By: Bivins S.B. No. 737
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the use of alternative fuels; creating the Alternative
1-2 Fuels Council.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 113.241, Natural Resources Code, is
1-5 amended to read as follows:
1-6 Sec. 113.241. Rules Regarding Research and Education. The
1-7 commission may adopt all necessary rules relating to the purposes
1-8 of this subchapter and activities <conducting research and
1-9 educating the public> regarding the use of LPG and other
1-10 environmentally beneficial alternative fuels that are or have the
1-11 potential to be effective in improving the quality of air in this
1-12 state.
1-13 SECTION 2. Section 113.242, Natural Resources Code, is
1-14 amended to read as follows:
1-15 Sec. 113.242. Advisory Committees. The commission may
1-16 appoint one or more advisory committees composed of members
1-17 representing the LPG industry, <and> other environmentally
1-18 beneficial alternative fuels industries <industry>, consumers, and
1-19 other interests to consult with and advise the commission on
1-20 opportunities and methods to expand the use of LPG and other
1-21 environmentally beneficial alternative fuels.
1-22 SECTION 3. Section 113.243, Natural Resources Code, is
1-23 amended to read as follows:
2-1 Sec. 113.243. Alternative Fuels Research and Education Fund.
2-2 (a) The alternative fuels research and education fund is created
2-3 in the state treasury.
2-4 (b) The fund consists of money from:
2-5 (1) fees charged under this subchapter;
2-6 (2) the penalties for the late payment of the fee
2-7 charged under this subchapter; <and>
2-8 (3) other funds that the commission receives under
2-9 Subsection (e) of this section; and
2-10 (4) interest earned on amounts in the fund.
2-11 (c) The fund may be used only by the commission to pay for
2-12 activities relating to the specific fuel from which the fee or gift
2-13 was derived, including direct and indirect costs relating to:
2-14 (1) researching all possible uses of LPG and other
2-15 environmentally beneficial alternative fuels to enhance air
2-16 quality;
2-17 (2) researching, developing, and implementing
2-18 marketing, advertising, and informational programs relating to
2-19 alternative fuels to make alternative fuels more understandable and
2-20 readily available to consumers;
2-21 (3) developing and implementing conservation and
2-22 distribution plans to minimize the frequency and severity of
2-23 disruptions in the supply of alternative fuels;
2-24 (4) developing a public information plan that will
2-25 provide advisory services relating to alternative fuels to
3-1 consumers;
3-2 (5) developing voluntary participation plans to
3-3 promote the use of alternative fuels by federal, state, and local
3-4 agencies;
3-5 (6) other functions the commission determines are
3-6 necessary to add to a program established by the commission for the
3-7 purpose of promoting the use of LPG or other environmentally
3-8 beneficial alternative fuels; and
3-9 (7) the administrative costs incurred by the
3-10 commission under this subchapter.
3-11 (d) If a specific fee, grant, gift, or other money
3-12 authorized under this subchapter is designated for or collected
3-13 from discrete components of the alternative fuels industry, <other
3-14 than LPG,> the fee, grant, gift, or other money shall be deposited
3-15 in a separate account within the fund.
3-16 (e) The commission may apply for, request, solicit, contract
3-17 for, receive, and accept money and other assistance from any source
3-18 for the purposes of this subchapter. Money received under this
3-19 subsection shall be deposited in a separate account within the fund
3-20 as provided in Subsection (d) of this section.
3-21 SECTION 4. Chapter 113, Natural Resources Code, is amended
3-22 by adding Subchapter J to read as follows:
3-23 SUBCHAPTER J. ALTERNATIVE FUELS COUNCIL
3-24 Sec. 113.260. DEFINITIONS. In this subchapter, "Council"
3-25 means the Alternative Fuels Council.
4-1 Sec. 113.261. CREATION OF AN ALTERNATIVE FUELS COUNCIL. The
4-2 Alternative Fuels Council is created.
4-3 Sec. 113.262. COMPOSITION. The council shall be composed of
4-4 six members: the Commissioner of the General Land Office; the
4-5 members of the Railroad Commission of Texas; the chairperson of the
4-6 General Services Commission; and the chairperson of the Texas
4-7 Department of Commerce, or any of their designees from their
4-8 respective entities. The initial chairman of the council shall be
4-9 the Commissioner of the General Land Office. Chairmanship of the
4-10 council shall rotate on a yearly basis between the Commissioner of
4-11 the General Land Office and the chairman of the Railroad Commission
4-12 of Texas.
4-13 Sec. 113.263. DEVELOPMENT OF A PROGRAM. The council shall
4-14 coordinate a comprehensive program to be carried out by the
4-15 agencies of the state in support of the use of environmentally
4-16 beneficial alternative fuels and shall recommend, seek approval
4-17 for, and allocate oil overcharge and other funds that have been
4-18 appropriated or designated for the purposes of this subchapter and
4-19 Subchapter K of this chapter.
4-20 Sec. 113.264. RULES. In coordinating a comprehensive
4-21 program to support the use of environmentally beneficial
4-22 alternative fuels, the council is specifically authorized to set
4-23 policies and adopt rules necessary to achieving the purposes of
4-24 this subchapter.
4-25 SECTION 5. Chapter 113, Natural Resources Code, is amended
5-1 by adding Subchapter K to read as follows:
5-2 SUBCHAPTER K. ALTERNATIVE FUELS CONVERSION
5-3 Sec. 113.270. DEFINITIONS. (a) "Council" means the
5-4 Alternative Fuels Council as established in Subchapter J of this
5-5 chapter.
5-6 Sec. 113.271. LEGISLATIVE FINDINGS. The legislature finds
5-7 that this subchapter serves the public purposes of development and
5-8 diversification of the economy of the state, elimination of
5-9 unemployment or underemployment in the state, and the development
5-10 or expansion of transportation or commerce in the state, as stated
5-11 by Article III, Section 52-a, of the Texas Constitution.
5-12 Sec. 113.272. ALTERNATIVE FUELS CONVERSION FUND. (a) The
5-13 alternative fuels conversion fund is a fund in the state treasury.
5-14 (b) Money in the fund may be allocated only by a majority
5-15 vote of the council to pay for activities relating to the specific
5-16 fuel or fuels from which any money, grants, or gifts were derived.
5-17 Any money, grants, or gifts authorized under this subchapter
5-18 designated for or collected from discrete components of the
5-19 alternative fuels industry shall be deposited in separate accounts
5-20 within the fund.
5-21 (c) The fund consists of:
5-22 (1) oil overcharge funds as appropriated by Section
5-23 129, Article V, General Appropriations Act, S.B. No. 5, Acts of the
5-24 73rd Legislature, Regular Session, 1993;
5-25 (2) gifts and grants authorized under this subchapter;
6-1 (3) other funds or money as designated by the
6-2 legislature or the executive branch;
6-3 (4) payments of principal and interest on loans made
6-4 under this subchapter; and
6-5 (5) interest earned on amounts in the fund.
6-6 (d) The council may apply for, request, solicit, contract
6-7 for, receive, and accept money and other assistance from any source
6-8 for the purposes of this subchapter. Money received under this
6-9 subsection shall be deposited as provided by Subsection (b) of this
6-10 section.
6-11 (e) Money in the fund may be used as determined by the
6-12 council as provided in Subsection (b) of this section only for the
6-13 purposes of this subchapter, including the payment of the costs of
6-14 administering this subchapter, unless otherwise prohibited by
6-15 federal law or regulations.
6-16 Sec. 113.273. AUTHORIZATION OF CONVERSION LOANS; RULES.
6-17 (a) The council may allocate money in the alternative fuels
6-18 conversion fund to make loans, grants, or other appropriate
6-19 distributions to eligible borrowers to fund eligible conversion and
6-20 infrastructure projects and for other purposes subject to
6-21 applicable United States Department of Energy regulations and
6-22 approval.
6-23 (b) The council shall adopt rules necessary to administer
6-24 this subchapter including provisions for the ultimate distribution
6-25 of funds and repayment of any loans in accordance with United
7-1 States Department of Energy rules and regulations when applicable.
7-2 Sec. 113.274. ELIGIBLE BORROWERS AND PROJECTS.
7-3 (a) Eligible individuals and businesses as defined by rules of the
7-4 council, specifically including historically underutilized
7-5 businesses, low-income individuals, institutions of higher
7-6 education, and health care facilities, are eligible to receive a
7-7 loan, grant, or other disbursements determined by the council to
7-8 carry out eligible conversion and infrastructure projects.
7-9 (b) A state agency, county, municipality, school district,
7-10 or mass transit authority or department is eligible to receive a
7-11 loan, grant, or other disbursement determined by the council under
7-12 this subchapter to carry out eligible infrastructure and conversion
7-13 to LPG, natural gas, and other environmentally beneficial
7-14 alternative fuels projects, to comply with Chapters 1189 or 1190,
7-15 Acts of the 71st Legislature, Regular Session, 1989.
7-16 (c) Infrastructure refueling projects receiving construction
7-17 funds under this subchapter shall be accessible to serve the
7-18 general public.
7-19 Sec. 113.275. LOAN AMOUNT; INTEREST. The Council may
7-20 provide that a loan under this subchapter to a state agency,
7-21 county, municipality, school district, or mass transit authority or
7-22 department does not bear interest. A loan to any other entity must
7-23 bear interest. The council shall set the rate of interest on an
7-24 interest-bearing loan at a rate that is not greater than the
7-25 auction average rate quoted on a bank discount basis for 26-week
8-1 treasury bills issued by the United States government, as published
8-2 by the Federal Reserve Board, plus two percent.
8-3 Sec. 113.276. TERM OF LOAN. All amounts due on a loan under
8-4 this subchapter must be paid not later than five years after the
8-5 date of the loan.
8-6 Sec. 113.277. TRANSFER OF VEHICLE OR PROPERTY. A borrower
8-7 may not transfer a vehicle or other property converted to the use
8-8 of alternative fuels with money lent under this subchapter before
8-9 all amounts due on the loan and attributable to that vehicle or
8-10 equipment are paid, unless before the transfer of the vehicle the
8-11 conversion equipment is removed and installed on another vehicle
8-12 owned by the borrower.
8-13 SECTION 6. If any provision in Sections 4 and 5 of this Act
8-14 conflicts with another statute enacted by the 73rd Legislature,
8-15 Regular Session, 1993, this Act controls.
8-16 SECTION 7. This Act takes effect September 1, 1993.
8-17 SECTION 8. The importance of this legislation and the
8-18 crowded condition of the calendars in both houses create an
8-19 emergency and an imperative public necessity that the
8-20 constitutional rule requiring bills to be read on three several
8-21 days in each house be suspended, and this rule is hereby suspended.