HBA-AMW C.S.H.B. 3284 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3284
By: Hope
Environmental Regulation
4/17/2001
Committee Report (Substituted)



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. C.S.H.B. 3284 repeals law regarding programs
regulating the purchasing and leasing of LEVs and establishes a single
clean fleet program for purchasing and leasing these vehicles based on 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 3 (Sections 382.154 and 382.155, Health and Safety
Code) of this bill. 

ANALYSIS

C.S.H.B. 3284 amends the Health and Safety, Government, Natural Resources,
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 motor
vehicles; 

 _a local government that owns, operates, or leases a fleet of 25 or more
motor 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 who owns, operates, or leases a fleet of 25 or more
motor vehicles (Sec. 382.152, Health and Safety Code). 

The bill sets forth requirements regarding the percentages of motor
vehicles to be purchased or leased annually by a state agency, mass transit
authority, local government, or other person.  The bill authorizes a state
agency, mass transit authority, local government, or other person to
purchase or lease a motor vehicle that is converted to a fuel or power
source other than gasoline or diesel to satisfy the percentage
requirements.  The bill also provides that all motor vehicles purchased or
leased under the requirements  must be certified to meet the federal Tier
II exhaust emission bin 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 motor vehicles are not available for
purchase or lease in this state or if a mass transit authority demonstrates
by evidence acceptable to TNRCC that complying with the requirements would
unduly compromise a public transportation alternative that reduces motor
vehicle miles traveled (Sec. 382.153, Health and Safety Code).   

The bill exempts the following vehicles from these requirements:

 _a motor vehicle used exclusively for law enforcement or emergency
purposes; 

 _a motor vehicle used in the maintenance or repair of underground mass
transit facilities that is required by federal law to operate on diesel
fuel; 

 _a motor vehicle used for manufacturer product evaluations or tests,
including a  motor vehicle owned or held by a university research
department, independent testing laboratory, another evaluation facility, or
a state agency whose primary purpose is to evaluate performance of motor
vehicles for engineering, research, and development or quality control
reasons; or 

 _a motor vehicle held for sale by a motor vehicle dealer, including a
demonstration vehicle (Sec. 382.151, Health and Safety Code).   

C.S.H.B. 3284 requires TNRCC to adopt rules to implement the Texas Clean
Fleet Program (program) (Sec. 382.154, Health and Safety Code).  The bill
requires TNRCC by rule to require each state agency, mass transit
authority, local government, or other person to maintain records and submit
reports to demonstrate compliance with the program (Sec. 382.155, Health
and Safety Code).  The bill does not require the purchase or lease of a
motor vehicle in violation of the alternative fuel transportation program
or any other applicable federal or state law (Sec. 382.156, Health and
Safety Code).  The bill also adds to the projects the Texas Public Finance
Authority is authorized to issue and sell obligations for the conversion of
motor vehicles and other sources of substantial energy output of a county,
a municipality, or a public health district to an alternative fuel (Sec.
1232.104, Government Code). 

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 (SECTIONS 6 and 8).  The bill requires TNRCC to examine the
feasibility and effectiveness of similar fleet program requirements for
motor vehicles that have a gross vehicle weight rating of more than 10,000
pounds and to report its findings and recommendations to the legislature by
December 1, 2002 (SECTION 7).   

EFFECTIVE DATE

Provisions regarding the Texas Clean Fleet Program and the study of certain
motor vehicles take effect September 1, 2001.  All other provisions take
effect September 1, 2003. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3284 modifies the original bill to conform to Texas Legislative
Council style and format.  The substitute differs from the original bill by
modifying the definitions of "lease" and "motor vehicle" (Sec. 382.152,
Health and Safety Code).  The substitute modifies the original bill by
establishing that the provisions regarding the Texas Clean Fleet Program
(program) apply to any other person who owns, operates, or leases a fleet
of 25 or more motor vehicles, rather than to any other person not
specifically covered that owns, operates, or leases a fleet of 25 or more
vehicles in an affected area (Sec. 382.152, Health and Safety Code).  
 
The substitute adds provisions regarding the purchase or lease of a motor
vehicle that is converted to a fuel or power source other than gasoline or
diesel, the certification of purchased or leased vehicles to meet federal
Tier II emission standards, and the waiver of requirements if the public
transportation alternative reduces vehicle miles traveled (Sec. 382.153,
Health and Safety Code).   

The substitute modifies the original bill by deleting the report regarding
the waste tire recycling program from the reports required to be included
in the Texas Natural Resource Conservation Commission's (TNRCC) biennial
report.  The substitute removes the provision in the original bill which
required TNRCC to report on compression ignition and spark ignition
vehicles.  The substitute differs from the original bill by requiring TNRCC
to examine fleet program requirements for motor vehicles that have a gross
vehicle weight rating of more than 10,000 pounds (SECTION 7). 

C.S.H.B. 3284 modifies the original bill by restoring current law regarding
the financing of the conversion of state agency vehicles, local mass
transit authority or department motor vehicles, and motor vehicles and
other sources of substantial energy output to an alternative fuel and by
adding the conversion of motor vehicles and other sources of substantial
energy output of a county, municipality, or a public health district (Sec.
1232.104, Government Code).  The substitute adds the provision that
beginning September 1, 2003, entities eligible to receive a loan, grant, or
other disbursement to carry out an eligible conversion or infrastructure
project regarding LPG or another environmentally beneficial fuel do not
have to comply with fuel requirements provided by or rules adopted under
provisions regarding vehicle fleet services (Sec. 113.287, Natural
Resources Code, and SECTION 8).