81R25275 JTS-D
By: Strama, Miklos, Villarreal, Pea H.B. No. 1391
Substitute the following for H.B. No. 1391:
By: Gonzalez Toureilles C.S.H.B. No. 1391
A BILL TO BE ENTITLED
AN ACT
relating to the promotion and use of renewable energy systems and
energy efficiency improvements; authorizing the issuance of
revenue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle C, Title 5, Health and Safety Code, is
amended by adding Chapter 391 to read as follows:
CHAPTER 391. EMISSIONS MANAGEMENT PROJECT FINANCING THROUGH
CONTRACTUAL ASSESSMENTS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 391.001. DEFINITIONS. In this chapter:
(1) "District" means an emissions management district
created under this chapter.
(2) "Emissions management project" means:
(A) a renewable energy system; or
(B) an energy efficiency improvement.
(3) "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.
(4) "Local government" means a municipality or a
county.
(5) "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.
[Sections 391.002-391.050 reserved for expansion]
SUBCHAPTER B. CREATION AND OPERATION OF DISTRICT
Sec. 391.051. ORDINANCE OR ORDER CREATING DISTRICT. (a)
The governing body of a local government by ordinance or order may
establish one or more districts under this chapter.
(b) The ordinance or order creating the district must
designate:
(1) the district's territory as a defined area inside
the local government's boundaries in which property owners are
eligible to participate in contractual assessment agreements with
the local government, which area may include all or any portion of
the area inside the local government's boundaries;
(2) the kinds of emissions management projects
eligible for financing by the local government; and
(3) the date and time of a hearing on the creation of
the district.
(c) The ordinance or order creating the district must
include a finding that the financing of emissions management
projects under this chapter serves a public purpose of the local
government by reducing emissions and energy consumption.
Sec. 391.052. DISCRETE DISTRICT BOUNDARIES. (a) The
territory of a district created under this chapter may not overlap
the territory of another district created under this chapter.
(b) The boundaries of a district created by a municipality
may only include territory within the corporate boundaries of the
municipality or the municipality's extraterritorial jurisdiction.
The boundaries of a district created by a county may not include
territory within the corporate boundaries of a municipality or the
extraterritorial jurisdiction of a municipality.
Sec. 391.053. DISTRICT MANAGEMENT. (a) The governing body
of a local government may, under the governing body's supervision,
appoint a manager, administrator, or board to oversee and manage
emissions management project financing in the district.
(b) A meeting of an administrative body that oversees and
manages emissions management project financing in the district is
subject to Chapter 551, Government Code.
[Sections 391.054-391.100 reserved for expansion]
SUBCHAPTER C. FINANCING OF PROJECTS IN EMISSIONS MANAGEMENT
DISTRICTS
Sec. 391.101. GENERAL POWERS AND DUTIES. A local
government may:
(1) enter into contractual assessment agreements
under Section 391.102 to finance the purchase and installation of
emissions management projects for commercial and residential
buildings in the boundaries of the district;
(2) make other innovative arrangements to finance the
purchase and installation of emissions management projects for
commercial and residential buildings in the boundaries of a
district;
(3) lease equipment and materials for emissions
management projects to property owners in the boundaries of a
district; and
(4) issue revenue bonds to finance activities under
this chapter.
Sec. 391.102. CONTRACTUAL ASSESSMENT AGREEMENTS. (a) A
local government may enter into a contractual assessment agreement
with an owner of property to finance the purchase and installation
of an emissions management project for the owner's property.
(b) The governing body of the local government by official
action shall establish the terms of an agreement under this
chapter, including:
(1) the term of the assessments; and
(2) the rate of interest on the assessments.
(c) A contract under this section may allow the property
owner to directly:
(1) purchase the equipment and materials for the
installation of a renewable energy system or an energy efficiency
improvement; and
(2) contract for the installation of a renewable
energy system or energy efficiency improvement.
Sec. 391.103. LEVY OF ASSESSMENT. (a) After the local
government and a property owner enter into a contractual assessment
agreement, the governing body of the local government shall levy
the assessments against the property. The amount of the assessment
must be in the amount necessary to pay for:
(1) the amount of the contract for the improvement;
(2) the interest on the amount of the contract, at the
rate adopted in the ordinance or order creating the district; and
(3) apportioned administrative costs associated with
operating the district.
(b) A property owner may pay the assessment in full or in
installments as authorized by the local government in the ordinance
or order creating the district.
(c) The governing body of the local government shall make
reasonable efforts to collect assessment payments under this
chapter in the same manner as the local government collects
property taxes.
(d) The governing body of the local government shall have an
assessment roll prepared showing the assessments against each
property. The assessment roll shall be:
(1) filed with the secretary of the governing body or
other officer who performs the function of secretary;
(2) made available to the county tax
assessor-collector; and
(3) open for public inspection.
Sec. 391.104. INTEREST ON ASSESSMENTS; LIEN. (a)
Assessments bear interest at a rate specified by the governing body
of the local government, which may not exceed a rate that is
one-half of one percent higher than the actual interest rate paid on
the public debt used to finance the improvement.
(b) Interest on an assessment between the effective date of
the contract and the date the first installment and any related
penalty is payable shall be added to the first installment. The
interest or penalties on all unpaid installments shall be added to
each subsequent installment until paid.
(c) An assessment, including any interest and penalties on
that assessment, is a lien against the property until paid and may
be enforced by the governing body in the same manner that an ad
valorem tax lien against real property may be enforced by the
governing body. Delinquent installments of the assessment shall
incur liability for interest, penalties, and attorney's fees in the
same manner as delinquent ad valorem taxes.
(d) The owner of any property assessed may at any time pay
the entire assessment against any lot or parcel with interest
accrued to the date of the payment.
Sec. 391.105. SUPPLEMENTAL ASSESSMENTS. After notice and
hearing, the governing body of the local government may make
supplemental assessments to correct an omission or mistake in an
assessment:
(1) relating to the total cost of emissions management
projects financed by the district; or
(2) covering delinquencies or costs of collection for
the projects.
Sec. 391.106. EMISSIONS MANAGEMENT PROJECT VENDORS AND
INSTALLERS. (a) The state energy conservation office shall
establish guidelines to assist local governments in compiling lists
of contractors eligible to sell or install emissions management
projects and project components financed under this chapter.
(b) The competitive bidding requirements of Chapters 252
and 262, Local Government Code, do not apply to the purchase and
installation of emissions management projects financed under this
chapter.
(c) An ordinance or order creating a district may provide
for consolidated payment for multiple projects by a single vendor.
Sec. 391.107. LOCAL GOVERNMENT LIABILITY FOR EMISSIONS
MANAGEMENT PROJECTS. (a) For an emissions management project
purchased and installed through the use of financing under this
chapter, a local government:
(1) is not liable for any damages arising from the
purchase, installation, or use of any equipment relating to the
project;
(2) is not responsible for the maintenance of any
equipment relating to the project;
(3) is not responsible for the purchase of insurance
relating to the purchase, installation, or use of any equipment
relating to the project; and
(4) has no duty to respond to a complaint that may
arise relating to the purchase, installation, or use of any
equipment relating to the project.
(b) A local government does not guarantee or otherwise
secure loans for the purchase and installation of emissions
management projects financed under this chapter.
Sec. 391.108. REQUIREMENTS FOR PARTICIPATION BY PROPERTY
OWNER. (a) The governing body of the local government in the
ordinance or order establishing the district shall establish
requirements for property owner participation in the financing of
emissions management projects under this chapter, which must
include a requirement that the property owner:
(1) is not delinquent in the payment of property taxes
or mortgage payments for the property; and
(2) has not been delinquent or late in the payment of
property taxes or mortgage payments for the property.
(b) The local government may prioritize applications for
participation in financing under this chapter based on the relative
strength of the applicants' financial standing.
Sec. 391.109. ESTIMATE OF SAVINGS PROVIDED BY VENDOR.
Before making a sale of components for an emissions management
project, a vendor shall provide to the purchasing property owner an
estimate of the savings associated with the emissions management
project.
Sec. 391.110. DISTRICT FINANCING PROVISIONS. (a) A local
government that creates a district may:
(1) establish a special improvement fund for the
district in the manner authorized for public improvement districts
under Section 372.021, Local Government Code, except that the local
government may not levy a tax to support the fund;
(2) issue revenue bonds in the manner authorized for
public improvement districts under Sections 372.024 and 372.025,
Local Government Code, payable solely from assessment payments made
under contractual assessment agreements under this chapter;
(3) pledge assessment payment revenue from
contractual assessment agreements in the manner authorized for
public improvement districts under Section 372.026, Local
Government Code; and
(4) issue refunding bonds in the manner authorized for
public improvement districts under Section 372.027, Local
Government Code.
(b) A local government that creates a district shall:
(1) to the extent applicable, pay costs associated
with financing emissions management projects in the manner provided
for the payment of costs for improvements of a public improvement
district under Section 372.023, Local Government Code, except that
any bonds shall be payable solely from assessment payments made
under contractual assessment agreements under this chapter; and
(2) have revenue bonds authorized and registered in
the manner provided for revenue bonds issued for a public
improvement district under Section 372.028, Local Government Code.
(c) The holder of a bond issued under this chapter is not
entitled to demand payment of the bond with any money raised by
taxation.
SECTION 2. Section 372.003(b), Local Government Code, is
amended to read as follows:
(b) A public improvement project may include:
(1) landscaping;
(2) erection of fountains, distinctive lighting, and
signs;
(3) acquiring, constructing, improving, widening,
narrowing, closing, or rerouting of sidewalks or of streets, any
other roadways, or their rights-of-way;
(4) construction or improvement of pedestrian malls;
(5) acquisition and installation of pieces of art;
(6) acquisition, construction, or improvement of
libraries;
(7) acquisition, construction, or improvement of
off-street parking facilities;
(8) acquisition, construction, improvement, or
rerouting of mass transportation facilities;
(9) acquisition, construction, or improvement of
water, wastewater, or drainage facilities or improvements;
(10) the establishment or improvement of parks;
(11) projects similar to those listed in Subdivisions
(1)-(10);
(12) acquisition, by purchase or otherwise, of real
property in connection with an authorized improvement;
(13) special supplemental services for improvement
and promotion of the district, including services relating to
advertising, promotion, health and sanitation, water and
wastewater, renewable energy, public safety, security, business
recruitment, development, recreation, and cultural enhancement;
[and]
(14) payment of expenses incurred in the
establishment, administration, and operation of the district; and
(15) acquisition, installation, or improvement of
public renewable energy improvements.
SECTION 3. Section 375.112(a), Local Government Code, is
amended to read as follows:
(a) An improvement project or services provided by the
district may include the construction, acquisition, improvement,
relocation, operation, maintenance, or provision of:
(1) landscaping; lighting, banners, and signs;
streets and sidewalks; pedestrian skywalks, crosswalks, and
tunnels; seawalls; marinas; drainage and navigation improvements;
pedestrian malls; solid waste, water, sewer, and power facilities,
including electrical, gas, steam, cogeneration, and chilled water
facilities; renewable energy; parks, plazas, lakes, rivers,
bayous, ponds, and recreation and scenic areas; historic areas;
fountains; works of art; off-street parking facilities, bus
terminals, heliports, and mass transit systems; and the cost of any
demolition in connection with providing any of the improvement
projects;
(2) other improvements similar to those described in
Subdivision (1);
(3) the acquisition of real property or any interest
in real property in connection with an improvement, project, or
services authorized by this chapter, Chapter 54, Water Code, or
Chapter 365 or 441, Transportation Code;
(4) special supplemental services for advertising,
economic development, promoting the area in the district, health
and sanitation, public safety, maintenance, security, business
recruitment, development, elimination or relief of traffic
congestion, recreation, and cultural enhancement; and
(5) expenses incurred in the establishment,
administration, maintenance, and operation of the district or any
of its improvements, projects, or services.
SECTION 4. This Act takes effect September 1, 2009.