By Hope                                               H.B. No. 3284
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to purchasing or leasing requirements for mass transit,
 1-3     local government, private, and state fleet vehicles.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Chapter 382, Health and Safety Code, is amended
 1-6     by adding Subchapter G to read as follows:
 1-7                  SUBCHAPTER G.  TEXAS CLEAN FLEET PROGRAM
 1-8           Sec. 382.144.  DEFINITIONS.  In this subchapter:
 1-9                 (1)  "Affected area" means the following counties:
1-10     Anderson, Angelina, Aransas, Atascosa, Austin, Bastrop, Bee, Bell,
1-11     Bexar, Bosque, Bowie, Brazoria, Brazos, Burleson, Caldwell,
1-12     Calhoun, Camp, Cass, Chambers, Cherokee, Collin, Colorado, Comal,
1-13     Cooke, Coryell, Dallas, De Witt, Delta, Denton, Ellis, El Paso,
1-14     Falls, Fannin, Fayette, Fort Bend, Franklin, Freestone, Galveston,
1-15     Goliad, Gonzales, Grayson, Gregg, Grimes, Guadalupe, Hardin,
1-16     Harris, Harrison, Hays, Henderson, Hill, Hood, Hopkins, Houston,
1-17     Hunt, Jackson, Jasper, Jefferson, Johnson, Karnes, Kaufman, Lamar,
1-18     Lavaca, Lee, Leon, Liberty, Limestone, Live Oak, Madison, Marion,
1-19     Matagorda, McLennan, Milam, Montgomery, Morris, Nacogdoches,
1-20     Navarro, Newton, Nueces,  Orange, Panola, Parker, Polk, Rains, Red
1-21     River, Refugio, Robertson, Rockwall, Rusk, Sabine, San Jacinto, San
1-22     Patricio, San Augustine, Shelby, Smith, Somervell, Tarrant, Titus,
1-23     Travis, Trinity, Tyler, Upshur, Van Zandt, Victoria, Walker,
 2-1     Waller, Washington, Wharton, Williamson, Wilson, Wise, and Wood.
 2-2                 (2)  "Annually" means the 12 month period from
 2-3     September 1 through August 31.
 2-4                 (3)  "Lease" means the use and control of a vehicle for
 2-5     transportation purposes pursuant to a rental contract with a term
 2-6     of 120 days or more.
 2-7                 (4)  "Local government" means a school district,
 2-8     county, municipality, junior college district, river authority, or
 2-9     any other special district, or political subdivision created under
2-10     the state constitution or statutes.   The term does not include a
2-11     mass transit authority or a state agency.
2-12                 (5)  "Mass transit authority" means a transportation or
2-13     transit authority or department established under Chapter 451, 452,
2-14     453, or 457, Transportation Code, that operates a mass transit
2-15     system.
2-16                 (6)  "State agency" means a board, commission,
2-17     department, office, agency, institution of higher education, or
2-18     other governmental entity in the executive, judicial, or
2-19     legislative branch of state government.
2-20                 (7)  "Vehicle" means a self-propelled device designed
2-21     for transporting persons or property on a public highway that is
2-22     required to be registered under Chapter 502, Transportation Code,
2-23     and that has a gross vehicle weight rating of 10,000 pounds or
2-24     less.  The term does not include:
2-25                       (A)  a law enforcement or emergency vehicle;
2-26                       (B)  a vehicle used in the maintenance or repair
 3-1     of underground mass transit facilities that is required by federal
 3-2     law to operate on diesel fuel;
 3-3                       (C)  a vehicle used for vehicle manufacturer
 3-4     product evaluations or tests, including but not limited to vehicles
 3-5     owned or held by a university research department, independent
 3-6     testing laboratory, state agency, or other evaluation facility
 3-7     whose primary purpose is to evaluate performance of vehicles for
 3-8     engineering, research, and development or quality control reasons;
 3-9     or
3-10                       (D)  a vehicle held for sale by vehicle dealers,
3-11     including demonstration vehicles.
3-12           Sec. 382.145.  APPLICABILITY.  (a)  This subchapter applies
3-13     only to:
3-14                 (1)  a state agency that owns, operates, or leases a
3-15     fleet of 15 or more vehicles;
3-16                 (2)  a local government that owns, operates, or leases
3-17     a fleet of 25 or more vehicles in an affected area;
3-18                 (3)  a mass transit authority that owns, operates, or
3-19     leases a fleet of 25 or more vehicles in an affected area; or
3-20                 (4)  any other person not specifically covered under
3-21     this section that owns, operates, or leases a fleet of 25 or more
3-22     vehicles in an affected area.
3-23           Sec. 382.146.  PURCHASING AND LEASING REQUIREMENTS.  (a)  The
3-24     following percentages of vehicles purchased or leased annually, by
3-25     a state agency, mass transit authority, local government, or any
3-26     other person shall not exceed an average of nitrogen oxide
 4-1     standards of Bin 3 under 40 C.F.R. Section 86.1811-04 as published
 4-2     in the February 10, 2000, Federal Register regarding the Tier II
 4-3     exhaust emission standards:
 4-4                 (1)  25 percent of vehicles purchased or leased on or
 4-5     after September 1, 2003;
 4-6                 (2)  50 percent of vehicles purchased or leased on or
 4-7     after September 1, 2004;
 4-8                 (3)  65 percent of vehicles purchased or leased on or
 4-9     after September 1, 2005;
4-10                 (4)  80 percent of vehicles purchased or leased after
4-11     on or after September 1, 2006;
4-12                 (5)  90 percent of vehicles purchased or leased on or
4-13     after September 1, 2007; and
4-14                 (6)  100 percent of vehicles purchased or leased on or
4-15     after September 1, 2008.
4-16           (b)  The commission may waive the requirements of this
4-17     section or reduce the percentage requirements of this section if a
4-18     state agency, local government, mass transit authority, or any
4-19     other person, demonstrates by evidence acceptable to the commission
4-20     that vehicles that meet the specific federal nitrogen oxide
4-21     standard under Section 382.146(a) are not available for purchase or
4-22     lease in the state.
4-23           Sec. 382.147.  ADOPTION OF RULES.  The commission shall adopt
4-24     rules to implement this subchapter.
4-25           Sec. 382.148.  REPORTING REQUIREMENTS.  The commission, by
4-26     rule, shall require state agencies, mass transit authorities, local
 5-1     governments, or any other persons to maintain records and submit
 5-2     reports to demonstrate compliance with this subchapter.
 5-3           Sec. 382.149.  REPORT REQUIRED.  The commission shall examine
 5-4     the feasibility and effectiveness of purchasing or leasing
 5-5     requirements for compression ignition and spark ignition vehicles
 5-6     which have a gross vehicle weight rating of more than 10,000
 5-7     pounds.  The commission shall report findings and recommendations
 5-8     to the legislature by December 1, 2002.
 5-9           Section 382.150.  RELATIONSHIP TO OTHER LAW.  Nothing in this
5-10     subchapter shall be construed to require the purchase or lease of a
5-11     vehicle in violation of the Alternative Fuel Transportation Program
5-12     under the Energy Policy Act of 1992 (Pub. L. No. 102-486) or any
5-13     other applicable federal or state laws.
5-14           SECTION 2.  Effective September 1, 2003, Section 2171.103(b),
5-15     Government Code, is amended as follows:
5-16           (b)  The office may:
5-17                 (1)  establish centralized refueling stations
5-18     throughout the state;
5-19                 (2)  operate regional conversion and repair facilities;
5-20     and
5-21                 (3)  provide all services and support necessary to
5-22     expedite the use of compressed natural gas or other alternative
5-23     fuels by state agencies. [as required by Subchapter A, Chapter
5-24     2158.]
5-25           SECTION 3.  Effective September 1, 2003, Section
5-26     5.178(b)(2)(A), Water Code, is amended as follows:
 6-1                       (A)  the assessments and reports required by
 6-2     Sections 361.0219(c), 361.0232, 361.485, 361.510, and 37.063[, and
 6-3     382.141], Health and Safety Code.
 6-4           SECTION 4.  Effective September 1, 2003, Section 1232.104(a),
 6-5     Government Code, is amended as follows:
 6-6           (a)  If the authority determines that a project is
 6-7     financially viable and sufficient revenue is or will be available,
 6-8     the authority may issue and sell obligations the proceeds of which
 6-9     shall be used for the financing of:
6-10                 [(1)  the conversion of state agency vehicles and other
6-11     sources of substantial energy output to an alternative fuel under
6-12     Subchapter A, Chapter 2158;]
6-13                 (1) [(2)]  the construction, acquisition, or
6-14     maintenance by the commission of fueling stations supplying
6-15     alternative fuels or equipment enhancing the use of engine-driven
6-16     technology to support state agency vehicles and other energy
6-17     applications that use an alternative fuel;
6-18                 (2) [(3)]  the conversion of school district motor
6-19     vehicles and other sources of substantial energy output to an
6-20     alternative fuel;
6-21                 (3) [(4)]  the construction, acquisition, or
6-22     maintenance by a school district of fueling stations supplying
6-23     alternative fuels or equipment enhancing the use of engine-driven
6-24     technology to support school district motor vehicles and other
6-25     energy applications that use an alternative fuel;
6-26                 (4) [(5)]  [the conversion of local mass transit
 7-1     authority or department motor vehicles and other sources of
 7-2     substantial energy output to an alternative fuel under Chapters
 7-3     451, 452, and 453, Transportation Code;]
 7-4                 (5) [(6)]  the construction, acquisition, or
 7-5     maintenance of fueling stations supplying alternative fuels or
 7-6     equipment enhancing the use of engine-driven technology by a local
 7-7     mass transit authority or department to support transit authority
 7-8     or department vehicles and other energy applications that use an
 7-9     alternative fuel;
7-10                 (6) [(7)]  [the conversion of motor vehicles and other
7-11     sources of substantial energy output of a local government, as
7-12     defined by Section 382.003, Health and Safety Code, to an
7-13     alternative fuel under Section 382.134, Health and Safety Code;]
7-14                 (7) [(8)]  the conversion of motor vehicles and other
7-15     sources of substantial energy output of a hospital district or
7-16     authority, a housing authority, or a district or authority created
7-17     under Section 52, Article III, Texas Constitution, or Section 59,
7-18     Article XVI, Texas Constitution, to an alternative fuel;
7-19                 (8) [(9)]  the construction, acquisition, or
7-20     maintenance of fueling stations supplying alternative fuels or
7-21     equipment enhancing the use of engine-driven technology to support
7-22     motor vehicles and other energy applications that use an
7-23     alternative fuel by a county, a municipality, or an entity
7-24     described by Subdivision (7) [(8)]; or
7-25                 (9) [(10)]  a joint venture between the private sector
7-26     and a state agency or political subdivision that is required under
 8-1     law to use an alternative fuel in the agency's or subdivision's
 8-2     vehicles or other energy applications to:
 8-3                       (A)  convert vehicles or other sources of
 8-4     substantial energy output to an alternative fuel;
 8-5                       (B)  develop fueling stations and resources for
 8-6     the supply of alternative fuels and engine-driven applications;
 8-7                       (C)  aid in the distribution of alternative
 8-8     fuels; and
 8-9                       (D)  engage in other projects to facilitate the
8-10     use of alternative fuels.
8-11           SECTION 5.  REPEALER.  Effective September 1, 2003, the
8-12     following laws are repealed:
8-13                 (1)  Subchapter F, Chapter 382, Health and Safety Code;
8-14                 (2)  Subchapter A, Chapter 2158, Texas Government Code;
8-15                 (3)  Subchapter G, Chapter 451, Texas Transportation
8-16     Code;
8-17                 (4)  Subchapter F, Chapter 452, Texas Transportation
8-18     Code;
8-19                 (5)  Subchapter F, Chapter 453, Texas Transportation
8-20     Code; and
8-21                 (6)  Subchapter E, Chapter 457, Texas Transportation
8-22     Code.
8-23           SECTION 6.  Except as otherwise provided, this Act takes
8-24     effect September 1, 2001.  Sections 2, 3, 4, and 5 take effect
8-25     September 1, 2003.