To repeal sections 414.400, 414.403, 414.410, 414.412, and 414.415, RSMo 1994, relating to fuel conservation, and to enact in lieu thereof five new sections relating to the same subject.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

Section A. Sections 414.400, 414.403, 414.410, 414.412, and 414.415, RSMo 1994, are repealed and five new sections enacted in lieu thereof, to be known as sections 414.400, 414.403, 414.410, 414.412, and 414.415, to read as follows:

414.400. 1. As used in sections 414.400 to 414.417, the [term "state agency" has the same meaning as such term is defined in section 536.010, RSMo, and the term] following terms mean:

(1) "Alternative fuel" [means], any fuel, including any alcohol fuel containing eighty-five percent or more by volume of such alcohol or other such percentage not less than seventy percent if determined by the United States Department of Energy by rule to be necessary to provide for the requirements of cold start, safety, or vehicle functions, natural gas, liquefied petroleum gas, any fuel other than alcohol derived from biological materials when designated by the United States Department of Energy as an alternative fuel, and hydrogen, or any power source, including electricity, and any other fuel that the United States Department of Energy determines by final rule is substantially not petroleum and would yield substantial energy security and environmental benefits, used in a vehicle that complies with the standards and requirements applicable to such vehicle under sections 414.400 to 414.417 when using such fuel or power source[.];

(2) "CAFE standard", the federal Corporate Average Fuel Economy standard, 15 U.S.C. 2002 or 40 CFR Parts 86 and 600 or 49 CFR Part 538 or proposed rule 49 CFR Part 538 until such rule is finalized;

(3) "Department", the department of natural resources;

(4) "Director", the director of the department of natural resources;

(5) "State agency", the same meaning as such term is defined in section 536.010, RSMo;

(6) "Vehicle fleet", any fleet comprised of vehicles with a manufacturer's gross vehicle weight rating of not more than eight thousand five hundred pounds registered for operation on the highways of this state pursuant to chapter 301, RSMo.

2. The department [of natural resources] in consultation with the commissioner of administration shall develop and implement a program to manage and progressively reduce state agency vehicle fleet fuel consumption[, improve fleet management] and promote the use of alternative fuels. The program shall [achieve a reduction of twenty percent in motor fuel consumption by state-owned vehicles by January 1, 1997.] require state agencies to meet minimum guidelines for efficient fleet management. Such guidelines shall be updated and revised every two years and shall require the overall vehicle fleet fuel efficiency for each agency to meet or exceed the fuel efficiency that would be achieved if each vehicle in the agency's fleet met the CAFE standard. The department may promulgate rules necessary to implement such guidelines. Further, provided that suppliers or state agencies have or can reasonably be expected to have established alternative fuel refueling stations as needed, the program shall require that at least thirty percent of all motor fuel purchased annually for use in alternative fuel vehicles, calculated in gasoline gallon equivalents, to be alternative fuel by July 1, 2000. Any alternative fuel purchased by a state agency for use in vehicles not included in their vehicle fleet as defined in subsection 1 of this section, calculated in gasoline gallon equivalents, may be credited toward the annual alternative fuel purchase goal. The program shall systematically replace existing state-owned vehicles and vehicles paid for with any state money, including vehicles purchased by the university system, with vehicles manufactured, assembled or produced in the United States, as required by sections 34.350 to 34.359, RSMo.

3. The commissioner of administration shall identify specific vehicle models within each vehicle procurement class that meet or exceed the [Corporate Average Fuel Economy (]CAFE[)] standard[, 15 USC 2002, and]. State agencies shall identify specific vehicles models within each vehicle procurement class that have a life cycle cost which is less than or equal to the average life cycle cost of those vehicles in the class which are manufactured, assembled or produced in the United States. Life cycle costs shall include but are not limited to the original cost of the vehicle [and the estimated cost of fuel over the useful life of the vehicle or one hundred thousand miles, whichever is greater], conversion cost if applicable, costs associated with vehicle emissions to the extent that such statistics are available and projected cost of operation, including fuel cost and maintenance and salvage value to the extent that reliable maintenance and salvage value statistics are available. Unless a state agency submits to the department a fleet efficiency plan that complies with the minimum guidelines for energy efficiency established pursuant to subsection 2 of section 414.400, or unless otherwise approved by the office of administration pursuant to subsection 4 of this section, all purchases of vehicles for state agency vehicle fleets shall meet the above standards. [Fuel economy comparisons shall be based on United States Department of Energy and United States Environmental Protection Agency data pursuant to sections 2003 to 2006 of title 15, United States Code.]

4. The commissioner of administration [shall] may waive the CAFE standard requirements of subsection 3 of this section, for only those vehicles which satisfy one or more of the following conditions, for any state agency upon receipt of documentation [supported by evidence acceptable to the commissioner] that has been certified by the director of the state agency as satisfying one or more of the following conditions [are satisfied]:

(1) The agency's vehicles are [designed to be operated] used primarily in off road applications;

(2) Such vehicles are regularly used in the movement of maintenance or construction equipment;

(3) Such vehicles are regularly used to transport trailers for the purpose of moving state equipment; or

(4) Such vehicles are vehicles with manufacturer-stated seating capacity exceeding that for six persons and the agency has demonstrated to the department a specific purpose and need for such vehicle[; or

(5) Such vehicles are other special-purpose vehicles as determined by the commissioner of administration].

Agencies which are granted such waivers shall comply with the planning requirements of section 414.403.

414.403. 1. Each state agency, with assistance from the department of [natural resources], shall develop and implement a vehicle fleet energy conservation plan for the purposes of reducing vehicle fuel consumption. Plans shall be submitted to the director [of the department of natural resources] by January 1, 1993. Such plans shall include:

(1) A timetable by which the agency shall meet minimum guidelines for efficient fleet management established pursuant to section 414.400, or by which fleet vehicles shall be replaced with vehicles which exceed the average fuel economy for their vehicle class as outlined in section 414.400;

(2) Options for the use of demonstrated innovative technologies that promote energy conservation and reduced fuel consumption;

(3) Methods that promote efficient trip planning and state vehicle use; and

(4) Promotion of car pooling and van pooling for agency employees for commuting and job-related travel.

2. The department of conservation and the department of highways and transportation may develop their own vehicle fleet energy conservation plan. Such [plans] agencies shall meet the objectives of sections 414.400 to 414.417 and shall comply with the reporting requirements of sections 414.400 to 414.417.

414.410. 1. The director of [the department of natural resources] shall develop a motor vehicle alternative fuel use plan. The director shall cooperate with state agency fleet operators, vehicle manufacturers and converters, fuel distributors and others to identify the types of vehicles which could be converted to alternative fuels. The director shall consider range, specialty uses, fuel availability, vehicle cost, vehicle manufacturing and conversion capability, safety, resale values, and other relevant factors.

2. The department shall recommend alternative fuels which state agencies and state universities may consider when purchasing vehicles. The department shall consider the content of vehicle exhaust emissions, the relative efficiency of the fuel, the relative efficiency of the processes required to produce the fuel and the characteristics of air emissions associated with the production of that fuel. It shall recommend for state use those alternative fuels which best satisfy the goals of energy conservation and emissions reduction.

3. Any state agency which operates a fleet of more than fifteen motor vehicles shall acquire vehicles capable of using alternative fuels as follows:

(1) At least ten percent of the agency's fleet [by] vehicles acquired between July 1, 1994, and July 1, 1996;

(2) At least thirty percent of the agency's fleet [by] vehicles acquired between July 1, 1996, and July 1, 1998; and

(3) At least fifty percent of the agency's fleet [by] vehicles acquired between July 1, 1998, and July 1, 2000, and each biennial period thereafter.

If a state agency exceeds any such biennial acquisition goal, or has purchased vehicles capable of using alternative fuels before July l, 1994, such purchases may be credited to any future biennial acquisition goal.

414.412. 1. The director [of the department of natural resources] may reduce any percentage specified or waive the requirement of subsection 3 of section 414.410 for any state agency upon receipt of certification supported by evidence acceptable to the director 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 have a central refueling station for alternative fuels; or

(2) The agency is unable to acquire or operate vehicles within the cost limitations of section 414.400; or

(3) The use of alternative fuels would not meet the energy conservation and exhaust emissions reduction criteria of subsection 2 of section 414.410.

2. State agencies shall submit information describing the acquisition and use of vehicles capable of using alternative fuels to the department [on forms provided] in a format prescribed by the department. The report shall include:

(1) The types of alternative fuels used;

(2) The number of miles traveled using alternative fuels and the ratios to the total numbers of miles traveled;

(3) The number of vehicles owned which are capable of using alternative fuels.

3. [By July 1, 2002, at least thirty percent of state-owned alternative-fueled vehicles shall operate solely on an alternative fuel.] Each state-owned vehicle equipped to operate on gasoline, other than vehicles using alternative fuel, shall use a fuel ethanol blend as defined in section 142.027, RSMo, when available at a competitive price, as its motor fuel, unless the United States Environmental Protection Agency, or the governor by executive order, promulgates rules which prohibit, limit or otherwise regulate the use of ethanol-blended fuels in ozone nonattainment areas, as defined by section 107 of the federal Clean Air Act, as amended, or in area designated as a maintenance area for ozone under section 175A of the federal Clean Air Act, as amended, state owned vehicles shall not be required to use a fuel ethanol blend.

414.415. State agencies may meet the percentage requirements of sections 414.410 to 414.415 through purchase of [new] original equipment manufactured alternative fuel vehicles or the conversion of [existing] vehicles, in accordance with federal and state requirements and applicable safety laws. [Vehicles purchased pursuant to sections 414.410 to 414.415 shall not exceed the cost of other vehicles by more than five percent, using life cycle costing methods which include but are not limited to the original cost of the vehicle, projected cost of operation, including fuel cost and maintenance and replacement, to the extent that reliable maintenance and replacement statistics are available.] The commissioner of administration in purchasing, leasing, maintaining or converting vehicles for alternative fuels use shall comply with all applicable safety standards promulgated by the United States Department of Transportation.