1-1 AN ACT
1-2 relating to energy efficiency programs developed by the energy
1-3 office.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 2305, Government Code, is amended by
1-6 adding Subchapter F to read as follows:
1-7 SUBCHAPTER F. TEXAS ENERGY ASSISTANCE LOAN PROGRAM
1-8 Sec. 2305.101. DEFINITIONS. In this subchapter:
1-9 (1) "Cost-effective" means, with respect to an energy
1-10 efficiency improvement to residential housing or a piece of
1-11 agricultural equipment, an improvement in which the total cost of
1-12 the improvement, including any maintenance and repair expenses, is
1-13 less than the value of energy saved over the useful life of the
1-14 improvement.
1-15 (2) "Energy efficiency improvement" means:
1-16 (A) a durable and serviceable modification to
1-17 the design of a structure or piece of agricultural equipment that
1-18 results in a measurable decrease in energy consumption by the
1-19 structure or piece of equipment; or
1-20 (B) other energy conservation measures that may
1-21 be established by the energy office by rule.
1-22 (3) "Energy efficiency improvement loan" means a loan
1-23 that provides financing incentives for a person who uses the loan
1-24 to make an energy efficiency improvement to an existing structure
2-1 or piece of agricultural equipment.
2-2 (4) "Energy efficiency mortgage" means a mortgage that
2-3 provides financing incentives:
2-4 (A) for the purchase of energy-efficient
2-5 residential housing; or
2-6 (B) for energy efficiency improvements to
2-7 existing residential housing by incorporating the cost of the
2-8 improvements into the mortgage.
2-9 (5) "Program" means the Texas Energy Assistance Loan
2-10 Program.
2-11 (6) "Residential housing" means a structure on a
2-12 residential property with one or more dwelling units.
2-13 Sec. 2305.102. TEXAS ENERGY ASSISTANCE LOAN PROGRAM. (a)
2-14 The energy office shall implement and maintain the Texas Energy
2-15 Assistance Loan Program.
2-16 (b) Under the program, the energy office shall:
2-17 (1) coordinate the delivery and marketing of mortgage
2-18 incentives to purchase energy-efficient residential housing and to
2-19 improve the energy efficiency of existing residential housing;
2-20 (2) provide training and technical assistance for:
2-21 (A) persons conducting energy efficiency
2-22 ratings; and
2-23 (B) the energy-efficient construction, design,
2-24 and remodeling of residential housing;
2-25 (3) provide educational workshops or seminars on the
2-26 benefits of the program for:
2-27 (A) stakeholders in the program;
3-1 (B) consumers of residential housing; and
3-2 (C) consumers of agricultural equipment;
3-3 (4) develop and purchase assessment tools, including
3-4 software and monitoring equipment;
3-5 (5) develop a database to track energy efficiency
3-6 improvements in the state;
3-7 (6) provide follow-up evaluation of homeowner
3-8 responsiveness to, understanding of, and satisfaction with energy
3-9 efficiency improvements;
3-10 (7) conduct market penetration studies; and
3-11 (8) implement:
3-12 (A) projects as required by this subchapter; and
3-13 (B) other initiatives that the energy office may
3-14 develop to promote energy-efficient residential housing.
3-15 (c) The energy office shall establish a system for
3-16 monitoring and evaluating the program.
3-17 (d) The energy office shall consult with other appropriate
3-18 state agencies to ensure coordination and avoid duplication of
3-19 activities authorized under this subchapter.
3-20 (e) The energy office may adopt rules necessary to implement
3-21 this subchapter.
3-22 Sec. 2305.103. FUNDS. (a) The energy office shall fund
3-23 projects and initiatives under this subchapter from funds available
3-24 under this chapter.
3-25 (b) In addition to the use of funds available under this
3-26 chapter, the energy office shall maximize procurement of funds from
3-27 alternative sources, including:
4-1 (1) program grants available through federal agencies;
4-2 (2) federal legislative appropriations available to
4-3 state agency programs that promote energy efficiency in residential
4-4 housing;
4-5 (3) financial incentives provided through other state
4-6 agencies; and
4-7 (4) financial incentives provided by private and
4-8 nonprofit organizations and agencies.
4-9 Sec. 2305.104. VOLUNTARY PARTICIPATION. The energy office
4-10 shall promote voluntary participation in the program from:
4-11 (1) private lenders;
4-12 (2) builders and residential contractors;
4-13 (3) persons who rebuild, redevelop, repair, retrofit,
4-14 or renovate structures to restore the structures' usefulness as
4-15 residential housing;
4-16 (4) persons who rebuild, redevelop, repair, retrofit,
4-17 or renovate agricultural equipment;
4-18 (5) consumers of residential housing;
4-19 (6) owners of single-family and multifamily
4-20 residential housing;
4-21 (7) other participants in the residential housing
4-22 industry; and
4-23 (8) owners of agricultural equipment.
4-24 Sec. 2305.105. VOLUNTARY PARTICIPATION GUIDELINES. (a) The
4-25 energy office shall annually, by rule, issue voluntary
4-26 participation guidelines for energy-efficient residential
4-27 construction that may be used by state and local governments,
5-1 utilities, builders, real estate agents, lenders, agencies in
5-2 mortgage markets, and other persons as determined by the energy
5-3 office, to enable and encourage the assignment of uniform energy
5-4 efficiency ratings to residential housing and agricultural
5-5 equipment.
5-6 (b) The voluntary participation guidelines issued under
5-7 Subsection (a) must:
5-8 (1) establish baseline standards that are consistent
5-9 with the International Energy Conservation Code for residential
5-10 buildings;
5-11 (2) use a scaled rating to determine the energy
5-12 efficiency rating achieved by making energy efficiency
5-13 improvements;
5-14 (3) establish protocols and procedures for:
5-15 (A) certification of the technical accuracy of
5-16 energy efficiency rating tools used to determine the energy
5-17 efficiency of residential housing;
5-18 (B) training of personnel conducting energy
5-19 efficiency ratings;
5-20 (C) data collection and reporting;
5-21 (D) quality control; and
5-22 (E) monitoring and evaluation;
5-23 (4) encourage consistency with the programs of federal
5-24 or other public departments and agencies, as well as private
5-25 organizations that sponsor energy efficiency mortgages and promote
5-26 energy efficiency in residential housing;
5-27 (5) set up a structure for the rating system that
6-1 addresses local climate conditions and construction practices,
6-2 solar energy collected on-site, and similar conditions that vary
6-3 across the geographic regions of the state; and
6-4 (6) establish procedures to ensure that residential
6-5 buildings can receive an energy efficiency rating at the time of
6-6 sale and that the rating is communicated to potential buyers.
6-7 Sec. 2305.106. ADVISORY TASK FORCE. In developing the
6-8 guidelines and procedures for the program, the energy office shall
6-9 consult with an advisory task force composed of state and local
6-10 agencies involved in residential housing programs, builders,
6-11 building code organizations, energy efficiency organizations,
6-12 utilities, real estate agents, lenders, agencies in mortgage
6-13 markets, and representatives from any other appropriate industries
6-14 or other interested members of the public, as determined by the
6-15 energy office.
6-16 Sec. 2305.107. HOMEBUYER MORTGAGE PROJECT. The energy
6-17 office shall develop and implement a project design for delivering
6-18 energy efficiency mortgage loans to consumers who purchase
6-19 energy-efficient residential housing. The design must:
6-20 (1) establish procedures for the certification of the
6-21 energy efficiency of a residential structure, using the guidelines
6-22 established under Section 2305.105, for a person considering the
6-23 purchase of the structure with an energy efficiency mortgage;
6-24 (2) identify a pool of lenders to originate the loans;
6-25 (3) identify the appropriate secondary market where
6-26 the energy efficiency mortgage can be transferred or sold, if
6-27 necessary, to buy down the rate of the loan;
7-1 (4) coordinate loan counseling services; and
7-2 (5) specify a mechanism for quality control.
7-3 Sec. 2305.108. ENERGY EFFICIENCY IMPROVEMENT PROJECT. The
7-4 energy office shall develop and implement a project design for
7-5 delivering energy efficiency improvement loans to property owners
7-6 who make cost-effective energy efficiency improvements to existing
7-7 residential housing. The design must:
7-8 (1) identify a pool of lenders to originate the loans;
7-9 (2) require a preloan audit to identify cost-effective
7-10 improvements that will improve the energy efficiency of the
7-11 structure;
7-12 (3) identify a pool of auditors trained to perform
7-13 energy efficiency inspections of residential housing;
7-14 (4) coordinate the loan application process with
7-15 auditor and contractor referral services;
7-16 (5) specify that the auditor shall provide the
7-17 property owner with a report before an energy efficiency
7-18 improvement is made, including:
7-19 (A) baseline building standards for the
7-20 structure before the energy efficiency improvements;
7-21 (B) an itemized list of recommendations for
7-22 cost-effective improvements that would improve the energy
7-23 efficiency of the structure;
7-24 (C) the energy savings resulting from each of
7-25 the improvements;
7-26 (D) the environmental benefits of the
7-27 improvements;
8-1 (E) the costs of the recommended improvements;
8-2 and
8-3 (F) a rating reflecting the current energy
8-4 efficiency of the structure and a rating reflecting what the energy
8-5 efficiency rating would be with some or all of the recommended
8-6 improvements;
8-7 (6) coordinate loan counseling services; and
8-8 (7) specify a mechanism for quality control.
8-9 Sec. 2305.109. AGRICULTURAL EQUIPMENT MORTGAGE PROJECT. The
8-10 energy office shall develop and implement a project design for
8-11 delivering energy efficiency improvement loans to owners of
8-12 agricultural equipment who make energy efficiency improvements to
8-13 the equipment. The design must:
8-14 (1) identify a pool of lenders to originate the loans;
8-15 (2) require a preloan audit to identify cost-effective
8-16 improvements that will improve the energy efficiency of the
8-17 agricultural equipment;
8-18 (3) identify a pool of auditors trained to perform
8-19 energy efficiency inspections of agricultural equipment;
8-20 (4) coordinate the loan application process with
8-21 auditor and contractor referral services;
8-22 (5) specify that the auditor shall provide the owner
8-23 of the agricultural equipment with a report before an energy
8-24 efficiency improvement is made, including:
8-25 (A) baseline performance standards for the
8-26 agricultural equipment before the energy efficiency improvements;
8-27 (B) an itemized list of recommendations for
9-1 cost-effective improvements that would improve the energy
9-2 efficiency of the agricultural equipment;
9-3 (C) the energy savings resulting from each of
9-4 the improvements;
9-5 (D) the environmental benefits of the
9-6 improvements;
9-7 (E) the costs of the recommended improvements;
9-8 and
9-9 (F) a rating reflecting the current energy
9-10 efficiency of the agricultural equipment and a rating reflecting
9-11 what the energy efficiency rating would be with some or all of the
9-12 recommended improvements;
9-13 (6) coordinate loan counseling services; and
9-14 (7) specify a mechanism for quality control.
9-15 Sec. 2305.110. HOME RATING AND MORTGAGE MARKETING PROJECT.
9-16 The energy office shall develop and implement a project design for
9-17 marketing the home rating system developed under Section 2305.105
9-18 and the delivery of energy efficiency mortgages and energy
9-19 efficiency improvement loans. The design must specify how the
9-20 comptroller of public accounts will:
9-21 (1) coordinate with the United States Environmental
9-22 Protection Agency to market the loans;
9-23 (2) target consumers, contractors, energy auditors,
9-24 lenders, realtors, and other stakeholders; and
9-25 (3) establish partnerships with lenders, realtors,
9-26 contractors, energy auditors, and other program partners who will
9-27 benefit from a loan program referral service to help market the
10-1 program.
10-2 SECTION 2. (a) This Act takes effect September 1, 2001.
10-3 (b) The state energy conservation office of the comptroller
10-4 of public accounts shall deliver the first set of guidelines
10-5 required by Section 2305.105, Government Code, as added by this
10-6 Act, not later than January 1, 2002.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2839 was passed by the House on May
5, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2839 was passed by the Senate on May
21, 2001, by a viva-voce vote.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor