82R10766 RWG-D

By: Strama H.B. No. 3260

A BILL TO BE ENTITLED

AN ACT

relating to loans for energy improvements.

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

SECTION 1. Subtitle B, Title 4, Utilities Code, is amended by adding Chapter 187 to read as follows:

CHAPTER 187. FINANCING FOR ENERGY EFFICIENCY, RENEWABLE ENERGY, AND

WATER CONSERVATION SYSTEMS

Sec. 187.001. DEFINITIONS. In this chapter:

(1) "Energy efficiency improvement" means an installation or modification that is designed to reduce energy consumption in a residential or commercial building, including:

(A) insulation in walls, roofs, floors, and foundations and in heating and cooling distribution systems;

(B) storm windows and doors, multiglazed windows and doors, heat-absorbing or heat-reflective glazed and coated window and door systems, additional glazing, reductions in glass area, and other window and door system modifications that reduce energy consumption;

(C) automatic energy control systems;

(D) heating, ventilating, or air conditioning and distribution system modifications or replacements in a building or central plant;

(E) caulking and weather stripping;

(F) replacement or modification of lighting fixtures to increase the energy efficiency of the system;

(G) energy recovery systems; and

(H) systems to increase the use of natural daylight for interior lighting.

(2) "Energy improvement" means:

(A) an energy efficiency improvement;

(B) a renewable energy system; and

(C) a water conservation system.

(3) "Public utility" means a private corporation that does business in this state, a municipally owned utility, an electric cooperative, a water supply and sewer service corporation, a transmission and distribution service provider, or a state agency, authority, district, or political subdivision engaged in the business of:

(A) generating, transmitting, or distributing electric energy to the public; or

(B) furnishing water to the public.

(4) "Renewable energy system" means a fixture, product, device, or interacting group of fixtures, products, or devices that produces or uses energy from renewable resources and is capable of being installed for use in a commercial or residential building, including a system designed to generate electricity for use in the building and to be installed on the customer's side of the electric utility meter. The term includes:

(A) a photovoltaic generating system;

(B) a solar thermal system;

(C) a small wind generation system;

(D) a biomass energy system; and

(E) a geothermal energy system.

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

(6) "Water conservation system" means a fixture, product, device, or interacting group of fixtures, products, or devices that reduces the consumption of water, reduces the loss or waste of water, improves efficiency in the use of water, or increases the recycling and reuse of water so that water is available for future or alternative uses.

Sec. 187.002. POWER TO LOAN. A public utility may enter into a loan agreement with a customer to finance the purchase and installation of an energy improvement for a commercial or residential building to which the public utility provides service.

Sec. 187.003. LOAN REQUIREMENTS. (a) The principal amount specified in a loan agreement under Section 187.002 between a public utility and a residential customer may not be less than $2,500 or more than $50,000.

(b) The principal amount specified in a loan agreement under Section 187.002 between a public utility and a small business customer may not be less than $5,000 or more than $150,000.

(c) The term of the loan must be less than 15 years.

(d) The monthly payment for the loan, including interest, may not exceed the difference between the customer's payment without the energy improvement and the payment with the energy improvement, as determined by the utility and after considering factors not directly related to the use of the energy improvement.

Sec. 187.004. LOAN INTEREST; LIEN. (a) A loan issued under Section 187.002 shall bear interest at a rate specified by the public utility, which may not exceed a rate that is one-half of one percent higher than the actual interest rate paid on any debt issued by the public utility to finance the improvement, or if the utility did not issue debt, one-half of one percent higher than the annual rate of interest earned on deposits paid by financial institutions in that area during the previous year.

(b) A loan issued under this chapter, including any interest and penalties on that loan, is a lien against the property until paid and may be enforced by the public utility.

(c) The owner of any property covered by a loan issued under this chapter may at any time pay the entire assessment against any lot or parcel with interest accrued to the date of the payment.

Sec. 187.005. SURCHARGE; ADMINISTRATIVE PENALTY. (a) A public utility that issues a loan under this chapter shall recover as a surcharge to its existing rates a loan payment under this chapter.

(b) In an area where competition has been introduced, a retail electric provider shall include a payment toward a loan issued under this chapter for an energy efficiency improvement or renewable energy system as a surcharge to its existing rates and shall send that payment to the public utility that issued the loan.

(c) The commission may suspend, revoke, or amend the certificate of a retail electric provider that does not include the loan charge on a bill or forward an amount equal to the payment to the public utility that issued the loan. The commission shall impose an administrative penalty on a retail electric provider that does not include the loan charge on a bill or forward an amount equal to the payment to the public utility that issued the loan.

Sec. 187.006. NOTICE. (a) A landlord shall provide notice of a loan issued under this chapter attached to the property on the lease agreement to any prospective tenant.

(b) A property owner shall provide notice of a loan issued under this chapter that is attached to the property to any prospective buyer of the property.

Sec. 187.007. COST EFFECTIVENESS. The Public Utility Commission of Texas shall, by rule, develop standards and procedures for verifying the cost-effectiveness of the energy improvements described by this chapter.

SECTION 2. This Act takes effect September 1, 2011.