S.B. No. 737
AN ACT
1-1 relating to fuels and the creation of an alternative fuels council
1-2 and an alternative fuels loan program; granting the authority to
1-3 issue bonds.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 113.241, Natural Resources Code, is
1-6 amended to read as follows:
1-7 Sec. 113.241. Rules Regarding Research and Education. The
1-8 commission may adopt all necessary rules relating to the purposes
1-9 of this subchapter and activities <conducting research and
1-10 educating the public> regarding the use of LPG and other
1-11 environmentally beneficial alternative fuels that are or have the
1-12 potential to be effective in improving the quality of air in this
1-13 state.
1-14 SECTION 2. Section 113.242, Natural Resources Code, is
1-15 amended to read as follows:
1-16 Sec. 113.242. ADVISORY COMMITTEES. The commission may
1-17 appoint one or more advisory committees composed of members
1-18 representing the LPG industry and other environmentally beneficial
1-19 alternative fuels industries <industry>, consumers, and other
1-20 interests to consult with and advise the commission on
1-21 opportunities and methods to expand the use of LPG and other
1-22 environmentally beneficial alternative fuels.
1-23 SECTION 3. Section 113.243, Natural Resources Code, is
2-1 amended by amending Subsections (b), (c), and (d), and adding
2-2 Subsection (e) to read as follows:
2-3 (b) The fund consists of money from:
2-4 (1) fees charged under this subchapter;
2-5 (2) the penalties for the late payment of the fee
2-6 charged under this subchapter; <and>
2-7 (3) gifts, grants, or other assistance received by the
2-8 commission from any source for the purposes of this subchapter; and
2-9 (4) interest earned on amounts in the fund.
2-10 (c) The fund may be used only by the commission to pay for
2-11 activities relating to the specific fuel from which the fee was
2-12 derived or the specific fuel, if any, for which the gift, grant, or
2-13 other assistance is given, including direct and indirect costs
2-14 relating to:
2-15 (1) researching all possible uses of LPG and other
2-16 environmentally beneficial alternative fuels to enhance air
2-17 quality;
2-18 (2) researching, developing, and implementing
2-19 marketing, advertising, and informational programs relating to
2-20 alternative fuels to make alternative fuels more understandable and
2-21 readily available to consumers;
2-22 (3) developing and implementing conservation and
2-23 distribution plans to minimize the frequency and severity of
2-24 disruptions in the supply of alternative fuels;
2-25 (4) developing a public information plan that will
3-1 provide advisory services relating to alternative fuels to
3-2 consumers;
3-3 (5) developing voluntary participation plans to
3-4 promote the use of alternative fuels by federal, state, and local
3-5 agencies;
3-6 (6) other functions the commission determines are
3-7 necessary to add to a program established by the commission for the
3-8 purpose of promoting the use of LPG or other environmentally
3-9 beneficial alternative fuels; and
3-10 (7) the administrative costs incurred by the
3-11 commission under this subchapter.
3-12 (d) If a specific fee, gift, grant, or other assistance is
3-13 designated for or collected from discrete components of the
3-14 alternative fuels industry, <other than LPG,> the fee, gift, grant,
3-15 or other assistance shall be deposited in a separate account in
3-16 <within> the fund.
3-17 (e) The commission may apply for, request, solicit, contract
3-18 for, receive, and accept gifts, grants, and other assistance from
3-19 any source for the purposes of this subchapter. Money received
3-20 under this subsection shall be deposited in a separate account in
3-21 the fund as provided in Subsection (d) of this section.
3-22 SECTION 4. Chapter 113, Natural Resources Code, is amended
3-23 by adding Subchapter J to read as follows:
3-24 SUBCHAPTER J. ALTERNATIVE FUELS COUNCIL
3-25 Sec. 113.281. DEFINITION. In this subchapter, "council"
4-1 means the Alternative Fuels Council.
4-2 Sec. 113.282. ALTERNATIVE FUELS COUNCIL. The Alternative
4-3 Fuels Council is an agency of the state.
4-4 Sec. 113.283. COMPOSITION. (a) The council is composed of
4-5 the following individuals:
4-6 (1) the commissioner of the General Land Office;
4-7 (2) the members of the Railroad Commission of Texas;
4-8 (3) the chairman of the General Services Commission;
4-9 and
4-10 (4) the chairman of the Texas Air Control Board or its
4-11 successor agency.
4-12 (b) A member may designate an individual from the state
4-13 agency the member represents to serve in place of the member.
4-14 (c) The initial chairman of the council shall be the
4-15 commissioner of the General Land Office or a person designated by
4-16 the commissioner. Chairmanship of the council shall rotate
4-17 annually between the commissioner of the General Land Office and
4-18 the chairman of the Railroad Commission of Texas or individuals
4-19 designated by those members under Subsection (b) of this section.
4-20 Sec. 113.284. ALTERNATIVE FUELS PROGRAM. (a) The council
4-21 shall coordinate a comprehensive program to be carried out by state
4-22 agencies in support of the use of environmentally beneficial
4-23 alternative fuels.
4-24 (b) In developing a program under this section, the council
4-25 may adopt rules necessary to achieve the purposes of this
5-1 subchapter.
5-2 Sec. 113.285. LEGISLATIVE FINDINGS. (a) The legislature
5-3 finds that this subchapter serves the public purposes of:
5-4 (1) development and diversification of the economy of
5-5 the state;
5-6 (2) elimination of unemployment or underemployment in
5-7 the state; and
5-8 (3) development or expansion of transportation or
5-9 commerce in the state.
5-10 (b) The enumeration of public purposes in Subsection (a) of
5-11 this section is not intended to be a complete list of the public
5-12 purposes served by this subchapter and does not preclude a finding
5-13 that this subchapter serves a public purpose not enumerated in that
5-14 subsection.
5-15 Sec. 113.286. ALTERNATIVE FUELS CONVERSION FUND. (a) The
5-16 alternative fuels conversion fund is in the state treasury.
5-17 (b) To the extent permitted by federal law or regulations,
5-18 the council may use the money in the fund only to:
5-19 (1) make loans or grants under this subchapter;
5-20 (2) finance activities supporting or encouraging the
5-21 use of alternative fuels; or
5-22 (3) pay the costs of administering this subchapter.
5-23 (c) The council may apply for, request, solicit, contract
5-24 for, receive, and accept gifts, grants, and other assistance from
5-25 any source for the purposes of this subchapter.
6-1 (d) The council shall maintain a separate account in the
6-2 fund for money received that is designated for the promotion of a
6-3 specific fuel or that is collected from a discrete component of the
6-4 alternative fuels industry. The council may use money in a
6-5 separate account in the fund only to finance an activity that
6-6 relates to the fuel for which the money is received.
6-7 (e) The fund consists of:
6-8 (1) oil overcharge funds appropriated by the
6-9 legislature;
6-10 (2) gifts, grants, and other assistance to the council
6-11 or fund for the purpose of financing alternative fuels activities;
6-12 (3) other money designated by the legislature or the
6-13 executive branch;
6-14 (4) payments of principal and interest on loans made
6-15 under this subchapter; and
6-16 (5) interest earned on amounts in the fund.
6-17 Sec. 113.287. FUELS CONVERSION LOAN PROGRAM. (a) The
6-18 council may make loans, grants, or other distributions to eligible
6-19 borrowers to fund conversion or infrastructure projects to promote
6-20 the use of environmentally beneficial alternative fuels or for
6-21 other purposes, subject to applicable regulations or approval of
6-22 the United States Department of Energy.
6-23 (b) The council shall adopt rules necessary to administer
6-24 the fuels conversion loan program.
6-25 (c) The council shall adopt rules under this section in
7-1 accordance with applicable rules and regulations of the United
7-2 States Department of Energy.
7-3 (d) The council by rule shall determine which individuals
7-4 and businesses are eligible for a loan, grant, or other
7-5 disbursement under this section. The rules shall provide for
7-6 historically underutilized businesses, individuals with low
7-7 incomes, institutions of higher education, and health care
7-8 facilities to be eligible for loans, grants, or other disbursements
7-9 to undertake conversion and infrastructure projects for alternative
7-10 fuels.
7-11 (e) A state agency, county, municipality, school district,
7-12 or mass transit authority or department is eligible to receive a
7-13 loan, grant, or other disbursement under this subchapter to carry
7-14 out an eligible conversion or infrastructure project regarding LPG
7-15 or another environmentally beneficial alternative fuel to comply
7-16 with alternative fuel requirements provided by or by rules adopted
7-17 under:
7-18 (1) Subchapter F, Chapter 382, Health and Safety Code;
7-19 (2) Subchapter F, Chapter 21, Education Code;
7-20 (3) Sections 3.03, 3.29, and 14.03, State Purchasing
7-21 and General Services Act (Article 601b, Vernon's Texas Civil
7-22 Statutes);
7-23 (4) Sections 14(c)-(g), Chapter 141, Acts of the 63rd
7-24 Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas
7-25 Civil Statutes);
8-1 (5) Sections 20(e)-(i), Chapter 683, Acts of the 66th
8-2 Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes);
8-3 and
8-4 (6) Sections 6(k)-(o), Article 1118z, Revised
8-5 Statutes.
8-6 (f) The council may make a loan to finance the construction
8-7 of an infrastructure refueling facility only if the facility is to
8-8 serve and be accessible to the general public to the extent
8-9 practicable.
8-10 Sec. 113.288. INTEREST AMOUNTS. (a) The council may loan
8-11 money under this subchapter at no interest to a state agency,
8-12 county, municipality, school district, or mass transit authority or
8-13 department.
8-14 (b) A loan to any other entity must bear interest at a rate
8-15 that is not greater than the auction average rate quoted on a bank
8-16 discount basis for 26-week treasury bills issued by the United
8-17 States as published by the federal reserve board for the week
8-18 preceding the week in which the interest rate is determined, plus
8-19 two percent.
8-20 Sec. 113.289. TERM OF LOAN. A loan under this subchapter
8-21 must be repaid not later than the fifth anniversary of the date the
8-22 loan was issued.
8-23 Sec. 113.290. TRANSFER OF VEHICLE OR OTHER PROPERTY
8-24 CONVERTED WITH LOAN PROCEEDS. A borrower may not transfer to
8-25 another person a vehicle or other property converted to alternative
9-1 fuel use with the proceeds of a loan under this subchapter unless
9-2 before the transfer:
9-3 (1) the loan is fully repaid; or
9-4 (2) the alternative fuels equipment purchased,
9-5 installed, or constructed with the loan proceeds is removed and
9-6 installed on another vehicle or other property owned by the person.
9-7 SECTION 5. The Texas Public Finance Authority Act (Article
9-8 601d, Vernon's Texas Civil Statutes) is amended by adding Section
9-9 9C to read as follows:
9-10 Sec. 9C. ISSUANCE OF OBLIGATIONS FOR ALTERNATIVE FUELS
9-11 PROJECTS. (a) The authority may, if it determines that a project
9-12 is financially viable and sufficient revenue is or will be
9-13 available, issue and sell obligations for the financing of:
9-14 (1) the conversion of state agency vehicles and other
9-15 sources of substantial energy output to alternative fuels under
9-16 Section 3.29, State Purchasing and General Services Act (Article
9-17 601b, Vernon's Texas Civil Statutes), and its subsequent
9-18 amendments;
9-19 (2) the construction, acquisition, or maintenance by
9-20 the General Services Commission of fueling stations supplying
9-21 alternative fuels or equipment enhancing the use of engine-driven
9-22 technology to support state agency vehicles and other energy
9-23 applications that use alternative fuels;
9-24 (3) the conversion of school district motor vehicles
9-25 and other sources of substantial energy output to alternative fuels
10-1 under Section 21.174, Education Code, and its subsequent
10-2 amendments;
10-3 (4) the construction, acquisition, or maintenance by a
10-4 school district of fueling stations supplying alternative fuels or
10-5 equipment enhancing the use of engine-driven technology to support
10-6 school district motor vehicles and other energy applications that
10-7 use alternative fuels;
10-8 (5) the conversion of local mass transit authority or
10-9 department motor vehicles and other sources of substantial energy
10-10 output to alternative fuels under Section 14, Chapter 141, Acts of
10-11 the 63rd Legislature, Regular Session, 1973 (Article 1118x,
10-12 Vernon's Texas Civil Statutes), Section 20, Chapter 683, Acts of
10-13 the 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
10-14 Statutes), and Section 6, Article 1118z, Revised Statutes, and
10-15 their subsequent amendments;
10-16 (6) the construction, acquisition, or maintenance of
10-17 fueling stations supplying alternative fuels or equipment enhancing
10-18 the use of engine-driven technology by a local mass transit
10-19 authority or department to support transit authority or department
10-20 vehicles and other energy applications that use alternative fuels;
10-21 and
10-22 (7) a joint venture between the private sector and a
10-23 state agency or political subdivision that is required under law to
10-24 use alternative fuels in the agency's or subdivision's vehicles or
10-25 other energy applications to:
11-1 (A) convert vehicles or other sources of
11-2 substantial energy output to alternative fuels;
11-3 (B) develop fueling stations and resources for
11-4 the supply of alternative fuels and engine-driven applications;
11-5 (C) aid in the distribution of alternative
11-6 fuels; and
11-7 (D) engage in other projects to facilitate the
11-8 use of alternative fuels.
11-9 (b) The authority may not issue and sell more than $50
11-10 million in obligations for projects under this section.
11-11 (c) The board may provide for the payment of the principal
11-12 of or interest on the bonds and obligations issued under this
11-13 section:
11-14 (1) by pledging all or a part of the revenue the state
11-15 derives from the sale of alternative fuels, alternative fuels
11-16 equipment or technology, or vehicles powered by alternative fuels;
11-17 (2) by contracting with a political subdivision or a
11-18 private entity to pledge revenue the political subdivision or
11-19 private entity derives from the sale of alternative fuels,
11-20 alternative fuels equipment or technology, or vehicles powered by
11-21 alternative fuels in an amount sufficient to ensure that the bonds
11-22 or obligations are paid;
11-23 (3) by pledging appropriated general revenues of the
11-24 state or other appropriated money in the state treasury; or
11-25 (4) from any other source of funds available to the
12-1 board.
12-2 (d) The authority shall attempt to include minority-owned
12-3 businesses in the issuance and underwriting of at least 20 percent
12-4 of the bonds and obligations issued under this section and
12-5 women-owned businesses in the issuance and underwriting of at least
12-6 10 percent of the bonds and obligations issued under this section.
12-7 (e) The Alternative Fuels Council shall evaluate an
12-8 application under this section by an eligible entity for the
12-9 financing of the acquisition, construction, or improvement of
12-10 alternative fuels infrastructure and shall determine whether the
12-11 proposed project will increase energy or cost savings to the
12-12 applicant. A bond or other obligation may not be issued under
12-13 Subsection (a) of this section unless the Alternative Fuels Council
12-14 certifies that the proposed project will increase energy or cost
12-15 savings to the applicant. The Alternative Fuels Council may by
12-16 rule adopt procedures and standards for the evaluation of an
12-17 application for financing of a proposed project under this section.
12-18 (f) Costs of administration of the alternative fuels finance
12-19 program shall be considered a part of project costs and shall be
12-20 funded with bond proceeds.
12-21 SECTION 6. If the 73rd Legislature appropriates money to the
12-22 alternative fuels conversion fund for the purposes of Section
12-23 113.286, Natural Resources Code, as added by this Act, an amount
12-24 equal to 10 percent of such appropriation, up to a maximum of
12-25 $500,000, is made available in accordance with applicable rules and
13-1 regulations of the United States Department of Energy for the
13-2 purposes of H.B. No. 923, 73rd Legislature, Regular Session, 1993,
13-3 if that bill is enacted and becomes law.
13-4 SECTION 7. If any provision in Section 4 of this Act
13-5 conflicts with another statute enacted by the 73rd Legislature,
13-6 Regular Session, 1993, this Act controls.
13-7 SECTION 8. This Act takes effect September 1, 1993.
13-8 SECTION 9. The importance of this legislation and the
13-9 crowded condition of the calendars in both houses create an
13-10 emergency and an imperative public necessity that the
13-11 constitutional rule requiring bills to be read on three several
13-12 days in each house be suspended, and this rule is hereby suspended.