By: Ellis, Moncrief S.B. No. 959
A BILL TO BE ENTITLED
1-1 relating to state energy efficiency and conservation programs;
1-2 granting the authority to issue revenue bonds.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subdivisions (4) and (6), Section 2, Oil
1-5 Overcharge Restitutionary Act (Article 4413(56), Vernon's Texas
1-6 Civil Statutes), are amended to read as follows:
1-7 (4) "Direct grant program" means a program through
1-8 which the Legislative Budget Board <
office of the governor>
1-9 finances projects under this Act that have been approved as
1-10 components of a proposal recommended by the supervising agency of
1-11 that program.
1-12 (6) "Supervising agency" means the state agency,
1-13 department, commission, or other entity designated by this Act or
1-14 by the Legislative Budget Board < office of the governor> to
1-15 supervise, manage, or administer the implementation of a program
1-16 financed under this Act.
1-17 SECTION 2. Sections 3 and 4, Oil Overcharge Restitutionary
1-18 Act (Article 4413(56), Vernon's Texas Civil Statutes), are amended
1-19 to read as follows:
1-20 Sec. 3. Oil overcharge administration. (a) The power and
1-21 discretion to finance projects under, and oversee and monitor the
1-22 administration of, the competitive and direct grant programs
1-23 prescribed by this Act are assigned to the Legislative Budget Board
1-24 < office of the governor, subject to the requirements of Section 5
2-1 of this Act>.
2-2 (b) The Legislative Budget Board < office of the governor>
2-3 shall determine the supervising agency for each < competitive grant
2-4 program and for each> direct grant program established by the board
2-5 < office>. The board < office of the governor> may:
2-6 (1) establish direct grant programs < and competitive
2-7 grant programs> in addition to those provided by this Act; and
2-8 (2) establish criteria for eligibility and evaluation
2-9 of proposals submitted under direct grant programs < or competitive
2-10 grant programs>, which criteria may apply to one or more specific
2-11 programs or to all programs.
2-12 (c) The Legislative Budget Board < office of the governor>
2-13 shall establish programs and criteria and evaluate proposals in
2-14 accordance with applicable federal guidelines. The board < office
2-15 of the governor> is responsible for the transmission to the
2-16 appropriate federal entity of all information required under
2-17 applicable federal guidelines regarding programs and proposals
2-18 subject to this Act.
2-19 Sec. 4. Staff; agency and private assistance. (a) The
2-20 section of the Legislative Budget Board office that provides
2-21 federal funds analysis < energy office> shall provide staff to
2-22 implement and administer this Act.
2-23 (b) In addition to the section of the Legislative Budget
2-24 Board office that provides federal funds analysis < energy office>,
2-25 the Legislative Budget Board < office of the governor> may enlist
2-26 the assistance of any state agency, department, commission, or
2-27 other entity or any private entity in the evaluation or review of
3-1 proposals, the audit of program participants or supervising
3-2 agencies, the performance of administrative duties under this Act,
3-3 or the development of eligibility or evaluation criteria.
3-4 SECTION 3. Subsections (b) and (e), Section 6, Oil
3-5 Overcharge Restitutionary Act (Article 4413(56), Vernon's Texas
3-6 Civil Statutes), are amended to read as follows:
3-7 (b) Money in the account shall be appropriated by the
3-8 legislature to the Legislative Budget Board < governor> for use by
3-9 the board < office of the governor> in the implementation and
3-10 operation of programs authorized by this Act. The board may
3-11 reallocate amounts appropriated for direct grant programs among any
3-12 programs approved by the United States Department of Energy. Money
3-13 in the account also may be appropriated to provide initial
3-14 financing for the Texas energy efficiency and conservation program
3-15 established under Article 16, State Purchasing and General Services
3-16 Act (Article 601b, Vernon's Texas Civil Statutes).
3-17 (e) The Legislative Budget Board < office of the governor>
3-18 shall determine the persons whose signatures are authorized to be
3-19 affixed to vouchers submitted to the comptroller for approval of
3-20 payments from the account. The Legislative Budget Board < office of
3-21 the governor> shall give the comptroller notice of each
3-22 determination made under this subsection. The comptroller shall
3-23 approve payments from the account in the manner provided for
3-24 approval of payments from other amounts appropriated by the
3-26 SECTION 4. Subsection (b), Section 7, Oil Overcharge
3-27 Restitutionary Act (Article 4413(56), Vernon's Texas Civil
4-1 Statutes), is amended to read as follows:
4-2 (b) The supervising agency of a direct grant program
4-3 financed under this Act may adopt rules for implementation of the
4-4 program, including rules providing eligibility criteria, that are
4-5 not inconsistent with criteria established by applicable federal
4-6 guidelines, criteria prescribed by this Act, or criteria adopted by
4-7 the Legislative Budget Board < office of the governor>.
4-8 SECTION 5. Sections 23, 24, and 25, Oil Overcharge
4-9 Restitutionary Act (Article 4413(56), Vernon's Texas Civil
4-10 Statutes), are amended to read as follows:
4-11 Sec. 23. Energy research and development program. The
4-12 Legislative Budget Board < office of the governor> may finance
4-13 projects under a direct < competitive> grant program to be known as
4-14 the energy research and development program that supplement or
4-15 initiate research by public or private institutions on
4-16 energy-related issues. The board < office of the governor> may
4-17 require recipients to match grants awarded under this program in
4-18 ratios determined by the board < office>.
4-19 Sec. 24. Local government energy program. < (a)> A direct
4-20 < competitive> grant program to be known as the local government
4-21 energy program is established. Under the program, the supervising
4-22 agency shall distribute < competitive> grant money provided under
4-23 this Act for energy-saving projects that benefit local governments
4-24 in this state.
4-25 < (b) Proposals under this section may include energy audits
4-26 of local government facilities, traffic light synchronization,
4-27 fleet management, and fuel-efficient transit routing. The office
5-1 of the governor may require grant recipients under this program to
5-2 match the grants in ratios determined by the office.>
5-3 Sec. 25. Transportation energy program. (a) A direct
5-4 < competitive> grant program to be known as the transportation
5-5 energy program is established. Under this program, the supervising
5-6 agency shall distribute < competitive> grant money provided under
5-7 this Act for projects concerning mass transit and other
5-8 transportation services. The projects may assist service providers
5-9 in providing services such as traffic light synchronization, fleet
5-10 management, energy-efficient computerized transit routing, car-care
5-11 clinics, vanpooling or ridesharing efforts, transportation of
5-12 public schoolchildren, transportation of inmates of local
5-13 correctional facilities < public education related to mass transit>,
5-14 driver energy conservation awareness training, and transportation
5-15 services for the elderly or handicapped and may include studies to
5-16 improve existing and plan for future transportation systems in
5-18 (b) The Legislative Budget Board < office of the governor>
5-19 may require grant recipients under this program to match the grants
5-20 in ratios determined by the board < office>.
5-21 SECTION 6. The State Purchasing and General Services Act
5-22 (Article 601b, Vernon's Texas Civil Statutes) is amended by adding
5-23 Article 16 to read as follows:
5-24 ARTICLE 16. TEXAS ENERGY EFFICIENCY AND CONSERVATION PROGRAM
5-25 Sec. 16.01. POLICY. It is the policy of this state to
5-26 promote energy efficiency and conservation within the state.
5-27 Implementation of the program provided by this article will be in
6-1 furtherance of that policy by making financial assistance available
6-2 to authorized borrowers to enable the borrowers to undertake energy
6-3 efficiency and conservation projects.
6-4 Sec. 16.02. DEFINITIONS. In this article:
6-5 (1) "Authority" means the Texas Public Finance
6-7 (2) "Program" means the Texas energy efficiency and
6-8 conservation program provided by this article.
6-9 (3) "Revolving fund" means the Texas energy efficiency
6-10 and conservation revolving fund.
6-11 Sec. 16.03. TEXAS ENERGY EFFICIENCY AND CONSERVATION
6-12 REVOLVING FUND. (a) The Texas energy efficiency and conservation
6-13 revolving fund is established in the state treasury.
6-14 (b) The revolving fund consists of the proceeds of revenue
6-15 bonds issued as provided by this article, fees collected as
6-16 provided by Section 16.06 of this article, federal grants, direct
6-17 appropriations, income from investment or deposit of amounts in the
6-18 fund, grants from private sources, and repayments of financial
6-19 assistance made from the fund.
6-20 (c) The commission may provide for the establishment and
6-21 maintenance of separate accounts within the revolving fund,
6-22 including program accounts, and, at the direction of the authority,
6-23 shall provide for interest and sinking accounts and reserve
6-24 accounts relating to revenue bonds. The state treasurer shall hold
6-25 the assets of the revolving fund in trust for the program and the
6-26 repayment of bonds issued for the program. The revolving fund is a
6-27 trust fund for all purposes, including the application of Sections
7-1 403.094, 403.095, and 404.071, Government Code.
7-2 (d) Money in the revolving fund may be appropriated only for
7-3 the repayment of bonds issued for the program, the payment of costs
7-4 of issuance of the bonds, and making loans under and paying
7-5 expenses for the administration of the program.
7-6 Sec. 16.04. AUTHORIZED BORROWERS AND ELIGIBLE PROJECTS.
7-7 (a) An agency or governmental entity of the state and any
7-8 political subdivision or other type of local governmental entity in
7-9 the state, including a county, municipality, special purpose
7-10 district, or corporation held by a governmental entity, is
7-11 authorized to be a borrower under the program provided by this
7-13 (b) Any energy efficiency or conservation project undertaken
7-14 by an authorized borrower involving the acquisition, construction,
7-15 fabrication, installation, or maintenance of improvements,
7-16 buildings, facilities, or equipment determined by the authorized
7-17 borrower to promote the conservation or efficient use of energy
7-18 sources is an eligible project for assistance under the program
7-19 provided by this article, including a project involving the
7-20 conversion of motor vehicles or other sources of substantial energy
7-21 use to alternative fuels and engine-driven applications and a
7-22 project involving the acquisition, construction, fabrication,
7-23 installation, or maintenance of fueling stations supplying
7-24 alternative fuels or equipment enhancing the use of engine-driven
7-25 technology to support motor vehicles or other energy applications
7-26 that use alternative fuels.
7-27 Sec. 16.05. TEXAS ENERGY EFFICIENCY AND CONSERVATION
8-1 PROGRAM. (a) The commission shall establish and administer the
8-2 Texas energy efficiency and conservation program. The commission
8-3 shall adopt rules governing the application for financial
8-4 assistance under the program and establish criteria for determining
8-5 which authorized borrowers may participate in the program. In
8-6 establishing criteria for participation in the program, the
8-7 commission shall adopt requirements to ensure the full repayment of
8-8 all financial assistance and the solvency of the program.
8-9 (b) The commission may adopt other rules it considers
8-10 necessary to administer the program or considers in the best
8-11 interests of the program.
8-12 Sec. 16.06. FEES. The commission shall set and collect,
8-13 from applicants and borrowers under the program, fees the
8-14 commission considers sufficient to cover the expenses of
8-15 administering the program or considers in the best interest of the
8-16 program. The commission shall deposit the fees in the revolving
8-17 fund and shall apply the fees in accordance with the commission's
8-18 resolutions and rules.
8-19 Sec. 16.07. ISSUANCE OF REVENUE BONDS. (a) The commission
8-20 by resolution may periodically apply for the issuance of revenue
8-21 bonds for the purpose of providing money for the revolving fund.
8-22 The total amount of bonds issued for the revolving fund and the
8-23 program may not exceed $100 million. The commission shall submit
8-24 each such resolution it adopts to the authority, and the authority
8-25 is responsible for issuing the bonds for the commission.
8-26 (b) Proceeds of revenue bonds issued as provided by this
8-27 article shall be deposited in the revolving fund and applied in
9-1 accordance with the resolution applying for issuance of the bonds:
9-2 (1) to provide financial assistance to authorized
9-3 borrowers; and
9-4 (2) to pay costs of issuance of those revenue bonds.
9-5 (c) Revenue bonds issued as provided by this article are
9-6 obligations solely of the commission and are payable solely from
9-7 funds of the commission that are pledged to the repayment of the
9-8 revenue bonds. The commission's revenue bonds under this article
9-9 are not and do not create or constitute a pledge, giving, or
9-10 lending of the faith, credit, or taxing power of the state. Each
9-11 revenue bond of the commission issued under this article must
9-12 contain a statement to the effect that the state is not obligated
9-13 to pay the principal of or any premium or interest on the revenue
9-14 bond and that neither the faith or credit nor the taxing power of
9-15 the state is pledged, given, or loaned to such a payment.
9-16 (d) Revenue bonds of the commission shall be payable as to
9-17 principal, interest, and redemption premium, if any, from and
9-18 secured by a first lien or a subordinate lien on and pledge of all
9-19 or any part of the property, revenues, income, or other resources
9-20 of the commission, as specified in the commission's resolution
9-21 applying for issuance of those revenue bonds.
9-22 (e) The commission may provide in a resolution applying for
9-23 the issuance of revenue bonds a request for the issuance of
9-24 additional revenue bonds to be equally and ratably secured by lien
9-25 on the revenues and receipts or for the issuance of subordinate
9-26 lien revenue bonds.
9-27 (f) Revenues of the commission that may be used as a source
10-1 of payment for the revenue bonds or to establish a reserve account
10-2 to secure the payment of debt service on the revenue bonds include
10-3 repayments of financial assistance, money appropriated by the
10-4 legislature to the commission for the purpose of paying or securing
10-5 the payment of debt service on the commission's revenue bonds, fees
10-6 collected under Section 16.05 of this article, and federal or
10-7 private money allocated to the program.
10-8 Sec. 16.08. GENERAL PROVISIONS RELATING TO BONDS. (a) The
10-9 commission's revenue bonds under this article may be issued by the
10-10 authority from time to time in one or more series or issues, in
10-11 bearer, registered, or any other form, which may include registered
10-12 uncertified obligations not represented by written instruments and
10-13 commonly known as book-entry obligations, the registration of
10-14 ownership and transfer of which shall be provided for by the
10-15 authority under a system of books and records maintained by the
10-16 authority. Bonds may mature serially or otherwise not more than 40
10-17 years from their date of issuance. Bonds may bear no interest or
10-18 may bear interest at any rate or rates, fixed, variable, floating,
10-19 or otherwise, determined by the authority or determined pursuant to
10-20 any contractual arrangements approved by the authority, not to
10-21 exceed the maximum net effective interest rate allowed by Chapter
10-22 3, Acts of the 61st Legislature, Regular Session, 1969 (Article
10-23 717k-2, Vernon's Texas Civil Statutes). Interest on the bonds may
10-24 be payable at any time, and the rate of interest on the bonds may
10-25 be adjusted at such time as may be determined by the authority or
10-26 as may be determined pursuant to any contractual arrangement
10-27 approved by the authority. In connection with the issuance of
11-1 bonds for the commission as provided by this article, the authority
11-2 may exercise the powers granted to the governing body of an issuer
11-3 in connection with the issuance of obligations under Chapter 656,
11-4 Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
11-5 Vernon's Texas Civil Statutes).
11-6 (b) The bonds issued under this article and interest
11-7 coupons, if any, are investment securities under the terms of
11-8 Chapter 8, Business & Commerce Code. The bonds are exempt
11-9 securities under The Securities Act (Article 581-1 et seq.,
11-10 Vernon's Texas Civil Statutes), and unless specifically provided
11-11 otherwise, under any subsequently enacted securities law. Any
11-12 contract, guaranty, or other document executed in connection with
11-13 the issuance of bonds pursuant to this article is not a security
11-14 under The Securities Act (Article 581-1 et seq., Vernon's Texas
11-15 Civil Statutes), and unless specifically provided otherwise, any
11-16 subsequently enacted securities law. The authority may do all
11-17 things necessary to qualify the bonds for offer and sale under the
11-18 securities laws and regulations of the United States and of the
11-19 states and other jurisdictions in the United States as the
11-20 authority determines.
11-21 (c) The bonds may be issued in the form and denominations
11-22 and executed in the manner and under the terms, conditions, and
11-23 details determined as provided by the authority in the resolution
11-24 authorizing their issuance. If any officer whose manual or
11-25 facsimile signature appears on the bonds ceases to be an officer,
11-26 the signature is still valid and sufficient for all purposes as if
11-27 the officer had remained in office.
12-1 (d) The bonds may be sold at public or private sale with or
12-2 without public bidding in the manner, at such rate or rates, price
12-3 or prices, and on such terms as may be determined by the authority
12-4 or determined as provided in any contractual arrangement approved
12-5 by the authority. The authority also may enter into any
12-6 contractual arrangement under which the bonds are to be sold from
12-7 time to time, or subject to purchase, at such prices and rates,
12-8 interest rate or payment periods, and terms as determined pursuant
12-9 to that contractual arrangement approved by the authority.
12-10 (e) The authority may provide procedures for the replacement
12-11 of a mutilated, lost, stolen, or destroyed bond or interest coupon.
12-12 (f) The resolutions of the authority issuing bonds may
12-13 contain other provisions and covenants as the authority may
12-14 determine. The authority may adopt and have executed any other
12-15 proceedings or instruments necessary and convenient in the issuance
12-16 of bonds as provided by this article.
12-17 Sec. 16.09. APPLICATION OF TEXAS PUBLIC FINANCE AUTHORITY
12-18 ACT. Section 10A, as added by Chapter 896, Acts of the 71st
12-19 Legislature, Regular Session, 1989, and Sections 10B, 15, 16, 17,
12-20 18, 19, and 20, Texas Public Finance Authority Act (Article 601d,
12-21 Vernon's Texas Civil Statutes), apply to revenue bonds issued by
12-22 the authority for the commission under this article as if the bonds
12-23 were issued under that Act for the construction of a building.
12-24 SECTION 7. The heading of Chapter 447, Government Code, is
12-25 amended to read as follows:
12-26 CHAPTER 447. ENERGY MANAGEMENT CENTER
12-27 < OF THE OFFICE OF THE GOVERNOR>
13-1 SECTION 8. Section 447.001, Government Code, is amended to
13-2 read as follows:
13-3 Sec. 447.001. Establishment of Center. The energy
13-4 management center is established in the General Services Commission
13-5 < as a division of the office of the governor>.
13-6 SECTION 9. Subsections (a), (c), and (d), Section 447.004,
13-7 Government Code, are amended to read as follows:
13-8 (a) The < Through the> energy management center< , the office
13-9 of the governor> shall adopt and publish energy conservation design
13-10 standards, under the Administrative Procedure and Texas Register
13-11 Act (Article 6252-13a, Vernon's Texas Civil Statutes), that all new
13-12 state buildings and major renovation projects, including buildings
13-13 and major renovation projects of state-supported institutions of
13-14 higher education, are required to meet. The center < office of the
13-15 governor> shall define what constitutes a major renovation project
13-16 under this section and shall review and update the standards
13-18 (c) The standards must be adopted in terms of energy
13-19 consumption levels and must take into consideration the various
13-20 classes of building uses and must allow for design flexibility.
13-21 Procedural standards must be directed toward specific design and
13-22 building practices that produce good thermal resistance and low
13-23 infiltration and toward requiring practices in the design of
13-24 mechanical and electrical systems that maximize energy efficiency.
13-25 The procedural standards must concern, as applicable:
13-26 (1) insulation;
13-27 (2) lighting;
14-1 (3) ventilation;
14-2 (4) climate control;
14-3 (5) special energy requirements of health-related
14-4 facilities of higher education and state agencies; and
14-5 (6) any other item that the center < office of the
14-6 governor> considers appropriate that is adopted under the
14-7 Administrative Procedure and Texas Register Act (Article 6252-13a,
14-8 Vernon's Texas Civil Statutes).
14-9 (d) In order to demonstrate compliance with the requirement
14-10 to adopt and update the conservation design standards, each agency
14-11 and institution of higher education shall submit a copy of its
14-12 design and construction manuals to the center < office of the
14-13 governor> on request.
14-14 SECTION 10. Sections 447.005, 447.006, and 447.007,
14-15 Government Code, are amended to read as follows:
14-16 Sec. 447.005. Energy Efficiency Projects. Subject to
14-17 applicable state and federal laws or guidelines, the < office of the
14-18 governor, through the> energy management center< ,> may implement
14-19 energy efficiency projects at state agencies or may assist those
14-20 agencies in implementing the projects through energy efficiency
14-21 programs financed through state or federal grants or loans and
14-22 shall provide staff for administration of the Texas energy
14-23 efficiency and conservation program established under Article 16,
14-24 State Purchasing and General Services Act (Article 601b, Vernon's
14-25 Texas Civil Statutes).
14-26 Sec. 447.006. Obtaining Data. The energy management center
14-27 < office of the governor> shall obtain semiannually from each state
15-1 agency information relating to the cost of heating and cooling
15-2 buildings owned by the state.
15-3 Sec. 447.007. Model Codes. The energy management center
15-4 < office of the governor> may recommend model energy conservation
15-5 building codes to municipalities for use in enacting or amending
15-6 municipal ordinances.
15-7 SECTION 11. Subsection (a), Section 447.008, Government
15-8 Code, is amended to read as follows:
15-9 (a) The < Through the> energy management center< , the office
15-10 of the governor> may provide additional energy services, including:
15-11 (1) training of designated state employees in energy
15-12 management, energy-accounting techniques, and energy efficient
15-13 design and construction;
15-14 (2) technical assistance regarding energy efficient
15-15 capital improvements, energy efficient building design, and
15-16 cogeneration and thermal storage investments;
15-17 (3) technical assistance to the State Auditor and to
15-18 state agencies regarding conducting energy management performance
15-19 audits and monitoring of utility bills to detect billing errors;
15-20 (4) technical assistance to state agencies regarding
15-21 third-party financing of energy efficient capital improvement
15-22 projects; and
15-23 (5) other energy-related assistance requested by
15-24 agencies, other legislatively created entities of the state,
15-25 institutions of higher education, and consortiums of institutions
15-26 of higher education that the center < office of the governor>
15-27 considers appropriate.
16-1 SECTION 12. Subsection (a), Section 447.011, Government
16-2 Code, is amended to read as follows:
16-3 (a) The < Through the> energy management center< , the office
16-4 of the governor> shall provide energy management planning
16-5 assistance to state agencies and institutions of higher education,
16-7 (1) preparation of a long-range plan for the delivery
16-8 of reliable, cost-effective utility services for state agencies,
16-9 institutions of higher education, boards, and commissions in Travis
16-10 County. This plan shall be presented to the affected agencies for
16-11 use in preparing their five-year construction and major
16-12 rehabilitation plans. After other energy-saving alternatives are
16-13 considered, district heating and cooling and on-site generation of
16-14 electricity may be considered in planning for reliable, efficient,
16-15 and cost-effective utility services;
16-16 (2) assistance to the Department of Public Safety for
16-17 energy emergency contingency planning, using state or federal funds
16-18 when available; and
16-19 (3) assistance to state agencies and institutions of
16-20 higher education in preparing comprehensive energy management
16-21 plans. The energy management center shall prepare guidelines for
16-22 the preparation of these plans. State agencies and institutions of
16-23 higher education that expend more than $250,000 annually for
16-24 heating, lighting, and cooling and that occupy state-owned
16-25 buildings shall prepare and submit a five-year energy management
16-26 plan to the center < office of the governor>. Agencies and
16-27 institutions of higher education with smaller usage may be required
17-1 to submit such plans. Updated plans shall be submitted biennially
17-2 when requested by the center < governor>.
17-3 SECTION 13. On the effective date of this Act, all powers,
17-4 duties, obligations, records, and property of the office of the
17-5 governor that are connected to a function that is transferred from
17-6 the office of the governor to another entity by this Act and all
17-7 appropriations to the office of the governor for functions
17-8 transferred by this Act are transferred to the appropriate entity.
17-9 All employees of the energy management center of the office of the
17-10 governor are transferred to the General Services Commission. All
17-11 rules, standards, and specifications of the office of the governor
17-12 that relate to a function that is transferred by this Act remain in
17-13 effect as rules, standards, and specifications of the entity to
17-14 which the function is transferred unless superseded by proper
17-15 authority of that entity.
17-16 SECTION 14. This Act takes effect September 1, 1993.
17-17 SECTION 15. The importance of this legislation and the
17-18 crowded condition of the calendars in both houses create an
17-19 emergency and an imperative public necessity that the
17-20 constitutional rule requiring bills to be read on three several
17-21 days in each house be suspended, and this rule is hereby suspended.