By Hirschi H.B. No. 3205
75R7604 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the establishment of a revolving fund to finance
1-3 projects to conserve energy or water and provide technical
1-4 assistance for voluntary certification of environmentally conscious
1-5 builders and designers.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Chapter 2166, Government Code, is amended by
1-8 adding Subchapter M to read as follows:
1-9 SUBCHAPTER M. FINANCIAL ASSISTANCE FOR ENERGY AND
1-10 WATER CONSERVATION PROJECTS
1-11 Sec. 2166.601. DEFINITION. In this subchapter, "revolving
1-12 fund" means the energy and water conservation revolving fund.
1-13 Sec. 2166.602. CREATION AND ADMINISTRATION OF REVOLVING
1-14 FUND. (a) The revolving fund is outside the state treasury.
1-15 (b) The commission shall administer the revolving fund under
1-16 this subchapter and rules adopted by the commission.
1-17 (c) The revolving fund consists of:
1-18 (1) the proceeds of revenue bonds issued by the state
1-19 and deposited to the credit of the revolving fund;
1-20 (2) investment earnings on amounts credited to the
1-21 revolving fund;
1-22 (3) principal and interest paid by borrowers on loans
1-23 from the revolving fund;
1-24 (4) gifts or grants to the commission for the purposes
2-1 of the revolving fund; and
2-2 (5) appropriations to the revolving fund.
2-3 Sec. 2166.603. USE OF MONEY IN FUND. (a) The commission
2-4 may use money in the revolving fund:
2-5 (1) to make loans for energy or water conservation
2-6 projects;
2-7 (2) to provide technical assistance to political
2-8 subdivisions for the creation of voluntary programs to certify
2-9 environmentally conscious builders and designers;
2-10 (3) to serve as a source of revenue or security for
2-11 the payment of the principal of and interest on revenue bonds
2-12 issued by the state the proceeds of the sale of which are deposited
2-13 to the credit of the revolving fund; and
2-14 (4) to pay the reasonable costs of administering the
2-15 program established by this subchapter.
2-16 (b) The commission may not use more than five percent of the
2-17 amount of money in the fund annually for the costs of administering
2-18 the program established by this subchapter.
2-19 (c) Money in the fund may be invested in investments
2-20 authorized by Section 404.024.
2-21 Sec. 2166.604. BONDS. (a) The commission by resolution may
2-22 authorize the issuance of revenue bonds in total aggregate amounts
2-23 not to exceed $100 million. Bonds issued under this subchapter are
2-24 not debts of the state, a state agency, or a political subdivision
2-25 of the state and are not a pledge of the faith and credit of the
2-26 state, a state agency, or a political subdivision of the state.
2-27 The bonds are payable solely from money in the fund.
3-1 (b) Before the commission may issue bonds under this
3-2 subchapter, the bond review board must review and approve the bonds
3-3 under Chapter 1078, Acts of the 70th Legislature, Regular Session,
3-4 1987 (Article 717k-7, Vernon's Texas Civil Statutes).
3-5 (c) A resolution adopted under Subsection (a) may provide
3-6 for:
3-7 (1) the terms of the bonds;
3-8 (2) the manner of execution of the bonds; and
3-9 (3) the registration of ownership of the bonds.
3-10 (d) The commission shall coordinate the marketing and
3-11 distribution of the bonds.
3-12 (e) The attorney general shall examine the bonds and the
3-13 records relating to the bonds' issuance. If the attorney general
3-14 finds that the bonds have been issued in accordance with law, the
3-15 attorney general shall approve the bonds, and the comptroller shall
3-16 register the bonds. Following approval and registration, the bonds
3-17 are incontestable and are binding obligations according to their
3-18 terms.
3-19 (f) The commission shall deposit the proceeds from the sale
3-20 of the bonds in the revolving fund.
3-21 Sec. 2166.605. TERMS OF LOANS. (a) The commission may use
3-22 money in the revolving fund to make a loan for an energy or water
3-23 conservation project to:
3-24 (1) a political subdivision; or
3-25 (2) a corporation that is incorporated under the Texas
3-26 Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
3-27 Texas Civil Statutes) or holds a certificate of authority issued
4-1 under that Act.
4-2 (b) The loan agreement must provide that:
4-3 (1) the loan is made at an annual interest rate of
4-4 four percent;
4-5 (2) the term of the loan is based on the savings
4-6 generated by the project, as determined by the commission;
4-7 (3) the recipient of the loan must establish a
4-8 dedicated source of revenue for repayment of the loan; and
4-9 (4) the revolving fund must be credited with each
4-10 payment of principal of or interest on the loan.
4-11 (c) Notwithstanding Subsection (b)(2), the term of the loan
4-12 may not exceed 12 years.
4-13 Sec. 2166.606. QUALIFYING PROJECTS. On review of the
4-14 executive director's recommendation, the commission by resolution
4-15 may approve an application for a loan of money in the fund to a
4-16 political subdivision or nonprofit corporation for an energy or
4-17 water conservation project, including the installation of:
4-18 (1) high-efficiency lighting in an existing building;
4-19 (2) daylighting in a new building;
4-20 (3) high-performance glass or glazing;
4-21 (4) natural-gas-fired equipment;
4-22 (5) improved efficiency heating, ventilation, or air
4-23 conditioning equipment, including equipment with direct digital
4-24 controls or air-to-air heating and cooling recovery;
4-25 (6) photovoltaic cells for stand-alone systems; or
4-26 (7) water conservation fixtures or rainwater
4-27 collection systems for landscaping or facility use.
5-1 Sec. 2166.607. TECHNICAL ASSISTANCE FOR BUILDER
5-2 CERTIFICATION PROGRAMS. (a) On review of the executive director's
5-3 recommendation, the commission by resolution may approve an
5-4 application to use money in the fund to provide technical
5-5 assistance to political subdivisions for the creation of voluntary
5-6 programs to certify environmentally conscious builders and
5-7 designers.
5-8 (b) The commission may assist political subdivisions in
5-9 adopting a standardized rating system for evaluating projects to
5-10 determine whether they are designed and built in an environmentally
5-11 conscious manner.
5-12 Sec. 2166.608. RULES. The commission shall adopt rules as
5-13 necessary to carry out this subchapter.
5-14 SECTION 2. The General Services Commission shall begin
5-15 making loans as provided by Subchapter M, Chapter 2166, Government
5-16 Code, as added by this Act, not later than March 1, 1999.
5-17 SECTION 3. This Act takes effect September 1, 1997.
5-18 SECTION 4. The importance of this legislation and the
5-19 crowded condition of the calendars in both houses create an
5-20 emergency and an imperative public necessity that the
5-21 constitutional rule requiring bills to be read on three several
5-22 days in each house be suspended, and this rule is hereby suspended.