1-1 By: Bivins S.B. No. 737
1-2 (In the Senate - Filed March 9, 1993; March 10, 1993, read
1-3 first time and referred to Committee on Natural Resources;
1-4 March 23, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 8, Nays 0; March 23, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Sims x
1-10 Truan x
1-11 Armbrister x
1-12 Barrientos x
1-13 Bivins x
1-14 Brown x
1-15 Carriker x
1-16 Lucio x
1-17 Montford x
1-18 Ratliff x
1-19 Shelley x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 737 By: Bivins
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to the use of alternative fuels.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Section 113.241, Natural Resources Code, is
1-26 amended to read as follows:
1-27 Sec. 113.241. Rules Regarding Research and Education. The
1-28 commission may adopt all necessary rules relating to the purposes
1-29 of this subchapter and activities <conducting research and
1-30 educating the public> regarding the use of LPG, natural gas, and
1-31 other environmentally beneficial alternative fuels that are or have
1-32 the potential to be effective in improving the quality of air in
1-33 this state.
1-34 SECTION 2. Section 113.242, Natural Resources Code, is
1-35 amended to read as follows:
1-36 Sec. 113.242. Advisory Committees. The commission may
1-37 appoint one or more advisory committees composed of members
1-38 representing the LPG, natural gas, and other alternative fuels
1-39 industry, consumers, and other interests to consult with and advise
1-40 the commission on opportunities and methods to expand the use of
1-41 LPG, natural gas, and other environmentally beneficial alternative
1-42 fuels.
1-43 SECTION 3. Section 113.243, Natural Resources Code, is
1-44 amended to read as follows:
1-45 Sec. 113.243. Alternative Fuels Research and Education Fund.
1-46 (a) The alternative fuels research and education fund is created
1-47 in the state treasury.
1-48 (b) The fund consists of money from:
1-49 (1) fees charged under this subchapter;
1-50 (2) the penalties for the late payment of the fee
1-51 charged under this subchapter; <and>
1-52 (3) gifts of money and other assistance from any
1-53 source, which the commission may apply for, request, solicit,
1-54 contract for, receive, and accept for the purposes of this
1-55 subchapter under Subsection (e) of this section; and
1-56 (4) interest earned on amounts in the fund.
1-57 (c) The fund may be used only by the commission to pay for
1-58 activities relating to the specific fuel from which the fee or gift
1-59 was derived, including direct and indirect costs relating to:
1-60 (1) researching all possible uses of LPG, natural gas,
1-61 and other alternative fuels to enhance air quality;
1-62 (2) researching, developing, and implementing
1-63 marketing, advertising, and informational programs relating to
1-64 alternative fuels to make alternative fuels more understandable and
1-65 readily available to consumers;
1-66 (3) developing conservation and distribution plans to
1-67 minimize the frequency and severity of disruptions in the supply of
1-68 alternative fuels;
2-1 (4) developing a public information plan that will
2-2 provide advisory services relating to alternative fuels to
2-3 consumers;
2-4 (5) developing voluntary participation plans to
2-5 promote the use of alternative fuels by federal, state, and local
2-6 agencies;
2-7 (6) other functions the commission determines are
2-8 necessary to add to a program established by the commission for the
2-9 purpose of promoting the use of LPG, natural gas, or other
2-10 environmentally beneficial alternative fuels; and
2-11 (7) the administrative costs incurred by the
2-12 commission under this subchapter.
2-13 (d) If a specific fee or a gift authorized under this
2-14 subchapter is designated for or collected from discrete components
2-15 of the alternative fuels industry, <other than LPG,> the fee or
2-16 gift shall be deposited in a separate account within the fund.
2-17 (e) The commission may apply for, request, solicit, contract
2-18 for, receive, and accept gifts of money and other assistance from
2-19 any source for the purposes of this subchapter. Money received
2-20 under this subsection shall be deposited in a separate account
2-21 within the fund as provided by Subsection (d) of this section.
2-22 SECTION 4. Chapter 113, Natural Resources Code, is amended
2-23 by adding Subchapter J to read as follows:
2-24 SUBCHAPTER J. ALTERNATIVE FUELS CONVERSION
2-25 Sec. 113.261. LEGISLATIVE FINDINGS. The legislature finds
2-26 that this subchapter serves the public purposes of development and
2-27 diversification of the economy of the state, elimination of
2-28 unemployment or underemployment in the state, and the development
2-29 or expansion of transportation or commerce in the state, as stated
2-30 by Article III, Section 52-a, of the Texas Constitution.
2-31 Sec. 113.262. ALTERNATIVE FUELS CONVERSION FUND. (a) The
2-32 alternative fuels conversion fund is a fund in the state treasury.
2-33 (b) The fund may be used only by the commission to pay for
2-34 activities relating to the specific fuel from which the fund,
2-35 grant, or gift was derived. If a specific fund, grant, or gift
2-36 authorized under this subchapter is designated for or collected
2-37 from discrete components of the alternative fuels industry, the
2-38 specific fund, grant, or gift shall be deposited in a separate
2-39 account within the fund.
2-40 (c) The fund consists of:
2-41 (1) oil overcharge funds as appropriated by Section
2-42 129, Article V, General Appropriations Act, page V-88, S.B. No. 5,
2-43 Acts of the 73rd Legislature, Regular Session, 1993;
2-44 (2) gifts and grants authorized under this subchapter;
2-45 (3) other funds designated by the legislature or the
2-46 executive branch;
2-47 (4) payments of principal and interest on loans made
2-48 under this subchapter; and
2-49 (5) interest earned on amounts in the fund.
2-50 (d) The commission may apply for, request, solicit, contract
2-51 for, receive, and accept money and other assistance from any source
2-52 for the purposes of this subchapter. Money received under this
2-53 subsection shall be deposited in a separate account within the fund
2-54 as provided by Subsection (b) of this section.
2-55 (e) Money in the fund may be used only for the purposes of
2-56 this subchapter, including the payment of the costs of
2-57 administering this subchapter where allowed by law or federal
2-58 regulations.
2-59 Sec. 113.263. AUTHORIZATION OF CONVERSION LOANS; RULES.
2-60 (a) The commission may use money in the alternative fuels
2-61 conversion fund to make loans, grants, or other appropriate
2-62 distributions to eligible borrowers to fund eligible conversion and
2-63 infrastructure projects and for other purposes for the promotion of
2-64 LPG, natural gas, and other environmentally beneficial fuels
2-65 subject to applicable United States Department of Energy
2-66 regulations and approval.
2-67 (b) The commission shall adopt rules necessary to administer
2-68 this subchapter including provisions for the ultimate distribution
2-69 of funds hereunder in accordance with the United States Department
2-70 of Energy rules and regulations.
3-1 Sec. 113.264. ELIGIBLE BORROWERS AND PROJECTS.
3-2 (a) Eligible individuals and businesses as defined by rules of the
3-3 commission, specifically including historically underutilized
3-4 businesses, low-income individuals, institutions of higher
3-5 education, and health care facilities, are eligible to receive a
3-6 loan, grant, or other disbursement determined by the commission to
3-7 carry out eligible conversion and infrastructure projects
3-8 hereunder.
3-9 (b) A state agency, county, municipality, school district,
3-10 or mass transit authority or department is eligible to receive a
3-11 loan, grant, or other disbursement determined by the commission
3-12 under this subchapter to carry out eligible infrastructure projects
3-13 and conversion to compressed natural gas projects in order to
3-14 comply with Chapter 1189 or 1190, Acts of the 71st Legislature,
3-15 Regular Session, 1989.
3-16 (c) Infrastructure refueling projects receiving construction
3-17 funds under this subchapter shall be accessible to and serve the
3-18 general public.
3-19 Sec. 113.265. LOAN AMOUNT; INTEREST. (a) The commission
3-20 shall base the amount of a loan under this subchapter on the
3-21 estimated cost of making the proposed conversion but may not allow
3-22 use of more than $5,000 of the loan proceeds for the conversion of
3-23 a single vehicle.
3-24 (b) The commission may provide that a loan under this
3-25 subchapter to a state agency, county, municipality, school
3-26 district, or mass transit authority or department does not bear
3-27 interest. A loan to another entity does bear interest. The
3-28 commission shall set the rate of interest on an interest-bearing
3-29 loan at a rate that is not greater than the auction average rate
3-30 quoted on a bank discount basis for 26-week treasury bills issued
3-31 by the United States Government, as published by the Federal
3-32 Reserve Board, plus two percent.
3-33 Sec. 113.266. TERM OF LOAN. All amounts due on a loan under
3-34 this subchapter must be paid not later than five years after the
3-35 date of the loan.
3-36 Sec. 113.267. TRANSFER OF VEHICLE. A borrower may not
3-37 transfer a vehicle or other property converted to the use of
3-38 alternative fuels or constructed with money lent under this
3-39 subchapter before all amounts due on the loan are paid unless
3-40 before the transfer of the vehicle the conversion equipment is
3-41 removed and installed on another vehicle owned by the borrower.
3-42 SECTION 5. This Act takes effect September 1, 1993.
3-43 SECTION 6. The importance of this legislation and the
3-44 crowded condition of the calendars in both houses create an
3-45 emergency and an imperative public necessity that the
3-46 constitutional rule requiring bills to be read on three several
3-47 days in each house be suspended, and this rule is hereby suspended.
3-48 * * * * *
3-49 Austin,
3-50 Texas
3-51 March 23, 1993
3-52 Hon. Bob Bullock
3-53 President of the Senate
3-54 Sir:
3-55 We, your Committee on Natural Resources to which was referred S.B.
3-56 No. 737, have had the same under consideration, and I am instructed
3-57 to report it back to the Senate with the recommendation that it do
3-58 not pass, but that the Committee Substitute adopted in lieu thereof
3-59 do pass and be printed.
3-60 Sims,
3-61 Chairman
3-62 * * * * *
3-63 WITNESSES
3-64 FOR AGAINST ON
3-65 ___________________________________________________________________
3-66 Name: John C. Poucano x
3-67 Representing: General Services Comm.
3-68 City: Austin
3-69 -------------------------------------------------------------------
3-70 Name: James R. Moore x
4-1 Representing: Lone Star Energy Co.
4-2 City: Dallas
4-3 -------------------------------------------------------------------
4-4 Name: Tom Smith x
4-5 Representing: Public Citizen
4-6 City: Austin
4-7 -------------------------------------------------------------------
4-8 Name: Dan Kelly x
4-9 Representing: Railroad Commission
4-10 City: Austin
4-11 -------------------------------------------------------------------
4-12 Name: Mary S. Nabers x
4-13 Representing: Railroad Commission
4-14 City: Austin
4-15 -------------------------------------------------------------------
4-16 Name: James E. Nugent x
4-17 Representing: Railroad Commission
4-18 City: Austin
4-19 -------------------------------------------------------------------
4-20 Name: Barry Willinson x
4-21 Representing: Railroad Commission
4-22 City: Austin
4-23 -------------------------------------------------------------------
4-24 Name: G. K. Sprinkle x
4-25 Representing: Tx. Assoc. of Comm. Action Ag
4-26 City: Austin
4-27 -------------------------------------------------------------------