1-1  By:  Armbrister                                        S.B. No. 200
    1-2        (In the Senate - Filed January 12, 1995; January 18, 1995,
    1-3  read first time and referred to Committee on State Affairs;
    1-4  February 14, 1995, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 12, Nays 0;
    1-6  February 14, 1995, sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 200               By:  Armbrister
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the alternative fuels program.
   1-11        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-12        SECTION 1.  Section 382.131, Health and Safety Code, is
   1-13  amended to read as follows:
   1-14        Sec. 382.131.  DEFINITIONS.  In this subchapter:
   1-15              (1)  "Alternative fuel" means any fuel or power source
   1-16  that, when used in a clean-fuel vehicle, allows the vehicle to
   1-17  comply with the standards and requirements of Part C, Subchapter
   1-18  II, of the federal Clean Air Act, as amended (42 U.S.C.  Section
   1-19  7581 et seq.).  The term includes:
   1-20                    (A)  methanol, ethanol, or other alcohols;
   1-21                    (B)  a mixture of alcohol and another fuel that
   1-22  contains 85 percent or more of alcohol by volume;
   1-23                    (C)  reformulated gasoline;
   1-24                    (D)  diesel fuel;
   1-25                    (E)  natural gas;
   1-26                    (F)  liquefied petroleum gas;
   1-27                    (G)  hydrogen; and
   1-28                    (H)  electricity.
   1-29              (2)  "Capable of being centrally fueled" means a fleet
   1-30  or that part of a fleet consisting of vehicles that could be
   1-31  refueled 100 percent of the time at a location that is owned,
   1-32  operated, or controlled by the fleet operator or is under contract
   1-33  with the fleet operator.  The fact that one or more vehicles in a
   1-34  fleet are not centrally fueled does not exempt an entire fleet from
   1-35  the program.
   1-36              (3)  "Centrally fueled" means a fleet or that part of a
   1-37  fleet consisting of vehicles that are refueled 100 percent of the
   1-38  time at a location that is owned, operated, or controlled by the
   1-39  fleet operator or is under contract with the fleet operator.  The
   1-40  fact that one or more vehicles in a fleet are not centrally fueled
   1-41  does not exempt an entire fleet from the program.  The term does
   1-42  not include retail credit card purchases or commercial fleet
   1-43  service cards.
   1-44              (4)  "Clean-fuel vehicle" means a vehicle in a class or
   1-45  category of vehicles that has been certified to meet for any model
   1-46  year:
   1-47                    (A)  the clean-fuel vehicle standards applicable
   1-48  under Part C, Subchapter II, of the federal Clean Air Act, as
   1-49  amended (42 U.S.C. Section 7581 et seq.); and
   1-50                    (B)  emission limits at least as stringent as the
   1-51  applicable low-emission vehicle standards for the clean-fuel fleet
   1-52  program under 40 C.F.R.  Sections 88.104-94 and 88.105-94 as
   1-53  published in the September 30, 1994, Federal Register.
   1-54              (5)  "Conventional gasoline" means any gasoline that
   1-55  does not meet specifications set by a certification under Section
   1-56  211(k) of the federal Clean Air Act, as amended (42 U.S.C. Section
   1-57  7545(k)).
   1-58              (6)  "Emissions" means emissions of oxides of nitrogen,
   1-59  volatile organic compounds, carbon monoxide, particulates, or any
   1-60  combination of those substances.
   1-61              (7) <(2)>  "Fleet vehicle" means a vehicle required to
   1-62  be registered under Chapter 88, General Laws, Acts of the 41st
   1-63  Legislature, 2nd Called Session, 1929 (Article 6675a-2, Vernon's
   1-64  Texas Civil Statutes), and that is centrally fueled or capable of
   1-65  being centrally fueled.  The term does not include:
   1-66                    (A)  a fleet vehicle that, when not in use, is
   1-67  normally parked at the residence of the individual who usually
   1-68  operates it, unless the vehicle is, in fact, centrally fueled; or
    2-1                    (B)  a fleet vehicle that has a gross vehicle
    2-2  weight rating of greater than 26,000 pounds.
    2-3              (8) <(3)>  "Mass transit authority" means a
    2-4  transportation or transit authority or department established under
    2-5  Chapter 141, Acts of the 63rd Legislature, Regular Session, 1973
    2-6  (Article 1118x, Vernon's Texas Civil Statutes), Chapter 683, Acts
    2-7  of the 66th Legislature, Regular Session, 1979 (Article 1118y,
    2-8  Vernon's Texas Civil Statutes), or Article 1118z, Revised Statutes,
    2-9  that operates a mass transit system under any of those laws.
   2-10              (9)  "Reformulated gasoline" means gasoline that has
   2-11  been certified as a reformulated gasoline under the federal
   2-12  certification regulations adopted in accordance with Section 211(k)
   2-13  of the federal Clean Air Act, as amended (42 U.S.C. Section
   2-14  7545(k)).
   2-15        SECTION 2.  Section 382.133, Health and Safety Code, is
   2-16  amended to read as follows:
   2-17        Sec. 382.133.  Mass Transit Fleet Vehicles.  (a)  The board
   2-18  by rule shall require a mass transit authority to ensure that its
   2-19  vehicles can operate on <compressed natural gas or other>
   2-20  alternative fuels <that result in comparably lower emissions>.
   2-21        (b)  Rules adopted under this section must require a mass
   2-22  transit authority to have its fleet vehicles able to operate on an
   2-23  <compressed natural gas or other> alternative fuel according to the
   2-24  following schedule:
   2-25              (1)  not later than September 1, 1994, at least 30
   2-26  percent of the vehicles; and
   2-27              (2)  not later than September 1, 1996, at least 50
   2-28  percent of the vehicles.
   2-29        (c)  Contingent on the board's review, not later than
   2-30  December 31, 1996, of the alternative fuels program established by
   2-31  this section and the board's determination that the program is
   2-32  reducing emissions, is projected to be effective in improving
   2-33  overall air quality, and is necessary to the attainment of federal
   2-34  ambient air quality standards in the affected areas, the rules must
   2-35  require a mass transit authority, not later than September 1, 1998,
   2-36  to have at least 90 percent of its fleet vehicles able to operate
   2-37  on an <compressed natural gas or other> alternative fuel.
   2-38        SECTION 3.  Section 382.134, Health and Safety Code, is
   2-39  amended to read as follows:
   2-40        Sec. 382.134.  Local Government and Private Fleet Vehicles.
   2-41  (a)  This section applies only to:
   2-42              (1)  a local government that operates primarily in an
   2-43  affected area a fleet of more than 15 vehicles, excluding law
   2-44  enforcement and emergency vehicles; and
   2-45              (2)  a private person that operates primarily in an
   2-46  affected area a fleet of more than 25 fleet vehicles, excluding
   2-47  emergency vehicles.
   2-48        (b)  If the board determines under Section 382.133 that the
   2-49  alternative fuels program is reducing emissions, is projected to be
   2-50  effective in improving overall air quality, and is necessary to
   2-51  comply with federal ambient air quality standards for ozone, carbon
   2-52  monoxide, oxides of nitrogen, or particulates in the affected
   2-53  areas, the board by rule shall require a local government or a
   2-54  private person to ensure that its fleet vehicles can operate on an
   2-55  <compressed natural gas or other> alternative fuel <fuels that
   2-56  reduce total annual emissions from motor vehicles in the area>.
   2-57        (c)  Rules adopted by the board <under this section> must
   2-58  require a local government or private person to have a proportion
   2-59  of the person's newly purchased <its> fleet vehicles able to
   2-60  operate on an <compressed natural gas or other> alternative fuel
   2-61  according to the following schedule:
   2-62              (1)  30 percent of fleet vehicles purchased after <not
   2-63  later than> September 1, 1998<, at least 30 percent of the
   2-64  vehicles>;
   2-65              (2)  50 percent of fleet vehicles purchased after <not
   2-66  later than> September 1, 2000<, at least 50 percent of the
   2-67  vehicles>; and
   2-68              (3)  90 percent of fleet vehicles purchased after <not
   2-69  later than> September 1, 2002<, at least 90 percent of the
   2-70  vehicles>.
    3-1        (d)  Rules adopted by the board may not require a local
    3-2  government or private person to purchase a fleet vehicle able to
    3-3  operate on an alternative fuel if the person maintains a proportion
    3-4  of 90 percent or more alternative fuel vehicles in the person's
    3-5  fleet.
    3-6        (e)  For the purposes of Subsection (c) requirements, the
    3-7  conversion of a gasoline-fueled or diesel-fueled fleet vehicle,
    3-8  whether previously acquired or newly purchased, to a clean-fuel
    3-9  vehicle shall be treated as a purchase.  The choice of clean-fuel
   3-10  vehicles and alternative fuels is in the fleet operator's
   3-11  discretion.
   3-12        (f)  This section does not require a person to purchase a
   3-13  converted vehicle or to convert a previously acquired or newly
   3-14  purchased gasoline-fueled or diesel-fueled vehicle to a clean-fuel
   3-15  vehicle if clean-fuel vehicles are not available from original
   3-16  equipment manufacturers.
   3-17        SECTION 4.  Section 382.135, Health and Safety Code, is
   3-18  amended to read as follows:
   3-19        Sec. 382.135.  Dual Fuel Conversion.  The percentage
   3-20  requirements of Sections 382.133 and 382.134 may be met by the dual
   3-21  fuel conversion or capability of conventional gasoline-powered or
   3-22  diesel-powered vehicles to operate also on an <compressed natural
   3-23  gas or other> alternative fuel <fuels that result in comparably
   3-24  lower emissions>.
   3-25        SECTION 5.  Subsection (a), Section 382.136, Health and
   3-26  Safety Code, is amended to read as follows:
   3-27        (a)  The board may make exceptions to rules adopted under
   3-28  Sections 382.133 and 382.134 if:
   3-29              (1)  a firm engaged in fixed price contracts with
   3-30  public works agencies can demonstrate that compliance with the
   3-31  requirements of those sections would result in substantial economic
   3-32  harm to the firm under a contract entered into before September 1,
   3-33  1997;
   3-34              (2)  the board determines that the affected vehicles
   3-35  will be operating primarily in an area that does not have or cannot
   3-36  reasonably be expected to establish a central refueling station for
   3-37  alternative fuels; or
   3-38              (3)  the affected entity is unable to secure financing
   3-39  provided by or arranged through the proposed supplier or suppliers
   3-40  of <compressed natural gas or other> alternative fuels sufficient
   3-41  to cover the additional costs of alternative fueling.
   3-42        SECTION 6.  Subsections (a) and (b), Section 382.138, Health
   3-43  and Safety Code, are amended to read as follows:
   3-44        (a)  In conjunction with the development of state
   3-45  implementation plans for achieving and maintaining compliance with
   3-46  federal ambient air quality standards under the federal Clean Air
   3-47  Act (42 U.S.C. Section 7401 et seq.), the board shall evaluate and
   3-48  determine, for areas required by federal law to have state
   3-49  implementation plans, the effectiveness of and need for the use of
   3-50  <compressed natural gas and other> alternative fuels in vehicles.
   3-51        (b)  The evaluation and determination must include:
   3-52              (1)  the uses of <compressed natural gas or other>
   3-53  alternative fuels required by Sections 382.133 and 382.134; and
   3-54              (2)  additional or different uses of <compressed
   3-55  natural gas or other> alternative fuels.
   3-56        SECTION 7.  Section 382.139, Health and Safety Code, is
   3-57  amended to read as follows:
   3-58        Sec. 382.139.  Additional Alternative Fuels Use.  (a)  If,
   3-59  after considering the factors listed in Section 382.138, the board
   3-60  determines that the use of <compressed natural gas or other>
   3-61  alternative fuels for certain categories of motor vehicles is
   3-62  effective and necessary for achieving and maintaining compliance
   3-63  with federal ambient air quality standards, the board by rule shall
   3-64  require those uses in addition to uses required elsewhere in this
   3-65  subchapter.
   3-66        (b)  If, after considering the factors listed in Section
   3-67  382.138, the board determines that the additional uses are
   3-68  appropriate, the board may establish and implement programs
   3-69  encouraging the use of <compressed natural gas or other>
   3-70  alternative fuels for certain categories of vehicles.
    4-1        SECTION 8.  Subsection (a), Section 382.140, Health and
    4-2  Safety Code, is amended to read as follows:
    4-3        (a)  In connection with the evaluations and determinations
    4-4  required under Section 382.138 and encouraging the use of <natural
    4-5  gas or other> alternative fuels, the board may conduct or have
    4-6  conducted appropriate studies or pilot programs.
    4-7        SECTION 9.  Section 382.141, Health and Safety Code, is
    4-8  amended to read as follows:
    4-9        Sec. 382.141.  Report Required.  The board shall report
   4-10  biennially its evaluations and determinations on the use of
   4-11  <compressed natural gas or other> alternative fuels and recommend
   4-12  legislative changes necessary to implement an effective and
   4-13  feasible program for the use of <compressed natural gas and other>
   4-14  alternative fuels.  The report shall be submitted to the governor
   4-15  and the legislature not later than the 30th day before the
   4-16  commencement of each regular legislative session.
   4-17        SECTION 10.  Subchapter F, Chapter 382, Health and Safety
   4-18  Code, is amended by adding Section 382.142 to read as follows:
   4-19        Sec. 382.142.  EMISSION REDUCTION CREDITS.  (a)  The
   4-20  commission by rule shall provide for a person subject to a rule
   4-21  adopted under Section 382.133 or 382.134 to meet those requirements
   4-22  by trading or banking emission reduction credits.
   4-23        (b)  The commission by rule shall provide for emission
   4-24  reduction credits to be issued to a fleet operator for the purchase
   4-25  of:
   4-26              (1)  a clean-fuel vehicle before applicable program
   4-27  requirements under Section 382.133 or 382.134 take effect;
   4-28              (2)  a clean-fuel vehicle that meets standards more
   4-29  stringent than those under this subchapter;
   4-30              (3)  a greater percentage of clean-fuel vehicles than
   4-31  required under Section 382.133 or 382.134; or
   4-32              (4)  a clean-fuel vehicle in a category not required by
   4-33  this subchapter.
   4-34        (c)  Emission reduction credits issued for the purchase of a
   4-35  clean-fuel vehicle must reflect the level of emission reduction the
   4-36  vehicle achieves.
   4-37        (d)  Emission reduction credits issued under this section may
   4-38  be traded, sold, purchased, or banked for use by any person to
   4-39  demonstrate compliance with the percentage requirements of Section
   4-40  382.133 or 382.134 or with any other air pollutant emission
   4-41  reduction required by law within the same air quality nonattainment
   4-42  area as designated within the meaning of Section 107(d) of the
   4-43  federal Clean Air Act, as amended (42 U.S.C. Section 7407).  An
   4-44  emission reduction credit issued under this section may be used as
   4-45  provided by law for an area emission reduction credit organization
   4-46  under Chapter 384.
   4-47        (e)  The commission shall adopt rules to implement this
   4-48  section.
   4-49        SECTION 11.  Section 21.174, Education Code, is amended by
   4-50  amending Subsections (c), (d), (e), (g), and (h) and by adding
   4-51  Subsection (i) to read as follows:
   4-52        (c)(1)  Except as provided in Subsections (e) and (f), a <no>
   4-53  county or local district school board may not purchase or lease or
   4-54  authorize the purchase or lease after September 1, 1993, of a <any>
   4-55  motor vehicle used for transporting school children for any county
   4-56  or local school district operating more than 50 such vehicles
   4-57  unless that vehicle is capable of using an <compressed natural gas
   4-58  or other> alternative fuel <fuels which result in comparably lower
   4-59  emissions of oxides of nitrogen, volatile organic compounds, carbon
   4-60  monoxide, or particulates or any combination thereof>.
   4-61              (2)  A county or local district school board may
   4-62  acquire or be provided equipment or refueling facilities necessary
   4-63  to operate such vehicles using <compressed natural gas or other>
   4-64  alternative fuels:
   4-65                    (A)  by purchase or lease as authorized by law;
   4-66                    (B)  by gift or loan of the equipment or
   4-67  facilities; or
   4-68                    (C)  by gift or loan of the equipment or
   4-69  facilities or other arrangement pursuant to a service contract for
   4-70  the supply of <compressed natural gas or other> alternative fuels.
    5-1              (3)  If such equipment or facilities are donated,
    5-2  loaned, or provided through other arrangement with the supplier of
    5-3  <compressed natural gas or other> alternative fuels, the supplier
    5-4  shall be entitled to recoup its actual cost of donating, loaning,
    5-5  or providing the equipment or facilities through its fuel charges
    5-6  under the supply contract.
    5-7        (d)(1)  Any county or local district school board which
    5-8  operates a fleet of more than 50 motor vehicles used for
    5-9  transporting school children shall ensure that:
   5-10                    (A)  not less than 50 percent of its fleet is
   5-11  capable of using <compressed natural gas or other> alternative fuel
   5-12  not later than the earlier of September 1, 1997, or four years from
   5-13  the date the fleet exceeds 50 vehicles; and
   5-14                    (B)  not less than 90 percent of its fleet is
   5-15  capable of using <compressed natural gas or other> alternative fuel
   5-16  not later than September 1, 2001.
   5-17              (2)  A school district may meet the fleet composition
   5-18  requirements by converting new or existing vehicles to alternative
   5-19  fuel, by replacing existing vehicle engines with alternative fuel
   5-20  engines, or by purchasing new alternative fuel vehicles.
   5-21              (3)  School districts that achieve a fleet composition
   5-22  of 30 percent or more alternative fuel vehicles by September 1,
   5-23  1994, have priority to receive appropriated or other funds
   5-24  available for the purpose of fleet conversion to alternative fuel.
   5-25        (e)(1)  The requirements of Subsections (c) and (d) do not
   5-26  apply to any school district if the county or local district school
   5-27  board acts in accordance with Paragraph (A), (B), or (C).
   5-28                    (A)  The requirements do not apply if the county
   5-29  or local district school board solicits, but does not receive, any
   5-30  bids for service contracts for the supply of <compressed natural
   5-31  gas or other> alternative fuels that are at or below the net
   5-32  projected costs of continued use of conventional <traditional>
   5-33  gasoline or diesel fuels, measured over the expected useful life of
   5-34  the equipment or facilities supplied.  The bid solicitation
   5-35  provision does not require any board to solicit a bid for service
   5-36  contracts more than once during any fiscal year.
   5-37                    (B)  The requirements do not apply if the county
   5-38  or local district school board solicits, but does not receive, any
   5-39  bids for conversion of engines or vehicles or replacement of
   5-40  engines or vehicles to <compressed natural gas or other>
   5-41  alternative fuels that are at or below the net projected costs of
   5-42  continued use of conventional <traditional> gasoline or diesel
   5-43  fuels, measured over the expected useful life of the engine or
   5-44  vehicle.
   5-45                    (C)  The requirements do not apply if the county
   5-46  or local district school board solicits, but does not receive, any
   5-47  bids for a contract that provides for conversion or replacement, or
   5-48  both, of engines or vehicles, or both, to <compressed natural gas
   5-49  or other> alternative fuel and for the supply of <compressed
   5-50  natural gas or other> alternative fuels that is at or below the net
   5-51  projected costs of continued use of conventional <traditional>
   5-52  gasoline or diesel fuels, measured over the expected useful life of
   5-53  the equipment, facilities, vehicles, and engines.  The bid
   5-54  solicitation provision does not require a board to solicit such a
   5-55  bid more than once during any three-year period.
   5-56              (2)  A person making a bid or submitting a proposal in
   5-57  response to a solicitation made in compliance with this subsection
   5-58  has the burden to provide the school board the information on total
   5-59  cost-effectiveness of the bid, including, if applicable, the cost
   5-60  of new warranties for vehicle or engine conversion and insurance
   5-61  costs.
   5-62              (3)  In determining total cost-effectiveness under this
   5-63  subsection, a board may consider both the short-term and long-term
   5-64  costs to the district and other objective factors that may affect
   5-65  the capacity of the district to use <compressed natural gas or
   5-66  other> alternative fuels.  The board shall consider availability of
   5-67  state and federal funds for conversion and replacement purposes.
   5-68        (g)  County and local district school boards and the General
   5-69  Services Commission in purchasing, leasing, maintaining, or
   5-70  converting vehicles for <compressed natural gas or other>
    6-1  alternative fuels use shall comply with all applicable safety
    6-2  standards promulgated by the United  States Department of
    6-3  Transportation and the Railroad Commission of Texas or their
    6-4  successor agencies.  The requirements of Subsections (c) and (d) do
    6-5  not require a district to convert any vehicle or engine to
    6-6  <compressed natural gas or other> alternative fuel if the
    6-7  conversion does not meet fuel system integrity standards as
    6-8  designed and tested by the National Highway Transportation Safety
    6-9  Administration or the Railroad Commission of Texas.
   6-10        (h)  In this section, a vehicle is considered to be capable
   6-11  of using an <compressed natural gas or other> alternative
   6-12  fuel <fuels> if the vehicle is capable of using an <compressed
   6-13  natural gas or other> alternative fuel <fuels> either in its
   6-14  original equipment engine or in an engine that has been converted
   6-15  to use an <compressed natural gas or other> alternative
   6-16  fuel <fuels> after September 1, 1991.
   6-17        (i)  In this section, "alternative fuel" and "conventional
   6-18  gasoline" have the meanings assigned by Section 382.131, Health and
   6-19  Safety Code.
   6-20        SECTION 12.  Subsection (c), Section 14, Chapter 141, Acts of
   6-21  the 63rd Legislature, Regular Session, 1973 (Article 1118x,
   6-22  Vernon's Texas Civil Statutes), as added by Section 8, Chapter
   6-23  1189, Acts of the 71st Legislature, Regular Session, 1989, and
   6-24  amended by Section 13, Chapter 503, Acts of the 72nd Legislature,
   6-25  Regular Session, 1991, is amended to read as follows:
   6-26        (c)(1)  The board may not purchase or lease after September
   6-27  1, 1991, any motor vehicle unless that vehicle is capable of using
   6-28  an <compressed natural gas or other> alternative fuel <fuels which
   6-29  result in comparably lower emissions of oxides of nitrogen,
   6-30  volatile organic compounds, carbon monoxide, or particulates or any
   6-31  combination thereof>.
   6-32              (2)  The authority may acquire or be provided equipment
   6-33  or refueling facilities necessary to operate such vehicles using
   6-34  <compressed natural gas or other> alternative fuel <fuels>:
   6-35                    (A)  by purchase or lease as authorized by law;
   6-36                    (B)  by gift or loan of the equipment or
   6-37  facilities; or
   6-38                    (C)  by gift or loan of the equipment or
   6-39  facilities or other arrangement pursuant to a service contract for
   6-40  the supply of <compressed natural gas or other> alternative fuel
   6-41  <fuels>.
   6-42              (3)  If such equipment or facilities are donated,
   6-43  loaned, or provided through other arrangement with the supplier of
   6-44  <compressed natural gas or other> alternative fuel <fuels>, the
   6-45  supplier shall be entitled to recoup its actual cost of donating,
   6-46  loaning, or providing the equipment or facilities through its fuel
   6-47  charges under the supply contract.
   6-48              (4)  The board or, in an authority covered by
   6-49  Subsection (h) of this section, the Texas Natural Resource
   6-50  Conservation Commission <Air Control Board>, may make exceptions to
   6-51  the requirements of this subsection if the board certifies that:
   6-52                    (A)  the authority's vehicles will be operating
   6-53  primarily in an area in which neither the authority nor a supplier
   6-54  has or can reasonably be expected to establish a central refueling
   6-55  station for <compressed natural gas or other> alternative fuels; or
   6-56                    (B)  the authority is unable to acquire or be
   6-57  provided equipment or refueling facilities necessary to operate
   6-58  vehicles using <compressed natural gas or other> alternative fuels
   6-59  at a projected cost that is reasonably expected to result in no
   6-60  greater net costs than the continued use of conventional
   6-61  <traditional> gasoline or diesel fuels, measured over the expected
   6-62  useful life of the equipment or facilities supplied.
   6-63        SECTION 13.  Section 14, Chapter 141, Acts of the 63rd
   6-64  Legislature, Regular Session, 1973 (Article 1118x, Vernon's Texas
   6-65  Civil Statutes), is amended by amending Subsections (d), (e), (g),
   6-66  and (h) and by adding Subsection (i) to read as follows:
   6-67        (d)(1)  The board shall achieve the following percentages of
   6-68  vehicles capable of using <compressed natural gas or other>
   6-69  alternative fuels by the times specified:
   6-70                    (A)  the percentage shall be equal to or greater
    7-1  than 30 percent of the number of fleet vehicles operated in 1994;
    7-2  and
    7-3                    (B)  equal to or greater than 50 percent of the
    7-4  number of fleet vehicles operated by September 1, 1996.
    7-5              (2)  The Texas Natural Resource Conservation Commission
    7-6  <Air Control Board> must review this alternative fuel use program
    7-7  by December 31, 1996, and, if the Texas Natural Resource
    7-8  Conservation Commission <Air Control Board> determines that the
    7-9  program has been effective in reducing total annual emissions from
   7-10  motor vehicles in the area, the board shall achieve a percentage of
   7-11  fleet vehicles capable of using <compressed natural gas or other>
   7-12  alternative fuels equal to or greater than 90 percent of the number
   7-13  of fleet vehicles operated by September 1, 1998, and thereafter.
   7-14              (3)  The board must submit to the Texas Natural
   7-15  Resource Conservation Commission <Air Control Board> an annual
   7-16  report by December 31 of each year showing purchases, leases, and
   7-17  conversions of motor vehicles and usage of <compressed natural gas
   7-18  or other> alternative fuels and any other relevant information the
   7-19  Texas Natural Resource Conservation Commission <Air Control Board>
   7-20  may require.
   7-21        (e)  The board in the development of the <compressed natural
   7-22  gas or other> alternative fuel use program should work with vehicle
   7-23  manufacturers and converters, fuel distributors, and others to
   7-24  delineate the vehicles to be covered, taking into consideration
   7-25  range, specialty uses, fuel availability, vehicle manufacturing and
   7-26  conversion capability, safety, resale values, and other relevant
   7-27  factors.  The board may meet the percentage requirements of this
   7-28  section through purchase of new vehicles or the conversion of
   7-29  existing vehicles, in accordance with federal and state
   7-30  requirements and applicable safety laws, to use <such> alternative
   7-31  fuels.
   7-32        (g)  The Texas Natural Resource Conservation Commission <Air
   7-33  Control Board> may require reasonable reporting from any board to
   7-34  document the air quality benefits from alternative fuel use
   7-35  programs.
   7-36        (h)(1)  This subsection applies only to an authority
   7-37  confirmed at a tax election before July 1, 1985, and in which the
   7-38  principal city has a population of less than 750,000, according to
   7-39  the most recent federal census.
   7-40              (2)  The Texas Natural Resource Conservation Commission
   7-41  <Air Control Board> may reduce any percentage specified by, or
   7-42  waive the requirements of, Subsection (d) of this section for an
   7-43  authority on receipt of certification supported by evidence
   7-44  acceptable to the Texas Natural Resource Conservation Commission
   7-45  <Air Control Board> that:
   7-46                    (A)  the authority's vehicles will be operating
   7-47  primarily in an area in which neither the authority nor a supplier
   7-48  has or can reasonably be expected to establish a central refueling
   7-49  station for <compressed natural gas or other> alternative fuels; or
   7-50                    (B)  the authority is unable to acquire or be
   7-51  provided equipment or refueling facilities necessary to operate
   7-52  vehicles using <compressed natural gas or other> alternative fuels
   7-53  at a projected cost that is reasonably expected to result in no
   7-54  greater net costs than the continued use of conventional
   7-55  <traditional> gasoline or diesel fuels, measured over the expected
   7-56  useful life of the equipment or facilities supplied.
   7-57              (3)  The Texas Natural Resource Conservation Commission
   7-58  <Air Control Board> shall develop rules for the certification
   7-59  process, including provisions requiring the authority to hold a
   7-60  public meeting and develop an alternative implementation schedule
   7-61  for meeting the percentages provided by Subsection (d) of this
   7-62  section before applying to the Texas Natural Resource Conservation
   7-63  Commission <Air Control Board> for a reduction or waiver of those
   7-64  requirements.
   7-65        (i)  In this section, "alternative fuel" and "conventional
   7-66  gasoline" have the meanings assigned by Section 382.131, Health and
   7-67  Safety Code.
   7-68        SECTION 14.  Section 20, Chapter 683, Acts of the 66th
   7-69  Legislature, 1979 (Article 1118y, Vernon's Texas Civil Statutes),
   7-70  is amended by amending Subsections (e), (f), (g), and (h) and by
    8-1  adding Subsection (k) to read as follows:
    8-2        (e)(1)  An authority may not purchase or lease after
    8-3  September 1, 1991, any motor vehicle unless that vehicle is capable
    8-4  of using an <compressed natural gas or other> alternative fuel
    8-5  <fuels which result in comparably lower emissions of oxides of
    8-6  nitrogen, volatile organic compounds, carbon monoxide, or
    8-7  particulates or any combination thereof>.
    8-8              (2)  An authority may acquire or be provided equipment
    8-9  or refueling facilities necessary to operate <such> vehicles using
   8-10  an <compressed natural gas or other> alternative fuel <fuels>:
   8-11                    (A)  by purchase or lease as authorized by law;
   8-12                    (B)  by gift or loan of the equipment or
   8-13  facilities; or
   8-14                    (C)  by gift or loan of the equipment or
   8-15  facilities or other arrangement pursuant to a service contract for
   8-16  the supply of <compressed natural gas or other> alternative fuels.
   8-17              (3)  If such equipment or facilities are donated,
   8-18  loaned, or provided through other arrangement with the supplier of
   8-19  <compressed natural gas or other> alternative fuels, the supplier
   8-20  shall be entitled to recoup its actual cost of donating, loaning,
   8-21  or providing the equipment or facilities through its fuel charges
   8-22  under the supply contract.
   8-23              (4)  An authority may make exceptions to the
   8-24  requirements of this subsection if the authority certifies that:
   8-25                    (A)  the authority's vehicles will be operating
   8-26  primarily in an area in which neither the authority nor a supplier
   8-27  has or can reasonably be expected to establish a central refueling
   8-28  station for <compressed natural gas or other> alternative fuels; or
   8-29                    (B)  the authority is unable to acquire or be
   8-30  provided equipment or refueling facilities necessary to operate
   8-31  vehicles using <compressed natural gas or other> alternative fuels
   8-32  at a projected cost that is reasonably expected to result in no
   8-33  greater net costs than the continued use of conventional
   8-34  <traditional> gasoline or diesel fuels, measured over the expected
   8-35  useful life of the equipment or facilities supplied.
   8-36        (f)(1)  An authority shall achieve the following percentages
   8-37  of vehicles capable of using <compressed natural gas or other>
   8-38  alternative fuels by the times specified:
   8-39                    (A)  the percentage shall be equal to or greater
   8-40  than 30 percent of the number of fleet vehicles operated by
   8-41  September 1, 1994; and
   8-42                    (B)  equal to or greater than 50 percent of the
   8-43  number of fleet vehicles operated by September 1, 1996.
   8-44              (2)  The Texas Natural Resource Conservation Commission
   8-45  <Air Control Board> must review this alternative fuel use program
   8-46  by December 31, 1996, and, if the Texas Natural Resource
   8-47  Conservation Commission <Air Control Board> determines that the
   8-48  program has been effective in reducing total annual emissions from
   8-49  motor vehicles in the area, the authority shall achieve a
   8-50  percentage of fleet vehicles capable of using <compressed natural
   8-51  gas or other> alternative fuels equal to or greater than 90 percent
   8-52  of the number of fleet vehicles operated by September 1, 1998, and
   8-53  thereafter.
   8-54              (3)  The authority must submit to the Texas Natural
   8-55  Resource Conservation Commission <Air Control Board> an annual
   8-56  report by December 31 of each year showing purchases, leases, and
   8-57  conversions of motor vehicles and usage of <compressed natural gas
   8-58  or other> alternative fuels and any other relevant information the
   8-59  Texas Natural Resource Conservation Commission <Air Control Board>
   8-60  may require.
   8-61        (g)  An authority in the development of the <compressed
   8-62  natural gas or other> alternative fuel use program should work with
   8-63  vehicle manufacturers and converters, fuel distributors, and others
   8-64  to delineate the vehicles to be covered, taking into consideration
   8-65  range, specialty uses, fuel availability, vehicle manufacturing and
   8-66  conversion capability, safety, resale values, and other relevant
   8-67  factors.  The authority may meet the percentage requirements of
   8-68  this section through the purchase of new vehicles or the conversion
   8-69  of existing vehicles, in accordance with federal and state
   8-70  requirements and applicable safety laws, to use the alternative
    9-1  fuels.
    9-2        (h)  The authority in purchasing, leasing, maintaining, or
    9-3  converting vehicles for <compressed natural gas or other>
    9-4  alternative fuel <fuels> use shall comply with all applicable
    9-5  safety standards promulgated by the United States Department of
    9-6  Transportation and the Railroad Commission of Texas or their
    9-7  successor agencies.
    9-8        (k)  In this section, "alternative fuel" and "conventional
    9-9  gasoline" have the meanings assigned by Section 382.131, Health and
   9-10  Safety Code.
   9-11        SECTION 15.  Section 6, Article 1118z, Revised Statutes, is
   9-12  amended by amending Subsections (k), (l), and (m) and by adding
   9-13  Subsection (p) to read as follows:
   9-14        (k)(1)  The department may not purchase or lease after
   9-15  September 1, 1991, any motor vehicle unless that vehicle is capable
   9-16  of using an <compressed natural gas or other> alternative fuel
   9-17  <which results in comparably lower emissions of oxides of nitrogen,
   9-18  volatile organic compounds, carbon monoxide, or particulates or any
   9-19  combination thereof>.
   9-20              (2)  The department may acquire or be provided
   9-21  equipment or refueling facilities necessary to operate <such>
   9-22  vehicles using an <compressed natural gas or other> alternative
   9-23  fuel <fuels>:
   9-24                    (A)  by purchase or lease as authorized by law;
   9-25                    (B)  by gift or loan of the equipment or
   9-26  facilities; or
   9-27                    (C)  by gift or loan of the equipment or
   9-28  facilities or other arrangement pursuant to a service contract for
   9-29  the supply of <compressed natural gas or other> alternative fuels.
   9-30              (3)  If such equipment or facilities are donated,
   9-31  loaned, or provided through other arrangement with the supplier of
   9-32  <compressed natural gas or other> alternative fuels, the supplier
   9-33  shall be entitled to recoup its actual cost of donating, loaning,
   9-34  or providing the equipment or facilities through its fuel charges
   9-35  under the supply contract.
   9-36              (4)  A department may make exceptions to the
   9-37  requirements of this subsection if the department certifies that:
   9-38                    (A)  the department's vehicles will be operating
   9-39  primarily in an area in which neither the department nor a supplier
   9-40  has or can reasonably be expected to establish a central refueling
   9-41  station for <compressed natural gas or other> alternative fuels; or
   9-42                    (B)  the department is unable to acquire or be
   9-43  provided equipment or refueling facilities necessary to operate
   9-44  vehicles using <compressed natural gas or other> alternative fuels
   9-45  at a projected cost that is reasonably expected to result in no
   9-46  greater net costs than the continued use of conventional
   9-47  <traditional> gasoline or diesel fuels, measured over the expected
   9-48  useful life of the equipment or facilities supplied.
   9-49        (l)(1)  A department shall achieve the following percentages
   9-50  of vehicles capable of using an <compressed natural gas or other>
   9-51  alternative fuel <fuels> by the times specified:
   9-52                    (A)  the percentage shall be equal to or greater
   9-53  than 30 percent of the number of fleet vehicles operated by
   9-54  September 1, 1994; and
   9-55                    (B)  equal to or greater than 50 percent of the
   9-56  number of fleet vehicles operated by September 1, 1996.
   9-57              (2)  The Texas Natural Resource Conservation Commission
   9-58  <Air Control Board> must review this alternative fuel use program
   9-59  by December 31, 1996, and, if the Texas Natural Resource
   9-60  Conservation Commission <Air Control Board> determines that the
   9-61  program has been effective in reducing total annual emissions from
   9-62  motor vehicles in the area, departments shall achieve a percentage
   9-63  of fleet vehicles capable of using an <compressed natural gas or
   9-64  other> alternative fuel <fuels> equal to or greater than 90 percent
   9-65  of the number of fleet vehicles operated by September 1, 1998, and
   9-66  thereafter.
   9-67              (3)  The department must submit to the Texas Natural
   9-68  Resource Conservation Commission <Air Control Board> an annual
   9-69  report by December 31 of each year showing purchases, leases, and
   9-70  conversions of motor vehicles and usage of <compressed natural gas
   10-1  or other> alternative fuels and any other relevant information the
   10-2  Texas Natural Resource Conservation Commission <Air Control Board>
   10-3  may require.
   10-4        (m)  A department in the development of the <compressed
   10-5  natural gas or other> alternative fuel use program should work with
   10-6  vehicle manufacturers and converters, fuel distributors, and others
   10-7  to delineate the vehicles to be covered, taking into consideration
   10-8  range, specialty uses, fuel availability, vehicle manufacturing and
   10-9  conversion capability, safety, resale values, and other relevant
  10-10  factors.  Such department may meet the percentage requirements of
  10-11  this section through the purchase of new vehicles or the conversion
  10-12  of existing vehicles, in accordance with federal and state
  10-13  requirements and applicable safety laws, to use the alternative
  10-14  fuels.
  10-15        (p)  In this section, "alternative fuel" and "conventional
  10-16  gasoline" have the meanings assigned by Section 382.131, Health and
  10-17  Safety Code.
  10-18        SECTION 16.  Section 3.29, State Purchasing and General
  10-19  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
  10-20  amended to read as follows:
  10-21        Sec. 3.29.  PURCHASE OF PASSENGER VEHICLES.  (a)  A state
  10-22  agency may not purchase or lease a vehicle designed or used
  10-23  primarily for the transportation of persons, including a station
  10-24  wagon, that has a wheel base longer than 113 inches or that has
  10-25  more than 160 SAE net horsepower, except that the vehicle may have
  10-26  a wheel base of up to 116 inches or SAE net horsepower of up to 280
  10-27  if the vehicle will be converted so that it is capable of using an
  10-28  <compressed natural gas or another> alternative fuel <that results
  10-29  in comparably lower emissions of oxides of nitrogen, volatile
  10-30  organic compounds, carbon monoxide, or particulates>.  This
  10-31  exception to the wheel base and horsepower limitations applies to a
  10-32  state agency regardless of the size of the agency's vehicle fleet.
  10-33  The wheel base and horsepower limitations prescribed by this
  10-34  subsection do not apply to the purchase or lease of a vehicle to be
  10-35  used primarily for criminal law enforcement or a bus, motorcycle,
  10-36  pickup, van, truck, three-wheel vehicle, tractor, or ambulance.
  10-37        (b)(1)  A state agency operating a fleet of more than 15
  10-38  vehicles, excluding law enforcement and emergency vehicles, may not
  10-39  purchase or lease after September 1, 1991, any motor vehicle unless
  10-40  that vehicle is capable of using an <compressed natural gas or
  10-41  other> alternative fuel <fuels which result in comparably lower
  10-42  emissions of oxides of nitrogen, volatile organic compounds, carbon
  10-43  monoxide, or particulates or any combination thereof>.
  10-44              (2)  A state agency may acquire or be provided
  10-45  equipment or refueling facilities necessary to operate <such>
  10-46  vehicles using <compressed natural gas or other> alternative fuels:
  10-47                    (A)  by purchase or lease as authorized by law;
  10-48                    (B)  by gift or loan of the equipment or
  10-49  facilities; or
  10-50                    (C)  by gift or loan of the equipment or
  10-51  facilities or other arrangement pursuant to a service contract for
  10-52  the supply of <compressed natural gas or other> alternative fuels.
  10-53              (3)  If such equipment or facilities are donated,
  10-54  loaned, or provided through other arrangement with the supplier of
  10-55  <compressed natural gas or other> alternative fuels, the supplier
  10-56  shall be entitled to recoup its actual cost of donating, loaning,
  10-57  or providing the equipment or facilities through its fuel charges
  10-58  under the supply contract.
  10-59              (4)  The commission may waive the requirements of this
  10-60  subsection for any state agency upon receipt of certification
  10-61  supported by evidence acceptable to the commission that:
  10-62                    (A)  the agency's vehicles will be operating
  10-63  primarily in an area in which neither the agency nor a supplier has
  10-64  or can reasonably be expected to establish a central refueling
  10-65  station for <compressed natural gas or other> alternative fuels; or
  10-66                    (B)  the agency is unable to acquire or be
  10-67  provided equipment or refueling facilities necessary to operate
  10-68  vehicles using <compressed natural gas or other> alternative fuels
  10-69  at a projected cost that is reasonably expected to result in no
  10-70  greater net costs than the continued use of conventional
   11-1  <traditional> gasoline or diesel fuels, measured over the expected
   11-2  useful life of the equipment or facilities supplied.
   11-3        (c)(1)  Any state agency which operates a fleet of more than
   11-4  15 motor vehicles, excluding law enforcement and emergency
   11-5  vehicles, shall achieve the following percentages of vehicles
   11-6  capable of using <compressed natural gas or other> alternative
   11-7  fuels by the times specified:
   11-8                    (A)  the percentage shall be equal to or greater
   11-9  than 30 percent of the number of fleet vehicles operated by
  11-10  September 1, 1994; and
  11-11                    (B)  equal to or greater than 50 percent of the
  11-12  number of fleet vehicles operated by September 1, 1996.
  11-13              (2)  The Texas Natural Resource Conservation Commission
  11-14  <Air Control Board> must review this alternative fuel use program
  11-15  by December 31, 1996, and, if the Texas Natural Resource
  11-16  Conservation Commission <Air Control Board> determines that the
  11-17  program has been effective in reducing total annual emissions from
  11-18  motor vehicles in the area, state agencies operating fleets of more
  11-19  than 15 motor vehicles shall achieve a percentage of fleet vehicles
  11-20  capable of using <compressed natural gas or other> alternative
  11-21  fuels equal to or greater than 90 percent of the number of fleet
  11-22  vehicles operated by September 1, 1998, and thereafter.
  11-23              (3)  The commission shall support the Texas Natural
  11-24  Resource Conservation Commission <Air Control Board> in collecting
  11-25  reasonable information needed to determine the air quality benefits
  11-26  from use of alternative fuels at affected agencies.
  11-27              (4)  Each state agency in its annual financial report
  11-28  to the legislature must show its progress in achieving these
  11-29  percentage requirements by itemizing purchases, leases, and
  11-30  conversions of motor vehicles and usage of <compressed natural gas
  11-31  or other> alternative fuels.
  11-32        (d)  The commission, in the development of the <compressed
  11-33  natural gas or other> alternative fuel use program, should work
  11-34  with state agency fleet operators, vehicle manufacturers and
  11-35  converters, fuel distributors, and others to delineate the vehicles
  11-36  to be covered, taking into consideration range, specialty uses,
  11-37  fuel availability, vehicle manufacturing and conversion capability,
  11-38  safety, resale values, and other relevant factors.  State agencies
  11-39  may meet the percentage requirements of this section through
  11-40  purchase of new vehicles or the conversion of existing vehicles, in
  11-41  accordance with federal and state requirements and applicable
  11-42  safety laws, to use the alternative fuels.
  11-43        (e)  The commission may reduce any percentage specified or
  11-44  waive the requirements of Subsection (c) of this section for any
  11-45  state agency upon receipt of certification supported by evidence
  11-46  acceptable to the commission that:
  11-47              (1)  the agency's vehicles will be operating primarily
  11-48  in an area in which neither the agency nor a supplier has or can
  11-49  reasonably be expected to establish a central refueling station for
  11-50  <compressed natural gas or other> alternative fuels; or
  11-51              (2)  the agency is unable to acquire or be provided
  11-52  equipment or refueling facilities necessary to operate vehicles
  11-53  using <compressed natural gas or other> alternative fuels at a
  11-54  projected cost that is reasonably expected to result in no greater
  11-55  net costs than the continued use of conventional <traditional>
  11-56  gasoline or diesel fuels, measured over the expected useful life of
  11-57  the equipment or facilities supplied.
  11-58        (f)  The commission in purchasing, leasing, maintaining, or
  11-59  converting vehicles for <compressed natural gas or other>
  11-60  alternative fuels use shall comply with all applicable safety
  11-61  standards promulgated by the United States Department of
  11-62  Transportation and the Railroad Commission of Texas or their
  11-63  successor agencies.
  11-64        (g)  In this section, a vehicle is considered to be capable
  11-65  of using an <compressed natural gas or other> alternative fuel
  11-66  <fuels> if the vehicle is capable of using an <compressed natural
  11-67  gas or other> alternative fuel <fuels> either in its original
  11-68  equipment engine or in an engine that has been converted to use an
  11-69  <compressed natural gas or other> alternative fuel <fuels> after
  11-70  September 1, 1991, unless the time for compliance is extended
   12-1  pursuant to Subsection (h) of this section.
   12-2        (h)  The commission may extend the date by which a vehicle
   12-3  powered by an engine fueled by conventional <a traditional>
   12-4  gasoline or diesel fuel <engine> shall be capable of using an
   12-5  <compressed natural gas or other> alternative fuel <fuels> as
   12-6  required under this section for one or more periods of 90 days, but
   12-7  not beyond September 1, 1992, if it finds a lack of ability to
   12-8  acquire such vehicles with original alternative fuels equipment, to
   12-9  acquire such vehicles which are able to be converted, or to convert
  12-10  such vehicles to use an <compressed natural gas or other>
  12-11  alternative fuel <fuels>.
  12-12        (i)  In this section, "alternative fuel" and "conventional
  12-13  gasoline" have the meanings assigned by Section 382.131, Health and
  12-14  Safety Code.
  12-15        SECTION 17.  The Texas Natural Resource Conservation
  12-16  Commission shall adopt rules to implement Section 382.142, Health
  12-17  and Safety Code, as added by this Act, not later than September 1,
  12-18  1997.
  12-19        SECTION 18.  This Act takes effect September 1, 1995.
  12-20        SECTION 19.  The importance of this legislation and the
  12-21  crowded condition of the calendars in both houses create an
  12-22  emergency and an imperative public necessity that the
  12-23  constitutional rule requiring bills to be read on three several
  12-24  days in each house be suspended, and this rule is hereby suspended.
  12-25                               * * * * *