SB981 - Relating to the use of school buses by public schools.

  89R9228 ANG-D     By: Eckhardt S.B. No. 981       A BILL TO BE ENTITLED   AN ACT   relating to the use of school buses by public schools.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 34.009(j), Education Code, is amended to   read as follows:          (j)  A contract under this section may have any lawful term   of not less than 2  [ two ] or more than 15 [ 10 ] years.          SECTION 2.  Section 390.002(b), Health and Safety Code, is   amended to read as follows:          (b)  Projects that may be considered for a grant under the   program include:                (1)  diesel oxidation catalysts for school buses built   before 1994;                (2)  diesel particulate filters for school buses built   from 1994 to 1998;                (3)  the purchase and use of emission-reducing add-on   equipment for school buses, including devices that reduce crankcase   emissions;                (4)  the use of qualifying fuel;                (5)  other technologies that the commission finds will   bring about significant emissions reductions; [ and ]                (6)   the replacement or conversion of a [ pre-2007 model   year ] school bus eligible for replacement or conversion under   Section 390.004; and                 (7)     the installation of charging infrastructure for   electric school buses .          SECTION 3.  Section 390.003, Health and Safety Code, is   amended by adding Subsection (a-1) to read as follows:           (a-1)     A private entity that leases school buses to a school   district or provides school bus services or supporting   infrastructure to a school district by contract may apply for and   receive a grant under the program.          SECTION 4.  Section 390.004, Health and Safety Code, is   amended by amending Subsections (a), (c), and (d) and adding   Subsections (a-1) and (a-2) to read as follows:          (a)  The commission by rule shall establish criteria for   setting priorities for projects eligible to receive grants under   this chapter. Except as provided by Subsection (a-1), the [ The ]   commission shall review and may modify the criteria and priorities   as appropriate.           (a-1)     The criteria must prioritize projects that achieve   the greatest reductions in diesel exhaust, especially particulate   matter.           (a-2)     The commission shall ensure that at least 75 percent   of the money issued for grants under this chapter is issued for   projects to purchase electric buses or to convert diesel buses into   electric buses.          (c)  A school bus proposed for replacement must:                (1)  be of model year 2006 or earlier if the bus will be   replaced with a combustion engine bus ;                 (1-a) be of a model year that is at least nine years   older than the year in which the grant application is submitted or   have an odometer reading at least 200,000 miles if the bus will be   replaced with an electric bus;                (2)  have been owned and operated by the applicant for   at least the two years before submission of the grant application;                (3)  be in good operational condition; and                (4)  be currently used on a regular, daily route to and   from a school.          (d)  A school bus proposed for purchase to replace a   [ pre-2007 model year ] school bus described by Subsection (c) must   be of the current model year or the year before the current model   year at the time of submission of the grant application.          SECTION 5.  Section 390.005(a), Health and Safety Code, is   amended to read as follows:          (a)  A recipient of a grant under this chapter shall use the   grant to pay the incremental costs of the project for which the   grant is made, which may include the reasonable and necessary   expenses incurred for the labor needed to install   emissions-reducing equipment or vehicle charging infrastructure .   The recipient may not use the grant to pay the recipient's   administrative expenses.          SECTION 6.  The changes in law made by this Act in Chapter   390, Health and Safety Code, apply only to a Texas emissions   reduction plan 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 7.  This Act takes effect September 1, 2025.