HBA-SEP C.S.H.B. 2278 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2278
By: Carter
Energy Resources
4/9/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The 76th Legislature placed the state energy conservation office (energy
office) under the authority of the comptroller of public accounts
(comptroller) who then created an advisory committee to make the energy
office's programs more responsive and relevant.  The committee found that
although state agencies are authorized to enter into energy efficiency
performance contracts, not one agency has done so.  According to the energy
office, agencies could save an estimated minimum of $100,000 a day by
adopting existing alternatives such as performance contracting.  The energy
office drafted a mandatory energy efficiency rule for agencies, however,
the comptroller's general council determined that the agency's statutory
authority should be clarified before the agency could issue such a rule.
C.S.H.B. 2278 consolidates the energy management center and the energy
office, transfers all functions and activities performed by the General
Services Commission that related to energy conservation to the office of
the comptroller, and grants the comptroller the rulemaking authority
necessary to administer the state energy conservation office programs. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the state energy conservation office in
SECTION 1 (Section  447.002, Government Code) and to the comptroller of
public accounts in SECTION 4 (Section 2305.011, Government Code) of this
bill. 

ANALYSIS

C.S.H.B. 2278 amends the Government Code to consolidate the energy
management center and the state energy conservation office (energy office)
and to transfer all functions and activities performed by the General
Services Commission (GSC) related to energy conservation to the office of
the comptroller of public accounts (comptroller).  All money, contracts,
leases, rights, and obligations of GSC related to energy conservation are
also transferred to the comptroller (SECTION 6).  The bill authorizes the
comptroller to adopt rules as necessary to administer the energy office
programs (Sec. 2305.011).  The bill requires the energy office to adopt
rules requiring a state agency to implement an energy conservation measure
or program in accordance with energy management planning if the measure or
program meets the eligibility requirements of provisions regarding energy
conservation measures and funding is available (Sec. 447.002).  The bill
specifies that the energy office is required to semiannually  obtain, from
each state agency, information relating to the progress each agency has
made in reducing energy costs through adherence to energy management
planning and to report the information to the Legislative Budget Board
(Sec. 447.006).  The bill removes provisions regarding energy saving
devises or measures.  The office is required to provide energy management
planning assistance to state agencies in meeting the requirements of
provisions regarding energy conservation programs and measures including
assistance in scheduling and assigning priorities to implementation plans
to ensure that state agencies adopt qualified cost-effective efficiency
programs and measures for all state facilities by September 1, 2006 (Sec.
447.010).  

EFFECTIVE DATE

September 1, 2001.

 COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 2278 modifies the original by requiring the state energy
conservation office (energy office) to adopt rules requiring a state agency
to implement an energy conservation  measure or program (measure) and
specifying that a measure, before implementation, must meet eligibility
requirements for provisions regarding energy conservation measures
(447.002).  The substitute removes provisions regarding energy saving
devices or measures.  The substitute requires the energy office to provide
energy management planning assistance to state agencies in meeting the
requirements of provisions regarding energy conservation programs and
measures (Sec. 447.010).