1-1 By: Earley (Senate Sponsor - Montford) H.B. No. 923 1-2 (In the Senate - Received from the House April 26, 1993; 1-3 April 27, 1993, read first time and referred to Committee on 1-4 Natural Resources; May 20, 1993, reported favorably, as amended, by 1-5 the following vote: Yeas 8, Nays 0; May 20, 1993, sent to 1-6 printer.) 1-7 COMMITTEE VOTE 1-8 Yea Nay PNV Absent 1-9 Sims x 1-10 Truan x 1-11 Armbrister x 1-12 Barrientos x 1-13 Bivins x 1-14 Brown x 1-15 Carriker x 1-16 Lucio x 1-17 Montford x 1-18 Ratliff x 1-19 Shelley x 1-20 COMMITTEE AMENDMENT NO. 1 By: Montford 1-21 Amend HB 923 on page 2, lines 33-34 by striking all language in 1-22 Subsection (a) and substituting in lieu thereof the following: 1-23 (a) Appointed members serve for four-year terms. The 1-24 initial appointees serve until February 1, 1999, and subsequent 1-25 terms expire on Feburary 1 of every fourth year thereafter. 1-26 COMMITTEE AMENDMENT NO. 2 By: Montford 1-27 Amend HB 923 on page 3, lines 11-12 by striking all language in 1-28 Subdivision (1) and substituting in lieu thereof the following: 1-29 (1) a representative from Texas Tech University to be 1-30 designated by the president of the university; 1-31 COMMITTEE AMENDMENT NO. 3 By: Montford 1-32 Amend H.B. No. 923 in SECTION 3.07, in Subdivision (7) (page 4, 1-33 line 50, engrossed version), between "with" and "private", by 1-34 inserting "the federal government or". 1-35 A BILL TO BE ENTITLED 1-36 AN ACT 1-37 relating to statewide energy policy and research. 1-38 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-39 ARTICLE 1. GENERAL PROVISIONS 1-40 SECTION 1.01. DEFINITIONS. In this Act: 1-41 (1) "Committee" means the Texas Committee on Energy 1-42 Policy. 1-43 (2) "Coordinating board" means the Texas Higher 1-44 Education Coordinating Board. 1-45 (3) "Council" means the Texas Energy Coordination 1-46 Council. 1-47 (4) "Postsecondary educational institution" means an 1-48 institution of higher education as defined by Section 61.003, 1-49 Education Code, or a private or independent college or university 1-50 that is accredited by a recognized accrediting agency, as defined 1-51 by that section. 1-52 SECTION 1.02. PURPOSE. The purposes of this Act are to 1-53 develop a statewide energy policy and to coordinate the development 1-54 and marketing of all aspects of energy research at postsecondary 1-55 educational institutions and at nonprofit research organizations or 1-56 associations, from the development of basic theoretical and 1-57 experimental frameworks to the transfer of new energy technology to 1-58 the marketplace. 1-59 SECTION 1.03. ENERGY ACCOUNT. (a) The energy account is 1-60 created as a special account in the general revenue fund in the 1-61 state treasury. 1-62 (b) The account consists of gifts, grants, and funds 1-63 appropriated by the legislature. 1-64 (c) Money in the account may be appropriated only to the 1-65 council for the purposes of this Act. 1-66 SECTION 1.04. FUNDING. In addition to money appropriated 1-67 from the energy account, the council is entitled to an 1-68 appropriation each biennium in an amount equal to: 2-1 (1) three times the estimated amount of money raised 2-2 from private sources during the previous biennium, if the estimated 2-3 amount is $500,000 or more but less than $1,000,000; 2-4 (2) five times the estimated amount of money raised 2-5 from private sources during the previous biennium, if the estimated 2-6 amount is $1,000,000 or more but less than $1,500,000; and 2-7 (3) seven times the estimated amount of money raised 2-8 from private sources during the previous biennium, if the estimated 2-9 amount is $1,500,000 or more, with a maximum entitlement under 2-10 this section of $21 million. 2-11 ARTICLE 2. TEXAS COMMITTEE ON ENERGY POLICY 2-12 SECTION 2.01. TEXAS COMMITTEE ON ENERGY POLICY. The Texas 2-13 Committee on Energy Policy is composed of the following ex officio 2-14 members: 2-15 (1) the governor; 2-16 (2) the lieutenant governor; 2-17 (3) the speaker of the house of representatives; 2-18 (4) the chairman of the house of representatives 2-19 committee on energy; 2-20 (5) the chairman of the senate committee on natural 2-21 resources; 2-22 (6) a member of the Railroad Commission of Texas, 2-23 appointed by the Railroad Commission of Texas; 2-24 (7) a member of the Public Utility Commission of 2-25 Texas, appointed by the Public Utility Commission of Texas; and 2-26 (8) the commissioner of the General Land Office. 2-27 SECTION 2.02. TERMS; VACANCY. (a) Appointed members serve 2-28 for two-year terms expiring February 1 of each odd-numbered year. 2-29 (b) The original appointing authority shall appoint a person 2-30 with similar qualifications to fill the unexpired portion of the 2-31 term of a vacancy of an appointed member of the committee. 2-32 SECTION 2.03. OFFICERS; MEETINGS. (a) The members of the 2-33 committee shall elect annually a presiding officer of the 2-34 committee. 2-35 (b) The committee may elect other officers it considers 2-36 necessary. 2-37 (c) The committee shall meet at least once each calendar 2-38 quarter and at other times at the call of the presiding officer. 2-39 SECTION 2.04. COMPENSATION; EXPENSES. A member of the 2-40 committee may not receive compensation for service performed for 2-41 the committee. A member is entitled to receive reimbursement from 2-42 the energy account, subject to any applicable limitation provided 2-43 by the General Appropriations Act, for actual or necessary expenses 2-44 incurred in performing services as a member of the committee. 2-45 SECTION 2.05. STAFF. (a) The committee may employ staff or 2-46 may use the staff of the governor. 2-47 (b) The committee may not employ an individual, and an 2-48 employee of the committee may not continue in employment with the 2-49 committee, if the individual at the time of employment or while 2-50 employed by the committee is: 2-51 (1) a person required to register under Chapter 305, 2-52 Government Code; or 2-53 (2) a member of the legislature. 2-54 SECTION 2.06. POWERS AND DUTIES. (a) The committee may: 2-55 (1) set priority areas for energy coordination or for 2-56 energy research; 2-57 (2) provide national leadership on emerging energy 2-58 policy; 2-59 (3) adopt rules for the administration of this 2-60 article; 2-61 (4) accept gifts and grants for the administration of 2-62 its duties; and 2-63 (5) use a service or facility contributed to the 2-64 committee by any source. 2-65 (b) The committee shall: 2-66 (1) develop coherent long-term energy policy for this 2-67 state; 2-68 (2) make recommendations to the state and to industry 2-69 regarding energy use; and 2-70 (3) encourage cooperation and coordination between 3-1 public and private entities regarding energy use and energy 3-2 research, development, and commercialization. 3-3 ARTICLE 3. TEXAS ENERGY COORDINATION COUNCIL 3-4 SECTION 3.01. COMPOSITION. (a) The Texas Energy 3-5 Coordination Council is composed of the following ex officio 3-6 members: 3-7 (1) the associate dean for research in the College of 3-8 Engineering at Texas Tech University; 3-9 (2) the director of the Energy System Laboratory of 3-10 Texas A&M University; 3-11 (3) the director of the Center for Energy Studies at 3-12 The University of Texas at Austin; 3-13 (4) the director of the Energy Laboratory of the 3-14 University of Houston; and 3-15 (5) the director of the Alternative Energy Institute 3-16 of West Texas State University. 3-17 (b) The governor shall appoint the following members to 3-18 serve on the council: 3-19 (1) a representative of the natural gas industry; 3-20 (2) a representative of the oil industry; 3-21 (3) a representative of the alternative fuels 3-22 industry; 3-23 (4) a representative of the Texas Sustainable Energy 3-24 Development Council or renewable energy industry; 3-25 (5) a representative of the electric utility industry; 3-26 and 3-27 (6) a representative of an energy consumer 3-28 organization or environmental organization. 3-29 (c) If a postsecondary educational institution eliminates 3-30 the entity whose director serves on the council, the institution 3-31 shall name a representative to serve on the council. The 3-32 representative must be an individual at the institution with 3-33 responsibilities related to the mission of the council and must 3-34 hold a position of a level similar to the level of the position of 3-35 director of the eliminated entity. 3-36 SECTION 3.02. TERMS; VACANCY. (a) Appointed members serve 3-37 for staggered terms of two years, with the terms of three members 3-38 expiring December 31 of each year. 3-39 (b) The governor shall appoint an individual with similar 3-40 qualifications to fill the unexpired portion of the term of a 3-41 vacancy of an appointed member of the council. 3-42 SECTION 3.03. OFFICERS; MEETINGS. (a) The members of the 3-43 council shall elect annually a presiding officer of the council. 3-44 (b) The council may elect other officers it considers 3-45 necessary. 3-46 (c) The council shall meet at least once each calendar 3-47 quarter and at other times at the call of the presiding officer. 3-48 SECTION 3.04. COMPENSATION; EXPENSES. A member of the 3-49 council may not receive compensation for service performed for the 3-50 council. A member is entitled to receive reimbursement, subject to 3-51 any applicable limitation provided by the General Appropriations 3-52 Act, for actual or necessary expenses incurred in performing 3-53 services as a member of the council. 3-54 SECTION 3.05. STAFF. (a) The council may employ staff or 3-55 may use, with the entity's consent, the staff of the coordinating 3-56 board, a participating postsecondary educational institution, or a 3-57 nonprofit research organization or association. 3-58 (b) The council may not employ an individual, and an 3-59 employee of the council may not continue in employment with the 3-60 council, if the individual at the time of employment or while 3-61 employed by the council is: 3-62 (1) a person required to register under Chapter 305, 3-63 Government Code; or 3-64 (2) a member of the legislature. 3-65 SECTION 3.06. DUTIES. The council shall: 3-66 (1) establish an institute for building energy 3-67 efficiency throughout this state; 3-68 (2) adopt strategies to assess energy resources; 3-69 (3) promote energy efficiency in transportation; 3-70 (4) make recommendations to reduce energy consumption 4-1 by the state; 4-2 (5) promote energy efficiency in industry; 4-3 (6) assess the interrelation between energy and the 4-4 environment; 4-5 (7) promote the efficient use of renewable resources; 4-6 (8) evaluate the effects of existing energy taxes on 4-7 the state economy; 4-8 (9) recommend new energy taxes to promote energy 4-9 efficiency; 4-10 (10) promote the formation of consortia to study 4-11 energy uses; 4-12 (11) actively seek monetary support for the purposes 4-13 of this Act; 4-14 (12) coordinate the transfer of energy technology to 4-15 the marketplace; 4-16 (13) promote the use of energy research findings; 4-17 (14) encourage and coordinate energy research among 4-18 postsecondary educational institutions, other public and private 4-19 entities, industrial entities, and nonprofit research entities; 4-20 (15) coordinate energy research among state research 4-21 programs; 4-22 (16) provide criteria and recommendations for the 4-23 awarding of grants for energy research projects approved by state 4-24 research programs; 4-25 (17) promote energy technologies in nonresource areas; 4-26 and 4-27 (18) provide support for the committee. 4-28 SECTION 3.07. POWERS. The council may: 4-29 (1) encourage research collaborations among 4-30 postsecondary educational institutions and nonprofit research 4-31 organizations or associations; 4-32 (2) coordinate information sharing among postsecondary 4-33 educational institutions and nonprofit research organizations or 4-34 associations; 4-35 (3) encourage projects that propose innovative, 4-36 collaborative efforts among two or more postsecondary educational 4-37 institutions or nonprofit research organizations or associations or 4-38 between a postsecondary educational institution or nonprofit 4-39 research organization or association and private industry; 4-40 (4) conduct public relations activities concerning the 4-41 activities of the council; 4-42 (5) develop computer software to facilitate the 4-43 discharge of the council's duties; 4-44 (6) establish a computer data base of energy research 4-45 information that is accessible to all postsecondary educational 4-46 institutions and all nonprofit research organizations or 4-47 associations; 4-48 (7) contract or cooperate with private research 4-49 entities; 4-50 (8) conduct technical seminars on energy research; 4-51 (9) provide information to the public on energy 4-52 research; and 4-53 (10) meet and coordinate with each institution of 4-54 higher education's federal funds coordinator designated under 4-55 Section 751.022(d), Government Code. 4-56 SECTION 3.08. GIFT, GRANT, AND CONTRIBUTED SERVICE OR 4-57 FACILITY. (a) The council may accept a gift or grant from any 4-58 source to be used by the council for the purposes of this Act. 4-59 (b) The council may use a service or facility contributed to 4-60 the council by any source. 4-61 SECTION 3.09. DISTRIBUTION OF GRANTS. (a) The council may 4-62 make grants from funds available to the council to postsecondary 4-63 educational institutions or nonprofit research organizations or 4-64 associations to fund research consistent with the mission of the 4-65 council. To receive a grant from the council, a postsecondary 4-66 educational institution or a nonprofit research organization or 4-67 association must submit to the council an application for the 4-68 grant, on a form prescribed by the council, and a proposal for the 4-69 project for which the grant is sought. 4-70 (b) The council shall approve applications on an equitable 5-1 basis. 5-2 (c) Not later than September 1 of each fiscal year, the 5-3 comptroller shall certify to the council the amount of appropriated 5-4 funds available from which to make grants under this section for 5-5 that fiscal year. 5-6 (d) The council may not approve an application if the amount 5-7 of money required to fund the proposal is greater than an amount 5-8 equal to the total amount of money available to the council to make 5-9 grants under this section for the fiscal year during which the 5-10 award is made. 5-11 (e) For each application approved by the council, the 5-12 council shall certify to the comptroller the amount of funds 5-13 approved for the project. To the extent that funds are available 5-14 for this purpose, the comptroller shall issue a warrant to the 5-15 postsecondary educational institution or nonprofit research 5-16 organization or association in the amount certified in the order 5-17 that the comptroller receives the certification. The warrant shall 5-18 be drawn against the amounts appropriated to the council. 5-19 ARTICLE 4. MISCELLANEOUS PROVISIONS 5-20 SECTION 4.01. TRANSITION. (a) Not later than February 1, 5-21 1994, the Railroad Commission of Texas and the Public Utility 5-22 Commission of Texas shall make initial appointments of members to 5-23 serve on the Texas Committee on Energy Policy for terms expiring 5-24 February 1, 1995. 5-25 (b) Not later than January 1, 1994, the governor shall make 5-26 initial appointments of three representatives to serve on the Texas 5-27 Energy Coordination Council for terms expiring December 31, 1994, 5-28 and three representatives to serve on the council for terms 5-29 expiring December 31, 1995. 5-30 SECTION 4.02. EMERGENCY. The importance of this legislation 5-31 and the crowded condition of the calendars in both houses create an 5-32 emergency and an imperative public necessity that the 5-33 constitutional rule requiring bills to be read on three several 5-34 days in each house be suspended, and this rule is hereby suspended, 5-35 and that this Act take effect and be in force from and after its 5-36 passage, and it is so enacted. 5-37 * * * * * 5-38 Austin, 5-39 Texas 5-40 May 20, 1993 5-41 Hon. Bob Bullock 5-42 President of the Senate 5-43 Sir: 5-44 We, your Committee on Natural Resources to which was referred H.B. 5-45 No. 923, have had the same under consideration, and I am instructed 5-46 to report it back to the Senate with the recommendation that it do 5-47 pass, as amended, and be printed. 5-48 Sims, 5-49 Chairman 5-50 * * * * * 5-51 WITNESSES 5-52 FOR AGAINST ON 5-53 ___________________________________________________________________ 5-54 Name: Amy Gilliland x 5-55 Representing: Tx Independent Producers 5-56 City: Austin 5-57 ------------------------------------------------------------------- 5-58 Name: Steven Nichols x 5-59 Representing: Center For Energy Studies 5-60 City: Austin 5-61 -------------------------------------------------------------------