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
1-24 (C) a vehicle used in the maintenance or repair
2-1 of underground mass transit facilities which is required by federal
2-2 law or regulation to operate on diesel fuel [except vehicles owned
2-3 or operated by the state or mass transit authorities].
2-4 (10) "Urban bus" means any motor bus or municipal bus
2-5 required to be registered under Chapter 502, Transportation Code,
2-6 which is owned or operated by a mass transit authority.
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. (a) Rules
2-10 adopted by the commission under Sections 382.133 through 382.136
2-11 apply only to a consolidated metropolitan statistical area or a
2-12 metropolitan statistical area with a population of 350,000 or more
2-13 that, under the federal national ambient air quality standards
2-14 provided by Section 181, federal Clean Air Act, as amended (42
2-15 U.S.C. Section 7511 and Table 1), is a serious, severe, or extreme
2-16 nonattainment area [has not met federal ambient air quality
2-17 standards for ozone, carbon monoxide, oxides of nitrogen, or
2-18 particulates].
2-19 (b) Notwithstanding the provisions of Subsection (a), the
2-20 commission may establish a clean fuel vehicle program for covered
2-21 fleets in counties where not otherwise required in response to a
2-22 formal request by resolutions adopted by the county and the most
2-23 populous municipality within the county according to the most
2-24 recent federal decennial census. Such request may originate from
2-25 any county or municipality declared to be in violation of or
2-26 seeking to avoid being declared in violation of federal ambient air
2-27 quality standards.
3-1 SECTION 3. Subsection (b), Section 382.133, Health and
3-2 Safety Code, is amended to read as follows:
3-3 (b)(1) Rules adopted under this section must require a mass
3-4 transit authority to have 50 percent of the authority's fleet
3-5 vehicles capable of using alternative fuel.
3-6 (2) Vehicles converted, purchased, leased, or
3-7 otherwise acquired prior to September 1, 1999, may be counted by
3-8 the commission toward compliance with the fleet percentage
3-9 requirement and rules adopted by the commission pursuant to this
3-10 section if the vehicles are capable of operating on a fuel or power
3-11 source recognized by any State of Texas fleet or mass transit fuel
3-12 program prior to September 1, 1995, and meet the following emission
3-13 standards:
3-14 (A) for vehicles under 8,500 pounds gross
3-15 vehicle weight rating (GVWR), the federal Tier I emissions
3-16 standards pursuant to Section 202 of the federal Clean Air Act, as
3-17 amended (42 U.S.C. Section 7521); or
3-18 (B) for vehicles over 8,500 pounds gross vehicle
3-19 weight rating (GVWR), the federal emission standards in place at
3-20 the time of their manufacture.
3-21 (3) The percentage requirement of this section may be
3-22 met, in whole or in part, through the purchase, lease, or other
3-23 acquisition of program compliance credits pursuant to Section
3-24 382.142 or through the purchase, lease, or other acquisition of
3-25 credits through the Texas Mobile Emissions Reduction Credit (MERC)
3-26 Program established pursuant to Section 381.143 [its fleet vehicles
3-27 able to operate on an alternative fuel according to the following
4-1 schedule:]
4-2 [(1) not later than September 1, 1994, at least 30
4-3 percent of the vehicles; and]
4-4 [(2) not later than September 1, 1996, at least 50
4-5 percent of the vehicles].
4-6 SECTION 4. Section 382.134, Health and Safety Code, is
4-7 amended by amending Subsections (c) and (d) and adding Subsection
4-8 (f) to read as follows:
4-9 (c) Rules adopted by the board must require a local
4-10 government or private person to have a proportion of the person's
4-11 newly purchased fleet vehicles and a proportion of the fleet
4-12 vehicles in the person's total fleet able to operate on an
4-13 alternative fuel according to the following schedule:
4-14 (1) 30 percent of fleet vehicles purchased after
4-15 September 1, 1998, or at least 10 percent of the fleet vehicles in
4-16 the total fleet as of September 1, 1998;
4-17 (2) 50 percent of fleet vehicles purchased after
4-18 September 1, 2000[, and at least 20 percent of the fleet vehicles
4-19 in the total fleet as of September 1, 2000]; and
4-20 (3) 70 [90] percent of light-duty fleet vehicles
4-21 purchased after September 1, 2002, and 50 [at least 45] percent of
4-22 the heavy-duty fleet vehicles purchased after [in the total fleet
4-23 as of] September 1, 2002.
4-24 (d) Rules adopted by the board may not require a local
4-25 government or private person to purchase a fleet vehicle able to
4-26 operate on an alternative fuel if the person maintains a proportion
4-27 of 70 [90] percent or more alternative fuel vehicles in the
5-1 person's fleet.
5-2 (f) The requirements imposed by this section may be met by
5-3 the conversion of currently owned or newly purchased
5-4 gasoline-fueled or diesel-fueled vehicles to operate on an
5-5 alternative fuel. For purposes of this section, the conversion of
5-6 a vehicle to operate on an alternative fuel shall be treated the
5-7 same as the purchase of a vehicle able to operate on an alternative
5-8 fuel. Nothing in this section shall be construed to require
5-9 conversion.
5-10 SECTION 5. Subsection (a), Section 382.136, Health and
5-11 Safety Code, is amended to read as follows:
5-12 (a) The commission may make exceptions to rules adopted
5-13 under Sections 382.133 and 382.134 if:
5-14 (1) a firm engaged in fixed price contracts with
5-15 public works agencies can demonstrate that compliance with the
5-16 requirements of those sections would result in substantial economic
5-17 harm to the firm under a contract entered into before September 1,
5-18 1997;
5-19 (2) an alternative fuel that meets the normal
5-20 requirements of the principal business of the affected entity is
5-21 not available in the area in which the vehicles are to be operated
5-22 [the commission determines that the affected vehicles will be
5-23 operating primarily in an area that does not have or cannot
5-24 reasonably be expected to establish adequate refueling for the
5-25 fuels required under Sections 382.133 and 382.134];
5-26 (3) the affected entity is unable to secure financing
5-27 provided by or arranged through the proposed supplier or suppliers
6-1 of the fuels required under Sections 382.133 and 382.134 sufficient
6-2 to cover the additional costs of such fueling; [or]
6-3 (4) the projected net costs attributable to fueling
6-4 for conversion or replacement and operation of conventionally
6-5 fueled vehicles or engines with those capable of operating on the
6-6 fuels required under Sections 382.133 and 382.134 reasonably are
6-7 [is] expected [not] to exceed comparable costs for conventional
6-8 vehicles [operating on reformulated gasoline and diesel] measured
6-9 over the expected useful life of such vehicles or engines and after
6-10 including in such cost calculations any available state or federal
6-11 funding or incentives for the use of the fuels required under
6-12 Sections 382.133 and 382.134; or
6-13 (5) original equipment vehicles, or vehicles that may
6-14 be converted to operate on an alternative fuel, that meet the
6-15 affected entity's normal requirements and practices of the
6-16 principal business and have been certified by the United States
6-17 Environmental Protection Agency as a clean fuel vehicle are not
6-18 available.
6-19 SECTION 6. Section 382.142, Health and Safety Code, is
6-20 amended by amending Subsection (b) and adding Subsections (c)
6-21 through (f) to read as follows:
6-22 (b) [(1)] Rules adopted under this section shall provide for
6-23 the issuance of appropriate program compliance credits to a vehicle
6-24 owner or operator for one [any of the following] or any combination
6-25 of the following actions [thereof]:
6-26 (1) [(A)] the purchase, lease, or acquisition of a
6-27 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.
7-26 (e) Fleet vehicles [(4) Vehicles] converted, purchased,
7-27 leased, or otherwise acquired prior to September 1, 1995 [1998],
8-1 may be counted toward compliance with the applicable fleet
8-2 percentage requirements of Section 382.134 if the vehicles[:]
8-3 [(A)] are capable of operating on a [an
8-4 alternative] fuel or power source recognized by any State of Texas
8-5 fleet fuel program prior to September 1, 1995[;]
8-6 [(B) meet at a minimum the Tier I emissions
8-7 standards pursuant to Section 202 of the federal Clean Air Act, as
8-8 amended (42 U.S.C. Section 7521); and]
8-9 [(C) do not exceed 30 percent of the
8-10 owner/operator's fleet on September 1, 1998].
8-11 (f) [(5)] This section shall not [also] apply to all
8-12 vehicles purchased, leased, or otherwise acquired pursuant to
8-13 Section 2158.001(a), Government Code[:]
8-14 [(A) Section 21.174(c)(1), Education Code;]
8-15 [(B) Section 14(c)(1), Chapter 141, Acts of the
8-16 63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's
8-17 Texas Civil Statutes), as added by Section 8, Chapter 1189, Acts of
8-18 the 71st Legislature, Regular Session, 1989, and amended by Section
8-19 13, Chapter 503, Acts of the 72nd Legislature, Regular Session,
8-20 1991;]
8-21 [(C) Section 20(e)(1), Chapter 683, Acts of the
8-22 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
8-23 Statutes);]
8-24 [(D) Section 6(k)(1), Article 1118z, Revised
8-25 Statutes; and]
8-26 [(E) Section 3.29(a), State Purchasing and
8-27 General Services Act (Article 601b, Vernon's Texas Civil
9-1 Statutes)].
9-2 SECTION 7. Subsection (b), Section 382.143, Health and
9-3 Safety Code, is amended to read as follows:
9-4 (b) Rules adopted under this section shall [comply with the
9-5 United States Environmental Protection Agency's minimum
9-6 requirements for an approvable Mobile Emissions Reduction Credit
9-7 program and shall also] provide for the following program elements:
9-8 (1) program participation shall be as follows:
9-9 (A) entry into the program is voluntary; and
9-10 (B) both fleet owners or operators subject to
9-11 the percentage requirements of Sections 382.133 and 382.134 and
9-12 vehicle owners or operators who are not subject to those percentage
9-13 requirements may generate mobile emissions reduction credits under
9-14 this program, although the board may require a certain minimum
9-15 number of vehicles to participate;
9-16 (2) mobile emissions reduction credits shall be
9-17 calculated on a per-pollutant basis and shall be granted to a
9-18 participating vehicle owner or operator for any of the following:
9-19 (A) purchase, lease, or acquisition of more or
9-20 cleaner vehicles than otherwise required by law; or
9-21 (B) entering into a binding contract with the
9-22 board to purchase, lease, or acquire at some future date more or
9-23 cleaner vehicles than otherwise required by law;
9-24 (3) mobile emissions reduction credit values shall be
9-25 determined in accordance with United States Environmental
9-26 Protection Agency rules and guidance;
9-27 (4) mobile emissions reduction credits may be used as
10-1 follows:
10-2 (A) to demonstrate compliance with any
10-3 applicable mobile source emissions reductions requirements; and
10-4 (B) to satisfy Reasonably Available Control
10-5 Technology and Clean Air Act offset requirements, subject to the
10-6 appropriate trading ratios; and
10-7 (5) all mobile emissions reduction credits generated
10-8 in accordance with this section may, within the same nonattainment
10-9 area, be sold, traded, or banked for later use among fleet vehicle
10-10 owners or other mobile or stationary sources of emissions without
10-11 discount or depreciation of such credits.
10-12 SECTION 8. Section 451.301, Transportation Code, is amended
10-13 by amending Subsections (a) and (b) and adding Subsections (d) and
10-14 (e) to read as follows:
10-15 (a) The board may not purchase or lease a motor vehicle,
10-16 excluding any law enforcement and any emergency vehicle, that is
10-17 not capable of using compressed natural gas or another alternative
10-18 fuel the use of which results in comparably lower emissions of
10-19 oxides of nitrogen, volatile organic compounds, carbon monoxide, or
10-20 particulates or combinations of those materials.
10-21 (b) Except as provided by Subsection (d), after [After]
10-22 August 31, 1996, at least 50 percent of the fleet vehicles of an
10-23 authority must be capable of using compressed natural gas or other
10-24 alternative fuels. In this section, "fleet vehicle" has the
10-25 meaning assigned by Section 382.131(7), Health and Safety Code.
10-26 (d) Vehicles converted, purchased, leased, or otherwise
10-27 acquired prior to September 1, 1999, may be counted toward
11-1 compliance with the fleet percentage requirement of Subsection (b)
11-2 if the vehicles are capable of operating on a fuel or power source
11-3 recognized by any State of Texas fleet or mass transit fuel program
11-4 prior to September 1, 1995, and meet the following emission
11-5 standards:
11-6 (1) for vehicles under 8,500 pounds gross vehicle
11-7 weight rating (GVWR), the federal Tier I emissions standards
11-8 pursuant to Section 202 of the federal Clean Air Act, as amended
11-9 (42 U.S.C. Section 7521); or
11-10 (2) for vehicles over 8,500 pounds gross vehicle
11-11 weight rating (GVWR), the federal emission standards in place at
11-12 the time of their manufacture.
11-13 (e) The percentage requirements of Subsection (b) may be
11-14 met, in whole or in part, through the purchase, lease, or other
11-15 acquisition of program compliance credits pursuant to Section
11-16 382.142, Health and Safety Code, or through the purchase, lease, or
11-17 other acquisition of credits through the Texas Mobile Emissions
11-18 Reduction Credit (MERC) Program established pursuant to Section
11-19 382.143, Health and Safety Code.
11-20 SECTION 9. Subsection (c), Section 451.302, Transportation
11-21 Code, is amended to read as follows:
11-22 (c) A certification under this section must state that:
11-23 (1) the authority's vehicles will be operating
11-24 primarily in an area in which neither the authority nor a supplier
11-25 has or can reasonably be expected to establish a central refueling
11-26 station for compressed natural gas or other alternative fuels; [or]
11-27 (2) the authority is unable to acquire or be provided
12-1 equipment or refueling facilities necessary to operate vehicles
12-2 using compressed natural gas or other alternative fuels at a
12-3 projected cost that is reasonably expected to result in no greater
12-4 net cost than the continued use of traditional gasoline or diesel
12-5 fuel measured over the expected useful life of the equipment or
12-6 facilities supplied; or
12-7 (3) the authority is unable to acquire or be provided
12-8 vehicles certified as low-emission vehicles (LEV) that meet the
12-9 normal requirements of the authority due to unavailability for
12-10 purchase from an original equipment manufacturer or as a
12-11 conversion.
12-12 SECTION 10. Section 452.251, Transportation Code, is amended
12-13 by amending Subsections (a) and (b) and adding Subsections (d) and
12-14 (e) to read as follows:
12-15 (a) An authority may not purchase or lease a motor vehicle,
12-16 excluding any law enforcement and any emergency vehicle, that is
12-17 not capable of using compressed natural gas or another alternative
12-18 fuel the use of which results in comparably lower emissions of
12-19 oxides of nitrogen, volatile organic compounds, carbon monoxide, or
12-20 particulates or combinations of those materials.
12-21 (b) Except as provided by Subsection (d), after [After]
12-22 August 31, 1996, at least 50 percent of the fleet vehicles operated
12-23 by an authority must be capable of using compressed natural gas or
12-24 another alternative fuel. In this section, "fleet vehicle" has the
12-25 meaning assigned by Section 382.131(7), Health and Safety Code.
12-26 (d) Vehicles converted, purchased, leased, or otherwise
12-27 acquired prior to September 1, 1999, may be counted toward
13-1 compliance with the fleet percentage requirement of Subsection (b)
13-2 if the vehicles are capable of operating on a fuel or power source
13-3 recognized by any State of Texas fleet or mass transit fuel program
13-4 prior to September 1, 1995, and meet the following emission
13-5 standards:
13-6 (1) for vehicles under 8,500 pounds gross vehicle
13-7 weight rating (GVWR), the federal Tier I emissions standards
13-8 pursuant to Section 202 of the federal Clean Air Act, as amended
13-9 (42 U.S.C. Section 7521); or
13-10 (2) for vehicles over 8,500 pounds gross vehicle
13-11 weight rating (GVWR), the federal emission standards in place at
13-12 the time of their manufacture.
13-13 (e) The percentage requirements of Subsection (b) may be
13-14 met, in whole or in part, through the purchase, lease, or other
13-15 acquisition of program compliance credits pursuant to Section
13-16 382.142, Health and Safety Code, or through the purchase, lease, or
13-17 other acquisition of credits through the Texas Mobile Emissions
13-18 Reduction Credit (MERC) Program established pursuant to Section
13-19 382.143, Health and Safety Code.
13-20 SECTION 11. Subsection (b), Section 452.252, Transportation
13-21 Code, is amended to read as follows:
13-22 (b) A certification under this section must state that:
13-23 (1) the authority's vehicles will be operating
13-24 primarily in an area in which neither the authority nor a supplier
13-25 has or can reasonably be expected to establish a central refueling
13-26 station for compressed natural gas or other alternative fuels; [or]
13-27 (2) the authority is unable to acquire or be provided
14-1 equipment or refueling facilities necessary to operate vehicles
14-2 using compressed natural gas or other alternative fuels at a
14-3 projected cost that is reasonably expected to result in no greater
14-4 net cost than the continued use of traditional gasoline or diesel
14-5 fuel measured over the expected useful life of the equipment or
14-6 facilities supplied; or
14-7 (3) the authority is unable to acquire or be provided
14-8 vehicles certified as low-emission vehicles (LEV) that meet the
14-9 normal requirements of the authority due to unavailability for
14-10 purchase from an original equipment manufacturer or as a
14-11 conversion.
14-12 SECTION 12. Section 453.251, Transportation Code, is amended
14-13 by amending Subsections (a) and (b) and adding Subsections (d) and
14-14 (e) to read as follows:
14-15 (a) A transit department may not purchase or lease a motor
14-16 vehicle, excluding any law enforcement and any emergency vehicle,
14-17 that is not capable of using compressed natural gas or another
14-18 alternative fuel the use of which results in comparably lower
14-19 emissions of oxides of nitrogen, volatile organic compounds, carbon
14-20 monoxide, or particulates or combinations of those materials.
14-21 (b) Except as provided by Subsection (d), after [After]
14-22 August 31, 1996, at least 50 percent of the fleet vehicles operated
14-23 by a transit department must be capable of using compressed natural
14-24 gas or another alternative fuel. In this section, "fleet vehicle"
14-25 has the meaning assigned by Section 382.131(7), Health and Safety
14-26 Code.
14-27 (d) Vehicles converted, purchased, leased, or otherwise
15-1 acquired prior to September 1, 1999, may be counted toward
15-2 compliance with the fleet percentage requirement of Subsection (b)
15-3 if the vehicles are capable of operating on a fuel or power source
15-4 recognized by any State of Texas fleet or mass transit fuel program
15-5 prior to September 1, 1995, and meet the following emission
15-6 standards:
15-7 (1) for vehicles under 8,500 pounds gross vehicle
15-8 weight rating (GVWR), the federal Tier I emissions standards
15-9 pursuant to Section 202 of the federal Clean Air Act, as amended
15-10 (42 U.S.C. Section 7521); or
15-11 (2) for vehicles over 8,500 pounds gross vehicle
15-12 weight rating (GVWR), the federal emission standards in place at
15-13 the time of their manufacture.
15-14 (e) The percentage requirements of Subsection (b) may be
15-15 met, in whole or in part, through the purchase, lease, or other
15-16 acquisition of program compliance credits pursuant to Section
15-17 382.142, Health and Safety Code, or through the purchase, lease, or
15-18 other acquisition of credits through the Texas Mobile Emissions
15-19 Reduction Credit (MERC) Program established pursuant to Section
15-20 382.143, Health and Safety Code.
15-21 SECTION 13. Subsection (b), Section 453.252, Transportation
15-22 Code, is amended to read as follows:
15-23 (b) A certification under this section must state that:
15-24 (1) the transit department's vehicles will be
15-25 operating primarily in an area in which neither the transit
15-26 department nor a supplier has or can reasonably be expected to
15-27 establish a central refueling station for compressed natural gas or
16-1 other alternative fuels; [or]
16-2 (2) the transit department is unable to acquire or be
16-3 provided equipment or refueling facilities necessary to operate
16-4 vehicles using compressed natural gas or other alternative fuels at
16-5 a projected [project] cost that is reasonably expected to result in
16-6 no greater net cost than the continued use of traditional gasoline
16-7 or diesel fuel measured over the expected useful life of the
16-8 equipment or facilities supplied; or
16-9 (3) the transit department is unable to acquire or be
16-10 provided vehicles certified as low-emission vehicles (LEV) that
16-11 meet the normal requirements of the authority due to unavailability
16-12 for purchase from an original equipment manufacturer or as a
16-13 conversion.
16-14 SECTION 14. This Act takes effect September 1, 1997.
16-15 SECTION 15. The importance of this legislation and the
16-16 crowded condition of the calendars in both houses create an
16-17 emergency and an imperative public necessity that the
16-18 constitutional rule requiring bills to be read on three several
16-19 days in each house be suspended, and this rule is hereby suspended.