By Stiles                                              H.B. No. 346
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the alternative fuels program; the adoption of certain
    1-3  regulations to encourage and require the use of alternative fuels;
    1-4  the purchase, financing, lease, or conversion of motor vehicles by
    1-5  school districts, local governments, private fleet operators, and
    1-6  local (and certain mass) transit authorities and districts to
    1-7  assure the use of alternative fuels.
    1-8        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-9        SECTION 1.  Section 382.131, Health and Safety Code, is
   1-10  amended by adding subsections (1), (2, (3), (4), (5), (7), and (9)
   1-11  and renumbering the remaining subsections to read as follows:
   1-12        Sec. 382.131.  DEFINITIONS.  In this subchapter:
   1-13              (1)  "Alternative fuel" means any fuel (including
   1-14  methanol, ethanol, or other alcohols (including any mixture thereof
   1-15  containing 85 percent or more by volume of such alcohol with
   1-16  gasoline or other fuels), reformulated gasoline, diesel, natural
   1-17  gas, liquefied petroleum gas, and hydrogen) or power source
   1-18  (including electricity) used in a clean-fuel vehicle that complies
   1-19  with the standards and requirements applicable to such vehicle
   1-20  under Subchapter II (Emission Standards For Moving Sources) of the
   1-21  federal Clean Air Act (42 U.S.C.  Section 7401 et seq.) when using
   1-22  such fuel or power source.
   1-23              (2)  "Capable of Being Centrally Fueled" means a fleet
    2-1  or that part of a fleet, consisting of vehicles that could be
    2-2  refueled 100 percent of the time at a location that is owned,
    2-3  operated, or controlled by the covered fleet operator, or is under
    2-4  contract with the covered fleet operator.
    2-5              (3)  "Centrally Fueled" means a fleet, or that part of
    2-6  a fleet, consisting of vehicles that are fueled 100 percent of the
    2-7  time, at a location that is owned, operated, or controlled by the
    2-8  covered fleet operator, or is under contract with the covered fleet
    2-9  operator.  The term 'centrally fueled' does not include retail
   2-10  credit card purchases or commercial credit fleet service cards.
   2-11              (4)  "Clean-fuel vehicle" means a vehicle in a class or
   2-12  category of vehicles which has been certified to meet for any model
   2-13  year the clean-fuel vehicle standards applicable under Part C
   2-14  (Clean Fuel Vehicles) of Subchapter II of the federal Clean Air Act
   2-15  (42 U.S.C. Section 7401 et seq.).
   2-16              (5)  "Conventional gasoline" means any gasoline which
   2-17  does not meet specifications set by a certification under
   2-18  subsection 211(k) of the federal Clean Air Act (42 U.S.C. Section
   2-19  7545(k)).
   2-20              <1> (6)  "Emissions" means emissions of oxides of
   2-21  nitrogen, volatile organic compounds, carbon monoxide,
   2-22  particulates, or any combination of those substances.
   2-23              <2> (7)  "Fleet vehicle" means a vehicle which is
   2-24  centrally fueled or capable of being centrally fueled and is
   2-25  required to be registered under Chapter 88, General Laws, Acts of
    3-1  the 41st Legislature, 2nd Called Session 1929 (Article 6675a-2,
    3-2  Vernon's Texas Civil Statutes).  The term does not include:  (A) a
    3-3  fleet vehicle which under normal conditions is garaged at a
    3-4  personal residence; or (B) a fleet vehicle with a GVWR of greater
    3-5  than 26,000 pounds.
    3-6              <3> (8)  "Mass transit authority" means a
    3-7  transportation or transit authority or department established under
    3-8  Chapter 141, Acts of the 63rd Legislature, Regular Session, 1973
    3-9  (Article 1118x, Vernon's Texas Civil Statutes), Chapter 683, Acts
   3-10  of the 66th Legislature, Regular Session, 1979 (Article 1118y,
   3-11  Vernon's Texas Civil Statutes), or Article 1118z, Revised Statutes,
   3-12  that operates a mass transit system under any of those laws.
   3-13              (9)  "Reformulated gasoline" means gasoline that has
   3-14  been certified as a reformulated gasoline under the federal
   3-15  Environmental Protection Agency's certification regulations
   3-16  promulgated in accordance with Section 211(k)(4) of the federal
   3-17  Clean Air Act (42 U.S.C. Section 7545(k)(4)).
   3-18              (10)  "Vehicle that Is Normally Garaged at a Personal
   3-19  Residence" means a vehicle that, when it is not in use, is normally
   3-20  parked at the residence of the individual who usually operates it,
   3-21  rather than at a central refueling, maintenance, and/or business
   3-22  location.  Such vehicles are not considered to be capable of being
   3-23  centrally fueled and are exempt unless they are, in fact, centrally
   3-24  fueled 100 percent of the time.
   3-25        SECTION 2:  Section 382.133, Health and Safety Code, is
    4-1  amended to read as follows:
    4-2        Sec. 382.133.  MASS TRANSIT FLEET VEHICLES.  (a)  The board
    4-3  by rule shall require a mass transit authority to ensure that its
    4-4  vehicles can operate on  <compressed natural gas or other>
    4-5  alternative fuels <that result in comparably lower emissions>.
    4-6        (b)  Rules adopted under this section must require a mass
    4-7  transit authority to have its fleet vehicles able to operate on
    4-8  <compressed natural gas or other> any alternative fuel according to
    4-9  the following schedule;
   4-10              (1)  not later than September 1, 1994, at least 30
   4-11  percent of the vehicles; and
   4-12              (2)  not late than September 1, 1996, at least 50
   4-13  percent of the vehicles.
   4-14        (c)  Contingent on the board's review, not later than
   4-15  December 31, 1996, of the alternative fuels program established by
   4-16  this section and the board's determination that the program is
   4-17  reducing emissions, is projected to be effective in improving
   4-18  overall air quality, and is necessary to the attainment of federal
   4-19  ambient air quality standards in the affected areas, the rules must
   4-20  require a mass transit authority, not later than September 1, 1998,
   4-21  to have at least 90 percent of its fleet vehicles able to operate
   4-22  on <compressed natural gas or other> any alternative fuel.
   4-23        SECTION 3.  Section 382.134, Health and Safety Code, is
   4-24  amended to read as follows:
   4-25        Sec. 382.134 (a) This section applies to:
    5-1              (1)  local government that operates primarily in an
    5-2  affected area a fleet of more than 15 vehicles, excluding law
    5-3  enforcement and emergency vehicles; and
    5-4              (2)  a private person that operates primarily in an
    5-5  affected area a fleet of more than 25 fleet <motor> vehicles,
    5-6  excluding emergency vehicles.
    5-7        (b)  If the board determines under Section 382.133 that the
    5-8  alternative fuels program is reducing emissions, is projected to be
    5-9  effective in improving overall air quality, and is necessary to
   5-10  comply with federal ambient air quality standards for ozone, carbon
   5-11  monoxide oxides of nitrogen, or particulates in the affected areas,
   5-12  the board by rule shall require a local government or a private
   5-13  person to ensure that its fleet vehicles can operate on <compressed
   5-14  natural gas or> any <other> alternative fuel<s that reduce total
   5-15  annual emissions from motor vehicles in the area> pursuant to
   5-16  Subsection (c).
   5-17        (c)  Rules adopted under this section must require a local
   5-18  government or private person to have its fleet vehicles able to
   5-19  operate on   <compressed natural gas or> any <other> alternative
   5-20  fuel according to the following schedule:
   5-21              (1)  30 percent of new fleet vehicles purchased after
   5-22  September 1, 1998 <not later than September 1, 1998, at least 30
   5-23  percent of the vehicles>;
   5-24              (2)  50 percent of new fleet vehicles purchased after
   5-25  September 1, 2000 <not later than September 1, 2000, at least 50
    6-1  percent of the vehicles>; and
    6-2              (3)  90 percent of new fleet vehicles purchased after
    6-3  September 1, 2002 <not later than September 1, 2002, at least 90
    6-4  percent of vehicles>.
    6-5        (d)  The requirements of this section may be met through
    6-6  conversion of existing or new gasoline or diesel powered vehicles
    6-7  to clean-fuel vehicles.  For purposes of such provisions, the
    6-8  conversion of a vehicle to a clean-fuel vehicle shall be treated as
    6-9  a purchase.  Nothing in the section shall be construed to provide
   6-10  that any fleet subject to the requirements of this section shall be
   6-11  required to convert existing or new gasoline or diesel-powered
   6-12  vehicles to clean-fuel vehicles or to purchase converted vehicles
   6-13  in the event that clean fuel vehicles are not available from
   6-14  original equipment manufacturers.  The choice of clean-fuel vehicle
   6-15  and alternative fuel shall be made by the fleet operator.
   6-16        SECTION 4:  Section 382.135, Health and Safety Code, is
   6-17  amended to read as follows:
   6-18        Sec. 382.135.  DUAL FUEL CONVERSION.  The percentage
   6-19  requirements of Sections 382.133 and 382.134 may be met by the dual
   6-20  fuel conversion or capability of conventional gasoline-powered or
   6-21  diesel-powered vehicles to operate also on<compressed natural gas
   6-22  or other> any alternative fuel<s that result in comparably lower
   6-23  emissions>.
   6-24        SECTION 5:  Subchapter F, Chapter 382, Health and Safety
   6-25  Code, is amended by adding Section 382.135A to read as follows:
    7-1        Sec. 382.135A  CREDITS.  (a)  The percentage requirements of
    7-2  Sections 382.133 and 382.134 may be met by trading and banking of
    7-3  emission reduction credits.
    7-4        (b)  Rules adopted under this section shall provide for the
    7-5  issuance of appropriate emission reduction credits to a fleet
    7-6  operator for any of the following (or any combination thereof):
    7-7              (1)  the purchase of clean-fuel vehicles which meet
    7-8  more stringent standards than required under this Subchapter;
    7-9              (2)  the purchase of more clean-fuel vehicles than
   7-10  required under Sections 382.133 and 382.134;
   7-11              (3)  the purchase of clean-fuel vehicles in categories
   7-12  not required by this Subchapter; and
   7-13              (4)  the purchase of clean-fuel vehicles prior than
   7-14  required under Sections 382.133 and 382.134.
   7-15        (c)  Emission reduction credits issued for the purchase of a
   7-16  clean-fuel vehicle pursuant to this section shall be adjusted with
   7-17  appropriate weighting to reflect the level of emission reduction
   7-18  achieved by the vehicle.
   7-19        (d)  Emission reduction credits issued pursuant to this
   7-20  section may be used by the person holding such credits to
   7-21  demonstrate compliance with the percentage requirements of Sections
   7-22  382.133 and 382.134 or may be traded, sold, purchased, or banked
   7-23  for use by any other person to demonstrate compliance with other
   7-24  air pollutant emission reduction requirements of applicable law
   7-25  within the same nonattainment area.  Emission reduction credits
    8-1  issued pursuant to this section may be used in any manner provided
    8-2  by law with regard to area emission reduction credit organizations
    8-3  under Chapter 384, Health and Safety Code.
    8-4        (e)  The Texas Natural Resource Conservation Commission shall
    8-5  adopt regulations to implement this section by September 1, 1997.
    8-6        SECTION 6:  Section 382.136 (a)(3), Health and Safety Code,
    8-7  is amended to read as follows:
    8-8        Sec. 382.136(a)(3) the affected entity is unable to secure
    8-9  financing provided by or arranged through the proposed supplier or
   8-10  suppliers of <compressed natural gas or other> alternative fuels
   8-11  sufficient to cover the additional costs of alternative fueling.
   8-12        SECTION 7:  Section 382.138(a) and (b), Health and Safety
   8-13  Code, is amended to read as follows:
   8-14        Sec. 382.138(a) In conjunction with the development of state
   8-15  implementation plans for achieving and maintaining compliance with
   8-16  federal ambient air quality standards under the federal Clean Air
   8-17  Act (42 U.S.C. Section 7401 et seq.), the board shall evaluate and
   8-18  determine, for areas required by federal law to have state
   8-19  implementation plans, the effectiveness of and need for the use of
   8-20  <compressed natural gas or other> alternative fuels in vehicles.
   8-21        (b)  The evaluation and determination must include:
   8-22              (1)  the uses of <compressed natural gas or other>
   8-23  alternative fuels required by Sections 382.133 and 382.134; and
   8-24              (2)  additional or different uses of  <compressed
   8-25  natural gas or other> alternative fuels.
    9-1        SECTION 8:  Section 382.139, Health and Safety code, is
    9-2  amended to read as follows:
    9-3        Sec. 382.139(a) If, after considering the factors listed in
    9-4  Section 382.138 the board determines that the use of <compressed
    9-5  natural gas or other> alternative fuels for certain categories of
    9-6  motor vehicles is effective and necessary for achieving and
    9-7  maintaining compliance with federal ambient air quality standards,
    9-8  the board by rule shall require those uses in addition to uses
    9-9  required elsewhere in this subchapter.
   9-10        (b)  If, after considering the factors listed in Section
   9-11  382.138, the board determines that the additional uses are
   9-12  appropriate, the board may establish and implement programs
   9-13  encouraging the use of <compressed natural gas or other>
   9-14  alternative fuels for certain categories of vehicles.
   9-15        SECTION 9:  Section 382.140(a), Health and Safety Code, is
   9-16  amended to read as follows:
   9-17        Sec. 382.140(a) In connection with the evaluations and
   9-18  determinations required under Section 382.138 and encouraging the
   9-19  use of <natural gas and other> alternative fuels, the board may
   9-20  conduct or have conducted appropriate studies or pilot programs.
   9-21        SECTION 10:  Section 382.141, Health and Safety Code, is
   9-22  amended to read as follows:
   9-23        Sec. 382.141.  REPORT REQUIRED.  The board shall report
   9-24  biennially its evaluations and determinations on the use of
   9-25  <compressed natural gas or other> alternative fuels and recommend
   10-1  legislative changes necessary to implement an effective and
   10-2  feasible program for the use of <compressed natural gas and other>
   10-3  alternative fuels.  The report shall be submitted to the governor
   10-4  and the legislature not later than the 30th day before the
   10-5  commencement of each regular legislative session.
   10-6        SECTION 11:  Section 21.174(c), (d)(1), (e)(1), (e)(3), (g),
   10-7  and (h), Education Code, is amended to read as follows:
   10-8        Sec. 21.174(c)(1) Except as provided in Subsections (e) and
   10-9  (f), no county or local district school board may purchase or lease
  10-10  or authorize the purchase or lease after September 1, 1993, of a
  10-11  motor vehicle used for transporting school children for any county
  10-12  or local school district operating more than 50 such vehicles
  10-13  unless that vehicle is capable of using <compressed natural gas or
  10-14  other> any alternative fuel<s which result in comparably lower
  10-15  emissions of oxides of nitrogen, volatile organic compounds, carbon
  10-16  monoxide, or particulates or any combination thereof> as defined in
  10-17  section 382.131(1) of the Texas Health and Safety Code.
  10-18              (2)  A county or local district school board may
  10-19  acquire or be provided equipment or refueling facilities necessary
  10-20  to operate such vehicles using <compressed natural gas or other>
  10-21  alternative fuels:
  10-22                    (A)  by purchase or lease as authorized by law;
  10-23                    (B)  by gift or loan of the equipment or
  10-24  facilities; or
  10-25                    (C)  by gift or loan of the equipment or
   11-1  facilities or other arrangement pursuant to a service contract for
   11-2  the supply of <compressed natural gas or other> alternative fuels.
   11-3              (3)  If such equipment or facilities are donated,
   11-4  loaned, or provided through other arrangement with the supplier of
   11-5  <compressed natural gas or other> alternative fuels, the supplier
   11-6  shall be entitled to recoup its actual cost of donating, loaning,
   11-7  or providing the equipment or facilities through its fuel charges
   11-8  under the supply contract.
   11-9        (d)(1)  Any county or local district school board which
  11-10  operates a fleet of more than 50 motor vehicles used for
  11-11  transporting school children shall ensure that:
  11-12                    (A)  not less than 50 percent of its fleet is
  11-13  capable of using <compressed natural gas or other> alternative
  11-14  fuels not later than the earlier of September 1, 1997, or four
  11-15  years from the date the fleet exceeds 50 vehicles; and
  11-16                    (B)  not less than 90 percent of its fleet is
  11-17  capable of using <compressed natural gas or other> alternative
  11-18  fuels not later than September 1, 2001.
  11-19        (e)(1)  The requirement of Subsections (c) and (d) do not
  11-20  apply to any school district if the county or local district school
  11-21  board acts in accordance with Paragraph (A), (B), or (C).
  11-22                    (A)  The requirements do not apply if the county
  11-23  or local district school board solicits, but does not receive, any
  11-24  bids for service contracts for the supply of <compressed natural
  11-25  gas or other> alternative fuels that are at or below the net
   12-1  projected costs of continued use of <traditional> conventional
   12-2  gasoline as defined in Section 382.131(5) of the Texas Health and
   12-3  Safety Code or diesel fuels measured over the expected useful life
   12-4  of the equipment or facilities supplied.  The bid solicitation
   12-5  provision does not require any board to solicit a bid for service
   12-6  contracts more than once during any fiscal year.
   12-7                    (B)  The requirements do not apply if the county
   12-8  or local district school board solicits, but does not receive, any
   12-9  bids for conversion of engines or vehicles or replacement of
  12-10  engines or vehicles to <compressed natural gas or other>
  12-11  alternative fuels that are at or below the net projected costs of
  12-12  continued use of <traditional> conventional gasoline or diesel
  12-13  fuels measured over the expected useful life of the engine or
  12-14  vehicle.
  12-15                    (C)  The requirements do not apply if the county
  12-16  or local district school board solicits, but does not receive, any
  12-17  bids for a contract that provides for conversion or replacement, or
  12-18  both, of engines or vehicles, or both, to <compressed natural gas
  12-19  or other> alternative fuels and for the supply of <compressed
  12-20  natural gas or other> alternative fuels that is at or below the net
  12-21  projected costs of continued use of <traditional> conventional
  12-22  gasoline or diesel fuels measured over the expected useful life of
  12-23  the equipment, facilities, vehicles, and engines.  The bid
  12-24  solicitation provision does not require a board to solicit such a
  12-25  bid more than once during any three-year period.
   13-1        (e)(3)  In determining total cost-effectiveness under this
   13-2  subsection, a board may consider both the short-term and long-term
   13-3  costs to the district and other objective factors that may affect
   13-4  the capacity of the district to use <compressed natural gas or
   13-5  other> alternative fuels.  The board shall consider availability of
   13-6  state and federal funds for conversion and replacement purposes.
   13-7        (g)  County and local district school boards and the General
   13-8  Services Commission in purchasing, leasing, maintaining, or
   13-9  converting vehicles for <compressed natural gas or other>
  13-10  alternative fuels use shall comply with all applicable safety
  13-11  standards promulgated by the United States Department of
  13-12  Transportation and the Railroad Commission of Texas or their
  13-13  successor agencies.  The requirements of Subsections (c) and (d) do
  13-14  not require a district to convert any vehicle or engine to
  13-15  <compressed natural gas or other> alternative fuel if the
  13-16  conversion does not meet fuel system integrity standards as
  13-17  designed and tested by the National Highway Transportation Safety
  13-18  Administration or the Railroad Commission of Texas.
  13-19        (h)  In this section, a vehicle is considered to be capable
  13-20  of using <compressed natural gas or other> alternative fuels if the
  13-21  vehicle is capable of using <compressed natural gas or other>
  13-22  alternative fuels either in its original equipment engine or in an
  13-23  engine that has been converted to use <compressed natural gas or
  13-24  other> alternative fuels after September 1, 1991.
  13-25        SECTION 12:  Section 14(c), (d), (e), (h)(2)(A), and
   14-1  (h)(2)(B), Chapter 503, Acts of the 72nd Legislature, Regular
   14-2  Session, 1991, (Article 1118x, Vernon's Texas Civil Statutes), are
   14-3  amended to read as follows:
   14-4        Sec. 14(c)(1) The board may not purchase or lease after
   14-5  September 1, 1991, any motor vehicle unless that vehicle is capable
   14-6  of using <compressed natural gas or other> any alternative fuel<s
   14-7  which result in comparably lower emissions of oxides of nitrogen,
   14-8  volatile organic compounds, carbon monoxide, or particulates or any
   14-9  combination thereof> as defined in Section 382.131(1) of the Texas
  14-10  Health and Safety Code.
  14-11              (2)  The authority may acquire or be provided equipment
  14-12  or refueling facilities necessary to operate such vehicles using
  14-13  <compressed natural as or other> alternative fuels:
  14-14                    (A)  by purchase or lease as authorized by law;
  14-15                    (B)  by gift or loan of the equipment or
  14-16  facilities; or
  14-17                    (C)  by gift or loan of the equipment or
  14-18  facilities or other arrangement pursuant to a service contract for
  14-19  the supply of <compressed natural gas or other> alternative fuels.
  14-20              (3)  If such equipment or facilities are donated,
  14-21  loaned, or provided through other arrangement with the supplier of
  14-22  <compressed natural gas or other> alternative fuels, the supplier
  14-23  shall be entitled to recoup its actual costs of donating, loaning,
  14-24  or providing the equipment or facilities through its fuel charges
  14-25  under the supply contract.
   15-1              (4)  The board or, in an authority covered by
   15-2  Subsection (h) of this section, the Texas Air Control Board, may
   15-3  make exceptions to the requirements of this subsection if the board
   15-4  certifies that:
   15-5                    (A)  the authority's vehicles will be operating
   15-6  primarily in an area in which neither the authority nor the
   15-7  supplier has or can reasonably be expected to establish a central
   15-8  refueling station for <compressed natural gas or other> alternative
   15-9  fuels; or
  15-10                    (B)  the authority is unable to acquire or be
  15-11  provided equipment or refueling facilities necessary to operate
  15-12  vehicles using <compressed natural gas or other> alternative fuels
  15-13  at a projected cost that is reasonably expected to result in no
  15-14  greater net costs than the continued use of
  15-15  <traditional> conventional gasoline as defined in section
  15-16  382.131(5) of the Texas Health and Safety Code or diesel fuels
  15-17  measured over the expected useful life of the equipment or
  15-18  facilities supplied.
  15-19        (d)(1)  The board shall achieve the following percentages of
  15-20  vehicles capable of using <compressed natural gas or other>
  15-21  alternative fuels by the times specified:
  15-22                    (A)  the percentage shall be equal to or greater
  15-23  than 30 percent of the number of fleet vehicles operated in 1994;
  15-24  and
  15-25                    (B)  equal to or greater than 50 percent of the
   16-1  number of fleet vehicles operated by September 1, 1996.
   16-2              (2)  The Texas Air Control Board must review this
   16-3  alternative fuel use program by December 31, 1996, and if the Texas
   16-4  Air Control Board determines that the program has been effective in
   16-5  reducing total annual emissions from motor vehicles in the area,
   16-6  the board shall achieve a percentage of fleet vehicles capable of
   16-7  using <compressed natural gas or other> alternative fuels equal to
   16-8  or greater than 90 percent of the number of fleet vehicles operated
   16-9  by September 1, 1998, and thereafter.
  16-10              (3)  The board must submit to the Texas Air Control
  16-11  Board an annual report by December 31 of each year showing
  16-12  purchases, leases, and conversions of motor vehicles and usage of
  16-13  <compressed natural gas or other> alternative fuels and any other
  16-14  relevant information the Texas Air Control Board may require.
  16-15        (e)  The board in the development of the <compressed natural
  16-16  gas or other> alternative fuel use program should work with vehicle
  16-17  manufacturers and converters, fuel distributors, and others to
  16-18  delineate the vehicles to be covered, taking into consideration
  16-19  range, specialty uses, fuel availability, vehicle manufacturing and
  16-20  conversion capability, safety, resale values, and other relevant
  16-21  factors.  The board may meet the percentage requirements of this
  16-22  section through purchase of new vehicles or the conversion of
  16-23  existing vehicles, in accordance with federal and state
  16-24  requirements and applicable safety laws, to use such alternative
  16-25  fuels.
   17-1        (h)(2)(A)  the authority's vehicles will be operating
   17-2  primarily in an area in which neither the authority nor a supplier
   17-3  has or can reasonably be expected to establish a central refueling
   17-4  station for <compressed natural as or other> alternative fuels; or
   17-5                    (B)  the authority is unable to acquire or be
   17-6  provided equipment or refueling facilities necessary to operate
   17-7  vehicles using <compressed natural gas or other> alternative fuels
   17-8  at a projected cost that is reasonably expected to result in no
   17-9  greater net costs than the continued use of
  17-10  <traditional> conventional gasoline or diesel fuels measured over
  17-11  the expected useful life of the equipment or facilities supplied.
  17-12        SECTION 13:  Subsection (e)(1), (e)(2), (e)(3), (e)(4), (f),
  17-13  (g), and (h), Section 20, Chapter 1189, Acts of the 71st
  17-14  Legislature, Regular Session, 1989, (Article 1118y, Vernon's Texas
  17-15  Civil Statutes), are amended to read as follows:
  17-16        Sec. 20(e)(1) An authority may not purchase or lease after
  17-17  September 1, 1991, any motor vehicle unless that vehicle is capable
  17-18  of using <compressed natural gas or other> any alternative fuel<s
  17-19  which result in comparably lower emissions of oxides of nitrogen,
  17-20  volatile organic compounds, carbon monoxide, or particulates or any
  17-21  combination thereof> as defined in Section 382.131(1) of the Texas
  17-22  Health and Safety Code.
  17-23              (2)  an authority may acquire or be provided equipment
  17-24  or refueling facilities necessary to operate such vehicles using
  17-25  <compressed natural gas or other> alternative fuels:
   18-1                    (A)  by purchase or lease as authorized by law;
   18-2                    (B)  by gift or loan of the equipment or
   18-3  facilities; or
   18-4                    (C)  by gift or loan of the equipment or
   18-5  facilities or other arrangement pursuant to a service contract for
   18-6  the supply of <compressed natural gas or other> alternative fuels.
   18-7              (3)  If such equipment or facilities are donated,
   18-8  loaned, or provided through other arrangement with the supplier of
   18-9  <compressed natural gas or other> alternative fuels, the supplier
  18-10  shall be entitled to recoup its actual cost of donating, loaning,
  18-11  or providing the equipment or facilities through its fuel charges
  18-12  under the supply contract.
  18-13              (4)  An authority may make exceptions to the
  18-14  requirements of this subsection if the authority certifies that:
  18-15                    (A)  the authority's vehicles will be operating
  18-16  primarily in an area in which neither the authority nor a supplier
  18-17  has or can reasonably be expected to establish a central refueling
  18-18  station for <compressed natural gas or other> alternative fuels; or
  18-19                    (B)  the authority is unable to acquire or be
  18-20  provided equipment or refueling facilities necessary to operate
  18-21  vehicles using <compressed natural gas or other> alternative fuels
  18-22  at a projected cost that is reasonably expected to result in no
  18-23  greater net costs than the continued use of
  18-24  <traditional> conventional gasoline as defined in section
  18-25  382.131(5) of the Texas Health and Safety Code or diesel fuels
   19-1  measured over the expected useful life of the equipment or
   19-2  facilities supplied.
   19-3        (f)(1)  An authority shall achieve the following percentages
   19-4  of vehicles capable of using <compressed natural gas or other>
   19-5  alternative fuels by the times specified:
   19-6                    (A)  the percentage shall be equal to or greater
   19-7  than 30 percent of the number of fleet vehicles operated by
   19-8  September 1, 1994; and
   19-9                    (B)  equal to or greater than 50 percent of the
  19-10  number of fleet vehicles operated by September 1, 1996.
  19-11              (2)  The Texas Air Control Board must review this
  19-12  alternative fuel use program by December 31, 1996, and, if the
  19-13  Texas Air Control Board determines that the program has been
  19-14  effective in reducing total annual emissions from motor vehicles in
  19-15  the area, the authority shall achieve a percentage of fleet
  19-16  vehicles capable of using <compressed natural gas or other>
  19-17  alternative fuels equal to or greater than 90 percent of the number
  19-18  of fleet vehicles operated by September 1, 1998, and thereafter.
  19-19              (3)  The authority must submit to the Texas Air Control
  19-20  Board an annual report by December 31 of each year showing
  19-21  purchases, leases, and conversions of motor vehicles and usage of
  19-22  <compressed natural gas or other> alternative fuels and any other
  19-23  relevant information the Texas Air Control Board may require.
  19-24        (g)  An authority in the development of the <compressed
  19-25  natural gas or other> alternative fuel use program should work with
   20-1  vehicle manufacturers and converters, fuel distributors, and others
   20-2  to delineate the vehicles to be covered, taking into consideration
   20-3  range,  specialty uses, fuel availability, vehicle manufacturing
   20-4  and conversion capability, safety, resale values, and other
   20-5  relevant factors.  The authority may meet the percentage
   20-6  requirements of this section through the purchase of new vehicles
   20-7  or the conversion of existing vehicles, in accordance with federal
   20-8  and state requirements and applicable safety laws, to use the
   20-9  alternative fuels.
  20-10        (h)  The authority in purchasing, leasing, maintaining, or
  20-11  converting vehicles for <compressed natural gas or other>
  20-12  alternative fuels use shall comply with all applicable safety
  20-13  standards promulgated by the United States Department of
  20-14  Transportation and the Railroad Commission of Texas or their
  20-15  successor agencies.
  20-16        SECTION 14:  Paragraphs (1) and (4), Subsection (k), Section
  20-17  6, Chapter 1189, Acts of the 71st Legislature, Regular Session,
  20-18  1989, (Article 1118z, Vernon's Texas Civil Statutes), are amended
  20-19  to read as follows:
  20-20        Sec. 6(k)(1) The department may not purchase or lease after
  20-21  September 1, 1991, any motor vehicle unless that vehicle is capable
  20-22  of using <compressed natural gas or other> any alternative fuel<s
  20-23  which result in comparably lower emissions of oxides of nitrogen,
  20-24  volatile organic compounds, carbon monoxide, or particulates or any
  20-25  combination thereof> as defined in Section 382.131(1) of the Texas
   21-1  Health and Safety Code.
   21-2              (2)  The department may acquire or be provided
   21-3  equipment or refueling facilities necessary to operate such
   21-4  vehicles using <compressed natural gas or other> alternative fuels:
   21-5                    (A)  by purchase or lease as authorized by law;
   21-6                    (B)  by gift or loan of the equipment or
   21-7  facilities; or
   21-8                    (C)  by gift or loan of the equipment or
   21-9  facilities or other arrangement pursuant to a service contract for
  21-10  the supply of <compressed natural gas or other> alternative fuels.
  21-11              (3)  If such equipment or facilities are donated,
  21-12  loaned, or provided through other arrangement with the supplier of
  21-13  <compressed natural gas or other> alternative fuels, the supplier
  21-14  shall be entitled to recoup its actual cost of donating, loaning,
  21-15  or providing the equipment or facilities through its fuel charges
  21-16  under the supply contract.
  21-17              (4)  A department may make exceptions to the
  21-18  requirement of this subsection if the department certifies that:
  21-19                    (A)  the department's vehicles will be operating
  21-20  primarily in an area in which neither the department nor a supplier
  21-21  has or can reasonably be expected to establish a central refueling
  21-22  station for <compressed natural gas or other> alternative fuels; or
  21-23                    (B)  the department is unable to acquire or be
  21-24  provided equipment or refueling facilities necessary to operate
  21-25  vehicles using <compressed natural gas or other> alternative fuels
   22-1  at a projected cost that is reasonably expected to result in no
   22-2  greater net costs than the continued use of
   22-3  <traditional> conventional gasoline as defined in Section
   22-4  382.131(5) of the Texas Health and Safety Code or diesel fuels
   22-5  measured over the expected useful life of the equipment or
   22-6  facilities supplied.
   22-7        (l)(1)  A department shall achieve the following percentages
   22-8  of vehicles capable of using <compressed natural gas or>
   22-9  alternative fuels by the times specified:
  22-10                    (A)  the percentage shall be equal to or greater
  22-11  than 30 percent of the number of fleet vehicles operated by
  22-12  September 1 1994; and
  22-13                    (B)  equal to or greater than 50 percent of the
  22-14  number of fleet vehicles operated by September 1, 1996.
  22-15              (2)  The Texas Air Control Board must review the
  22-16  alternative fuel use program by December 31, 1996, and, if the
  22-17  Texas Air Control Board determines that the program has been
  22-18  effective in reducing total annual emissions from motor vehicles in
  22-19  the area, departments shall achieve a percentage of fleet vehicles
  22-20  capable of using <compressed natural gas or other> alternative
  22-21  fuels equal to or greater than 90 percent of the number of fleet
  22-22  vehicles operated by September 1, 1998, and thereafter.
  22-23              (3)  The department must submit to the Texas Air
  22-24  Control Board an annual report by December 31 of each year showing
  22-25  purchases, leases, and conversions of motor vehicles and usage of
   23-1  <compressed natural gas or other> alternative fuels and any other
   23-2  relevant information the Texas Air Control Board may require.
   23-3        (m)  A department in the development of the <compressed
   23-4  natural gas or other> alternative fuel use program should work with
   23-5  vehicle manufacturers and converters, fuel distributors, and others
   23-6  to delineate the vehicles to be covered, taking into consideration
   23-7  range, specialty uses, fuels availability, vehicle manufacturing
   23-8  and conversion capability, safety, resale values, and other
   23-9  relevant factors.  Such department may meet the percentage
  23-10  requirements of this section through the purchase of new vehicles
  23-11  or the conversion of existing vehicles, in accordance with federal
  23-12  and state requirements and applicable safety laws, to use the
  23-13  alternative fuels.
  23-14        SECTION 15:  Section 3.29(a), (b)(1), (b)(4), (e)(2), and
  23-15  (h), State Purchasing and General Services Act (Article 601b,
  23-16  Vernon's Texas Civil Statutes), is amended to read as follows:
  23-17        Sec. 3.29(a)  A state agency may not purchase or lease a
  23-18  vehicle designed or used primarily for the transportation of
  23-19  persons, including a station wagon, that was a wheel base longer
  23-20  than 113 inches or that has more than 160 SAE net horsepower,
  23-21  except that the vehicle may have a wheel base of up to 116 inches
  23-22  or SAE net horsepower of up to 280 if the vehicle will be converted
  23-23  so that it is capable of using <compressed natural gas or
  23-24  another> an alternative fuel <that results in comparably lower
  23-25  emissions of oxides of nitrogen, volatile organic compounds, carbon
   24-1  monoxide, or particulates> as defined in section 382.131(1) of the
   24-2  Texas Health and Safety Code.  This exception to the wheel base and
   24-3  horsepower limitations applies to a state agency regardless of the
   24-4  size of the agency's vehicle fleet.  The wheel base and horsepower
   24-5  limitations prescribed by this subsection do not apply to the
   24-6  purchase or lease of a vehicle to be used primarily for criminal
   24-7  law enforcement or a bus, motorcycle, pickup, van, truck,
   24-8  three-wheel vehicle, tractor, or ambulance.
   24-9        (b)(1)  A state agency operating a fleet of more than 15
  24-10  vehicles, excluding law enforcement and emergency vehicles, may not
  24-11  purchase or lease after September 1, 1991, any motor vehicle unless
  24-12  that vehicle is capable of using <compressed natural gas or
  24-13  other> an alternative fuel<s which result in comparably lower
  24-14  emissions of oxides of nitrogen, volatile organic compounds, carbon
  24-15  monoxide, or particulates or any combination thereof> as defined in
  24-16  section 382.131(1) of the Texas Health and Safety Code.
  24-17              (2)  A state agency may acquire or be provided
  24-18  equipment or refueling facilities necessary to operate such
  24-19  vehicles using <compressed natural gas or other> alternative fuels:
  24-20                    (A)  by purchase or lease as authorized by law;
  24-21                    (B)  by gift, or loan of the equipment or
  24-22  facilities; or
  24-23                    (C)  by gift or loan of the equipment or
  24-24  facilities or other arrangement pursuant to a service contract for
  24-25  the supply of <compressed natural gas or other> alternative fuels.
   25-1              (3)  If such equipment or facilities are donated,
   25-2  loaned, or provided through other arrangement with the supplier of
   25-3  <compressed natural gas or other> an alternative fuel<s>, the
   25-4  supplier shall be entitled to recoup its actual cost of donating,
   25-5  loaning, or providing the equipment or facilities through its fuel
   25-6  charges under the supply contract.
   25-7              (4)  The commission may waive the requirements of this
   25-8  subsection for any state agency upon receipt of certification
   25-9  supported by evidence acceptable to the commission that:
  25-10                    (A)  the agency's vehicles will be operating
  25-11  primarily in an area in which neither the agency nor a supplier has
  25-12  or can reasonably be expected to establish a central refueling
  25-13  station for <compressed natural gas or other> alternative fuels; or
  25-14                    (B)  the agency is unable to acquire or be
  25-15  provided equipment or refueling facilities necessary to operate
  25-16  vehicles using <compressed natural gas or other> alternative fuels
  25-17  at a projected cost that is reasonably expected to result in no
  25-18  greater net costs than the continued use of
  25-19  <traditional> conventional gasoline or diesel fuels measured over
  25-20  the expected useful life of the equipment or facilities supplied.
  25-21        (c)(1)  Any state agency which operates a fleet of more than
  25-22  15 motor vehicles, excluding law enforcement and emergency
  25-23  vehicles, shall achieve the following percentages of vehicles
  25-24  capable of using <compressed natural gas or other> alternative
  25-25  fuels by the times specified:
   26-1                    (A)  the percentage shall be equal to or greater
   26-2  than 30 percent of the number of fleet vehicles operated by
   26-3  September 1, 1994; and
   26-4                    (B)  equal to or greater than 50 percent of the
   26-5  number of fleet vehicles operated by September 1, 1996.
   26-6              (2)  The Texas <Air Control Board> Natural Resource
   26-7  Conservation Commission must review this alternative fuel use
   26-8  program by December 31, 1996, and, if the Texas <Air Control
   26-9  Board> Natural Resource Conservation Commission determines that the
  26-10  program has been effective in reducing total annual emissions from
  26-11  motor vehicles in the area, state agencies operating fleets of more
  26-12  than 15 motor vehicles  shall achieve a percentage of fleet
  26-13  vehicles capable of using <compressed natural gas or other>
  26-14  alternative fuels equal to or greater than 90 percent of the number
  26-15  of fleet vehicles operated by September 1, 1998, and thereafter.
  26-16              (3)  The commission shall support the Texas <Air
  26-17  Control Board> Natural Resource Conservation Commission in
  26-18  collecting reasonable information needed to determine the air
  26-19  quality benefits from use of alternative fuels at affected
  26-20  agencies.
  26-21              (4)  Each state agency in its annual financial report
  26-22  to the legislature must show its progress in achieving these
  26-23  percentage requirements by itemizing purchases, leases, and
  26-24  conversions of motor vehicles and usage of <compressed natural gas
  26-25  or other> alternative fuels.
   27-1        (d)  The commission, in the development of the <compressed
   27-2  natural gas or other> alternative fuels use program, should work
   27-3  with state agency fleet operators, vehicle manufacturers and
   27-4  converters, fuel distributors, and others to delineate the vehicles
   27-5  to be covered, taking into consideration range, specialty uses,
   27-6  fuel availability, vehicle manufacturing and conversion capability,
   27-7  safety, resale values, and other relevant factors.  State agencies
   27-8  may meet the percentage requirements of this section through
   27-9  purchase of new vehicles or the conversion of existing vehicles, in
  27-10  accordance with federal and state requirements and applicable
  27-11  safety laws, to use the alternative fuels.
  27-12        (e)  The commission may reduce any percentage specified or
  27-13  waive the requirements of Subsection (c) of this section for any
  27-14  state agency upon receipt of certification supported by evidence
  27-15  acceptable to the commission that:
  27-16              (1)  the agency's vehicles will be operating primarily
  27-17  in an area in which neither the agency nor a supplier has or can
  27-18  reasonably be expected to establish a central refueling station for
  27-19  <compressed natural gas or other> alternative fuels; or
  27-20              (2)  the agency is unable to acquire or be provided
  27-21  equipment or refueling facilities necessary to operate vehicles
  27-22  using <compressed natural gas or other> alternative fuels at a
  27-23  projected cost that is reasonably expected to result in no greater
  27-24  net costs than the continued use of <traditional> conventional
  27-25  gasoline or diesel fuels measured over the expected useful life of
   28-1  the equipment or facilities supplied.
   28-2        (f)  The commission in purchasing, leasing, maintaining, or
   28-3  converting vehicles for <compressed natural gas or other>
   28-4  alternative fuels use shall comply with all applicable safety
   28-5  standards promulgated by the United States Department of
   28-6  Transportation and the Railroad Commission of Texas or their
   28-7  successor agencies.
   28-8        (g)  In this section, a vehicle is considered to be capable
   28-9  of using <compressed natural gas or other> an alternative fuel<s>
  28-10  if the vehicle is capable of using <compressed natural gas or
  28-11  other> an alternative fuel<s> either in its original equipment
  28-12  engine or in an engine that has been converted to use <compressed
  28-13  natural gas or other> an alternative fuel<s> after September 1,
  28-14  1991, unless the time for compliance is extended pursuant to
  28-15  Subsection (h) of this section.
  28-16        (h)  The commission may extend the date by which a vehicle
  28-17  powered by a <traditional> conventional gasoline or diesel engine
  28-18  shall be capable of using <compressed natural gas or other> an
  28-19  alternative fuel<s> as required under this section for one or more
  28-20  periods of 90 days, but not beyond September 1, 1992, if it finds a
  28-21  lack of ability to acquire such vehicles with original alternative
  28-22  fuels equipment, to acquire such vehicles which are able to be
  28-23  converted, or to convert such vehicles to use <compressed natural
  28-24  gas or other> alternative fuels.
  28-25        SECTION 16:  This Act takes effect September 1, 1995.
   29-1        SECTION 17:  The importance of this legislation and the
   29-2  crowded conditions of the calendars in both houses create an
   29-3  emergency and imperative public necessity that the constitutional
   29-4  rule requiring bills to be read on three several days in each house
   29-5  be suspended, and this rule is hereby suspended.