By:  Bivins                                            S.B. No. 737
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the use of alternative fuels.
    1-2        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-3        SECTION 1.  Section 113.241, Natural Resources Code, is
    1-4  amended to read as follows:
    1-5        Sec. 113.241.  Rules Regarding Research and Education.  The
    1-6  commission may adopt all necessary rules relating to the purposes
    1-7  of this subchapter and activities <conducting research and
    1-8  educating the public> regarding the use of LPG, natural gas, and
    1-9  other environmentally beneficial alternative fuels that are or have
   1-10  the potential to be effective in improving the quality of air in
   1-11  this state.
   1-12        SECTION 2.  Section 113.242, Natural Resources Code, is
   1-13  amended to read as follows:
   1-14        Sec. 113.242.  Advisory Committees. The commission may
   1-15  appoint one or more advisory committees composed of members
   1-16  representing the LPG, natural gas, and other alternative fuels
   1-17  industry, consumers, and other interests to consult with and advise
   1-18  the commission on opportunities and methods to expand the use of
   1-19  LPG, natural gas, and other environmentally beneficial alternative
   1-20  fuels.
   1-21        SECTION 3.  Sections 113.243(b), (c), and (d), Natural
   1-22  Resources Code, are amended to read as follows:
   1-23        (b)  The fund consists of money from:
    2-1              (1)  fees charged under this subchapter;
    2-2              (2)  the penalties for the late payment of the fee
    2-3  charged under this subchapter; and
    2-4              (3)  the commission may apply for, request, solicit,
    2-5  contract for, receive, and accept money and other assistance from
    2-6  any source for the purposes of this subchapter; and
    2-7              (4) <(3)>  interest earned on amounts in the fund.
    2-8        (c)  The fund may be used only by the commission to pay for
    2-9  activities relating to the specific fuel from which the fee or gift
   2-10  was derived, including direct and indirect costs relating to:
   2-11              (1)  researching all possible uses of LPG, natural gas
   2-12  and other alternative fuels to enhance air quality;
   2-13              (2)  researching, developing, and implementing
   2-14  marketing, advertising, and informational programs relating to
   2-15  alternative fuels to make alternative fuels more understandable and
   2-16  readily available to consumers;
   2-17              (3)  developing conservation and distribution plans to
   2-18  minimize the frequency and severity of disruptions in the supply of
   2-19  alternative fuels;
   2-20              (4)  developing a public information plan that will
   2-21  provide advisory services relating to alternative fuels to
   2-22  consumers;
   2-23              (5)  developing voluntary participation plans to
   2-24  promote the use of alternative fuels by federal, state, and local
   2-25  agencies;
    3-1              (6)  other functions the commission determines are
    3-2  necessary to add to a program established by the commission for the
    3-3  purposes of promoting the use of LPG, natural gas, or other
    3-4  environmentally beneficial alternative fuels; and
    3-5              (7)  the administrative costs incurred by the
    3-6  commission under this subchapter.
    3-7        (d)  If a specific fee or a gift authorized under this
    3-8  subchapter is collected from discrete components of the alternative
    3-9  fuels industry, <other than LPG,> the fee or gift shall be
   3-10  deposited in a separate account within the fund.
   3-11        (e)  the commission may apply for, request, solicit, contract
   3-12  for, receive, and accept money and other assistance from any source
   3-13  for the purposes of this subchapter.  Money received under this
   3-14  subsection shall be deposited in a separate account as designated
   3-15  in subsection (d) of this section within the fund.
   3-16        SECTION 4.  Chapter 113, Natural Resources Code, is amended
   3-17  by adding Subchapter J to read as follows:
   3-18              SUBCHAPTER J.  ALTERNATIVE FUELS CONVERSION
   3-19        Sec. 113.261.  LEGISLATIVE FINDINGS.  The legislature finds
   3-20  that this subchapter serves the public purposes of development and
   3-21  diversification of the economy of the state, elimination of
   3-22  unemployment or underemployment in the state, and the development
   3-23  or expansion of transportation or commerce in the state, as stated
   3-24  by Article III, Section 52-a, of the Texas Constitution.
   3-25        Sec. 113.262.  ALTERNATIVE FUELS CONVERSION FUND.  (a)  The
    4-1  alternative fuels conversion fund is a fund in the state treasury.
    4-2        (b)  The fund may be used only by the commission to pay for
    4-3  activities relating to the specific fuel from which the fund, grant
    4-4  or gift was derived.  If a specific fund, grant or gift authorized
    4-5  under this subchapter is designated for or collected from discrete
    4-6  components of the alternative fuels industry, the specific fund,
    4-7  grant or gift shall be deposited in a separate account within the
    4-8  fund.
    4-9        (c)  The fund consists of:
   4-10              (1)  oil overcharge funds as appropriated by Section
   4-11  129 Article V f 585, Act of the 73rd Legislative session;
   4-12              (2)  gifts and grants authorized under this subchapter;
   4-13              (3)  other funds as designated by the legislature or
   4-14  the executive branch;
   4-15              (4)  payments of principal and interest on loans made
   4-16  under this subchapter; and
   4-17              (5)  interest earned on amounts in the fund.
   4-18        (d)  The commission may apply for, request, solicit, contract
   4-19  for, receive, and accept money and other assistance from any source
   4-20  for the purposes of this subchapter.  Money received under this
   4-21  subsection shall be deposited in a separate account as designated
   4-22  in subsection (b) of this section within the fund.
   4-23        (e)  Money in the fund may be used only for the purposes of
   4-24  this subchapter, including the payment of the costs of
   4-25  administering this subchapter where allowed by law or federal
    5-1  regulations.
    5-2        Sec. 113.263.  AUTHORIZATION OF CONVERSION LOANS; RULES.
    5-3  (a)  The commission may use money in the alternative fuels
    5-4  conversion fund to make loans, grants or other appropriate
    5-5  distributions to eligible borrowers to fund eligible conversion and
    5-6  infrastructure projects and for other purposes for the promotion of
    5-7  LPG, natural gas, and other environmentally beneficial fuels
    5-8  subject to applicable Department of Energy regulations and
    5-9  approval.
   5-10        (b)  The commission shall adopt rules necessary to administer
   5-11  this subchapter including provisions for the ultimate distribution
   5-12  of funds hereunder in accordance with Department of Energy rules
   5-13  and regulations.
   5-14        Sec. 113.264.  ELIGIBLE BORROWERS AND PROJECTS.
   5-15  (a)  Eligible individuals and businesses, as defined by the rules
   5-16  adopted hereunder, but specifically including Historically
   5-17  Underutilized Businesses, low income individuals, institutions of
   5-18  higher education and health care facilities are eligible to receive
   5-19  a loan, grant or other disbursement determined by the commission to
   5-20  carry out eligible conversion and infrastructure projects
   5-21  hereunder.
   5-22        (b)  A state agency, county, municipality, school districts,
   5-23  or mass transit authority or department is eligible to receive a
   5-24  loan, grant or other disbursement determined by the commission
   5-25  under this subchapter to carry out eligible conversion and
    6-1  infrastructure projects to compressed natural gas to comply with
    6-2  Chapter 189 or 1190, Acts of the 71st Legislature, Regular Session,
    6-3  1989.
    6-4        (c)  Infrastructure refueling projects receiving construction
    6-5  funds under this subchapter shall be accessible to and serve the
    6-6  general public.
    6-7        Sec. 113.265.  LOAN AMOUNT; INTEREST.  (a)  The commission
    6-8  shall base the amount of a loan under this subchapter on the
    6-9  estimated cost of making the proposed conversion, but may not allow
   6-10  use of more than $5,000 of the loan proceeds for the conversion of
   6-11  a single vehicle or piece of oil field equipment.
   6-12        (b)  The commission may provide that a loan under this
   6-13  chapter to a state agency, county, municipality, school district,
   6-14  or mass transit authority or department does not bear interest.  A
   6-15  loan to another entity must bear interest.  The commission shall
   6-16  set the rate of interest on an interest-bearing loan at a rate that
   6-17  is not greater than the auction average rate quoted on a bank
   6-18  discount basis for 26-week treasury bills issued by the United
   6-19  States government, as published by the Federal Reserve Board, plus
   6-20  two percent.
   6-21        Sec. 113.266.  TERM OF LOAN.  All amounts due on a loan under
   6-22  this subchapter must be paid not later than five years after the
   6-23  date of the loan.
   6-24        Sec. 113.267.  SALE OF VEHICLE OR OIL FIELD EQUIPMENT.  A
   6-25  borrower may not transfer a vehicle, other property or piece of oil
    7-1  field equipment converted to use of alternative fuels or
    7-2  constructed with money lent under this subchapter before all
    7-3  amounts due on the loan are paid, unless before the transfer of the
    7-4  vehicle or piece of oil field equipment the conversion equipment is
    7-5  removed and installed on another vehicle or piece of oil field
    7-6  equipment owned by the borrower.
    7-7        SECTION 5.  This Act takes effect September 1, 1993.
    7-8        SECTION 6.  The importance of this legislation and the
    7-9  crowded condition of the calendars in both houses create an
   7-10  emergency and an imperative public necessity that the
   7-11  constitutional rule requiring bills to be read on three several
   7-12  days in each house be suspended, and this rule is hereby suspended.