| TO: | Honorable Kip Averitt, Chair, Senate Committee on Natural Resources |
| FROM: | John S. O'Brien, Director, Legislative Budget Board |
| IN RE: | HB1467 by Chisum (Relating to the purchase or lease by state agencies of vehicles using alternative fuels.), As Engrossed |
The bill would amend the Government Code to require agencies to purchase or lease certain vehicles only if they use the following alternative fuels: compressed natural gas, liquefied natural gas (Propane), liquefied petroleum gas, methanol or methanol/gasoline blends of 85 percent or greater, ethanol or ethanol/gasoline blends of 85 percent (E85) or greater, or electricity.
This requirement would apply to agencies purchasing or leasing certain large vehicles used primarily for the transportation of individuals and to agencies operating a fleet of more than 15 vehicles, excluding law enforcement and emergency vehicles. By September 30, 2010, agencies operating a fleet of more than 15 vehicles, excluding law enforcement and emergency vehicles, would be required to have a fleet consisting of vehicles of which at least 50 percent use the same alternative fuels specified above.
The bill would require agencies to include in their annual financial report the availability of alternative fuels, and also would transfer from the Commission on Environmental Quality to the Comptroller the authority to modify the 50 percent requirement.
The Department of Public Safety (DPS) reported that compressed natural gas fueled vehicles are not a viable option due to conversion costs, the extremely low number of fueling stations, and decreased passenger/cargo space. Propane fueled vehicles are also not a good option due to the conversion costs, warranty issues, and decreased passenger/cargo space.
DPS reported that utilizing commercially available E85 vehicles is the best option for complying with the requirement that 50 percent of non-emergency vehicles use alternative fuel. Currently DPS has 108 vehicles in the staff transport fleet, and of these, 57 percent are E85 capable. However, due to the limited number of E85 fueling stations, these vehicles are currently using regular gasoline. An E85 fueling station would need to be installed at Austin's headquarters, at $156,000, to have the best chance of complying with the legislation. Also, the agency would pay an additional $7,000 per year for the E85 fuel.
The Texas Youth Commission reported that the capital cost to convert 26 vehicles combined with the potential fuel savings results in a cost of approximately $100,000 per year from FY2010 to FY2014.
The Texas Department of Criminal Justice estimated it would cost $645,000 ($500 per conversion kit) to convert at least 50 percent of its fleet to using alternative fuels.
| Source Agencies: | 305 General Land Office and Veterans' Land Board, 405 Department of Public Safety, 601 Department of Transportation, 694 Youth Commission, 696 Department of Criminal Justice, 802 Parks and Wildlife Department
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| LBB Staff: | JOB, SD, PJK
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