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.