S.B. No. 959
AN ACT
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 (3), (4), (5), and (6), Section 2,
1-5 Oil Overcharge Restitutionary Act (Article 4413(56), Vernon's Texas
1-6 Civil Statutes), are amended to read as follows:
1-7 (3) "Competitive grant program" means a program
1-8 through which the Legislative Budget Board <office of the governor>
1-9 finances projects under this Act that have been approved from a
1-10 group of competing proposals submitted by public or private
1-11 applicants.
1-12 (4) "Direct grant program" means a program through
1-13 which the Legislative Budget Board <office of the governor>
1-14 finances projects under this Act that have been approved as
1-15 components of a proposal recommended by the supervising agency of
1-16 that program.
1-17 (5) "Energy office" means the energy office of the
1-18 General Services Commission <office of the governor>.
1-19 (6) "Supervising agency" means the state agency,
1-20 department, commission, or other entity designated by this Act or
1-21 by the Legislative Budget Board <office of the governor> to
1-22 supervise, manage, or administer the implementation of a program
1-23 financed under this Act.
1-24 SECTION 2. Sections 3 and 4, Oil Overcharge Restitutionary
2-1 Act (Article 4413(56), Vernon's Texas Civil Statutes), are amended
2-2 to read as follows:
2-3 Sec. 3. Oil overcharge administration. (a) The power and
2-4 discretion to finance projects under, and oversee and monitor the
2-5 administration of, the competitive and direct grant programs
2-6 prescribed by this Act are assigned to the Legislative Budget Board
2-7 <office of the governor, subject to the requirements of Section 5
2-8 of this Act>. The board may finance projects under this Act only
2-9 with the approval of the governor.
2-10 (b) The Legislative Budget Board <office of the governor>
2-11 shall determine the supervising agency for each <competitive grant
2-12 program and for each> direct grant program established by the board
2-13 <office>. The board <office of the governor> may:
2-14 (1) establish direct grant programs <and competitive
2-15 grant programs> in addition to those provided by this Act; and
2-16 (2) establish criteria for eligibility and evaluation
2-17 of proposals submitted under direct grant programs <or competitive
2-18 grant programs>, which criteria may apply to one or more specific
2-19 programs or to all programs.
2-20 (c) The Legislative Budget Board <office of the governor>
2-21 shall establish programs and criteria and evaluate proposals in
2-22 accordance with applicable federal guidelines. The board <office
2-23 of the governor> is responsible for the transmission to the
2-24 appropriate federal entity of all information required under
2-25 applicable federal guidelines regarding programs and proposals
2-26 subject to this Act.
2-27 Sec. 4. Staff; agency and private assistance. (a) The
3-1 section of the Legislative Budget Board office that provides
3-2 federal funds analysis <energy office> shall provide staff to
3-3 implement and administer this Act.
3-4 (b) In addition to the section of the Legislative Budget
3-5 Board office that provides federal funds analysis <energy office>,
3-6 the Legislative Budget Board <office of the governor> may enlist
3-7 the assistance of any state agency, department, commission, or
3-8 other entity or any private entity in the evaluation or review of
3-9 proposals, the audit of program participants or supervising
3-10 agencies, the performance of administrative duties under this Act,
3-11 or the development of eligibility or evaluation criteria.
3-12 SECTION 3. Subsections (b) and (e), Section 6, Oil
3-13 Overcharge Restitutionary Act (Article 4413(56), Vernon's Texas
3-14 Civil Statutes), are amended to read as follows:
3-15 (b) Money in the account shall be appropriated by the
3-16 legislature to the Legislative Budget Board <governor> for use by
3-17 the board, subject to the approval <office> of the governor, in the
3-18 implementation and operation of programs authorized by this Act.
3-19 The board may reallocate amounts appropriated for direct grant
3-20 programs among any programs approved by the United States
3-21 Department of Energy. Money in the account also may be
3-22 appropriated to provide initial financing for the Texas energy
3-23 efficiency and conservation program established under Article 16,
3-24 State Purchasing and General Services Act (Article 601b, Vernon's
3-25 Texas Civil Statutes).
3-26 (e) The Legislative Budget Board <office of the governor>
3-27 shall determine the persons whose signatures are authorized to be
4-1 affixed to vouchers submitted to the comptroller for approval of
4-2 payments from the account. The Legislative Budget Board <office of
4-3 the governor> shall give the comptroller notice of each
4-4 determination made under this subsection. The comptroller shall
4-5 approve payments from the account in the manner provided for
4-6 approval of payments from other amounts appropriated by the
4-7 legislature.
4-8 SECTION 4. Subsection (b), Section 7, Oil Overcharge
4-9 Restitutionary Act (Article 4413(56), Vernon's Texas Civil
4-10 Statutes), is amended to read as follows:
4-11 (b) The supervising agency of a direct grant program
4-12 financed under this Act may adopt rules for implementation of the
4-13 program, including rules providing eligibility criteria, that are
4-14 not inconsistent with criteria established by applicable federal
4-15 guidelines, criteria prescribed by this Act, or criteria adopted by
4-16 the Legislative Budget Board <office of the governor>.
4-17 SECTION 5. Subsection (a), Section 8, Oil Overcharge
4-18 Restitutionary Act (Article 4413(56), Vernon's Texas Civil
4-19 Statutes), is amended to read as follows:
4-20 (a) The Texas Department of Housing and Community Affairs
4-21 <Human Services> is the supervising agency for the direct grant
4-22 program known as the emergency nutrition and temporary emergency
4-23 relief program, established by Chapter 34, Human Resources Code.
4-24 With direct grant money under this Act, the department, under the
4-25 program, shall provide money for payment to vendors of energy
4-26 utility services for the purpose of preventing the interruption or
4-27 termination of energy utility service or restoring that service to
5-1 low-income persons. The department shall allocate money provided
5-2 under this Act for the program for distribution within counties on
5-3 the basis of unemployment and poverty statistics for residents of
5-4 individual counties.
5-5 SECTION 6. Subsection (a), Section 10, Oil Overcharge
5-6 Restitutionary Act (Article 4413(56), Vernon's Texas Civil
5-7 Statutes), is amended to read as follows:
5-8 (a) The Texas Department of Housing and Community Affairs
5-9 <Human Services> is the supervising agency for the direct grant
5-10 program known as the low-income home energy assistance program,
5-11 established in accordance with the Low-Income Home Energy
5-12 Assistance Act of 1981 (42 U.S.C. Section 8621 et seq.). With
5-13 direct grant money under this Act, the department, under the
5-14 program, shall make payments directly to eligible low-income
5-15 households, or on behalf of such households to energy suppliers, to
5-16 assist the recipients in meeting the costs of home energy.
5-17 SECTION 7. Section 12, Oil Overcharge Restitutionary Act
5-18 (Article 4413(56), Vernon's Texas Civil Statutes), is amended to
5-19 read as follows:
5-20 Sec. 12. Native American restitutionary program. The Texas
5-21 Department of Housing and Community Affairs <Indian Commission> is
5-22 the supervising agency for a direct grant program to be known as
5-23 the Native American restitutionary program. Under the program, the
5-24 department <commission> shall distribute money granted under this
5-25 Act in accordance with the applicable federal guidelines for the
5-26 purpose of providing energy-related assistance to Native Americans
5-27 of this state.
6-1 SECTION 8. Subsection (a), Section 17, Oil Overcharge
6-2 Restitutionary Act (Article 4413(56), Vernon's Texas Civil
6-3 Statutes), is amended to read as follows:
6-4 (a) The energy office <of the governor> shall award one or
6-5 more competitive grants to support regulatory intervention
6-6 activities to promote the adoption and expansion by energy
6-7 utilities of consumer-oriented energy conservation programs.
6-8 SECTION 9. Subsection (a), Section 18, Oil Overcharge
6-9 Restitutionary Act (Article 4413(56), Vernon's Texas Civil
6-10 Statutes), is amended to read as follows:
6-11 (a) A competitive grant program to be known as the
6-12 public-private partnership program is established. Recipients of
6-13 grant money under the program may include but are not limited to
6-14 community foundations affiliated with the Communities Foundation,
6-15 Inc., of Texas. The Texas Department of Housing and Community
6-16 Affairs shall distribute competitive grant money provided under
6-17 this Act for <office of the governor may approve and finance> one
6-18 or more energy-related demonstration projects under this program as
6-19 well as more broadly aimed energy-related projects. Recipients of
6-20 grant money under the program may be required to provide in the
6-21 aggregate from private sources for projects financed under this
6-22 program amounts at least equal to the total amount of grants
6-23 awarded by the department <office of the governor> under the
6-24 program during a particular fiscal period.
6-25 SECTION 10. Subsection (a), Section 19, Oil Overcharge
6-26 Restitutionary Act (Article 4413(56), Vernon's Texas Civil
6-27 Statutes), is amended to read as follows:
7-1 (a) A competitive grant program to be known as the housing
7-2 partnership program is established. With competitive grant money
7-3 provided under this Act, the Texas Department of Housing and
7-4 Community Affairs <supervising agency> shall distribute money for
7-5 residential energy conservation projects which reduce the amount of
7-6 energy consumed for space heating, space cooling, water heating,
7-7 refrigeration, or other residential energy uses. Projects may
7-8 include demonstration of commercially available cost-effective
7-9 energy saving techniques and technologies, training and technical
7-10 assistance in energy efficient construction/remodeling, information
7-11 transfer to occupants, or financing incentives for energy saving
7-12 design or improvements. Eligible applicants may include local
7-13 governments, public housing agencies, or other public or nonprofit
7-14 organizations serving the housing needs of low and moderate income
7-15 individuals. Recipients of the grant money under this program may
7-16 be required to provide from other sources for projects financed
7-17 under this program amounts at least equal to the total amount of
7-18 grants awarded by the department <supervising agency> under the
7-19 program.
7-20 SECTION 11. Sections 21, 22, 23, 24, 25, and 26, Oil
7-21 Overcharge Restitutionary Act (Article 4413(56), Vernon's Texas
7-22 Civil Statutes), are amended to read as follows:
7-23 Sec. 21. Agricultural energy conservation program. A direct
7-24 <competitive> grant program to be known as the agricultural energy
7-25 conservation program is established. With direct <competitive>
7-26 grant money under this program, the Texas Natural Resource
7-27 Conservation Commission <supervising agency> shall distribute money
8-1 for energy projects designed to benefit agriculture in accordance
8-2 with applicable federal guidelines, including projects concerning
8-3 agricultural demonstration projects, energy audits of agricultural
8-4 and food processing facilities, and agricultural information and
8-5 technical assistance. <The office of the governor may finance a
8-6 selected proposal without requiring any matching amounts, or the
8-7 office may require that the recipient match any grant received
8-8 under the program.>
8-9 Sec. 22. Alternative energy program. A competitive grant
8-10 program to be known as the alternative energy program is
8-11 established. With competitive grant money provided under this Act,
8-12 the energy office <supervising agency> shall distribute money for
8-13 demonstration projects developing alternative energy resources,
8-14 which may include photovoltaics, biomass, wind, and solar
8-15 applications and other appropriate applications of alternative
8-16 energy. The Legislative Budget Board <office of the governor> may
8-17 require grant recipients under this program to match the grants in
8-18 ratios determined by the board <office>.
8-19 Sec. 23. Energy research and development program. The
8-20 Legislative Budget Board <office of the governor> may finance
8-21 projects under a direct <competitive> grant program to be known as
8-22 the energy research and development program that supplement or
8-23 initiate research by public or private institutions on
8-24 energy-related issues. The board <office of the governor> may
8-25 require recipients to match grants awarded under this program in
8-26 ratios determined by the board <office>.
8-27 Sec. 24. Local government energy program. <(a)> A direct
9-1 <competitive> grant program to be known as the local government
9-2 energy program is established. Under the program, the supervising
9-3 agency shall distribute <competitive> grant money provided under
9-4 this Act for energy-saving projects that benefit local governments
9-5 in this state.
9-6 <(b) Proposals under this section may include energy audits
9-7 of local government facilities, traffic light synchronization,
9-8 fleet management, and fuel-efficient transit routing. The office
9-9 of the governor may require grant recipients under this program to
9-10 match the grants in ratios determined by the office.>
9-11 Sec. 25. Transportation energy program. (a) A direct
9-12 <competitive> grant program to be known as the transportation
9-13 energy program is established. Under this program, the supervising
9-14 agency shall distribute <competitive> grant money provided under
9-15 this Act for projects concerning mass transit and other
9-16 transportation services. The projects may assist service providers
9-17 in providing services such as traffic light synchronization, fleet
9-18 management, energy-efficient computerized transit routing, car-care
9-19 clinics, vanpooling or ridesharing efforts, transportation of
9-20 public schoolchildren, transportation of inmates of local
9-21 correctional facilities <public education related to mass transit>,
9-22 driver energy conservation awareness training, and transportation
9-23 services for the elderly or handicapped and may include studies to
9-24 improve existing and plan for future transportation systems in
9-25 Texas.
9-26 (b) The Legislative Budget Board <office of the governor>
9-27 may require grant recipients under this program to match the grants
10-1 in ratios determined by the board <office>.
10-2 Sec. 26. Mass Transit Energy Program. (a) A competitive
10-3 grant program to be known as the mass transit energy program is
10-4 established. Under this program, the Texas Department of
10-5 Transportation <supervising agency> shall distribute competitive
10-6 grant money provided under this Act for projects concerning mass
10-7 transit that are approved by the Legislative Budget Board <office
10-8 of the governor> in accordance with this section.
10-9 (b) The Texas Department of Transportation <supervising
10-10 agency> may allocate competitive grant money among the categories
10-11 of eligible applicants according to the formula provided by this
10-12 section. For purposes of this section, an "eligible applicant" is
10-13 a municipality, a metropolitan or regional authority, or a local
10-14 governmental body or other entity that is a recipient of federal
10-15 public transportation money through the Texas <State> Department of
10-16 <Highways and Public> Transportation or other agency administering
10-17 federal public transportation money.
10-18 (c) The Texas Department of Transportation <supervising
10-19 agency> may allocate competitive grant money to the following three
10-20 categories:
10-21 (1) one-third to eligible applicants created under
10-22 Chapter 141, Acts of the 63rd Legislature, Regular Session, 1973
10-23 (Article 1118x, Vernon's Texas Civil Statutes); Chapter 683, Acts
10-24 of the 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
10-25 Statutes); or Article 1118z, Revised Statutes;
10-26 (2) one-third to eligible applicants that are in
10-27 urbanized areas with a population in excess of 50,000, according to
11-1 the most recent federal census and that are not created under the
11-2 laws specified in Subdivision (1) of this subsection; and
11-3 (3) one-third to eligible applicants in rural areas of
11-4 the state and in urban areas with populations of 50,000 or less,
11-5 according to the most recent federal census.
11-6 (d) To the greatest extent practicable, eligible applicants
11-7 who receive competitive grant money under this section <Act> shall
11-8 use the money to obtain other grants.
11-9 SECTION 12. Subsection (a), Section 27, Oil Overcharge
11-10 Restitutionary Act (Article 4413(56), Vernon's Texas Civil
11-11 Statutes), is amended to read as follows:
11-12 (a) A competitive grant program to be known as the energy
11-13 research in applications program is established. Under this
11-14 program, the Texas Higher Education Coordinating Board <supervising
11-15 agency> shall distribute competitive grant money provided under
11-16 this Act for projects conducted by institutions of higher education
11-17 and providing advanced research in energy-related subjects.
11-18 SECTION 13. Sections 28, 29, and 31, Oil Overcharge
11-19 Restitutionary Act (Article 4413(56), Vernon's Texas Civil
11-20 Statutes), are amended to read as follows:
11-21 Sec. 28. Diesel Fuel Conservation Program. A competitive
11-22 grant program to be known as the diesel fuel conservation program
11-23 is established to implement projects which will improve the fuel
11-24 efficiency of diesel-powered vehicles and equipment. Under the
11-25 program, the energy office <supervising agency> shall use
11-26 competitive grant money provided under this Act to benefit diesel
11-27 fuel consumers by identifying and implementing measures to save
12-1 diesel fuel. Projects may be funded to provide training and
12-2 technical assistance and/or to demonstrate and implement
12-3 commercially available technologies which improve the fuel
12-4 efficiency of trucks, boats, tractors, or other vehicles and
12-5 equipment which operate on diesel fuel.
12-6 Sec. 29. Energy Resource Optimization Program. A
12-7 competitive grant program to be known as the energy resource
12-8 optimization program is established. Under this program, the
12-9 General Land Office <supervising agency> shall distribute
12-10 competitive grant money provided under this Act for the initiation
12-11 or supplementation of research programs designed to recover
12-12 additional oil and gas from reservoirs in this state, with special
12-13 emphasis on recovery from state and other public lands.
12-14 Sec. 31. Traffic Light Synchronization Program. (a) The
12-15 Texas Department of Transportation <state department of highways
12-16 and public transportation> is the supervising agency for a
12-17 competitive grant program to be known as the traffic light
12-18 synchronization program. This program will provide assistance to
12-19 local governments throughout the state in efforts to save motor
12-20 fuels through the optimization of traffic signal timing plans.
12-21 (b) <(a)> The supervising agency shall award funds to local
12-22 jurisdictions for the costs of training, engineering services,
12-23 traffic studies, and other activities directly related to and
12-24 undertaken as part of local traffic signal retiming projects.
12-25 (c) <(b)> The Legislative Budget Board <office of the
12-26 governor> may require grant recipients under this program to match
12-27 the grants in ratios determined by the board <office of the
13-1 governor>.
13-2 SECTION 14. The State Purchasing and General Services Act
13-3 (Article 601b, Vernon's Texas Civil Statutes) is amended by adding
13-4 Article 16 to read as follows:
13-5 ARTICLE 16. TEXAS ENERGY EFFICIENCY AND CONSERVATION PROGRAM
13-6 Sec. 16.01. POLICY. It is the policy of this state to
13-7 promote energy efficiency and conservation within the state.
13-8 Implementation of the program provided by this article will be in
13-9 furtherance of that policy by making financial and technical
13-10 assistance available to authorized borrowers to enable the
13-11 borrowers to undertake energy efficiency and conservation projects.
13-12 Sec. 16.02. DEFINITIONS. In this article:
13-13 (1) "Authority" means the Texas Public Finance
13-14 Authority.
13-15 (2) "Program" means the Texas energy efficiency and
13-16 conservation program provided by this article.
13-17 (3) "Revenue bonds" means bonds, notes, commercial
13-18 paper, or other obligations.
13-19 (4) "Revolving fund" means the Texas energy efficiency
13-20 and conservation revolving fund.
13-21 Sec. 16.03. TEXAS ENERGY EFFICIENCY AND CONSERVATION
13-22 REVOLVING FUND. (a) The Texas energy efficiency and conservation
13-23 revolving fund is established in the state treasury.
13-24 (b) The revolving fund consists of the proceeds of revenue
13-25 bonds issued as provided by this article, fees collected as
13-26 provided by Section 16.06 of this article, federal grants, direct
13-27 appropriations, income from investment or deposit of amounts in the
14-1 fund, grants from private sources, and repayments of financial
14-2 assistance made from the fund.
14-3 (c) The commission may provide for the establishment and
14-4 maintenance of separate accounts within the revolving fund,
14-5 including program accounts, and, at the direction of the authority,
14-6 shall provide for interest and sinking accounts and reserve
14-7 accounts relating to revenue bonds. The state treasurer shall hold
14-8 the assets of the revolving fund in trust for the program and the
14-9 repayment of bonds issued for the program. The revolving fund is a
14-10 trust fund for all purposes, including the application of Sections
14-11 403.094, 403.095, and 404.071, Government Code.
14-12 (d) Money in the revolving fund may be appropriated only for
14-13 the repayment of bonds issued for the program, the payment of costs
14-14 of issuance of the bonds, and making loans under and paying
14-15 expenses for the administration of the program. The use of money
14-16 from the fund must be consistent with Article III, Section 18, of
14-17 the Texas Constitution.
14-18 (e) The commission and the authority shall jointly
14-19 administer the revolving fund.
14-20 Sec. 16.04. AUTHORIZED BORROWERS AND ELIGIBLE PROJECTS.
14-21 (a) An agency or governmental entity of the state and any
14-22 political subdivision or other type of local governmental entity in
14-23 the state, including a county, municipality, special purpose
14-24 district, or corporation held by a governmental entity, is
14-25 authorized to be a borrower under the program provided by this
14-26 article.
14-27 (b) Any energy efficiency or conservation project undertaken
15-1 by an authorized borrower involving the acquisition, construction,
15-2 fabrication, installation, or maintenance of improvements,
15-3 buildings, facilities, or equipment determined by the authorized
15-4 borrower to promote the conservation or efficient use of energy
15-5 sources is an eligible project for assistance under the program
15-6 provided by this article, including a project involving the
15-7 conversion of motor vehicles or other sources of substantial energy
15-8 use to alternative fuels and engine-driven applications and a
15-9 project involving the acquisition, construction, fabrication,
15-10 installation, or maintenance of fueling stations supplying
15-11 alternative fuels or equipment enhancing the use of engine-driven
15-12 technology to support motor vehicles or other energy applications
15-13 that use alternative fuels.
15-14 Sec. 16.05. TEXAS ENERGY EFFICIENCY AND CONSERVATION
15-15 PROGRAM. (a) The commission shall establish and administer the
15-16 Texas energy efficiency and conservation program, shall administer
15-17 all loans made under the program, and shall collect loan payments
15-18 and deposit them in the revolving fund. The commission shall adopt
15-19 rules governing the application for financial assistance under the
15-20 program and establish criteria for determining which authorized
15-21 borrowers may participate in the program. In establishing criteria
15-22 for participation in the program, the commission shall adopt
15-23 requirements to ensure the full repayment of all financial
15-24 assistance and the solvency of the program.
15-25 (b) The commission may adopt other rules it considers
15-26 necessary to administer the program or considers in the best
15-27 interests of the program.
16-1 Sec. 16.06. FEES. The commission shall set and collect,
16-2 from applicants and borrowers under the program, fees the
16-3 commission considers sufficient to cover the expenses of
16-4 administering the program or considers in the best interest of the
16-5 program. The commission shall deposit the fees in the revolving
16-6 fund and shall apply the fees in accordance with the commission's
16-7 resolutions and rules.
16-8 Sec. 16.07. ISSUANCE OF REVENUE BONDS. (a) The commission
16-9 by resolution may periodically apply for the issuance of revenue
16-10 bonds for the purpose of providing money for the revolving fund by
16-11 submission to the authority of a request for financing that
16-12 describes the projects to be financed. The total amount of bonds
16-13 issued for the revolving fund and the program may not exceed $100
16-14 million. The commission shall submit each such resolution it
16-15 adopts to the authority, and the authority is responsible for
16-16 issuing the bonds for the commission.
16-17 (b) Proceeds of revenue bonds issued as provided by this
16-18 article shall be deposited in the revolving fund and applied in
16-19 accordance with the resolution applying for issuance of the bonds:
16-20 (1) to provide financial assistance to authorized
16-21 borrowers; and
16-22 (2) to pay costs of issuance of those revenue bonds.
16-23 (c) Revenue bonds issued as provided by this article are
16-24 obligations solely of the authority and are payable solely from
16-25 money in the revolving fund, which is pledged to the repayment of
16-26 the revenue bonds. The authority's revenue bonds under this
16-27 article are not and do not create or constitute a pledge, giving,
17-1 or lending of the faith, credit, or taxing power of the state.
17-2 Each revenue bond issued under this article must contain a
17-3 statement to the effect that the state is not obligated to pay the
17-4 principal of or any premium or interest on the revenue bond and
17-5 that neither the faith or credit nor the taxing power of the state
17-6 is pledged, given, or loaned to such a payment.
17-7 (d) Revenue bonds of the authority shall be payable as to
17-8 principal, interest, and redemption premium, if any, from and
17-9 secured by a first lien or a subordinate lien on and pledge of all
17-10 or any part of the property, revenues, income, or other resources
17-11 in the revolving fund and may be further secured by all or part of
17-12 the net revenues dedicated under the loan documents by the borrower
17-13 for payment of the revenue bonds, by taxes levied by the borrower
17-14 for that purpose, or by a combination of taxes and net revenue from
17-15 other available sources, as specified in the commission's
17-16 resolution applying for issuance of those revenue bonds. The
17-17 authority may require that the loans made under the program be
17-18 supported both by taxes and by net revenue from the operation of
17-19 the project in any ratio the authority considers necessary to fully
17-20 secure the loans. The authority shall establish other conditions
17-21 and requirements it considers to be consistent with sound
17-22 investment practices and in the public interest.
17-23 (e) The commission may provide in a resolution applying for
17-24 the issuance of revenue bonds a request for the issuance of
17-25 additional revenue bonds to be equally and ratably secured by lien
17-26 on the revenues and receipts or for the issuance of subordinate
17-27 lien revenue bonds.
18-1 (f) Revenues of the commission that may be used as a source
18-2 of payment for the revenue bonds or to establish a reserve account
18-3 to secure the payment of debt service on the revenue bonds include
18-4 repayments of financial assistance, money appropriated by the
18-5 legislature to the commission for the purpose of paying or securing
18-6 the payment of debt service on the revenue bonds, fees collected
18-7 under Section 16.05 of this article, and federal or private money
18-8 allocated to the program.
18-9 Sec. 16.08. DEFAULT. In the event of a default in payment
18-10 of the principal of or interest on any loan made under the program
18-11 or any other default with respect to the loan, the attorney general
18-12 shall institute appropriate proceedings by mandamus or other legal
18-13 remedies to compel the borrower or its officers, agents, and
18-14 employees to cure the default by performing those duties that they
18-15 are legally obligated to perform. These proceedings shall be
18-16 brought and venue shall be in a district court of Travis County.
18-17 Sec. 16.09. GENERAL PROVISIONS RELATING TO BONDS. (a) The
18-18 authority's revenue bonds under this article may be issued by the
18-19 authority from time to time in one or more series or issues, in
18-20 bearer, registered, or any other form, which may include registered
18-21 uncertified obligations not represented by written instruments and
18-22 commonly known as book-entry obligations, the registration of
18-23 ownership and transfer of which shall be provided for by the
18-24 authority under a system of books and records maintained by the
18-25 authority. Bonds may mature serially or otherwise not more than 40
18-26 years from their date of issuance. Bonds may bear no interest or
18-27 may bear interest at any rate or rates, fixed, variable, floating,
19-1 or otherwise, determined by the authority or determined pursuant to
19-2 any contractual arrangements approved by the authority, not to
19-3 exceed the maximum net effective interest rate allowed by Chapter
19-4 3, Acts of the 61st Legislature, Regular Session, 1969 (Article
19-5 717k-2, Vernon's Texas Civil Statutes). Interest on the bonds may
19-6 be payable at any time, and the rate of interest on the bonds may
19-7 be adjusted at such time as may be determined by the authority or
19-8 as may be determined pursuant to any contractual arrangement
19-9 approved by the authority. In connection with the issuance of
19-10 bonds as provided by this article, the authority may exercise the
19-11 powers granted to the governing body of an issuer in connection
19-12 with the issuance of obligations under Chapter 656, Acts of the
19-13 68th Legislature, Regular Session, 1983 (Article 717q, Vernon's
19-14 Texas Civil Statutes).
19-15 (b) The bonds issued under this article and interest
19-16 coupons, if any, are investment securities under the terms of
19-17 Chapter 8, Business & Commerce Code. The bonds are exempt
19-18 securities under The Securities Act (Article 581-1 et seq.,
19-19 Vernon's Texas Civil Statutes), and unless specifically provided
19-20 otherwise, under any subsequently enacted securities law. Any
19-21 contract, guaranty, or other document executed in connection with
19-22 the issuance of bonds pursuant to this article is not a security
19-23 under The Securities Act (Article 581-1 et seq., Vernon's Texas
19-24 Civil Statutes), and unless specifically provided otherwise, any
19-25 subsequently enacted securities law. The authority may do all
19-26 things necessary to qualify the bonds for offer and sale under the
19-27 securities laws and regulations of the United States and of the
20-1 states and other jurisdictions in the United States as the
20-2 authority determines.
20-3 (c) The bonds may be issued in the form and denominations
20-4 and executed in the manner and under the terms, conditions, and
20-5 details determined as provided by the authority in the resolution
20-6 authorizing their issuance. If any officer whose manual or
20-7 facsimile signature appears on the bonds ceases to be an officer,
20-8 the signature is still valid and sufficient for all purposes as if
20-9 the officer had remained in office.
20-10 (d) The bonds may be sold at public or private sale with or
20-11 without public bidding in the manner, at such rate or rates, price
20-12 or prices, and on such terms as may be determined by the authority
20-13 or determined as provided in any contractual arrangement approved
20-14 by the authority. The authority also may enter into any
20-15 contractual arrangement under which the bonds are to be sold from
20-16 time to time, or subject to purchase, at such prices and rates,
20-17 interest rate or payment periods, and terms as determined pursuant
20-18 to that contractual arrangement approved by the authority.
20-19 (e) The authority may provide procedures for the replacement
20-20 of a mutilated, lost, stolen, or destroyed bond or interest coupon.
20-21 (f) The resolutions of the authority issuing bonds may
20-22 contain other provisions and covenants as the authority may
20-23 determine. The authority may adopt and have executed any other
20-24 proceedings or instruments necessary and convenient in the issuance
20-25 of bonds as provided by this article, including entering into
20-26 financing agreements with the commission.
20-27 Sec. 16.10. APPLICATION OF TEXAS PUBLIC FINANCE AUTHORITY
21-1 ACT. Section 10A, as added by Chapter 896, Acts of the 71st
21-2 Legislature, Regular Session, 1989, and Sections 10B, 15, 16, 17,
21-3 18, 19, and 20, Texas Public Finance Authority Act (Article 601d,
21-4 Vernon's Texas Civil Statutes), apply to revenue bonds issued by
21-5 the authority under this article as if the bonds were issued under
21-6 that Act for the construction of a building.
21-7 SECTION 15. The heading of Chapter 447, Government Code, is
21-8 amended to read as follows:
21-9 CHAPTER 447. ENERGY MANAGEMENT CENTER
21-10 <OF THE OFFICE OF THE GOVERNOR>
21-11 SECTION 16. Section 447.001, Government Code, is amended to
21-12 read as follows:
21-13 Sec. 447.001. Establishment of Center. The energy
21-14 management center is established in the General Services Commission
21-15 <as a division of the office of the governor>.
21-16 SECTION 17. Subsections (a), (c), and (d), Section 447.004,
21-17 Government Code, are amended to read as follows:
21-18 (a) The <Through the> energy management center<, the office
21-19 of the governor> shall adopt and publish energy conservation design
21-20 standards, under the Administrative Procedure and Texas Register
21-21 Act (Article 6252-13a, Vernon's Texas Civil Statutes), that all new
21-22 state buildings and major renovation projects, including buildings
21-23 and major renovation projects of state-supported institutions of
21-24 higher education, are required to meet. The center <office of the
21-25 governor> shall define what constitutes a major renovation project
21-26 under this section and shall review and update the standards
21-27 biennially.
22-1 (c) The standards must be adopted in terms of energy
22-2 consumption levels and must take into consideration the various
22-3 classes of building uses and must allow for design flexibility.
22-4 Procedural standards must be directed toward specific design and
22-5 building practices that produce good thermal resistance and low
22-6 infiltration and toward requiring practices in the design of
22-7 mechanical and electrical systems that maximize energy efficiency.
22-8 The procedural standards must concern, as applicable:
22-9 (1) insulation;
22-10 (2) lighting;
22-11 (3) ventilation;
22-12 (4) climate control;
22-13 (5) special energy requirements of health-related
22-14 facilities of higher education and state agencies; and
22-15 (6) any other item that the center <office of the
22-16 governor> considers appropriate that is adopted under the
22-17 Administrative Procedure and Texas Register Act (Article 6252-13a,
22-18 Vernon's Texas Civil Statutes).
22-19 (d) In order to demonstrate compliance with the requirement
22-20 to adopt and update the conservation design standards, each agency
22-21 and institution of higher education shall submit a copy of its
22-22 design and construction manuals to the center <office of the
22-23 governor> on request.
22-24 SECTION 18. Sections 447.005, 447.006, and 447.007,
22-25 Government Code, are amended to read as follows:
22-26 Sec. 447.005. Energy Efficiency Projects. Subject to
22-27 applicable state and federal laws or guidelines, the <office of the
23-1 governor, through the> energy management center<,> may implement
23-2 energy efficiency projects at state agencies or may assist those
23-3 agencies in implementing the projects through energy efficiency
23-4 programs financed through state or federal grants or loans and
23-5 shall provide staff for administration of the Texas energy
23-6 efficiency and conservation program established under Article 16,
23-7 State Purchasing and General Services Act (Article 601b, Vernon's
23-8 Texas Civil Statutes).
23-9 Sec. 447.006. Obtaining Data. The energy management center
23-10 <office of the governor> shall obtain semiannually from each state
23-11 agency information relating to the cost of heating and cooling
23-12 buildings owned by the state.
23-13 Sec. 447.007. Model Codes. The energy management center
23-14 <office of the governor> may recommend model energy conservation
23-15 building codes to municipalities for use in enacting or amending
23-16 municipal ordinances.
23-17 SECTION 19. Subsection (a), Section 447.008, Government
23-18 Code, is amended to read as follows:
23-19 (a) The <Through the> energy management center<, the office
23-20 of the governor> may provide additional energy services to state
23-21 and local governments, including:
23-22 (1) training of designated state and local
23-23 governmental employees in energy management, energy-accounting
23-24 techniques, and energy efficient design and construction;
23-25 (2) technical assistance to state agencies and local
23-26 governments regarding energy efficient capital improvements, energy
23-27 efficient building design, and cogeneration and thermal storage
24-1 investments;
24-2 (3) technical assistance to the State Auditor and to
24-3 state agencies regarding conducting energy management performance
24-4 audits and monitoring of utility bills to detect billing errors;
24-5 (4) technical assistance to state agencies and local
24-6 governments regarding third-party financing of energy efficient
24-7 capital improvement projects; and
24-8 (5) other energy-related assistance requested by
24-9 agencies, other legislatively created entities of the state,
24-10 institutions of higher education, local governments, including
24-11 school districts, and consortiums of institutions of higher
24-12 education that the center <office of the governor> considers
24-13 appropriate.
24-14 SECTION 20. Subsection (a), Section 447.011, Government
24-15 Code, is amended to read as follows:
24-16 (a) The <Through the> energy management center<, the office
24-17 of the governor> shall provide energy management planning
24-18 assistance to state agencies and institutions of higher education,
24-19 including:
24-20 (1) preparation of a long-range plan for the delivery
24-21 of reliable, cost-effective utility services for state agencies,
24-22 institutions of higher education, boards, and commissions in Travis
24-23 County. This plan shall be presented to the affected agencies for
24-24 use in preparing their five-year construction and major
24-25 rehabilitation plans. After other energy-saving alternatives are
24-26 considered, district heating and cooling and on-site generation of
24-27 electricity may be considered in planning for reliable, efficient,
25-1 and cost-effective utility services;
25-2 (2) assistance to the Department of Public Safety for
25-3 energy emergency contingency planning, using state or federal funds
25-4 when available; and
25-5 (3) assistance to state agencies and institutions of
25-6 higher education in preparing comprehensive energy management
25-7 plans. The energy management center shall prepare guidelines for
25-8 the preparation of these plans. State agencies and institutions of
25-9 higher education that expend more than $250,000 annually for
25-10 heating, lighting, and cooling and that occupy state-owned
25-11 buildings shall prepare and submit a five-year energy management
25-12 plan to the center <office of the governor>. Agencies and
25-13 institutions of higher education with smaller usage may be required
25-14 to submit such plans. Updated plans shall be submitted biennially
25-15 when requested by the center <governor>.
25-16 SECTION 21. (a) Sections 5 and 20, Oil Overcharge
25-17 Restitutionary Act (Article 4413(56), Vernon's Texas Civil
25-18 Statutes), are repealed.
25-19 (b) On the effective date of this Act, all obligations and
25-20 records of the revolving loan program created under Section 20, Oil
25-21 Overcharge Restitutionary Act (Article 4413(56), Vernon's Texas
25-22 Civil Statutes), are transferred to the General Services Commission
25-23 and become property and obligations under the Texas energy
25-24 efficiency and conservation program established under Article 16,
25-25 State Purchasing and General Services Act (Article 601b, Vernon's
25-26 Texas Civil Statutes), as added by this Act, and all obligations to
25-27 the former program become obligations to the Texas energy
26-1 efficiency and conservation program.
26-2 (c) If revenue bonds are issued under Article 16, State
26-3 Purchasing and General Services Act (Article 601b, Vernon's Texas
26-4 Civil Statutes), as added by this Act, and the bond proceeds are
26-5 used to replace money appropriated from the oil overcharge account,
26-6 the oil overcharge money that is replaced by those proceeds may be
26-7 used only to finance projects under the Oil Overcharge
26-8 Restitutionary Act (Article 4413(56), Vernon's Texas Civil
26-9 Statutes), for low-income individuals and low-wealth school
26-10 districts.
26-11 SECTION 22. If H.B. No. 2260, 73rd Legislature, Regular
26-12 Session, 1993, is enacted by the legislature and becomes law, this
26-13 Act prevails, to the extent of conflict, over any provisions of
26-14 H.B. No. 2260 that purport to transfer responsibility for the
26-15 administration of oil overcharge funds or the responsibility for
26-16 reporting on, monitoring, or administering a program under the Oil
26-17 Overcharge Restitutionary Act (Article 4413(56), Vernon's Texas
26-18 Civil Statutes).
26-19 SECTION 23. On the effective date of this Act, all powers,
26-20 duties, obligations, records, and property of the office of the
26-21 governor that are connected to a function that is transferred from
26-22 the office of the governor to another entity by this Act and all
26-23 appropriations to the office of the governor for functions
26-24 transferred by this Act are transferred to the appropriate entity.
26-25 All employees of the energy management center of the office of the
26-26 governor are transferred to the General Services Commission. All
26-27 rules, standards, and specifications of the office of the governor
27-1 that relate to a function that is transferred by this Act remain in
27-2 effect as rules, standards, and specifications of the entity to
27-3 which the function is transferred unless superseded by proper
27-4 authority of that entity.
27-5 SECTION 24. This Act takes effect September 1, 1993.
27-6 SECTION 25. The importance of this legislation and the
27-7 crowded condition of the calendars in both houses create an
27-8 emergency and an imperative public necessity that the
27-9 constitutional rule requiring bills to be read on three several
27-10 days in each house be suspended, and this rule is hereby suspended.