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 1-4     Code, are repealed.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]

1-24                 [(2)]  establish programs and criteria and evaluate a

 2-1     proposal in accordance with applicable federal guidelines.

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

 2-3     entity all information required under applicable federal

 2-4     guidelines.

 2-5           (e)  Criteria established under this section may apply

 2-6     generally to all programs or specifically to one or more programs.

 2-7           SECTION 4.  Sections 2305.022 and 2305.023, Government Code,

 2-8     are amended to read as follows:

 2-9           Sec. 2305.022.  USE OF ACCOUNT.  Money in the account may be

2-10     used only by the governor and the General Services Commission to

2-11     implement and operate the programs authorized by this chapter.

2-12           Sec. 2305.023.  ACCOUNT RECORDS; ENERGY OFFICE REPORT.

2-13     (a)  The comptroller shall establish records of the money in the

2-14     account that are sufficient to identify the source of each

2-15     particular amount in the account to facilitate a determination of

2-16     compliance with applicable federal guidelines relating to the use

2-17     of money derived from each particular source.

2-18           (b)  Not later than January 15 of each odd-numbered year, the

2-19     energy office shall submit to the governor and the legislature a

2-20     biennial report that shows the expenditures from the account during

2-21     the previous biennium and the amount remaining in the account on

2-22     the date of the report.

2-23           SECTION 5.  Subchapter D, Chapter 2305, Government Code, is

2-24     amended by amending the subchapter heading and adding Section

2-25     2305.031 to read as follows:

2-26            SUBCHAPTER D.  OIL OVERCHARGE [DIRECT GRANT] PROGRAMS

2-27           Sec. 2305.031.  OIL OVERCHARGE PROGRAMS.  The energy office

 3-1     shall maintain a revolving loan program for the benefit of state

 3-2     agencies, universities, and political subdivisions.  The energy

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

 3-4     in this subchapter.

 3-5           SECTION 6.  Subchapter D, Chapter 2305, Government Code, is

 3-6     amended by transferring Section 2305.065 from Subchapter E,

 3-7     redesignating Section 2305.065 as Section 2305.032, and amending

 3-8     that section to read as follows:

 3-9           Sec. 2305.032 [2305.065].  LOANSTAR REVOLVING LOAN PROGRAM.

3-10     (a)  The energy office [governor] under the loanstar revolving loan

3-11     program may approve and finance [demonstration] projects that

3-12     provide loans to eligible applicants for energy-saving capital

3-13     improvements.  Projects [(b)  The supervising state agency of the

3-14     program may distribute competitive grant money under the program to

3-15     finance energy conservation projects] approved by the energy office

3-16     should [governor for the] benefit [of]:

3-17                 (1)  a state agency or institution of higher education;

3-18                 (2)  a public school;

3-19                 (3)  a political subdivision of the state;

3-20                 (4)  [a transportation provider;]

3-21                 [(5)  an agricultural producer;]

3-22                 [(6)]  a small to medium-sized business; and

3-23                 (5)  a public or nonprofit hospital or health care

3-24     facility [(7)  an individual of low or moderate income].

3-25           (b) [(c)]  The energy office [governor] shall determine the

3-26     terms under which a loan may be made under this section and shall

3-27     set the interest rate for a loan at a low rate that the energy

 4-1     office [governor] determines is sufficient to recover the cost of

 4-2     administering the loan program.

 4-3           (c)  At least 85 percent of the loans made under this section

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

 4-5     education, public schools, or political subdivisions.

 4-6           (d)  Any borrower that [A person who] receives a loan under

 4-7     this section shall repay the principal of and interest on the loan

 4-8     from the value of energy savings that accrues as the result of the

 4-9     energy conservation measure implemented with the borrowed money.

4-10           (e)  An [A state agency or] institution that receives a loan

4-11     under this section shall repay the loan from the amount budgeted

4-12     for the agency's or institution's energy costs.  Until the loan is

4-13     repaid, the legislature may not reduce the amount budgeted for

4-14     those energy costs to reflect the value of energy savings that

4-15     accrues as a result of the energy conservation measure implemented

4-16     with the borrowed money.

4-17           (f)  The energy office shall allocate at least $95 million,

4-18     including loan commitments and cash on hand, to the loanstar

4-19     program and shall administer the funds under its control in a

4-20     manner that assures that funds available to the loanstar program

4-21     equal or exceed $95 million at all times.

4-22           SECTION 7.  Subchapter D, Chapter 2305, Government Code, is

4-23     amended by redesignating Section 2305.041 as Section 2305.033 and

4-24     amending that section to read as follows:

4-25           Sec. 2305.033 [2305.041].  STATE ENERGY [CONSERVATION]

4-26     PROGRAM.  (a)  The energy office is the supervising state agency

4-27     for the state energy [conservation] program.

 5-1           (b)  In accordance with Part B, Energy Policy and

 5-2     Conservation Act (42 U.S.C. Sec. 6321 et seq.), the energy office,

 5-3     under the program, shall[:]

 5-4                 [(1)]  distribute funds [direct grant money] for

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

 5-6                 [(2)  finance the operation of the Energy Management

 5-7     Center for Texas Schools, in accordance with Section 88A, Public

 5-8     Utility Regulatory Act (Article 1446c, Vernon's Texas Civil

 5-9     Statutes)].

5-10           (c)  A project under Subsection (b) [(b)(1)] must be

5-11     implemented primarily by institutions or private sector energy

5-12     consumers.

5-13           (d)  A proposal under Subsection (b) [(b)(1)] must:

5-14                 (1)  promote the conservation of energy; and

5-15                 (2)  improve the efficient use of energy through

5-16     activities that result in quantifiable energy savings, including:

5-17                       (A)  energy audits of buildings;

5-18                       (B)  technical assistance in reducing energy

5-19     bills; [and]

5-20                       (C)  [providing] training to building operators

5-21     and fiscal officers on various energy issues such as utility bill

5-22     analysis and energy management techniques; and

5-23                       (D)  other technical assistance to programs for

5-24     which funds are appropriated.

5-25           [(e)  A public school may not receive a grant or the benefits

5-26     of a grant under Subsection (b)(2) unless the governor approves the

5-27     school's energy conservation plan.]

 6-1           SECTION 8.  Subchapter D, Chapter 2305, Government Code, is

 6-2     amended by adding Sections 2305.034 and 2305.035 to read as

 6-3     follows:

 6-4           Sec. 2305.034.  STATE AGENCIES PROGRAM.  The energy office is

 6-5     the supervising agency for the state agencies program that may

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

 6-7     section may include:

 6-8                 (1)  energy manager training;

 6-9                 (2)  performance contracting services described by

6-10     Section 51.927, Education Code;

6-11                 (3)  energy-efficient design assistance for new

6-12     facilities, including major renovation;

6-13                 (4)  projects for state building design standards

6-14     compliance;

6-15                 (5)  projects to create awareness of model energy codes

6-16     at the local and state levels;

6-17                 (6)  projects to develop and maintain the state's

6-18     utility database; and

6-19                 (7)  other appropriate energy and information

6-20     applications.

6-21           Sec. 2305.035.  ALTERNATIVE FUELS PROGRAM.  (a)  The energy

6-22     office is the supervising state agency for the alternative fuels

6-23     program.

6-24           (b)  The energy office shall provide funds under the program

6-25     to promote, facilitate, and support the use of alternative fuels in

6-26     this state.

6-27           (c)  Among the projects that may be funded under this section

 7-1     are:

 7-2                 (1)  clean air projects;

 7-3                 (2)  educational projects;

 7-4                 (3)  demonstration and conversion projects; and

 7-5                 (4)  technical research and training projects.

 7-6           SECTION 9.  Subchapter D, Chapter 2305, Government Code, is

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

 7-8     redesignating Section 2305.064 as Section 2305.036, and amending

 7-9     that section to read as follows:

7-10           Sec. 2305.036 [2305.064].  HOUSING PARTNERSHIP PROGRAM.

7-11     (a)  The energy office is the supervising state agency for [of] the

7-12     housing partnership program [shall distribute competitive grant

7-13     money under the program for residential energy conservation

7-14     projects that reduce the amount of energy consumed for space

7-15     heating, space cooling, water heating, refrigeration, or other

7-16     residential energy uses].

7-17           (b)  The energy office shall promote the efficient use of

7-18     energy in Texas residential housing through grants, partnerships,

7-19     and loans.

7-20           (c)  Projects funded under this program [section] may

7-21     include:

7-22                 (1)  projects to demonstrate [demonstration of]

7-23     commercially available cost-effective energy-saving techniques and

7-24     technologies;

7-25                 (2)  training and technical assistance in

7-26     energy-efficient construction, design, or remodeling;

7-27                 (3)  projects to provide energy education workshops or

 8-1     seminars for consumers [providing information to occupants]; [and]

 8-2                 (4)  financing [incentives] for energy [energy-saving]

 8-3     designs and [or] improvements, energy-efficient appliances, and

 8-4     energy management systems; and

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

 8-6     benefit individuals of low or moderate income.

 8-7           (d) [(c)]  The ultimate beneficiaries of the program shall be

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

 8-9     income households [a grant under this section must be low-income or

8-10     moderate-income consumers].

8-11           (e)  Nonprofit organizations, community action agencies,

8-12     local governments, regional government councils, universities,

8-13     utility companies, public housing authorities, community-based

8-14     organizations, social service agencies, and other service-related

8-15     organizations may serve as leads in establishing partnerships with

8-16     the agency.

8-17           (f) [(d)  A local government, public housing agency, or other

8-18     public or nonprofit organization serving the housing needs of low

8-19     and moderate income individuals may apply for a grant under this

8-20     section.]

8-21           [(e)]  The energy office [supervising state agency] may

8-22     require grant recipients to match  a grant in a ratio determined by

8-23     the energy office [from other sources at least the total amount of

8-24     the grants awarded under this section].

8-25           SECTION 10.  Subchapter D, Chapter 2305, Government Code, is

8-26     amended by transferring Section 2305.067 from Subchapter E,

8-27     redesignating Section 2305.067 as Section 2305.037, and amending

 9-1     that section to read as follows:

 9-2           Sec. 2305.037 [2305.067].  RENEWABLE [ALTERNATIVE] ENERGY

 9-3     DEMONSTRATION PROGRAM.  (a)  The energy office is the supervising

 9-4     state agency of the renewable [alternative] energy demonstration

 9-5     program and shall distribute [competitive] grant money under the

 9-6     program for demonstration projects that develop sustainable and

 9-7     renewable [alternative] energy resources, including:

 9-8                 (1)  photovoltaic, biomass, wind, and solar

 9-9     applications; and

9-10                 (2)  other appropriate renewable and sustainable

9-11     [alternative] energy applications.

9-12           (b)  The energy office [governor] may require a grant

9-13     recipient to match a grant in a ratio determined by the energy

9-14     office [governor].

9-15           SECTION 11.  Subchapter D, Chapter 2305, Government Code, is

9-16     amended by transferring Section 2305.069 from Subchapter E,

9-17     redesignating Section 2305.069 as Section 2305.038, and amending

9-18     that section to read as follows:

9-19           Sec. 2305.038 [2305.069].  LOCAL GOVERNMENT ENERGY PROGRAM.

9-20     (a)  The energy office is the supervisory agency for the local

9-21     government energy program to provide energy management assistance

9-22     to public schools, health care institutions, and other local

9-23     governments.

9-24           (b)  Projects funded under this section may include:

9-25                 (1)  energy management training workshops that address

9-26     current energy issues and state-of-the-art building energy

9-27     technologies;

 10-1                (2)  energy-efficient partnerships with school

 10-2    districts or health care facilities to identify building energy

 10-3    performances, set up customized utility tracking systems, establish

 10-4    operation and maintenance procedures to curtail energy waste,

 10-5    identify capital energy projects that will yield a high return on

 10-6    investment, and locate appropriate sources of retrofit financing;

 10-7                (3)  assistance in analyzing alternative methods of

 10-8    financing energy-saving projects and negotiating contracts with

 10-9    power suppliers;

10-10                (4)  technical support in designing new facilities,

10-11    building additions, and renovations for energy-efficient operation;

10-12    and

10-13                (5)  colonias as defined by Section 2306.581.  [The

10-14    supervising state agency of the local government energy program

10-15    shall distribute competitive grant money under the program for

10-16    energy-saving projects that benefit local governments in this

10-17    state.]

10-18          [(b)  Proposals funded under this section may include:]

10-19                [(1)  energy audits of a local government facility;]

10-20                [(2)  traffic light synchronization;]

10-21                [(3)  fleet management; and]

10-22                [(4)  fuel-efficient transit routing.]

10-23          [(c)  The governor may require a grant recipient to match a

10-24    grant in a ratio determined by the governor.]

10-25          SECTION 12.  Subchapter D, Chapter 2305, Government Code, is

10-26    amended by transferring Section 2305.070 from Subchapter E,

10-27    redesignating Section 2305.070 as Section 2305.039, and amending

 11-1    that section to read as follows:

 11-2          Sec. 2305.039 [2305.070].  TRANSPORTATION ENERGY PROGRAM.

 11-3    (a)  The energy office is the supervising state agency of the

 11-4    transportation energy program and shall distribute funds

 11-5    [competitive grant money] under the program for projects relating

 11-6    to mass transit and other transportation services.

 11-7          (b)  A project may:

 11-8                (1)  assist a service provider in providing services

 11-9    such as:

11-10                      (A)  traffic light synchronization;

11-11                      (B)  fleet management;

11-12                      (C)  computerized transit routing that is energy

11-13    efficient;

11-14                      (D)  car-care clinics;

11-15                      (E)  vanpooling or ridesharing efforts;

11-16                      (F)  public education related to mass transit;

11-17                      (G)  driver training in energy conservation

11-18    awareness; and

11-19                      (H)  transportation services for the elderly or

11-20    persons with a disability; and

11-21                (2)  include studies to improve existing systems and

11-22    plan for future transportation systems in this state.

11-23          (c)  The energy office [governor] may require a grant

11-24    recipient to match a grant in a ratio determined by the energy

11-25    office [governor].

11-26          SECTION 13.  Sections 2305.013, 2305.040, 2305.061, 2305.062,

11-27    2305.063, 2305.066, 2305.068, 2305.071, and 2305.072, Government

 12-1    Code, are repealed.

 12-2          SECTION 14.  (a)  This Act takes effect September 1, 1997.

 12-3          (b)  The change in law made by this Act does not apply to a

 12-4    contract entered into before the effective date of this Act.

 12-5          SECTION 15.  The importance of this legislation and the

 12-6    crowded condition of the calendars in both houses create an

 12-7    emergency and an imperative public necessity that the

 12-8    constitutional rule requiring bills to be read on three several

 12-9    days in each house be suspended, and this rule is hereby suspended.