(a) To be eligible for an incentive under this subchapter, a person must:
(1) purchase a replacement drayage truck, piece of cargo handling equipment, or engine that under Subsection (a-1)(1)(A) or (2)(A), as applicable, and the guidelines adopted by the commission under § 386.182 is eligible for inclusion in the program for an incentive under this subchapter; and
(2) agree to:
(A) register the drayage truck in this state, if the replacement or repowered vehicle is an on-road drayage truck;
(B) operate the replacement or repowered drayage truck or cargo handling equipment in and within a maximum distance established by the commission of a seaport or rail yard in a nonattainment area of this state for not less than 50 percent of the truck’s or equipment’s annual mileage or hours of operation, as determined by the commission; and
(C) permanently remove the drayage truck, cargo handling equipment, or engine replaced under the program from operation in a nonattainment area of this state by destroying the engine in accordance with guidelines established by the commission and, if the incentive is for a replacement drayage truck or cargo handling equipment, scrapping the truck or equipment after the purchase of the replacement truck or equipment in accordance with guidelines established by the commission.
(a-1) To be eligible for purchase under this program:
(1) a drayage truck or cargo handling equipment must:
(A) be powered by an electric motor or contain an engine certified to the current federal emissions standards applicable to that type of engine, as determined by the commission; and
(B) emit oxides of nitrogen at a rate that is at least 25 percent less than the rate at which the truck or equipment being replaced under the program emits such pollutants; and
(2) an engine repowering a drayage truck or cargo handling equipment must:
(A) be an electric motor or an engine certified to the current federal emissions standards applicable to that type of engine, as determined by the commission; and
(B) emit oxides of nitrogen at a rate that is at least 25 percent less than the rate at which the former engine in the truck or equipment being repowered under the program emits such pollutants.

(b) To receive money under an incentive program provided by this subchapter, the purchaser of a drayage truck, piece of cargo handling equipment, or engine eligible for inclusion in the program must apply for the incentive in the manner provided by law, rule, or guideline of the commission.
(c) Not more than one incentive may be provided for each drayage truck or piece of cargo handling equipment purchased or repowered.
(d) An incentive provided under this subchapter may be used to fund not more than 80 percent of, as applicable, the purchase price of:
(1) the drayage truck or cargo handling equipment; or
(2) the engine and any other eligible costs associated with repowering the drayage truck or cargo handling equipment, as determined by the commission.
(e) The commission shall establish procedures to verify that a person who receives an incentive:
(1) has operated in a seaport or rail yard and owned or leased the drayage truck or cargo handling equipment to be replaced or repowered for at least two years prior to receiving the grant; and
(2) as applicable:
(A) after purchase of the replacement drayage truck or cargo handling equipment, permanently destroys the engine and scraps the truck or equipment replaced under the program in accordance with guidelines established by the commission; or
(B) after repowering the drayage truck or cargo handling equipment, permanently destroys the engine that was contained in the truck or equipment in accordance with guidelines established by the commission.
(f) The commission may modify this program to improve its effectiveness or further the goals of Subchapter B.