SRC-MAX S.B. 681 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 681
By: Armbrister
State Affairs
3-12-97
As Filed


DIGEST 

Currently, any program substituted by a state for the Federal Clean Fuel
Fleet program (FCFF) must achieve emission equivalency with FCFF.  Local
governments or private persons must have a portion of their fleet vehicles
to be able to operate on alternative fuels.     

This bill redefines "fleet vehicle" in order to delete vehicles owned and
operated by the state or mass transit authorities from alternative fuel
requirements under this section.  This bill also sets forth provisions
dealing with the conversion of certain vehicles from gasoline-fueled or
diesel-fueled to operate on an alternative fuel, and revises other
purchasing requirements.   

PURPOSE

As proposed, S.B. 681 sets forth conditions for the Texas Natural Resource
Conservation Commission  for the alternative fuel program. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 382.131(7), Health and Safety Code, to redefine
"fleet vehicle." 

SECTION 2. Amends Section 382.132, Health and Safety Code, to provide that
rules adopted by the Texas Natural Resource Conservation Commission
(TNRCC) under Sections 382.133 through 382.136 apply only to a
consolidated metropolitan statistical area or a metropolitan statistical
area with a population of 350,000 or more that, under the federal national
ambient air quality standards provided by Section 181, Clean Air Act, as
amended (42 U.S.C. Section 7511 and Table 1), is a serious, severe, or
extreme nonattainment area, rather than an area that has not met federal
ambient air quality standards for ozone, carbon monoxide, oxides of
nitrogen, or particulates.   

SECTION 3. Amends Section 382.134, Health and Safety Code, to require the
rules adopted by the board of TNRCC (board) to require a local government
or private person to have a proportion of the person's newly purchased
fleet vehicles and a proportion of the fleet vehicles in the person's
total fleet able to operate on an alternative fuel according to a schedule
in which 70 percent of light-duty fleet vehicles purchased after September
1, 2002 and 50 percent, rather than 45 percent, of the heavyduty fleet
vehicles purchased after September 1, 2002.  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.  Requires the conversion of a vehicle to operate on
an alternative fuel to be treated the same as the purchase of a vehicle
able to operate on an alternative fuel.  Provides that this section does
not require any person to convert a vehicle to alternative fuel or to
purchase a converted vehicle.   

SECTION 4. Amends Section 382.136(a), Health and Safety Code, to authorize
TNRCC to make exceptions to rules adopted under Sections 382.133 and
382.134 if an alternative fuel that meets the normal requirements of the
principal business of the affected entity is not available in the area in
which the vehicles are to be operated, and vehicles able to operate on an
alternative fuel that meet the normal requirements and practices of the
principal business of the affected entity are not  available for purchase
from an original equipment manufacturer, among other provisions.  Deletes
a provision providing that the commission determines that the affected
vehicles will be operating primarily in an area that does not have or
cannot reasonably be expected to establish adequate refueling for the
fuels required under Sections 382.133 and 382.134.   

SECTION 5. Amends Section 382.142, Health and Safety Code, to require
rules adopted under this section to provide for the issuance of
appropriate program compliance credits to a vehicle owner or operator for
one or any combination of certain actions.  Authorizes fleet vehicles
converted, purchased, leased, or otherwise acquired prior to September 1,
1995, rather than 1998, to be counted toward compliance with the
applicable fleet percentage requirements of Section 382.134 if the
vehicles are capable of operating on an alternative fuel, rather than
certain other qualifications. Provides that, rather than requires, this
section applies to all vehicles purchased, leased, or otherwise acquired
pursuant to Sections 451.301, 452.251, and 453.251, Transportation Code
and Section 2158.001(a), Government Code, and deletes nonapplicable
sections. 

SECTION 6. Amends Section 382.143(b), Health and Safety Code, to require
the rules adopted under this section to provide for certain program
elements,   including all mobile emissions reduction credits generated in
accordance with this section may, within the same nonattainment area, be
sold, traded, or banked for later use among fleet vehicle owners or other
mobile sources of emissions without discount or depreciation of such
credits.  Deletes text requiring this section to comply with the United
States Environmental Protection Agency's minimum requirements for an
approvable Mobile Emissions Reduction Credit program. 

SECTION 7. Effective date:  September 1, 1997.

SECTION 8. Emergency clause.