By:  Ratliff                                          S.B. No. 1906

         97S0889/1                           

                                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 1-4     Code, are repealed.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 will [Subject

1-13     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 a

1-16     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 utilize oil overcharge funds for the programs and

 3-7     purposes 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 and

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

3-17           [(b)  The supervising state agency of the program may

3-18     distribute competitive grant money under the program to finance

3-19     energy conservation projects] approved by the energy office should

3-20     [governor for the] benefit [of]:

3-21                 (1)  a state agency or institution of higher education;

3-22                 (2)  a public school;

3-23                 (3)  a political subdivision of the state;

3-24                 (4)  a transportation provider;

3-25                 (5)  an agricultural producer;

 4-1                 (6)  a small business; [and]

 4-2                 (7)  a small to medium-sized commercial and industrial

 4-3     business as defined by the standard industrial code; and

 4-4                 (8)  a hospital or a health care facility [an

 4-5     individual of low or moderate income].

 4-6           (b) [(c)]  The energy office [governor] shall determine the

 4-7     terms under which a loan may be made under this section and shall

 4-8     set the interest rate for a loan at a low rate that the energy

 4-9     office [governor] determines is sufficient to recover the cost of

4-10     administering the loan program.

4-11           (c)  At least 85 percent of the loans made under this section

4-12     shall be awarded to state agencies, institutions of higher

4-13     education, public schools, or political subdivisions.

4-14           (d)  Any borrower that [A person who] receives a loan under

4-15     this section shall repay the principal of and interest on the loan

4-16     from the value of energy savings that accrues as the result of the

4-17     energy conservation measure implemented with the borrowed money.

4-18           (e)  An [A state agency or] institution that receives a loan

4-19     under this section shall repay the loan from the amount budgeted

4-20     for the agency's or institution's energy costs.  Until the loan is

4-21     repaid, the legislature may not reduce the amount budgeted for

4-22     those energy costs to reflect the value of energy savings that

4-23     accrues as a result of the energy conservation measure implemented

4-24     with the borrowed money.

4-25           (f)  It is hereby established as legislative policy that the

 5-1     minimum size of the loanstar program shall be $95 million, which

 5-2     shall include loan commitments and cash on hand.

 5-3           SECTION 7.  Subchapter D, Chapter 2305, Government Code, is

 5-4     amended by redesignating Section 2305.041 as Section 2305.033 and

 5-5     amending that section to read as follows:

 5-6           Sec. 2305.033 [2305.041].  STATE ENERGY [CONSERVATION]

 5-7     PROGRAM.  (a)  The energy office is the supervising state agency

 5-8     for the state energy [conservation] program.

 5-9           (b)  In accordance with Part B, Energy Policy and

5-10     Conservation Act (42 U.S.C. Sec. 6321 et seq.), the energy office,

5-11     under the program, shall[:]

5-12                 [(1)]  distribute funds [direct grant money] for

5-13     projects that save measurable quantities of energy[; and]

5-14                 [(2)  finance the operation of the Energy Management

5-15     Center for Texas Schools, in accordance with Section 88A, Public

5-16     Utility Regulatory Act (Article 1446c, Vernon's Texas Civil

5-17     Statutes)].

5-18           (c)  A project under Subsection (b)(1) must be implemented

5-19     primarily by institutions or private sector energy consumers.

5-20           (d)  A proposal under Subsection (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 and

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

 6-4     analysis and energy management techniques; and

 6-5                       (D)  provide technical assistance to appropriated

 6-6     programs.

 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 pursuant to Chapter 447, Government Code.

6-16     Projects funded under this section may include:

6-17                 (1)  energy manager training;

6-18                 (2)  performance contracting services as outlined 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)  state building design standards compliance;

6-23                 (5)  creating awareness of model energy codes at the

6-24     local and state levels;

6-25                 (6)  development and maintenance of state's utility

 7-1     database; and

 7-2                 (7)  other appropriate energy and information

 7-3     applications.

 7-4           Sec. 2305.035.  ALTERNATIVE FUELS PROGRAM.  (a)  The energy

 7-5     office is the supervising state agency for the alternative fuels

 7-6     program.

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

 7-8     to promote, facilitate, and support the use of alternative fuels in

 7-9     the State of Texas.

7-10           (c)  Projects may include but are not limited to:

7-11                 (1)  clean air projects;

7-12                 (2)  educational projects;

7-13                 (3)  demonstration and conversion projects; and

7-14                 (4)  technical research and training projects.

7-15           SECTION 9.  Subchapter D, Chapter 2305, Government Code, is

7-16     amended by transferring Section 2305.064 from Subchapter E and

7-17     redesignating Section 2305.064 as Section 2305.036 and amending

7-18     that section to read as follows:

7-19           Sec. 2305.036 [2305.064].  HOUSING PARTNERSHIP PROGRAM.

7-20     (a)  The energy office is the supervising state agency for [of] the

7-21     housing partnership program [shall distribute competitive grant

7-22     money under the program for residential energy conservation

7-23     projects that reduce the amount of energy consumed for space

7-24     heating, space cooling, water heating, refrigeration, or other

7-25     residential energy uses].

 8-1           (b)  The energy office shall promote the efficient use of

 8-2     energy in Texas residential housing through grants, partnerships,

 8-3     and loans.

 8-4           (c)  Projects funded under this program [section] may

 8-5     include:

 8-6                 (1)  demonstration of commercially available

 8-7     cost-effective energy-saving techniques and technologies;

 8-8                 (2)  training and technical assistance in

 8-9     energy-efficient construction, design, or remodeling;

8-10                 (3)  providing energy education workshops or seminars

8-11     for consumers [information to occupants]; and

8-12                 (4)  financing [incentives] for energy [energy-saving]

8-13     designs and [or] improvements, energy-efficient appliances, and

8-14     energy management systems.

8-15           (d) [(c)]  The ultimate beneficiaries of the program shall be

8-16     residential energy consumers, primarily targeting low-to-moderate

8-17     income households [a grant under this section must be low-income or

8-18     moderate-income consumers].

8-19           (e)  Nonprofit organizations, community action agencies,

8-20     local governments, regional government councils, universities,

8-21     utility companies, public housing authorities, community-based

8-22     organizations, social service agencies, and other service-related

8-23     organizations may serve as leads in establishing partnerships with

8-24     the agency.

8-25           (f) [(d)  A local government, public housing agency, or other

 9-1     public or nonprofit organization serving the housing needs of low

 9-2     and moderate income individuals may apply for a grant under this

 9-3     section.]

 9-4           [(e)]  The energy office [supervising state agency] may

 9-5     require grant recipients to match  a grant in a ratio determined by

 9-6     the energy office [from other sources at least the total amount of

 9-7     the grants awarded under this section].

 9-8           SECTION 10.  Subchapter D, Chapter 2305, Government Code, is

 9-9     amended by transferring Section 2305.067 from Subchapter E and

9-10     redesignating Section 2305.067 as Section 2305.037 and amending

9-11     that section to read as follows:

9-12           Sec. 2305.037 [2305.067].  RENEWABLE [ALTERNATIVE] ENERGY

9-13     DEMONSTRATION PROGRAM.  (a)  The energy office is the supervising

9-14     state agency of the renewable [alternative] energy demonstration

9-15     program and shall distribute [competitive] grant money under the

9-16     program for demonstration projects that develop sustainable and

9-17     renewable [alternative] energy resources, including:

9-18                 (1)  photovoltaic, biomass, wind, and solar

9-19     applications; and

9-20                 (2)  other appropriate renewable and sustainable

9-21     [alternative] energy applications.

9-22           (b)  The energy office [governor] may require a grant

9-23     recipient to match a grant in a ratio determined by the energy

9-24     office [governor].

9-25           SECTION 11.  Subchapter D, Chapter 2305, Government Code, is

 10-1    amended by transferring Section 2305.069 from Subchapter E and

 10-2    redesignating Section 2305.069 as Section 2305.038 and amending

 10-3    that section to read as follows:

 10-4          Sec. 2305.038 [2305.069].  LOCAL GOVERNMENT ENERGY PROGRAM.

 10-5    (a)  The energy office is the supervisory agency for the local

 10-6    government energy program, which provides energy management

 10-7    assistance to local governments, including but not limited to

 10-8    public schools and health care institutions.

 10-9          (b)  Projects funded under this section may include:

10-10                (1)  energy management training workshops which address

10-11    current energy issues and state-of-the-art building energy

10-12    technologies;

10-13                (2)  energy-efficient partnerships with school

10-14    districts or health care facilities to identify building energy

10-15    performances, set up customized utility tracking systems, establish

10-16    operation and maintenance procedures to curtail energy waste,

10-17    identify capital energy projects which will yield a high return on

10-18    investment, and locate appropriate sources of retrofit financing;

10-19                (3)  assistance in analyzing alternative methods of

10-20    financing energy-saving projects and negotiating contracts with

10-21    power suppliers;

10-22                (4)  technical support in designing new facilities,

10-23    building additions, and renovations for energy-efficient operation;

10-24    and

10-25                (5)  colonias as defined by Section 2306.581.  [The

 11-1    supervising state agency of the local government energy program

 11-2    shall distribute competitive grant money under the program for

 11-3    energy-saving projects that benefit local governments in this

 11-4    state.]

 11-5          [(b)  Proposals funded under this section may include:]

 11-6                [(1)  energy audits of a local government facility;]

 11-7                [(2)  traffic light synchronization;]

 11-8                [(3)  fleet management; and]

 11-9                [(4)  fuel-efficient transit routing.]

11-10          [(c)  The governor may require a grant recipient to match a

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

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

11-13    amended by transferring Section 2305.070 from Subchapter E and

11-14    redesignating Section 2305.070 as Section 2305.039 and amending

11-15    that section to read as follows:

11-16          Sec. 2305.039 [2305.070].  TRANSPORTATION ENERGY PROGRAM.

11-17    (a)  The energy office is the supervising state agency of the

11-18    transportation energy program and shall distribute funds

11-19    [competitive grant money] under the program for projects relating

11-20    to mass transit and other transportation services.

11-21          (b)  A project may:

11-22                (1)  assist a service provider in providing services

11-23    such as:

11-24                      (A)  traffic light synchronization;

11-25                      (B)  fleet management;

 12-1                      (C)  computerized transit routing that is energy

 12-2    efficient;

 12-3                      (D)  car-care clinics;

 12-4                      (E)  vanpooling or ridesharing efforts;

 12-5                      (F)  public education related to mass transit;

 12-6                      (G)  driver training in energy conservation

 12-7    awareness; and

 12-8                      (H)  transportation services for the elderly or

 12-9    persons with a disability; and

12-10                (2)  include studies to improve existing systems and

12-11    plan for future transportation systems in this state.

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

12-13    recipient to match a grant in a ratio determined by the energy

12-14    office [governor].

12-15          SECTION 13.  Sections 2305.013, 2305.040, 2305.061, 2305.062,

12-16    2305.063, 2305.066, 2305.068, 2305.071, and 2305.072, Government

12-17    Code, are repealed.

12-18          SECTION 14.  This Act takes effect September 1, 1997.

12-19          SECTION 15.  The importance of this legislation and the

12-20    crowded condition of the calendars in both houses create an

12-21    emergency and an imperative public necessity that the

12-22    constitutional rule requiring bills to be read on three several

12-23    days in each house be suspended, and this rule is hereby suspended.