

(b) Projects that may be considered for a grant under the

program include:

(1) purchase or lease of on-road or non-road diesels;

(2) emissions-reducing retrofit projects for on-road or non-road

diesels;

(3) emissions-reducing repower projects for on-road or non-road

diesels;

(4) purchase and use of emissions-reducing add-on equipment for

on-road or non-road diesels;

(5) development and demonstration of practical, low-emissions

retrofit technologies, repower options, and advanced technologies

for on-road or non-road diesels with lower emissions of oxides of

nitrogen;

(6) use of qualifying fuel;

(7) implementation of infrastructure projects; and

(8) replacement of on-road or non-road diesels with newer

on-road or non-road diesels.

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 an on-road diesel or equipment required only

by local law or regulation or by corporate or controlling board

policy of a public or private entity.

(e) To improve the success of the program the commission:

(1) shall establish cost-effective limits for grants awarded

under the program to an owner or operator of a locomotive or

marine vessel that are lower than the cost-effectiveness limits

applied to other emissions reductions grants;

(2) shall determine the maximum amount of reductions available

from the locomotive and marine sectors and develop strategies to

facilitate the maximum amount of reductions in these sectors; and

(3) shall include in the report required by Section 386.057(b)

that is due not later than December 1, 2006, an analysis of the

cost-effectiveness of the grants in these sectors.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 1331, Sec. 4, eff.

June 20, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1125, Sec. 6, eff. September 1, 2005.

Sec. 386.103. APPLICATION FOR GRANT. (a) Any person as defined

by Section 382.003 that owns one or more on-road or non-road

diesels that operate primarily within a nonattainment area or

affected county of this state or that otherwise contributes to

the state inventory of emissions of oxides of nitrogen may apply

for a grant under the program. The commission may adopt

guidelines to allow a person other than the owner to apply for

and receive a grant in order to improve the ability of the

program to achieve its goals.

(b) An application for a grant under this subchapter must be

made on an application provided by the commission and must

contain information required by the commission, including:

(1) a detailed description of the proposed project;

(2) information necessary for the commission to determine

whether the project meets eligibility requirements for the type

of project proposed, including a statement of the amounts of any

other public financial assistance the project will receive; and

(3) other information the commission may require.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 1331, Sec. 5, eff.

June 20, 2003.

Sec. 386.104. ELIGIBILITY REQUIREMENTS. (a) The commission

shall establish criteria for setting priorities for projects

eligible to receive grants under this subchapter. The commission

shall review and may modify the criteria and priorities as

appropriate.

(b) A proposed project as described in Section 386.102 must meet

the requirements of this section to be eligible for a grant under

the program.

other than a project involving a marine vessel or engine, not

less than 75 percent of vehicle miles traveled or hours of

operation projected for the five years immediately following the

award of a grant must be projected to take place in a

nonattainment area or affected county of this state. The

commission may also allow vehicle travel on highways and

roadways, or portions of a highway or roadway, designated by the

commission and located outside a nonattainment area or affected

county to count towards the percentage of use requirement in this

subsection. For a proposed project involving a marine vessel or

engine, the vessel or engine must be operated in the intercoastal

waterways or bays adjacent to a nonattainment area or affected

county of this state for a sufficient amount of time over the

lifetime of the project, as determined by the commission, to meet

the cost-effectiveness requirements of Section 386.105. For a

proposed project involving non-road equipment used for natural

gas recovery purposes, the equipment must be operated in a

nonattainment area or affected county for a sufficient amount of

use over the lifetime of the project, as determined by the

commission, to meet the cost-effectiveness requirements of

Section 386.105.

(d) Each proposed project must meet the cost-effectiveness

requirements of Sections 386.105 and 386.106.

(e) A proposed repower project must exceed commission

requirements relating to baseline emissions levels of the engines

being replaced under the project.

(f) A proposed retrofit, repower, replacement, or add-on

equipment project must document, in a manner acceptable to the

commission, a reduction in emissions of oxides of nitrogen of at

least 30 percent compared with the baseline emissions adopted by

the commission for the relevant engine year and application.

After study of available emissions reduction technologies, after

public notice and comment, and after consultation with the

advisory board, the commission may revise the minimum percentage

reduction in emissions of oxides of nitrogen required by this

subsection to improve the ability of the program to achieve its

goals.

(g) If a baseline emissions standard does not exist for on-road

or non-road diesels in a particular category, the commission, for

purposes of this subchapter, shall establish an appropriate

baseline emissions level for comparison purposes.

(h) The commission may approve payments to offset the

incremental cost, over the expected lifetime of the motor vehicle

or on-road or non-road diesel, of the use of qualifying fuel in a

motor vehicle or on-road or non-road diesel if the proposed

project as a whole, including the incremental fuel cost, meets

the requirements of this subchapter. The commission shall develop

an appropriate method for converting incremental fuel costs over

the lifetime of the motor vehicle or on-road or non-road diesel

into an initial cost for purposes of determining

cost-effectiveness as required by Section 386.105.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 1331, Sec. 6, eff.

June 20, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

262, Sec. 2.04, eff. June 8, 2007.

Acts 2009, 81st Leg., R.S., Ch.

1125, Sec. 16, eff. September 1, 2009.

Sec. 386.105. CALCULATION OF COST-EFFECTIVENESS. (a) In

calculating cost-effectiveness, one-time grants of money at the

beginning of a project shall be annualized using a time value of

public funds or discount rate determined for each project by the

commission, taking into account the interest rate on bonds,

interest earned by state funds, and other factors the commission

considers appropriate.

(b) The commission shall establish reasonable methodologies for

evaluating project cost-effectiveness consistent with Subsection

(a) and with accepted methods.

oxides of nitrogen emissions reductions not otherwise required by

state or federal law in nonattainment areas and affected counties

of this state from representative project types over the life of

the projects.

(d) The commission may include in cost-effectiveness

determinations only reductions in oxides of nitrogen emissions

that are achieved in nonattainment areas and affected counties of

this state.

(e) The commission may allow for the apportionment of credits

associated with a project between the plan and another program or

entity if the part of the credit assigned to the program that is

part of the plan still meets any applicable cost-effectiveness

criteria.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 1331, Sec. 7, eff.

June 20, 2003.

Sec. 386.106. COST-EFFECTIVENESS CRITERIA; DETERMINATION OF

GRANT AMOUNT. (a) Except as provided by Section 386.107 and

except for infrastructure projects and infrastructure purchases

that are part of a broader retrofit, repower, replacement, or

add-on equipment project, the commission may not award a grant

for a proposed project the cost-effectiveness of which,

calculated in accordance with Section 386.105 and criteria

developed under that section, exceeds $15,000 per ton of oxides

of nitrogen emissions reduced in the nonattainment area or

affected county for which the project is proposed. This

subsection does not restrict commission authority under other law

to require emissions reductions with a cost-effectiveness that

exceeds $15,000 per ton.

(b) The commission may not award a grant that, net of taxes,

provides an amount that exceeds the incremental cost of the

proposed project.

incremental lease costs so those costs may be offset by a grant

under this subchapter.

(d) In determining the amount of a grant under this subchapter,

the commission shall reduce the incremental cost of a proposed

new purchase, lease, retrofit, repower, or add-on equipment

project by the value of any existing financial incentive that

directly reduces the cost of the proposed project, including tax

credits or deductions, other grants, or any other public

financial assistance.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 1331, Sec. 8, eff.

June 20, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

262, Sec. 2.05, eff. June 8, 2007.

Sec. 386.107. ADJUSTMENT TO MAXIMUM COST-EFFECTIVENESS AMOUNT

AND AWARD AMOUNT. After study of available emissions reduction

technologies and costs and after public notice and comment, the

commission, in consultation with the advisory board, may change

the values of the maximum grant award criteria established in

Section 386.106 to account for inflation or to improve the

ability of the program to achieve its goals.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.108. INFRASTRUCTURE PROJECTS. (a) The commission

shall provide funding under Section 386.252(a)(1) for

infrastructure projects.

(b) To implement the requirement of Subsection (a), the

commission shall:

(1) solicit applications for a balanced mix of projects

involving fueling and electrification infrastructure that is

linked to motor vehicle and on-road and non-road diesel projects

and consistent with program goals;

(2) coordinate infrastructure projects with motor vehicle and

on-road and non-road diesel projects representing a broad range

of fuels, technologies, and applications as appropriate and

consistent with the goals of this chapter;

(3) adopt guidelines and criteria for infrastructure projects to

be funded under the program; and

(4) oversee, monitor, and evaluate the use of grants awarded

under this program and report on the effectiveness of this grant

program in relation to the purposes and goals of this chapter.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.109. ELIGIBLE INFRASTRUCTURE PROJECTS. (a) The

commission may consider for funding under Section 386.108:

(1) the purchase and installation at a site of equipment that is

designed primarily to dispense qualifying fuel, other than

standard gasoline or diesel, or the purchase of on-site mobile

fueling equipment;

(2) infrastructure projects, including auxiliary power units,

designed to dispense electricity to:

(A) motor vehicles;

(B) on-road and non-road diesels; and

(3) a project that involves a technology that allows a vehicle

to replace with electric power, while the vehicle is parked, the

power normally supplied by the vehicle's internal combustion

engine; and

(4) a project to reduce air pollution and engine idling by

relieving congestion through rail relocation or improvement at a

rail intersection that is located in a nonattainment or near

nonattainment area.

(b) The commission may provide funding to other state agencies

to implement projects under Subsection (a)(3), including funding

for the lease, purchase, or installation of idle reduction

technologies and facilities at rest areas and other public

facilities on major highway transportation routes located in

areas eligible for funding or for marine vessels operating on

water routes eligible for funding. Funding under this subsection

may include reasonable operational costs determined by the

commission to be needed for the initial start-up and proper

operation of the idle reduction technologies. The state agency

leasing, owning, or operating the idle reduction facility

constructed with funds provided under this subsection may, but is

not required to, charge reasonable fees for the provision of idle

reduction services provided that those fees are used to directly

offset the cost of providing the services.

infrastructure project, the commission shall encourage the use of

a technology that allows a vehicle to replace with electric

power, while the vehicle is parked, the power normally supplied

by the vehicle's internal combustion engine at the state's ports

and border crossings in affected areas.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

262, Sec. 2.06, eff. June 8, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1165, Sec. 2, eff. June 15, 2007.

Reenacted by Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 12.012, eff. September 1, 2009.

Sec. 386.110. APPLICATION PACKAGE FOR INFRASTRUCTURE PROJECTS.

(a) The commission shall develop a simple, standardized

application package for infrastructure project 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;

(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.

application process, to calculate tons of emissions reduced or

cost-effectiveness.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.111. APPLICATION REVIEW PROCEDURES. (a) The

commission shall review an application for a grant for a project

authorized under this subchapter, including an application for a

grant for an infrastructure project, immediately on receipt of

the application. 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.

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 or underachievement in dispensing qualifying fuel

compared with the volume of emissions reductions or amount of

fuel dispensed 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

subchapter.

(e) An applicant may seek reimbursement for qualifying equipment

installed after the effective date of this program.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1125, Sec. 7, eff. September 1, 2005.

Sec. 386.112. ON-ROAD DIESEL PURCHASE OR LEASE INCENTIVE. (a)

The commission shall develop a purchase or lease incentive

program for new on-road diesels and shall adopt rules necessary

to implement the program and to reimburse a purchaser or lessee

of a new on-road diesel that is eligible for reimbursement of

incremental costs under this subchapter.

(b) The program shall authorize statewide incentives for the

reimbursement of incremental costs for the purchase or lease,

according to the schedule provided by Section 386.113, of new

on-road diesels that are certified by the United States

Environmental Protection Agency or the California Air Resources

Board to an emissions standard provided by Section 386.113 if the

purchaser or lessee of the on-road diesel agrees to register the

vehicle in this state and to operate the on-road diesel in this

state for not less than 75 percent of the on-road diesel's annual

mileage.

diesel. The incentive shall be provided to the purchaser if the

on-road diesel is not purchased for the purpose of leasing the

on-road diesel to another person, or to the lessee and not to the

purchaser if the on-road diesel is purchased for the purpose of

leasing the on-road diesel to another person. A lease incentive

for a new on-road diesel shall be prorated based on an eight-year

lease term.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 1331, Sec. 9, eff.

June 20, 2003.

Sec. 386.113. ON-ROAD DIESEL PURCHASE OR LEASE INCENTIVE

SCHEDULE. A new on-road diesel is eligible for reimbursement of

incremental costs according to the following schedule:

Incentive emissions standard

Reimbursement amount

(oxides of nitrogen)

Date of manufacture

(2001)

(10/1/02-9/30/06)

2.5 g/bhp-hr NOx

1.2 g/bhp-hr NOx

up to $15,000

1.5 g/bhp-hr NOx

0.5 g/bhp-hr NOx

up to $25,000

0.0 g/bhp-hr NOx

up to $25,000

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.114. MODIFICATION OF INCENTIVE EMISSIONS STANDARDS.

After evaluating new technologies and after public notice and

comment, the commission, in consultation with the advisory board,

may change the incentive emissions standards established by

Section 386.113 to improve the ability of the program to achieve

its goals.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.115. MODIFICATION OF VEHICLE ELIGIBILITY. After

evaluating the availability of vehicles meeting the emissions

standards and after public notice and comment, the commission, in

consultation with the advisory board, may expand the program to

include other on-road vehicles, regardless of fuel type used,

that meet the emissions standards, have a gross vehicle weight

rating of greater than 8,500 pounds, and are purchased or leased

in lieu of a new on-road diesel.

Added by Acts 2003, 78th Leg., ch. 1331, Sec. 10, eff. June 20,

2003.

Sec. 386.116. SMALL BUSINESS INCENTIVES. (a) In this section,

"small business" means a business owned by a person who:

(1) owns and operates not more than two vehicles, one of which

is:

(A) an on-road diesel with a pre-1994 engine model; or

(B) a non-road diesel with an engine with uncontrolled

emissions; and

(2) has owned the vehicle described by Subdivision (1)(A) or (B)

for more than one year.

(b) The commission by rule shall develop a method of providing

fast and simple access to grants under this subchapter for a

small business.

of grants under this section to encourage the use of vehicles

that produce fewer emissions.

(d) The commission shall include in the biennial plan report

required by Section 386.057(b) a report of commission actions and

results under this section.

Added by Acts 2003, 78th Leg., ch. 1331, Sec. 10, eff. June 20,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1125, Sec. 8, eff. September 1, 2005.

Sec. 386.117. REBATE GRANTS. (a) The commission shall adopt a

process for awarding grants under this subchapter in the form of

rebates to streamline the grant application, contracting,

reimbursement, and reporting processes for certain projects. The

process adopted under this section must:

(1) designate certain types of projects, such as repowers,

replacements, and retrofits, as eligible for rebates;

(2) project standardized oxides of nitrogen emissions reductions

for each designated project type;

(3) assign a standardized rebate amount for each designated

project type;

(4) allow for processing rebates on an ongoing first-come,

first-served basis; and

(5) consolidate, simplify, and reduce the administrative work

for applicants and the commission associated with grant

application, contracting, reimbursement, and reporting processes

for designated project types.

(b) The commission may limit or expand the designated project

types as necessary to further the goals of the program.

for a specific region or may award the grants statewide.

(d) The commission may administer the rebate grants or may

designate another entity to administer the grants.

(e) The commission shall:

(1) investigate the requirements for establishing an

Internet-based application process for rebate grants and report

those requirements to the legislature not later than December 31,

2007; or

(2) implement an Internet-based application process for rebate

grants not later than June 1, 2008.

(f) The commission or its designee shall notify potential

applicants of any changes to the rebate grant process by its

e-mail list service and posting those changes on its Internet

website at least 30 days before the changes become effective.

Added by Acts 2005, 79th Leg., Ch.

1125, Sec. 9, eff. September 1, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

262, Sec. 2.07, eff. June 8, 2007.

SUBCHAPTER D. MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM

Sec. 386.151. DEFINITIONS. In this subchapter:

(1) "Bin" or "emissions bin" means a set of emissions standards

applicable to exhaust pollutants measured on the Federal Test

Procedure (FTP) according to 40 C.F.R. Section 86.1811-04.

(2) "Light-duty motor vehicle" means a motor vehicle with a

gross vehicle weight rating of less than 10,000 pounds.

(3) "Motor vehicle" means a self-propelled device designed for

transporting persons or property on a public highway that is

required to be registered under Chapter 502, Transportation Code.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.152. COMPTROLLER AND COMMISSION DUTIES REGARDING

LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE INCENTIVE PROGRAM.

(a) The comptroller and the commission shall develop a purchase

or lease incentive program for new light-duty motor vehicles and

shall adopt rules necessary to implement the program.

(b) The program shall authorize statewide incentives for the

purchase or lease, according to the schedule provided by Section

386.153, of new light-duty motor vehicles that are certified by

the United States Environmental Protection Agency to meet an

emissions standard that is at least as stringent as those

provided by Section 386.153 for a purchaser or lessee who agrees

to register the vehicle in this state and to operate the vehicle

in this state for not less than 75 percent of the vehicle's

annual mileage.

motor vehicle. The incentive shall be provided to the lessee and

not to the purchaser if the motor vehicle is purchased for the

purpose of leasing the vehicle to another person.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.153. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE

INCENTIVE SCHEDULE. A new light-duty motor vehicle is eligible

for an incentive according to the following schedule:

Incentive emissions standard and incentive amount

Model year 2003-2007

Bin 4 $1,250

Bin 3 $2,225

Bin 2 $3,750

Bin 1 $5,000

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.154. MODIFICATION OF INCENTIVE EMISSIONS STANDARDS.

After evaluating new technologies and after public notice and

comment, the commission, in consultation with the advisory board,

may change the incentive emissions standards established by

Section 386.153 to improve the ability of the program to achieve

its goals.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.155. MANUFACTURER'S REPORT. At the beginning of but

not later than July 1 of each year preceding the vehicle model

year, a manufacturer of motor vehicles shall provide to the

commission a list of the new vehicle models that the manufacturer

intends to sell in this state during that model year that meet

the incentive emissions standards established by the schedules

set out under Section 386.153. The manufacturer may supplement

the list provided to the commission under this section as

necessary to include additional new vehicle models the

manufacturer intends to sell in this state during the model year.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.156. LIST OF ELIGIBLE MOTOR VEHICLES. (a) On August 1

each year the commission shall publish and provide to the

comptroller a list of the new model motor vehicles as listed for

the commission under Section 386.155. The commission shall

publish and provide to the comptroller supplements to that list

as necessary to include additional new vehicle models listed in a

supplement to the original list provided by a manufacturer under

Section 386.155.

(b) The comptroller shall distribute the list of eligible motor

vehicles to all new motor vehicle dealers and leasing agents in

this state.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.158. LIGHT-DUTY MOTOR VEHICLE PURCHASE OR LEASE

INCENTIVE. (a) A person who purchases or leases a new

light-duty motor vehicle that has been listed under Section

386.155 is eligible for an incentive under this subchapter.

(b) A lease incentive for a new light-duty motor vehicle shall

be prorated based on a four-year lease term.

subchapter, the purchaser or lessee of a new light-duty motor

vehicle eligible for an incentive under this subchapter shall

apply for the incentive in the manner provided by law or by rule

of the comptroller.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.160. COMPTROLLER TO ACCOUNT FOR MOTOR VEHICLE PURCHASE

OR LEASE INCENTIVES. (a) The comptroller by rule shall develop

a method to administer and account for the motor vehicle purchase

or lease incentives authorized by this subchapter and to pay

incentive money to the purchaser or lessee of a new motor

vehicle, on application of the purchaser or lessee as provided by

this subchapter.

(b) The comptroller shall develop and publish forms and

instructions for the purchaser or lessee of a new motor vehicle

to use in applying to the comptroller for an incentive payment

under this subchapter. The comptroller shall make the forms

available to new motor vehicle dealers and leasing agents.

Dealers and leasing agents shall make the forms available to

their prospective purchasers or lessees.

this section, the comptroller shall develop and publish a

verification form by which, with information provided by the

dealer or leasing agent, the comptroller can verify the sale of a

vehicle covered by this subchapter. The verification form shall

include at least the name of the purchaser, the vehicle

identification number of the vehicle involved, the date of the

purchase, and the name of the new motor dealer or leasing agent

involved in the transaction. At the time of sale or lease of a

vehicle eligible for an incentive under this subchapter, the

dealer or leasing agent shall complete the verification form

supplied to the dealer by the comptroller. The purchaser or

lessee shall include the completed verification form as part of

the purchaser's application for an incentive. The dealer shall

maintain a copy of the completed verification form for at least

two years from the date of the transaction.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.161. REPORT TO COMMISSION; SUSPENSION OF PURCHASE OR

LEASE INCENTIVES. (a) The comptroller shall report to the

commission annually regarding motor vehicle purchase or lease

incentives.

(b) If the balance available for motor vehicle purchase or lease

incentives falls below 15 percent of the total allocated for the

incentives during that fiscal year, the comptroller by order

shall suspend the incentives until the date the comptroller can

certify that the balance available in the fund for incentives is

an amount adequate to resume the incentives or the beginning of

the next fiscal year, whichever is earlier. If the comptroller

suspends the incentives, the comptroller shall immediately notify

the commission and all new motor vehicle dealers and leasing

agents that the incentives have been suspended.

available to motor vehicle dealers and leasing agents for the

dealers and agents to call to verify that incentives are

available. The comptroller may provide for issuing verification

numbers over the telephone line.

(d) Reliance by a dealer or leasing agent on information

provided by the comptroller or commission is a complete defense

to an action involving or based on eligibility of a vehicle for

an incentive or availability of vehicles eligible for an

incentive.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

SUBCHAPTER E. ENERGY EFFICIENCY GRANT PROGRAM

Sec. 386.201. DEFINITIONS. In this subchapter:

(1) "Electric cooperative" has the meaning assigned by Section

11.003, Utilities Code.

(2) "Electric utility" has the meaning assigned by Section

31.002, Utilities Code.

(3) "Municipally owned utility" has the meaning assigned by

Section 11.003, Utilities Code.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.202. GRANT PROGRAM. (a) The utility commission shall

develop an energy efficiency grant program using program

templates that are consistent with rules of the utility

commission adopted under Section 39.905, Utilities Code.

(b) Programs approved under this subchapter and other energy

efficiency programs administered by the utility commission must

include energy conservation programs for the retirement of

materials and appliances that contribute to energy consumption or

peak energy demand to ensure the reduction of energy consumption,

energy demand, or peak loads, and associated emissions of air

contaminants.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001. Amended by Acts 2003, 78th Leg., ch. 1331, Sec. 11, eff.

June 20, 2003.

Sec. 386.203. ADMINISTRATION OF GRANTS. Money allocated by the

utility commission under the grant program developed under this

subchapter shall be administered by electric utilities, electric

cooperatives, and municipally owned utilities. A participating

electric utility, electric cooperative, or municipally owned

utility shall be reimbursed from the fund for costs incurred by

the utility in administering the energy efficiency grant program

established under this subchapter. Reimbursable administrative

costs of a participating entity may not exceed 10 percent of the

entity's total program budget before January 1, 2003, and may not

exceed five percent of the entity's total program budget on or

after that date.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.204. LIMITATION ON DUTY OF PARTICIPATING UTILITY. (a)

This subchapter obligates an electric utility, electric

cooperative, or municipally owned utility only to administer the

funding allocated to the entity by the utility commission in

accordance with this subchapter.

(b) The obligation of an electric utility under this subchapter

is separate and apart from, and does not affect an obligation of

the electric utility under, Section 39.905, Utilities Code, or a

rule adopted under that section.

this subchapter may not be used by an electric utility, electric

cooperative, or municipally owned utility to satisfy an

obligation to reduce air contaminant emissions under state or

federal law or a state or federal regulatory program.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Sec. 386.205. EVALUATION OF STATE ENERGY EFFICIENCY PROGRAMS.

In cooperation with the laboratory, the utility commission shall

provide an annual report to the commission that, by county,

quantifies the reductions of energy demand, peak loads, and

associated emissions of air contaminants achieved from the

programs implemented under this subchapter and from those

implemented under Section 39.905, Utilities Code.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

SUBCHAPTER F. TEXAS EMISSIONS REDUCTION PLAN FUND

Sec. 386.251. FUND. (a) The Texas emissions reduction plan

fund is an account in the state treasury.

(b) The fund is administered by the commission for the benefit

of the plan established under this chapter. The fund is exempt

from the application of Section 403.095, Government Code.

Interest earned on the fund shall be credited to the fund.

(1) the amount of money deposited to the credit of the fund

under:

(A) Section 386.056;

(B) Sections 151.0515 and 152.0215, Tax Code; and

Code; and

(2) grant money recaptured under Section 386.111(d) and Chapter

391.

Added by Acts 2001, 77th Leg., ch. 967, Sec. 1(b), eff. Sept. 1,

2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1125, Sec. 10, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

262, Sec. 2.08, eff. June 8, 2007.

Acts 2009, 81st Leg., R.S., Ch.

1125, Sec. 8, eff. September 1, 2009.

Sec. 386.252. USE OF FUND.

Text of subsection as amended by Acts 2009, 81st Leg., R.S., Ch.

1125, Sec. 23

(a) Money in the fund may be used only to implement and

administer programs established under the plan and shall be

allocated as follows:

(1) for the diesel emissions

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CHAPTER 386. TEXAS EMISSIONS REDUCTION PLAN