By: Armbrister S.B. No. 1014
A BILL TO BE ENTITLED
AN ACT
1-1 relating to financing alternatives for the conversion of
1-2 government-owned vehicles to alternative fuels and the use of
1-3 alternative fuels by those vehicles; granting the authority to
1-4 issue bonds to the Texas Public Finance Authority.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. The Texas Public Finance Authority Act (Article
1-7 601d, Vernon's Texas Civil Statutes) is amended by adding Section
1-8 9C to read as follows:
1-9 Sec. 9C. ISSUANCE OF OBLIGATIONS FOR ALTERNATIVE
1-10 FUELS. (a) The authority may issue and sell up to $50 million in
1-11 obligations for the financing of alternative fuel projects. The
1-12 authority may, if it determines that the project is financially
1-13 viable and that sufficient revenue is or will be available, issue
1-14 and sell obligations for the financing of:
1-15 (1) the conversion of state agency vehicles and other
1-16 sources of substantial energy output to alternative fuels under
1-17 Section 3.29, State Purchasing and General Services Act (Article
1-18 601b, Vernon's Texas Civil Statutes), and its subsequent
1-19 amendments;
1-20 (2) the construction, acquisition, or maintenance by
1-21 the General Services Commission of fueling stations supplying
1-22 alternative fuels or equipment enhancing the use of engine-driven
1-23 technology to support state agency vehicles and other energy
2-1 applications that use alternative fuels;
2-2 (3) the conversion of school district motor vehicles
2-3 and other sources of substantial energy output to alternative fuels
2-4 under Section 21.174, Education Code, and its subsequent
2-5 amendments;
2-6 (4) the construction, acquisition, and maintenance by
2-7 a school district of fueling stations supplying alternative fuels
2-8 or equipment enhancing the use of engine-driven technology to
2-9 support school district motor vehicles and other energy
2-10 applications that use alternative fuels;
2-11 (5) the conversion of local mass transit authority and
2-12 department motor vehicles and other sources of substantial energy
2-13 output to alternative fuels under Section 14, Chapter 141, Acts of
2-14 the 63rd Legislature, Regular Session, 1973 (Article 1118x,
2-15 Vernon's Texas Civil Statutes); Section 20, Chapter 683, Acts of
2-16 the 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
2-17 Statutes); and Section 6, Article 1118z, Revised Statutes, and
2-18 their subsequent amendments;
2-19 (6) the construction, acquisition, or maintenance of
2-20 fueling stations supplying alternative fuels or equipment enhancing
2-21 the use of engine-driven technology by a local mass transit
2-22 authority or department to support transit authority or department
2-23 vehicles and other energy applications that use alternative fuels;
2-24 and
2-25 (7) joint ventures between the state or a political
3-1 subdivision that is required under law to use alternative fuels in
3-2 its vehicles and other energy applications and the private sector
3-3 to convert vehicles and other sources of substantial energy output
3-4 to alternative fuels, to develop fueling stations and resources for
3-5 the supply of alternative fuels and engine-driven applications, to
3-6 aid in the distribution of alternative fuels, and to engage in
3-7 other projects to facilitate the use of alternative fuels.
3-8 (b) The board may provide for the payment of the principal
3-9 of and interest on the bonds and obligations issued under this
3-10 section:
3-11 (1) by pledging all or a part of the revenue derived
3-12 from the sale of alternative fuels, alternative fuels equipment and
3-13 technology, or alternative fuels-powered vehicles by the state;
3-14 (2) by contractually agreeing with a political
3-15 subdivision or a private entity to pledge sufficient revenue from
3-16 the sale of alternative fuels, alternative fuels equipment and
3-17 technology, or alternative fuels-powered vehicles by the political
3-18 subdivision or private entity to insure that the bonds or
3-19 obligations are paid;
3-20 (3) by pledging appropriated general revenues of the
3-21 state or other appropriated funds or deposits in the state
3-22 treasury; or
3-23 (4) from any other source of funds lawfully available
3-24 to the board.
3-25 (c) The authority shall attempt to include minority-owned
4-1 businesses in the issuance and underwriting of at least 20 percent
4-2 of the bonds and obligations issued under this section. The
4-3 authority shall attempt to include women-owned businesses in the
4-4 issuance and underwriting of at least 10 percent of the bonds and
4-5 obligations issued under this section.
4-6 (d) If the 73rd Legislature creates the Alternative Fuels
4-7 Council in Subchapter J, Chapter 113, Natural Resources Code, the
4-8 council shall evaluate all applications by eligible entities
4-9 described in this section for bond financing of alternative fuels
4-10 infrastructure acquisitions, construction, and improvements and
4-11 shall determine whether the activities described in such
4-12 application will increase energy and cost savings to the state or
4-13 political subdivision submitting such application. Before bonds or
4-14 other obligations are issued under Subsection (a) of this section,
4-15 the council must certify that the proposed project will increase
4-16 energy and cost savings to the state or political subdivision
4-17 submitting such application. If the council cannot make this
4-18 certification for a proposed project, bonds and other obligations
4-19 may not be issued for that project under Subsection (a) of this
4-20 section. The council is hereby authorized to adopt rules of
4-21 procedure and standards for the evaluation of applications for bond
4-22 financing.
4-23 (e) If the 73rd Legislature does not create the Alternative
4-24 Fuels Council in Subchapter J, Chapter 113, Natural Resources Code,
4-25 the board shall certify that the proposed project will increase
5-1 energy and cost savings to the state or political subdivision
5-2 submitting such application before bonds or other obligations are
5-3 issued under Subsection (a) of this section. If the board cannot
5-4 make this certification for a proposed project, bonds and other
5-5 obligations may not be issued for that project under Subsection (a)
5-6 of this section.
5-7 (f) The costs associated with administration of the
5-8 alternative fuels finance program shall be considered a part of
5-9 project costs and shall be funded with bond proceeds.
5-10 SECTION 2. The importance of this legislation and the
5-11 crowded condition of the calendars in both houses create an
5-12 emergency and an imperative public necessity that the
5-13 constitutional rule requiring bills to be read on three several
5-14 days in each house be suspended, and this rule is hereby suspended,
5-15 and that this Act take effect and be in force from and after its
5-16 passage, and it is so enacted.