HB 4400

relating to supplemental environmental projects authorized by the
Texas Commission on Environmental Quality.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 7.067, Water Code, is amended by adding
Subsections (d), (e), and (f) to read as follows:
(d)  The commission may determine the types of projects that
may be approved as a supplemental environmental project.  For a
respondent that is a local government, those types of projects must
(1)  purchasing, operating, or maintaining:
(A)  alternative fuel vehicles, including
passenger cars, light trucks, heavy trucks, and buses; and
(B)  alternative fuel heavy equipment, including
tractors, bulldozers, front-end loaders, and motor graders;
(2)  constructing, operating, or maintaining
alternative fuel refueling infrastructure necessary to operate an
(3)  providing energy efficiency upgrades to buildings
and facilities owned by the local government, including heating,
ventilation, air conditioning, lighting, and building envelope
(e)  For a supplemental environmental project involving
alternative fuel vehicles, the commission:
(1)  must allow the project to include:
(A)  the entire cost of the vehicle; and
(B)  any alternative fuel equipment or upgrades
(2)  may not limit the project to including only the
difference in cost between conventional fuel vehicles, equipment,
or upgrades and the alternative fuel counterparts.
(1)  may not require a contract associated with a
supplemental environmental project to be for a term of less than
(2)  must allow a contract associated with a
supplemental environmental project to be renewable for periods of
SECTION 2.  This Act takes effect September 1, 2025.