84R13375 DDT-D By: Isaac H.B. No. 3835 A BILL TO BE ENTITLED AN ACT relating to the use of certain alternative fuels by state agency motor vehicles. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 2158.003(a), Government Code, is amended to read as follows: (a) A state agency may not purchase or lease a vehicle designed or used primarily for the transportation of individuals, including a station wagon, that has a wheelbase longer than 113 inches or that has more than 160 SAE net horsepower. The vehicle may have 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 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, biodiesel or biodiesel/diesel blends of 20 percent or greater,] or electricity, including electricity to power a plug-in hybrid motor vehicle. This exception to the wheelbase and horsepower limitations applies to a state agency regardless of the size of the agency's vehicle fleet. SECTION 2. Sections 2158.004(a), (b), (c), and (d), Government Code, are amended to read as follows: (a) A state agency operating a fleet of more than 15 vehicles, excluding law enforcement and emergency vehicles, may not purchase or lease a motor vehicle unless that vehicle uses 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,] biodiesel or biodiesel/diesel blends of 20 percent or greater, or electricity, including electricity to power a plug-in hybrid motor vehicle. (b) A state agency may obtain equipment or refueling facilities necessary to operate vehicles 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,] biodiesel or biodiesel/diesel blends of 20 percent or greater, or electricity, including electricity to power a plug-in hybrid motor vehicle: (1) by purchase or lease as authorized by law; (2) by gift or loan of the equipment or facilities; or (3) by gift or loan of the equipment or facilities or by another arrangement under a service contract for the supply of 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,] biodiesel or biodiesel/diesel blends of 20 percent or greater, or electricity, including electricity to power a plug-in hybrid motor vehicle. (c) If the equipment or facilities are donated, loaned, or provided through another arrangement with the supplier of 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,] biodiesel or biodiesel/diesel blends of 20 percent or greater, or electricity, including electricity to power a plug-in hybrid motor vehicle, the supplier is entitled to recoup its actual cost of donating, loaning, or providing the equipment or facilities through its fuel charges under the supply contract. (d) The commission may waive the requirements of this section for a state agency on receipt of certification supported by evidence acceptable to the commission that: (1) the agency's vehicles will be operating primarily in an area in which neither the agency nor a supplier has or can reasonably be expected to establish adequate refueling for 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,] biodiesel or biodiesel/diesel blends of 20 percent or greater, or electricity, including electricity to power a plug-in hybrid motor vehicle; or (2) the agency is unable to obtain equipment or refueling facilities necessary to operate vehicles 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,] biodiesel or biodiesel/diesel blends of 20 percent or greater, or electricity, including electricity to power a plug-in hybrid motor vehicle, at a projected cost that is reasonably expected to be no greater than the net costs of continued use of conventional gasoline or diesel fuels, measured over the expected useful life of the equipment or facilities supplied. SECTION 3. Sections 2158.005(a), (b), and (c), Government Code, are amended to read as follows: (a) Not later than September 30, 2025 [2010], a state agency that operates a fleet of more than 15 motor vehicles, excluding law enforcement and emergency vehicles, shall have a fleet consisting of vehicles of which at least 50 percent use 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, biodiesel or biodiesel/diesel blends of 20 percent or greater,] or electricity, including electricity to power a plug-in hybrid motor vehicle. (b) The Texas Commission on Environmental Quality shall collect reasonable information needed to determine the air quality benefits from use of 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,] biodiesel or biodiesel/diesel blends of 20 percent or greater, or electricity, including electricity to power a plug-in hybrid motor vehicle, at affected agencies. (c) A state agency in its annual financial report to the legislature shall report its progress in achieving the percentage requirements of this section by: (1) itemizing purchases, leases, and conversions of motor vehicles; (2) itemizing usage of 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, biodiesel or biodiesel/diesel blends of 20 percent or greater,] or electricity, including electricity to power a plug-in hybrid motor vehicle; and (3) describing the availability of 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,] biodiesel or biodiesel/diesel blends of 20 percent or greater, or electricity, including electricity to power a plug-in hybrid motor vehicle[; and [(4) providing the information reasonably needed to determine the air quality benefits from use of 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, biodiesel or biodiesel/diesel blends of 20 percent or greater, or electricity, including electricity to power a plug-in hybrid motor vehicle]. SECTION 4. Section 2158.006, Government Code, is amended to read as follows: Sec. 2158.006. DETERMINATION OF ALTERNATIVE FUELS PROGRAM PARAMETERS. In developing the use of 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,] biodiesel or biodiesel/diesel blends of 20 percent or greater, or electricity, including electricity to power a plug-in hybrid motor vehicle, the commission should work with state agency fleet operators, vehicle manufacturers and converters, fuel distributors, and others to determine the vehicles to be covered, taking into consideration: (1) range; (2) specialty uses; (3) fuel availability; (4) vehicle manufacturing and conversion capability; (5) safety; (6) resale values; and (7) other relevant factors. SECTION 5. Section 2158.007, Government Code, is amended to read as follows: Sec. 2158.007. COMPLIANCE WITH APPLICABLE SAFETY STANDARDS. In purchasing, leasing, maintaining, or converting vehicles for use with 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,] biodiesel or biodiesel/diesel blends of 20 percent or greater, or electricity, including electricity to power a plug-in hybrid motor vehicle, the commission shall comply with all applicable safety standards adopted by the United States Department of Transportation and the Railroad Commission of Texas. SECTION 6. Section 2158.008, Government Code, is amended to read as follows: Sec. 2158.008. WHEN VEHICLE CONSIDERED TO BE USING ALTERNATIVE FUELS. In this subchapter, a vehicle is considered to be 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, biodiesel or biodiesel/diesel blends of 20 percent or greater,] or electricity, including electricity to power a plug-in hybrid motor vehicle, if the vehicle uses those fuels: (1) not less than 80 percent of the time the vehicle is driven; and (2) either in its original equipment engine or in an engine that has been converted to use those fuels. SECTION 7. Subchapter A, Chapter 2158, Government Code, is amended by adding Section 2158.010 to read as follows: Sec. 2158.010. PURCHASE OR LEASE OF CERTAIN VEHICLES PROHIBITED. A state agency may not purchase or lease a vehicle that uses ethanol or ethanol/gasoline blends of 85 percent or greater. SECTION 8. Section 2171.103, Government Code, is amended by adding Subsection (c) to read as follows: (c) In this section, "alternative fuel" does not include methanol or methanol/gasoline blends of 85 percent or greater, ethanol or ethanol/gasoline blends of 85 percent or greater, or biodiesel or biodiesel/diesel blends of 20 percent or greater. SECTION 9. Section 2158.005(e), Government Code, is repealed. SECTION 10. This Act takes effect September 1, 2015.