By: Earley H.B. No. 923 73R1705 SOS-D A BILL TO BE ENTITLED 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 Energy Environmental 1-7 Economic Policy Committee. 1-8 (2) "Coordinating board" means the Texas Higher 1-9 Education Coordinating Board. 1-10 (3) "Council" means the Texas Energy Economics and 1-11 Environmental Coordinating Council. 1-12 (4) "Institution of higher education" has the meaning 1-13 assigned by Section 61.003, Education Code. 1-14 SECTION 1.02. PURPOSE. The purposes of this Act are to 1-15 develop a statewide energy policy and to coordinate the development 1-16 and marketing of all aspects of energy research at institutions of 1-17 higher education, from the development of basic theoretical and 1-18 experimental frameworks to the transfer of new energy technology to 1-19 the marketplace. 1-20 SECTION 1.03. ENERGY FUND. (a) A special fund to be known 1-21 as the energy fund is created as a special account in the general 1-22 revenue fund in the state treasury. 1-23 (b) The fund consists of money credited to the fund under 1-24 Section 80, Public Utility Regulatory Act (Article 1446c, Vernon's 2-1 Texas Civil Statutes), gifts, grants, and funds appropriated by the 2-2 legislature. 2-3 (c) Money in the fund may be appropriated only to the 2-4 council for the purposes of this Act. 2-5 SECTION 1.04. FUNDING. In addition to money appropriated 2-6 from the energy fund, the council is entitled to an appropriation 2-7 each biennium in an amount equal to: 2-8 (1) three times the estimated amount of money raised 2-9 from private sources during the previous biennium, if the estimated 2-10 amount is $500,000 or more but less than $1,000,000; 2-11 (2) five times the estimated amount of money raised 2-12 from private sources during the previous biennium, if the estimated 2-13 amount is $1,000,000 or more but less than $1,500,000; and 2-14 (3) seven times the estimated amount of money raised 2-15 from private sources during the previous biennium, if the estimated 2-16 amount is $1,500,000 or more, with a maximum entitlement under 2-17 this section of $21 million. 2-18 ARTICLE 2. ENERGY ENVIRONMENTAL ECONOMIC POLICY COMMITTEE 2-19 SECTION 2.01. ENERGY ENVIRONMENTAL ECONOMIC POLICY 2-20 COMMITTEE. The Energy Environmental Economic Policy Committee is 2-21 composed of the following ex officio members: 2-22 (1) the governor; 2-23 (2) the lieutenant governor; 2-24 (3) the speaker of the house of representatives; 2-25 (4) the chairman of the house of representatives 2-26 committee on energy; 2-27 (5) the chairman of the senate committee on natural 3-1 resources; 3-2 (6) a member of the Railroad Commission of Texas, 3-3 appointed by the governor; and 3-4 (7) a member of the Public Utility Commission of 3-5 Texas, appointed by the governor. 3-6 SECTION 2.02. TERMS; VACANCY. (a) Appointed members serve 3-7 for two-year terms expiring February 1 of each odd-numbered year. 3-8 (b) The governor shall appoint a person with similar 3-9 qualifications to fill the unexpired portion of the term of a 3-10 vacancy of an appointed member of the committee. 3-11 SECTION 2.03. OFFICERS; MEETINGS. (a) The members of the 3-12 committee shall elect annually a presiding officer of the 3-13 committee. 3-14 (b) The committee may elect other officers it considers 3-15 necessary. 3-16 (c) The committee shall meet at least once each calendar 3-17 quarter and at other times at the call of the presiding officer. 3-18 SECTION 2.04. COMPENSATION; EXPENSES. A member of the 3-19 committee may not receive compensation for service performed for 3-20 the committee. A member is entitled to receive reimbursement from 3-21 the energy fund, subject to any applicable limitation provided by 3-22 the General Appropriations Act, for actual or necessary expenses 3-23 incurred in performing services as a member of the committee. 3-24 SECTION 2.05. STAFF. (a) The committee may employ staff or 3-25 may use the staff of the governor or of the council. The council 3-26 shall provide any staff requested by the committee. 3-27 (b) The committee may not employ an individual, and an 4-1 employee of the committee may not continue in employment with the 4-2 committee, if the individual at the time of employment or while 4-3 employed by the committee is: 4-4 (1) a person required to register under Chapter 305, 4-5 Government Code; or 4-6 (2) a member of the legislature. 4-7 SECTION 2.06. POWERS AND DUTIES. (a) The committee may: 4-8 (1) set priority areas for energy coordination or for 4-9 energy research; 4-10 (2) provide national leadership on emerging energy 4-11 policy; 4-12 (3) adopt rules for the administration of this 4-13 article; 4-14 (4) accept gifts and grants for the administration of 4-15 its duties; and 4-16 (5) use a service or facility contributed to the 4-17 committee by any source. 4-18 (b) The committee shall: 4-19 (1) develop coherent long-term energy policy for this 4-20 state; 4-21 (2) make recommendations to the state and to industry 4-22 regarding energy use; and 4-23 (3) encourage cooperation and coordination between 4-24 public and private entities regarding energy use and energy 4-25 research, development, and commercialization. 4-26 ARTICLE 3. TEXAS ENERGY ECONOMICS AND ENVIRONMENTAL 4-27 COORDINATION COUNCIL 5-1 SECTION 3.01. COMPOSITION. (a) The Texas Energy Economics 5-2 and Environmental Coordinating Council is a state agency composed 5-3 of the following ex officio members: 5-4 (1) the associate dean for research in the College of 5-5 Engineering at Texas Tech University; 5-6 (2) the director of the Energy System Laboratory of 5-7 Texas A&M University; 5-8 (3) the director of the Center for Energy Studies at 5-9 The University of Texas at Austin; 5-10 (4) the director of the Energy Laboratory of the 5-11 University of Houston; and 5-12 (5) the director of the Alternative Energy Institute 5-13 of West Texas State University. 5-14 (b) The ex officio members shall appoint the following 5-15 members to serve on the council: 5-16 (1) a representative of the natural gas industry; 5-17 (2) a representative of the electric utility industry; 5-18 (3) a representative of an energy consumer 5-19 organization; and 5-20 (4) a representative of the energy industry. 5-21 (c) If an institution of higher education eliminates the 5-22 entity whose director serves on the council, the institution shall 5-23 name a representative to serve on the council. The representative 5-24 must be an individual at the institution with responsibilities 5-25 related to the mission of the council and must hold a position of a 5-26 level similar to the level of the position of director of the 5-27 eliminated entity. 6-1 SECTION 3.02. TERMS; VACANCY. (a) Appointed members serve 6-2 for staggered terms of two years, with the terms of two members 6-3 expiring December 31 of each year. 6-4 (b) The ex officio members of the council shall appoint an 6-5 individual with similar qualifications to fill the unexpired 6-6 portion of the term of a vacancy of an appointed member of the 6-7 council. 6-8 SECTION 3.03. OFFICERS; MEETINGS. (a) The members of the 6-9 council shall elect annually a presiding officer of the council. 6-10 (b) The council may elect other officers it considers 6-11 necessary. 6-12 (c) The council shall meet at least once each calendar 6-13 quarter and at other times at the call of the presiding officer. 6-14 SECTION 3.04. COMPENSATION; EXPENSES. A member of the 6-15 council may not receive compensation for service performed for the 6-16 council. A member is entitled to receive reimbursement, subject to 6-17 any applicable limitation provided by the General Appropriations 6-18 Act, for actual or necessary expenses incurred in performing 6-19 services as a member of the council. Reimbursement for expenses 6-20 shall be paid from funds appropriated to the member's respective 6-21 institution. 6-22 SECTION 3.05. STAFF. (a) The council may employ staff or 6-23 may use the staff of the coordinating board or a participating 6-24 institution. The coordinating board or a participating institution 6-25 shall provide any staff requested by the council. 6-26 (b) The council may not employ an individual, and an 6-27 employee of the council may not continue in employment with the 7-1 council, if the individual at the time of employment or while 7-2 employed by the council is: 7-3 (1) a person required to register under Chapter 305, 7-4 Government Code; or 7-5 (2) a member of the legislature. 7-6 SECTION 3.06. DUTIES. The council shall: 7-7 (1) establish an institute for building energy 7-8 efficiency throughout this state; 7-9 (2) adopt strategies to assess energy resources; 7-10 (3) promote energy efficiency in transportation; 7-11 (4) make recommendations to reduce energy consumption 7-12 by the state; 7-13 (5) promote energy efficiency in industry; 7-14 (6) assess the interrelation between energy and the 7-15 environment; 7-16 (7) promote the efficient use of renewable resources; 7-17 (8) evaluate the effects of existing energy taxes on 7-18 the state economy; 7-19 (9) recommend new energy taxes to promote energy 7-20 efficiency; 7-21 (10) promote the formation of consortia to study 7-22 energy uses; 7-23 (11) actively seek monetary support for the purposes 7-24 of this Act; 7-25 (12) coordinate the transfer of energy technology to 7-26 the marketplace; 7-27 (13) promote the use of energy research findings; 8-1 (14) encourage and coordinate energy research among 8-2 institutions of higher education, other public entities, industrial 8-3 entities, and nonprofit research entities; 8-4 (15) coordinate energy research among state research 8-5 programs; 8-6 (16) provide criteria and recommendations for the 8-7 awarding of grants for energy research projects approved by state 8-8 research programs; 8-9 (17) promote energy technologies in nonresource areas; 8-10 and 8-11 (18) provide support for the committee. 8-12 SECTION 3.07. POWERS. The council may: 8-13 (1) encourage research collaborations among 8-14 institutions of higher education; 8-15 (2) coordinate information sharing among institutions 8-16 of higher education; 8-17 (3) encourage projects that propose innovative, 8-18 collaborative efforts among two or more institutions of higher 8-19 education or between an institution of higher education and private 8-20 industry; 8-21 (4) conduct public relations activities concerning the 8-22 activities of the council; 8-23 (5) develop computer software to facilitate the 8-24 discharge of the council's duties; 8-25 (6) establish a computer data base of energy research 8-26 information that is accessible to all institutions of higher 8-27 education; 9-1 (7) contract or cooperate with private research 9-2 entities; 9-3 (8) conduct technical seminars on energy research; 9-4 (9) provide information to the public on energy 9-5 research; and 9-6 (10) meet and coordinate with each institution of 9-7 higher education's federal funds coordinator designated under 9-8 Section 751.022(d), Government Code. 9-9 SECTION 3.08. GIFT, GRANT, AND CONTRIBUTED SERVICE OR 9-10 FACILITY. (a) The council may accept a gift or grant from any 9-11 source to be used by the council for the purposes of this Act. 9-12 (b) The council may use a service or facility contributed to 9-13 the council by any source. 9-14 SECTION 3.09. DISTRIBUTION OF GRANTS. (a) The council may 9-15 make grants from funds available to the council to institutions of 9-16 higher education to fund research consistent with the mission of 9-17 the council. To receive a grant from the council, an institution 9-18 of higher education must submit to the council an application for 9-19 the grant, on a form prescribed by the council, and a proposal for 9-20 the project for which the grant is sought. 9-21 (b) The council shall approve applications on an equitable 9-22 basis. 9-23 (c) Not later than September 1 of each fiscal year, the 9-24 comptroller of public accounts shall certify to the council the 9-25 amount of appropriated funds available from which to make grants 9-26 under this section for that fiscal year. 9-27 (d) The council may not approve an application if the amount 10-1 of money required to fund the proposal is greater than an amount 10-2 equal to the total amount of money available to the council to make 10-3 grants under this section for the fiscal year during which the 10-4 award is made. 10-5 (e) For each application approved by the council, the 10-6 council shall certify to the comptroller of public accounts the 10-7 amount of funds approved for the project. To the extent that funds 10-8 are available for this purpose, the comptroller of public accounts 10-9 shall issue a warrant to the institution of higher education in the 10-10 amount certified in the order that the comptroller receives the 10-11 certification. The warrant shall be drawn against the amounts 10-12 appropriated to the council. 10-13 ARTICLE 4. MISCELLANEOUS PROVISIONS 10-14 SECTION 4.01. AMENDMENT. Section 80, Public Utility 10-15 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), is 10-16 amended to read as follows: 10-17 Sec. 80. All fees, penalties, and interest paid under the 10-18 provisions of Sections 78 and 79 of this article shall be collected 10-19 by the comptroller of public accounts and paid into the general 10-20 revenue fund. One-half of the amount collected shall be credited 10-21 to the energy fund. The commission shall notify the comptroller of 10-22 public accounts of any adjustment of the assessment imposed in 10-23 Section 78 when made. 10-24 SECTION 4.02. TRANSITION. (a) Not later than February 1, 10-25 1994, the governor shall make initial appointments of members to 10-26 serve on the Energy Environmental Economic Policy Committee for 10-27 terms expiring February 1, 1995. 11-1 (b) Not later than January 1, 1994, the ex officio members 11-2 of the Texas Energy Economics and Environmental Coordinating 11-3 Council shall make initial appointments of two representatives to 11-4 serve on the council for terms expiring December 31, 1994, and two 11-5 representatives to serve on the council for terms expiring December 11-6 31, 1995. 11-7 SECTION 4.03. EMERGENCY. The importance of this legislation 11-8 and the crowded condition of the calendars in both houses create an 11-9 emergency and an imperative public necessity that the 11-10 constitutional rule requiring bills to be read on three several 11-11 days in each house be suspended, and this rule is hereby suspended, 11-12 and that this Act take effect and be in force from and after its 11-13 passage, and it is so enacted.