By Dukes H.B. No. 2839 77R4457 SGA-D A BILL TO BE ENTITLED 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 building standards that are 5-9 consistent with the federal building energy standards established 5-10 by the United States Department of Energy under 42 U.S.C. Section 5-11 6834, as amended; 5-12 (2) use a scaled rating to determine the energy 5-13 efficiency rating achieved by making energy efficiency 5-14 improvements; 5-15 (3) establish protocols and procedures for: 5-16 (A) certification of the technical accuracy of 5-17 energy efficiency rating tools used to determine the energy 5-18 efficiency of residential housing; 5-19 (B) training of personnel conducting energy 5-20 efficiency ratings; 5-21 (C) data collection and reporting; 5-22 (D) quality control; and 5-23 (E) monitoring and evaluation; 5-24 (4) encourage consistency with the programs of federal 5-25 or other public departments and agencies, as well as private 5-26 organizations that sponsor energy efficiency mortgages and promote 5-27 energy efficiency in residential housing; 6-1 (5) set up a structure for the rating system that 6-2 addresses local climate conditions and construction practices, 6-3 solar energy collected on-site, and similar conditions that vary 6-4 across the geographic regions of the state; and 6-5 (6) establish procedures to ensure that residential 6-6 buildings can receive an energy efficiency rating at the time of 6-7 sale and that the rating is communicated to potential buyers. 6-8 Sec. 2305.106. ADVISORY TASK FORCE. In developing the 6-9 guidelines and procedures for the program, the energy office shall 6-10 consult with an advisory task force composed of state and local 6-11 agencies involved in residential housing programs, builders, 6-12 building code organizations, energy efficiency organizations, 6-13 utilities, real estate agents, lenders, agencies in mortgage 6-14 markets, and representatives from any other appropriate industries 6-15 or other interested members of the public, as determined by the 6-16 energy office. 6-17 Sec. 2305.107. HOMEBUYER MORTGAGE PROJECT. The energy 6-18 office shall develop and implement a project design for delivering 6-19 energy efficiency mortgage loans to consumers who purchase 6-20 energy-efficient residential housing. The design must: 6-21 (1) establish procedures for the certification of the 6-22 energy efficiency of a residential structure, using the guidelines 6-23 established under Section 2305.105, for a person considering the 6-24 purchase of the structure with an energy efficiency mortgage; 6-25 (2) identify a pool of lenders to originate the loans; 6-26 (3) identify the appropriate secondary market where 6-27 the energy efficiency mortgage can be transferred or sold, if 7-1 necessary, to buy down the rate of the loan; 7-2 (4) coordinate loan counseling services; and 7-3 (5) specify a mechanism for quality control. 7-4 Sec. 2305.108. ENERGY EFFICIENCY IMPROVEMENT PROJECT. The 7-5 energy office shall develop and implement a project design for 7-6 delivering energy efficiency improvement loans to property owners 7-7 who make cost-effective energy efficiency improvements to existing 7-8 residential housing. The design must: 7-9 (1) identify a pool of lenders to originate the loans; 7-10 (2) require a preloan audit to identify cost-effective 7-11 improvements that will improve the energy efficiency of the 7-12 structure; 7-13 (3) identify a pool of auditors trained to perform 7-14 energy efficiency inspections of residential housing; 7-15 (4) coordinate the loan application process with 7-16 auditor and contractor referral services; 7-17 (5) specify that the auditor shall provide the 7-18 property owner with a report before an energy efficiency 7-19 improvement is made, including: 7-20 (A) baseline building standards for the 7-21 structure before the energy efficiency improvements; 7-22 (B) an itemized list of recommendations for 7-23 cost-effective improvements that would improve the energy 7-24 efficiency of the structure; 7-25 (C) the energy savings resulting from each of 7-26 the improvements; 7-27 (D) the environmental benefits of the 8-1 improvements; 8-2 (E) the costs of the recommended improvements; 8-3 and 8-4 (F) a rating reflecting the current energy 8-5 efficiency of the structure and a rating reflecting what the energy 8-6 efficiency rating would be with some or all of the recommended 8-7 improvements; 8-8 (6) coordinate loan counseling services; and 8-9 (7) specify a mechanism for quality control. 8-10 Sec. 2305.109. AGRICULTURAL EQUIPMENT MORTGAGE PROJECT. The 8-11 energy office shall develop and implement a project design for 8-12 delivering energy efficiency improvement loans to owners of 8-13 agricultural equipment who make energy efficiency improvements to 8-14 the equipment. The design must: 8-15 (1) identify a pool of lenders to originate the loans; 8-16 (2) require a preloan audit to identify cost-effective 8-17 improvements that will improve the energy efficiency of the 8-18 agricultural equipment; 8-19 (3) identify a pool of auditors trained to perform 8-20 energy efficiency inspections of agricultural equipment; 8-21 (4) coordinate the loan application process with 8-22 auditor and contractor referral services; 8-23 (5) specify that the auditor shall provide the owner 8-24 of the agricultural equipment with a report before an energy 8-25 efficiency improvement is made, including: 8-26 (A) baseline performance standards for the 8-27 agricultural equipment before the energy efficiency improvements; 9-1 (B) an itemized list of recommendations for 9-2 cost-effective improvements that would improve the energy 9-3 efficiency of the agricultural equipment; 9-4 (C) the energy savings resulting from each of 9-5 the improvements; 9-6 (D) the environmental benefits of the 9-7 improvements; 9-8 (E) the costs of the recommended improvements; 9-9 and 9-10 (F) a rating reflecting the current energy 9-11 efficiency of the agricultural equipment and a rating reflecting 9-12 what the energy efficiency rating would be with some or all of the 9-13 recommended improvements; 9-14 (6) coordinate loan counseling services; and 9-15 (7) specify a mechanism for quality control. 9-16 Sec. 2305.110. HOME RATING AND MORTGAGE MARKETING PROJECT. 9-17 The energy office shall develop and implement a project design for 9-18 marketing the home rating system developed under Section 2305.105 9-19 and the delivery of energy efficiency mortgages and energy 9-20 efficiency improvement loans. The design must specify how the 9-21 General Services Commission will: 9-22 (1) coordinate with the United States Environmental 9-23 Protection Agency to market the loans; 9-24 (2) target consumers, contractors, energy auditors, 9-25 lenders, realtors, and other stakeholders; and 9-26 (3) establish partnerships with lenders, realtors, 9-27 contractors, energy auditors, and other program partners who will 10-1 benefit from a loan program referral service to help market the 10-2 program. 10-3 SECTION 2. (a) This Act takes effect September 1, 2001. 10-4 (b) The state energy conservation office of the General 10-5 Services Commission shall deliver the first set of guidelines 10-6 required by Section 2305.105, Government Code, as added by this 10-7 Act, not later than January 1, 2002. 10-8 COMMITTEE AMENDMENT NO. 1 10-9 Amend H.B. 2839 as follows: 10-10 1) On page 9, line 21, strike "General Services Commission" 10-11 and substitute "Comptroller of Public Accounts". 10-12 2) On page 10, lines 4-5, strike "General Services 10-13 Commission" and substitute "Comptroller of Public Accounts". 10-14 Carter