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.