78R706 SGA-D
By: Dukes H.B. No. 592
A BILL TO BE ENTITLED
AN ACT
relating to energy efficiency programs developed by the energy
office.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2305, Government Code, is amended by
adding Subchapter F to read as follows:
SUBCHAPTER F. TEXAS ENERGY ASSISTANCE LOAN PROGRAM
Sec. 2305.101. DEFINITIONS. In this subchapter:
(1) "Cost-effective" means, with respect to an energy
efficiency improvement to residential housing or a piece of
agricultural equipment, an improvement in which the total cost of
the improvement, including any maintenance and repair expenses, is
less than the value of energy saved over the useful life of the
improvement.
(2) "Energy efficiency improvement" means:
(A) a durable and serviceable modification to the
design of a structure or piece of agricultural equipment that
results in a measurable decrease in energy consumption by the
structure or piece of equipment; or
(B) other energy conservation measures that may
be established by the energy office by rule.
(3) "Energy efficiency improvement loan" means a loan
that provides financing incentives for a person who uses the loan to
make an energy efficiency improvement to an existing structure or
piece of agricultural equipment.
(4) "Energy efficiency mortgage" means a mortgage that
provides financing incentives:
(A) for the purchase of energy-efficient
residential housing; or
(B) for energy efficiency improvements to
existing residential housing by incorporating the cost of the
improvements into the mortgage.
(5) "Program" means the Texas Energy Assistance Loan
Program.
(6) "Residential housing" means a structure on a
residential property with one or more dwelling units.
Sec. 2305.102. TEXAS ENERGY ASSISTANCE LOAN PROGRAM. (a)
The energy office shall implement and maintain the Texas Energy
Assistance Loan Program.
(b) Under the program, the energy office shall:
(1) coordinate the delivery and marketing of mortgage
incentives to purchase energy-efficient residential housing and to
improve the energy efficiency of existing residential housing;
(2) provide training and technical assistance for:
(A) persons conducting energy efficiency
ratings; and
(B) the energy-efficient construction, design,
and remodeling of residential housing;
(3) provide educational workshops or seminars on the
benefits of the program for:
(A) stakeholders in the program;
(B) consumers of residential housing; and
(C) consumers of agricultural equipment;
(4) develop and purchase assessment tools, including
software and monitoring equipment;
(5) develop a database to track energy efficiency
improvements in the state;
(6) provide follow-up evaluation of homeowner
responsiveness to, understanding of, and satisfaction with energy
efficiency improvements;
(7) conduct market penetration studies; and
(8) implement:
(A) projects as required by this subchapter; and
(B) other initiatives that the energy office may
develop to promote energy-efficient residential housing.
(c) The energy office shall establish a system for
monitoring and evaluating the program.
(d) The energy office shall consult with other appropriate
state agencies to ensure coordination and avoid duplication of
activities authorized under this subchapter.
(e) The energy office may adopt rules necessary to implement
this subchapter.
Sec. 2305.103. FUNDS. (a) The energy office shall fund
projects and initiatives under this subchapter from funds available
under this chapter.
(b) In addition to the use of funds available under this
chapter, the energy office shall maximize procurement of funds from
alternative sources, including:
(1) program grants available through federal
agencies;
(2) federal legislative appropriations available to
state agency programs that promote energy efficiency in residential
housing;
(3) financial incentives provided through other state
agencies; and
(4) financial incentives provided by private and
nonprofit organizations and agencies.
Sec. 2305.104. VOLUNTARY PARTICIPATION. The energy office
shall promote voluntary participation in the program from:
(1) private lenders;
(2) builders and residential contractors;
(3) persons who rebuild, redevelop, repair, retrofit,
or renovate structures to restore the structures' usefulness as
residential housing;
(4) persons who rebuild, redevelop, repair, retrofit,
or renovate agricultural equipment;
(5) consumers of residential housing;
(6) owners of single-family and multifamily
residential housing;
(7) other participants in the residential housing
industry; and
(8) owners of agricultural equipment.
Sec. 2305.105. VOLUNTARY PARTICIPATION GUIDELINES. (a) The
energy office shall annually, by rule, issue voluntary
participation guidelines for energy-efficient residential
construction that may be used by state and local governments,
utilities, builders, real estate agents, lenders, agencies in
mortgage markets, and other persons as determined by the energy
office, to enable and encourage the assignment of uniform energy
efficiency ratings to residential housing and agricultural
equipment.
(b) The voluntary participation guidelines issued under
Subsection (a) must:
(1) establish baseline standards that are consistent
with the International Energy Conservation Code for residential
buildings;
(2) use a scaled rating to determine the energy
efficiency rating achieved by making energy efficiency
improvements;
(3) establish protocols and procedures for:
(A) certification of the technical accuracy of
energy efficiency rating tools used to determine the energy
efficiency of residential housing;
(B) training of personnel conducting energy
efficiency ratings;
(C) data collection and reporting;
(D) quality control; and
(E) monitoring and evaluation;
(4) encourage consistency with the programs of federal
or other public departments and agencies, as well as private
organizations that sponsor energy efficiency mortgages and promote
energy efficiency in residential housing;
(5) set up a structure for the rating system that
addresses local climate conditions and construction practices,
solar energy collected on-site, and similar conditions that vary
across the geographic regions of the state; and
(6) establish procedures to ensure that residential
buildings can receive an energy efficiency rating at the time of
sale and that the rating is communicated to potential buyers.
Sec. 2305.106. ADVISORY TASK FORCE. In developing the
guidelines and procedures for the program, the energy office shall
consult with an advisory task force composed of state and local
agencies involved in residential housing programs, builders,
building code organizations, energy efficiency organizations,
utilities, real estate agents, lenders, agencies in mortgage
markets, and representatives from any other appropriate industries
or other interested members of the public, as determined by the
energy office.
Sec. 2305.107. HOMEBUYER MORTGAGE PROJECT. The energy
office shall develop and implement a project design for delivering
energy efficiency mortgage loans to consumers who purchase
energy-efficient residential housing. The design must:
(1) establish procedures for the certification of the
energy efficiency of a residential structure, using the guidelines
established under Section 2305.105, for a person considering the
purchase of the structure with an energy efficiency mortgage;
(2) identify a pool of lenders to originate the loans;
(3) identify the appropriate secondary market where
the energy efficiency mortgage can be transferred or sold, if
necessary, to buy down the rate of the loan;
(4) coordinate loan counseling services; and
(5) specify a mechanism for quality control.
Sec. 2305.108. ENERGY EFFICIENCY IMPROVEMENT PROJECT. The
energy office shall develop and implement a project design for
delivering energy efficiency improvement loans to property owners
who make cost-effective energy efficiency improvements to existing
residential housing. The design must:
(1) identify a pool of lenders to originate the loans;
(2) require a preloan audit to identify cost-effective
improvements that will improve the energy efficiency of the
structure;
(3) identify a pool of auditors trained to perform
energy efficiency inspections of residential housing;
(4) coordinate the loan application process with
auditor and contractor referral services;
(5) specify that the auditor shall provide the
property owner with a report before an energy efficiency
improvement is made, including:
(A) baseline building standards for the
structure before the energy efficiency improvements;
(B) an itemized list of recommendations for
cost-effective improvements that would improve the energy
efficiency of the structure;
(C) the energy savings resulting from each of the
improvements;
(D) the environmental benefits of the
improvements;
(E) the costs of the recommended improvements;
and
(F) a rating reflecting the current energy
efficiency of the structure and a rating reflecting what the energy
efficiency rating would be with some or all of the recommended
improvements;
(6) coordinate loan counseling services; and
(7) specify a mechanism for quality control.
Sec. 2305.109. AGRICULTURAL EQUIPMENT MORTGAGE PROJECT.
The energy office shall develop and implement a project design for
delivering energy efficiency improvement loans to owners of
agricultural equipment who make energy efficiency improvements to
the equipment. The design must:
(1) identify a pool of lenders to originate the loans;
(2) require a preloan audit to identify cost-effective
improvements that will improve the energy efficiency of the
agricultural equipment;
(3) identify a pool of auditors trained to perform
energy efficiency inspections of agricultural equipment;
(4) coordinate the loan application process with
auditor and contractor referral services;
(5) specify that the auditor shall provide the owner
of the agricultural equipment with a report before an energy
efficiency improvement is made, including:
(A) baseline performance standards for the
agricultural equipment before the energy efficiency improvements;
(B) an itemized list of recommendations for
cost-effective improvements that would improve the energy
efficiency of the agricultural equipment;
(C) the energy savings resulting from each of the
improvements;
(D) the environmental benefits of the
improvements;
(E) the costs of the recommended improvements;
and
(F) a rating reflecting the current energy
efficiency of the agricultural equipment and a rating reflecting
what the energy efficiency rating would be with some or all of the
recommended improvements;
(6) coordinate loan counseling services; and
(7) specify a mechanism for quality control.
Sec. 2305.110. HOME RATING AND MORTGAGE MARKETING PROJECT.
The energy office shall develop and implement a project design for
marketing the home rating system developed under Section 2305.105
and the delivery of energy efficiency mortgages and energy
efficiency improvement loans. The design must specify how the
comptroller of public accounts will:
(1) coordinate with the United States Environmental
Protection Agency to market the loans;
(2) target consumers, contractors, energy auditors,
lenders, realtors, and other stakeholders; and
(3) establish partnerships with lenders, realtors,
contractors, energy auditors, and other program partners who will
benefit from a loan program referral service to help market the
program.
SECTION 2. (a) This Act takes effect September 1, 2003.
(b) The state energy conservation office of the comptroller
of public accounts shall deliver the first set of guidelines
required by Section 2305.105, Government Code, as added by this
Act, not later than January 1, 2004.