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.