By:  Ratliff                                          S.B. No. 1906

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the administration of oil overcharge funds.

 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-3           SECTION 1.  Sections 2305.031 through 2305.039, Government

 1-4     Code, are repealed.

 1-5           SECTION 2.  Subdivision (3), Section 2305.002, Government

 1-6     Code, is amended to read as follows:

 1-7                 (3)  "Energy office" means the state energy

 1-8     conservation office of the General Services Commission.

 1-9           SECTION 3.  Section 2305.011, Government Code, is amended to

1-10     read as follows:

1-11           Sec. 2305.011.  ADMINISTRATION BY GENERAL SERVICES COMMISSION

1-12     [GOVERNOR] AND ENERGY OFFICE.  (a)  The energy office shall

1-13     [Subject to Section 2305.013, the governor may:]

1-14                 [(1)  finance a project under this chapter; and]

1-15                 [(2)]  oversee and monitor the administration of

1-16     programs [a program] prescribed by this chapter.

1-17           (b)  The governor and the energy office may establish direct

1-18     grant programs and competitive grant programs in addition to the

1-19     programs provided by this chapter.

1-20           (c)  The energy office [governor] shall[:]

1-21                 [(1)  determine the supervising state agency for each

1-22     competitive grant program and for each direct grant program

1-23     established by the governor; and]

 2-1                 [(2)]  establish programs and criteria and evaluate a

 2-2     proposal in accordance with applicable federal guidelines.

 2-3           (d)  The energy office shall send to the appropriate federal

 2-4     entity all information required under applicable federal

 2-5     guidelines.

 2-6           (e)  Criteria established under this section may apply

 2-7     generally to all programs or specifically to one or more programs.

 2-8           SECTION 4.  Sections 2305.022 and 2305.023, Government Code,

 2-9     are amended to read as follows:

2-10           Sec. 2305.022.  USE OF ACCOUNT.  Money in the account may be

2-11     used only by the governor and the General Services Commission to

2-12     implement and operate the programs authorized by this chapter.

2-13           Sec. 2305.023.  ACCOUNT RECORDS; ENERGY OFFICE REPORT.

2-14     (a)  The comptroller shall establish records of the money in the

2-15     account that are sufficient to identify the source of each

2-16     particular amount in the account to facilitate a determination of

2-17     compliance with applicable federal guidelines relating to the use

2-18     of money derived from each particular source.

2-19           (b)  Not later than January 15 of each odd-numbered year, the

2-20     energy office shall submit to the governor and the legislature a

2-21     biennial report that shows the expenditures from the account during

2-22     the previous biennium and the amount remaining in the account on

2-23     the date of the report.

2-24           SECTION 5.  Subchapter D, Chapter 2305, Government Code, is

2-25     amended by amending the subchapter heading and adding Section

 3-1     2305.031 to read as follows:

 3-2            SUBCHAPTER D.  OIL OVERCHARGE [DIRECT GRANT] PROGRAMS

 3-3           Sec. 2305.031.  OIL OVERCHARGE PROGRAMS.  The energy office

 3-4     shall maintain a revolving loan program for the benefit of state

 3-5     agencies, universities, and political subdivisions.  The energy

 3-6     office shall use oil overcharge funds for the programs and purposes

 3-7     in this subchapter.

 3-8           SECTION 6.  Subchapter D, Chapter 2305, Government Code, is

 3-9     amended by transferring Section 2305.065 from Subchapter E,

3-10     redesignating Section 2305.065 as Section 2305.032, and amending

3-11     that section to read as follows:

3-12           Sec. 2305.032 [2305.065].  LOANSTAR REVOLVING LOAN PROGRAM.

3-13     (a)  The energy office [governor] under the loanstar revolving loan

3-14     program may approve and finance [demonstration] projects that

3-15     provide loans to eligible applicants for energy-saving capital

3-16     improvements.  Projects [(b)  The supervising state agency of the

3-17     program may distribute competitive grant money under the program to

3-18     finance energy conservation projects] approved by the energy office

3-19     should [governor for the] benefit [of]:

3-20                 (1)  a state agency or institution of higher education;

3-21                 (2)  a public school;

3-22                 (3)  a political subdivision of the state;

3-23                 (4)  [a transportation provider;]

3-24                 [(5)  an agricultural producer;]

3-25                 [(6)]  a small to medium-sized business; and

 4-1                 (5)  a public or nonprofit hospital or health care

 4-2     facility [(7)  an individual of low or moderate income].

 4-3           (b) [(c)]  The energy office [governor] shall determine the

 4-4     terms under which a loan may be made under this section and shall

 4-5     set the interest rate for a loan at a low rate that the energy

 4-6     office [governor] determines is sufficient to recover the cost of

 4-7     administering the loan program.

 4-8           (c)  At least 85 percent of the loans made under this section

 4-9     shall be awarded to state agencies, institutions of higher

4-10     education, public schools, or political subdivisions.

4-11           (d)  Any borrower that [A person who] receives a loan under

4-12     this section shall repay the principal of and interest on the loan

4-13     from the value of energy savings that accrues as the result of the

4-14     energy conservation measure implemented with the borrowed money.

4-15           (e)  An [A state agency or] institution that receives a loan

4-16     under this section shall repay the loan from the amount budgeted

4-17     for the agency's or institution's energy costs.  Until the loan is

4-18     repaid, the legislature may not reduce the amount budgeted for

4-19     those energy costs to reflect the value of energy savings that

4-20     accrues as a result of the energy conservation measure implemented

4-21     with the borrowed money.

4-22           (f)  The energy office shall allocate at least $95 million,

4-23     including loan commitments and cash on hand, to the loanstar

4-24     program and shall administer the funds under its control in a

4-25     manner that assures that funds available to the loanstar program

 5-1     equal or exceed $95 million at all times.

 5-2           SECTION 7.  Subchapter D, Chapter 2305, Government Code, is

 5-3     amended by redesignating Section 2305.041 as Section 2305.033 and

 5-4     amending that section to read as follows:

 5-5           Sec. 2305.033 [2305.041].  STATE ENERGY [CONSERVATION]

 5-6     PROGRAM.  (a)  The energy office is the supervising state agency

 5-7     for the state energy [conservation] program.

 5-8           (b)  In accordance with Part B, Energy Policy and

 5-9     Conservation Act (42 U.S.C. Sec. 6321 et seq.), the energy office,

5-10     under the program, shall[:]

5-11                 [(1)]  distribute funds [direct grant money] for

5-12     projects that save measurable quantities of energy[; and]

5-13                 [(2)  finance the operation of the Energy Management

5-14     Center for Texas Schools, in accordance with Section 88A, Public

5-15     Utility Regulatory Act (Article 1446c, Vernon's Texas Civil

5-16     Statutes)].

5-17           (c)  A project under Subsection (b) [(b)(1)] must be

5-18     implemented primarily by institutions or private sector energy

5-19     consumers.

5-20           (d)  A proposal under Subsection (b) [(b)(1)] must:

5-21                 (1)  promote the conservation of energy; and

5-22                 (2)  improve the efficient use of energy through

5-23     activities that result in quantifiable energy savings, including:

5-24                       (A)  energy audits of buildings;

5-25                       (B)  technical assistance in reducing energy

 6-1     bills; [and]

 6-2                       (C)  [providing] training to building operators

 6-3     and fiscal officers on various energy issues such as utility bill

 6-4     analysis and energy management techniques; and

 6-5                       (D)  other technical assistance to programs for

 6-6     which funds are appropriated.

 6-7           [(e)  A public school may not receive a grant or the benefits

 6-8     of a grant under Subsection (b)(2) unless the governor approves the

 6-9     school's energy conservation plan.]

6-10           SECTION 8.  Subchapter D, Chapter 2305, Government Code, is

6-11     amended by adding Sections 2305.034 and 2305.035 to read as

6-12     follows:

6-13           Sec. 2305.034.  STATE AGENCIES PROGRAM.  The energy office is

6-14     the supervising agency for the state agencies program that may

6-15     distribute funds through Chapter 447.  Projects funded under this

6-16     section may include:

6-17                 (1)  energy manager training;

6-18                 (2)  performance contracting services described by

6-19     Section 51.927, Education Code;

6-20                 (3)  energy-efficient design assistance for new

6-21     facilities, including major renovation;

6-22                 (4)  projects for state building design standards

6-23     compliance;

6-24                 (5)  projects to create awareness of model energy codes

6-25     at the local and state levels;

 7-1                 (6)  projects to develop and maintain the state's

 7-2     utility database; and

 7-3                 (7)  other appropriate energy and information

 7-4     applications.

 7-5           Sec. 2305.035.  ALTERNATIVE FUELS PROGRAM.  (a)  The energy

 7-6     office is the supervising state agency for the alternative fuels

 7-7     program.

 7-8           (b)  The energy office shall provide funds under the program

 7-9     to promote, facilitate, and support the use of alternative fuels in

7-10     this state.

7-11           (c)  Among the projects that may be funded under this section

7-12     are:

7-13                 (1)  clean air projects;

7-14                 (2)  educational projects;

7-15                 (3)  demonstration and conversion projects; and

7-16                 (4)  technical research and training projects.

7-17           SECTION 9.  Subchapter D, Chapter 2305, Government Code, is

7-18     amended by transferring Section 2305.064 from Subchapter E,

7-19     redesignating Section 2305.064 as Section 2305.036, and amending

7-20     that section to read as follows:

7-21           Sec. 2305.036 [2305.064].  HOUSING PARTNERSHIP PROGRAM.

7-22     (a)  The energy office is the supervising state agency for [of] the

7-23     housing partnership program [shall distribute competitive grant

7-24     money under the program for residential energy conservation

7-25     projects that reduce the amount of energy consumed for space

 8-1     heating, space cooling, water heating, refrigeration, or other

 8-2     residential energy uses].

 8-3           (b)  The energy office shall promote the efficient use of

 8-4     energy in Texas residential housing through grants, partnerships,

 8-5     and loans.

 8-6           (c)  Projects funded under this program [section] may

 8-7     include:

 8-8                 (1)  projects to demonstrate [demonstration of]

 8-9     commercially available cost-effective energy-saving techniques and

8-10     technologies;

8-11                 (2)  training and technical assistance in

8-12     energy-efficient construction, design, or remodeling;

8-13                 (3)  projects to provide energy education workshops or

8-14     seminars for consumers [providing information to occupants]; [and]

8-15                 (4)  financing [incentives] for energy [energy-saving]

8-16     designs and [or] improvements, energy-efficient appliances, and

8-17     energy management systems; and

8-18                 (5)  funding of a weatherization assistance program to

8-19     benefit individuals of low or moderate income.

8-20           (d) [(c)]  The ultimate beneficiaries of the program shall be

8-21     residential energy consumers, primarily targeting low-to-moderate

8-22     income households [a grant under this section must be low-income or

8-23     moderate-income consumers].

8-24           (e)  Nonprofit organizations, community action agencies,

8-25     local governments, regional government councils, universities,

 9-1     utility companies, public housing authorities, community-based

 9-2     organizations, social service agencies, and other service-related

 9-3     organizations may serve as leads in establishing partnerships with

 9-4     the agency.

 9-5           (f) [(d)  A local government, public housing agency, or other

 9-6     public or nonprofit organization serving the housing needs of low

 9-7     and moderate income individuals may apply for a grant under this

 9-8     section.]

 9-9           [(e)]  The energy office [supervising state agency] may

9-10     require grant recipients to match  a grant in a ratio determined by

9-11     the energy office [from other sources at least the total amount of

9-12     the grants awarded under this section].

9-13           SECTION 10.  Subchapter D, Chapter 2305, Government Code, is

9-14     amended by transferring Section 2305.067 from Subchapter E,

9-15     redesignating Section 2305.067 as Section 2305.037, and amending

9-16     that section to read as follows:

9-17           Sec. 2305.037 [2305.067].  RENEWABLE [ALTERNATIVE] ENERGY

9-18     DEMONSTRATION PROGRAM.  (a)  The energy office is the supervising

9-19     state agency of the renewable [alternative] energy demonstration

9-20     program and shall distribute [competitive] grant money under the

9-21     program for demonstration projects that develop sustainable and

9-22     renewable [alternative] energy resources, including:

9-23                 (1)  photovoltaic, biomass, wind, and solar

9-24     applications; and

9-25                 (2)  other appropriate renewable and sustainable

 10-1    [alternative] energy applications.

 10-2          (b)  The energy office [governor] may require a grant

 10-3    recipient to match a grant in a ratio determined by the energy

 10-4    office [governor].

 10-5          SECTION 11.  Subchapter D, Chapter 2305, Government Code, is

 10-6    amended by transferring Section 2305.069 from Subchapter E,

 10-7    redesignating Section 2305.069 as Section 2305.038, and amending

 10-8    that section to read as follows:

 10-9          Sec. 2305.038 [2305.069].  LOCAL GOVERNMENT ENERGY PROGRAM.

10-10    (a)  The energy office is the supervisory agency for the local

10-11    government energy program to provide energy management assistance

10-12    to public schools, health care institutions, and other local

10-13    governments.

10-14          (b)  Projects funded under this section may include:

10-15                (1)  energy management training workshops that address

10-16    current energy issues and state-of-the-art building energy

10-17    technologies;

10-18                (2)  energy-efficient partnerships with school

10-19    districts or health care facilities to identify building energy

10-20    performances, set up customized utility tracking systems, establish

10-21    operation and maintenance procedures to curtail energy waste,

10-22    identify capital energy projects that will yield a high return on

10-23    investment, and locate appropriate sources of retrofit financing;

10-24                (3)  assistance in analyzing alternative methods of

10-25    financing energy-saving projects and negotiating contracts with

 11-1    power suppliers;

 11-2                (4)  technical support in designing new facilities,

 11-3    building additions, and renovations for energy-efficient operation;

 11-4    and

 11-5                (5)  colonias as defined by Section 2306.581.  [The

 11-6    supervising state agency of the local government energy program

 11-7    shall distribute competitive grant money under the program for

 11-8    energy-saving projects that benefit local governments in this

 11-9    state.]

11-10          [(b)  Proposals funded under this section may include:]

11-11                [(1)  energy audits of a local government facility;]

11-12                [(2)  traffic light synchronization;]

11-13                [(3)  fleet management; and]

11-14                [(4)  fuel-efficient transit routing.]

11-15          [(c)  The governor may require a grant recipient to match a

11-16    grant in a ratio determined by the governor.]

11-17          SECTION 12.  Subchapter D, Chapter 2305, Government Code, is

11-18    amended by transferring Section 2305.070 from Subchapter E,

11-19    redesignating Section 2305.070 as Section 2305.039, and amending

11-20    that section to read as follows:

11-21          Sec. 2305.039 [2305.070].  TRANSPORTATION ENERGY PROGRAM.

11-22    (a)  The energy office is the supervising state agency of the

11-23    transportation energy program and shall distribute funds

11-24    [competitive grant money] under the program for projects relating

11-25    to mass transit and other transportation services.

 12-1          (b)  A project may:

 12-2                (1)  assist a service provider in providing services

 12-3    such as:

 12-4                      (A)  traffic light synchronization;

 12-5                      (B)  fleet management;

 12-6                      (C)  computerized transit routing that is energy

 12-7    efficient;

 12-8                      (D)  car-care clinics;

 12-9                      (E)  vanpooling or ridesharing efforts;

12-10                      (F)  public education related to mass transit;

12-11                      (G)  driver training in energy conservation

12-12    awareness; and

12-13                      (H)  transportation services for the elderly or

12-14    persons with a disability; and

12-15                (2)  include studies to improve existing systems and

12-16    plan for future transportation systems in this state.

12-17          (c)  The energy office [governor] may require a grant

12-18    recipient to match a grant in a ratio determined by the energy

12-19    office [governor].

12-20          SECTION 13.  Sections 2305.013, 2305.040, 2305.061, 2305.062,

12-21    2305.063, 2305.066, 2305.068, 2305.071, and 2305.072, Government

12-22    Code, are repealed.

12-23          SECTION 14.  (a)  This Act takes effect September 1, 1997.

12-24          (b)  The change in law made by this Act does not apply to a

12-25    contract entered into before the effective date of this Act.

 13-1          SECTION 15.  The importance of this legislation and the

 13-2    crowded condition of the calendars in both houses create an

 13-3    emergency and an imperative public necessity that the

 13-4    constitutional rule requiring bills to be read on three several

 13-5    days in each house be suspended, and this rule is hereby suspended.