81R25369 KFF-D

By: Rodriguez, Gallego, Harless, et al. H.B. No. 4261

Substitute the following for H.B. No. 4261:

By: Solomons C.S.H.B. No. 4261

A BILL TO BE ENTITLED

AN ACT

relating to establishing a no-interest loan program to promote the use of energy efficiency measures and renewable energy technology in certain residential dwellings, commercial buildings, and places of worship.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 447, Government Code, is amended by adding Section 447.014 to read as follows:

Sec. 447.014. LOAN PROGRAM TO PROMOTE USE OF ENERGY EFFICIENCY MEASURES AND RENEWABLE ENERGY TECHNOLOGY. (a) In this section:

(1) "Energy efficiency" means a measure that is aimed at reducing the rate at which energy is used by equipment or processes and may be achieved by:

(A) substituting more advanced equipment to produce the same or a higher level of end-use services with less energy;

(B) adopting technology and processes that reduce heat or other energy losses;

(C) installing materials, including weatherization materials, or equipment that reduces or facilitates a reduction in heat or other energy loss; or

(D) reorganizing processes to make use of waste heat.

(2) "Lending institution" means a financial institution that:

(A) customarily provides services or assistance in the financing of residential mortgage loans; or

(B) makes commercial loans.

(3) "Program" means the loan program to promote energy efficiency measures and renewable energy technology established by this section.

(4) "Renewable energy technology" has the meaning assigned by Section 39.904(d), Utilities Code.

(5) "Small business" has the meaning assigned by Section 481.191.

(b) Subject to the availability of funds under the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5), or other legislative appropriation, the State Energy Conservation Office shall establish and administer a revolving loan program to make no-interest loans to individuals, places of worship, and small businesses to promote the use of energy efficiency measures and renewable energy technology in the:

(1) residential dwellings owned by the individuals; and

(2) buildings owned or operated by the places of worship or small businesses.

(c) The State Energy Conservation Office shall ensure that the program is designed and administered in accordance with the applicable provisions of the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5) and any other applicable federal law.

(d) A loan made under the program:

(1) may not have a term that exceeds the earlier of:

(A) 20 years after the date the energy efficiency measure or renewable energy technology is installed; or

(B) the average useful life of the energy efficiency measure or renewable energy technology to be implemented by the loan recipient;

(2) may be secured by a lien on the real property;

(3) may be made with respect to a new or existing structure; and

(4) may not be made to fund a renewable energy technology that has an electric generating capacity of:

(A) more than 10 kilowatts if the loan is related to a residential dwelling; and

(B) more than 30 kilowatts if the loan is related to a building owned or operated by a place of worship or small business.

(e) To be eligible to receive a loan under the program, a person must:

(1) apply to the State Energy Conservation Office on a form prescribed by the office; and

(2) meet any additional eligibility requirements established by rule by the office.

(f) The State Energy Conservation Office may:

(1) contract with one or more lending institutions to assist the office with qualifying applicants and servicing loans under the program; and

(2) charge applicants a reasonable fee in an amount necessary to recover the costs associated with processing applications, qualifying applicants, and servicing loans under the program.

(g) The State Energy Conservation Office shall adopt rules as necessary to implement this section, including rules regarding:

(1) the types of renewable energy technologies or energy efficiency measures that are eligible for loan funding under the program;

(2) the maximum amount of any loan made under the program;

(3) the manner in which loans are to be repaid to the office;

(4) the terms that are required to be included in a contract entered into under Subsection (f)(1), including the fees payable to and duties imposed on a lending institution under the contract;

(5) the types of energy efficiency measures or renewable energy technologies that will require a loan applicant to undergo an energy efficiency audit or other energy assessment before the making of a loan under the program; and

(6) the creation of a registry of providers that:

(A) lists providers who are eligible to provide installation services under the loan program; and

(B) is routinely reviewed and updated by the office to assess provider performance and customer satisfaction and to ensure that providers meet required standards.

(h) To be eligible to provide installation services under the loan program, a provider must meet standards established by the State Energy Conservation Office that may be based on the types of certification held by the provider.

(i) The State Energy Conservation Office shall retain outside of the state treasury and use the proceeds of loan payments received under the program to administer and make loans under the program without the necessity of a legislative appropriation.

(j) Not later than January 1 of each year, the State Energy Conservation Office shall submit a report to the legislature that includes:

(1) a brief description of:

(A) the implementation and status of the program;

(B) the energy efficiency measures or renewable energy technologies financed under the program; and

(C) the energy saved and clean energy produced as a result of implementing energy efficiency measures or renewable energy technologies financed under the program; and

(2) any additional information the office determines necessary.

(k) For purposes of preparing the report described by Subsection (j) or for purposes of meeting any federal reporting requirement, the State Energy Conservation Office shall monitor a statistically relevant percentage of residential dwellings or buildings for which a loan is made under the program using a device that is installed on the structure and that transmits, in real time, energy consumption and production data into a centralized database to be accessed:

(1) by the office; and

(2) in a more limited and relevant format over an Internet website, by applicable loan recipients.

SECTION 2. Subject to Section 447.014(b), Government Code, as added by this Act, the State Energy Conservation Office shall establish the loan program to promote energy efficiency measures and renewable energy technology under Section 447.014, Government Code, as added by this Act, not later than December 1, 2009.

SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.