Texas Register, Volume 38, Number 47, Pages 8313-8478, November 22, 2013 Page: 8,388
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114.612, Light-Duty Motor Vehicle Purchase or Lease Incentive
Requirements
The commission proposes to amend 114.612 by modifying the
requirements for the types of vehicles that may qualify for the
LDPLI. As specified by SB 1727, the proposed language states
that only new light-duty motor vehicles that are powered by com-
pressed natural gas (CNG), liquefied petroleum gas (LPG), or
electric drives that meet specific established criteria qualify for
the $2,500 incentive. The proposed language includes specific
vehicle criteria and requires the commission to post a list of ve-
hicles that meet these requirements on the commission's Web
site.
The proposed revisions would establish when a buyer or lessee
purchases or leases a vehicle that qualifies for the LDPLI, the
amount of time that a vehicle purchased or leased under the
LDPLI must be registered and operated within the state, and
the process for applying for the LDPLI. The proposed language
includes the information and documentation that would be re-
quired as part of the LDPLI incentive application. The proposed
language also includes the requirement that a dealership must
keep a copy of purchase or lease verification documentation for
a minimum of two years as required under THSC, 386.160(c).
In addition, the proposed language includes how the commis-
sion would prorate an incentive if a lease is less than four years.
This section would be renumbered as needed.
114.616, Manufacturer's Report
The current rule requires vehicle manufacturers to submit a re-
port annually to the commission on vehicles they intend to sell in
Texas that meet the requirements for the LDPLI. The proposed
revisions to 114.616 would update references from 114.619
to 114.612 for the type of vehicles that may qualify for the LD-
PLI and are required to be included in the manufacturer's annual
report. The proposed language would also modify the required
vehicle information that is included in the manufacturer's report
to reflect the LDPLI vehicle requirements.
114.619, Light-Duty Motor Vehicle Purchase or Lease Incentive
Schedule
The commission proposes to repeal 114.619 because the LD-
PLI schedule and accompanying incentive amounts have been
replaced with specific vehicle requirements and a set incentive
amount that is outlined in proposed 114.612.
Fiscal Note: Costs to State and Local Government
Jeffrey Horvath, Analyst in the Strategic Planning and Assess-
ment Section, has determined that for the first five-year period
the proposed rules are in effect, fiscal implications are antici-
pated for the commission but not for other units of state or local
government as a result of administration or enforcement of the
proposed rules. The proposed rules implement a voluntary in-
centive program for the purchase or lease of light-duty vehicles
powered by CNG, LPG, or electric drives.
The proposed rules would implement sections of SB 1727, which
authorized changes to the LDPLI program listed in THSC, Chap-
ter 386. The legislation transferred the responsibility of adminis-
tering the LDPLI program from the TCPA to the commission and
modified the requirements for the types of vehicles that qualify
for the LDPLI. The bill also established a maximum number of
incentives available for the program and established an incen-
tive amount of $2,500 per eligible vehicle. The LDPLI program
expires on August 31, 2015, unless future legislation extends the
expiration date.Specifically the proposed rulemaking would: 1) delete the defi-
nition for "Bin or emissions bin" because it is no longer needed,
modify the reference "light-motor vehicle" to "light-duty motor ve-
hicle" under the definition for "Lessee"; and modify the definition
for a "New light-duty motor vehicle" to correct the cite; 2) delete
references to 114.618 because the section no longer exists and
to 114.619 because the commission is proposing to repeal this
section; 3) modify the requirements for the types of vehicles that
may qualify for the LDPLI; 4) add language to specify the vehicle
criteria for the types of vehicles that may qualify for the LDPLI;
5) list the $2,500 incentive amount; 6) add language requiring
the commission to post the list of eligible vehicles on the com-
mission's Web site; 7) add language specifying when a buyer
or lessee could purchase a vehicle that may qualify for the LD-
PLI; 8) add language specifying the length of time a vehicle pur-
chased under the LDPLI must be registered and operated within
the state; 9) add language specifying the process to apply for the
LDPLI, including the information and documentation required as
part of the LDPLI application; 10) add language requiring the
dealership to keep a copy of the purchase or lease verification
documentation for a minimum of two years; 11) add language
specifying how the commission will prorate the LDPLI based on
a four-year lease; and 12) repeal 114.619 because this section
is no longer valid.
The commission will need to establish a process for adminis-
tering the program, develop the necessary forms for applicants
to apply for the incentive, and establish the process to disperse
the funds to the awardees (grantees). The commission will use
available funding appropriated out of the TERP Account 5071 to
administer the program. THSC, 386.152(a)(13), limits the LD-
PLI to no more than 5% of the total allocations for the TERP pro-
gram. Based upon the total amount of TERP program funding
appropriated to the agency by the 83rd Legislature, 2013, ap-
proximately $3.8 million of TERP program funding is available
for grants for the LDPLI in each fiscal year of the 2014 - 2015 bi-
ennium. At $2,500 per vehicle in grant funding, the commission
would be able to provide grant funds for approximately 1,550 ve-
hicles each fiscal year.
State agencies and units of local government would be eligible
to apply for the $2,500 vehicle incentive. However, it is unknown
if any agencies or local governments would purchase or lease
eligible vehicles, and if they did, how many and what kind of
vehicles would be involved. Therefore, any cost benefits cannot
be estimated. Under the LDPLI program, grant funding is limited
to 2,000 vehicles per state fiscal biennium for vehicles powered
by CNG or LPG and 2,000 vehicles per state fiscal biennium for
vehicles powered by electric drives. This cap is not expected
to affect eligible vehicle purchases or leases by state or local
governments as the funding limits the program to 1,550 vehicles
each fiscal year.
Public Benefits and Costs
Mr. Horvath has also determined that for each year of the first
five years the proposed rules are in effect, the public benefit an-
ticipated from the changes seen in the proposed rules will be
enhanced air quality through the provision of incentives to pur-
chase or lease vehicles that are powered by CNG, LPG, or elec-
tric drives and have lower emissions.
The proposed rules are not anticipated to have a fiscal impact
on individuals or businesses. The LDPLI is a voluntary incen-
tive program and therefore the proposed rules do not provide
any new regulatory requirements. Eligible businesses and indi-
viduals may apply for the $2,500 vehicle incentive and receive38 TexReg 8388 November 22, 2013 Texas Register
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Texas. Secretary of State. Texas Register, Volume 38, Number 47, Pages 8313-8478, November 22, 2013, periodical, November 22, 2013; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth379965/m1/76/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.