HBA-AMW H.B. 3284 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3284 By: Hope Environmental Regulation 3/25/2001 Introduced BACKGROUND AND PURPOSE Under current law, the responsibility for implementing requirements for the purchasing and leasing of low emission vehicles (LEVs) is not consolidated into one state program. The Texas Natural Resource Conservation Commission is responsible for implementing the Texas Clean Fleet Program, which requires private fleets with more than 25 vehicles, local government fleets with more than 15 vehicles, and transit authorities operating in nonattainment areas to purchase certain percentages of LEVs. The General Services Commission is responsible for implementing LEV requirements for state vehicle fleets with more than 15 vehicles and certain transit authority fleets are responsible for implementing LEV requirements for fleets owned by those transit authorities. In a recent report to the legislature, TNRCC recommended the state adopt a single fleet program based upon more stringent federal emission standards known as Tier II standards. House Bill 3284 repeals law regarding the different programs regulating the purchasing and leasing of LEVs and establishes a single clean-fleet program for purchasing and leasing these vehicles based upon Tier II standards. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Natural Resource Conservation Commission in SECTION 1 (Sections 382.147 and 382.148, Health and Safety Code) of this bill. ANALYSIS House Bill 3284 amends the Health and Safety, Government, and Water codes to modify provisions relating to the purchasing or leasing requirements for mass transit, local government, private, and state fleet vehicles (vehicles). The bill specifies that these provisions apply only to: _a state agency that owns, operates, or leases a fleet of 15 or more vehicles; _a local government that owns, operates, or leases a fleet of 25 or more vehicles in an affected area; _a mass transit authority that owns, operates, or leases a fleet of 25 or more vehicles in an affected area; or _any other person that owns, operates, or leases a fleet of 25 or more vehicles in an affected area (Sec. 382.145, Health and Safety Code). The bill sets forth requirements regarding the percentage of vehicles to be purchased or leased annually by a state agency, mass transit authority, local government, or any other person and requires the emissions standards for the vehicles not to exceed Bin 3 under the Tier II exhaust emission standards. The bill authorizes the Texas Natural Resource Conservation Commission (TNRCC) to waive the requirements or reduce the percentage requirements if a state agency, local government, mass transit authority, or any other person demonstrates by evidence acceptable to TNRCC that the required vehicles are not available for purchase or lease in this state (Sec. 382.146, Health and Safety Code). The bill exempts the following vehicles from these requirements: _a law enforcement or emergency vehicle; _a vehicle used in the maintenance or repair of underground mass transit facilities that is required by federal law to operate on diesel fuel; _a vehicle used for vehicle manufacturer product evaluations or tests, including but not limited to vehicles owned or held by a university research department, independent testing laboratory, state agency, or other evaluation facility whose primary purpose is to evaluate performance of vehicles for engineering, research, and development or quality control reasons; or _a vehicle held for sale by vehicle dealers, including demonstration vehicles. H.B. 3284 requires TNRCC to adopt rules to implement provisions regarding the Texas Clean Fleet Program (program) (Sec. 382.147, Health and Safety Code). The bill requires TNRCC, by rule, to require state agencies, mass transit authorities, local governments, or any other persons to maintain records and submit reports to demonstrate compliance with the program (Sec. 382.148). The bill also requires TNRCC to examine the feasibility and effectiveness of purchasing or leasing requirements for compression ignition and spark ignition vehicles which have a gross vehicle weight rating of more than 10,000 pounds and to report findings and recommendations to the legislature by December 1, 2002 (Sec. 382.149). The bill requires nothing to be construed to require the purchase or lease of a vehicle in violation of the Alternative Fuel Transportation Program or any other applicable federal or state laws (Sec. 382.150). The bill repeals law, effective September 1, 2003, relating to alternative fuels programs, purchasing of passenger vehicles, and alternative fuel use programs for metropolitan rapid transit authorities, regional transport authorities, municipal transit departments, and county mass transit authorities. EFFECTIVE DATE September 1, 2001. The provisions regarding the laws that are repealed by the Act take effect September 1, 2003.