1-1 By: Armbrister S.B. No. 681
1-2 (In the Senate - Filed February 20, 1997; February 25, 1997,
1-3 read first time and referred to Committee on State Affairs;
1-4 March 19, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 12, Nays 0; March 19, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 681 By: Armbrister
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the alternative fuels program.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Subdivision (7), Section 382.131, Health and
1-13 Safety Code, is amended to read as follows:
1-14 (7) "Fleet vehicle" means a vehicle required to be
1-15 registered under Chapter 502, Transportation Code, except a vehicle
1-16 registered under Section 502.006(c), Transportation Code [88,
1-17 General Laws, Acts of the 41st Legislature, 2nd Called Session,
1-18 1929 (Article 6675a-2, Vernon's Texas Civil Statutes)], and that is
1-19 centrally fueled, capable of being centrally fueled, or fueled at
1-20 facilities serving both business customers and the general public.
1-21 The term does not include:
1-22 (A) a [fleet] vehicle that, when not in use, is
1-23 normally parked at the residence of the individual who normally
1-24 [usually] operates it [and that is available to such individual for
1-25 personal use];
1-26 (B) [a fleet vehicle that, when not in use, is
1-27 normally parked at the residence of the individual who usually
1-28 operates it and who does not report to a central location; or]
1-29 [(C)] a [fleet] vehicle that has a gross vehicle
1-30 weight rating of greater than 26,000 pounds; or
1-31 (C) a vehicle used in the maintenance or repair
1-32 of underground mass transit facilities which is required by federal
1-33 law or regulation to operate on diesel fuel [except vehicles owned
1-34 or operated by the state or mass transit authorities].
1-35 SECTION 2. Section 382.132, Health and Safety Code, is
1-36 amended to read as follows:
1-37 Sec. 382.132. METROPOLITAN AREAS AFFECTED. Rules adopted by
1-38 the commission under Sections 382.133 through 382.136 apply only to
1-39 a consolidated metropolitan statistical area or a metropolitan
1-40 statistical area with a population of 350,000 or more that, under
1-41 the federal national ambient air quality standards provided by
1-42 Section 181, federal Clean Air Act, as amended (42 U.S.C. Section
1-43 7511 and Table 1), is a serious, severe, or extreme nonattainment
1-44 area [has not met federal ambient air quality standards for ozone,
1-45 carbon monoxide, oxides of nitrogen, or particulates].
1-46 SECTION 3. Subsection (b), Section 382.133, Health and
1-47 Safety Code, is amended to read as follows:
1-48 (b)(1) Rules adopted under this section must require a mass
1-49 transit authority to have 50 percent of the authority's fleet
1-50 vehicles capable of using alternative fuel.
1-51 (2) Vehicles converted, purchased, leased, or
1-52 otherwise acquired prior to September 1, 1999, may be counted by
1-53 the commission toward compliance with the fleet percentage
1-54 requirement and rules adopted by the commission pursuant to this
1-55 section if the vehicles are capable of operating on a fuel or power
1-56 source recognized by any State of Texas fleet or mass transit fuel
1-57 program prior to September 1, 1995, and meet the following emission
1-58 standards:
1-59 (A) for vehicles under 8,500 pounds gross
1-60 vehicle weight rating (GVWR), the federal Tier I emissions
1-61 standards pursuant to Section 202 of the federal Clean Air Act, as
1-62 amended (42 U.S.C. Section 7521); or
1-63 (B) for vehicles over 8,500 pounds gross vehicle
1-64 weight rating (GVWR), the federal emission standards in place at
2-1 the time of their manufacture.
2-2 (3) The percentage requirement of this section may be
2-3 met, in whole or in part, through the purchase, lease, or other
2-4 acquisition of program compliance credits pursuant to Section
2-5 382.142 or through the purchase, lease, or other acquisition of
2-6 credits through the Texas Mobile Emissions Reduction Credit (MERC)
2-7 Program established pursuant to Section 381.143 [its fleet vehicles
2-8 able to operate on an alternative fuel according to the following
2-9 schedule:]
2-10 [(1) not later than September 1, 1994, at least 30
2-11 percent of the vehicles; and]
2-12 [(2) not later than September 1, 1996, at least 50
2-13 percent of the vehicles].
2-14 SECTION 4. Section 382.134, Health and Safety Code, is
2-15 amended by amending Subsections (c) and (d) and adding Subsection
2-16 (f) to read as follows:
2-17 (c) Rules adopted by the board must require a local
2-18 government or private person to have a proportion of the person's
2-19 newly purchased fleet vehicles and a proportion of the fleet
2-20 vehicles in the person's total fleet able to operate on an
2-21 alternative fuel according to the following schedule:
2-22 (1) 30 percent of fleet vehicles purchased after
2-23 September 1, 1998, or at least 10 percent of the fleet vehicles in
2-24 the total fleet as of September 1, 1998;
2-25 (2) 50 percent of fleet vehicles purchased after
2-26 September 1, 2000[, and at least 20 percent of the fleet vehicles
2-27 in the total fleet as of September 1, 2000]; and
2-28 (3) 70 [90] percent of light-duty fleet vehicles
2-29 purchased after September 1, 2002, and 50 [at least 45] percent of
2-30 the heavy-duty fleet vehicles purchased after [in the total fleet
2-31 as of] September 1, 2002.
2-32 (d) Rules adopted by the board may not require a local
2-33 government or private person to purchase a fleet vehicle able to
2-34 operate on an alternative fuel if the person maintains a proportion
2-35 of 70 [90] percent or more alternative fuel vehicles in the
2-36 person's fleet.
2-37 (f) The requirements imposed by this section may be met by
2-38 the conversion of currently owned or newly purchased
2-39 gasoline-fueled or diesel-fueled vehicles to operate on an
2-40 alternative fuel. For purposes of this section, the conversion of
2-41 a vehicle to operate on an alternative fuel shall be treated the
2-42 same as the purchase of a vehicle able to operate on an alternative
2-43 fuel. Nothing in this section shall be construed to require
2-44 conversion.
2-45 SECTION 5. Subsection (a), Section 382.136, Health and
2-46 Safety Code, is amended to read as follows:
2-47 (a) The commission may make exceptions to rules adopted
2-48 under Sections 382.133 and 382.134 if:
2-49 (1) a firm engaged in fixed price contracts with
2-50 public works agencies can demonstrate that compliance with the
2-51 requirements of those sections would result in substantial economic
2-52 harm to the firm under a contract entered into before September 1,
2-53 1997;
2-54 (2) an alternative fuel that meets the normal
2-55 requirements of the principal business of the affected entity is
2-56 not available in the area in which the vehicles are to be operated
2-57 [the commission determines that the affected vehicles will be
2-58 operating primarily in an area that does not have or cannot
2-59 reasonably be expected to establish adequate refueling for the
2-60 fuels required under Sections 382.133 and 382.134];
2-61 (3) the affected entity is unable to secure financing
2-62 provided by or arranged through the proposed supplier or suppliers
2-63 of the fuels required under Sections 382.133 and 382.134 sufficient
2-64 to cover the additional costs of such fueling; [or]
2-65 (4) the projected net costs attributable to fueling
2-66 for conversion or replacement and operation of conventionally
2-67 fueled vehicles or engines with those capable of operating on the
2-68 fuels required under Sections 382.133 and 382.134 reasonably are
2-69 [is] expected [not] to exceed comparable costs for conventional
3-1 vehicles [operating on reformulated gasoline and diesel] measured
3-2 over the expected useful life of such vehicles or engines and after
3-3 including in such cost calculations any available state or federal
3-4 funding or incentives for the use of the fuels required under
3-5 Sections 382.133 and 382.134; or
3-6 (5) original equipment vehicles, or vehicles that may
3-7 be converted to operate on an alternative fuel, that meet the
3-8 affected entity's normal requirements and practices of the
3-9 principal business and have been certified by the United States
3-10 Environmental Protection Agency as a clean fuel vehicle are not
3-11 available.
3-12 SECTION 6. Section 382.142, Health and Safety Code, is
3-13 amended by amending Subsection (b) and adding Subsections (c)
3-14 through (f) to read as follows:
3-15 (b) [(1)] Rules adopted under this section shall provide for
3-16 the issuance of appropriate program compliance credits to a vehicle
3-17 owner or operator for one [any of the following] or any combination
3-18 of the following actions [thereof]:
3-19 (1) [(A)] the purchase, lease, or acquisition of a
3-20 clean-fuel vehicle which meets more stringent emissions control
3-21 standards than those otherwise required under this Act;
3-22 (2) [(B)] the purchase, lease, or acquisition of
3-23 clean-fuel vehicles in greater numbers than otherwise required
3-24 under Sections 382.133 and 382.134;
3-25 (3) [(C)] the purchase, lease, or acquisition of a
3-26 clean-fuel vehicle in a category not otherwise required by this
3-27 subchapter; and
3-28 (4) [(D)] the purchase, lease, or acquisition of a
3-29 clean-fuel vehicle prior to the dates otherwise required under
3-30 Sections 382.133 and 382.134.
3-31 (c) [(2)] Program compliance credits shall be awarded based
3-32 upon the emissions certification level of the vehicle generating
3-33 the credit. Vehicles which provide greater emissions reductions
3-34 levels will be entitled to a greater number of credits as follows:
3-35 (1) [(A)] LEVs--one credit;
3-36 (2) [(B)] ULEVs--two credits; and
3-37 (3) [(C)] ILEVs and ZEVs--three credits.
3-38 (d) [(3)] Program compliance credits issued for the
3-39 purchase, lease, or other acquisition of a vehicle pursuant to this
3-40 section may be used to demonstrate compliance with the percentage
3-41 requirements of Sections 382.133 and 382.134, they may be banked
3-42 for later use, or they may be traded, sold, or purchased, for use
3-43 by any other person in the same nonattainment area, to demonstrate
3-44 compliance with the percentage requirements of Sections 382.133 and
3-45 382.134.
3-46 (e) Fleet vehicles [(4) Vehicles] converted, purchased,
3-47 leased, or otherwise acquired prior to September 1, 1995 [1998],
3-48 may be counted toward compliance with the applicable fleet
3-49 percentage requirements of Section 382.134 if the vehicles[:]
3-50 [(A)] are capable of operating on a [an
3-51 alternative] fuel or power source recognized by any State of Texas
3-52 fleet fuel program prior to September 1, 1995[;]
3-53 [(B) meet at a minimum the Tier I emissions
3-54 standards pursuant to Section 202 of the federal Clean Air Act, as
3-55 amended (42 U.S.C. Section 7521); and]
3-56 [(C) do not exceed 30 percent of the
3-57 owner/operator's fleet on September 1, 1998].
3-58 (f) [(5)] This section shall not [also] apply to all
3-59 vehicles purchased, leased, or otherwise acquired pursuant to
3-60 Section 2158.001(a), Government Code[:]
3-61 [(A) Section 21.174(c)(1), Education Code;]
3-62 [(B) Section 14(c)(1), Chapter 141, Acts of the
3-63 63rd Legislature, Regular Session, 1973 (Article 1118x, Vernon's
3-64 Texas Civil Statutes), as added by Section 8, Chapter 1189, Acts of
3-65 the 71st Legislature, Regular Session, 1989, and amended by Section
3-66 13, Chapter 503, Acts of the 72nd Legislature, Regular Session,
3-67 1991;]
3-68 [(C) Section 20(e)(1), Chapter 683, Acts of the
3-69 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
4-1 Statutes);]
4-2 [(D) Section 6(k)(1), Article 1118z, Revised
4-3 Statutes; and]
4-4 [(E) Section 3.29(a), State Purchasing and
4-5 General Services Act (Article 601b, Vernon's Texas Civil
4-6 Statutes)].
4-7 SECTION 7. Subsection (b), Section 382.143, Health and
4-8 Safety Code, is amended to read as follows:
4-9 (b) Rules adopted under this section shall [comply with the
4-10 United States Environmental Protection Agency's minimum
4-11 requirements for an approvable Mobile Emissions Reduction Credit
4-12 program and shall also] provide for the following program elements:
4-13 (1) program participation shall be as follows:
4-14 (A) entry into the program is voluntary; and
4-15 (B) both fleet owners or operators subject to
4-16 the percentage requirements of Sections 382.133 and 382.134 and
4-17 vehicle owners or operators who are not subject to those percentage
4-18 requirements may generate mobile emissions reduction credits under
4-19 this program, although the board may require a certain minimum
4-20 number of vehicles to participate;
4-21 (2) mobile emissions reduction credits shall be
4-22 calculated on a per-pollutant basis and shall be granted to a
4-23 participating vehicle owner or operator for any of the following:
4-24 (A) purchase, lease, or acquisition of more or
4-25 cleaner vehicles than otherwise required by law; or
4-26 (B) entering into a binding contract with the
4-27 board to purchase, lease, or acquire at some future date more or
4-28 cleaner vehicles than otherwise required by law;
4-29 (3) mobile emissions reduction credit values shall be
4-30 determined in accordance with United States Environmental
4-31 Protection Agency rules and guidance;
4-32 (4) mobile emissions reduction credits may be used as
4-33 follows:
4-34 (A) to demonstrate compliance with any
4-35 applicable mobile source emissions reductions requirements; and
4-36 (B) to satisfy Reasonably Available Control
4-37 Technology and Clean Air Act offset requirements, subject to the
4-38 appropriate trading ratios; and
4-39 (5) all mobile emissions reduction credits generated
4-40 in accordance with this section may, within the same nonattainment
4-41 area, be sold, traded, or banked for later use among fleet vehicle
4-42 owners or other mobile or stationary sources of emissions without
4-43 discount or depreciation of such credits.
4-44 SECTION 8. Section 451.301, Transportation Code, is amended
4-45 by amending Subsections (a) and (b) and adding Subsections (d) and
4-46 (e) to read as follows:
4-47 (a) The board may not purchase or lease a motor vehicle,
4-48 excluding any law enforcement and any emergency vehicle, that is
4-49 not capable of using compressed natural gas or another alternative
4-50 fuel the use of which results in comparably lower emissions of
4-51 oxides of nitrogen, volatile organic compounds, carbon monoxide, or
4-52 particulates or combinations of those materials.
4-53 (b) Except as provided by Subsection (d), after [After]
4-54 August 31, 1996, at least 50 percent of the fleet vehicles of an
4-55 authority must be capable of using compressed natural gas or other
4-56 alternative fuels. In this section, "fleet vehicle" has the
4-57 meaning assigned by Section 382.131(7), Health and Safety Code.
4-58 (d) Vehicles converted, purchased, leased, or otherwise
4-59 acquired prior to September 1, 1999, may be counted toward
4-60 compliance with the fleet percentage requirement of Subsection (b)
4-61 if the vehicles are capable of operating on a fuel or power source
4-62 recognized by any State of Texas fleet or mass transit fuel program
4-63 prior to September 1, 1995, and meet the following emission
4-64 standards:
4-65 (1) for vehicles under 8,500 pounds gross vehicle
4-66 weight rating (GVWR), the federal Tier I emissions standards
4-67 pursuant to Section 202 of the federal Clean Air Act, as amended
4-68 (42 U.S.C. Section 7521); or
4-69 (2) for vehicles over 8,500 pounds gross vehicle
5-1 weight rating (GVWR), the federal emission standards in place at
5-2 the time of their manufacture.
5-3 (e) The percentage requirements of Subsection (b) may be
5-4 met, in whole or in part, through the purchase, lease, or other
5-5 acquisition of program compliance credits pursuant to Section
5-6 382.142, Health and Safety Code, or through the purchase, lease, or
5-7 other acquisition of credits through the Texas Mobile Emissions
5-8 Reduction Credit (MERC) Program established pursuant to Section
5-9 382.143, Health and Safety Code.
5-10 SECTION 9. Subsection (c), Section 451.302, Transportation
5-11 Code, is amended to read as follows:
5-12 (c) A certification under this section must state that:
5-13 (1) the authority's vehicles will be operating
5-14 primarily in an area in which neither the authority nor a supplier
5-15 has or can reasonably be expected to establish a central refueling
5-16 station for compressed natural gas or other alternative fuels; [or]
5-17 (2) the authority is unable to acquire or be provided
5-18 equipment or refueling facilities necessary to operate vehicles
5-19 using compressed natural gas or other alternative fuels at a
5-20 projected cost that is reasonably expected to result in no greater
5-21 net cost than the continued use of traditional gasoline or diesel
5-22 fuel measured over the expected useful life of the equipment or
5-23 facilities supplied; or
5-24 (3) the authority is unable to acquire or be provided
5-25 vehicles certified as low-emission vehicles (LEV) that meet the
5-26 normal requirements of the authority due to unavailability for
5-27 purchase from an original equipment manufacturer or as a
5-28 conversion.
5-29 SECTION 10. Section 452.251, Transportation Code, is amended
5-30 by amending Subsections (a) and (b) and adding Subsections (d) and
5-31 (e) to read as follows:
5-32 (a) An authority may not purchase or lease a motor vehicle,
5-33 excluding any law enforcement and any emergency vehicle, that is
5-34 not capable of using compressed natural gas or another alternative
5-35 fuel the use of which results in comparably lower emissions of
5-36 oxides of nitrogen, volatile organic compounds, carbon monoxide, or
5-37 particulates or combinations of those materials.
5-38 (b) Except as provided by Subsection (d), after [After]
5-39 August 31, 1996, at least 50 percent of the fleet vehicles operated
5-40 by an authority must be capable of using compressed natural gas or
5-41 another alternative fuel. In this section, "fleet vehicle" has the
5-42 meaning assigned by Section 382.131(7), Health and Safety Code.
5-43 (d) Vehicles converted, purchased, leased, or otherwise
5-44 acquired prior to September 1, 1999, may be counted toward
5-45 compliance with the fleet percentage requirement of Subsection (b)
5-46 if the vehicles are capable of operating on a fuel or power source
5-47 recognized by any State of Texas fleet or mass transit fuel program
5-48 prior to September 1, 1995, and meet the following emission
5-49 standards:
5-50 (1) for vehicles under 8,500 pounds gross vehicle
5-51 weight rating (GVWR), the federal Tier I emissions standards
5-52 pursuant to Section 202 of the federal Clean Air Act, as amended
5-53 (42 U.S.C. Section 7521); or
5-54 (2) for vehicles over 8,500 pounds gross vehicle
5-55 weight rating (GVWR), the federal emission standards in place at
5-56 the time of their manufacture.
5-57 (e) The percentage requirements of Subsection (b) may be
5-58 met, in whole or in part, through the purchase, lease, or other
5-59 acquisition of program compliance credits pursuant to Section
5-60 382.142, Health and Safety Code, or through the purchase, lease, or
5-61 other acquisition of credits through the Texas Mobile Emissions
5-62 Reduction Credit (MERC) Program established pursuant to Section
5-63 382.143, Health and Safety Code.
5-64 SECTION 11. Subsection (b), Section 452.252, Transportation
5-65 Code, is amended to read as follows:
5-66 (b) A certification under this section must state that:
5-67 (1) the authority's vehicles will be operating
5-68 primarily in an area in which neither the authority nor a supplier
5-69 has or can reasonably be expected to establish a central refueling
6-1 station for compressed natural gas or other alternative fuels; [or]
6-2 (2) the authority is unable to acquire or be provided
6-3 equipment or refueling facilities necessary to operate vehicles
6-4 using compressed natural gas or other alternative fuels at a
6-5 projected cost that is reasonably expected to result in no greater
6-6 net cost than the continued use of traditional gasoline or diesel
6-7 fuel measured over the expected useful life of the equipment or
6-8 facilities supplied; or
6-9 (3) the authority is unable to acquire or be provided
6-10 vehicles certified as low-emission vehicles (LEV) that meet the
6-11 normal requirements of the authority due to unavailability for
6-12 purchase from an original equipment manufacturer or as a
6-13 conversion.
6-14 SECTION 12. Section 453.251, Transportation Code, is amended
6-15 by amending Subsections (a) and (b) and adding Subsections (d) and
6-16 (e) to read as follows:
6-17 (a) A transit department may not purchase or lease a motor
6-18 vehicle, excluding any law enforcement and any emergency vehicle,
6-19 that is not capable of using compressed natural gas or another
6-20 alternative fuel the use of which results in comparably lower
6-21 emissions of oxides of nitrogen, volatile organic compounds, carbon
6-22 monoxide, or particulates or combinations of those materials.
6-23 (b) Except as provided by Subsection (d), after [After]
6-24 August 31, 1996, at least 50 percent of the fleet vehicles operated
6-25 by a transit department must be capable of using compressed natural
6-26 gas or another alternative fuel. In this section, "fleet vehicle"
6-27 has the meaning assigned by Section 382.131(7), Health and Safety
6-28 Code.
6-29 (d) Vehicles converted, purchased, leased, or otherwise
6-30 acquired prior to September 1, 1999, may be counted toward
6-31 compliance with the fleet percentage requirement of Subsection (b)
6-32 if the vehicles are capable of operating on a fuel or power source
6-33 recognized by any State of Texas fleet or mass transit fuel program
6-34 prior to September 1, 1995, and meet the following emission
6-35 standards:
6-36 (1) for vehicles under 8,500 pounds gross vehicle
6-37 weight rating (GVWR), the federal Tier I emissions standards
6-38 pursuant to Section 202 of the federal Clean Air Act, as amended
6-39 (42 U.S.C. Section 7521); or
6-40 (2) for vehicles over 8,500 pounds gross vehicle
6-41 weight rating (GVWR), the federal emission standards in place at
6-42 the time of their manufacture.
6-43 (e) The percentage requirements of Subsection (b) may be
6-44 met, in whole or in part, through the purchase, lease, or other
6-45 acquisition of program compliance credits pursuant to Section
6-46 382.142, Health and Safety Code, or through the purchase, lease, or
6-47 other acquisition of credits through the Texas Mobile Emissions
6-48 Reduction Credit (MERC) Program established pursuant to Section
6-49 382.143, Health and Safety Code.
6-50 SECTION 13. Subsection (b), Section 453.252, Transportation
6-51 Code, is amended to read as follows:
6-52 (b) A certification under this section must state that:
6-53 (1) the transit department's vehicles will be
6-54 operating primarily in an area in which neither the transit
6-55 department nor a supplier has or can reasonably be expected to
6-56 establish a central refueling station for compressed natural gas or
6-57 other alternative fuels; [or]
6-58 (2) the transit department is unable to acquire or be
6-59 provided equipment or refueling facilities necessary to operate
6-60 vehicles using compressed natural gas or other alternative fuels at
6-61 a projected [project] cost that is reasonably expected to result in
6-62 no greater net cost than the continued use of traditional gasoline
6-63 or diesel fuel measured over the expected useful life of the
6-64 equipment or facilities supplied; or
6-65 (3) the transit department is unable to acquire or be
6-66 provided vehicles certified as low-emission vehicles (LEV) that
6-67 meet the normal requirements of the authority due to unavailability
6-68 for purchase from an original equipment manufacturer or as a
6-69 conversion.
7-1 SECTION 14. This Act takes effect September 1, 1997.
7-2 SECTION 15. The importance of this legislation and the
7-3 crowded condition of the calendars in both houses create an
7-4 emergency and an imperative public necessity that the
7-5 constitutional rule requiring bills to be read on three several
7-6 days in each house be suspended, and this rule is hereby suspended.
7-7 * * * * *