BILL ANALYSIS

H.B. 1467

By: Chisum

Energy Resources

Committee Report (Unamended)

BACKGROUND AND PURPOSE

There are numerous benefits to the state from offering incentives for alternative fuel use, from environmental protection to economic diversification.  However, these incentives are ineffective if vehicles capable of using alternative fuels are purchased but remain mostly dependent on traditional fuels. 

Currently, state agencies are required to purchase vehicle fleets that are capable of using alternative fuel.  These vehicles are often more expensive initially, but result in lower fuel costs over the life of the vehicle, making them fiscally responsible purchases. The existing statutes do not require the alternative fuel capability of these vehicles to be used any proportion of their total drive time, which has resulted in these higher cost vehicles not realizing much savings in fuel costs.  By establishing minimum usage requirements, the state can ensure actual utilization of lower cost alternative fuel sources.

H.B 1467 clarifies language surrounding the qualifying use of alternative fuel vehicles by state agencies.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

H.B. 1467 amends the Government Code to authorize a state agency to purchase or lease a vehicle, designed or used primarily for the transportation of individuals, that has a wheelbase of up to 116 inches or SAE net horsepower of up to 280 if the vehicle will be converted so that it uses, rather than is capable of using, compressed natural gas, liquefied natural gas, liquefied petroleum gas, methanol or methanol/gasoline blends of 85 percent or greater, ethanol or ethanol/gasoline blends of 85 percent or greater, or electricity.

H.B. 1467 prohibits a state agency operating a fleet of more than 15 vehicles, excluding law enforcement and emergency vehicles, from purchasing or leasing a motor vehicle unless that vehicle uses, rather than is capable of using, certain alternative fuels, and require such agencies to have a fleet consisting of vehicles of which at least 50 percent use, rather than are capable of using, certain alternative fuels not later than September 30, 2010, rather than September 1, 1996. 

H.B. 1467 requires a state agency that operates a fleet of more than 15 vehicles to include in its annual financial report to the legislature its progress in achieving the percentage requirements by describing the availability of certain alternative fuels.

H.B. 1467 adds the requirement that a vehicle use certain alternative fuels not less than 80 percent of the time the vehicle is driven for a vehicle to be considered to be using, rather than capable of using, such fuels.

EFFECTIVE DATE

September 1, 2009.