77R12296 JAT-F                           
         By Hope                                               H.B. No. 3284
         Substitute the following for H.B. No. 3284:
         By Bonnen                                         C.S.H.B. No. 3284
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to emissions requirements for certain motor vehicles in a
 1-3     fleet.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 1232.104(a), Government Code, is amended
 1-6     to read as follows:
 1-7           (a)  If the authority determines that a project is
 1-8     financially viable and sufficient revenue is or will be available,
 1-9     the authority may issue and sell obligations the proceeds of which
1-10     shall be used for the financing of:
1-11                 (1)  the conversion of state agency vehicles and other
1-12     sources of substantial energy output to an alternative fuel [under
1-13     Subchapter A, Chapter 2158];
1-14                 (2)  the construction, acquisition, or maintenance by
1-15     the commission of fueling stations supplying alternative fuels or
1-16     equipment enhancing the use of engine-driven technology to support
1-17     state agency vehicles and other energy applications that use an
1-18     alternative fuel;
1-19                 (3)  the conversion of school district motor vehicles
1-20     and other sources of substantial energy output to an alternative
1-21     fuel;
1-22                 (4)  the construction, acquisition, or maintenance by a
1-23     school district of fueling stations supplying alternative fuels or
1-24     equipment enhancing the use of engine-driven technology to support
 2-1     school district motor vehicles and other energy applications that
 2-2     use an alternative fuel;
 2-3                 (5)  the conversion of local mass transit authority or
 2-4     department motor vehicles and other sources of substantial energy
 2-5     output to an alternative fuel [under Chapters 451, 452, and 453,
 2-6     Transportation Code];
 2-7                 (6)  the construction, acquisition, or maintenance of
 2-8     fueling stations supplying alternative fuels or equipment enhancing
 2-9     the use of engine-driven technology by a local mass transit
2-10     authority or department to support transit authority or department
2-11     vehicles and other energy applications that use an alternative
2-12     fuel;
2-13                 (7)  the conversion of motor vehicles and other sources
2-14     of substantial energy output of a county, a municipality, or a
2-15     public health district established under Chapter 121, [local
2-16     government, as defined by Section 382.003,] Health and Safety Code,
2-17     to an alternative fuel [under Section 382.134, Health and Safety
2-18     Code];
2-19                 (8)  []the conversion of motor vehicles and other sources
2-20     of substantial energy output of a hospital district or authority, a
2-21     housing authority, or a district or authority created under Section
2-22     52, Article III, Texas Constitution, or Section 59, Article XVI,
2-23     Texas Constitution, to an alternative fuel;
2-24                 (9)  the construction, acquisition, or maintenance of
2-25     fueling stations supplying alternative fuels or equipment enhancing
2-26     the use of engine-driven technology to support motor vehicles and
2-27     other energy applications that use an alternative fuel by a county,
 3-1     a municipality, or an entity described by Subdivision (8); or
 3-2                 (10)  a joint venture between the private sector and a
 3-3     state agency or political subdivision that is required under law to
 3-4     use an alternative fuel in the agency's or subdivision's vehicles
 3-5     or other energy applications to:
 3-6                       (A)  convert vehicles or other sources of
 3-7     substantial energy output to an alternative fuel;
 3-8                       (B)  develop fueling stations and resources for
 3-9     the supply of alternative fuels and engine-driven applications;
3-10                       (C)  aid in the distribution of alternative
3-11     fuels; and
3-12                       (D)  engage in other projects to facilitate the
3-13     use of alternative fuels.
3-14           SECTION 2. Section 2171.103(b), Government Code, is amended
3-15     to read as follows:
3-16           (b)  The office may:
3-17                 (1)  establish centralized refueling stations
3-18     throughout the state;
3-19                 (2)  operate regional conversion and repair facilities;
3-20     and
3-21                 (3)  provide all services and support necessary to
3-22     expedite the use of compressed natural gas or other alternative
3-23     fuels by state agencies [as required by Subchapter A, Chapter
3-24     2158].
3-25           SECTION 3. Chapter 382, Health and Safety Code, is amended by
3-26     adding Subchapter G to read as follows:
3-27                  SUBCHAPTER G.  TEXAS CLEAN FLEET PROGRAM
 4-1           Sec. 382.151.  DEFINITIONS. In this subchapter:
 4-2                 (1)  "Affected area" means the following counties:
 4-3     Anderson, Angelina, Aransas, Atascosa, Austin, Bastrop, Bee, Bell,
 4-4     Bexar, Bosque, Bowie, Brazoria, Brazos, Burleson, Caldwell,
 4-5     Calhoun, Camp, Cass, Chambers, Cherokee, Collin, Colorado, Comal,
 4-6     Cooke, Coryell, Dallas, De Witt, Delta, Denton, Ellis, El Paso,
 4-7     Falls, Fannin, Fayette, Fort Bend, Franklin, Freestone, Galveston,
 4-8     Goliad, Gonzales, Grayson, Gregg, Grimes, Guadalupe, Hardin,
 4-9     Harris, Harrison, Hays, Henderson, Hill, Hood, Hopkins, Houston,
4-10     Hunt, Jackson, Jasper, Jefferson, Johnson, Karnes, Kaufman, Lamar,
4-11     Lavaca, Lee, Leon, Liberty, Limestone, Live Oak, Madison, Marion,
4-12     Matagorda, McLennan, Milam, Montgomery, Morris, Nacogdoches,
4-13     Navarro, Newton, Nueces,  Orange, Panola, Parker, Polk, Rains, Red
4-14     River, Refugio, Robertson, Rockwall, Rusk, Sabine, San Jacinto, San
4-15     Patricio, San Augustine, Shelby, Smith, Somervell, Tarrant, Titus,
4-16     Travis, Trinity, Tyler, Upshur, Van Zandt, Victoria, Walker,
4-17     Waller, Washington, Wharton, Williamson, Wilson, Wise, and Wood.
4-18                 (2)  "Annually" means the 12-month period from
4-19     September 1 through August 31.
4-20                 (3)  "Lease" means the exclusive use and control of a
4-21     motor vehicle pursuant to a contractual agreement for a term of 120
4-22     days or more for consideration.
4-23                 (4)  "Local government" means a school district,
4-24     county, municipality, junior college district, river authority, or
4-25     any other special district, or political subdivision created under
4-26     the constitution or a statute of this state.  The term does not
4-27     include a mass transit authority or a state agency.
 5-1                 (5)  "Mass transit authority" means a transportation or
 5-2     transit authority or a department established under Chapter 451,
 5-3     452, 453, or 457, Transportation Code, that operates a mass transit
 5-4     system.
 5-5                 (6)  "Motor vehicle" means a self-propelled device
 5-6     designed to transport persons or property on a highway that is
 5-7     required to be registered under Chapter 502, Transportation Code,
 5-8     and that has a gross vehicle weight rating of 10,000 pounds or
 5-9     less.  The term does not include:
5-10                       (A)  a motor vehicle used exclusively for law
5-11     enforcement or emergency purposes;
5-12                       (B)  a motor vehicle used in the maintenance or
5-13     repair of underground mass transit facilities that is required by
5-14     federal law to operate on diesel fuel;
5-15                       (C)  a motor vehicle used for manufacturer
5-16     product evaluations or tests, including a motor vehicle owned or
5-17     held by a university research department, independent testing
5-18     laboratory, another evaluation facility, or a state agency whose
5-19     primary purpose is to evaluate performance of motor vehicles for
5-20     engineering, research, and development or quality control reasons;
5-21     or
5-22                       (D)  a motor vehicle held for sale by a motor
5-23     vehicle dealer, including a demonstration vehicle.
5-24                 (7)  "State agency" means a board, commission,
5-25     department, office, agency, institution of higher education, or
5-26     other governmental entity in the executive, judicial, or
5-27     legislative branch of state government.
 6-1           Sec. 382.152.  APPLICABILITY.  This subchapter applies only
 6-2     to:
 6-3                 (1)  a state agency that owns, operates, or leases a
 6-4     fleet of 15 or more motor vehicles in this state;
 6-5                 (2)  a local government that owns, operates, or leases
 6-6     a fleet of 25 or more motor vehicles in an affected area;
 6-7                 (3)  a mass transit authority that owns, operates, or
 6-8     leases a fleet of 25 or more vehicles in an affected area; or
 6-9                 (4)  any other person who owns, operates, or leases a
6-10     fleet of 25 or more motor vehicles.
6-11           Sec. 382.153.  PURCHASING AND LEASING REQUIREMENTS. (a)  The
6-12     following percentages of motor vehicles purchased or leased
6-13     annually by a state agency, mass transit authority, local
6-14     government, or other person may not exceed an average of oxides of
6-15     nitrogen standards of bin 3, 40 C.F.R. 86.1811-04 as published in
6-16     the February 10, 2000, Federal Register for Tier 2 exhaust emission
6-17     standards:
6-18                 (1)  25 percent of vehicles purchased or leased on or
6-19     after September 1, 2003;
6-20                 (2)  50 percent of vehicles purchased or leased on or
6-21     after September 1, 2004;
6-22                 (3)  65 percent of vehicles purchased or leased on or
6-23     after September 1, 2005;
6-24                 (4)  80 percent of vehicles purchased or leased on or
6-25     after September 1, 2006;
6-26                 (5)  90 percent of vehicles purchased or leased on or
6-27     after September 1, 2007; and
 7-1                 (6)  100 percent of vehicles purchased or leased on or
 7-2     after September 1, 2008.
 7-3           (b)  A state agency, mass transit authority, local
 7-4     government, or other person may purchase or lease a motor vehicle
 7-5     that is converted to a fuel or power source other than gasoline or
 7-6     diesel to satisfy the percentage requirements under this section.
 7-7           (c)  All motor vehicles purchased or leased under this
 7-8     section must be certified to meet the federal Tier 2 exhaust
 7-9     emission bin standards.
7-10           (d)  The commission may waive the requirements of this
7-11     section or reduce the percentage requirements of this section if:
7-12                 (1)  the state agency, mass transit authority, local
7-13     government, or any other person demonstrates by evidence acceptable
7-14     to the commission that motor vehicles that meet the specific
7-15     average exhaust emission standard for oxides of nitrogen under
7-16     Subsection (a) are not available for purchase or lease in this
7-17     state; or
7-18                 (2)  a mass transit authority demonstrates by evidence
7-19     acceptable to the commission that complying with the requirements
7-20     would unduly compromise a public transportation alternative that
7-21     reduces motor vehicle miles travelled.
7-22           Sec. 382.154.  ADOPTION OF RULES. The commission shall adopt
7-23     rules to implement this subchapter.
7-24           Sec. 382.155.  REPORTING REQUIREMENTS. The commission by rule
7-25     shall require each state agency, mass transit authority, local
7-26     government, or other person to whom this subchapter applies to
7-27     maintain records and submit reports to demonstrate compliance with
 8-1     this subchapter.
 8-2           Sec. 382.156.  RELATIONSHIP TO OTHER LAW. This subchapter
 8-3     does not require the purchase or lease of a motor vehicle in
 8-4     violation of the alternative fuel transportation program under the
 8-5     Energy Policy Act of 1992 (Pub. L. No. 102-486), as amended, or any
 8-6     other applicable federal or state law.
 8-7           SECTION 4. Section 113.287(e), Natural Resources Code, is
 8-8     amended to read as follows:
 8-9           (e)  A state agency, county, municipality, school district,
8-10     or mass transit authority or department is eligible to receive a
8-11     loan, grant, or other disbursement under this subchapter to carry
8-12     out an eligible conversion or infrastructure project regarding LPG
8-13     or another environmentally beneficial fuel [to comply with fuel
8-14     requirements provided by or by rules adopted under:]
8-15                 [(1)  Subchapter F, Chapter 382, Health and Safety
8-16     Code;]
8-17                 [(2)  Subchapter A, Chapter 2158, Government Code;]
8-18                 [(3)  Subchapter C, Chapter 2171, Government Code;]
8-19                 [(4)  Subchapter G, Chapter 451, Transportation Code;]
8-20                 [(5)  Subchapter F, Chapter 452, Transportation Code;
8-21     or]
8-22                 [(6)  Subchapter F, Chapter 453, Transportation Code].
8-23           SECTION 5. Section 5.178(b), Water Code, is amended to read
8-24     as follows:
8-25           (b)  The report due by December 1 of an even-numbered year
8-26     must [shall] include, in addition:
8-27                 (1)  the commission's recommendations for necessary and
 9-1     desirable legislation; and
 9-2                 (2)  the following reports:
 9-3                       (A)  the assessments and reports required by
 9-4     Sections 361.0219(c), 361.0232, [361.485,] 361.510, and 371.063,
 9-5     [and 382.141,] Health and Safety Code; and
 9-6                       (B)  the reports required by Section 26.0135(d)
 9-7     of this code and Section 5.02, Chapter 133, Acts of the 69th
 9-8     Legislature, Regular Session, 1985.
 9-9           SECTION 6. The following laws are repealed:
9-10                 (1)  Subchapter A, Chapter 2158, Government Code;
9-11                 (2)  Subchapter F, Chapter 382, Health and Safety Code;
9-12                 (3)  Subchapter G, Chapter 451, Transportation Code;
9-13                 (4)  Subchapter F, Chapter 452, Transportation Code;
9-14                 (5)  Subchapter F, Chapter 453, Transportation Code;
9-15     and
9-16                 (6)  Subchapter E, Chapter 457, Transportation Code.
9-17           SECTION 7. The Texas Natural Resource Conservation Commission
9-18     shall examine the feasibility and effectiveness of fleet program
9-19     requirements similar to the requirements under Subchapter G,
9-20     Chapter 382, Health and Safety Code, as added by this Act, for
9-21     motor vehicles that have a gross vehicle weight rating of more than
9-22     10,000 pounds.  The commission shall report its findings and
9-23     recommendations to the legislature by December 1, 2002.
9-24           SECTION 8. (a)  Except as otherwise provided by Subsection
9-25     (b) of this section, this Act takes effect September 1, 2001.
9-26           (b)  Sections 1, 2, 4, 5, and 6 of this Act take effect
9-27     September 1, 2003.