By:  Armbrister                                        S.B. No. 200
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the alternative fuels program; the adoption of certain
    1-2  regulations to encourage and require the use of alternative fuels;
    1-3  the purchase, financing, lease, or conversion of motor vehicles by
    1-4  school districts, local governments, private fleet operators, and
    1-5  local (and certain mass) transit authorities and districts to
    1-6  assure the use of alternative fuels.
    1-7        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-8        SECTION 1.  Section 382.131, Health and Safety Code, is
    1-9  amended by adding subsections (1), (2), (3), (4), (5), (7), and (9)
   1-10  and renumbering the remaining subsections to read as follows:
   1-11        Sec. 382.131.  Definitions.
   1-12        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. & 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 later 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)  a 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
   5-12  areas, the board by rule shall require a local government or a
   5-13  private person to ensure that its fleet vehicles can operate on
   5-14  <compressed natural gas or> any <other> alternative fuel<s that
   5-15  reduce total annual emissions from motor vehicles in the area>
   5-16  pursuant to 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 fuel
   5-20  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 the 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, is
    8-7  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  EVALUATION OF ALTERNATIVE FUELS USE.  (a)  In
   8-15  conjunction with the development of state implementation plans for
   8-16  achieving and maintaining compliance with federal ambient air
   8-17  quality standards under the federal Clean Air Act (42 U.S.C.
   8-18  Section 7401 et seq.), the board shall evaluate and determine, for
   8-19  areas required by federal law to have state implementation plans,
   8-20  the effectiveness of and need for the use of <compressed natural
   8-21  gas or other> alternative fuels in vehicles.
   8-22        (b)  The evaluation and determination must include:
   8-23              (1)  the uses of <compressed natural gas or other>
   8-24  alternative fuels required by Sections 382.133 and 382.134; and
   8-25              (2)  additional or different uses of <compressed
    9-1  natural gas or other> alternative fuels.
    9-2        SECTION 8.  Section 382.139, Health and Safety Code, is
    9-3  amended to read as follows:
    9-4        Sec. 382.139(a)  If, after considering the factors listed in
    9-5  Section 382.138, the board determines that the use of <compressed
    9-6  natural gas or other> alternative fuels for certain categories of
    9-7  motor vehicles is effective and necessary for achieving and
    9-8  maintaining compliance with federal ambient air quality standards,
    9-9  the board by rule shall require those uses in addition to uses
   9-10  required elsewhere in this subchapter.
   9-11        (b)  If, after considering the factors listed in Section
   9-12  382.138, the board determines that the additional uses are
   9-13  appropriate, the board may establish and implement programs
   9-14  encouraging the use of <compressed natural gas or other>
   9-15  alternative fuels for certain categories of vehicles.
   9-16        SECTION 9.  Section 382.140(a), Health and Safety Code, is
   9-17  amended to read as follows:
   9-18        Sec. 382.140(a)  In connection with the evaluations and
   9-19  determinations required under Section 382.138 and encouraging the
   9-20  use of <natural gas and other> alternative fuels, the board may
   9-21  conduct or have conducted appropriate studies or pilot programs.
   9-22        SECTION 10.  Section 382.141, Health and Safety Code, is
   9-23  amended to read as follows:
   9-24        Sec. 382.141.  Report Required.  The board shall report
   9-25  biennially its evaluations and determinations on the use of
   10-1  <compressed natural gas or other> alternative fuels and recommend
   10-2  legislative changes necessary to implement an effective and
   10-3  feasible program for the use of <compressed natural gas and other>
   10-4  alternative fuels.  The report shall be submitted to the governor
   10-5  and the legislature not later than the 30th day before the
   10-6  commencement of each regular legislative session.
   10-7        SECTION 11.  Section 21.174(c), (d)(1), (e)(1), (e)(3), (g),
   10-8  and (h), Education Code, is amended to read as follows:
   10-9        Sec. 21.174(c)(1)  Except as provided in Subsections (e) and
  10-10  (f), no county or local district school board may purchase or lease
  10-11  or authorize the purchase or lease after September 1, 1993, of a
  10-12  motor vehicle used for transporting school children for any county
  10-13  or local school district operating more than 50 such vehicles
  10-14  unless that vehicle is capable of using <compressed natural gas or
  10-15  other> any alternative fuel<s which result in comparably lower
  10-16  emissions of oxides of nitrogen, volatile organic compounds, carbon
  10-17  monoxide, or particulates or any combination thereof> as defined in
  10-18  Section 382.131(1) of the Texas Health and Safety Code.
  10-19              (2)  A county or local district school board may
  10-20  acquire or be provided equipment or refueling facilities necessary
  10-21  to operate such vehicles using <compressed natural gas or other>
  10-22  alternative fuels:
  10-23                    (A)  by purchase or lease as authorized by law;
  10-24                    (B)  by gift or loan of the equipment or
  10-25  facilities; or
   11-1                    (C)  by gift or loan of the equipment or
   11-2  facilities or other arrangement pursuant to a service contract for
   11-3  the supply of <compressed natural gas or other> alternative fuels.
   11-4              (3)  If such equipment or facilities are donated,
   11-5  loaned, or provided through other arrangement with the supplier of
   11-6  <compressed natural gas or other> alternative fuels, the supplier
   11-7  shall be entitled to recoup its actual cost of donating, loaning,
   11-8  or providing the equipment or facilities through its fuel charges
   11-9  under the supply contract.
  11-10        (d)(1)  Any county or local district school board which
  11-11  operates a fleet of more than 50 motor vehicles used for
  11-12  transporting school children shall ensure that:
  11-13                    (A)  not less than 50 percent of its fleet is
  11-14  capable of using <compressed natural gas or other> alternative
  11-15  fuels not later than the earlier of September 1, 1997, or four
  11-16  years from the date the fleet exceeds 50 vehicles; and
  11-17                    (B)  not less than 90 percent of its fleet is
  11-18  capable of using <compressed natural gas or other> alternative
  11-19  fuels not later than September 1, 2001.
  11-20        (e)(1)  The requirements of Subsections (c) and (d) do not
  11-21  apply to any school district if the county or local district school
  11-22  board acts in accordance with Paragraph (A), (B), or (C).
  11-23                    (A)  The requirements do not apply if the county
  11-24  or local district school board solicits, but does not receive, any
  11-25  bids for service contracts for the supply of <compressed natural
   12-1  gas or other> alternative fuels that are at or below the net
   12-2  projected costs of continued use of <traditional> conventional
   12-3  gasoline as defined in Section 382.131(5) of the Texas Health and
   12-4  Safety Code or diesel fuels measured over the expected useful life
   12-5  of the equipment or facilities supplied.  The bid solicitation
   12-6  provision does not require any board to solicit a bid for service
   12-7  contracts more than once during any fiscal year.
   12-8                    (B)  The requirements do not apply if the county
   12-9  or local district school board solicits, but does not receive, any
  12-10  bids for conversion of engines or vehicles or replacement of
  12-11  engines or vehicles to <compressed natural gas or other>
  12-12  alternative fuels that are at or below the net projected costs of
  12-13  continued use of <traditional> conventional gasoline or diesel
  12-14  fuels measured over the expected useful life of the engine or
  12-15  vehicle.
  12-16                    (C)  The requirements do not apply if the county
  12-17  or local district school board solicits, but does not receive, any
  12-18  bids for a contract that provides for conversion or replacement, or
  12-19  both, of engines or vehicles, or both, to <compressed natural gas
  12-20  or other> alternative fuels and for the supply of <compressed
  12-21  natural gas or other> alternative fuels that is at or below the net
  12-22  projected costs of continued use of <traditional> conventional
  12-23  gasoline or diesel fuels measured over the expected useful life of
  12-24  the equipment, facilities, vehicles, and engines.  The bid
  12-25  solicitation provision does not require a board to solicit such a
   13-1  bid more than once during any three-year period.
   13-2        (e)(3)  In determining total cost-effectiveness under this
   13-3  subsection, a board may consider both the short-term and long-term
   13-4  costs to the district and other objective factors that may affect
   13-5  the capacity of the district to use <compressed natural gas or
   13-6  other> alternative fuels.  The board shall consider availability of
   13-7  state and federal funds for conversion and replacement purposes.
   13-8        (g)  County and local district school boards and the General
   13-9  Services Commission in purchasing, leasing, maintaining, or
  13-10  converting vehicles for <compressed natural gas or other>
  13-11  alternative fuels use shall comply with all applicable safety
  13-12  standards promulgated by the United States Department of
  13-13  Transportation and the Railroad Commission of Texas or their
  13-14  successor agencies.  The requirements of Subsections (c) and (d) do
  13-15  not require a district to convert any vehicle or engine to
  13-16  <compressed natural gas or other> alternative fuel if the
  13-17  conversion does not meet fuel system integrity standards as
  13-18  designed and tested by the National Highway Transportation Safety
  13-19  Administration or the Railroad Commission of Texas.
  13-20        (h)  In this section, a vehicle is considered to be capable
  13-21  of using <compressed natural gas or other> alternative fuels if the
  13-22  vehicle is capable of using <compressed natural gas or other>
  13-23  alternative fuels either in its original equipment engine or in an
  13-24  engine that has been converted to use <compressed natural gas or
  13-25  other> alternative fuels after September 1, 1991.
   14-1        SECTION 12.  Section 14(c), (d), (e), (h)(2)(A), and
   14-2  (h)(2)(B), Chapter 503, Acts of the 72nd Legislature, Regular
   14-3  Session, 1991, (Article 1118x, Vernon's Texas Civil Statutes), are
   14-4  amended to read as follows:
   14-5        Sec. 14(c)(1)  The board may not purchase or lease after
   14-6  September 1, 1991, any motor vehicle unless that vehicle is capable
   14-7  of using <compressed natural gas or other> any alternative fuel<s
   14-8  which result in comparably lower emissions of oxides of nitrogen,
   14-9  volatile organic compounds, carbon monoxide, or particulates or any
  14-10  combination thereof> as defined in Section 382.131(1) of the Texas
  14-11  Health and Safety Code.
  14-12              (2)  The authority may acquire or be provided equipment
  14-13  or refueling facilities necessary to operate such vehicles using
  14-14  <compressed natural gas or other> alternative fuels:
  14-15                    (A)  by purchase or lease as authorized by law;
  14-16                    (B)  by gift or loan of the equipment or
  14-17  facilities; or
  14-18                    (C)  by gift or loan of the equipment or
  14-19  facilities or other arrangement pursuant to a service contract for
  14-20  the supply of <compressed natural gas or other> alternative fuels.
  14-21              (3)  If such equipment or facilities are donated,
  14-22  loaned, or provided through other arrangement with the supplier of
  14-23  <compressed natural gas or other> alternative fuels, the supplier
  14-24  shall be entitled to recoup its actual cost of donating, loaning,
  14-25  or providing the equipment or facilities through its fuel charges
   15-1  under the supply contract.
   15-2              (4)  The board or, in an authority covered by
   15-3  Subsection (h) of this section, the Texas Air Control Board, may
   15-4  make exceptions to the requirements of this subsection if the board
   15-5  certifies that:
   15-6                    (A)  the authority's vehicles will be operating
   15-7  primarily in an area in which neither the authority nor the
   15-8  supplier has or can reasonably be expected to establish a central
   15-9  refueling station for <compressed natural gas or other> alternative
  15-10  fuels; or
  15-11                    (B)  the authority is unable to acquire or be
  15-12  provided equipment or refueling facilities necessary to operate
  15-13  vehicles using <compressed natural gas or other> alternative fuels
  15-14  at a projected cost that is reasonably expected to result in no
  15-15  greater net costs than the continued use of <traditional>
  15-16  conventional gasoline as defined in section 382.131(5) of the Texas
  15-17  Health and Safety Code or diesel fuels measured over the expected
  15-18  useful life of the equipment or 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
   16-4  Texas Air Control Board determines that the program has been
   16-5  effective in reducing total annual emissions from motor vehicles in
   16-6  the area, the board shall achieve a percentage of fleet vehicles
   16-7  capable of using <compressed natural gas or other> alternative
   16-8  fuels equal to or greater than 90 percent of the number of fleet
   16-9  vehicles operated 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 gas 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 <traditional>
  17-10  conventional gasoline or diesel fuels measured over the expected
  17-11  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 <traditional>
  18-24  conventional gasoline as defined in section 382.131(5) of the Texas
  18-25  Health and Safety Code or diesel fuels measured over the expected
   19-1  useful life of the equipment or facilities supplied.
   19-2        (f)(1)  An authority shall achieve the following percentages
   19-3  of vehicles capable of using <compressed natural gas or other>
   19-4  alternative fuels by the times specified:
   19-5                    (A)  the percentage shall be equal to or greater
   19-6  than 30 percent of the number of fleet vehicles operated by
   19-7  September 1, 1994; and
   19-8                    (B)  equal to or greater than 50 percent of the
   19-9  number of fleet vehicles operated by September 1, 1996.
  19-10              (2)  The Texas Air Control Board must review this
  19-11  alternative fuel use program by December 31, 1996, and, if the
  19-12  Texas Air Control Board determines that the program has been
  19-13  effective in reducing total annual emissions from motor vehicles in
  19-14  the area, the authority shall achieve a percentage of fleet
  19-15  vehicles capable of using <compressed natural gas or other>
  19-16  alternative fuels equal to or greater than 90 percent of the number
  19-17  of fleet vehicles operated by September 1, 1998, and thereafter.
  19-18              (3)  The authority must submit to the Texas Air Control
  19-19  Board an annual report by December 31 of each year showing
  19-20  purchases, leases, and conversions of motor vehicles and usage of
  19-21  <compressed natural gas or other> alternative fuels and any other
  19-22  relevant information the Texas Air Control Board may require.
  19-23        (g)  An authority in the development of the <compressed
  19-24  natural gas or other> alternative fuel use program should work with
  19-25  vehicle manufacturers and converters, fuel distributors, and others
   20-1  to delineate the vehicles to be covered, taking into consideration
   20-2  range, specialty uses, fuel availability, vehicle manufacturing and
   20-3  conversion capability, safety, resale values, and other relevant
   20-4  factors.  The authority may meet the percentage requirements of
   20-5  this section through the purchase of new vehicles or the conversion
   20-6  of existing vehicles, in accordance with federal and state
   20-7  requirements and applicable safety laws, to use the alternative
   20-8  fuels.
   20-9        (h)  The authority in purchasing, leasing, maintaining, or
  20-10  converting vehicles for <compressed natural gas or other>
  20-11  alternative fuels use shall comply with all applicable safety
  20-12  standards promulgated by the United States Department of
  20-13  Transportation and the Railroad Commission of Texas or their
  20-14  successor agencies.
  20-15        SECTION 14.  Paragraphs (1) and (4), Subsection (k), Section
  20-16  6, Chapter 1189, Acts of the 71st Legislature, Regular Session,
  20-17  1989, (Article 1118z, Vernon's Texas Civil Statutes), are amended
  20-18  to read as follows:
  20-19        Sec. 6(k)(1)  The department may not purchase or lease after
  20-20  September 1, 1991, any motor vehicle unless that vehicle is capable
  20-21  of using <compressed natural gas or other> any alternative fuel<s
  20-22  which result in comparably lower emissions of oxides of nitrogen,
  20-23  volatile organic compounds, carbon monoxide, or particulates or any
  20-24  combination thereof> as defined in Section 382.131(1) of the Texas
  20-25  Health and Safety Code.
   21-1              (2)  The department may acquire or be provided
   21-2  equipment or refueling facilities necessary to operate such
   21-3  vehicles using <compressed natural gas or other> alternative fuels:
   21-4                    (A)  by purchase or lease as authorized by law;
   21-5                    (B)  by gift or loan of the equipment or
   21-6  facilities; or
   21-7                    (C)  by gift or loan of the equipment or
   21-8  facilities or other arrangement pursuant to a service contract for
   21-9  the supply of <compressed natural gas or other> alternative fuels.
  21-10              (3)  If such equipment or facilities are donated,
  21-11  loaned, or provided through other arrangement with the supplier of
  21-12  <compressed natural gas or other> alternative fuels, the supplier
  21-13  shall be entitled to recoup its actual cost of donating, loaning,
  21-14  or providing the equipment or facilities through its fuel charges
  21-15  under the supply contract.
  21-16              (4)  A department may make exceptions to the
  21-17  requirements of this subsection if the department certifies that:
  21-18                    (A)  the department's vehicles will be operating
  21-19  primarily in an area in which neither the department nor a supplier
  21-20  has or can reasonably be expected to establish a central refueling
  21-21  station for <compressed natural gas or other> alternative fuels; or
  21-22                    (B)  the department is unable to acquire or be
  21-23  provided equipment or refueling facilities necessary to operate
  21-24  vehicles using <compressed natural gas or other> alternative fuels
  21-25  at a projected cost that is reasonably expected to result in no
   22-1  greater net costs than the continued use of <traditional>
   22-2  conventional gasoline as defined in Section 382.131(5) of the Texas
   22-3  Health and Safety Code or diesel fuels measured over the expected
   22-4  useful life of the equipment or facilities supplied.
   22-5        (l)(1)  A department shall achieve the following percentages
   22-6  of vehicles capable of using <compressed natural gas or>
   22-7  alternative fuels by the times specified:
   22-8                    (A)  the percentage shall be equal to or greater
   22-9  than 30 percent of the number of fleet vehicles operated by
  22-10  September 1, 1994; and
  22-11                    (B)  equal to or greater than 50 percent of the
  22-12  number of fleet vehicles operated by September 1, 1996.
  22-13              (2)  The Texas Air Control Board must review the
  22-14  alternative fuel use program by December 31, 1996, and, if the
  22-15  Texas Air Control Board determines that the program has been
  22-16  effective in reducing total annual emissions from motor vehicles in
  22-17  the area, departments shall achieve a percentage of fleet vehicles
  22-18  capable of using <compressed natural gas or other> alternative
  22-19  fuels equal to or greater than 90 percent of the number of fleet
  22-20  vehicles operated by September 1, 1998, and thereafter.
  22-21              (3)  The department must submit to the Texas Air
  22-22  Control Board an annual report by December 31 of each year showing
  22-23  purchases, leases, and conversions of motor vehicles and usage of
  22-24  <compressed natural gas or other> alternative fuels and any other
  22-25  relevant information the Texas Air Control Board may require.
   23-1        (m)  A department in the development of the <compressed
   23-2  natural gas or other> alternative fuel use program should work with
   23-3  vehicle manufacturers and converters, fuel distributors, and others
   23-4  to delineate the vehicles to be covered, taking into consideration
   23-5  range, specialty uses, fuels availability, vehicle manufacturing
   23-6  and conversion capability, safety, resale values, and other
   23-7  relevant factors.  Such department may meet the percentage
   23-8  requirements of this section through the purchase of new vehicles
   23-9  or the conversion of existing vehicles, in accordance with federal
  23-10  and state requirements and applicable safety laws, to use the
  23-11  alternative fuels.
  23-12        SECTION 15.  Section 3.29(a), (b)(1), (b)(4), (e)(2), and
  23-13  (h), State Purchasing and General Services Act (Article 601b,
  23-14  Vernon's Texas Civil Statutes), is amended to read as follows:
  23-15        Sec. 3.29(a)  A state agency may not purchase or lease a
  23-16  vehicle designed or used primarily for the transportation of
  23-17  persons, including a station wagon, that has a wheel base longer
  23-18  than 113 inches or that has more than 160 SAE net horsepower,
  23-19  except that the vehicle may have a wheel base of up to 116 inches
  23-20  or SAE net horsepower of up to 280 if the vehicle will be converted
  23-21  so that it is capable of using <compressed natural gas or another>
  23-22  an alternative fuel <that results in comparably lower emissions of
  23-23  oxides of nitrogen, volatile organic compounds, carbon monoxide, or
  23-24  particulates> as defined in section 382.131(1) of the Texas Health
  23-25  and Safety Code.  This exception to the wheel base and horsepower
   24-1  limitations applies to a state agency regardless of the size of the
   24-2  agency's vehicle fleet.  The wheel base and horsepower limitations
   24-3  prescribed by this subsection do not apply to the purchase or lease
   24-4  of a vehicle to be used primarily for criminal law enforcement or a
   24-5  bus, motorcycle, pickup, van, truck, three-wheel vehicle, tractor,
   24-6  or ambulance.
   24-7        (b)(1)  A state agency operating a fleet of more than 15
   24-8  vehicles, excluding law enforcement and emergency vehicles, may not
   24-9  purchase or lease after September 1, 1991, any motor vehicle unless
  24-10  that vehicle is capable of using <compressed natural gas or other>
  24-11  an alternative fuel<s which result in comparably lower emissions of
  24-12  oxides of nitrogen, volatile organic compounds, carbon monoxide, or
  24-13  particulates or any combination thereof> as defined in section
  24-14  382.131(1) of the Texas Health and Safety Code.
  24-15              (2)  A state agency may acquire or be provided
  24-16  equipment or refueling facilities necessary to operate such
  24-17  vehicles using <compressed natural gas or other> alternative fuels:
  24-18                    (A)  by purchase or lease as authorized by law;
  24-19                    (B)  by gift or loan of the equipment or
  24-20  facilities; or
  24-21                    (C)  by gift or loan of the equipment or
  24-22  facilities or other arrangement pursuant to a service contract for
  24-23  the supply of <compressed natural gas or other> alternative fuels.
  24-24              (3)  If such equipment or facilities are donated,
  24-25  loaned, or provided through other arrangement with the supplier of
   25-1  <compressed natural gas or other> an alternative fuel<s>, the
   25-2  supplier shall be entitled to recoup its actual cost of donating,
   25-3  loaning, or providing the equipment or facilities through its fuel
   25-4  charges under the supply contract.
   25-5              (4)  The commission may waive the requirements of this
   25-6  subsection for any state agency upon receipt of certification
   25-7  supported by evidence acceptable to the commission that:
   25-8                    (A)  the agency's vehicles will be operating
   25-9  primarily in an area in which neither the agency nor a supplier has
  25-10  or can reasonably be expected to establish a central refueling
  25-11  station for <compressed natural gas or other> alternative fuels; or
  25-12                    (B)  the agency is unable to acquire or be
  25-13  provided equipment or refueling facilities necessary to operate
  25-14  vehicles using <compressed natural gas or other> alternative fuels
  25-15  at a projected cost that is reasonably expected to result in no
  25-16  greater net costs than the continued use of <traditional>
  25-17  conventional gasoline or diesel fuels measured over the expected
  25-18  useful life of the equipment or facilities supplied.
  25-19        (c)(1)  Any state agency which operates a fleet of more than
  25-20  15 motor vehicles, excluding law enforcement and emergency
  25-21  vehicles, shall achieve the following percentages of vehicles
  25-22  capable of using <compressed natural gas or other> alternative
  25-23  fuels by the times specified:
  25-24                    (A)  the percentage shall be equal to or greater
  25-25  than 30 percent of the number of fleet vehicles operated by
   26-1  September 1, 1994; and
   26-2                    (B)  equal to or greater than 50 percent of the
   26-3  number of fleet vehicles operated by September 1, 1996.
   26-4              (2)  The Texas <Air Control Board> Natural Resource
   26-5  Conservation Commission must review this alternative fuel use
   26-6  program by December 31, 1996, and, if the Texas <Air Control Board>
   26-7  Natural Resource Conservation Commission determines that the
   26-8  program has been effective in reducing total annual emissions from
   26-9  motor vehicles in the area, state agencies operating fleets of more
  26-10  than 15 motor vehicles shall achieve a percentage of fleet vehicles
  26-11  capable of using <compressed natural gas or other> alternative
  26-12  fuels equal to or greater than 90 percent of the number of fleet
  26-13  vehicles operated by September 1, 1998, and thereafter.
  26-14              (3)  The commission shall support the Texas <Air
  26-15  Control Board> Natural Resource Conservation Commission in
  26-16  collecting reasonable information needed to determine the air
  26-17  quality benefits from use of alternative fuels at affected
  26-18  agencies.
  26-19              (4)  Each state agency in its annual financial report
  26-20  to the legislature must show its progress in achieving these
  26-21  percentage requirements by itemizing purchases, leases, and
  26-22  conversions of motor vehicles and usage of <compressed natural gas
  26-23  or other> alternative fuels.
  26-24        (d)  The commission, in the development of the <compressed
  26-25  natural gas or other> alternative fuels use program, should work
   27-1  with state agency fleet operators, vehicle manufacturers and
   27-2  converters, fuel distributors, and others to delineate the vehicles
   27-3  to be covered, taking into consideration range, specialty uses,
   27-4  fuel availability, vehicle manufacturing and conversion capability,
   27-5  safety, resale values, and other relevant factors.  State agencies
   27-6  may meet the percentage requirements of this section through
   27-7  purchase of new vehicles or the conversion of existing vehicles, in
   27-8  accordance with federal and state requirements and applicable
   27-9  safety laws, to use the alternative fuels.
  27-10        (e)  The commission may reduce any percentage specified or
  27-11  waive the requirements of Subsection (c) of this section for any
  27-12  state agency upon receipt of certification supported by evidence
  27-13  acceptable to the commission that:
  27-14              (1)  the agency's vehicles will be operating primarily
  27-15  in an area in which neither the agency nor a supplier has or can
  27-16  reasonably be expected to establish a central refueling station for
  27-17  <compressed natural gas or other> alternative fuels; or
  27-18              (2)  the agency is unable to acquire or be provided
  27-19  equipment or refueling facilities necessary to operate vehicles
  27-20  using <compressed natural gas or other> alternative fuels at a
  27-21  projected cost that is reasonably expected to result in no greater
  27-22  net costs than the continued use of <traditional> conventional
  27-23  gasoline or diesel fuels measured over the expected useful life of
  27-24  the equipment or facilities supplied.
  27-25        (f)  The commission in purchasing, leasing, maintaining, or
   28-1  converting vehicles for <compressed natural gas or other>
   28-2  alternative fuels use shall comply with all applicable safety
   28-3  standards promulgated by the United States Department of
   28-4  Transportation and the Railroad Commission of Texas or their
   28-5  successor agencies.
   28-6        (g)  In this section, a vehicle is considered to be capable
   28-7  of using <compressed natural gas or other> an alternative fuel<s>
   28-8  if the vehicle is capable of using <compressed natural gas or
   28-9  other> an alternative fuel<s> either in its original equipment
  28-10  engine or in an engine that has been converted to use <compressed
  28-11  natural gas or other> an alternative fuel<s> after September 1,
  28-12  1991, unless the time for compliance is extended pursuant to
  28-13  Subsection (h) of this section.
  28-14        (h)  The commission may extend the date by which a vehicle
  28-15  powered by a <traditional> conventional gasoline or diesel engine
  28-16  shall be capable of using <compressed natural gas or other> an
  28-17  alternative fuel<s> as required under this section for one or more
  28-18  periods of 90 days, but not beyond September 1, 1992, if it finds a
  28-19  lack of ability to acquire such vehicles with original alternative
  28-20  fuels equipment, to acquire such vehicles which are able to be
  28-21  converted, or to convert such vehicles to use <compressed natural
  28-22  gas or other> alternative fuels.
  28-23        SECTION 16.  This Act takes effect September 1, 1995.
  28-24        SECTION 17.  The importance of this legislation and the
  28-25  crowded condition of the calendars in both houses create an
   29-1  emergency and an imperative public necessity that the
   29-2  constitutional rule requiring bills to be read on three several
   29-3  days in each house be suspended, and this rule is hereby suspended.