Bill Text: MS HB288 | 2013 | Regular Session | Introduced
Bill Title: Mississippi Alternative Fuels Conversion Act; create.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2013-02-05 - Died In Committee [HB288 Detail]
Download: Mississippi-2013-HB288-Introduced.html
MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Energy; Ways and Means
By: Representative Boyd
House Bill 288
AN ACT TO CREATE THE MISSISSIPPI ALTERNATIVE FUELS CONVERSION ACT; TO CREATE THE MISSISSIPPI ALTERNATIVE FUELS CONVERSION FUND AS A SPECIAL FUND FOR THE DEPARTMENT OF FINANCE AND ADMINISTRATION; TO PROVIDE THAT THE FUND SHALL BE REIMBURSED BY A SURCHARGE ON ALTERNATIVE FUELS; TO BRING FORWARD SECTIONS 57-39-1, 57-39-9, 57-39-11 AND 25-1-77, MISSISSIPPI CODE OF 1972, WHICH RELATE TO ENERGY AND TRANSPORTATION PLANNING AND FLEET MANAGEMENT, FOR PURPOSES OF AMENDMENT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. This act may be cited as the Mississippi Alternative Fuels Conversion Act.
SECTION 2. As used in this act, the following words and phrases shall have the following meanings, unless the context clearly indicates otherwise:
(a) "Alternative fuels" means fuels which result in comparably lower emissions of oxides of nitrogen, volatile organic compounds, carbon monoxide, or particulates or any combination thereof and includes compressed natural gas, liquefied petroleum gas, liquefied natural gas, ethanol, methanol, "—85" which is a mixture of methanol and gasoline containing at least eighty-five percent (85%) methanol, electricity, biodiesel, and "B2O" which is a mixture of biodiesel and diesel fuel containing at least twenty percent (20%) biodiesel;
(b) "Charge station" means the physical device that provides a connection from a power source to an electric vehicle as defined by the Electric Vehicle Association of America, the Electric Power Research Institute, and the Society of Automotive Engineers. All charge stations shall comply with the National Electric Code. Inductive connectors and conductive connectors shall comply with the guidelines of the Society of Automotive Engineers;
(c) "CNG" means compressed natural gas;
(d) "CNG conversion kit" means the equipment installed to modify a motor vehicle which is propelled by gasoline or diesel fuel so that the vehicle may be propelled by compressed natural gas;
(e) "Diesel fuel" means diesel engine fuel, and all other liquids suitable for the generation of power for the propulsion of motor vehicles except gasoline;
(f) "Fill station" means the property which is directly related to the delivery of compressed natural gas, liquefied natural gas, liquefied petroleum gas, methanol, "—85" which is a mixture of methanol and gasoline containing at least eighty-five percent (85%) methanol, biodiesel, or "B2O" which is a mixture of biodiesel and diesel fuel containing at least twenty percent (20%) biodiesel into the fuel tank of a motor vehicle propelled by such fuel including the compression equipment and storage vessels for such fuel at the point where such fuel is delivered;
(g) "Gallon" means the quantity of fluid or liquid at a temperature of sixty degrees (60°) Fahrenheit necessary to completely fill a United States standard gallon liquid measure;
(h) "Gasoline" means the same as motor fuel and means every liquid petroleum product, or any combination thereof, other than solvents as herein defined, having an A.P.I. gravity of forty-six degrees (46°) or above at a temperature of sixty degrees (60°) Fahrenheit and at atmospheric pressure, and includes drip, casinghead or natural gasoline. The term gasoline also includes any liquid of less than forty-six degrees (46°) A.P.I. gravity at a temperature of sixty degrees (60°) Fahrenheit compounded, blended, manufactured or otherwise produced by mixing or blending gasoline or solvents with any blending materials, as hereinafter defined, when the blended product can be used for generating power in internal combustion engines, regardless of how such liquid is made, compounded, manufactured or recovered and regardless of the name by which such liquid may be known or sold;
(i) "Government vehicle" means all motor vehicles, owned and operated by the State of Mississippi, any public trust authority, county, municipality, town or city within this state;
(j) "Sale" means sales, barters, exchanges, and every other manner, method, and form of transferring the ownership of personal property from one (1) person to another, and also includes the use or consumption in this state in the first instance of gasoline received from without the state or of any other gasoline upon which the surcharge has not been paid;
(k) "School vehicle" means all buses and multi-passenger motor vehicles owned and approved to operate by the State Department of Education or any school district within this state; and
(l) "Solvents" means especially prepared commercial and industrial solvents, cleaners' and painters' naphthas, and raw petroleum materials or petrochemical intermediates when used as or sold for use in production or manufacture of plastics, detergents, synthetic rubber, herbicides, insecticides and other chemicals or products which are not prepared, advertised, offered for sale, or sold for use or suitable for use as fuel for generating power in internal combustion engines.
SECTION 3. (1) All school vehicles and all government vehicles may be converted to operate on an alternative fuel. The state, any county or municipal government and any school district within the state may have access to the Mississippi Alternative Fuels Conversion Fund and the reasonable expenses of the conversions and/or the installation of a fill station or charge station may be reimbursed in the manner provided by Section 4 of this act if the state, county, municipality or school district can pay back such conversion and/or fill station or charge station installation costs within seven (7) years of the date of conversion and/or fill station or charge station installation.
(2) The reasonable expenses of the conversion of the school vehicle fleets and the government vehicle fleets that are converted pursuant to this section shall be reimbursed in the manner provided by Section 4 of this act.
(3) The reasonable expenses of the installation of a fill station or charge station that is installed according to subsection (1) of this section shall be reimbursed in the manner provided by Section 4 of this act.
(4) Any vehicle converted to have the capability of being fueled or charged by alternative fuels according to the provisions of this act shall not be sold or otherwise transferred to another person or entity before the total reimbursement of the cost of such conversion according to this act unless such conversion equipment is removed and installed on another government vehicle or school vehicle owned by such public entity.
(5) Any fill station or charge station installed pursuant to the provisions of this act shall not be sold or otherwise transferred to another person or entity before the total reimbursement of the cost of such fill station or charge station according to the provisions of this act.
(6) All school vehicles and all government vehicles which are converted to operate on alternative fuel shall be required to use such alternative fuel whenever a fill station or charge station is in operation within a five-mile radius of the respective department, district, agency, office or political subdivision that has converted vehicles to operate on alternative fuel, and the price of the alternative fuel is comparable to the price of the fuel being displaced. School vehicles and government vehicles that are capable of operating on a conventional fuel as well as an alternative fuel shall be exempt from this restriction on those occasions when the vehicle or vehicles must be refueled outside the five-mile radius of the respective department, district, agency, office or political subdivision that has said vehicle and no alternative fuel fill station or charge station is reasonably available.
SECTION 4. (1) There is hereby created in the State Treasury a revolving fund for the Department of Finance and Administration to be designated as the "Mississippi Alternative Fuels Conversion Fund." The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies received by the Department of Finance and Administration in accordance with this act.
(2) All monies accruing to the credit of the revolving fund shall be expended by the Department of Finance and Administration to reimburse expenses relative to the conversion of government vehicles and school vehicles to have the capability of being fueled or charged by alternative fuels and/or the expenses relative to the installation of a fill station or charge station. The maximum amount expended per vehicle shall be the actual cost of vehicle conversion or Ten Thousand Dollars ($10,000.00), whichever is less. The maximum amount expended per fill station or charge station shall be the actual cost of the installation or Three Hundred Thousand Dollars ($300,000.00), whichever is less. The balance on deposit in the fund shall never exceed the sum of Five Million Dollars ($5,000,000.00).
(3) Expenditures from the revolving fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law for approval and payment.
SECTION 5. (1) The Mississippi Alternative Fuels Conversion Fund shall be reimbursed by a surcharge on alternative fuels sold within the state under the provisions of this act.
(2) A reimbursement account shall be established in the name of each recipient of reimbursement for vehicle conversion and/or fill station installation in accordance with the provisions of applicable law. The initial amount of each recipient's account shall be the amount of the reimbursement received by that recipient. A recipient's account shall be increased by the amount of any subsequent reimbursement received by that recipient; a recipient's account shall be reduced by the amount of all surcharges on alternative fuels paid by that recipient.
(3) A surcharge in an amount equivalent to the per gallon fuel cost savings in utilizing alternative fuels is hereby levied on sales of alternative fuels to recipients of reimbursement for vehicle conversion and/or fill station installation according to the provisions of applicable law. Initially, the amount of the surcharge shall be based upon monthly fuel savings as determined in the manner prescribed by applicable law. Such amount shall be adjusted periodically, by the Department of Revenue, to reflect any change in the amount of fuel savings actually received by the recipient. The surcharge shall not be levied on sales of alternative fuels for any other purposes. The surcharge shall continue on sales to each such recipient for so long as that recipient maintains a reimbursement account. When the reimbursement account for a recipient is reduced to zero, the surcharge levied by this section shall terminate until such time as a reimbursement account may be reestablished for that recipient.
(4) The surcharge levied under this section shall be collected by the Department of Revenue and apportioned monthly to the Mississippi Alternative Fuels Conversion Fund.
(5) The surcharge levied under this section shall be suspended whenever the price of the alternative fuel used by the recipient is equal to or greater than the price of the original fuel displaced by the alternative fuel which may be purchased by such recipient. Provided, such surcharge shall be reinstated whenever the price of the alternative fuel used by the recipient becomes less than the price of the original fuel displaced by the alternative fuel which may be purchased by such recipient.
(6) The Department of Revenue shall adopt rules and regulations relating to the payment and collection of the surcharge levied under this section.
SECTION 6. Section 57-39-1, Mississippi Code of 1972, is brought forward as follows:
57-39-1. (1) The purpose of this chapter is to coordinate all energy-related needs and activities in Mississippi with the objective of providing an efficient and economical energy system through a statewide plan. To that end, the Department of Economic and Community Development is directed to evaluate this state's energy needs and availability.
(2) The powers, duties and responsibilities of the Board of Energy and Transportation with respect to the state's energy needs and activities are transferred to the Department of Economic and Community Development, and wherever the word "board" appears in this chapter meaning the former Board of Energy and Transportation it shall mean the Department of Economic and Community Development.
SECTION 7. Section 57-39-9, Mississippi Code of 1972, is brought forward as follows:
57-39-9. The powers and duties of the board shall include, but not be limited to, the following:
(a) To prepare, when necessary, a Mississippi Energy Plan as hereinafter set forth.
(b) To prepare implementation programs in accordance with the requirements of the plan.
(c) Upon request, to accept, receive and receipt for federal monies and other monies, either public or private, for and in behalf of this state. Upon request of any political subdivision of the state, to accept, receive and receipt for any designated purpose, federal monies and other monies, either public or private, for and in behalf of any such political subdivision.
(d) To confer with or to hold joint hearings with any agency of the United States in connection with any matter arising under this chapter, or relating to the sound development of energy utilization.
(e) To avail itself of the cooperation, services, records and facilities of agencies of the United States as fully as may be practicable in the administration and enforcement of this chapter.
(f) To furnish to the agencies of the United States its cooperation, services, records and facilities, insofar as may be practicable, and when such action is not in conflict with the laws of the State of Mississippi.
(g) To avail itself of the cooperation, services, records and facilities of other agencies of the state, and such agencies are authorized and directed to cooperate and make available their facilities and services, insofar as may be practicable.
(h) To perform such acts, make, promulgate and amend such reasonable general or special rules, regulations and procedures as it shall deem necessary to carry out the provisions of this chapter and to perform its duties hereunder. No rules, regulations or procedures prescribed by the board shall be inconsistent with, or contrary to, any acts of the Congress of the United States or any regulations promulgated pursuant thereto, or to this chapter or any other statutes of the State of Mississippi.
(i) To enter into contracts, grants and cooperative agreements with any federal or state agency, department or subdivision thereof, or any public or private institution located inside or outside the State of Mississippi, or any person, corporation or association in connection with carrying out the provisions of this chapter, provided the agreements do not have a financial cost in excess of the amounts appropriated for such purposes by the Legislature.
SECTION 8. Section 57-39-11, Mississippi Code of 1972, is brought forward as follows:
57-39-11. (1) The Mississippi Energy Plan shall be directed at the achievement of a coordinated and balanced energy program for the state.
(2) The plan shall be used by all state agencies and offices to guide and coordinate energy activities.
(3) The energy plan shall include, but not be limited to, the following:
(a) Statewide energy goals, objectives and policies for all forms of energy needs and availability, both public and private;
(b) Statewide forecasts of energy needs and deficiencies;
(c) Guidelines based upon priorities, economics and such other factors as shall be reasonable and proper in meeting the state's energy needs;
(d) A program for directing the expenditure of local, state and federal energy funds in conformity with the statewide plan;
(e) Statewide implementation program, including a schedule of improvement programs, an operations program, a financial plan, necessary policies and legislation for implementation of the energy plan.
(f) Financial impact statement.
(4) The plan shall be based on studies, including, but not limited to, the following energy planning practices:
(a) Inventories of energy facilities and equipment;
(b) State and federal statutory requirements affecting energy services;
(c) Financial resources for energy planning, development and operation;
(d) Plans and programs adopted by state agencies, which affect energy planning;
(e) Advanced concepts for energy systems for consideration in alternative plans;
(f) Alternative plans based on varying assumptions of financial resources and levels of energy services;
(g) An evaluation of alternative plans considering the relationships between energy taxation, environment, economics and social factors, policies and goals, including the relationship of costs among classes of users;
(h) An analysis of studies, reports, plans and recommendations made by the model agencies in the area of energy with an assessment of their application to the plan;
(i) A review and critique of existing policies for expenditure of local, state and federal energy funds; and
(j) A review and analysis of the existing tax exemptions, credits and incentives for energy use and a recommendation for addition or deletion of energy-related tax exemptions, credits and incentives.
(5) In evaluating alternative plans, the following criteria shall be among those used:
(a) Economic, including operating costs, capital costs, revenues, impact on local economy and employment, and related public service costs;
(b) Taxation, including tax base and equity; and
(c) Environmental.
SECTION 9. Section 25-1-77, Mississippi Code of 1972, is brought forward as follows:
25-1-77. (1) There is created the Bureau of Fleet Management within the Office of Purchasing, Travel and Fleet Management, Department of Finance and Administration, for the purposes of coordinating and promoting efficiency and economy in the purchase, lease, rental, acquisition, use, maintenance and disposal of vehicles by state agencies. The Executive Director of the Department of Finance and Administration may employ a Fleet Management Officer to manage the bureau and carry out its purposes. The bureau may employ other suitable and competent personnel as necessary. The bureau shall encourage the use of fuel efficient or hybrid vehicles appropriate for the state agency's intended purpose and, when feasible, the use of alternative fuels or energy sources, including, but not limited to, ethanol, biodiesel, natural gas or electric power. The bureau shall prepare a fiscal analysis of the cost-effectiveness of using alternative fuel or energy source vehicles by state agencies, and submit a report of that fiscal analysis to the Legislature by December 15, 2009. Not later than July 1, 2014, at least seventy-five percent (75%) of all vehicles to which the bureau holds title in the name of the state must have a fuel economy estimate by the United States Environmental Protection Agency of forty (40) miles per gallon or higher for highway driving.
(2) The Bureau of Fleet Management shall perform the following duties:
(a) To hold title in the name of the State of Mississippi to all vehicles currently in possession of state agencies as defined in Section 25-9-107(d) and to assign vehicles to such agencies for use; however, the bureau shall exempt any agency or agency vehicles from the provisions of this paragraph (a) if it determines that state or federal law requires that title be vested only in the agency;
(b) To establish rules and regulations for state agency use of vehicles;
(c) To gather information and specify proper fleet management practices for state agencies;
(d) To acquire fleet management software and require agencies to provide necessary information for the bureau to properly monitor the size, use, maintenance and disposal of the state's fleet of vehicles; the bureau shall communicate regularly with the fleet managers of each state agency to determine strengths and weaknesses of the various fleet operations; the bureau shall disseminate information to the agencies so that each can take advantage of any beneficial practices being incorporated at other entities; the bureau shall promulgate rules and regulations concerning the mileage reimbursement practices of each state agency;
(e) To carry out responsibilities relative to budget recommendations as provided in Section 27-103-129;
(f) To reassign vehicles in the possession of any state agency if the bureau believes that another state agency can make more efficient use of a vehicle; however, the state agency receiving the reassigned vehicle shall pay to the previous agency's special fund, or if no special fund exists to the State General Fund, the National Automobile Dealers Association (NADA) wholesale value for the vehicle or the estimated amount for which the vehicle would have sold at auction, as shall be determined by the bureau, whichever is less;
(g) To investigate at any time the vehicle usage practices of any state agency; and
(h) To require each agency to submit to the bureau a vehicle acquisition/use/disposal plan on an annual basis. From the plans received, the bureau shall evaluate the proposed plans and shall submit a recommendation to the Legislature prior to January 1 of each year.
(3) No state department, institution or agency shall purchase, rent, lease or acquire any motor vehicle, regardless of the source of funds from which the motor vehicle is to be purchased, except under authority granted by the Department of Finance and Administration. The Bureau of Fleet Management, Department of Finance and Administration, shall promulgate rules and regulations governing the purchase, rental, lease or acquisition of any motor vehicle by a state department, institution or agency with regard to the appropriateness of the vehicle to its intended use. The Bureau of Fleet Management, Department of Finance and Administration, shall only grant authority to purchase, rent, lease or acquire a motor vehicle which is the lowest cost vehicle to carry out its intended use. Before the disposal or sale of any vehicle, the Bureau of Fleet Management shall make a determination that the lifetime use and mileage of the vehicle has been maximized and that it would not be feasible for another state agency to use the vehicle.
(4) The department, institution or agency shall maintain proper documentation which provides the intended use of the vehicle and the basis for choosing the vehicle. Such documentation shall show that the department, institution or agency made diligent efforts to purchase, rent, lease or acquire a vehicle that is the lowest cost vehicle for its intended use. Such documentation shall be updated as needed when the intended use of the vehicle or any other facts concerning the vehicle are changed. All such documentation shall be approved by the State Fleet Officer prior to purchase, rental, lease or acquisition or change in use of any vehicle and shall be maintained and made available for review by the State Auditor, any other reviewing agency and the Legislature. The Bureau of Fleet Management shall immediately notify the department head of any agency that has a vehicle found to be in violation of the bureau's rules and regulations. At the same time, the bureau shall notify the Speaker of the House of Representatives and the Lieutenant Governor of its findings regarding any such vehicle. If the violation is not rectified within five (5) days of the notice, then the bureau may seize the vehicle and dispose of it as the bureau deems to be in the best interest of the State of Mississippi.
(5) On or before September 1 of each year, the Bureau of Fleet Management shall prepare and deliver to the Senate and House Appropriations Committees and the Joint Legislative Budget Committee a report containing any irregularities that it finds concerning purchases of state-owned vehicles.
(6) The Department of Public Safety and the Department of Wildlife, Fisheries and Parks may retain any vehicle seized pursuant to the forfeiture laws of this state, and the total number of vehicles assigned to each such agency shall not be reduced by the number of seized vehicles which the agency retains.
(7) The Bureau of Fleet Management, upon request, shall grant an exemption from the provisions of this section for only any vehicle assigned to a sworn officer of the Department of Public Safety and used in undercover operations when the bureau determines that compliance could jeopardize the life, health or safety of the sworn officer.
(8) The provisions of this section shall not apply to any state institution of higher learning.
SECTION 10. This act shall take effect and be in force from and after July 1, 2013.
