H.B. No. 923 1-1 AN ACT 1-2 relating to statewide energy policy and research. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 ARTICLE 1. GENERAL PROVISIONS 1-5 SECTION 1.01. DEFINITIONS. In this Act: 1-6 (1) "Committee" means the Texas Committee on Energy 1-7 Policy. 1-8 (2) "Coordinating board" means the Texas Higher 1-9 Education Coordinating Board. 1-10 (3) "Council" means the Texas Energy Coordination 1-11 Council. 1-12 (4) "Postsecondary educational institution" means an 1-13 institution of higher education as defined by Section 61.003, 1-14 Education Code, or a private or independent college or university 1-15 that is accredited by a recognized accrediting agency, as defined 1-16 by that section. 1-17 SECTION 1.02. PURPOSE. The purposes of this Act are to 1-18 develop a statewide energy policy and to coordinate the development 1-19 and marketing of all aspects of energy research at postsecondary 1-20 educational institutions and at nonprofit research organizations or 1-21 associations, from the development of basic theoretical and 1-22 experimental frameworks to the transfer of new energy technology to 1-23 the marketplace. 1-24 SECTION 1.03. ENERGY ACCOUNT. (a) The energy account is 2-1 created as a special account in the general revenue fund in the 2-2 state treasury. 2-3 (b) The account consists of gifts, grants, and funds 2-4 appropriated by the legislature. 2-5 (c) Money in the account may be appropriated only to the 2-6 council for the purposes of this Act. 2-7 SECTION 1.04. FUNDING. In addition to money appropriated 2-8 from the energy account, the council is entitled to an 2-9 appropriation each biennium in an amount equal to: 2-10 (1) three times the estimated amount of money raised 2-11 from private sources during the previous biennium, if the estimated 2-12 amount is $500,000 or more but less than $1,000,000; 2-13 (2) five times the estimated amount of money raised 2-14 from private sources during the previous biennium, if the estimated 2-15 amount is $1,000,000 or more but less than $1,500,000; and 2-16 (3) seven times the estimated amount of money raised 2-17 from private sources during the previous biennium, if the estimated 2-18 amount is $1,500,000 or more, with a maximum entitlement under 2-19 this section of $21 million. 2-20 ARTICLE 2. TEXAS COMMITTEE ON ENERGY POLICY 2-21 SECTION 2.01. TEXAS COMMITTEE ON ENERGY POLICY. The Texas 2-22 Committee on Energy Policy is composed of the following ex officio 2-23 members: 2-24 (1) the governor; 2-25 (2) the lieutenant governor; 2-26 (3) the speaker of the house of representatives; 2-27 (4) the chairman of the house of representatives 3-1 committee on energy; 3-2 (5) the chairman of the senate committee on natural 3-3 resources; 3-4 (6) a member of the Railroad Commission of Texas, 3-5 appointed by the Railroad Commission of Texas; 3-6 (7) a member of the Public Utility Commission of 3-7 Texas, appointed by the Public Utility Commission of Texas; and 3-8 (8) the commissioner of the General Land Office. 3-9 SECTION 2.02. TERMS; VACANCY. (a) Appointed members serve 3-10 for four-year terms. The initial appointees serve until February 3-11 1, 1999, and subsequent terms expire on February 1 of every fourth 3-12 year thereafter. 3-13 (b) The original appointing authority shall appoint a person 3-14 with similar qualifications to fill the unexpired portion of the 3-15 term of a vacancy of an appointed member of the committee. 3-16 SECTION 2.03. OFFICERS; MEETINGS. (a) The members of the 3-17 committee shall elect annually a presiding officer of the 3-18 committee. 3-19 (b) The committee may elect other officers it considers 3-20 necessary. 3-21 (c) The committee shall meet at least once each calendar 3-22 quarter and at other times at the call of the presiding officer. 3-23 SECTION 2.04. COMPENSATION; EXPENSES. A member of the 3-24 committee may not receive compensation for service performed for 3-25 the committee. A member is entitled to receive reimbursement from 3-26 the energy account, subject to any applicable limitation provided 3-27 by the General Appropriations Act, for actual or necessary expenses 4-1 incurred in performing services as a member of the committee. 4-2 SECTION 2.05. STAFF. (a) The committee may employ staff or 4-3 may use the staff of the governor. 4-4 (b) The committee may not employ an individual, and an 4-5 employee of the committee may not continue in employment with the 4-6 committee, if the individual at the time of employment or while 4-7 employed by the committee is: 4-8 (1) a person required to register under Chapter 305, 4-9 Government Code; or 4-10 (2) a member of the legislature. 4-11 SECTION 2.06. POWERS AND DUTIES. (a) The committee may: 4-12 (1) set priority areas for energy coordination or for 4-13 energy research; 4-14 (2) provide national leadership on emerging energy 4-15 policy; 4-16 (3) adopt rules for the administration of this 4-17 article; 4-18 (4) accept gifts and grants for the administration of 4-19 its duties; and 4-20 (5) use a service or facility contributed to the 4-21 committee by any source. 4-22 (b) The committee shall: 4-23 (1) develop coherent long-term energy policy for this 4-24 state; 4-25 (2) make recommendations to the state and to industry 4-26 regarding energy use; and 4-27 (3) encourage cooperation and coordination between 5-1 public and private entities regarding energy use and energy 5-2 research, development, and commercialization. 5-3 ARTICLE 3. TEXAS ENERGY COORDINATION COUNCIL 5-4 SECTION 3.01. COMPOSITION. (a) The Texas Energy 5-5 Coordination Council is composed of the following ex officio 5-6 members: 5-7 (1) a representative from Texas Tech University to be 5-8 designated by the president of the university; 5-9 (2) the director of the Energy System Laboratory of 5-10 Texas A&M University; 5-11 (3) the director of the Center for Energy Studies at 5-12 The University of Texas at Austin; 5-13 (4) a representative of industrial energy consumers; 5-14 (5) the director of the Energy Laboratory of the 5-15 University of Houston; and 5-16 (6) the director of the Alternative Energy Institute 5-17 of West Texas State University. 5-18 (b) The governor shall appoint the following members to 5-19 serve on the council: 5-20 (1) a representative of the natural gas industry; 5-21 (2) a representative of the oil industry; 5-22 (3) a representative of the alternative fuels 5-23 industry; 5-24 (4) a representative of the Texas Sustainable Energy 5-25 Development Council or renewable energy industry; 5-26 (5) a representative of the electric utility industry; 5-27 and 6-1 (6) a representative of an energy consumer 6-2 organization or environmental organization. 6-3 (c) If a postsecondary educational institution eliminates 6-4 the entity whose director serves on the council, the institution 6-5 shall name a representative to serve on the council. The 6-6 representative must be an individual at the institution with 6-7 responsibilities related to the mission of the council and must 6-8 hold a position of a level similar to the level of the position of 6-9 director of the eliminated entity. 6-10 SECTION 3.02. TERMS; VACANCY. (a) Appointed members serve 6-11 for staggered terms of two years, with the terms of three members 6-12 expiring December 31 of each year. 6-13 (b) The governor shall appoint an individual with similar 6-14 qualifications to fill the unexpired portion of the term of a 6-15 vacancy of an appointed member of the council. 6-16 SECTION 3.03. OFFICERS; MEETINGS. (a) The members of the 6-17 council shall elect annually a presiding officer of the council. 6-18 (b) The council may elect other officers it considers 6-19 necessary. 6-20 (c) The council shall meet at least once each calendar 6-21 quarter and at other times at the call of the presiding officer. 6-22 SECTION 3.04. COMPENSATION; EXPENSES. A member of the 6-23 council may not receive compensation for service performed for the 6-24 council. A member is entitled to receive reimbursement, subject to 6-25 any applicable limitation provided by the General Appropriations 6-26 Act, for actual or necessary expenses incurred in performing 6-27 services as a member of the council. 7-1 SECTION 3.05. STAFF. (a) The council may employ staff or 7-2 may use, with the entity's consent, the staff of the coordinating 7-3 board, a participating postsecondary educational institution, or a 7-4 nonprofit research organization or association. 7-5 (b) The council may not employ an individual, and an 7-6 employee of the council may not continue in employment with the 7-7 council, if the individual at the time of employment or while 7-8 employed by the council is: 7-9 (1) a person required to register under Chapter 305, 7-10 Government Code; or 7-11 (2) a member of the legislature. 7-12 SECTION 3.06. DUTIES. The council shall: 7-13 (1) establish an institute for building energy 7-14 efficiency throughout this state; 7-15 (2) adopt strategies to assess energy resources; 7-16 (3) promote energy efficiency in transportation; 7-17 (4) make recommendations to reduce energy consumption 7-18 by the state; 7-19 (5) promote energy efficiency in industry; 7-20 (6) assess the interrelation between energy and the 7-21 environment; 7-22 (7) promote the efficient use of renewable resources; 7-23 (8) evaluate the effects of existing energy taxes on 7-24 the state economy; 7-25 (9) recommend new energy taxes to promote energy 7-26 efficiency; 7-27 (10) promote the formation of consortia to study 8-1 energy uses; 8-2 (11) actively seek monetary support for the purposes 8-3 of this Act; 8-4 (12) coordinate the transfer of energy technology to 8-5 the marketplace; 8-6 (13) promote the use of energy research findings; 8-7 (14) encourage and coordinate energy research among 8-8 postsecondary educational institutions, other public and private 8-9 entities, industrial entities, and nonprofit research entities; 8-10 (15) coordinate energy research among state research 8-11 programs; 8-12 (16) provide criteria and recommendations for the 8-13 awarding of grants for energy research projects approved by state 8-14 research programs; 8-15 (17) promote energy technologies in nonresource areas; 8-16 and 8-17 (18) provide support for the committee. 8-18 SECTION 3.07. POWERS. The council may: 8-19 (1) encourage research collaborations among 8-20 postsecondary educational institutions and nonprofit research 8-21 organizations or associations; 8-22 (2) coordinate information sharing among postsecondary 8-23 educational institutions and nonprofit research organizations or 8-24 associations; 8-25 (3) encourage projects that propose innovative, 8-26 collaborative efforts among two or more postsecondary educational 8-27 institutions or nonprofit research organizations or associations or 9-1 between a postsecondary educational institution or nonprofit 9-2 research organization or association and private industry; 9-3 (4) conduct public relations activities concerning the 9-4 activities of the council; 9-5 (5) develop computer software to facilitate the 9-6 discharge of the council's duties; 9-7 (6) establish a computer data base of energy research 9-8 information that is accessible to all postsecondary educational 9-9 institutions and all nonprofit research organizations or 9-10 associations; 9-11 (7) contract or cooperate with the federal government 9-12 or private research entities; 9-13 (8) conduct technical seminars on energy research; 9-14 (9) provide information to the public on energy 9-15 research; and 9-16 (10) meet and coordinate with each institution of 9-17 higher education's federal funds coordinator designated under 9-18 Section 751.022(d), Government Code. 9-19 SECTION 3.08. GIFT, GRANT, AND CONTRIBUTED SERVICE OR 9-20 FACILITY. (a) The council may accept a gift or grant from any 9-21 source to be used by the council for the purposes of this Act. 9-22 (b) The council may use a service or facility contributed to 9-23 the council by any source. 9-24 SECTION 3.09. DISTRIBUTION OF GRANTS. (a) The council may 9-25 make grants from funds available to the council to postsecondary 9-26 educational institutions or nonprofit research organizations or 9-27 associations to fund research consistent with the mission of the 10-1 council. To receive a grant from the council, a postsecondary 10-2 educational institution or a nonprofit research organization or 10-3 association must submit to the council an application for the 10-4 grant, on a form prescribed by the council, and a proposal for the 10-5 project for which the grant is sought. 10-6 (b) The council shall approve applications on an equitable 10-7 basis. 10-8 (c) Not later than September 1 of each fiscal year, the 10-9 comptroller shall certify to the council the amount of appropriated 10-10 funds available from which to make grants under this section for 10-11 that fiscal year. 10-12 (d) The council may not approve an application if the amount 10-13 of money required to fund the proposal is greater than an amount 10-14 equal to the total amount of money available to the council to make 10-15 grants under this section for the fiscal year during which the 10-16 award is made. 10-17 (e) For each application approved by the council, the 10-18 council shall certify to the comptroller the amount of funds 10-19 approved for the project. To the extent that funds are available 10-20 for this purpose, the comptroller shall issue a warrant to the 10-21 postsecondary educational institution or nonprofit research 10-22 organization or association in the amount certified in the order 10-23 that the comptroller receives the certification. The warrant shall 10-24 be drawn against the amounts appropriated to the council. 10-25 ARTICLE 4. MISCELLANEOUS PROVISIONS 10-26 SECTION 4.01. TRANSITION. (a) Not later than February 1, 10-27 1994, the Railroad Commission of Texas and the Public Utility 11-1 Commission of Texas shall make initial appointments of members to 11-2 serve on the Texas Committee on Energy Policy for terms expiring 11-3 February 1, 1995. 11-4 (b) Not later than January 1, 1994, the governor shall make 11-5 initial appointments of three representatives to serve on the Texas 11-6 Energy Coordination Council for terms expiring December 31, 1994, 11-7 and three representatives to serve on the council for terms 11-8 expiring December 31, 1995. 11-9 SECTION 4.02. EMERGENCY. The importance of this legislation 11-10 and the crowded condition of the calendars in both houses create an 11-11 emergency and an imperative public necessity that the 11-12 constitutional rule requiring bills to be read on three several 11-13 days in each house be suspended, and this rule is hereby suspended, 11-14 and that this Act take effect and be in force from and after its 11-15 passage, and it is so enacted.