MBN C.S.H.B. 3492 75(R)BILL ANALYSIS ENERGY RESOURCES C.S.H.B. 3492 By: Holzheauser 4-4-97 Committee Report (Substituted) BACKGROUND During the 73rd Legislative Session the Texas Committee on Energy Policy and the Texas Energy Coordination Council were created. The purpose of the Committee is to develop a longterm energy policy for the State of Texas, make recommendations to the state and to industry regarding energy use, and encourage cooperation between the private and public sectors regarding energy related matters. The purpose of the Council was to respond to the Committee as a research tool and to help coordinate energy related research among public and private entities. Statute requires that the Texas Committee on Energy Policy meet at least once each calendar quarter. Due to the makeup of the Committee and the demands placed on each member within their respective offices this requirement has never been met. As a result the Texas Energy Coordination Council has been functioning without any direct guidance from the Committee. PURPOSE As proposed C.S.H.B. 3492 would eliminate the Texas Committee on Energy Policy and adjust the responsibilities, duties and powers of the Texas Energy Coordination Council to help coordinate energy research in Texas. RULEMAKING AUTHORITY This bill grants additional rulemaking authority in SECTION 7 (Section 3.07, Article 4413(47f), Vernon's Civil Statutes) to the Texas Energy Coordination Council. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 1.01, Chapter 793, Acts of the 73rd Legislature, Regular Session, 1993 (Article 4413(47f), Vernon's Texas Civil Statutes), to include the definition of "state agency" in regard to energy research. SECTION 2. Amends Section 1.02, Chapter 793, Acts of the 73rd Legislature, Regular Session, 1993 (Article 4413(47f), Vernon's Texas Civil Statutes), by deleting the requirement to develop a statewide energy policy, and adding the purpose of providing policy research on energy matters for the state legislature. Includes state agencies in the purpose of this Act. SECTION 3. Repeals Section 1.04, Chapter 793, Acts of the 73rd Legislature, Regular Session, 1993 (Article 4413(47f), Vernon's Texas Civil Statutes). SECTION 4. Repeals ARTICLE 2., Section 2.01 through Section 2.06, Chapter 793, Acts of the 73rd Legislature, Regular Session, 1993 (Article 4413(47f) Vernon's Texas Civil Statutes). SECTION 5. Amends Section 3.01, Chapter 793, Acts of the 73rd Legislature, Regular Session, 1993 (Article 4413)47f), Vernon's Texas Civil Statutes), to define the council as a state agency. SECTION 6. Amends Section 3.06, Chapter 793, Acts of the 73rd Legislature, Regular Session, 1993 (Article 4413(47f), Vernon's Texas Civil Statutes), as follows: subsections (2) through (9), (13), (15), (17), and (18) are deleted. Adds new subsection (2) stating that the council shall advise and assist the legislature in developing plans, programs, proposed legislation and other similar information in regard to energy policy and the improved use of energy resources in Texas. Adds new subsection (3) stating that the council shall determine the long-range needs, assess potential problems, and recommend policy priorities for the energy sector. Adds new subsection (4) stating that the council shall to submit to the Governor and legislature a report on the actions necessary to promote an effective and efficient energy sector. Amends old subsection (10), creating new subsection (5) stating that the council shall promote and establish the formation of consortia to study energy uses. Amends old subsection (12), creating new subsection (7) stating that the council shall coordinate and promote the transfer of energy technologies and energy research findings to the marketplace. Amends old subsection (14), creating new subsection (8) to add state agencies and state research programs to the list of entities which the council shall encourage and promote research among. Adds new subsection (10) stating that the council shall request, at its discretion, any state agency, postsecondary educational institutions and nonprofit research organization or associations to submit any energy related research programs for prior approval. Adds new subsection (11) to require the council to review all energy related grant applications. Makes conforming changes. SECTION 7. Amends Section 3.07, Chapter 793, Acts of the 73rd Legislature, Regular Session, 1993 (Article 4413(47f), Vernon's Civil Statutes), to include state agencies under the council's coordination, and to promote technical seminars on energy research. Adds subsection (10) allowing the council to enter into Memorandums of Understanding with any state agency, postsecondary educational institutions, and all nonprofit research organizations or associations. Adds subsection (11) to allow the council to adopt rules for the administration of this Act. Adds subsection (12) to allow the council to engage in other activities consistent with the responsibilities of the Act. Makes conforming changes. SECTION 8. Amends Chapter 793, Acts of the 73rd Legislature, Regular Session, 1993 (Article 4413(47f), Vernon's Texas Civil Statutes), by adding a Sunset Clause to abolish the council September 1, 1999 unless continued as provided by Chapter 325 (Sunset Act). SECTION 9. Section 4.01, Chapter 793, Acts of the 73rd Legislature, Regular Session, 1993 (Article 4413(47f), Vernon's Civil Statutes), is repealed. SECTION 10. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 1 of C.S.H.B. 3492 adds Texas River Authorities to the definition of a state agency. SECTION 3 of C.S.H.B. 3492 repeals Section 1.04. Chapter 793, Acts of the 73rd Legislature, Regular Session, 1993 (Article 4413(47f), Vernon's Texas Civil Statutes) SECTION 6 of C.S.H.B. 3492 adds the Governor to the list of those who shall biennially receive a report from the Texas Energy Coordination Council. SECTION 9 of C.S.H.B. 3492 corrects a typographical error by stating that Section 4.01, Chapter 793, Acts of the 73rd Legislature, Regular Session, 1993 (Article 4413(47f), Vernon's Texas Civil Statutes) is repealed.