By: Rosson S.B. No. 1450
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the issuance of debt and financial assistance to
1-2 certain persons, municipal corporations, and political subdivisions
1-3 of the state for the public purpose of encouraging and assisting
1-4 compliance with federal and state air quality standards.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. The legislature finds that the reduction and
1-7 prevention of air pollution in this state are essential for the
1-8 public health and economic development of Texas and its citizens.
1-9 Air quality requirements of federal and state law and local
1-10 regulations can be met through public-private cooperation.
1-11 Long-term environmental and economic benefits can be realized, even
1-12 though the initial investment may involve significant costs. The
1-13 legislature further finds that motor vehicles, through the emission
1-14 of carbon monoxide, nitrogen oxides, particulate matter, and other
1-15 pollutants and precursors to pollutants, contribute substantially
1-16 to the degradation of air quality in many areas of Texas. Control
1-17 of automotive emissions can be a critical element in restoring
1-18 areas with degraded air quality to compliance with state and
1-19 federal air quality standards and keeping areas with marginal air
1-20 quality from exceeding air quality standards. Compliance with air
1-21 quality standards of state and federal law will assist in
1-22 protecting the public health and welfare and in maintaining Texas'
1-23 fair share of federal funds. State assistance for private persons,
2-1 especially small businesses, municipal corporations, and political
2-2 subdivisions to acquire motor vehicles and other equipment that
2-3 emit the least possible emissions is in the public interest.
2-4 SECTION 2. The Health and Safety Code is amended by adding
2-5 Chapter 385 to read as follows:
2-6 SUBCHAPTER A. TEXAS AIR QUALITY IMPROVEMENT FUND
2-7 Sec. 385.001. DEFINITIONS.
2-8 (a) "Commission" means the Texas Natural Resource
2-9 Conservation Commission.
2-10 (b) "Emission reduction credit" means a credit recognized by
2-11 the commission or the United States Environmental Protection Agency
2-12 for reductions in emissions of air pollutants by either mobile or
2-13 stationary sources.
2-14 (c) "Maintenance area" means an area formerly designated as
2-15 a nonattainment area that has achieved compliance with the
2-16 applicable air quality standards as redesignated by the United
2-17 States Environmental Protection Agency, pursuant to Section 107 of
2-18 the federal Clean Air Act (42 U.S.C. Section 7407).
2-19 (d) "Metropolitan planning organization" includes regional
2-20 councils of government, area emission reduction credit
2-21 organizations, and regional transportation planning organizations.
2-22 (e) "Near nonattainment area" means a standard metropolitan
2-23 statistical area or other specific geographic area found by the
2-24 commission to be at substantial risk of becoming a nonattainment
2-25 area.
3-1 (f) "Nonattainment area" means a area so designated within
3-2 the meaning of Section 107 of the federal Clean Air Act (42 U.S.C.
3-3 Section 7407).
3-4 (g) "Political subdivision" means a county, school district,
3-5 special district, or transit authority.
3-6 (h) "State implementation plan" means that plan that
3-7 identifies actions and programs that the state will undertake to
3-8 implement the state's responsibilities under the federal Clean Air
3-9 Act (42 U.S.C. Section 7401 et seq.) and approved by the United
3-10 States Environmental Protection Agency pursuant to Section 110 of
3-11 the federal Clean Air Act (42 U.S.C. Section 7410).
3-12 Sec. 385.002. ISSUANCE OF GENERAL OBLIGATION BONDS.
3-13 (a) The commission by resolution may periodically provide
3-14 for the issuance of general obligation bonds as authorized by the
3-15 Texas Constitution.
3-16 (b) Before authorizing the issuance of any general
3-17 obligation bonds, the commission must determine that the issuance
3-18 of revenue bonds is not an economically advisable alternative for
3-19 carrying out the purposes of this chapter.
3-20 (c) The commission may issue and sell general obligation
3-21 bonds of the state not to exceed $500 million outstanding at any
3-22 one time to provide money to establish the Texas air quality
3-23 improvement fund. At least one half of the amount, not to exceed
3-24 $250 million, of the bonds shall be issued and sold to provide
3-25 money to the clean fuel vehicle financing account within the fund.
4-1 (d) The commission may issue the bonds in one or several
4-2 installments or series. One or more of the installments or series
4-3 may consist of obligations, the interest on which is taxable under
4-4 federal law, and one or more of the series may consist of
4-5 obligations, the interest on which is not taxable under federal
4-6 law.
4-7 (d) Proceeds of the bonds issued under Subsection (c) of
4-8 this section shall be deposited in the Texas air quality
4-9 improvement fund and applied in accordance with the resolution
4-10 authorizing the bonds.
4-11 (e) The fund shall be used to provide financial assistance
4-12 to persons, municipal corporations, and political subdivisions of
4-13 this state to encourage and assist in compliance with federal and
4-14 state air quality requirements.
4-15 (f) Financial assistance may be provided for the
4-16 construction, acquisition, or installation of real or personal
4-17 property used for the prevention, monitoring, control, or reduction
4-18 of air pollution:
4-19 (1) to meet or exceed air quality requirements under
4-20 the laws or regulations of the United States, this state, or any
4-21 political subdivision of this state; and
4-22 (2) to enable the owner or user of such real or
4-23 personal property to or obtain, to the greatest extent that they
4-24 are available, air quality compliance credits or similar incentives
4-25 under the laws or regulations of the United States, this state, or
5-1 any political subdivision of this state.
5-2 Sec. 385.003. TEXAS AIR QUALITY IMPROVEMENT FUND.
5-3 (a) The Texas Air Quality Improvement Fund is a revolving
5-4 fund in the state treasury.
5-5 (b) The fund may receive from the state or federal
5-6 government or from any other person money that is to be
5-7 administered by the commission in connection with providing
5-8 financial assistance to eligible air quality improvement projects
5-9 under any program funded in whole or in part with the proceeds of
5-10 general obligation bonds issued to carry out the purpose of this
5-11 chapter.
5-12 (c) The commission may provide for the establishment and
5-13 maintenance of separate accounts within the fund, including program
5-14 accounts as prescribed by the commission, an interest and sinking
5-15 account, reserve accounts, and other accounts provided for by the
5-16 commission in its resolutions. Repayments of financial assistance
5-17 under any program funded in whole or in part with the proceeds of
5-18 any series of bonds shall be deposited first in the interest and
5-19 sinking account as prescribed by the commission's resolutions
5-20 authorizing such series of general obligation bonds, and second in
5-21 the reserve account in respect of such series of bonds until that
5-22 account is fully funded as prescribed by the commission's
5-23 resolutions. The fund and all accounts within it shall be kept and
5-24 maintained at the direction of the commission and held in trust by
5-25 the state treasurer for and on behalf of the commission and the
6-1 owners of the bonds issued in accordance with this chapter, and may
6-2 be used only as provided by this chapter. Pending its use, money
6-3 in the fund shall be invested as prescribed by the resolution by
6-4 which the bonds were issued.
6-5 (d) To the extent the commission determines that any money
6-6 credited to the fund from repayments of financial assistance is not
6-7 required by Subsection (c) of this section and the resolutions of
6-8 the commission to be held in the interest and sinking account or
6-9 reserve account to provide for the payment of the principal of and
6-10 interest on the outstanding bonds issued by the commission, that
6-11 money may be used by the commission to pay the principal of and
6-12 interest on revenue bonds issued by the commission or for any other
6-13 authorized purpose of the commission, in accordance with this
6-14 chapter and the commission's resolutions authorizing bonds.
6-15 (e) If during the existence of the fund or during the time
6-16 any general obligation bonds are payable from the fund the
6-17 commission determines that there will not be sufficient money in
6-18 the interest and sinking account during the following fiscal year
6-19 to pay the principal of or interest on the general obligation bonds
6-20 or both the principal and interest that are to come due during the
6-21 following fiscal year, the comptroller of public accounts shall
6-22 transfer to the fund the first money coming into the state treasury
6-23 not otherwise appropriated by the constitution in an amount
6-24 sufficient to pay the obligations.
6-25 (f) The department may receive, and shall deposit in the
7-1 fund, appropriations, grants, donations, federal funds, and the
7-2 proceeds of any investment pools operated by the treasurer.
7-3 Sec. 385.004. ISSUANCE OF REVENUE BONDS.
7-4 (a) In addition to general obligation bonds, the commission
7-5 may issue not more than $500 million of revenue bonds to provide
7-6 money to carry out any purpose of the commission under this
7-7 chapter. The commission shall establish and maintain funds and
7-8 account, in accordance with Subsection (d) of this section, that
7-9 the commission considers necessary to ensure payment of the bonds
7-10 and to provide for the use of the bond proceeds and the
7-11 implementation of the program financed. Proceeds of revenue bonds
7-12 shall be applied according to the resolution authorizing those
7-13 bonds:
7-14 (1) to provide financial assistance to eligible air
7-15 quality improvement projects;
7-16 (2) to pay costs of issuance of those bonds and the
7-17 administration of any financial assistance program established by
7-18 the commission; and
7-19 (3) together with any other available funds, to pay
7-20 the principal of or interest on or to discharge or redeem, in whole
7-21 or in part, any outstanding bonds issued by the commission.
7-22 (b) The revenue bonds are obligations solely of the
7-23 commission and are payable solely from funds of the commission that
7-24 are pledged to the repayment of the revenue bonds. The commission
7-25 may not use or pledge money in the fund to repay its revenue bonds.
8-1 The revenue bonds are not and do not create or constitute a pledge,
8-2 giving, or lending of the faith or credit or taxing power of the
8-3 state. Each bond of the commission issued under this section must
8-4 contain a statement to the effect that the state is not obligated
8-5 to pay the principal of or any premium or interest on the bond, and
8-6 that neither the faith or credit nor the taxing power of the state
8-7 is pledged, given, or loaned to such a payment.
8-8 (c) Revenue bonds of the commission shall be payable as to
8-9 principal, interest, and redemption premium, if any, from and
8-10 secured by a first lien or a subordinate lien on and pledge of all
8-11 or any part of the revenues, income, or other resources of the
8-12 commission, as specified in the commission's resolution authorizing
8-13 issuance of those bonds, including mortgages or other interests in
8-14 property financed with the proceeds of such bonds (including
8-15 emission reduction credits or the right to receive emission
8-16 reduction credits generated from vehicles or equipment financed
8-17 with the proceeds of such bonds), repayments of financial
8-18 assistance, earnings from investments or deposits of the funds of
8-19 the commission, fees, charges, and any other amounts or payments
8-20 received pursuant to this chapter, and any appropriations, grants,
8-21 allocations, subsidies, supplements, guaranties, aid, contribution,
8-22 or donations from the state or federal government or any other
8-23 person. Revenue bonds may also be secured by bonds, notes, or
8-24 other obligations of municipal corporations or political
8-25 subdivisions to which financial assistance has been provided.
9-1 (d) The commission may make additional covenants concerning
9-2 the bonds and the pledged revenues and may provide for the flow of
9-3 funds, the establishment and maintenance and investment of funds,
9-4 which may include interest and sinking funds, reserve funds,
9-5 program funds, and other funds. Those funds shall be kept and
9-6 maintained in escrow and in trust by the state treasurer for and on
9-7 behalf of the commission and the owners of its revenue bonds, in
9-8 funds held outside the treasury pursuant to Section 3.051, Treasury
9-9 Act (Article 4393-1, Vernon's Texas Civil Statutes). Those funds
9-10 shall be used only as provided by this chapter, and pending their
9-11 use shall be invested as provided by any resolution of the
9-12 commission. Legal title to those funds shall be in the commission
9-13 unless or until paid out as provided by this chapter or by the
9-14 resolutions authorizing the revenue bonds. The state treasurer, as
9-15 custodian, shall administer those funds strictly and only as
9-16 provided by this chapter and in those resolutions. The treasurer
9-17 shall invest the funds in investments authorized by law for state
9-18 funds. The state shall take no action concerning those funds other
9-19 than that specified in this chapter and in those resolutions.
9-20 (e) The commission may provide in the resolution authorizing
9-21 any revenue bonds for the issuance of additional bonds to be
9-22 equally and ratably secured by lien on the revenues and receipts,
9-23 or for the issuance of subordinate lien bonds.
9-24 (f) Revenues of the commission that may be used as a source
9-25 of payment for the bonds or to establish a reserve fund to secure
10-1 the payment of debt service on the bonds or related obligations of
10-2 the commission include repayments of financial assistance, money
10-3 appropriated by the legislature to the commission for the purpose
10-4 of paying or securing the payment of debt service on the
10-5 commission's revenue bonds or related obligations, federal or
10-6 private money allocated to financial assistance programs
10-7 established under this chapter, amounts paid under any credit
10-8 agreement for those purposes, or any other money that the
10-9 commission pledges or otherwise commits for those purposes.
10-10 Insofar as pledged revenues include amounts appropriated by the
10-11 legislature, the revenue bonds must state on their face that those
10-12 revenues are available to pay debt service only if appropriated by
10-13 the legislature for that purpose.
10-14 Sec. 385.005. GENERAL PROVISIONS RELATING TO BONDS.
10-15 (a) The commission's bonds may be issued from time to time
10-16 in one or more series or issues, in bearer, registered, or any
10-17 other form, which may include registered uncertified obligations
10-18 not represented by written instruments and commonly known as
10-19 book-entry obligations, the registration of ownership and transfer
10-20 of which shall be provided for by the commission under a system of
10-21 books and records maintained by the commission or by an agent
10-22 appointed by the commission in resolution provided for issuance of
10-23 its bonds. Bonds may mature serially or otherwise not more than 40
10-24 years from their date. Bonds may bear no interest or may bear
10-25 interest at any rate or rates, fixed, variable, floating, or
11-1 otherwise, determined by the commission or determined pursuant to
11-2 any contractual arrangements approved by the commission, not to
11-3 exceed the maximum net effective interest rate allowed by Chapter
11-4 3, Acts of the 61st Legislature, Regular Session, 1969 (Article
11-5 717k-2, Vernon's Texas Civil Statutes). Interest on the bonds may
11-6 be payable at any time, and the rate of interest on the bonds may
11-7 be adjusted at such times as may be determined by the commission or
11-8 as may be determined pursuant to any contractual arrangement
11-9 approved by the commission. In connection with the issuance of its
11-10 bonds, the commission may exercise the powers granted to the
11-11 governing body of an issuer in connection with the issuance of
11-12 obligations under Chapter 656, Acts of the 68th Legislature,
11-13 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
11-14 Statutes), including issuing bonds in the form of commercial paper,
11-15 to the extent not inconsistent with this chapter.
11-16 (b) The bonds issued under this chapter and interest
11-17 coupons, if any, are investment securities under the terms of
11-18 Chapter 8, Business & Commerce Code. The bonds are exempt
11-19 securities under The Texas Securities Act (Article 581-1 et seq.,
11-20 Vernon's Texas Civil Statutes), and unless specifically provided
11-21 otherwise, under any subsequently enacted securities act. Any
11-22 contract, guaranty, or any other document executed in connection
11-23 with the issuance of bonds pursuant to this chapter is not a
11-24 security under The Securities Act (Article 581-1 et seq., Vernon's
11-25 Texas Civil Statutes), and unless specifically provided otherwise,
12-1 any subsequently enacted securities act. The commission is
12-2 authorized to do all things necessary to qualify the bonds for
12-3 offer and sale under the securities laws and regulations of the
12-4 United States and of the states and other jurisdictions in the
12-5 United States as the commission shall determine.
12-6 (c) The bonds may be issued in the form and denominations
12-7 and executed in the manner and under the terms, conditions, and
12-8 details determined as provided by the commission in the resolution
12-9 authorizing their issuance. If any officer whose manual or
12-10 facsimile signature appears on the bonds ceases to be an officer,
12-11 the signature is still valid and sufficient for all purposes as if
12-12 the officer had remained in office.
12-13 (d) All bonds issued by the commission are subject to review
12-14 and approval by the attorney general in the same manner and with
12-15 the same effect as is provided by Chapter 656, Acts of the 68th
12-16 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
12-17 Civil Statutes).
12-18 (e) No fee may be charged by any other agency of this state
12-19 in connection with the issuance of the bonds or the allocation of a
12-20 portion of the state volume limitation on private activity bonds,
12-21 if applicable, either under executive order or legislative
12-22 enactment. No proceeding, notice, or approval is required for the
12-23 issuance of any bonds or any instrument as security except as
12-24 provided by this Act. Nothing in this subsection may be
12-25 constituted to deprive the state and its governmental subdivisions
13-1 of their respective police powers or to impair any police power of
13-2 any official or agency of the state or its subdivisions as may be
13-3 provided by law.
13-4 (f) The state pledges to and agrees with the owners of any
13-5 bonds issued in accordance with this chapter that the state will
13-6 not limit or alter the rights vested in the commission to fulfill
13-7 the terms of any agreements made with the owners of the bonds or in
13-8 any way impair the rights and remedies of those owners until those
13-9 bonds, together with any premium and the interest on the bonds and
13-10 all costs and expenses in connection with any action or proceeding
13-11 by or on behalf of those owners, are fully met and discharged. The
13-12 commission is authorized to include this pledge and agreement of
13-13 the state in any agreement with the owners of those bonds.
13-14 (g) The bonds may be sold at public or private sale with or
13-15 without public bidding in the manner, at such rate or rates, price
13-16 or prices, and on such terms as may be determined by the commission
13-17 or determined as provided in any contractual arrangement approved
13-18 by the commission. The commission also may enter into any
13-19 contractual arrangement under which the bonds are to be sold from
13-20 time to time, or subject to purchase, at such prices and rates,
13-21 interest rate or payment periods, and terms as determined pursuant
13-22 to that contractual arrangement approved by the commission.
13-23 (h) Pending the preparation of definitive bonds, interim
13-24 receipts or certificates in the form and with the provisions that
13-25 are provided in the resolution may be issued to the purchaser or
14-1 purchasers of bonds sold under this chapter.
14-2 (i) The commission may provide procedures for the
14-3 replacement of a mutilated, lost, stolen, or destroyed bond.
14-4 (j) The resolutions of the commission issuing bonds may
14-5 contain other provisions and covenants as the commission may
14-6 determine.
14-7 (k) The commission may adopt and have executed any other
14-8 proceedings or instruments necessary and convenient in the issuance
14-9 of bonds.
14-10 Sec. 385.006. REFUNDING BONDS.
14-11 The commission may issue, sell, and deliver bonds to refund
14-12 all or any part of its outstanding bond, including the payment of
14-13 any redemption premium and interest accrued, under such terms,
14-14 conditions and details as determined by the commission. Bonds
14-15 issued by the commission may be refunded in the manner provided by
14-16 any other applicable statute, including Chapter 503, Acts of the
14-17 54th Legislature, Regular Session, 1955 (Article 717k, Vernon's
14-18 Texas Statutes) and Chapter 784, Acts of the 61st Legislature,
14-19 Regular Session, 1969 (Article 717k-3, Vernon's Texas Civil
14-20 Statutes). Bonds, the provision for the payment of all interest
14-21 and applicable premiums on which and the principal of which has
14-22 been made through the irrevocable deposit of money with the
14-23 treasurer according to the provisions of such an applicable
14-24 statute, shall no longer be charged against the issuing authority
14-25 of the commission, and on the making of such provision such issuing
15-1 authority shall, to the extent of the principal amount of such
15-2 bonds, be restored.
15-3 Sec. 385.007. PAYMENT ENFORCEABLE BY MANDAMUS.
15-4 Payment of the bonds and performance by the commission of its
15-5 functions and duties under this subchapter and the Texas
15-6 Constitution may be enforced in the state supreme court by mandamus
15-7 or other appropriate proceeding.
15-8 Sec. 385.008. BONDS AS INVESTMENTS.
15-9 (a) The bonds are legal and authorized investments for:
15-10 (1) banks;
15-11 (2) trust companies;
15-12 (3) savings and financial assistance associations;
15-13 (4) insurance companies of all kinds and types;
15-14 (5) fiduciaries;
15-15 (6) trustees;
15-16 (7) guardians; and
15-17 (8) sinking and other public funds of the state,
15-18 municipalities, counties, school districts, and other political
15-19 subdivisions of the state.
15-20 (b) The bonds are eligible to secure the deposit of any
15-21 public funds of the state, municipalities, counties, school
15-22 districts, or other political subdivisions of the state, and the
15-23 bonds shall be lawful and sufficient security for the deposits to
15-24 the extent of their fact value when accompanied by all unmatured
15-25 coupons attached to the bonds.
16-1 Sec. 385.008. TAX STATUS OF BONDS.
16-2 The bonds issued by the commission, any transaction relating
16-3 to the bonds, and any profits made in the sale of the bonds are
16-4 free from taxation by the state or by any city, county, special
16-5 district, or other political subdivision of the state; provided
16-6 that this section does not exempt the owner of any property
16-7 financed under this chapter from any ad valorem, sales, use,
16-8 excise, or other tax levied by the state of any political
16-9 corporation of this state.
16-10 Sec. 385.009. BOND REVIEW BOARD.
16-11 Bonds may not be issued under this chapter, and proceeds of
16-12 bonds under this chapter may not be used to finance a program
16-13 unless the issuance or program, as applicable, has been reviewed
16-14 and approved by the bond review board. A member of the bond review
16-15 board may not be held liable for damages resulting from the
16-16 performance of the members' functions under this chapter.
16-17 Sec. 385.010. CONSIDERATIONS IN FINANCING.
16-18 In determining whether to provide financing under this
16-19 chapter, the commission shall consider the likelihood that the
16-20 project for which financing is sought will achieve and sustain its
16-21 stated objectives and the effect of the financing on air quality
16-22 and job creation and retention in the state. The commission shall
16-23 give preference to applicants who are Texas residents doing
16-24 business in the state, and then to applicants who can demonstrate
16-25 that the financed activities will take place predominantly in this
17-1 state or use materials and equipment produced or manufactured in
17-2 the state. The commission shall also give preference to business
17-3 applicants with 50 or fewer employees. Preference shall also be
17-4 given to projects according to the amount of reduction in the
17-5 emission of air pollutants that will result from the project.
17-6 Sec. 385.011. STATE ADVISORY COMMITTEE.
17-7 (a) The State Air Quality Financing Advisory Committee
17-8 consists of the commissioner of the General Land Office, the chair
17-9 of the Railroad Commission, and the chair of the General Services
17-10 Commission. The members may from time to time designate senior
17-11 employees of their respective offices to perform their functions on
17-12 the committee.
17-13 (b) The committee shall meet at least quarterly and provide
17-14 recommendations to the commission on the goals and the conduct of
17-15 the financing programs created pursuant to this subchapter. The
17-16 committee shall also review and advise the commission on requests
17-17 for financial assistance subject to action by the commission under
17-18 this subchapter.
17-19 SUBCHAPTER B. FINANCIAL ASSISTANCE PROGRAMS
17-20 Sec. 385.012. LOCAL AIR QUALITY FINANCE PROGRAMS.
17-21 (a) Financial assistance under this chapter shall be
17-22 provided through metropolitan planning organizations under local
17-23 air quality finance programs. While required by this subchapter to
17-24 be consistent with the applicable local component of the state
17-25 implementation plan, local air quality finance programs and
18-1 associated local air quality finance plans shall not be employed as
18-2 mandates, but shall be responsive to and supportive of the demands
18-3 of the market for equipment and technology that reduce emissions of
18-4 pollutants, and the financing needs of small and medium size
18-5 business.
18-6 (b) The commission shall establish a program to administer
18-7 financial assistance provided from the fund. The commission may
18-8 develop, but not mandate, a model or recommended local air quality
18-9 finance plan. Actions of the commission, except for the
18-10 development of a model or recommended local air quality finance
18-11 plan, taken pursuant to this subchapter are subject to the
18-12 provisions of the Administrative Procedures Act, Chapter 2001,
18-13 Government Code.
18-14 (c) Metropolitan planning organizations in areas that have
18-15 been designated as non-attainment areas or maintenance areas or are
18-16 otherwise subject to air quality standards under the state
18-17 implementation plan promulgated by the commission shall establish a
18-18 local air quality finance program consistent with the purposes and
18-19 requirements of this subchapter and submit a plan for implementing
18-20 the program to the commission. The plan shall set out in detail
18-21 the requirements for providing financial assistance pursuant to
18-22 this chapter. It shall also contain a description of the means of
18-23 making known the availability of financial assistance within the
18-24 non-attainment or maintenance area and the means of responding to
18-25 market demand for financial assistance. The plan shall be
19-1 consistent with the applicable local component of the state
19-2 implementation plan. Each metropolitan planning organization
19-3 subject to this subsection shall submit a local air quality finance
19-4 plan not later than January 1, 1996.
19-5 (d) Metropolitan planning organizations in near
19-6 non-attainment areas or areas otherwise subject to air quality
19-7 standards other than those for non-attainment or maintenance areas
19-8 under the state implementation plan promulgated by the commission
19-9 may establish a local air quality finance program consistent with
19-10 the purposes and requirements of this section. A metropolitan
19-11 planning organization that establishes a program shall submit a
19-12 plan for the implementing the program to the commission. The plan
19-13 shall set out in detail the requirements for financial assistance
19-14 made pursuant to this chapter. It shall also contain a description
19-15 of the means of making the availability of financial assistance
19-16 known within the near non-attainment area and the means of
19-17 responding to market demand for financial assistance. The plan
19-18 shall be consistent with the applicable local air quality plan.
19-19 The commission shall determine what standard metropolitan
19-20 statistical areas are near non-attainment areas not later than
19-21 January 1, 1996.
19-22 (e) If a metropolitan planning organization is not the same
19-23 entity as an area emission reduction credit organization, the area
19-24 emission reduction credit organization shall implement the
19-25 provisions of this chapter.
20-1 (f) The commission shall review, approve, reject, or require
20-2 modification of local air quality finance plans. The commission
20-3 shall state in writing its grounds for rejecting or requiring
20-4 modification of a local air quality finance plan.
20-5 Sec. 385.013. APPLICATIONS FOR FINANCIAL ASSISTANCE.
20-6 (a) Metropolitan planning organizations shall begin to
20-7 accept applications for financial assistance not later than ninety
20-8 days after the approval of their local air quality finance plan by
20-9 the commission. Metropolitan planning organizations shall approve,
20-10 reject, or approve subject to the acceptance of modifications all
20-11 completed applications that comply with plan requirements not later
20-12 than ninety day after an application is submitted. Metropolitan
20-13 planning organizations shall submit applications that have been
20-14 approved to the commission not later than ten days after the date
20-15 of approval.
20-16 (b) The commission shall review financial assistance
20-17 requests approved by a metropolitan planning organization and
20-18 either approve, reject, or require modification of such requests
20-19 based on whether they are consistent with the applicable local air
20-20 quality finance plans. If the commission rejects or requires
20-21 modification of a request for financial assistance it shall state
20-22 in writing its grounds for its action. A request may be
20-23 resubmitted after rejection or after modification. The commission
20-24 shall review and act upon the requests not later than sixty days
20-25 after receipt.
21-1 SUBCHAPTER C. SPECIFIC COMPONENTS OF LOCAL
21-2 AIR QUALITY FINANCE PROGRAMS
21-3 Sec. 385.014. CLEAN FUEL VEHICLE FINANCE PROGRAMS.
21-4 (a) In this section:
21-5 (1) "Clean fuel vehicle" means a vehicle that has been
21-6 certified to meet the applicable emissions standards set out at
21-7 Part C, Subchapter II of the federal Clean Air Act, as amended (42
21-8 U.S.C. 7581, et seq.) and 40 Code of Federal Regulations Sections
21-9 88.311-93; 88.104-94, and 88.105-94.
21-10 (2) "Low emission vehicle," "ultra-low emission
21-11 vehicle," "inherently low emission vehicle," and "zero emission
21-12 vehicle" are vehicles certified to meet the standards specified in
21-13 subsection (a)(1) of this section.
21-14 (b) Metropolitan planning organizations shall include in
21-15 local air quality finance programs a specific component for
21-16 financing the greatest possible inclusion of clean fuel vehicles in
21-17 vehicle fleets.
21-18 (c) Financial assistance shall be available under clean fuel
21-19 vehicle programs for the acquisition or conversion of vehicles that
21-20 have the following characteristics:
21-21 (1) for the calendar years 1996 through 1998, vehicles
21-22 that are certified to be low emission vehicles or certified at a
21-23 higher standards;
21-24 (2) for the calendar years 1999 and 2000, vehicles
21-25 that are certified to be ultra-low emission vehicles or certified
22-1 at a higher standard;
22-2 (3) after calendar year 2000, vehicles that are
22-3 certified to be inherently low emission or zero emission vehicles;
22-4 and
22-5 (4) for any period, vehicles that are certified to be
22-6 inherently low emission or zero emission vehicles.
22-7 (5) A preference shall be given to the financing of
22-8 vehicles with emissions lower than the current regulatory
22-9 requirements.
22-10 (d) A metropolitan planning organization shall include the
22-11 following elements in a vehicle financing program:
22-12 (1) At least 95 percent of the amount of financial
22-13 assistance made shall be for the acquisition of qualifying vehicles
22-14 or the conversion of vehicles to a qualifying standard.
22-15 (2) Not more than five percent of the amount of the
22-16 financial assistance may be used for the acquisition or
22-17 installation of refueling equipment or facilities for fleets
22-18 composed of fifty percent or more clean fuel vehicles.
22-19 (3) Preference shall be given to fleets subject to air
22-20 quality requirements.
22-21 (4) Preference shall be given to projects that create
22-22 the greatest emission reductions.
22-23 (5) Among fleets subject to air quality requirements,
22-24 preference shall be given according to average miles driven
22-25 annually per vehicle and the average annual fuel consumption per
23-1 vehicle.
23-2 (6) Consideration shall be given to fleet conversion
23-3 projects that are or can be readily coordinated with state,
23-4 federal, and local alternative fuel and air quality programs.
23-5 (7) In considering the ability of financial assistance
23-6 applicants to repay loans or other financial assistance provided,
23-7 potential savings from fuel, vehicle life-cycle or other
23-8 operational savings, and financial benefits, such as tax credits or
23-9 other direct or indirect incentives, shall be included, if
23-10 determinable.
23-11 SECTION 3. EMERGENCY. The importance of this legislation
23-12 and the crowded condition of the calendars in both houses create an
23-13 emergency and an imperative public necessity that the
23-14 constitutional rule requiring bills to be read on three several
23-15 days in each house be suspended, and this rule is hereby suspended.
23-16 SECTION 4. This Act shall be effective on and after
23-17 September 1, 1995.