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Amend SB 21 on third reading by adding the following
appropriately numbered section and renumbering subsequent sections
accordingly:
SECTION ___. (a) Chapter 447, Government Code, is amended by
adding Sections 447.010 and 447.011 to read as follows:
Sec. 447.010. FUEL SAVINGS FOR STATE AGENCIES. (a) In this
section and in Section 447.011:
(1) "Cost-effective" means resulting in fuel
consumption reduction with a projected savings in fuel cost over a
one-year period that exceeds the cost of purchasing and using a
technology.
(2) "Fuel-saving technology" means a:
(A) device containing no lead metal that is
installed on a motor vehicle or non-road diesel and that has been
proven to reduce fuel consumption per mile or per hour of operation
by at least five percent;
(B) fuel additive registered in accordance with
40 C.F.R. Part 79 that contains no known mutagenic materials and
that has been proven to reduce fuel consumption per mile or per hour
of operation by at least five percent; or
(C) fuel registered in accordance with 40 C.F.R.
Part 79 that contains no known mutagenic materials and that has been
proven to reduce fuel consumption per mile or per hour of operation
by at least five percent.
(3) "Motor vehicle" and "non-road diesel" have the
meanings assigned by Section 386.101, Health and Safety Code.
(4) "Proven fuel-saving technologies" means
technologies shown to reduce fuel use by at least five percent in:
(A) a United States Environmental Protection
Agency fuel economy test performed at a laboratory recognized by
that agency and under federal test protocols;
(B) a fuel economy test performed in accordance
with protocols and at testing laboratories or facilities recognized
by the state energy conservation office, the Texas Commission on
Environmental Quality, or the United States Environmental
Protection Agency; or
(C) a field demonstration performed in
accordance with Section 447.011.
(b) A state agency with 10 or more motor vehicles or
non-road diesels shall reduce the total fuel consumption of the
vehicles or diesels by at least five percent from fiscal year 2002
consumption levels through the use of cost-effective proven
fuel-saving technologies.
(c) A state agency may delay reducing fuel use as described
in this section until a list of proven fuel-saving technologies is
provided by the state energy conservation office as provided by
Section 447.011.
(d) A state agency may not purchase or use as a fuel-saving
technology a technology that:
(1) is known to increase engine emissions above the
levels established by the United States Environmental Protection
Agency;
(2) may be reasonably concluded to degrade air quality
or human health or to negatively impact the environment; or
(3) is known to negatively affect the manufacturer's
warranty of a motor vehicle or non-road diesel.
(e) A state agency may purchase cost-effective proven
fuel-saving technologies out of the agency's fuel budget.
(f) A state agency shall evaluate similar fuel-saving
technologies competitively.
(g) A state agency may condition a purchase of a fuel-saving
technology on the seller's agreement to refund the cost of the
technology if the agency determines it to be ineffective at
reducing fuel use by at least five percent before the 91st day after
the date the technology is first used by the agency.
(h) A state agency may use a proven fuel-saving technology
that the agency determines is cost-effective and may use a
fuel-saving technology in applications that provide other
benefits, including emissions reductions.
(i) A state agency may establish a program for agency
employees voluntarily to:
(1) purchase fuel-saving technologies; and
(2) document reductions in fuel savings and air
emissions.
(j) A state agency shall report to the state energy
conservation office annually, on a form provided by the office, on
the state agency's efforts and progress under this section.
Sec. 447.011. FIELD DEMONSTRATIONS. (a) Under the
direction of the state energy conservation office, the Texas
Department of Transportation shall demonstrate the effectiveness
of at least four fuel-saving technologies on a combined maximum of
100 motor vehicles or non-road diesels in accordance with this
section to determine the fuel-saving technologies that may
cost-effectively reduce fuel consumption and save state revenue.
(b) The Texas Department of Transportation shall select
varying ages and types of motor vehicles and non-road diesels to
demonstrate the fuel-saving technologies and shall give a
preference to high-use motor vehicles and non-road diesels in the
selection.
(c) The Texas Department of Transportation shall
demonstrate the performance of fuel-saving technologies by:
(1) assessing a technology's performance in the normal
course of operations of motor vehicles or non-road diesels; and
(2) performing controlled field tests.
(d) In selecting the technologies to be evaluated, the state
energy conservation office shall:
(1) consult with governmental and business
organizations that are currently using fuel-saving technology;
(2) consider technologies that are proven fuel-saving
technologies that have demonstrated fuel economy benefits of five
percent or more in field tests or recorded use data of government
organizations or businesses that operate fleets; and
(3) determine whether each technology selected has the
potential to be cost-effective.
(e) A fuel-saving technology may be disqualified from being
demonstrated or used if it is known to reduce engine performance,
reduce the life of the engine, require additional maintenance
expenses, or degrade air quality.
(f) The Texas Commission on Environmental Quality, The
University of Texas Center for Transportation Research, the
University of Houston Diesel Emissions Center, or another agency
may be designated to assist with executing the demonstration,
compiling the results, estimating the potential average fuel
savings of the technologies in different applications, or preparing
a final report.
(g) On completing the demonstration described by this
section the state energy conservation office shall rank the
fuel-saving technologies based on their fuel savings, other cost
savings, and overall cost-effectiveness. The office shall:
(1) list recommended applications of the
technologies;
(2) document other negative or positive effects; and
(3) prepare a concise report of these findings.
(h) The Texas Commission on Environmental Quality shall
obtain information on any fuel-saving technology that appears to
reduce particulate matter, oxides of nitrogen, carbon monoxide, or
hydrocarbon emissions. The Texas Commission on Environmental
Quality may use this information to fund the United States
Environmental Protection Agency verification of a technology in
accordance with Section 387.003, Health and Safety Code.
(i) The state energy conservation office shall provide the
report prepared under Subsection (g) to each state agency with 10 or
more motor vehicles or non-road diesels and to the Legislative
Budget Board.
(j) The demonstration and associated reports described by
this section shall be completed not later than September 1, 2004.
(k) All results of a demonstration project under this
section shall be made public on the state energy conservation
office's Internet website.
(l) The state energy conservation office shall provide
quarterly an updated list of all proven fuel-saving technologies on
its Internet website.
(m) Money from the state highway fund may not be used for the
purchase, installation, maintenance, or operation of the
fuel-saving technologies being assessed or subjected to controlled
field tests under this section. Repairs to state equipment
resulting from demonstrations of fuel-saving technologies must be
paid from the same funds used to implement this section.
(b) Chapter 2113, Government Code, is amended by adding
Subchapter E to read as follows:
SUBCHAPTER E. RESTRICTIONS ON CAPITAL EXPENDITURES
Sec. 2113.301. PREFERENCE FOR FINANCING CERTAIN CAPITAL
EXPENDITURES WITH MONEY GENERATED BY UTILITY COST SAVINGS CONTRACT.
(a) In this section:
(1) "State facility purpose" means a purpose related
to:
(A) the maintenance of a state-owned or
state-leased building or facility; or
(B) a project as defined by Section 2166.001,
including a project described by Section 2166.003.
(2) "Utility cost savings contract" means a contract
under Subchapter I, Chapter 2166, or other law that guarantees
utility cost savings for energy conservation measures to reduce
energy or water consumption or to reduce operating costs of
governmental facilities.
(b) Before a state agency may use appropriated money to make
a capital expenditure for a state facility purpose, the state
agency must determine whether the expenditure could be financed
with money generated by a utility cost savings contract.
(c) If it is practicable to do so, a state agency that is
using appropriated money must finance a capital expenditure for a
state facility purpose with money generated by a utility cost
savings contract.
(d) If it is not practicable for a state agency that is using
appropriated money to finance a capital expenditure for a state
facility purpose with money generated by a utility cost savings
contract, the state agency must provide justification to the
comptroller for the capital expenditure.
(e) In determining under Subsection (b) whether a capital
expenditure could be financed by a utility cost savings contract, a
state agency must consider whether utility cost savings generated
by any department of that agency could be a potential means of
financing a capital expenditure for any department of that agency.
Money generated by a utility cost savings in one department of a
state agency may be used to finance capital expenditures for a state
facility purpose in any department of that agency.
(f) This section does not apply to an institution of higher
education as defined by Section 61.003, Education Code.
(g) This section does not apply to a capital expenditure for
a state facility purpose that requires expeditious action to:
(1) prevent a hazard to life, health, safety, welfare,
or property; or
(2) avoid undue additional cost to the state.
(h) The Texas Building and Procurement Commission shall
appoint a task force to develop design recommendations that are to
be used for state facilities and that encourage rain harvesting and
water recycling by state agencies using appropriated money to
finance a capital expenditure for a state facility purpose.