ACG S.B. 681 75(R)BILL ANALYSIS

ENVIRONMENTAL REGULATION
S.B. 681
By: Armbrister (Stiles)
4-29-97
Committee Report (Unamended)

BACKGROUND

The Texas Alternative Fuels Program (TAFP) was enacted in 1989, and
amended in 1993 and 1995. TAFP requires certain state agencies, local mass
transit authorities and private fleets to convert specified percentages of
their fleet vehicles to run on natural gas and other approved alternative
fuels by set compliance deadlines. TAFP was originally based on the use of
certain fuels rather than emission reduction. In 1990, Congress passed the
Clean Air Act Amendments, creating a Federal Fleet Program for areas
judged by the Environmental Protection Agency as serious, severe and
extreme non-attainment areas. Under the Federal Program, private and local
government fleets in these areas may also fall under fleet conversion
requirements. The Federal Program is emissions based and fuel neutral. The
Federal Program also provides the right for states to opt-out and create
their own programs, as long as the state program achieves emission
equivalency with the Federal Program. Texas made this election and has had
its own program since 1989.  In the 1995 session, Senate Bill 200 amended
our program to make it emissions based and fuel neutral.  


PURPOSE

This bill modifies requirements for private and public fleets and makes
other changes to the Texas Alternative Fuel Program. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS


SECTION 1. Amends Section 382.131, Health and Safety Code, by amending
Subdivision (7) and adding Subdivision (10). 
 (7) Changes language to statutory code citations rather than legislative
session citations; clarifies exemption for vehicles garaged at home;
deletes existing provision regarding vehicles garaged at home; provides
that urban buses are subject to fleet requirements; exempts vehicles used
for maintenance or repair of underground mass transit facilities required
by federal law or regulation to operate on diesel fuel. 
 (10) Provides definition of "urban bus." 

SECTION 2. Amends Section 382.132, Health and Safety Code.
 Section 382.132.Clarifies that metropolitan areas affected by the Act are
those deemed serious, severe, or extreme nonattainment areas; allows the
TNRCC to establish clean fuel programs for covered fleets in counties or
municipalities not required to have one, if the county or municipality
makes a formal request for such a program.  

SECTION 3. Amends Subsection (b) of Section 382.133, Health and Safety
Code.  
 (b)  Rules must require mass transit authorities to have 50 percent of
their fleet capable of using alternative fuels; authorizes certain
vehicles acquired prior to September 1, 1999, to be counted toward
compliance with fleet percentage requirements if the vehicles are capable
of operating on a fuel or power source recognized by the State of Texas
fleet or mass transit fuel program prior to September 1, 1995, and fall
within the specified categories of emission standards; authorizes the
percentage requirement of this section to be met, in whole or in part,
through the purchase, lease, or  other acquisition of program compliance
credits pursuant to Section 382.142, Health and Safety Code, or through
the purchase, lease, or other acquisition of credits through the Texas
Mobile Emissions Reduction Credit (MERC) Program; deletes text outlining
an alternative fuel schedule for certain vehicles under this section. 

SECTION 4. Amends Section 382.134, Health and Safety Code, by amending
subsections (c) and (d) and adding subsection (f).  
 (c) Deletes language requiring TNRCC rules to require at least 20 percent
of the fleet vehicles in local government or private fleets to operate on
alternative fuels by September 1, 2000; provides percentage requirements
for light duty and heavy duty vehicles. 
 (d) Prohibits the TNRCC from requiring a local government or private
fleet to purchase an alternative fuel fleet vehicle if the person or
government maintains 70 percent or more alternative fuel vehicles in their
fleet. 
 (f) Authorizes the requirements imposed under this section to be met by
the conversion of currently owned or newly purchased gasoline-fueled or
diesel-fueled vehicles to operate on an alternative fuel; provides that
nothing in this section shall be construed to require conversion. 

SECTION 5. Amends Section 382.136 (a), Health and Safety Code.
 (a) Authorizes the TNRCC to make an exception to rules adopted under
Section 382.133 and 382.134 if an alternative fuel that meets normal
requirements of the business of the affected entity is not available in
the area in which the vehicles are operated; deletes language comparing
cost to vehicles operating on reformulated gasoline and diesel; provides
that percentage requirements may be met by the conversion of vehicles or
purchase of original equipment vehicles certified by the EPA as clean fuel
vehicles. 

SECTION 6. Amends Section 382.142 (b) and ok Subsections (c) through (f),
Health and Safety Code. 
 (b) Provides that the purchase, lease or acquisition of vehicles can meet
program compliance credits. 
 (c) Redesignates existing section as (c).
 (d) Redesignates existing section as (d). 
 (e) Provides a new standard for the grandfather provision to allow
persons who acquired alternative fuel fleet vehicles prior to September 1,
1995 to be counted toward the percentage requirements of Section 382.134. 
 (f)  Prohibits this section from applying to all vehicles purchased,
leased, or otherwise acquired pursuant to Section 2158.001(a), Government
Code, and deletes other nonapplicable sections.   

SECTION 7. Amends Section 382.143(b), Health and Safety Code.
 (b)  Deletes text requiring this section to comply with the EPA's minimum
requirements for an approvable Mobil Emissions Reduction Program; includes
"purchased" or "leased" vehicles to be counted toward mobile emissions
credits; authorizes all mobile emissions reduction credits generated in
accordance with this section to be sold, traded, or banked for later use
among fleet vehicle owners or other mobile or stationary sources of
emissions within the same nonattainment area without discount of
depreciation of such credits. 

SECTION 8. Amends Section 451.301(a) and (b) and adds Subsections (d) and
(e), Transportation Code.  
 (a) Excludes law enforcement and any emergency vehicles from the purchase
requirements of governing boards.  
 (b)  Provides an exception, contained in Subsection (d), to percentage
requirement deadline; provides a definition of "fleet vehicle" by
reference to Section 382.131(7), Health and Safety Code. 
 (d)  Authorizes vehicles converted, purchased, leased, or otherwise
acquired prior to September 1, 1999, to be counted toward compliance with
fleet percentage requirements if the vehicles are capable of operating on
a fuel or power source recognized by any State of Texas fleet or mass
transit fuel program prior to September 1, 1995, and meet specified
emission standards for vehicle weight classes. 
 (e) Authorizes the percentage requirements to be met through the
purchase, lease, or other acquisition of program compliance credits
pursuant to Section 382.143, Health and Safety Code, or  the Texas Mobile
Emissions Reduction Credit Program.  

SECTION 9. Amends Subsection (c) of Section 451.302, Transportation Code.
 (c) Provides that if the authority is unable to acquire or be provided
vehicles certified as lowemission vehicles that meet the normal
requirements of the authority due to unavailability for purchase from an
original equipment manufacturer or as a conversion, this must be stated on
the certification. 

SECTION 10. Amends Section 452.251, Transportation Code, by amending
subsections (a) and (b) and adding subsections (d) and (e).      
 (a)  Excludes law enforcement and any emergency vehicles from
requirements imposed on an authority to purchase or lease a motor vehicle
not capable of using an alternative fuel resulting in comparably lower
emissions. 
 (b)  Provides an exception to percentage requirement deadline; includes
definition of "fleet vehicle" by reference to Section 382.131(7), Health
and Safety Code. 
 (d)  Authorizes vehicles converted, purchased, leased, or otherwise
acquired prior to September 1, 1999, to be counted toward compliance with
the fleet percentage requirement of Subsection (b) if the vehicles are
capable of operating on a fuel or power source recognized by any State of
Texas fleet or mass transit fuel program prior to September 1, 1995, and
meeting  the emission standards for the specified weight classes. 
 (e)  Authorizes the percentage requirements of Subsection (b) to be met
through the purchase, lease, or other acquisition of program compliance
credits pursuant to Section 382.143, Health and Safety Code, or the Texas
Mobile Emissions Reduction Credit Program.   

SECTION 11. Amends Subsection (b) of Section 452.252, Transportation Code.
 (b) Provides that if the authority is unable to acquire or be provided
low-emission vehicles that meet the normal requirements of the authority
due to unavailability for purchase from an original equipment manufacturer
or as a conversion, it must be stated on the certificate.     

SECTION 12. Amends Section 453.251(a) and (b) and adds Subsections (d) and
(e), Transportation Code. 
 (a)  Excludes law enforcement and any emergency vehicles from prohibition
on transit authority to purchase or lease a motor vehicle not capable of
using an alternative fuel resulting in comparably lower emissions. 
 (b)  Provides an exception, contained in Subsection (d), to percentage
requirement deadline. Includes definition of "fleet vehicle" by reference
to Section 382.131(7), Health and Safety Code. 
 (d)  Authorizes vehicles converted, purchased, leased, or otherwise
acquired prior to September 1, 1999, to be counted toward compliance with
the fleet percentage requirement of Subsection (b) if the vehicles are
capable of operating on a fuel or power source recognized by any State of
Texas fleet or mass transit fuel program prior to September 1, 1995, and
meet the emission standards for the specified vehicle weight classes. 
 (e)  Authorizes the percentage requirements of Subsection (b) to be met
through the purchase, lease, or other acquisition of program compliance
credits pursuant to Section 382.143, Health and Safety Code, or the Texas
Mobile Emissions Reduction Credit Program, Section 382.143, Health and
Safety Code.  

SECTION 13. Amends Subsection (b) of Section 453.252, Transportation Code.
 (b) Provides that if the transit department is unable to acquire or be
provided vehicles certified as low-emission vehicles that meet the normal
requirements of the authority due to unavailability for purchase from an
original equipment manufacturer or as a conversion, it must be stated on
the certification.  

SECTION 14. Effective Date: September 1, 1997.

SECTION 15. Emergency Clause.