By Danburg H.B. No. 2845
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the creation of the Texas Fuel Cell Commercialization
1-3 Initiative and the redirection of certain federal Oil Overcharge
1-4 Restitution Funds.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. The heading of Section 2305.032, Government Code,
1-7 is amended to read as follows:
1-8 Sec. 2305.032. Loanstar Fund [
Revolving Loan Program].
1-9 SECTION 2. Section 2305.032, Government Code, is amended by
1-10 amending Subsection (f) and adding Subsections (g) through (n) as
1-12 (f) The energy office shall allocate at least $95 million,
1-13 including loan commitments and cash on hand, to the loanstar fund,
1-14 which shall be used to provide loanstar loans as authorized by this
1-15 section and for the funding of a Texas Fuel Cell Commercialization
1-16 Initiative. [ program and] The energy office shall administer the
1-17 funds under its control, as appropriate, to assure a smooth and
1-18 complete transition from the use of the funds for the loanstar loan
1-19 program to the expenditure of funds for the Texas Fuel Cell
1-20 Commercialization Initiative over no more than a two year period
1-21 [ in a manner that assures that funds available to the loanstar
1-22 program equal or exceed $95 million at all times].
1-23 (g) The State Energy Conservation Office shall form a fuel
2-1 cell advisory committee to help the Office determine the most cost
2-2 effective means to foster the accelerated commercial development
2-3 and availability of clean small-scale fuel cell technology to Texas
2-4 residents and businesses, and to encourage the growth of the fuel
2-5 cell industry, and related products and services, in Texas. The
2-6 Advisory Committee shall provide guidance to the Office in
2-7 development of program participation standards, system installation
2-8 and technical performance standards, and establishment of standards
2-9 for monitoring and evaluation of systems installed under the
2-10 program. The advisory committee shall include representatives of
2-11 the fuel cell industry, energy services providers, electric
2-12 transmission and distribution utilities and retail electric
2-13 providers, as well as, small customers.
2-14 (h) The State Energy Conservation Office is responsible for
2-15 creation, and administration, of a Texas Fuel Cell
2-16 Commercialization Initiative, a program of standard-offer
2-17 incentives, to competitively promote and facilitate the accelerated
2-18 commercialization of clean small-scale fuel cell power generation
2-19 and small combined heat and power fuel cell systems, particularly
2-20 for use in areas the state which are in nonattainment or
2-21 near-nonattainment with the Clean Air Act.
2-22 (i) Incentives shall be made available to competitive
2-23 companies, which install the systems on customer premises, at the
2-24 customer's request. Installing companies must demonstrate proper
2-25 installation and system performance in order to claim the
2-26 incentive. Incentives shall be performance, or production, based,
3-1 and shall be designed to encourage competitive pricing, as well as,
3-2 accelerate the adoption of fuel cell technology, to the extent
3-4 (j) The State Energy Conservation Office shall adopt the
3-5 necessary and appropriate rules to implement the Texas Fuel Cell
3-6 Commercialization Initiative, in order to launch the Initiative
3-7 publicly no later than January 1, 2003. The rules shall provide
3-8 for the smooth transition from the current use of the Loanstar fund
3-9 to implementation of the Texas Fuel Cell Commercialization
3-10 Initiative, allowing for completion of existing projects being
3-11 financed, and a diminishing rate of financing of new projects, in
3-12 order to allow for the timely expansion of the new Texas Fuel Cell
3-13 Commercialization Initiative.
3-14 (k) The State Energy Conservation Office shall amend the
3-15 State Energy Plan to encompass the initiative authorized by this
3-16 section, and shall pursue the approval of the United States
3-17 Department of Energy for use of federally allocated funds as
3-18 necessary to meet the deadline imposed in Subsection (j).
3-19 (l) The State Energy Conservation Office may use 5% of the
3-20 funds allocated to the Texas Fuel Cell Commercialization Initiative
3-21 for administrative costs and for education-related efforts
3-22 associated with the initiative. The State Energy Conservation
3-23 Office may use up to 10% (additional 5%) for administration and
3-24 education or development related efforts associated with the
3-25 initiative which the Advisory Committee agrees would enhance the
3-26 overall impact of the program.
4-1 (m) The State Energy Conservation Office shall report to the
4-2 Legislative Budget Board on an annual basis on the progress of the
4-3 Initiative authorized by this section, or more often if
4-4 appropriate. The Office shall also provide the Legislative Budget
4-5 Board with the modified State Energy Plan, and an accounting for
4-6 Oil Overcharge Restitution Fund conversion and expenditures.
4-7 (n) The State Energy Conservation Office shall endeavor to
4-8 cooperate with and seek the assistance and support of the Texas
4-9 Natural Resources and Conservation Commission and the Public
4-10 Utility Commission, and other state or local agencies as
4-11 appropriate, in development of program plans, rules and guidelines
4-12 or operating procedures.
4-13 SECTION 3. This Act takes effect September 1, 2001.