81R1709 TRH-D

By: Davis, Wendy S.B. No. 631

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of a loan incentive program to promote energy efficiency in apartment buildings.

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

SECTION 1. Section 39.002, Utilities Code, is amended to read as follows:

Sec. 39.002. APPLICABILITY. This chapter, other than Sections 39.155, 39.157(e), 39.203, 39.903, 39.904, 39.9051, 39.9052, [and] 39.914(e), and 39.918, does not apply to a municipally owned utility or an electric cooperative. Sections 39.157(e), 39.203, and 39.904, however, apply only to a municipally owned utility or an electric cooperative that is offering customer choice. If there is a conflict between the specific provisions of this chapter and any other provisions of this title, except for Chapters 40 and 41, the provisions of this chapter control.

SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is amended by adding Section 39.918 to read as follows:

Sec. 39.918. ENERGY EFFICIENCY IMPROVEMENT LOAN PROGRAM FOR APARTMENT BUILDINGS. (a) The commission by rule shall develop a no-interest loan program to promote energy efficiency improvements in apartment buildings. The commission shall administer the program using money appropriated expressly for the program.

(b) To be eligible for a loan under the program, an applicant must:

(1) be an owner of an existing multi-unit apartment building; and

(2) use the loan for installation of an appliance or equipment designed to reduce demand for energy in the apartment building or for a renovation or repair intended to reduce demand for energy in the apartment building.

(c) The commission by rule shall specify:

(1) the types of appliances, equipment, renovations, and repairs for which a loan may be made under the program; and

(2) the types of apartment buildings for which a loan may be made under the program.

(d) Loan payments received by the commission shall be remitted to the comptroller to be credited to the general revenue fund. The commission by rule shall establish the manner in which loans are repaid to the commission. The rules must provide that each loan be repaid:

(1) over a period determined by the commission:

(A) by a surcharge on the electricity bills of the rental units improved through loan proceeds, if the building's rental units are separately submetered and billed directly by a utility provider; or

(B) by a surcharge on the electricity bill of the building's owner, if the building's rental units are not separately submetered or billed directly by a utility provider;

(2) according to a formula:

(A) based on the difference between total monthly energy costs after improvements are made and the estimated monthly energy costs if the improvements had not been made;

(B) that allocates loan repayment costs in a submetered apartment building, or an apartment building that uses central system utilities in which the building owner prorates utility costs among tenants, only to those rental units that are directly improved using loan proceeds;

(C) that allows the tenant of an improved unit in a separately submetered apartment building, or the tenant of an improved unit in an apartment building using central system utilities in which the building owner prorates utility costs among tenants, to realize at least 40 percent of the energy cost savings computed in Paragraph (A); and

(D) that allows the owner of an apartment building using central system utilities in which the owner does not prorate utility costs among tenants to realize at least 40 percent of the energy cost savings computed in Paragraph (A); and

(3) by periodic assessments against the recipient of the loan, determined according to the amount owed and the building's property tax valuation, if, before the loan is fully repaid, the building is sold, is no longer leased to tenants, or is destroyed.

SECTION 3. Not later than December 1, 2009, the Public Utility Commission of Texas shall establish the energy efficiency improvement loan program under Section 39.918, Utilities Code, as added by this Act, and the commission shall begin accepting applications for loans under that program not later than January 1, 2010.

SECTION 4. 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.