By: Montford S.B. No. 946
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the authority of the Railroad Commission of Texas to
1-2 accept, receive and administer grants, gifts, loans or other funds
1-3 for activities of the Alternative Fuels Research and Education
1-4 Divisions.
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, natural gas, and
1-12 other environmentally beneficial alternative fuels that are or have
1-13 the potential to be effective in improving the quality of air in
1-14 this 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 LPG, natural gas, and other alternative fuels
1-20 industry, consumers, and other interests to consult with and advise
1-21 the commission on opportunities and methods to expand the use of
1-22 LPG, natural gas, and other environmentally beneficial alternative
1-23 fuels.
2-1 SECTION 3. Section 113.243, Natural Resources Code, is
2-2 amended to read as follows:
2-3 (a) The alternative fuels research and education fund is
2-4 created in the state treasury.
2-5 (b) The fund consists of money from:
2-6 (1) fees charged under this subchapter;
2-7 (2) the penalties for the late payment of the fee
2-8 charged under this subchapter; and
2-9 (3) the commission may apply for, request, solicit,
2-10 contract for, receive, and accept money and other assistance from
2-11 any source for the purposes of this subchapter; and
2-12 (4) <(3)> interest earned on amounts in the fund.
2-13 (c) The fund may be used only by the commission to pay for
2-14 activities relating to the specific fuel from which the fee or gift
2-15 was derived, including direct and indirect costs relating to:
2-16 (1) researching all possible uses of LPG, natural gas
2-17 and other alternative fuels to enhance air 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 conservation and distribution plans to
2-23 minimize the frequency and severity of disruptions in the supply of
2-24 alternative fuels;
2-25 (4) developing a public information plan that will
3-1 provide advisory services relating to alternative fuels to
3-2 consumers;
3-3 (5) developing voluntary participation plans to
3-4 promote the use of alternative fuels by federal, state, and local
3-5 agencies;
3-6 (6) other functions the commission determines are
3-7 necessary to add to a program established by the commission for the
3-8 purposes of promoting the use of LPG, natural gas, or other
3-9 environmentally beneficial alternative fuels; and
3-10 (7) the administrative costs incurred by the
3-11 commission under this subchapter.
3-12 (d) If a specific fee or a gift authorized under this
3-13 subchapter is collected from discrete components of the alternative
3-14 fuels industry, <other than LPG,> the fee or gift shall be
3-15 deposited in a separate account within the fund.
3-16 (e) The commission may apply for, request, solicit, contract
3-17 for, receive, and accept money and other assistance from any source
3-18 for the purposes of this subchapter. Funds received under this
3-19 subsection shall be deposited in a separate account as designated
3-20 in subsection (d) of this section within the fund.
3-21 SECTION 4. Chapter 113, Natural Resources Code, is amended
3-22 by adding Subchapter J to read as follows:
3-23 SUBCHAPTER J. ALTERNATIVE FUELS CONVERSION
3-24 Sec. 113.261. LEGISLATIVE FINDINGS. The legislature finds
3-25 that this subchapter serves the public purposes of development and
4-1 diversification of the economy of the state, elimination of
4-2 unemployment or underemployment in the state, and the development
4-3 or expansion of transportation or commerce in the state, as stated
4-4 by Article III, Section 52-a, of the Texas Constitution.
4-5 Sec. 113.262. ALTERNATIVE FUELS CONVERSION FUND. (a) The
4-6 alternative fuels conversion fund is a fund in the state treasury.
4-7 (b) The fund may be used only by the commission to pay for
4-8 activities relating to the specific fuel from which the fund, grant
4-9 or gift was derived. If a specific fund, grant or gift authorized
4-10 under this subchapter is designated for or collected from discrete
4-11 components of the alternative fuels industry, the specific fund,
4-12 grant or gift shall be deposited in a separate account within the
4-13 fund.
4-14 (c) The fund consists of:
4-15 (1) oil overcharge funds as appropriated by Section
4-16 129 Article V f 585, Act of the 73rd Legislative session;
4-17 (2) gifts and grants authorized under this subchapter;
4-18 (3) other funds as designated by the legislature or
4-19 the executive branch;
4-20 (4) payments of principal and interest on loans made
4-21 under this subchapter; and
4-22 (5) interest earned on amounts in the fund.
4-23 (d) The commission may apply for, request, solicit, contract
4-24 for, receive, and accept money and other assistance from any source
4-25 for the purposes of this subchapter. Funds received under this
5-1 subsection shall be deposited in a separate account as designated
5-2 in subsection (b) of this section within the fund.
5-3 (e) Money in the fund may be used only for the purposes of
5-4 this subchapter, including the payment of the costs of
5-5 administering this subchapter where allowed by law or federal
5-6 regulations.
5-7 Sec. 113.263. AUTHORIZATION OF CONVERSION LOANS; RULES.
5-8 (a) The commission may use money in the alternative fuels
5-9 conversion fund to make loans, grants or other appropriate
5-10 distributions to eligible borrowers to fund eligible conversion and
5-11 infrastructure projects and for other purposes for the promotion of
5-12 LPG, natural gas, and other environmentally beneficial fuels
5-13 subject to applicable Department of Energy regulations and
5-14 approval.
5-15 (b) The commission shall adopt rules necessary to administer
5-16 this subchapter including provisions for the ultimate distribution
5-17 of funds hereunder in accordance with Department of Energy rules
5-18 and regulations.
5-19 Sec. 113.264. ELIGIBLE BORROWERS AND PROJECTS.
5-20 (a) Eligible individuals and businesses, as defined by the rules
5-21 adopted hereunder, but specifically including Historically
5-22 Underutilized Businesses, low income individuals, institutions of
5-23 higher education and healthcare facilities are eligible to receive
5-24 a loan, grant or other disbursement determined by the commission to
5-25 carry out eligible conversion and infrastructure projects
6-1 hereunder.
6-2 (b) A state agency, county, municipality, school districts,
6-3 or mass transit authority or department is eligible to receive a
6-4 loan, grant or other disbursement determined by the commission
6-5 under this subchapter to carry out eligible conversion and
6-6 infrastructure projects to compressed natural gas to comply with
6-7 Chapter 189 or 1190, Acts of the 71st Legislature, Regular Session,
6-8 1989.
6-9 (c) Infrastructure refueling projects receiving construction
6-10 funds under this subchapter shall be accessible to and serve the
6-11 general public.
6-12 Sec. 113.265. LOAN AMOUNT; INTEREST. (a) The commission
6-13 shall base the amount of a loan under this subchapter on the
6-14 estimated cost of making the proposed conversion, but may not allow
6-15 use of more than $5,000 of the loan proceeds for the conversion of
6-16 a single vehicle.
6-17 (b) The commission may provide that a loan under this
6-18 chapter to a state agency, county, municipality, school district,
6-19 or mass transit authority or department does not bear interest. A
6-20 loan to another entity must bear interest. The commission shall
6-21 set the rate of interest on an interest-bearing loan at a rate that
6-22 is not greater than the auction average rate quoted on a bank
6-23 discount basis for 26-week treasury bills issued by the United
6-24 States government, as published by the Federal Reserve Board, plus
6-25 two percent.
7-1 Sec. 113.266. TERM OF LOAN. All amounts due on a loan under
7-2 this subchapter must be paid not later than five years after the
7-3 date of the loan.
7-4 SECTION 5. This Act takes effect September 1, 1993.
7-5 SECTION 6. The importance of this legislation and the
7-6 crowded condition of the calendars in both houses create an
7-7 emergency and an imperative public necessity that the
7-8 constitutional rule requiring bills to be read on three several
7-9 days in each house be suspended, and this rule is hereby suspended.