By: Armbrister S.B. No. 681
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the alternative fuels program.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 382.131, Health and Safety Code, is
1-4 amended by amending Subdivision (7) and adding Subdivision (10) to
1-5 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), Transportation Code [88,
1-9 General Laws, Acts of the 41st Legislature, 2nd Called Session,
1-10 1929 (Article 6675a-2, Vernon's Texas Civil Statutes)], and that is
1-11 centrally fueled, capable of being centrally fueled, or fueled at
1-12 facilities serving both business customers and the general public.
1-13 The term does not 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];
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 urban buses;
1-23 or
2-1 (C) a vehicle used in the maintenance or repair
2-2 of underground mass transit facilities which is required by federal
2-3 law or regulation to operate on diesel fuel [except vehicles owned
2-4 or operated by the state or mass transit authorities].
2-5 (10) "Urban bus" means any motor bus or municipal bus
2-6 required to be registered under Chapter 502, Transportation Code,
2-7 which is owned or operated by a mass transit authority.
2-8 SECTION 2. Section 382.132, Health and Safety Code, is
2-9 amended to read as follows:
2-10 Sec. 382.132. METROPOLITAN AREAS AFFECTED. (a) Rules
2-11 adopted by the commission under Sections 382.133 through 382.136
2-12 apply only to a consolidated metropolitan statistical area or a
2-13 metropolitan statistical area with a population of 350,000 or more
2-14 that, under the federal national ambient air quality standards
2-15 provided by Section 181, federal Clean Air Act, as amended (42
2-16 U.S.C. Section 7511 and Table 1), is a serious, severe, or extreme
2-17 nonattainment area [has not met federal ambient air quality
2-18 standards for ozone, carbon monoxide, oxides of nitrogen, or
2-19 particulates].
2-20 (b) Notwithstanding the provisions of Subsection (a), the
2-21 commission may establish a clean fuel vehicle program for covered
2-22 fleets in counties where not otherwise required in response to a
2-23 formal request by resolutions adopted by the county and the most
2-24 populous municipality within the county according to the most
2-25 recent federal decennial census. Such request may originate from
3-1 any county or municipality declared to be in violation of or
3-2 seeking to avoid being declared in violation of federal ambient air
3-3 quality standards.
3-4 SECTION 3. Subsection (b), Section 382.133, Health and
3-5 Safety Code, is amended to read as follows:
3-6 (b)(1) Rules adopted under this section must require a mass
3-7 transit authority to have 50 percent of the authority's fleet
3-8 vehicles capable of using alternative fuel.
3-9 (2) Vehicles converted, purchased, leased, or
3-10 otherwise acquired prior to September 1, 1999, may be counted by
3-11 the commission toward compliance with the fleet percentage
3-12 requirement and rules adopted by the commission pursuant to this
3-13 section if the vehicles are capable of operating on a fuel or power
3-14 source recognized by any State of Texas fleet or mass transit fuel
3-15 program prior to September 1, 1995, and meet the following emission
3-16 standards:
3-17 (A) for vehicles under 8,500 pounds gross
3-18 vehicle weight rating (GVWR), the federal Tier I emissions
3-19 standards pursuant to Section 202 of the federal Clean Air Act, as
3-20 amended (42 U.S.C. Section 7521); or
3-21 (B) for vehicles over 8,500 pounds gross vehicle
3-22 weight rating (GVWR), the federal emission standards in place at
3-23 the time of their manufacture.
3-24 (3) The percentage requirement of this section may be
3-25 met, in whole or in part, through the purchase, lease, or other
4-1 acquisition of program compliance credits pursuant to Section
4-2 382.142 or through the purchase, lease, or other acquisition of
4-3 credits through the Texas Mobile Emissions Reduction Credit (MERC)
4-4 Program established pursuant to Section 381.143 [its fleet vehicles
4-5 able to operate on an alternative fuel according to the following
4-6 schedule:]
4-7 [(1) not later than September 1, 1994, at least 30
4-8 percent of the vehicles; and]
4-9 [(2) not later than September 1, 1996, at least 50
4-10 percent of the vehicles].
4-11 SECTION 4. Section 382.134, Health and Safety Code, is
4-12 amended by amending Subsections (c) and (d) and adding Subsection
4-13 (f) to read as follows:
4-14 (c) Rules adopted by the board must require a local
4-15 government or private person to have a proportion of the person's
4-16 newly purchased fleet vehicles and a proportion of the fleet
4-17 vehicles in the person's total fleet able to operate on an
4-18 alternative fuel according to the following schedule:
4-19 (1) 30 percent of fleet vehicles purchased after
4-20 September 1, 1998, or at least 10 percent of the fleet vehicles in
4-21 the total fleet as of September 1, 1998;
4-22 (2) 50 percent of fleet vehicles purchased after
4-23 September 1, 2000[, and at least 20 percent of the fleet vehicles
4-24 in the total fleet as of September 1, 2000]; and
4-25 (3) 70 [90] percent of light-duty fleet vehicles
5-1 purchased after September 1, 2002, and 50 [at least 45] percent of
5-2 the heavy-duty fleet vehicles purchased after [in the total fleet
5-3 as of] September 1, 2002.
5-4 (d) Rules adopted by the board may not require a local
5-5 government or private person to purchase a fleet vehicle able to
5-6 operate on an alternative fuel if the person maintains a proportion
5-7 of 70 [90] percent or more alternative fuel vehicles in the
5-8 person's fleet.
5-9 (f) The requirements imposed by this section may be met by
5-10 the conversion of currently owned or newly purchased
5-11 gasoline-fueled or diesel-fueled vehicles to operate on an
5-12 alternative fuel. For purposes of this section, the conversion of
5-13 a vehicle to operate on an alternative fuel shall be treated the
5-14 same as the purchase of a vehicle able to operate on an alternative
5-15 fuel. Nothing in this section shall be construed to require
5-16 conversion.
5-17 SECTION 5. Subsection (a), Section 382.136, Health and
5-18 Safety Code, is amended to read as follows:
5-19 (a) The commission may make exceptions to rules adopted
5-20 under Sections 382.133 and 382.134 if:
5-21 (1) a firm engaged in fixed price contracts with
5-22 public works agencies can demonstrate that compliance with the
5-23 requirements of those sections would result in substantial economic
5-24 harm to the firm under a contract entered into before September 1,
5-25 1997;
6-1 (2) an alternative fuel that meets the normal
6-2 requirements of the principal business of the affected entity is
6-3 not available in the area in which the vehicles are to be operated
6-4 [the commission determines that the affected vehicles will be
6-5 operating primarily in an area that does not have or cannot
6-6 reasonably be expected to establish adequate refueling for the
6-7 fuels required under Sections 382.133 and 382.134];
6-8 (3) the affected entity is unable to secure financing
6-9 provided by or arranged through the proposed supplier or suppliers
6-10 of the fuels required under Sections 382.133 and 382.134 sufficient
6-11 to cover the additional costs of such fueling; [or]
6-12 (4) the projected net costs attributable to fueling
6-13 for conversion or replacement and operation of conventionally
6-14 fueled vehicles or engines with those capable of operating on the
6-15 fuels required under Sections 382.133 and 382.134 reasonably are
6-16 [is] expected [not] to exceed comparable costs for conventional
6-17 vehicles [operating on reformulated gasoline and diesel] measured
6-18 over the expected useful life of such vehicles or engines and after
6-19 including in such cost calculations any available state or federal
6-20 funding or incentives for the use of the fuels required under
6-21 Sections 382.133 and 382.134; or
6-22 (5) original equipment vehicles, or vehicles that may
6-23 be converted to operate on an alternative fuel, that meet the
6-24 affected entity's normal requirements and practices of the
6-25 principal business and have been certified by the United States
7-1 Environmental Protection Agency as a clean fuel vehicle are not
7-2 available.
7-3 SECTION 6. Section 382.142, Health and Safety Code, is
7-4 amended by amending Subsection (b) and adding Subsections (c)
7-5 through (f) to read as follows:
7-6 (b) [(1)] Rules adopted under this section shall provide for
7-7 the issuance of appropriate program compliance credits to a vehicle
7-8 owner or operator for one [any of the following] or any combination
7-9 of the following actions [thereof]:
7-10 (1) [(A)] the purchase, lease, or acquisition of a
7-11 clean-fuel vehicle which meets more stringent emissions control
7-12 standards than those otherwise required under this Act;
7-13 (2) [(B)] the purchase, lease, or acquisition of
7-14 clean-fuel vehicles in greater numbers than otherwise required
7-15 under Sections 382.133 and 382.134;
7-16 (3) [(C)] the purchase, lease, or acquisition of a
7-17 clean-fuel vehicle in a category not otherwise required by this
7-18 subchapter; and
7-19 (4) [(D)] the purchase, lease, or acquisition of a
7-20 clean-fuel vehicle prior to the dates otherwise required under
7-21 Sections 382.133 and 382.134.
7-22 (c) [(2)] Program compliance credits shall be awarded based
7-23 upon the emissions certification level of the vehicle generating
7-24 the credit. Vehicles which provide greater emissions reductions
7-25 levels will be entitled to a greater number of credits as follows:
8-1 (1) [(A)] LEVs--one credit;
8-2 (2) [(B)] ULEVs--two credits; and
8-3 (3) [(C)] ILEVs and ZEVs--three credits.
8-4 (d) [(3)] Program compliance credits issued for the
8-5 purchase, lease, or other acquisition of a vehicle pursuant to this
8-6 section may be used to demonstrate compliance with the percentage
8-7 requirements of Sections 382.133 and 382.134, they may be banked
8-8 for later use, or they may be traded, sold, or purchased, for use
8-9 by any other person in the same nonattainment area, to demonstrate
8-10 compliance with the percentage requirements of Sections 382.133 and
8-11 382.134.
8-12 (e) Fleet vehicles [(4) Vehicles] converted, purchased,
8-13 leased, or otherwise acquired prior to September 1, 1995 [1998],
8-14 may be counted toward compliance with the applicable fleet
8-15 percentage requirements of Section 382.134 if the vehicles[:]
8-16 [(A)] are capable of operating on a [an
8-17 alternative] fuel or power source recognized by any State of Texas
8-18 fleet fuel program prior to September 1, 1995[;]
8-19 [(B) meet at a minimum the Tier I emissions
8-20 standards pursuant to Section 202 of the federal Clean Air Act, as
8-21 amended (42 U.S.C. Section 7521); and]
8-22 [(C) do not exceed 30 percent of the
8-23 owner/operator's fleet on September 1, 1998].
8-24 (f) [(5)] This section shall not [also] apply to all
8-25 vehicles purchased, leased, or otherwise acquired pursuant to
9-1 Section 2158.001(a), Government Code[:]
9-2 [(A) Section 21.174(c)(1), Education Code;]
9-3 [(B) Section 14(c)(1), Chapter 141, Acts of the
9-4 63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's
9-5 Texas Civil Statutes), as added by Section 8, Chapter 1189, Acts of
9-6 the 71st Legislature, Regular Session, 1989, and amended by Section
9-7 13, Chapter 503, Acts of the 72nd Legislature, Regular Session,
9-8 1991;]
9-9 [(C) Section 20(e)(1), Chapter 683, Acts of the
9-10 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
9-11 Statutes);]
9-12 [(D) Section 6(k)(1), Article 1118z, Revised
9-13 Statutes; and]
9-14 [(E) Section 3.29(a), State Purchasing and
9-15 General Services Act (Article 601b, Vernon's Texas Civil
9-16 Statutes)].
9-17 SECTION 7. Subsection (b), Section 382.143, Health and
9-18 Safety Code, is amended to read as follows:
9-19 (b) Rules adopted under this section shall [comply with the
9-20 United States Environmental Protection Agency's minimum
9-21 requirements for an approvable Mobile Emissions Reduction Credit
9-22 program and shall also] provide for the following program elements:
9-23 (1) program participation shall be as follows:
9-24 (A) entry into the program is voluntary; and
9-25 (B) both fleet owners or operators subject to
10-1 the percentage requirements of Sections 382.133 and 382.134 and
10-2 vehicle owners or operators who are not subject to those percentage
10-3 requirements may generate mobile emissions reduction credits under
10-4 this program, although the board may require a certain minimum
10-5 number of vehicles to participate;
10-6 (2) mobile emissions reduction credits shall be
10-7 calculated on a per-pollutant basis and shall be granted to a
10-8 participating vehicle owner or operator for any of the following:
10-9 (A) purchase, lease, or acquisition of more or
10-10 cleaner vehicles than otherwise required by law; or
10-11 (B) entering into a binding contract with the
10-12 board to purchase, lease, or acquire at some future date more or
10-13 cleaner vehicles than otherwise required by law;
10-14 (3) mobile emissions reduction credit values shall be
10-15 determined in accordance with United States Environmental
10-16 Protection Agency rules and guidance;
10-17 (4) mobile emissions reduction credits may be used as
10-18 follows:
10-19 (A) to demonstrate compliance with any
10-20 applicable mobile source emissions reductions requirements; and
10-21 (B) to satisfy Reasonably Available Control
10-22 Technology and Clean Air Act offset requirements, subject to the
10-23 appropriate trading ratios; and
10-24 (5) all mobile emissions reduction credits generated
10-25 in accordance with this section may, within the same nonattainment
11-1 area, be sold, traded, or banked for later use among fleet vehicle
11-2 owners or other mobile or stationary sources of emissions without
11-3 discount or depreciation of such credits.
11-4 SECTION 8. Section 451.301, Transportation Code, is amended
11-5 by amending Subsections (a) and (b) and adding Subsections (d) and
11-6 (e) to read as follows:
11-7 (a) The board may not purchase or lease a motor vehicle,
11-8 excluding any law enforcement and any emergency vehicle, that is
11-9 not capable of using compressed natural gas or another alternative
11-10 fuel the use of which results in comparably lower emissions of
11-11 oxides of nitrogen, volatile organic compounds, carbon monoxide, or
11-12 particulates or combinations of those materials.
11-13 (b) Except as provided by Subsection (d), after [After]
11-14 August 31, 1996, at least 50 percent of the fleet vehicles of an
11-15 authority must be capable of using compressed natural gas or other
11-16 alternative fuels. In this section, "fleet vehicle" has the
11-17 meaning assigned by Section 382.131(7), Health and Safety Code.
11-18 (d) Vehicles converted, purchased, leased, or otherwise
11-19 acquired prior to September 1, 1999, may be counted toward
11-20 compliance with the fleet percentage requirement of Subsection (b)
11-21 if the vehicles are capable of operating on a fuel or power source
11-22 recognized by any State of Texas fleet or mass transit fuel program
11-23 prior to September 1, 1995, and meet the following emission
11-24 standards:
11-25 (1) for vehicles under 8,500 pounds gross vehicle
12-1 weight rating (GVWR), the federal Tier I emissions standards
12-2 pursuant to Section 202 of the federal Clean Air Act, as amended
12-3 (42 U.S.C. Section 7521); or
12-4 (2) for vehicles over 8,500 pounds gross vehicle
12-5 weight rating (GVWR), the federal emission standards in place at
12-6 the time of their manufacture.
12-7 (e) The percentage requirements of Subsection (b) may be
12-8 met, in whole or in part, through the purchase, lease, or other
12-9 acquisition of program compliance credits pursuant to Section
12-10 382.142, Health and Safety Code, or through the purchase, lease, or
12-11 other acquisition of credits through the Texas Mobile Emissions
12-12 Reduction Credit (MERC) Program established pursuant to Section
12-13 382.143, Health and Safety Code.
12-14 SECTION 9. Subsection (c), Section 451.302, Transportation
12-15 Code, is amended to read as follows:
12-16 (c) A certification under this section must state that:
12-17 (1) the authority's vehicles will be operating
12-18 primarily in an area in which neither the authority nor a supplier
12-19 has or can reasonably be expected to establish a central refueling
12-20 station for compressed natural gas or other alternative fuels; [or]
12-21 (2) the authority is unable to acquire or be provided
12-22 equipment or refueling facilities necessary to operate vehicles
12-23 using compressed natural gas or other alternative fuels at a
12-24 projected cost that is reasonably expected to result in no greater
12-25 net cost than the continued use of traditional gasoline or diesel
13-1 fuel measured over the expected useful life of the equipment or
13-2 facilities supplied; or
13-3 (3) the authority is unable to acquire or be provided
13-4 vehicles certified as low-emission vehicles (LEV) that meet the
13-5 normal requirements of the authority due to unavailability for
13-6 purchase from an original equipment manufacturer or as a
13-7 conversion.
13-8 SECTION 10. Section 452.251, Transportation Code, is amended
13-9 by amending Subsections (a) and (b) and adding Subsections (d) and
13-10 (e) to read as follows:
13-11 (a) An authority may not purchase or lease a motor vehicle,
13-12 excluding any law enforcement and any emergency vehicle, that is
13-13 not capable of using compressed natural gas or another alternative
13-14 fuel the use of which results in comparably lower emissions of
13-15 oxides of nitrogen, volatile organic compounds, carbon monoxide, or
13-16 particulates or combinations of those materials.
13-17 (b) Except as provided by Subsection (d), after [After]
13-18 August 31, 1996, at least 50 percent of the fleet vehicles operated
13-19 by an authority must be capable of using compressed natural gas or
13-20 another alternative fuel. In this section, "fleet vehicle" has the
13-21 meaning assigned by Section 382.131(7), Health and Safety Code.
13-22 (d) Vehicles converted, purchased, leased, or otherwise
13-23 acquired prior to September 1, 1999, may be counted toward
13-24 compliance with the fleet percentage requirement of Subsection (b)
13-25 if the vehicles are capable of operating on a fuel or power source
14-1 recognized by any State of Texas fleet or mass transit fuel program
14-2 prior to September 1, 1995, and meet the following emission
14-3 standards:
14-4 (1) for vehicles under 8,500 pounds gross vehicle
14-5 weight rating (GVWR), the federal Tier I emissions standards
14-6 pursuant to Section 202 of the federal Clean Air Act, as amended
14-7 (42 U.S.C. Section 7521); or
14-8 (2) for vehicles over 8,500 pounds gross vehicle
14-9 weight rating (GVWR), the federal emission standards in place at
14-10 the time of their manufacture.
14-11 (e) The percentage requirements of Subsection (b) may be
14-12 met, in whole or in part, through the purchase, lease, or other
14-13 acquisition of program compliance credits pursuant to Section
14-14 382.142, Health and Safety Code, or through the purchase, lease, or
14-15 other acquisition of credits through the Texas Mobile Emissions
14-16 Reduction Credit (MERC) Program established pursuant to Section
14-17 382.143, Health and Safety Code.
14-18 SECTION 11. Subsection (b), Section 452.252, Transportation
14-19 Code, is amended to read as follows:
14-20 (b) A certification under this section must state that:
14-21 (1) the authority's vehicles will be operating
14-22 primarily in an area in which neither the authority nor a supplier
14-23 has or can reasonably be expected to establish a central refueling
14-24 station for compressed natural gas or other alternative fuels; [or]
14-25 (2) the authority is unable to acquire or be provided
15-1 equipment or refueling facilities necessary to operate vehicles
15-2 using compressed natural gas or other alternative fuels at a
15-3 projected cost that is reasonably expected to result in no greater
15-4 net cost than the continued use of traditional gasoline or diesel
15-5 fuel measured over the expected useful life of the equipment or
15-6 facilities supplied; or
15-7 (3) the authority is unable to acquire or be provided
15-8 vehicles certified as low-emission vehicles (LEV) that meet the
15-9 normal requirements of the authority due to unavailability for
15-10 purchase from an original equipment manufacturer or as a
15-11 conversion.
15-12 SECTION 12. Section 453.251, Transportation Code, is amended
15-13 by amending Subsections (a) and (b) and adding Subsections (d) and
15-14 (e) to read as follows:
15-15 (a) A transit department may not purchase or lease a motor
15-16 vehicle, excluding any law enforcement and any emergency vehicle,
15-17 that is not capable of using compressed natural gas or another
15-18 alternative fuel the use of which results in comparably lower
15-19 emissions of oxides of nitrogen, volatile organic compounds, carbon
15-20 monoxide, or particulates or combinations of those materials.
15-21 (b) Except as provided by Subsection (d), after [After]
15-22 August 31, 1996, at least 50 percent of the fleet vehicles operated
15-23 by a transit department must be capable of using compressed natural
15-24 gas or another alternative fuel. In this section, "fleet vehicle"
15-25 has the meaning assigned by Section 382.131(7), Health and Safety
16-1 Code.
16-2 (d) Vehicles converted, purchased, leased, or otherwise
16-3 acquired prior to September 1, 1999, may be counted toward
16-4 compliance with the fleet percentage requirement of Subsection (b)
16-5 if the vehicles are capable of operating on a fuel or power source
16-6 recognized by any State of Texas fleet or mass transit fuel program
16-7 prior to September 1, 1995, and meet the following emission
16-8 standards:
16-9 (1) for vehicles under 8,500 pounds gross vehicle
16-10 weight rating (GVWR), the federal Tier I emissions standards
16-11 pursuant to Section 202 of the federal Clean Air Act, as amended
16-12 (42 U.S.C. Section 7521); or
16-13 (2) for vehicles over 8,500 pounds gross vehicle
16-14 weight rating (GVWR), the federal emission standards in place at
16-15 the time of their manufacture.
16-16 (e) The percentage requirements of Subsection (b) may be
16-17 met, in whole or in part, through the purchase, lease, or other
16-18 acquisition of program compliance credits pursuant to Section
16-19 382.142, Health and Safety Code, or through the purchase, lease, or
16-20 other acquisition of credits through the Texas Mobile Emissions
16-21 Reduction Credit (MERC) Program established pursuant to Section
16-22 382.143, Health and Safety Code.
16-23 SECTION 13. Subsection (b), Section 453.252, Transportation
16-24 Code, is amended to read as follows:
16-25 (b) A certification under this section must state that:
17-1 (1) the transit department's vehicles will be
17-2 operating primarily in an area in which neither the transit
17-3 department nor a supplier has or can reasonably be expected to
17-4 establish a central refueling station for compressed natural gas or
17-5 other alternative fuels; [or]
17-6 (2) the transit department is unable to acquire or be
17-7 provided equipment or refueling facilities necessary to operate
17-8 vehicles using compressed natural gas or other alternative fuels at
17-9 a projected [project] cost that is reasonably expected to result in
17-10 no greater net cost than the continued use of traditional gasoline
17-11 or diesel fuel measured over the expected useful life of the
17-12 equipment or facilities supplied; or
17-13 (3) the transit department is unable to acquire or be
17-14 provided vehicles certified as low-emission vehicles (LEV) that
17-15 meet the normal requirements of the authority due to unavailability
17-16 for purchase from an original equipment manufacturer or as a
17-17 conversion.
17-18 SECTION 14. This Act takes effect September 1, 1997.
17-19 SECTION 15. The importance of this legislation and the
17-20 crowded condition of the calendars in both houses create an
17-21 emergency and an imperative public necessity that the
17-22 constitutional rule requiring bills to be read on three several
17-23 days in each house be suspended, and this rule is hereby suspended.