S*1273(Rat #0535, Act #0449 of 1992)  General Bill, By Leventis, Bryan, Courson, 
Courtney, Drummond, H.U. Fielding, Giese, F. Gilbert, Hayes, I.E. Lourie, 
Matthews, McGill, Moore, M.F. Mullinax, O'Dell, Passailaigue, Patterson, Peeler, 
M.T. Rose, Russell, Saleeby, Setzler, N.W. Smith, Thomas, Washington and Wilson
 A Bill to enact the South Carolina Energy Conservation and Efficiency Act of
 1992; to amend the Code of Laws of South Carolina, 1976, by adding Chapter 52
 to Title 48 so as to establish a State Energy Policy, to adopt the plan for
 the State Energy Policy, to establish the State Energy Office within the
 Budget and Control Board, to provide for the powers and duties of this office,
 to establish an advisory committee, to require the State Energy Office to
 develop and oversee compliance with energy code standards for state government
 buildings, to require state agencies and public school districts to submit to
 the energy office for approval energy conservation plans and goals and to
 require reporting, to provide for financial incentives to facilitate the
 purchase of energy efficiency products by state agencies, including an
 exception to the South Carolina Procurement Code, and to provide that
 personnel and funding for the State Energy Office must be derived from
 existing State government personnel slots and financial resources available to
 the State; by adding Section 40-29-85 so as to require the State Energy Office
 to provide energy efficiency standards labels to the South Carolina
 Manufactured Housing Board to be placed on manufactured homes; by amending
 Section 6-10-30, relating to energy efficiency building codes, so as to revise
 the minimum thermal resistance ratings in one and two family dwellings and to
 provide exceptions; by amending Section 12-36-2110, as amended, relating to
 the calculation of sales tax on mobile homes, so as to increase from one to
 two the percentage for calculating the sales tax on the cost of a manufactured
 home in excess of six thousand dollars and to exempt a home that meets certain
 energy efficiency requirements from this tax; by amending Section 40-29-240,
 relating to violations and penalties for violations of the Uniform Standards
 Code for Manufactured Housing, so as to include a violation for failure to
 properly display the energy efficiency label required by Section 40-29-85; by
 adding Section 58-37-20 so as to require the South Carolina Public Service
 Commission to adopt procedures and provide incentives that encourage
 electrical and gas utilities to invest in cost-effective energy efficient
 technologies and energy conservation programs; by adding Section 58-37-30 so
 as to require annual reporting to the General Assembly on demand-side
 activities and purchasing power of electric utilities; by adding Section
 58-37-40 so as to require electrical utilities and the South Carolina Public
 Service Authority to prepare integrated resource plans; by adding Section
 58-37-10 so as to define "demand side activites" and "integrated resource
 plan"; by adding Section 57-1-140 so as to require the South Carolina
 Department of Highways and Public Transportation to determine the feasibility
 of including high occupancy vehicle lanes, pedestrian walkways, and bicycle
 paths in new highway construction; by amending Section 1-11-310, relating to
 the state motor vehicle fleet, so as to provide requirements for the types of
 vehicles that may be purchased for this fleet and for law enforcement
 purposes; by amending Section 12-36-2120, as amended, relating to sales tax
 exemptions, so as to delete the exemption for fuel ethanol blends and to add
 an exemption for clean alternative transportation fuels; by amending Section
 44-96-40, relating to definitions in the Solid Waste Management Act, so as to
 revise the definition of "motor oil" and "similar lubricants"; by amending
 Section 44-96-160, relating to used oil requirements, so as to provide a
 payment to a retailer of motor oil who maintains an oil collection center of
 five cents a gallon for oil returned to a licensed used oil transporter or
 used oil recycling facility, to allow certain fees to be deducted from those
 remitted to trust fund payments to be made, and to provide up to five hundred
 dollars rebate to retailers who maintain a used oil collection center for
 equipment used in the oil collection process; by amending Section 58-25-30, as
 amended, relating to creation of a Regional Transportation Authority, so as to
 provide that a referendum is not required unless a new source of revenue is
 imposed and to require voters to approve joining an existing Authority; by
 amending Section 58-25-40, as amended, relating to the appointment of members
 of the Board of the Authority, so as to provide that the membership of the
 governing board must be apportioned according to population; by amending
 Section 58-25-50, relating to the powers and duties of the Authority, so as to
 authorize and direct the Authority to coordinate public transportation
 services being provided by entities utilizing state funds or
 state-administered funds; by amending Section 58-25-60, relating to sources of
 funding for the Authority, so as to provide limitations on use of certain
 sources of funding; to create an alternative transportation fuels study
 committee and to provide for its membership and duties; to direct the Joint
 Legislative Committee on Energy to establish a task force to study the
 feasibility of increased public rail transportation in South Carolina; and to
 direct the Division of Motor Vehicle Management of the State Budget and
 Control Board to determine the ability to use alternative fuels for the state
 vehicle fleet and to submit a plan to the General Assembly.-amended title

   02/05/92  Senate Introduced and read first time SJ-8
   02/05/92  Senate Referred to Committee on Agriculture and Natural
                     Resources SJ-8
   03/31/92  Senate Committee report: Favorable with amendment
                     Agriculture and Natural Resources SJ-34
   04/28/92  Senate Read second time SJ-128
   04/28/92  Senate Ordered to third reading with notice of
                     amendments SJ-128
   04/30/92  Senate Amended SJ-36
   04/30/92  Senate Read third time and sent to House SJ-63
   05/05/92  House  Introduced and read first time HJ-12
   05/05/92  House  Referred to Committee on Agriculture, Natural
                     Resources and Environmental Affairs HJ-15
   05/14/92  House  Recalled from Committee on Agriculture, Natural
                     Resources and Environmental Affairs HJ-319
   05/26/92  House  Special order, set for follow call of uncontest
                     cal Tues 5/26/92(Under H 4883) HJ-50
   05/26/92  House  Amended HJ-65
   05/26/92  House  Debate interrupted HJ-74
   05/28/92  House  Amended HJ-55
   05/28/92  House  Debate interrupted HJ-80
   06/02/92  House  Read second time HJ-30
   06/03/92  House  Read third time and returned to Senate with
                     amendments HJ-60
   06/04/92  Senate Concurred in House amendment and enrolled SJ-120
   06/04/92         Ratified R 535
   07/01/92         Signed By Governor
   07/01/92         Effective date 07/01/92
   07/01/92         Act No. 449
   07/01/92         See act for exception to or explanation of
                     effective date
   07/15/92         Copies available

AN ACT TO ENACT THE SOUTH CAROLINA ENERGY CONSERVATION AND EFFICIENCY ACT OF 1992; TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING CHAPTER 52 TO TITLE 48 SO AS TO ESTABLISH A STATE ENERGY POLICY, TO ADOPT THE PLAN FOR THE STATE ENERGY POLICY, TO ESTABLISH THE STATE ENERGY OFFICE WITHIN THE BUDGET AND CONTROL BOARD, TO PROVIDE FOR THE POWERS AND DUTIES OF THIS OFFICE, TO ESTABLISH AN ADVISORY COMMITTEE, TO REQUIRE THE STATE ENERGY OFFICE TO DEVELOP AND OVERSEE COMPLIANCE WITH ENERGY CODE STANDARDS FOR STATE GOVERNMENT BUILDINGS, TO REQUIRE STATE AGENCIES AND PUBLIC SCHOOL DISTRICTS TO SUBMIT TO THE ENERGY OFFICE FOR APPROVAL ENERGY CONSERVATION PLANS AND GOALS AND TO REQUIRE REPORTING, TO PROVIDE FOR FINANCIAL INCENTIVES TO FACILITATE THE PURCHASE OF ENERGY EFFICIENCY PRODUCTS BY STATE AGENCIES, INCLUDING AN EXCEPTION TO THE SOUTH CAROLINA PROCUREMENT CODE, AND TO PROVIDE THAT PERSONNEL AND FUNDING FOR THE STATE ENERGY OFFICE MUST BE DERIVED FROM EXISTING STATE GOVERNMENT PERSONNEL SLOTS AND FINANCIAL RESOURCES AVAILABLE TO THE STATE; BY ADDING SECTION 40-29-85 SO AS TO REQUIRE THE STATE ENERGY OFFICE TO PROVIDE ENERGY EFFICIENCY STANDARDS LABELS TO THE SOUTH CAROLINA MANUFACTURED HOUSING BOARD TO BE PLACED ON MANUFACTURED HOMES; BY AMENDING SECTION 6-10-30, RELATING TO ENERGY EFFICIENCY BUILDINGS CODES, SO AS TO REVISE THE MINIMUM THERMAL RESISTANCE RATINGS IN ONE AND TWO FAMILY DWELLINGS AND TO PROVIDE EXCEPTIONS; BY AMENDING SECTION 12-36-2110, AS AMENDED, RELATING TO THE CALCULATION OF SALES TAX ON MOBILE HOMES, SO AS TO INCREASE FROM ONE TO TWO THE PERCENTAGE FOR CALCULATING THE SALES TAX ON THE COST OF A MANUFACTURED HOME IN EXCESS OF SIX THOUSAND DOLLARS AND TO EXEMPT A HOME THAT MEETS CERTAIN ENERGY EFFICIENCY REQUIREMENTS FROM THIS TAX; BY AMENDING SECTION 40-29-240, RELATING TO VIOLATIONS AND PENALTIES FOR VIOLATIONS OF THE UNIFORM STANDARDS CODE FOR MANUFACTURED HOUSING, SO AS TO INCLUDE A VIOLATION FOR FAILURE TO PROPERLY DISPLAY THE ENERGY EFFICIENCY LABEL REQUIRED BY SECTION 40-29-85; BY ADDING SECTION 58-37-20 SO AS TO REQUIRE THE SOUTH CAROLINA PUBLIC SERVICE COMMISSION TO ADOPT PROCEDURES AND PROVIDE INCENTIVES THAT ENCOURAGE ELECTRICAL AND GAS UTILITIES TO INVEST IN COST-EFFECTIVE ENERGY EFFICIENT TECHNOLOGIES AND ENERGY CONSERVATION PROGRAMS; BY ADDING SECTION 58-37-30 SO AS TO REQUIRE ANNUAL REPORTING TO THE GENERAL ASSEMBLY ON DEMAND-SIDE ACTIVITIES AND PURCHASING POWER OF ELECTRIC UTILITIES; BY ADDING SECTION 58-37-40 SO AS TO REQUIRE ELECTRICAL UTILITIES AND THE SOUTH CAROLINA PUBLIC SERVICE AUTHORITY TO PREPARE INTEGRATED RESOURCE PLANS; BY ADDING SECTION 58-37-10 SO AS TO DEFINE "DEMAND-SIDE ACTIVITIES" AND "INTEGRATED RESOURCE PLAN"; BY ADDING SECTION 57-1-140 SO AS TO REQUIRE THE SOUTH CAROLINA DEPARTMENT OF HIGHWAYS AND PUBLIC TRANSPORTATION TO DETERMINE THE FEASIBILITY OF INCLUDING HIGH OCCUPANCY VEHICLE LANES, PEDESTRIAN WALKWAYS, AND BICYCLE PATHS IN NEW HIGHWAY CONSTRUCTION; BY AMENDING SECTION 1-11-310, RELATING TO THE STATE MOTOR VEHICLE FLEET, SO AS TO PROVIDE REQUIREMENTS FOR THE TYPES OF VEHICLES THAT MAY BE PURCHASED FOR THIS FLEET AND FOR LAW ENFORCEMENT PURPOSES; BY AMENDING SECTION 12-36-2120, AS AMENDED, RELATING TO SALES TAX EXEMPTIONS, SO AS TO DELETE THE EXEMPTION FOR FUEL ETHANOL BLENDS AND TO ADD AN EXEMPTION FOR CLEAN ALTERNATIVE TRANSPORTATION FUELS; BY AMENDING SECTION 44-96-40, RELATING TO DEFINITIONS IN THE SOLID WASTE MANAGEMENT ACT, SO AS TO REVISE THE DEFINITION OF "MOTOR OIL" AND "SIMILAR LUBRICANTS"; BY AMENDING SECTION 44-96-160, RELATING TO USED OIL REQUIREMENTS, SO AS TO PROVIDE A PAYMENT TO A RETAILER OF MOTOR OIL WHO MAINTAINS AN OIL COLLECTION CENTER OF FIVE CENTS A GALLON FOR OIL RETURNED TO A LICENSED USED OIL TRANSPORTER OR USED OIL RECYCLING FACILITY, TO ALLOW CERTAIN FEES TO BE DEDUCTED FROM THOSE REMITTED TO TRUST FUND PAYMENTS TO BE MADE, AND TO PROVIDE UP TO FIVE HUNDRED DOLLARS REBATE TO RETAILERS WHO MAINTAIN A USED OIL COLLECTION CENTER FOR EQUIPMENT USED IN THE OIL COLLECTION PROCESS; BY AMENDING SECTION 58-25-30, AS AMENDED, RELATING TO CREATION OF A REGIONAL TRANSPORTATION AUTHORITY, SO AS TO PROVIDE THAT A REFERENDUM IS NOT REQUIRED UNLESS A NEW SOURCE OF REVENUE IS IMPOSED AND TO REQUIRE VOTERS TO APPROVE JOINING AN EXISTING AUTHORITY; BY AMENDING SECTION 58-25-40, AS AMENDED, RELATING TO THE APPOINTMENT OF MEMBERS OF THE BOARD OF THE AUTHORITY, SO AS TO PROVIDE THAT THE MEMBERSHIP OF THE GOVERNING BOARD MUST BE APPORTIONED ACCORDING TO POPULATION; BY AMENDING SECTION 58-25-50, RELATING TO THE POWERS AND DUTIES OF THE AUTHORITY, SO AS TO AUTHORIZE AND DIRECT THE AUTHORITY TO COORDINATE PUBLIC TRANSPORTATION SERVICES BEING PROVIDED BY ENTITIES UTILIZING STATE FUNDS OR STATE-ADMINISTERED FUNDS; BY AMENDING SECTION 58-25-60, RELATING TO SOURCES OF FUNDING FOR THE AUTHORITY, SO AS TO PROVIDE LIMITATIONS ON USE OF CERTAIN SOURCES OF FUNDING; TO CREATE AN ALTERNATIVE TRANSPORTATION FUELS STUDY COMMITTEE AND TO PROVIDE FOR ITS MEMBERSHIP AND DUTIES; TO DIRECT THE JOINT LEGISLATIVE COMMITTEE ON ENERGY TO ESTABLISH A TASK FORCE TO STUDY THE FEASIBILITY OF INCREASED PUBLIC RAIL TRANSPORTATION IN SOUTH CAROLINA; AND TO DIRECT THE DIVISION OF MOTOR VEHICLE MANAGEMENT OF THE STATE BUDGET AND CONTROL BOARD TO DETERMINE THE ABILITY TO USE ALTERNATIVE FUELS FOR THE STATE VEHICLE FLEET AND TO SUBMIT A PLAN TO THE GENERAL ASSEMBLY.

Whereas, energy, like nourishment, health care, and education, is an absolute necessity for individuals, as well as for businesses and government; and

Whereas, energy costs have a profound impact on the economic well-being of individuals, businesses, and government; and

Whereas, environmental effects of energy use patterns have a major impact on the quality of our natural resources, the quality of human life, and the ability of the State to attract and retain both industrial and service-related jobs; and

Whereas, energy costs play a vital role in the State's ability to attract industry and retirees; and

Whereas, energy expenditures represent a substantial monetary outflow from South Carolina's economy in that South Carolina produces no coal, oil, or natural gas; and

Whereas, increasingly high usage of imported oil results in economic vulnerability; and

Whereas, current energy use patterns are the result of many infrastructure decisions made in the past, and long-term future energy use patterns will be affected by current policy decisions; and

Whereas, to properly address these critical energy issues and to provide a framework within which to work, it is in the State's best interest to adopt a comprehensive state energy plan. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

Citation to act

SECTION 1. This act may be cited as the South Carolina Energy Conservation and Efficiency Act of 1992.

State Energy Policy Plan, State Energy Office, State Government Energy Conservation

SECTION 1. Title 48 of the 1976 Code is amended by adding:

Section 48-52-10. This chapter may be cited as the `South Carolina Energy Efficiency Act'.

Section 48-52-210. (A) It is the policy of this State to have a comprehensive state energy plan that maximizes to the extent practical environmental quality and energy conservation and efficiency, and minimizes the cost of energy throughout the State. To implement this policy there is adopted the Plan for State Energy Policy.

(B) The purpose of the plan is to:

(1) ensure access to energy supplies at the lowest practical environmental and economic cost;

(2) ensure long-term access to adequate, reliable energy supplies;

(3) ensure that demand-side options are pursued wherever economically and environmentally practical;

(4) encourage the development and use of indigenous, renewable energy resources;

(5) ensure that basic energy needs of all citizens, including low income citizens, are met;

(6) ensure that energy vulnerability to international events is minimized;

(7) ensure that energy-related decisions promote the economic and environmental well-being of the State and maximize the ability of South Carolina to attract retirees, tourists, and industrial and service-related jobs;

(8) ensure that short-term energy decisions do not conflict with long-range energy needs;

(9) ensure that internal governmental energy use patterns are consistent with the State's long-range interests;

(10) ensure that state government is organized appropriately to handle energy matters in the best public interest;

(11) ensure that governmental energy-related tax, expenditure, and regulatory policies are appropriate, and, wherever possible, maximize the long-range benefits of competition.

Section 48-52-410. There is established the State Energy Office within the State Budget and Control Board which shall serve as the principal energy planning entity for the State. Its primary purpose is to develop and implement a well-balanced energy strategy and to increase the efficiency of use of all energy sources throughout South Carolina through the implementation of the Plan for State Energy Policy. The State Energy Office must not function as a regulatory body.

Section 48-52-420. In carrying out the purposes of the Plan for State Energy Policy, the State Energy Office shall:

(1) provide, in cooperation and conjunction with the Governor's Office, informational and technical assistance programs to assist with residential, commercial, governmental, industrial, and transportation conservation and efficiency and to encourage the use of renewable indigenous energy resources;

(2) promote, in conjunction with the South Carolina Energy Research and Development Center and the Governor's Office, continued and expanded energy research and development programs geared toward the energy needs of the State;

(3) evaluate and certify energy conservation products in cooperation with the South Carolina Energy Research and Development Center;

(4) in cooperation with the Governor's Office and other appropriate entities, examine and consider the desirability and feasibility of mechanisms for tax incentives, low-interest loans, and other financing means for cost-effective energy consideration and efficiency and use of renewable and indigenous energy resources, and advocate their implementation when deemed appropriate;

(5) work with the Public Service Commission and other groups to promote appropriate financial incentives for electric and gas utilities to maximize the use of cost-effective demand-side options in meeting future energy needs;

(6) promote the adoption and use of energy efficient building codes and certification procedures for builders, heating and cooling specialists, and building inspectors;

(7) promote energy efficiency in manufactured housing;

(8) promote the use of less-polluting transportation fuels, public transportation and other transportation alternatives, higher mileage and less-polluting vehicles, and work with state and local entities through policy development, planning, and advocacy to encourage reduction in the need for vehicle travel;

(9) ensure that state government agencies establish comprehensive energy efficiency plans and become models for energy efficiency in South Carolina, and assist the Department of Education in achieving energy efficiency in public schools;

(10) collect currently published and publicly available energy data and provide energy information clearinghouse functions in conjunction with the Governor's Office, and conduct long-range energy planning;

(11) assist the Governor's Office and the General Assembly in assessing the public economic and environmental interest on issues related to energy production, transportation, and use and provide information on the public interest in appropriate forums.

Section 48-52-430. The State Energy Office shall annually submit to the Governor and Joint Legislative Committee on Energy a state energy action plan that includes, but is not limited to:

(a) activities by the State Energy Office to carry out the Plan for State Energy Policy;

(b) recommendations for long-term quantitative and qualitative energy goals for the residential, commercial, industrial, transportation, governmental, and utility sectors, and measures of progress for these goals;

(c) identification of obstacles to efficiency for which legislative, regulatory, or other governmental remedies are appropriate.

Section 48-52-440. There is established the Energy Advisory Committee, whose members are appointed by the State Budget and Control Board, except as provided in item (14) of this section. Members shall serve at the pleasure of the State Budget and Control Board except that those appointed pursuant to item (14) shall serve for a term coterminous with that of their appointing authority. The committee is composed as follows:

(1) two representatives of investor-owned electricity companies;

(2) two representatives of electric cooperatives;

(3) one representative of the South Carolina Public Service Authority, who shall serve ex officio;

(4) one representative of municipally-owned electric utilities;

(5) one representative of publicly-owned natural gas companies;

(6) one representative of investor-owned gas companies;

(7) one representative of oil suppliers or dealers;

(8) one representative of propane suppliers or dealers;

(9) one representative of nonprofit public transportation providers;

(10) two representatives of industrial consumers;

(11) two representatives of commercial consumers;

(12) two representatives of individual consumers; one must be the State Consumer Advocate or the Consumer Advocate's designee, who shall serve ex officio;

(13) two representatives of environmental groups; and

(14) one at-large member appointed by the Governor.

The Budget and Control Board shall elect one of the committee members to serve as chairman. The members of the Energy Advisory Committee are not eligible for per diem payments or for reimbursement for lodging or meals. The functions of the Energy Advisory Committee are advisory to the State Energy Office. The committee shall meet at least annually and at the call of the chair or at the request of at least six members to receive information on the activities of the State Energy Office and the formulation and implementation of the state energy action plan. It may comment and advise on the activities and the plan as considered appropriate by members of the committee. The State Energy Office may seek advice and guidance from the committee as considered appropriate by the director of the office. Members shall adopt rules governing meeting attendance and abide by these rules.

Section 48-52-450. Where possible, the State Energy Office shall encourage consolidating other offices or programs in state government related to energy, energy efficiency, and energy reliability.

Section 48-52-610. The State Energy Office shall develop energy efficient code standards for state-owned and leased buildings, including public school buildings. These standards must provide for life-cycle cost-effectiveness.

Section 48-52-620. (A) Each state agency and public school district shall submit for approval to the State Energy Office an energy conservation plan and energy conservation goals, including energy consumption goals.

(B) In order to monitor energy consumption, the State Energy Office must determine those state buildings which require individual metering. Metering must be installed by the agency, the cost of which must be borne by the agency responsible for the utility bill for the building.

(C) Each state agency and public school district shall submit periodic energy conservation reports in the manner and at such times as required by the State Energy Office.

(D) Each public school district and state agency shall submit to the State Energy Office and each state agency shall include in its annual report to the Budget and Control Board:

(1) activities undertaken implementing its energy conservation plan; and

(2) progress made in achieving its energy conservation goals.

(E) The State Energy Office shall compile the reports submitted pursuant to subsection (C) to be submitted annually, no later than December thirty-first, to the General Assembly. The State Energy Office shall provide suggested formats for plans and goals that must be submitted pursuant to subsection (A), reporting forms for reports required by subsection (C), and all technical assistance necessary for state agencies and school districts to satisfy the requirements of these subsections.

Section 48-52-630. An agency's budget must not be reduced by the full amount of money saved through energy conservation measures. Appropriate financial incentives to encourage the reinvestment of energy costs savings into additional energy conservation areas must be provided. Energy savings must be divided among the agency, the general fund, and debt retirement of capital expenditures on energy efficiency. Agencies must be encouraged to reinvest their savings into energy conservation areas, where practical.

Section 48-52-640. (A) A vendor of energy conservation products making an energy conservation claim and attempting to sell to state government shall submit the product to the State Energy Office for evaluation and certification.

(B) Only energy conservation products certified by the State Energy Office may be purchased by a state agency subject to the state procurement code.

(C) All state agencies shall submit a disclaimer statement to the energy office with their annual report stating that they did not purchase any energy conservation products that had not been certified by the State Energy Office.

Section 48-52-650. The State Energy Office shall establish a mechanism for a revolving loan fund for state agencies to use for energy conservation measures. Repayment may be from the savings in the agency's utility budget.

Section 48-52-660. (A) A state agency may enter into lease purchase agreements for a duration of more than one year with vendors of energy efficiency products and utility companies. No funds disclaimer clause as provided for in Section 11-35-2030 is required in these contracts. Repayment is allowed from savings on the agency utility budget.

(B) Procurements under the South Carolina Consolidated Procurement Code for energy-using goods and facilities must be procured through competitive sealed proposals pursuant to Section 11-35-1530 with life cycle cost criteria stated as an evaluation factor that must be addressed in a proposal.

Section 48-52-670. (A) A governmental unit may enter into guaranteed energy savings contracts for a duration of more than one year with vendors of guaranteed energy savings programs. No funds disclaimer clause as provided for in Section 11-35-2030 is required in these contracts. Repayment may be made from savings on the agency utility budget.

(B) A guaranteed energy savings contract may be awarded pursuant to Section 11-35-130 if it includes a written guarantee that savings will meet or exceed the cost of energy conservation measures.

(C) For purposes of this section, `governmental unit' means a state government agency, department, institution, college, university, technical school, legislative body, or other establishment or official of the executive, judicial, or legislative branches of this State authorized by law to enter into contracts, including all local political subdivisions, including, but not limited to, counties, municipalities, public school districts, or public service or special purpose districts.

(D) For purposes of this section, `guaranteed energy savings contract' means a contract for the evaluation and recommendation of energy conservation measures and for implementation of one or more of these measures. The contract must provide that all payments, except obligations on termination of the contract before its expiration, must be made over time and the energy cost savings resulting from implementation of the energy conservation measures may be used to make payments for the energy conservation systems installed pursuant to guaranteed energy savings contracts.

(E) For purposes of this section `energy conservation measure' means a training program or facility alteration designed to reduce energy consumption or operating costs, including, but not limited to:

(1) insulation of the building structure or systems within the building;

(2) storm windows or doors, caulking or weatherstripping, multiglazed windows or doors, heat absorbing or heat reflective glazed and coated window or door systems, additional glazing, reductions in glass area, or other window and door system modifications that reduce energy consumption;

(3) automated or computerized energy control systems;

(4) heating, ventilating, or air conditioning system modifications or replacements;

(5) replacement or modification of lighting fixtures to increase the energy efficiency of the lighting system without increasing the overall illumination of a facility, unless an increase in illumination is necessary to conform to the applicable state or local building code for the lighting system after the proposed modifications are made;

(6) energy recovery systems;

(7) cogeneration systems that produce steam or forms of energy such as heat, as well as electricity, for use primarily within a building or complex of buildings;

(8) energy conservation measures that provide long-term operating cost reductions.

Section 48-52-680. (A) The State Energy Office shall assist the Materials Management Office as established in Section 11-35-810 and all governmental bodies defined in and subject to the Consolidated Procurement Code, by identifying goods which are `energy efficient' or for which the State can achieve long-term savings through consideration of life cycle costs. The State Energy Office must compile a list of these goods. Before issuing any solicitation for these goods, the procuring agency shall notify the State Energy Office which shall assist in drafting or reviewing specifications for the goods being procured and which shall approve the specifications before issuing the solicitation. Upon request of a governmental body the State Energy Office shall provide assistance in evaluating bids or offers received in response to the solicitation to ensure that procurements are made in accordance with the purposes and policies of this article.

(B) The State Energy Office shall assist the Office of the State Engineer and all governmental bodies defined in and subject to the Consolidated Procurement Code by drafting energy conservation standards to be applied in the design and construction of buildings that are owned or lease/purchased by these governmental bodies. Before any construction contracts are bid under Section 11-35-3020, the State Engineer's Office or the governmental body soliciting the bids shall review the plans and specifications to ensure that they are in compliance with the standards drafted by the State Energy Office. The State Energy Office shall provide assistance in reviewing these plans and specifications upon the request of the State Engineer's Office or the affected governmental body.

(C) The State Energy Office shall provide the Office of Property Management of the Budget and Control Board, Division of General Services, information to be used in evaluating energy costs for buildings or portions of buildings proposed to be leased by governmental bodies that are defined in and subject to the Consolidated Procurement Code. The information provided must be considered with the other criteria provided by law by a governmental body before entering into a real property lease."

Funding

SECTION 2. Funding for the State Energy Office, as created in this part, must be derived from existing financial resources available to the State and may be derived from oil overcharge funds. Personnel for the State Energy Office must be derived from the consolidation of existing state government personnel slots with no new FTE's.

Effect of government restructuring on placement of office

SECTION 3. The establishment of the State Energy Office within the State Budget and Control Board, as provided for in this part, must be evaluated if restructuring or reorganizing of state government takes place so as to identify and provide for the proper placement of the office upon restructuring or reorganizing.

Limitation on amount school districts must spend for energy conservation

SECTION 4. No public school district may be required to expend more than one hundred dollars a year to comply with the provisions of this chapter.

Manufactured housing energy efficiency labels

SECTION 1. The 1976 Code is amended by adding:

"Section 40-29-85. (A) The State Energy Office shall design, produce, and provide to the South Carolina Manufactured Housing Board labels to be distributed to manufactured home manufacturers who shall prominently place a label on each manufactured home that has not been previously occupied as a dwelling that is to be placed for sale in South Carolina.

(B) The label must state clearly whether the manufactured home meets these energy efficiency standards:

(1) storm or double pane glass windows;

(2) insulated or storm doors;

(3) an actual installed insulation value of R-11 for walls;

(4) an actual installed insulation value of R-19 for floors;

(5) an actual installed insulation value of R-30 for ceilings."

Residential energy efficiency standards

SECTION 2. Section 6-10-30(d) of the 1976 Code is amended to read:

"(d) Notwithstanding the provisions of subsection (a), in one and two family dwellings double pane or storm windows must be used for window glass and in the case of ceilings, exterior walls, floors with crawl space, and heating and air conditioning duct work, the determination of the minimum thermal resistance ratings (R-value) must be:

(1) R-30 for ceilings, except for ceiling/roof combinations, which must be R-19;

(2) R-13 for exterior walls;

(3) R-19 for floors with crawl space;

(4) R-6, or the installed equivalent, for heating and air conditioning duct work not located in conditioned space.

Nothing in this subsection may be construed to inhibit utilization of higher minimum thermal ratings.

To facilitate the affordability of purchases of housing, minimum thermal resistance ratings of R-19 for ceilings and R-11 for floors may be used provided the builder discloses the insulation levels to the buyer. The disclosure must be on a form available from the South Carolina Residential Builders Commission and a copy must be submitted to the commission which must keep it for thirteen years."

Sales tax on manufactured housing

Section 3. Section 12-36-2110(B) of the 1976 Code, as added by Part II, Section 74A, Act 612 of 1990, is amended to read:

"(B) For the sale of a manufactured home, as defined in Section 40-29-20, the tax is calculated as follows:

(1) subtract trade-in allowance from the sales price;

(2) multiply the result from (1) by sixty-five percent;

(3) if the result from (2) is no greater than six thousand dollars, multiply by five percent for the amount of tax due;

(4) if the result from (2) is greater than six thousand dollars, the tax due is three hundred dollars plus two percent of the amount greater than six thousand dollars.

However, a manufactured home that has not been previously occupied as a dwelling is exempt from any tax that may be due above three hundred dollars as a result of the calculation in subitem (4) if it meets these energy efficiency standards: storm or double pane glass windows, insulated or storm doors, an actual installed insulation value of R-11 for walls and R-19 for floors, and R-30 for ceilings. The dealer selling the manufactured home must maintain records, on forms provided by the State Energy Office, on each manufactured home sold which contains the above calculations and verifying whether or not the manufactured home met the energy efficiency standards above. These records must be maintained for three years and must be made available for inspection upon request of the Department of Consumer Affairs or the State Energy Office."

Violation

SECTION 4. Section 40-29-240(A) of the 1976 Code, as added by Act 128 of 1989, is amended by adding at the end:

"(7) fail to properly and prominently display the energy efficiency label required by Section 40-29-85."

Energy supply and efficiency requirements for electrical and gas utilities

SECTION 1. Title 58 of the 1976 Code is amended by adding:

Section 58-37-10. As used in this chapter unless the context clearly requires otherwise:

(1) `Demand-side activity' means a program conducted or proposed by a producer, supplier, or distributor of energy for the reduction or more efficient use of energy requirements of the producer's, supplier's, or distributor's customers, including, but not limited to, conservation and energy efficiency, load management, cogeneration, and renewable energy technologies.

(2) `Integrated resource plan' means a plan which contains the demand and energy forecast for at least a fifteen-year period, contains the supplier's or producer's program for meeting the requirements shown in its forecast in an economic and reliable manner, including both demand-side and supply-side options, with a brief description and summary cost-benefit analysis, if available, of each option which was considered, including those not selected, sets forth the supplier's or producer's assumptions and conclusions with respect to the effect of the plan on the cost and reliability of energy service, and describes the external environmental and economic consequences of the plan to the extent practicable. For electrical utilities and public utilities providing gas services subject to the jurisdiction of the South Carolina Public Service Commission, this definition must be interpreted in a manner consistent with the integrated resource planning process adopted by the commission. For electric cooperatives subject to the regulations of the Rural Electrification Administration, this definition must be interpreted in a manner consistent with any integrated resource planning process prescribed by Rural Electrification Administration regulations.

Section 58-37-20. The South Carolina Public Service Commission must adopt procedures that encourage electrical utilities and public utilities providing gas services subject to the jurisdiction of the commission to invest in cost-effective energy efficient technologies and energy conservation programs. These procedures must provide incentives and cost recovery for energy suppliers and distributors who invest in energy supply and end-use technologies that are cost-effective, environmentally acceptable, and reduce energy consumption or demand. These procedures must allow energy suppliers and distributors to recover costs and obtain a reasonable rate of return on their investment in qualified demand-side management programs sufficient to make these programs at least as financially attractive as construction of new generating facilities. The Public Service Commission shall establish rates and charges that ensure that the net income of an electrical or gas utility regulated by the commission after implementation of specific cost-effective energy conservation measures is at least as high as the net income would have been if the energy conservation measures had not been implemented. For purposes of this section only, the term `demand-side activity' means a program conducted by an electrical utility or public utility providing gas services for the reduction or more efficient use of energy requirements of the utility or its customers, including, but not limited to, utility transmission and distribution system efficiency, customer conservation and efficiency, load management, cogeneration, and renewable energy technologies.

Section 58-37-30. (A) The South Carolina Public Service Commission must report annually to the General Assembly on available data regarding the past, on-going, and projected status of demand-side activities and purchase of power from qualifying facilities, as defined in the Public Utilities Regulatory Policies Act of 1978, by electrical utilities and public utilities providing gas services subject to the jurisdiction of the Public Service Commission.

(B) Electric cooperatives providing resale or retail services, municipally-owned electric utilities, and the South Carolina Public Service Authority shall report annually to the State Energy Office on available data regarding the past, on-going, and projected status of demand-side activities and purchase of power from qualifying facilities. For electric cooperatives, submission to the State Energy Office of a report on demand-side activities in a format complying with then current Rural Electrification Administration regulations constitutes compliance with this subsection. An electric cooperative providing resale services may submit a report in conjunction with and on behalf of any electric cooperative which purchases electric power and energy from it. The State Energy Office must compile and submit this information annually to the General Assembly.

(C) The State Energy Office may provide forms for the reports required by this section to the Public Service Commission and to electric cooperatives, municipally-owned electric utilities, and the South Carolina Public Service Authority. The office shall strive to minimize differing formats for reports, taking into account the reporting requirements of other state and federal agencies. For electrical utilities and public utilities providing gas services subject to the jurisdiction of the commission, the reporting form must be in a format acceptable to the commission.

Section 58-37-40. (A) Electrical utilities, public utilities providing gas services, and the South Carolina Public Service Authority must prepare integrated resource plans. The South Carolina Public Service Authority and electrical and gas utilities regulated by the Public Service Commission must submit their plans to the State Energy Office. The plan submitted by the South Carolina Public Service Authority must be developed in consultation with electric cooperatives and municipally-owned electric utilities purchasing power and energy from the authority and must include the effect of demand-side management activities of electric cooperatives and municipally-owned electric utilities which directly purchase power and energy from the authority or sell power and energy which the authority generates. All plans must be submitted every three years and must be updated on an annual basis. The first integrated resource plan of the South Carolina Public Service Authority must be submitted no later than June 30, 1993. An integrated resource plan may be patterned after the integrated resource planning process developed by the Public Service Commission. For electrical utilities and public utilities providing gas services subject to the jurisdiction of the commission, submission of their plans as required by the commission constitutes compliance with this section. Nothing in this subsection may be construed as requiring interstate natural gas companies whose rates and services are regulated only by the federal government to prepare and submit an integrated resource plan.

(B) Electric cooperatives and municipally-owned electric utilities must submit integrated resource plans to the State Energy Office whenever they are required by federal law to prepare these plans or if they plan to acquire, by purchase or construction, ownership of additional generating capacity greater than twelve megawatts per unit. An integrated resource plan must be submitted to the State Energy Office by an electric cooperative or municipally-owned electric utility twelve months before the acquisition, by purchase or construction, of additional generating capacity in excess of twelve megawatts per unit. For an electric cooperative, submission to the State Energy Office of its plan in a format complying with the then current Rural Electrification Administration regulations constitutes compliance with this section.

(C) The State Energy Office, to the extent practicable, shall evaluate and comment on external environmental and economic consequences of each integrated resource plan submitted and on the environmental and economic consequences for suppliers and distributors.

(D) The State Energy Office shall coordinate the preparation of an integrated resource plan for the State and shall coordinate with regional groups, including the Southern States Energy Board.

(E) The State Energy Office must not exercise any regulatory authority with regard to the requirements set forth in this chapter.

(F) No procedures for integrated resource planning for utilities providing natural gas services may be recommended nor may integrated resource plan reporting be required of utilities providing natural gas services unless and until integrated resource planning procedures for utilities providing natural gas services are adopted by the Public Service Commission."

Highway development and energy efficiency

SECTION 1. The 1976 Code is amended by adding:

"Section 57-1-140. Before building new or expanding existing primary highways, roads, and streets, the South Carolina Department of Highways and Public Transportation shall consider and make a written determination whether it is financially and physically feasible to include:

(1) high occupancy vehicle lanes, when the construction or expansion is in a metropolitan area;

(2) pedestrian walkways or sidewalks; and

(3) bicycle lanes or paths.

A copy of this determination must be submitted to the State Energy Office."

State vehicle fleet

SECTION 2. Section 1-11-310 of the 1976 Code is amended to read:

"Section 1-11-310. (A) The State Budget and Control Board shall purchase, acquire, transfer, replace, and dispose of all motor vehicles on the basis of maximum cost-effectiveness and lowest anticipated total life cycle costs.

(B) The standard state fleet sedan or station wagon must be no larger than a compact model and the special state fleet sedan or station wagon must be no larger than an intermediate model. The director of the Division of Motor Vehicle Management shall determine the types of vehicles which fit into these classes. Only these classes of sedans and station wagons may be purchased by the State for nonlaw enforcement use.

(C) The State shall purchase police sedans only for the use of law enforcement officers, as defined by the Internal Revenue Code. Purchase of a vehicle under this subsection must be concurred in by the director of the Division of Motor Vehicle Management and must be in accordance with regulations promulgated or procedures adopted under Sections 1-11-220 through 1-11-340 which must take into consideration the agency's mission, the intended use of the vehicle, and the officer's duties. Law enforcement agency vehicles used by employees whose job functions do not meet the Internal Revenue Service definition of `Law Enforcement Officer' must be standard or special state fleet sedans.

(D) All state motor vehicles must be titled to the State and must be received by and remain in the possession of the Division of Motor Vehicle Management pending sale or disposal of the vehicle.

(E) Titles to school buses and service vehicles operated by the State Department of Education and vehicles operated by the South Carolina Department of Highways and Public Transportation must be retained by those agencies.

(F) Exceptions to requirements in subsections (B) and (C) must be approved by the director of the Division of Motor Vehicle Management. Requirements in subsection (B) do not apply to the State Development Board.

(G) Preference in purchasing state motor vehicles must be given to vehicles assembled in the United States with at least seventy-five percent domestic content as determined by the appropriate federal agency."

Sales tax exemption

SECTION 3. Section 12-36-2120(15) of the 1976 Code, as added by Part II, Section 74A, Act 612 of 1990, is amended to read:

"(15) gasoline or other motor vehicle fuels taxed at the same rate as gasoline, fuels used in farm machinery, farm tractors, and commercial fishing vessels, and clean alternative transportation fuels as defined in regulation by the South Carolina Tax Commission as defined by the State Energy Office. Gasoline used in aircraft is not exempted by this item;".

Definitions; Solid waste management

SECTION 4. Section 44-96-40(27) of the 1976 Code, as added by Act 63 of 1991, is amended to read:

"(27) `Motor oil' and `similar lubricants' mean the fraction of crude oil or synthetic oil that is classified for use in the crankcase, transmission, gearbox, or differential of an internal combustion engine, including automobiles, buses, trucks, lawn mowers and other household power equipment, industrial machinery, and other mechanical devices that derive their power from internal combustion engines. The terms include re-refined oil but do not include heavy greases and specialty industrial or machine oils, such as spindle oils, cutting oils, steam cylinder oils, industrial oils, electrical insulating oils, or solvents which are not sold at retail in this State."

Used oil recycling

SECTION 5. Section 44-96-160(D) of the 1976 Code, as added by Act 63 of 1991, is amended by adding at the end:

"A retail dealer of motor oil who maintains a separate tank for a voluntary used oil collection center as approved by the department under this section is eligible for a payment from the South Carolina Tax Commission from fees collected pursuant to subsection (V) of five cents for every gallon of motor oil that is properly returned on a voluntary basis to a registered used oil transporter or permitted used oil recycling facility upon proper verification."

Petroleum Fund

SECTION 6. The first paragraph of Section 44-96-160(V)(2) of the 1976 Code, as added by Act 63 of 1991, is amended to read:

"The Tax Commission shall remit fees collected pursuant to this section to the Solid Waste Management Trust Fund, less payments made pursuant to subsection (D). The fees must be reserved in a separate account designated as the Petroleum Fund. The Petroleum Fund must be under the administration of the Office of Solid Waste Reduction and Recycling."

Used oil collection center rebate

SECTION 7. Section 44-96-160(V)(2)(a)(2) of the 1976 Code, as added by Act 63 of 1991, is amended to read:

"(2) the establishment and continued operation of collection centers which accept used oil, including a one-time rebate to retailers who maintain department approved used oil collection centers for equipment used in the used oil collection process, not to exceed five hundred dollars a location. The used oil collection center must maintain a separate tank for the collection of voluntarily returned used oil to be eligible for this rebate. This rebate must be distributed by the department upon approval of the collection center by the department and submittal of proof of purchase of the equipment."

Used oil collection site and recycling report

SECTION 8. Section 44-96-160 of the 1976 Code is amended by adding at the end:

"(Z) Beginning February 28, 1993, and no later than February twenty-eighth each year thereafter, the Office of Solid Waste and Recycling shall submit to the Governor and to the General Assembly a report for the previous calendar year, including:

(1) the number of used oil collection sites available in each county to the general public;

(2) the number and location of used oil collection sites in each county receiving ongoing and start-up assistance from the Office of Solid Waste Reduction and Recycling;

(3) the amount of used oil collected in each county."

Voters to approve establishment of regional transportation authority

SECTION 9. Section 58-25-30(3) and (4) of the 1976 Code are amended to read:

"(3) Upon the execution of the agreement by the governing bodies of the cities and the counties which include at least ninety percent of the population of the proposed service area within their jurisdictions, and only if the agreement provides for imposition of a new source of revenue such as a new tax, the question of creating such an authority under the terms of the executed agreement must be submitted for ratification to the qualified electors within the proposed service area at a general election or at a special election called for that purpose as set forth in the agreement. If an existing source or sources of revenue are utilized to fund the authority, an election is not required. If an election is required, the agreement shall become operational upon the approval of the majority of the voters within the service area voting on the question and the authority must be created not less than sixty days after the results of the election are certified. If an election is not required, the agreement becomes operational upon the execution of the agreement by the governing bodies of the cities and counties which include at least ninety percent of the population of the proposed service area, and the authority must be created not less than sixty days after the agreement is executed.

(4) If an election is required, the question to be placed before the electorate must state the service area of the proposed authority (cities and counties involved) and the proposed method of financing, including the level of tax to be initially imposed, and membership on the board."

Transportation authority budget information must be publicly available

SECTION 10. Section 58-25-30, as last amended by Act 625 of 1988, is further amended by adding an appropriately numbered item to read:

"( ) For fiscal years after creation of a regional transportation authority, the governing bodies of the cities and counties within the service area of the authority publicly must make available information regarding the portion of their budgets which is devoted to the financial support of the authority and the estimated portion of any revenue source which would be utilized to support the authority."

Authority board members, appointments; apportionment among service area

SECTION 11. Section 58-25-40(1) of the 1976 Code, as last amended by Act 202 of 1989, is further amended to read:

"(1) The members of the authority must be represented on the governing board of the authority by appointees of the governing bodies of the cities and counties within the service area as set forth in Section 58-25-35. The appointees may be elected officials of these local governing bodies and if so would serve in an ex officio capacity. The governing board of the authority must be made up of not more than two times the number of authority governmental members and up to three additional members appointed by the legislative delegation as provided in this section.

There must be at least five board members. The membership of the governing board must be apportioned among the member cities and counties proportionate to population within the authority's service area.

As many as three additional members of the governing board of a transportation authority may be appointed by the legislative delegations of the member counties if approved in accordance with the procedures set forth in Section 58-25-30. If the authority receives a grant of the state funds from the general fund or the highway fund, the delegation shall appoint three additional members. Unless the agreement provides otherwise, the members of the governing board appointed by the delegation must be apportioned as determined by a majority of the delegation members, including the resident senator. No member government, regardless of population, may have less than one member on the board. County population must be determined after subtracting the member city population in that county. The terms of the representatives serving on the governing board of the authority must be staggered so that the terms of approximately one-third of the governing board expire each year. After the initial terms as set forth in the agreement to achieve staggered terms, subsequent terms must be for three years. Members of the governing board of the authority may be reimbursed for expenses incurred in connection with their service on the authority but they may not receive salaries, per diem, or other compensation. Members shall adopt and abide by rules governing meeting attendance."

Voters to approve joining existing authority

SECTION 12. Section 58-25-40(3) of the 1976 Code is amended to read:

"(3) Subsequent to the activation of the authority, contiguous counties or cities not participating initially may become members of the authority with the same benefits as the initial members pursuant to the procedure set forth in Section 58-25-30 and with the approval by a majority vote of the board of the authority."

Coordinated transportation plan

SECTION 13. Section 58-25-50 of the 1976 Code is amended by adding at the end:

"The authority or other authorized regional transportation organization, in conjunction with all other organizations providing public transportation in the service area, shall prepare and produce a plan to coordinate public transportation services provided by each entity utilizing state funds or funds administered by the State to ensure that resources are being used in the most efficient and cost-effective manner. The coordinated transportation plan must maintain the provision, type, and level of assistance to individuals at least equal in quality to that provided by the human service transportation providers in the service area. The failure of an entity providing these services to comply with the coordinated plan must be reported by the authority or the service provider to the appropriate state agencies or funding authorities which administer, contract, grant, approve, or appropriate funds for services. Transportation resources presently owned by or under contractual agreement of the service provider must remain under the authority of the service provider."

Limitations on use of property tax and vehicle registration fee to fund authority

SECTION 14. Section 58-25-60 of the 1976 Code is amended by adding at the end:

"Property tax revenue must not be used to support operation of the authority unless the authority has been approved by referendum pursuant to Section 58-25-30. In areas with Regional Transportation Authorities in existence on the effective date of this act, a vehicle registration fee increase for the purpose of financing a Regional Transportation Authority must be approved in referendum by a majority of the electorate in the area to which the vehicle registration fee increase would apply."

Alternative transportation fuels study committee

SECTION 15. (A) There is created the Alternative Transportation Fuels Study Committee to conduct a comprehensive study of clean alternative transportation fuels. The members of the committee must be appointed by the Speaker of the House of Representatives and the Lieutenant Governor and must include representatives of:

(1) the State Energy Office;

(2) the Joint Legislative Committee on Energy;

(3) the South Carolina Department of Health and Environmental Control;

(4) the South Carolina Department of Highways and Public Transportation;

(5) the Division of Motor Vehicle Management of the State Budget and Control Board.

(B) At the initial meeting of the committee, the members shall elect a chairman from among the members appointed pursuant to subsection (A). The committee shall meet upon the call of the chair.

(C) A vacancy occurring on the committee must be filled in the same manner as the original appointment.

(D) The members of the committee shall serve at no additional expense to the State.

(E) The purpose of the Alternative Transportation Fuels Study Committee is to study and analyze all issues pertaining to the use of alternative transportation fuels, including, but not limited to, natural gas, propane, electricity, ethanol, methanol, solar energy, hydrogen, and reformulated gasoline, and to make recommendations to the Governor and to the General Assembly regarding an alternative transportation fuels strategy to be implemented by the State.

(F) The Alternative Transportation Fuels Study Committee shall:

(1) research and review current sources of transportation fuels, including, but not limited to, current technical reports, ongoing projects, and other states' initiatives;

(2) research and analyze the financial implications of implementing an alternative fuels program, including other states' incentive programs and initiatives, and make recommendations to the Governor and to the General Assembly regarding alternative transportation fuels incentive packages. The committee shall specifically consider and make recommendations regarding:

(a) exemptions and reductions of the state motor fuels taxes for clean fuel vehicles;

(b) state-initiated, self-sustaining revolving funds for providing low or no interest financing for clean fuel vehicle purchases and conversion projects;

(c) investment tax credits for vehicle conversions, new vehicle purchases, and refueling equipment;

(d) exemptions and reductions of sales taxes associated with clean fuel vehicle purchases; and

(e) other possible incentives for clean fuel vehicle conversions, new vehicle replacements, and the development of refueling infrastructure;

(3) research and make recommendations to the Governor and to the General Assembly on the establishment by the State of alternative transportation fuels demonstration projects using a portion of the state's fleet by the end of the calendar year 1992 and on how to structure the demonstration projects to serve the following purposes:

(a) collect and analyze actual operating data;

(b) increase public knowledge of alternative transportation fuels; and

(c) serve as teaching and training tools for future clean transportation fuels programs;

(4) make recommendations to the Governor and to the General Assembly on:

(a) the establishment of percentage goals for implementing alternatively fueled vehicles in government fleets which are centrally garaged and fueled;

(b) how the State should promote alternative transportation vehicle use by private, centrally fueled, and garaged fleets in designated metropolitan areas;

(c) the development of education programs for local governments and corporations which may be subject to federal or state alternative transportation fuels measures; and

(5) prioritize the alternative transportation fuels researched by the committee in terms of environmental impact, economics, availability, technological advantages, and performance.

(G) In carrying out its responsibilities under subsection (C), the committee shall consult with local companies that have expertise in alternative transportation fuels issues or which would be affected by a recommendation likely to be proposed by the committee.

(H) All meetings of the Alternative Transportation Fuels Study Committee must be open to the public.

(I) The committee shall hold at least one public hearing to allow affected companies and the general public an opportunity to comment on the proposed recommendations before presentation of the final recommendations of the committee to the Governor and to the General Assembly.

(J) The Alternative Transportation Fuels Study Committee must submit its final report and recommendations in writing to the Governor and to the General Assembly no later than six months after the effective date of this resolution.

(K) Members of this committee are not eligible for per diem, travel, lodging, or meals. Members shall adopt rules governing meeting attendance and abide by these rules.

After making its final report, the committee is dissolved.

Task force on feasibility of intrastate rail service

SECTION 16. The Joint Legislative Committee on Energy shall appoint a task force to study the feasibility of establishing intrastate rail service and connecting with population centers in North Carolina and Georgia. This study must be submitted to the General Assembly no later than January 15, 1993.

Feasibility of using alternative transportation fuels for state fleet

SECTION 17. The State Budget and Control Board Division of Motor Vehicle Management shall determine the extent to which the state vehicle fleet can be configured to operate on alternative transportation fuels. This determination must be based on a thorough evaluation of each alternative fuel and the feasibility of using such fuels to power state vehicles. The state fleet must be configured in a manner that will serve as a model for other corporate and government fleets in the use of alternative transportation fuel. By March 1, 1993, the Division of Motor Vehicle Management must submit a plan to the General Assembly for the use of alternative transportation fuels for the state vehicle fleet that will enable the state vehicle fleet to serve as a model for corporate and other government fleets in the use of alternative transportation fuel. This plan must contain a cost/benefit analysis of the proposed changes.

Effective date

SECTION 1. This act takes effect July 1, 1992, except Part III which takes effect January 1, 1993.

Approved the 1st day of July, 1992.