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. Subdivision (7), Section 382.131, Health and
1-4 Safety Code, is amended to read as follows:
1-5 (7) "Fleet vehicle" means a vehicle required to be
1-6 registered under Chapter 502, Transportation Code, except a motor
1-7 bus used to transport pre-primary, primary, or secondary students
1-8 to or from school or for approved extracurricular activities or a
1-9 vehicle registered under Section 502.006(c), Transportation Code
1-10 [88, General Laws, Acts of the 41st Legislature, 2nd Called
1-11 Session, 1929 (Article 6675a-2, Vernon's Texas Civil Statutes)],
1-12 and that is centrally fueled, capable of being centrally fueled, or
1-13 fueled at facilities serving both business customers and the
1-14 general public. The term does not include:
1-15 (A) a [fleet] vehicle that, when not in use, is
1-16 normally parked at the residence of the individual who normally
1-17 [usually] operates it [and that is available to such individual for
1-18 personal use];
1-19 (B) [a fleet vehicle that, when not in use, is
1-20 normally parked at the residence of the individual who usually
1-21 operates it and who does not report to a central location; or]
1-22 [(C)] a [fleet] vehicle that has a gross vehicle
1-23 weight rating of greater than 26,000 pounds;
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; or
2-4 (D) a law enforcement or emergency vehicle
2-5 [except vehicles owned or operated by the state or mass transit
2-6 authorities].
2-7 SECTION 2. Section 382.132, Health and Safety Code, is
2-8 amended to read as follows:
2-9 Sec. 382.132. METROPOLITAN AREAS AFFECTED. Rules adopted by
2-10 the commission under Sections 382.133 through 382.136 apply only to
2-11 a consolidated metropolitan statistical area or a metropolitan
2-12 statistical area with a population of 350,000 or more that, under
2-13 the federal national ambient air quality standards provided by
2-14 Section 181, federal Clean Air Act, as amended (42 U.S.C. Section
2-15 7511 and Table 1), is a serious, severe, or extreme nonattainment
2-16 area [has not met federal ambient air quality standards for ozone,
2-17 carbon monoxide, oxides of nitrogen, or particulates].
2-18 SECTION 3. Subsection (b), Section 382.133, Health and
2-19 Safety Code, is amended to read as follows:
2-20 (b)(1) Rules adopted under this section must require a mass
2-21 transit authority to have 50 percent of the authority's fleet
2-22 vehicles capable of using alternative fuel.
2-23 (2) Vehicles converted, purchased, leased, or
2-24 otherwise acquired prior to September 1, 1999, may be counted by
2-25 the commission toward compliance with the fleet percentage
3-1 requirement and rules adopted by the commission pursuant to this
3-2 section if the vehicles are capable of operating on a fuel or power
3-3 source recognized by any State of Texas fleet or mass transit fuel
3-4 program prior to September 1, 1995, and meet the following emission
3-5 standards:
3-6 (A) for vehicles under 8,500 pounds gross
3-7 vehicle weight rating (GVWR), the federal Tier I emissions
3-8 standards pursuant to Section 202 of the federal Clean Air Act, as
3-9 amended (42 U.S.C. Section 7521); or
3-10 (B) for vehicles over 8,500 pounds gross vehicle
3-11 weight rating (GVWR), the federal emission standards in place at
3-12 the time of their manufacture.
3-13 (3) The percentage requirement of this section may be
3-14 met, in whole or in part, through the purchase, lease, or other
3-15 acquisition of program compliance credits pursuant to Section
3-16 382.142 or through the purchase, lease, or other acquisition of
3-17 credits through the Texas Mobile Emissions Reduction Credit (MERC)
3-18 Program established pursuant to Section 382.143 [its fleet vehicles
3-19 able to operate on an alternative fuel according to the following
3-20 schedule:]
3-21 [(1) not later than September 1, 1994, at least 30
3-22 percent of the vehicles; and]
3-23 [(2) not later than September 1, 1996, at least 50
3-24 percent of the vehicles].
3-25 SECTION 4. Section 382.134, Health and Safety Code, is
4-1 amended by amending Subsections (c) and (d) and adding Subsection
4-2 (f) to read as follows:
4-3 (c) Rules adopted by the board must require a local
4-4 government or private person to have a proportion of the person's
4-5 newly purchased fleet vehicles and a proportion of the fleet
4-6 vehicles in the person's total fleet able to operate on an
4-7 alternative fuel according to the following schedule:
4-8 (1) 30 percent of fleet vehicles purchased after
4-9 September 1, 1998, or at least 10 percent of the fleet vehicles in
4-10 the total fleet as of September 1, 1998;
4-11 (2) 50 percent of fleet vehicles purchased after
4-12 September 1, 2000[, and at least 20 percent of the fleet vehicles
4-13 in the total fleet as of September 1, 2000]; and
4-14 (3) 70 [90] percent of light-duty fleet vehicles
4-15 purchased after September 1, 2002, and 50 [at least 45] percent of
4-16 the heavy-duty fleet vehicles purchased after [in the total fleet
4-17 as of] September 1, 2002.
4-18 (d) Rules adopted by the board may not require a local
4-19 government or private person to purchase a fleet vehicle able to
4-20 operate on an alternative fuel if the person maintains a proportion
4-21 of 70 [90] percent or more alternative fuel vehicles in the
4-22 person's fleet.
4-23 (f) The requirements imposed by this section may be met by
4-24 the conversion of currently owned or newly purchased
4-25 gasoline-fueled or diesel-fueled vehicles to operate on an
5-1 alternative fuel. For purposes of this section, the conversion of
5-2 a vehicle to operate on an alternative fuel shall be treated the
5-3 same as the purchase of a vehicle able to operate on an alternative
5-4 fuel. Nothing in this section shall be construed to require
5-5 conversion.
5-6 SECTION 5. Subsection (a), Section 382.136, Health and
5-7 Safety Code, is amended to read as follows:
5-8 (a) The commission may make exceptions to rules adopted
5-9 under Sections 382.133 and 382.134 if:
5-10 (1) a firm engaged in fixed price contracts with
5-11 public works agencies can demonstrate that compliance with the
5-12 requirements of those sections would result in substantial economic
5-13 harm to the firm under a contract entered into before September 1,
5-14 1997;
5-15 (2) an alternative fuel that meets the normal
5-16 requirements of the principal business of the affected entity is
5-17 not available in the area in which the vehicles are to be operated
5-18 [the commission determines that the affected vehicles will be
5-19 operating primarily in an area that does not have or cannot
5-20 reasonably be expected to establish adequate refueling for the
5-21 fuels required under Sections 382.133 and 382.134];
5-22 (3) the affected entity is unable to secure financing
5-23 provided by or arranged through the proposed supplier or suppliers
5-24 of the fuels required under Sections 382.133 and 382.134 sufficient
5-25 to cover the additional costs of such fueling; [or]
6-1 (4) the projected net costs attributable to fueling
6-2 for conversion or replacement and operation of conventionally
6-3 fueled vehicles or engines with those capable of operating on the
6-4 fuels required under Sections 382.133 and 382.134 reasonably are
6-5 [is] expected [not] to exceed comparable costs for conventional
6-6 vehicles [operating on reformulated gasoline and diesel] measured
6-7 over the expected useful life of such vehicles or engines and after
6-8 including in such cost calculations any available state or federal
6-9 funding or incentives for the use of the fuels required under
6-10 Sections 382.133 and 382.134; or
6-11 (5) original equipment vehicles, or vehicles that may
6-12 be converted to operate on an alternative fuel, that meet the
6-13 affected entity's normal requirements and practices of the
6-14 principal business and have been certified by the United States
6-15 Environmental Protection Agency as clean fuel vehicles are not
6-16 available.
6-17 SECTION 6. Section 382.142, Health and Safety Code, is
6-18 amended by amending Subsection (b) and adding Subsections (c)
6-19 through (f) to read as follows:
6-20 (b) [(1)] Rules adopted under this section shall provide for
6-21 the issuance of appropriate program compliance credits to a vehicle
6-22 owner or operator for one [any of the following] or any combination
6-23 of the following actions [thereof]:
6-24 (1) [(A)] the purchase, lease, or acquisition of a
6-25 clean-fuel vehicle which meets more stringent emissions control
7-1 standards than those otherwise required under this Act;
7-2 (2) [(B)] the purchase, lease, or acquisition of
7-3 clean-fuel vehicles in greater numbers than otherwise required
7-4 under Sections 382.133 and 382.134;
7-5 (3) [(C)] the purchase, lease, or acquisition of a
7-6 clean-fuel vehicle in a category not otherwise required by this
7-7 subchapter; and
7-8 (4) [(D)] the purchase, lease, or acquisition of a
7-9 clean-fuel vehicle prior to the dates otherwise required under
7-10 Sections 382.133 and 382.134.
7-11 (c) [(2)] Program compliance credits shall be awarded based
7-12 upon the emissions certification level of the vehicle generating
7-13 the credit. Vehicles which provide greater emissions reductions
7-14 levels will be entitled to a greater number of credits as follows:
7-15 (1) [(A)] LEVs--one credit;
7-16 (2) [(B)] ULEVs--two credits; and
7-17 (3) [(C)] ILEVs and ZEVs--three credits.
7-18 (d) [(3)] Program compliance credits issued for the
7-19 purchase, lease, or other acquisition of a vehicle pursuant to this
7-20 section may be used to demonstrate compliance with the percentage
7-21 requirements of Sections 382.133 and 382.134, they may be banked
7-22 for later use, or they may be traded, sold, or purchased, for use
7-23 by any other person in the same nonattainment area, to demonstrate
7-24 compliance with the percentage requirements of Sections 382.133 and
7-25 382.134.
8-1 (e) Fleet vehicles [(4) Vehicles] converted, purchased,
8-2 leased, or otherwise acquired prior to September 1, 1995 [1998],
8-3 may be counted toward compliance with the applicable fleet
8-4 percentage requirements of Section 382.134 if the vehicles[:]
8-5 [(A)] are capable of operating on a [an
8-6 alternative] fuel or power source recognized by any State of Texas
8-7 fleet fuel program prior to September 1, 1995[;]
8-8 [(B) meet at a minimum the Tier I emissions
8-9 standards pursuant to Section 202 of the federal Clean Air Act, as
8-10 amended (42 U.S.C. Section 7521); and]
8-11 [(C) do not exceed 30 percent of the
8-12 owner/operator's fleet on September 1, 1998].
8-13 (f) [(5)] This section shall not [also] apply to all
8-14 vehicles purchased, leased, or otherwise acquired pursuant to
8-15 Section 2158.001(a), Government Code[:]
8-16 [(A) Section 21.174(c)(1), Education Code;]
8-17 [(B) Section 14(c)(1), Chapter 141, Acts of the
8-18 63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's
8-19 Texas Civil Statutes), as added by Section 8, Chapter 1189, Acts of
8-20 the 71st Legislature, Regular Session, 1989, and amended by Section
8-21 13, Chapter 503, Acts of the 72nd Legislature, Regular Session,
8-22 1991;]
8-23 [(C) Section 20(e)(1), Chapter 683, Acts of the
8-24 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
8-25 Statutes);]
9-1 [(D) Section 6(k)(1), Article 1118z, Revised
9-2 Statutes; and]
9-3 [(E) Section 3.29(a), State Purchasing and
9-4 General Services Act (Article 601b, Vernon's Texas Civil
9-5 Statutes)].
9-6 SECTION 7. Subsection (b), Section 382.143, Health and
9-7 Safety Code, is amended to read as follows:
9-8 (b) Rules adopted under this section shall [comply with the
9-9 United States Environmental Protection Agency's minimum
9-10 requirements for an approvable Mobile Emissions Reduction Credit
9-11 program and shall also] provide for the following program elements:
9-12 (1) program participation shall be as follows:
9-13 (A) entry into the program is voluntary; and
9-14 (B) both fleet owners or operators subject to
9-15 the percentage requirements of Sections 382.133 and 382.134 and
9-16 vehicle owners or operators who are not subject to those percentage
9-17 requirements may generate mobile emissions reduction credits under
9-18 this program, although the board may require a certain minimum
9-19 number of vehicles to participate;
9-20 (2) mobile emissions reduction credits shall be
9-21 calculated on a per-pollutant basis and shall be granted to a
9-22 participating vehicle owner or operator for any of the following:
9-23 (A) purchase, lease, or acquisition of more or
9-24 cleaner vehicles than otherwise required by law; or
9-25 (B) entering into a binding contract with the
10-1 board to purchase, lease, or acquire at some future date more or
10-2 cleaner vehicles than otherwise required by law;
10-3 (3) mobile emissions reduction credit values shall be
10-4 determined in accordance with United States Environmental
10-5 Protection Agency rules and guidance;
10-6 (4) mobile emissions reduction credits may be used as
10-7 follows:
10-8 (A) to demonstrate compliance with any
10-9 applicable mobile source emissions reductions requirements; and
10-10 (B) to satisfy Reasonably Available Control
10-11 Technology and Clean Air Act offset requirements, subject to the
10-12 appropriate trading ratios; and
10-13 (5) all mobile emissions reduction credits generated
10-14 in accordance with this section may, within the same nonattainment
10-15 area, be sold, traded, or banked for later use among fleet vehicle
10-16 owners or other mobile or stationary sources of emissions without
10-17 discount or depreciation of such credits.
10-18 SECTION 8. Section 451.301, Transportation Code, is amended
10-19 by amending Subsections (a) and (b) and adding Subsections (d) and
10-20 (e) to read as follows:
10-21 (a) The board may not purchase or lease a motor vehicle,
10-22 excluding any law enforcement and any emergency vehicle, that is
10-23 not capable of using compressed natural gas or another alternative
10-24 fuel the use of which results in comparably lower emissions of
10-25 oxides of nitrogen, volatile organic compounds, carbon monoxide, or
11-1 particulates or combinations of those materials.
11-2 (b) Except as provided by Subsection (d), after [After]
11-3 August 31, 1996, at least 50 percent of the fleet vehicles of an
11-4 authority must be capable of using compressed natural gas or other
11-5 alternative fuels. In this section, "fleet vehicle" has the
11-6 meaning assigned by Section 382.131(7), Health and Safety Code.
11-7 (d) Vehicles converted, purchased, leased, or otherwise
11-8 acquired prior to September 1, 1999, may be counted toward
11-9 compliance with the fleet percentage requirement of Subsection (b)
11-10 if the vehicles are capable of operating on a fuel or power source
11-11 recognized by any State of Texas fleet or mass transit fuel program
11-12 prior to September 1, 1995, and meet the following emission
11-13 standards:
11-14 (1) for vehicles under 8,500 pounds gross vehicle
11-15 weight rating (GVWR), the federal Tier I emissions standards
11-16 pursuant to Section 202 of the federal Clean Air Act, as amended
11-17 (42 U.S.C. Section 7521); or
11-18 (2) for vehicles over 8,500 pounds gross vehicle
11-19 weight rating (GVWR), the federal emission standards in place at
11-20 the time of their manufacture.
11-21 (e) The percentage requirements of Subsection (b) may be
11-22 met, in whole or in part, through the purchase, lease, or other
11-23 acquisition of program compliance credits pursuant to Section
11-24 382.142, Health and Safety Code, or through the purchase, lease, or
11-25 other acquisition of credits through the Texas Mobile Emissions
12-1 Reduction Credit (MERC) Program established pursuant to Section
12-2 382.143, Health and Safety Code.
12-3 SECTION 9. Subsection (c), Section 451.302, Transportation
12-4 Code, is amended to read as follows:
12-5 (c) A certification under this section must state that:
12-6 (1) the authority's vehicles will be operating
12-7 primarily in an area in which neither the authority nor a supplier
12-8 has or can reasonably be expected to establish a central refueling
12-9 station for compressed natural gas or other alternative fuels; [or]
12-10 (2) the authority is unable to acquire or be provided
12-11 equipment or refueling facilities necessary to operate vehicles
12-12 using compressed natural gas or other alternative fuels at a
12-13 projected cost that is reasonably expected to result in no greater
12-14 net cost than the continued use of traditional gasoline or diesel
12-15 fuel measured over the expected useful life of the equipment or
12-16 facilities supplied; or
12-17 (3) the authority is unable to acquire or be provided
12-18 vehicles certified as low-emission vehicles (LEV) that meet the
12-19 normal requirements of the authority due to unavailability for
12-20 purchase from an original equipment manufacturer or as a
12-21 conversion.
12-22 SECTION 10. Section 452.251, Transportation Code, is amended
12-23 by amending Subsections (a) and (b) and adding Subsections (d) and
12-24 (e) to read as follows:
12-25 (a) An authority may not purchase or lease a motor vehicle,
13-1 excluding any law enforcement and any emergency vehicle, that is
13-2 not capable of using compressed natural gas or another alternative
13-3 fuel the use of which results in comparably lower emissions of
13-4 oxides of nitrogen, volatile organic compounds, carbon monoxide, or
13-5 particulates or combinations of those materials.
13-6 (b) Except as provided by Subsection (d), after [After]
13-7 August 31, 1996, at least 50 percent of the fleet vehicles operated
13-8 by an authority must be capable of using compressed natural gas or
13-9 another alternative fuel. In this section, "fleet vehicle" has the
13-10 meaning assigned by Section 382.131(7), Health and Safety Code.
13-11 (d) Vehicles converted, purchased, leased, or otherwise
13-12 acquired prior to September 1, 1999, may be counted toward
13-13 compliance with the fleet percentage requirement of Subsection (b)
13-14 if the vehicles are capable of operating on a fuel or power source
13-15 recognized by any State of Texas fleet or mass transit fuel program
13-16 prior to September 1, 1995, and meet the following emission
13-17 standards:
13-18 (1) for vehicles under 8,500 pounds gross vehicle
13-19 weight rating (GVWR), the federal Tier I emissions standards
13-20 pursuant to Section 202 of the federal Clean Air Act, as amended
13-21 (42 U.S.C. Section 7521); or
13-22 (2) for vehicles over 8,500 pounds gross vehicle
13-23 weight rating (GVWR), the federal emission standards in place at
13-24 the time of their manufacture.
13-25 (e) The percentage requirements of Subsection (b) may be
14-1 met, in whole or in part, through the purchase, lease, or other
14-2 acquisition of program compliance credits pursuant to Section
14-3 382.142, Health and Safety Code, or through the purchase, lease, or
14-4 other acquisition of credits through the Texas Mobile Emissions
14-5 Reduction Credit (MERC) Program established pursuant to Section
14-6 382.143, Health and Safety Code.
14-7 SECTION 11. Subsection (b), Section 452.252, Transportation
14-8 Code, is amended to read as follows:
14-9 (b) A certification under this section must state that:
14-10 (1) the authority's vehicles will be operating
14-11 primarily in an area in which neither the authority nor a supplier
14-12 has or can reasonably be expected to establish a central refueling
14-13 station for compressed natural gas or other alternative fuels; [or]
14-14 (2) the authority is unable to acquire or be provided
14-15 equipment or refueling facilities necessary to operate vehicles
14-16 using compressed natural gas or other alternative fuels at a
14-17 projected cost that is reasonably expected to result in no greater
14-18 net cost than the continued use of traditional gasoline or diesel
14-19 fuel measured over the expected useful life of the equipment or
14-20 facilities supplied; or
14-21 (3) the authority is unable to acquire or be provided
14-22 vehicles certified as low-emission vehicles (LEV) that meet the
14-23 normal requirements of the authority due to unavailability for
14-24 purchase from an original equipment manufacturer or as a
14-25 conversion.
15-1 SECTION 12. Section 453.251, Transportation Code, is amended
15-2 by amending Subsections (a) and (b) and adding Subsections (d) and
15-3 (e) to read as follows:
15-4 (a) A transit department may not purchase or lease a motor
15-5 vehicle, excluding any law enforcement and any emergency vehicle,
15-6 that is not capable of using compressed natural gas or another
15-7 alternative fuel the use of which results in comparably lower
15-8 emissions of oxides of nitrogen, volatile organic compounds, carbon
15-9 monoxide, or particulates or combinations of those materials.
15-10 (b) Except as provided by Subsection (d), after [After]
15-11 August 31, 1996, at least 50 percent of the fleet vehicles operated
15-12 by a transit department must be capable of using compressed natural
15-13 gas or another alternative fuel. In this section, "fleet vehicle"
15-14 has the meaning assigned by Section 382.131(7), Health and Safety
15-15 Code.
15-16 (d) Vehicles converted, purchased, leased, or otherwise
15-17 acquired prior to September 1, 1999, may be counted toward
15-18 compliance with the fleet percentage requirement of Subsection (b)
15-19 if the vehicles are capable of operating on a fuel or power source
15-20 recognized by any State of Texas fleet or mass transit fuel program
15-21 prior to September 1, 1995, and meet the following emission
15-22 standards:
15-23 (1) for vehicles under 8,500 pounds gross vehicle
15-24 weight rating (GVWR), the federal Tier I emissions standards
15-25 pursuant to Section 202 of the federal Clean Air Act, as amended
16-1 (42 U.S.C. Section 7521); or
16-2 (2) for vehicles over 8,500 pounds gross vehicle
16-3 weight rating (GVWR), the federal emission standards in place at
16-4 the time of their manufacture.
16-5 (e) The percentage requirements of Subsection (b) may be
16-6 met, in whole or in part, through the purchase, lease, or other
16-7 acquisition of program compliance credits pursuant to Section
16-8 382.142, Health and Safety Code, or through the purchase, lease, or
16-9 other acquisition of credits through the Texas Mobile Emissions
16-10 Reduction Credit (MERC) Program established pursuant to Section
16-11 382.143, Health and Safety Code.
16-12 SECTION 13. Subsection (b), Section 453.252, Transportation
16-13 Code, is amended to read as follows:
16-14 (b) A certification under this section must state that:
16-15 (1) the transit department's vehicles will be
16-16 operating primarily in an area in which neither the transit
16-17 department nor a supplier has or can reasonably be expected to
16-18 establish a central refueling station for compressed natural gas or
16-19 other alternative fuels; [or]
16-20 (2) the transit department is unable to acquire or be
16-21 provided equipment or refueling facilities necessary to operate
16-22 vehicles using compressed natural gas or other alternative fuels at
16-23 a projected [project] cost that is reasonably expected to result in
16-24 no greater net cost than the continued use of traditional gasoline
16-25 or diesel fuel measured over the expected useful life of the
17-1 equipment or facilities supplied; or
17-2 (3) the transit department is unable to acquire or be
17-3 provided vehicles certified as low-emission vehicles (LEV) that
17-4 meet the normal requirements of the authority due to unavailability
17-5 for purchase from an original equipment manufacturer or as a
17-6 conversion.
17-7 SECTION 14. This Act takes effect September 1, 1997.
17-8 SECTION 15. The importance of this legislation and the
17-9 crowded condition of the calendars in both houses create an
17-10 emergency and an imperative public necessity that the
17-11 constitutional rule requiring bills to be read on three several
17-12 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 681 passed the Senate on
April 1, 1997, by a viva-voce vote; and that the Senate concurred
in House amendments on May 24, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 681 passed the House, with
amendments, on May 22, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor