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.