73R10411 SMH-F
By Bivins S.B. No. 737
Substitute the following for S.B. No. 737:
By Earley C.S.S.B. No. 737
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to fuels and the creation of an alternative fuels council
1-3 and an alternative fuels loan program; granting the authority to
1-4 issue bonds.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 113.241, Natural Resources Code, is
1-7 amended to read as follows:
1-8 Sec. 113.241. Rules Regarding Research and Education. The
1-9 commission may adopt all necessary rules relating to the purposes
1-10 of this subchapter and activities <conducting research and
1-11 educating the public> regarding the use of LPG and other
1-12 environmentally beneficial alternative fuels that are or have the
1-13 potential to be effective in improving the quality of air in this
1-14 state.
1-15 SECTION 2. Section 113.242, Natural Resources Code, is
1-16 amended to read as follows:
1-17 Sec. 113.242. Advisory Committees. The commission may
1-18 appoint one or more advisory committees composed of members
1-19 representing the industries that produce LPG and other
1-20 environmentally beneficial alternative fuels <industry>, consumers,
1-21 and other interests to consult with and advise the commission on
1-22 opportunities and methods to expand the use of LPG and other
1-23 environmentally beneficial alternative fuels.
1-24 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,
2-13 or 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
2-26 provide advisory services relating to alternative fuels to
2-27 consumers;
3-1 (5) developing voluntary participation plans to
3-2 promote the use of alternative fuels by federal, state, and local
3-3 agencies;
3-4 (6) other functions the commission determines are
3-5 necessary to add to a program established by the commission for the
3-6 purpose of promoting the use of LPG or other environmentally
3-7 beneficial alternative fuels; and
3-8 (7) the administrative costs incurred by the
3-9 commission under this subchapter.
3-10 (d) If a specific fee, gift, grant, or other assistance is
3-11 designated for or collected from discrete components of the
3-12 alternative fuels industry, <other than LPG,> the fee, gift, grant,
3-13 or other assistance shall be deposited in a separate account in
3-14 <within> the fund.
3-15 (e) The commission may apply for, request, solicit, contract
3-16 for, receive, and accept gifts, grants, and other assistance from
3-17 any source for the purposes of this subchapter. Money received
3-18 under this subsection shall be deposited in a separate account in
3-19 the fund as provided in Subsection (d) of this section.
3-20 SECTION 4. Chapter 113, Natural Resources Code, is amended
3-21 by adding Subchapter J to read as follows:
3-22 SUBCHAPTER J. ALTERNATIVE FUELS COUNCIL
3-23 Sec. 113.281. DEFINITION. In this subchapter, "council"
3-24 means the Alternative Fuels Council.
3-25 Sec. 113.282. ALTERNATIVE FUELS COUNCIL. The Alternative
3-26 Fuels Council is an agency of the state.
3-27 Sec. 113.283. COMPOSITION. (a) The council is composed of
4-1 the following individuals:
4-2 (1) the commissioner of the General Land Office;
4-3 (2) the members of the Railroad Commission of Texas;
4-4 (3) the chairman of the General Services Commission;
4-5 and
4-6 (4) the executive director of the Texas Department of
4-7 Commerce.
4-8 (b) A member may designate an individual from the state
4-9 agency the member represents to serve in place of the member.
4-10 (c) The initial chairman of the council shall be the
4-11 commissioner of the General Land Office or a person designated by
4-12 the commissioner. Chairmanship of the council shall rotate
4-13 annually between the commissioner of the General Land Office and
4-14 the chairman of the Railroad Commission of Texas or individuals
4-15 designated by those members under Subsection (b) of this section.
4-16 Sec. 113.284. ALTERNATIVE FUELS PROGRAM. (a) The council
4-17 shall coordinate a comprehensive program to be carried out by state
4-18 agencies in support of the use of environmentally beneficial
4-19 alternative fuels.
4-20 (b) In developing a program under this section, the council
4-21 may adopt rules necessary to achieve the purposes of this
4-22 subchapter.
4-23 Sec. 113.285. ALTERNATIVE FUELS CONVERSION FUND. (a) The
4-24 alternative fuels conversion fund is in the state treasury.
4-25 (b) To the extent permitted by federal law or regulations,
4-26 the council may use the money in the fund only to:
4-27 (1) make loans under this subchapter;
5-1 (2) finance activities supporting or encouraging the
5-2 use of alternative fuels; or
5-3 (3) pay the costs of administering this subchapter.
5-4 (c) The council may apply for, request, solicit, contract
5-5 for, receive, and accept gifts, grants, and other assistance from
5-6 any source for the purposes of this subchapter.
5-7 (d) The council shall maintain a separate account in the
5-8 fund for money received that is designated for the promotion of a
5-9 specific fuel or that is collected from a discrete component of the
5-10 alternative fuels industry. The council may use money in a
5-11 separate account in the fund only to finance an activity that
5-12 relates to the fuel for which the money is received.
5-13 (e) The fund consists of:
5-14 (1) oil overcharge funds appropriated by the
5-15 legislature;
5-16 (2) gifts, grants, and other assistance to the council
5-17 or fund for the purpose of financing alternative fuels activities;
5-18 (3) other money designated by the legislature or the
5-19 executive branch;
5-20 (4) payments of principal and interest on loans made
5-21 under this subchapter; and
5-22 (5) interest earned on amounts in the fund.
5-23 Sec. 113.286. FUELS CONVERSION LOAN PROGRAM. (a) The
5-24 council may make loans, grants, or other distributions to eligible
5-25 borrowers to fund conversion or infrastructure projects to promote
5-26 the use of environmentally beneficial alternative fuels or for
5-27 other purposes, subject to applicable regulations or approval of
6-1 the United States Department of Energy.
6-2 (b) The council shall adopt rules necessary to administer
6-3 the fuels conversion loan program.
6-4 (c) The council shall adopt rules under this section in
6-5 accordance with rules and regulations of the United States
6-6 Department of Energy.
6-7 (d) The council by rule shall determine which individuals
6-8 and businesses are eligible for a loan, grant, or other
6-9 disbursement under this section. The rules shall provide for
6-10 historically underutilized businesses, individuals with low
6-11 incomes, institutions of higher education, and health care
6-12 facilities to be eligible for loans, grants, or other disbursements
6-13 to undertake conversion and infrastructure projects for alternative
6-14 fuels.
6-15 (e) A state agency, county, municipality, school district,
6-16 or mass transit authority or department is eligible to receive a
6-17 loan, grant, or other disbursement under this subchapter to carry
6-18 out an eligible conversion or infrastructure project regarding LPG
6-19 or another environmentally beneficial alternative fuel to comply
6-20 with alternative fuel requirements provided by or by rules adopted
6-21 under:
6-22 (1) Subchapter F, Chapter 382, Health and Safety Code;
6-23 (2) Subchapter F, Chapter 21, Education Code;
6-24 (3) Sections 3.03, 3.29, and 14.03, State Purchasing
6-25 and General Services Act (Article 601b, Vernon's Texas Civil
6-26 Statutes);
6-27 (4) Sections 14(c)-(g), Chapter 141, Acts of the 63rd
7-1 Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas
7-2 Civil Statutes);
7-3 (5) Sections 20(e)-(i), Chapter 683, Acts of the 66th
7-4 Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes);
7-5 and
7-6 (6) Sections 6(k)-(o), Article 1118z, Revised
7-7 Statutes.
7-8 (f) The council may make a loan to finance the construction
7-9 of an infrastructure refueling facility only if the facility is to
7-10 serve and be accessible to the general public.
7-11 Sec. 113.287. INTEREST AMOUNTS. (a) The council may loan
7-12 money under this subchapter at no interest to a state agency,
7-13 county, municipality, school district, or mass transit authority or
7-14 department.
7-15 (b) A loan to any other entity must bear interest at a rate
7-16 that is not greater than the auction average rate quoted on a bank
7-17 discount basis for 26-week treasury bills issued by the United
7-18 States as published by the federal reserve board for the week
7-19 preceding the week in which the interest rate is determined, plus
7-20 two percent.
7-21 Sec. 113.288. TERM OF LOAN. A loan under this subchapter
7-22 must be repaid not later than the fifth anniversary of the date the
7-23 loan was issued.
7-24 Sec. 113.289. TRANSFER OF VEHICLE OR OTHER PROPERTY
7-25 CONVERTED WITH LOAN PROCEEDS. A borrower may not transfer to
7-26 another person a vehicle or other property converted to alternative
7-27 fuel use with the proceeds of a loan under this subchapter unless
8-1 before the transfer:
8-2 (1) the loan is fully repaid; or
8-3 (2) the alternative fuels equipment purchased,
8-4 installed, or constructed with the loan proceeds is removed and
8-5 installed on another vehicle or other property owned by the person.
8-6 SECTION 5. The Texas Public Finance Authority Act (Article
8-7 601d, Vernon's Texas Civil Statutes) is amended by adding Section
8-8 9C to read as follows:
8-9 Sec. 9C. ISSUANCE OF OBLIGATIONS FOR ALTERNATIVE FUELS
8-10 PROJECTS. (a) The authority may, if it determines that a project
8-11 is financially viable and sufficient revenue is or will be
8-12 available, issue and sell obligations for the financing of:
8-13 (1) the conversion of state agency vehicles and other
8-14 sources of substantial energy output to alternative fuels under
8-15 Section 3.29, State Purchasing and General Services Act (Article
8-16 601b, Vernon's Texas Civil Statutes), and its subsequent
8-17 amendments;
8-18 (2) the construction, acquisition, or maintenance by
8-19 the General Services Commission of fueling stations supplying
8-20 alternative fuels or equipment enhancing the use of engine-driven
8-21 technology to support state agency vehicles and other energy
8-22 applications that use alternative fuels;
8-23 (3) the conversion of school district motor vehicles
8-24 and other sources of substantial energy output to alternative fuels
8-25 under Section 21.174, Education Code, and its subsequent
8-26 amendments;
8-27 (4) the construction, acquisition, or maintenance by a
9-1 school district of fueling stations supplying alternative fuels or
9-2 equipment enhancing the use of engine-driven technology to support
9-3 school district motor vehicles and other energy applications that
9-4 use alternative fuels;
9-5 (5) the conversion of local mass transit authority or
9-6 department motor vehicles and other sources of substantial energy
9-7 output to alternative fuels under Section 14, Chapter 141, Acts of
9-8 the 63rd Legislature, Regular Session, 1973 (Article 1118x,
9-9 Vernon's Texas Civil Statutes), Section 20, Chapter 683, Acts of
9-10 the 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
9-11 Statutes), and Section 6, Article 1118z, Revised Statutes, and
9-12 their subsequent amendments;
9-13 (6) the construction, acquisition, or maintenance of
9-14 fueling stations supplying alternative fuels or equipment enhancing
9-15 the use of engine-driven technology by a local mass transit
9-16 authority or department to support transit authority or department
9-17 vehicles and other energy applications that use alternative fuels;
9-18 and
9-19 (7) a joint venture between the private sector and a
9-20 state agency or political subdivision that is required under law to
9-21 use alternative fuels in the agency's or subdivision's vehicles or
9-22 other energy applications to:
9-23 (A) convert vehicles or other sources of
9-24 substantial energy output to alternative fuels;
9-25 (B) develop fueling stations and resources for
9-26 the supply of alternative fuels and engine-driven applications;
9-27 (C) aid in the distribution of alternative
10-1 fuels; and
10-2 (D) engage in other projects to facilitate the
10-3 use of alternative fuels.
10-4 (b) The authority may not issue and sell more than $50
10-5 million in obligations for projects under this section.
10-6 (c) The board may provide for the payment of the principal
10-7 of or interest on the bonds and obligations issued under this
10-8 section:
10-9 (1) by pledging all or a part of the revenue the state
10-10 derives from the sale of alternative fuels, alternative fuels
10-11 equipment or technology, or vehicles powered by alternative fuels;
10-12 (2) by contracting with a political subdivision or a
10-13 private entity to pledge revenue the political subdivision or
10-14 private entity derives from the sale of alternative fuels,
10-15 alternative fuels equipment or technology, or vehicles powered by
10-16 alternative fuels in an amount sufficient to ensure that the bonds
10-17 or obligations are paid;
10-18 (3) by pledging appropriated general revenues of the
10-19 state or other appropriated money in the state treasury; or
10-20 (4) from any other source of funds available to the
10-21 board.
10-22 (d) The authority shall attempt to include minority-owned
10-23 businesses in the issuance and underwriting of at least 20 percent
10-24 of the bonds and obligations issued under this section and
10-25 women-owned businesses in the issuance and underwriting of at least
10-26 10 percent of the bonds and obligations issued under this section.
10-27 (e) The Alternative Fuels Council shall evaluate an
11-1 application under this section by an eligible entity for the
11-2 financing of the acquisition, construction, or improvement of
11-3 alternative fuels infrastructure and shall determine whether the
11-4 proposed project will increase energy or cost savings to the
11-5 applicant. A bond or other obligation may not be issued under
11-6 Subsection (a) of this section unless the Alternative Fuels Council
11-7 certifies that the proposed project will increase energy or cost
11-8 savings to the applicant. The Alternative Fuels Council may by
11-9 rule adopt procedures and standards for the evaluation of an
11-10 application for financing of a proposed project under this section.
11-11 (f) Costs of administration of the alternative fuels finance
11-12 program shall be considered a part of project costs and shall be
11-13 funded with bond proceeds.
11-14 SECTION 6. (a) If the 73rd Legislature appropriates oil
11-15 overcharge funds for the promotion of natural gas use, $5 million
11-16 of that appropriation is made available for the purposes of the
11-17 alternative fuels conversion fund under Section 113.285, Natural
11-18 Resources Code, as added by this Act.
11-19 (b) If the 73rd Legislature appropriates money to school
11-20 districts with below average property wealth per pupil for energy
11-21 management assistance, $17 million of that appropriation is made
11-22 available for the purposes of the alternative fuels conversion fund
11-23 under Section 113.285, Natural Resources Code, as added by this
11-24 Act.
11-25 (c) Notwithstanding Section 113.285, Natural Resources Code,
11-26 as added by this Act, if the 73rd Legislature appropriates money to
11-27 the alternative fuels conversion fund, $5 million of that
12-1 appropriation is made available for the purposes of House Bill No.
12-2 923, 73rd Legislature, Regular Session, 1993, if that bill is
12-3 enacted and becomes law.
12-4 SECTION 7. If any provision in Section 4 of this Act
12-5 conflicts with another statute enacted by the 73rd Legislature,
12-6 Regular Session, 1993, this Act controls.
12-7 SECTION 8. This Act takes effect September 1, 1993.
12-8 SECTION 9. The importance of this legislation and the
12-9 crowded condition of the calendars in both houses create an
12-10 emergency and an imperative public necessity that the
12-11 constitutional rule requiring bills to be read on three several
12-12 days in each house be suspended, and this rule is hereby suspended.