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.