1-1     By:  Ratliff                                          S.B. No. 1906

 1-2           (In the Senate - Filed March 21, 1997; March 25, 1997, read

 1-3     first time and referred to Committee on Finance; April 28, 1997,

 1-4     reported adversely, with favorable Committee Substitute by the

 1-5     following vote:  Yeas 13, Nays 0; April 28, 1997, sent to printer.)

 1-6     COMMITTEE SUBSTITUTE FOR S.B. No. 1906                 By:  Ratliff

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to the administration of oil overcharge funds.

1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-11           SECTION 1.  Sections 2305.031 through 2305.039, Government

1-12     Code, are repealed.

1-13           SECTION 2.  Subdivision (3), Section 2305.002, Government

1-14     Code, is amended to read as follows:

1-15                 (3)  "Energy office" means the state energy

1-16     conservation office of the General Services Commission.

1-17           SECTION 3.  Section 2305.011, Government Code, is amended to

1-18     read as follows:

1-19           Sec. 2305.011.  ADMINISTRATION BY GENERAL SERVICES COMMISSION

1-20     [GOVERNOR] AND ENERGY OFFICE.  (a)  The energy office shall

1-21     [Subject to Section 2305.013, the governor may:]

1-22                 [(1)  finance a project under this chapter; and]

1-23                 [(2)]  oversee and monitor the administration of

1-24     programs [a program] prescribed by this chapter.

1-25           (b)  The governor and the energy office may establish direct

1-26     grant programs and competitive grant programs in addition to the

1-27     programs provided by this chapter.

1-28           (c)  The energy office [governor] shall[:]

1-29                 [(1)  determine the supervising state agency for each

1-30     competitive grant program and for each direct grant program

1-31     established by the governor; and]

1-32                 [(2)]  establish programs and criteria and evaluate a

1-33     proposal in accordance with applicable federal guidelines.

1-34           (d)  The energy office shall send to the appropriate federal

1-35     entity all information required under applicable federal

1-36     guidelines.

1-37           (e)  Criteria established under this section may apply

1-38     generally to all programs or specifically to one or more programs.

1-39           SECTION 4.  Sections 2305.022 and 2305.023, Government Code,

1-40     are amended to read as follows:

1-41           Sec. 2305.022.  USE OF ACCOUNT.  Money in the account may be

1-42     used only by the governor and the General Services Commission to

1-43     implement and operate the programs authorized by this chapter.

1-44           Sec. 2305.023.  ACCOUNT RECORDS; ENERGY OFFICE REPORT.

1-45     (a)  The comptroller shall establish records of the money in the

1-46     account that are sufficient to identify the source of each

1-47     particular amount in the account to facilitate a determination of

1-48     compliance with applicable federal guidelines relating to the use

1-49     of money derived from each particular source.

1-50           (b)  Not later than January 15 of each odd-numbered year, the

1-51     energy office shall submit to the governor and the legislature a

1-52     biennial report that shows the expenditures from the account during

1-53     the previous biennium and the amount remaining in the account on

1-54     the date of the report.

1-55           SECTION 5.  Subchapter D, Chapter 2305, Government Code, is

1-56     amended by amending the subchapter heading and adding Section

1-57     2305.031 to read as follows:

1-58            SUBCHAPTER D.  OIL OVERCHARGE [DIRECT GRANT] PROGRAMS

1-59           Sec. 2305.031.  OIL OVERCHARGE PROGRAMS.  The energy office

1-60     shall maintain a revolving loan program for the benefit of state

1-61     agencies, universities, and political subdivisions.  The energy

1-62     office shall use oil overcharge funds for the programs and purposes

1-63     in this subchapter.

1-64           SECTION 6.  Subchapter D, Chapter 2305, Government Code, is

 2-1     amended by transferring Section 2305.065 from Subchapter E,

 2-2     redesignating Section 2305.065 as Section 2305.032, and amending

 2-3     that section to read as follows:

 2-4           Sec. 2305.032 [2305.065].  LOANSTAR REVOLVING LOAN PROGRAM.

 2-5     (a)  The energy office [governor] under the loanstar revolving loan

 2-6     program may approve and finance [demonstration] projects that

 2-7     provide loans to eligible applicants for energy-saving capital

 2-8     improvements.  Projects [(b)  The supervising state agency of the

 2-9     program may distribute competitive grant money under the program to

2-10     finance energy conservation projects] approved by the energy office

2-11     should [governor for the] benefit [of]:

2-12                 (1)  a state agency or institution of higher education;

2-13                 (2)  a public school;

2-14                 (3)  a political subdivision of the state;

2-15                 (4)  [a transportation provider;]

2-16                 [(5)  an agricultural producer;]

2-17                 [(6)]  a small to medium-sized business; and

2-18                 (5)  a public or nonprofit hospital or health care

2-19     facility [(7)  an individual of low or moderate income].

2-20           (b) [(c)]  The energy office [governor] shall determine the

2-21     terms under which a loan may be made under this section and shall

2-22     set the interest rate for a loan at a low rate that the energy

2-23     office [governor] determines is sufficient to recover the cost of

2-24     administering the loan program.

2-25           (c)  At least 85 percent of the loans made under this section

2-26     shall be awarded to state agencies, institutions of higher

2-27     education, public schools, or political subdivisions.

2-28           (d)  Any borrower that [A person who] receives a loan under

2-29     this section shall repay the principal of and interest on the loan

2-30     from the value of energy savings that accrues as the result of the

2-31     energy conservation measure implemented with the borrowed money.

2-32           (e)  An [A state agency or] institution that receives a loan

2-33     under this section shall repay the loan from the amount budgeted

2-34     for the agency's or institution's energy costs.  Until the loan is

2-35     repaid, the legislature may not reduce the amount budgeted for

2-36     those energy costs to reflect the value of energy savings that

2-37     accrues as a result of the energy conservation measure implemented

2-38     with the borrowed money.

2-39           (f)  The energy office shall allocate at least $95 million,

2-40     including loan commitments and cash on hand, to the loanstar

2-41     program and shall administer the funds under its control in a

2-42     manner that assures that funds available to the loanstar program

2-43     equal or exceed $95 million at all times.

2-44           SECTION 7.  Subchapter D, Chapter 2305, Government Code, is

2-45     amended by redesignating Section 2305.041, as Section 2305.033 and

2-46     amending that section to read as follows:

2-47           Sec. 2305.033 [2305.041].  STATE ENERGY [CONSERVATION]

2-48     PROGRAM.  (a)  The energy office is the supervising state agency

2-49     for the state energy [conservation] program.

2-50           (b)  In accordance with Part B, Energy Policy and

2-51     Conservation Act (42 U.S.C. Sec. 6321 et seq.), the energy office,

2-52     under the program, shall[:]

2-53                 [(1)]  distribute funds [direct grant money] for

2-54     projects that save measurable quantities of energy[; and]

2-55                 [(2)  finance the operation of the Energy Management

2-56     Center for Texas Schools, in accordance with Section 88A, Public

2-57     Utility Regulatory Act (Article 1446c, Vernon's Texas Civil

2-58     Statutes)].

2-59           (c)  A project under Subsection (b) [(b)(1)] must be

2-60     implemented primarily by institutions or private sector energy

2-61     consumers.

2-62           (d)  A proposal under Subsection (b) [(b)(1)] must:

2-63                 (1)  promote the conservation of energy; and

2-64                 (2)  improve the efficient use of energy through

2-65     activities that result in quantifiable energy savings, including:

2-66                       (A)  energy audits of buildings;

2-67                       (B)  technical assistance in reducing energy

2-68     bills; [and]

2-69                       (C)  [providing] training to building operators

 3-1     and fiscal officers on various energy issues such as utility bill

 3-2     analysis and energy management techniques; and

 3-3                       (D)  other technical assistance to programs for

 3-4     which funds are appropriated.

 3-5           [(e)  A public school may not receive a grant or the benefits

 3-6     of a grant under Subsection (b)(2) unless the governor approves the

 3-7     school's energy conservation plan.]

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

 3-9     amended by adding Sections 2305.034 and 2305.035 to read as

3-10     follows:

3-11           Sec. 2305.034.  STATE AGENCIES PROGRAM.  The energy office is

3-12     the supervising agency for the state agencies program that may

3-13     distribute funds through Chapter 447.  Projects funded under this

3-14     section may include:

3-15                 (1)  energy manager training;

3-16                 (2)  performance contracting services described by

3-17     Section 51.927, Education Code;

3-18                 (3)  energy-efficient design assistance for new

3-19     facilities, including major renovation;

3-20                 (4)  projects for state building design standards

3-21     compliance;

3-22                 (5)  projects to create awareness of model energy codes

3-23     at the local and state levels;

3-24                 (6)  projects to develop and maintain the state's

3-25     utility database; and

3-26                 (7)  other appropriate energy and information

3-27     applications.

3-28           Sec. 2305.035.  ALTERNATIVE FUELS PROGRAM.  (a)  The energy

3-29     office is the supervising state agency for the alternative fuels

3-30     program.

3-31           (b)  The energy office shall provide funds under the program

3-32     to promote, facilitate, and support the use of alternative fuels in

3-33     this state.

3-34           (c)  Among the projects that may be funded under this section

3-35     are:

3-36                 (1)  clean air projects;

3-37                 (2)  educational projects;

3-38                 (3)  demonstration and conversion projects; and

3-39                 (4)  technical research and training projects.

3-40           SECTION 9.  Subchapter D, Chapter 2305, Government Code, is

3-41     amended by transferring Section 2305.064 from Subchapter E,

3-42     redesignating Section 2305.064 as Section 2305.036, and amending

3-43     that section to read as follows:

3-44           Sec. 2305.036 [2305.064].  HOUSING PARTNERSHIP PROGRAM.

3-45     (a)  The energy office is the supervising state agency for [of] the

3-46     housing partnership program [shall distribute competitive grant

3-47     money under the program for residential energy conservation

3-48     projects that reduce the amount of energy consumed for space

3-49     heating, space cooling, water heating, refrigeration, or other

3-50     residential energy uses].

3-51           (b)  The energy office shall promote the efficient use of

3-52     energy in Texas residential housing through grants, partnerships,

3-53     and loans.

3-54           (c)  Projects funded under this program [section] may

3-55     include:

3-56                 (1)  projects to demonstrate [demonstration of]

3-57     commercially available cost-effective energy-saving techniques and

3-58     technologies;

3-59                 (2)  training and technical assistance in

3-60     energy-efficient construction, design, or remodeling;

3-61                 (3)  projects to provide energy education workshops or

3-62     seminars for consumers [providing information to occupants]; [and]

3-63                 (4)  financing [incentives] for energy [energy-saving]

3-64     designs and [or] improvements, energy-efficient appliances, and

3-65     energy management systems; and

3-66                 (5)  funding of a weatherization assistance program to

3-67     benefit individuals of low or moderate income.

3-68           (d) [(c)]  The ultimate beneficiaries of the program shall be

3-69     residential energy consumers, primarily targeting low-to-moderate

 4-1     income households [a grant under this section must be low-income or

 4-2     moderate-income consumers].

 4-3           (e)  Nonprofit organizations, community action agencies,

 4-4     local governments, regional government councils, universities,

 4-5     utility companies, public housing authorities, community-based

 4-6     organizations, social service agencies, and other service-related

 4-7     organizations may serve as leads in establishing partnerships with

 4-8     the agency.

 4-9           (f) [(d)  A local government, public housing agency, or other

4-10     public or nonprofit organization serving the housing needs of low

4-11     and moderate income individuals may apply for a grant under this

4-12     section.]

4-13           [(e)]  The energy office [supervising state agency] may

4-14     require grant recipients to match  a grant in a ratio determined by

4-15     the energy office [from other sources at least the total amount of

4-16     the grants awarded under this section].

4-17           SECTION 10.  Subchapter D, Chapter 2305, Government Code, is

4-18     amended by transferring Section 2305.067 from Subchapter E,

4-19     redesignating Section 2305.067 as Section 2305.037, and amending

4-20     that section to read as follows:

4-21           Sec. 2305.037 [2305.067].  RENEWABLE [ALTERNATIVE] ENERGY

4-22     DEMONSTRATION PROGRAM.  (a)  The energy office is the supervising

4-23     state agency of the renewable [alternative] energy demonstration

4-24     program and shall distribute [competitive] grant money under the

4-25     program for demonstration projects that develop sustainable and

4-26     renewable [alternative] energy resources, including:

4-27                 (1)  photovoltaic, biomass, wind, and solar

4-28     applications; and

4-29                 (2)  other appropriate renewable and sustainable

4-30     [alternative] energy applications.

4-31           (b)  The energy office [governor] may require a grant

4-32     recipient to match a grant in a ratio determined by the energy

4-33     office [governor].

4-34           SECTION 11.  Subchapter D, Chapter 2305, Government Code, is

4-35     amended by transferring Section 2305.069 from Subchapter E,

4-36     redesignating Section 2305.069 as Section 2305.038, and amending

4-37     that section to read as follows:

4-38           Sec. 2305.038 [2305.069].  LOCAL GOVERNMENT ENERGY PROGRAM.

4-39     (a)  The energy office is the supervisory agency for the local

4-40     government energy program to provide energy management assistance

4-41     to public schools, health care institutions, and other local

4-42     governments.

4-43           (b)  Projects funded under this section may include:

4-44                 (1)  energy management training workshops that address

4-45     current energy issues and state-of-the-art building energy

4-46     technologies;

4-47                 (2)  energy-efficient partnerships with school

4-48     districts or health care facilities to identify building energy

4-49     performances, set up customized utility tracking systems, establish

4-50     operation and maintenance procedures to curtail energy waste,

4-51     identify capital energy projects that will yield a high return on

4-52     investment, and locate appropriate sources of retrofit financing;

4-53                 (3)  assistance in analyzing alternative methods of

4-54     financing energy-saving projects and negotiating contracts with

4-55     power suppliers;

4-56                 (4)  technical support in designing new facilities,

4-57     building additions, and renovations for energy-efficient operation;

4-58     and

4-59                 (5)  colonias as defined by Section 2306.581.  [The

4-60     supervising state agency of the local government energy program

4-61     shall distribute competitive grant money under the program for

4-62     energy-saving projects that benefit local governments in this

4-63     state.]

4-64           [(b)  Proposals funded under this section may include:]

4-65                 [(1)  energy audits of a local government facility;]

4-66                 [(2)  traffic light synchronization;]

4-67                 [(3)  fleet management; and]

4-68                 [(4)  fuel-efficient transit routing.]

4-69           [(c)  The governor may require a grant recipient to match a

 5-1     grant in a ratio determined by the governor.]

 5-2           SECTION 12.  Subchapter D, Chapter 2305, Government Code, is

 5-3     amended by transferring Section 2305.070 from Subchapter E,

 5-4     redesignating Section 2305.070 as Section 2305.039, and amending

 5-5     that section to read as follows:

 5-6           Sec. 2305.039 [2305.070].  TRANSPORTATION ENERGY PROGRAM.

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

 5-8     transportation energy program and shall distribute funds

 5-9     [competitive grant money] under the program for projects relating

5-10     to mass transit and other transportation services.

5-11           (b)  A project may:

5-12                 (1)  assist a service provider in providing services

5-13     such as:

5-14                       (A)  traffic light synchronization;

5-15                       (B)  fleet management;

5-16                       (C)  computerized transit routing that is energy

5-17     efficient;

5-18                       (D)  car-care clinics;

5-19                       (E)  vanpooling or ridesharing efforts;

5-20                       (F)  public education related to mass transit;

5-21                       (G)  driver training in energy conservation

5-22     awareness; and

5-23                       (H)  transportation services for the elderly or

5-24     persons with a disability; and

5-25                 (2)  include studies to improve existing systems and

5-26     plan for future transportation systems in this state.

5-27           (c)  The energy office [governor] may require a grant

5-28     recipient to match a grant in a ratio determined by the energy

5-29     office [governor].

5-30           SECTION 13.  Sections 2305.013, 2305.040, 2305.061, 2305.062,

5-31     2305.063, 2305.066, 2305.068, 2305.071, and 2305.072, Government

5-32     Code, are repealed.

5-33           SECTION 14.  (a)  This Act takes effect September 1, 1997.

5-34           (b)  The change in law made by this Act does not apply to a

5-35     contract entered into before the effective date of this Act.

5-36           SECTION 15.  The importance of this legislation and the

5-37     crowded condition of the calendars in both houses create an

5-38     emergency and an imperative public necessity that the

5-39     constitutional rule requiring bills to be read on three several

5-40     days in each house be suspended, and this rule is hereby suspended.

5-41                                  * * * * *