By Stiles H.B. No. 1325
75R5411 JJT-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the alternative fuels program.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 382.131(7), Health and Safety Code, is
1-5 amended to read as follows:
1-6 (7) "Fleet vehicle" means a vehicle required to be
1-7 registered under Chapter 502, Transportation Code, except a vehicle
1-8 registered under Section 502.006(c) [88, General Laws, Acts of the
1-9 41st Legislature, 2nd Called Session, 1929 (Article 6675a-2,
1-10 Vernon's Texas Civil Statutes)], and that is centrally fueled or[,]
1-11 capable of being centrally fueled[, or fueled at facilities serving
1-12 both business customers and the general public]. The term does not
1-13 include:
1-14 (A) a [fleet] vehicle that, when not in use, is
1-15 normally parked at the residence of the individual who normally
1-16 [usually] operates it [and that is available to such individual for
1-17 personal use]; or
1-18 (B) [a fleet vehicle that, when not in use, is
1-19 normally parked at the residence of the individual who usually
1-20 operates it and who does not report to a central location; or]
1-21 [(C)] a fleet vehicle that has a gross vehicle
1-22 weight rating of greater than 26,000 pounds [except vehicles owned
1-23 or operated by the state or mass transit authorities].
1-24 SECTION 2. Section 382.132, Health and Safety Code, is
2-1 amended to read as follows:
2-2 Sec. 382.132. METROPOLITAN AREAS AFFECTED. Rules adopted by
2-3 the commission under Sections 382.133 through 382.136 apply only to
2-4 a consolidated metropolitan statistical area or a metropolitan
2-5 statistical area with a population of 350,000 or more that, under
2-6 the federal national ambient air quality standards provided by
2-7 Section 181, Clean Air Act, as amended (42 U.S.C. Section 7511 and
2-8 Table 1), is a serious, severe, or extreme nonattainment area [has
2-9 not met federal ambient air quality standards for ozone, carbon
2-10 monoxide, oxides of nitrogen, or particulates].
2-11 SECTION 3. Section 382.134, Health and Safety Code, is
2-12 amended by amending Subsections (c) and (d) and by adding
2-13 Subsections (f) and (g) to read as follows:
2-14 (c) Rules adopted by the board must require a local
2-15 government or private person to have a proportion of the person's
2-16 newly purchased fleet vehicles and a proportion of the fleet
2-17 vehicles in the person's total fleet able to operate on an
2-18 alternative fuel according to the following schedule:
2-19 (1) 30 percent of fleet vehicles purchased after
2-20 September 1, 1998, or at least 10 percent of the fleet vehicles in
2-21 the total fleet as of September 1, 1998;
2-22 (2) 50 percent of fleet vehicles purchased after
2-23 September 1, 2000[, and at least 20 percent of the fleet vehicles
2-24 in the total fleet as of September 1, 2000]; and
2-25 (3) 70 [90] percent of light-duty fleet vehicles
2-26 purchased after September 1, 2002, and 50 [at least 45] percent of
2-27 the heavy-duty fleet vehicles purchased after [in the total fleet
3-1 as of] September 1, 2002.
3-2 (d) Rules adopted by the board may not require a local
3-3 government or private person to purchase a fleet vehicle able to
3-4 operate on an alternative fuel if the person maintains a proportion
3-5 of 70 [90] percent or more alternative fuel vehicles in the
3-6 person's fleet.
3-7 (f) The requirements imposed by this section may be met by
3-8 the conversion of currently owned or newly purchased
3-9 gasoline-fueled or diesel-fueled vehicles to operate on an
3-10 alternative fuel. For purposes of this section, the conversion of
3-11 a vehicle to operate on an alternative fuel shall be treated the
3-12 same as the purchase of a vehicle able to operate on an
3-13 alternative fuel.
3-14 (g) This section does not require any person to:
3-15 (1) convert a gasoline-fueled or diesel-fueled vehicle
3-16 to operate on an alternative fuel; or
3-17 (2) purchase a converted vehicle.
3-18 SECTION 4. Section 382.136(a), Health and Safety Code, is
3-19 amended to read as follows:
3-20 (a) The commission may make exceptions to rules adopted
3-21 under Sections 382.133 and 382.134 if:
3-22 (1) a firm engaged in fixed price contracts with
3-23 public works agencies can demonstrate that compliance with the
3-24 requirements of those sections would result in substantial economic
3-25 harm to the firm under a contract entered into before September 1,
3-26 1997;
3-27 (2) an alternative fuel that meets the normal
4-1 requirements of the principal business of the affected entity is
4-2 not available in the area in which the vehicles are to be operated
4-3 [the commission determines that the affected vehicles will be
4-4 operating primarily in an area that does not have or cannot
4-5 reasonably be expected to establish adequate refueling for the
4-6 fuels required under Sections 382.133 and 382.134];
4-7 (3) the affected entity is unable to secure financing
4-8 provided by or arranged through the proposed supplier or suppliers
4-9 of the fuels required under Sections 382.133 and 382.134 sufficient
4-10 to cover the additional costs of such fueling; [or]
4-11 (4) the projected net costs attributable to fueling
4-12 for conversion or replacement and operation of conventionally
4-13 fueled vehicles or engines with those capable of operating on the
4-14 fuels required under Sections 382.133 and 382.134 reasonably are
4-15 [is] expected [not] to exceed comparable costs for vehicles
4-16 operating on reformulated gasoline and diesel measured over the
4-17 expected useful life of such vehicles or engines and after
4-18 including in such cost calculations any available state or federal
4-19 funding or incentives for the use of the fuels required under
4-20 Sections 382.133 and 382.134; or
4-21 (5) vehicles able to operate on an alternative fuel
4-22 that meet the normal requirements and practices of the principal
4-23 business of the affected entity are not available for purchase from
4-24 an original equipment manufacturer.
4-25 SECTION 5. Section 382.142, Health and Safety Code, is
4-26 amended by amending Subsection (b) and by adding Subsections
4-27 (c)-(f) to read as follows:
5-1 (b) [(b)(1)] Rules adopted under this section shall provide
5-2 for the issuance of appropriate program compliance credits to a
5-3 vehicle owner or operator for one [any of the following] or any
5-4 combination of the following actions [thereof]:
5-5 (1) [(A)] the acquisition of a clean-fuel vehicle
5-6 which meets more stringent emissions control standards than those
5-7 otherwise required under this Act;
5-8 (2) [(B)] the acquisition of clean-fuel vehicles in
5-9 greater numbers than otherwise required under Sections 382.133 and
5-10 382.134;
5-11 (3) [(C)] the purchase of a clean-fuel vehicle in a
5-12 category not otherwise required by this subchapter; and
5-13 (4) [(D)] the purchase, lease, or acquisition of a
5-14 clean-fuel vehicle prior to the dates otherwise required under
5-15 Sections 382.133 and 382.134.
5-16 (c) [(2)] Program compliance credits shall be awarded based
5-17 upon the emissions certification level of the vehicle generating
5-18 the credit. Vehicles which provide greater emissions reductions
5-19 levels will be entitled to a greater number of credits as follows:
5-20 (1) [(A)] LEVs--one credit;
5-21 (2) [(B)] ULEVs--two credits; and
5-22 (3) [(C)] ILEVs and ZEVs--three credits.
5-23 (d) [(3)] Program compliance credits issued for the
5-24 purchase, lease, or other acquisition of a vehicle pursuant to this
5-25 section may be used to demonstrate compliance with the percentage
5-26 requirements of Sections 382.133 and 382.134, they may be banked
5-27 for later use, or they may be traded, sold, or purchased, for use
6-1 by any other person in the same nonattainment area, to demonstrate
6-2 compliance with the percentage requirements of Sections 382.133 and
6-3 382.134.
6-4 (e) Fleet vehicles [(4) Vehicles] converted, purchased,
6-5 leased, or otherwise acquired prior to September 1, 1995 [1998],
6-6 may be counted toward compliance with the applicable fleet
6-7 percentage requirements of Section 382.134 if the vehicles[:]
6-8 [(A)] are capable of operating on an alternative
6-9 fuel[;]
6-10 [(B) meet at a minimum the Tier I emissions
6-11 standards pursuant to Section 202 of the federal Clean Air Act, as
6-12 amended (42 U.S.C. Section 7521); and]
6-13 [(C) do not exceed 30 percent of the
6-14 owner/operator's fleet on September 1, 1998].
6-15 (f) [(5)] This section [shall] also applies [apply] to all
6-16 vehicles purchased, leased, or otherwise acquired pursuant to:
6-17 (1) Sections 451.301, 452.251, and 453.251,
6-18 Transportation Code; and
6-19 (2) Section 2158.001(a), Government Code [(A) Section
6-20 21.174(c)(1), Education Code;]
6-21 [(B) Section 14(c)(1), Chapter 141, Acts of the
6-22 63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's
6-23 Texas Civil Statutes), as added by Section 8, Chapter 1189, Acts of
6-24 the 71st Legislature, Regular Session, 1989, and amended by Section
6-25 13, Chapter 503, Acts of the 72nd Legislature, Regular Session,
6-26 1991;]
6-27 [(C) Section 20(e)(1), Chapter 683, Acts of the
7-1 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
7-2 Statutes);]
7-3 [(D) Section 6(k)(1), Article 1118z, Revised
7-4 Statutes; and]
7-5 [(E) Section 3.29(a), State Purchasing and
7-6 General Services Act (Article 601b, Vernon's Texas Civil
7-7 Statutes)].
7-8 SECTION 6. Section 382.143(b), Health and Safety Code, is
7-9 amended to read as follows:
7-10 (b) Rules adopted under this section shall [comply with the
7-11 United States Environmental Protection Agency's minimum
7-12 requirements for an approvable Mobile Emissions Reduction Credit
7-13 program and shall also] provide for the following program elements:
7-14 (1) program participation shall be as follows:
7-15 (A) entry into the program is voluntary; and
7-16 (B) both fleet owners or operators subject to
7-17 the percentage requirements of Sections 382.133 and 382.134 and
7-18 vehicle owners or operators who are not subject to those percentage
7-19 requirements may generate mobile emissions reduction credits under
7-20 this program, although the board may require a certain minimum
7-21 number of vehicles to participate;
7-22 (2) mobile emissions reduction credits shall be
7-23 calculated on a per-pollutant basis and shall be granted to a
7-24 participating vehicle owner or operator for any of the following:
7-25 (A) acquisition of more or cleaner vehicles than
7-26 otherwise required by law; or
7-27 (B) entering into a binding contract with the
8-1 board to purchase or acquire at some future date more or cleaner
8-2 vehicles than otherwise required by law;
8-3 (3) mobile emissions reduction credit values shall be
8-4 determined in accordance with United States Environmental
8-5 Protection Agency rules and guidance;
8-6 (4) mobile emissions reduction credits may be used as
8-7 follows:
8-8 (A) to demonstrate compliance with any
8-9 applicable mobile source emissions reductions requirements; and
8-10 (B) to satisfy Reasonably Available Control
8-11 Technology and Clean Air Act offset requirements, subject to the
8-12 appropriate trading ratios; and
8-13 (5) all mobile emissions reduction credits generated
8-14 in accordance with this section may, within the same nonattainment
8-15 area, be sold, traded, or banked for later use among fleet vehicle
8-16 owners or other mobile sources of emissions without discount or
8-17 depreciation of such credits.
8-18 SECTION 7. This Act takes effect September 1, 1997.
8-19 SECTION 8. The importance of this legislation and the
8-20 crowded condition of the calendars in both houses create an
8-21 emergency and an imperative public necessity that the
8-22 constitutional rule requiring bills to be read on three several
8-23 days in each house be suspended, and this rule is hereby suspended.