Texas 2009 - 81st Regular

Texas House Bill HB4459 Compare Versions

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1	1	By: Strama H.B. No. 4459
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to economic development and employment opportunities in
7	7	the renewable energy or energy efficiency industries.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 481.078, Government Code, is amended by
10	10	adding Subsection (l) to read as follows:
11	11	(l) The fund may be used to make one or more grants to the
12	12	Texas Workforce Commission to implement the commission's powers and
13	13	duties relating to a green job skills training program. Subsections
14	14	(e-1), (f), (g), (h), (i), and (j) do not apply to a grant under this
15	15	subsection.
16	16	SECTION 2. Subtitle F, Title 4, Government Code, is amended
17	17	by adding Chapter 490D to read as follows:
18	18	CHAPTER 490D. GREEN JOB SKILLS DEVELOPMENT FUND AND TRAINING
19	19	PROGRAM
20	20	SUBCHAPTER A. GENERAL PROVISIONS
21	21	Sec. 490D.001. PURPOSE. The purpose of this chapter is to:
22	22	(1) promote green industry employment opportunities,
23	23	including through the establishment of training programs to enhance
24	24	green job skills;
25	25	(2) foster regional collaboration for the development
26	26	of green industry employment opportunities;
27	27	(3) assist in the development of a highly skilled and
28	28	productive workforce in the green industry; and
29	29	(4) assist workers with obtaining education, skills
30	30	training, and labor market information to enhance their
31	31	employability, earnings, and standard of living.
32	32	Sec. 490D.002. DEFINITIONS. In this chapter:
33	33	(1) "Commission" means the Texas Workforce
34	34	Commission.
35	35	(2) "Development fund" means the Texas green job
36	36	skills development fund.
37	37	(3) "Green job" means a job in the field of renewable
38	38	energy or energy efficiency, including a job relating to:
39	39	(A) energy-efficient building, construction, and
40	40	retrofitting;
41	41	(B) renewable electric power;
42	42	(C) biofuels;
43	43	(D) deconstruction and reuse of materials;
44	44	(E) energy efficiency assessments;
45	45	(F) manufacturing of sustainable products; and
46	46	(G) manufacturing using sustainable processes
47	47	and materials.
48	48	[Sections 490D.003-490D.020 reserved for expansion]
49	49	SUBCHAPTER B. GREEN JOB SKILLS DEVELOPMENT FUND
50	50	Sec. 490D.021. TEXAS GREEN JOB SKILLS DEVELOPMENT FUND. (a)
51	51	The Texas green job skills development fund is an account in the
52	52	general revenue fund. The account is composed of:
53	53	(1) legislative appropriations;
54	54	(2) money received from the Texas enterprise fund
55	55	under Section 481.078;
56	56	(3) gifts, grants, donations, and matching funds
57	57	received under Subsection (b); and
58	58	(4) other money required by law to be deposited in the
59	59	account.
60	60	(b) The commission may solicit and accept gifts, grants, and
61	61	donations of money from the federal government, local governments,
62	62	private corporations, or other persons to be used for the purposes
63	63	of this subchapter.
64	64	(c) Income from money in the account shall be credited to
65	65	the account.
66	66	(d) Money in the development fund may be used only for the
67	67	purposes of this chapter.
68	68	[Sections 490D.022-490D.030 reserved for expansion]
69	69	SUBCHAPTER C. GREEN JOB SKILLS GRANT PROGRAM
70	70	Sec. 490D.031. ESTABLISHMENT OF GREEN JOB SKILLS GRANT
71	71	PROGRAM. The commission shall establish a green job skills grant
72	72	program, funded by the development fund under Section 490D.021,
73	73	through which the commission may award grants for the
74	74	implementation, expansion, and operation of green job skills
75	75	training programs.
76	76	Sec. 490D.032. GRANT PROGRAM REQUIREMENTS. (a) A training
77	77	program funded through a grant awarded under this subchapter must:
78	78	(1) be hosted by a regional partnership that includes
79	79	at least:
80	80	(A) one university, college, or technical
81	81	school;
82	82	(B) one chamber of commerce, local workforce
83	83	agency, local employer, or other public or private participating
84	84	entity; and
85	85	(C) one economic development authority;
86	86	(2) assist an eligible individual in obtaining
87	87	education, skills training, and labor market information to enhance
88	88	the individual's employability in green industries; and
89	89	(3) assist in the development of a highly skilled and
90	90	productive workforce in green industries.
91	91	(b) A training program awarded a grant under this subchapter
92	92	shall target a population of eligible individuals for training that
93	93	includes:
94	94	(1) workers in high-demand green industries who are in
95	95	or preparing for high-wage occupations;
96	96	(2) workers in declining industries who may be
97	97	retrained for high-wage occupations in a high-demand green
98	98	industry;
99	99	(3) agriculture, timber, or energy sector workers who
100	100	may be retrained for high-wage occupations in a high-demand green
101	101	industry;
102	102	(4) veterans or past or present members of the armed
103	103	forces of the United States, including the state military forces,
104	104	or a reserve component of the armed forces or the national guard;
105	105	(5) unemployed workers; or
106	106	(6) individuals determined by the commission to be
107	107	disadvantaged and in need of training to obtain employment.
108	108	(c) A training program may receive funding under this
109	109	chapter for a period not to exceed three years.
110	110	Sec. 490D.033. APPLICATION. (a) A regional partnership,
111	111	as described by Section 490D.032, may apply for a grant under this
112	112	subchapter in the manner prescribed by the commission.
113	113	(b) The grant application must require the applicant to
114	114	provide to the commission the applicant's plan to continue to
115	115	operate the training program after the grant expires.
116	116	Sec. 490D.034. ADDITIONAL CONSIDERATIONS IN AWARDING
117	117	GRANTS. In addition to the factors described by Sections 490D.032
118	118	and 490D.033, in determining whether to award a grant to an
119	119	applicant under this subchapter, the commission shall give
120	120	preference to a training program that provides certification to a
121	121	worker who receives green job skills training under the program.
122	122	Sec. 490D.035. STANDARDS. The commission by rule shall
123	123	adopt standards for a green job skills training program awarded a
124	124	grant under this subchapter.
125	125	SECTION 3. Section 386.051(b), Health and Safety Code, is
126	126	amended to read as follows:
127	127	(b) Under the plan, the commission and the comptroller shall
128	128	provide grants or other funding for:
129	129	(1) the diesel emissions reduction incentive program
130	130	established under Subchapter C, including for infrastructure
131	131	projects established under that subchapter;
132	132	(2) the motor vehicle purchase or lease incentive
133	133	program established under Subchapter D;
134	134	(3) the new technology research and development
135	135	program established under Chapter 387; [and]
136	136	(4) the clean school bus program established under
137	137	Chapter 390; and
138	138	(5) emissions management districts under Chapter 391.
139	139	SECTION 4. Section 386.252(c), Health and Safety Code, is
140	140	amended to read as follows:
141	141	(c) Money in the fund may be allocated to the clean school
142	142	bus program and emissions management districts only if:
143	143	(1) the money is available for that purpose after
144	144	money is allocated for the other purposes of the fund as required by
145	145	the state implementation plan; or
146	146	(2) the amount of money deposited to the credit of the
147	147	fund in a state fiscal year exceeds the amount the comptroller's
148	148	biennial revenue estimate shows as the comptroller's estimated
149	149	amount to be deposited to the credit of the fund in that year.
150	150	SECTION 5. Subtitle C, Title 5, Health and Safety Code, is
151	151	amended by adding Chapter 391 to read as follows:
152	152	CHAPTER 391. EMISSIONS MANAGEMENT PROJECT FINANCING THROUGH
153	153	CONTRACTUAL ASSESSMENTS
154	154	SUBCHAPTER A. GENERAL PROVISIONS
155	155	Sec. 391.001. DEFINITIONS. In this chapter:
156	156	(1) "Board" means a district's board of directors.
157	157	(2) "Director" means a board member.
158	158	(3) "District" means an emissions management district
159	159	created under this chapter.
160	160	(4) "Emissions management project" means:
161	161	(A) a renewable energy system; or
162	162	(B) an energy efficiency improvement.
163	163	(5) "Energy efficiency improvement" means an
164	164	installation or modification that is designed to reduce energy
165	165	consumption in a residential or commercial building, including:
166	166	(A) insulation in walls, roofs, floors, and
167	167	foundations and in heating and cooling distribution systems;
168	168	(B) storm windows and doors, multiglazed windows
169	169	and doors, heat-absorbing or heat-reflective glazed and coated
170	170	window and door systems, additional glazing, reductions in glass
171	171	area, and other window and door system modifications that reduce
172	172	energy consumption;
173	173	(C) automatic energy control systems;
174	174	(D) heating, ventilating, or air conditioning
175	175	and distribution system modifications or replacements in a building
176	176	or central plant;
177	177	(E) caulking and weather-stripping;
178	178	(F) replacement or modification of lighting
179	179	fixtures to increase the energy efficiency of the system;
180	180	(G) energy recovery systems; and
181	181	(H) systems to increase the use of natural
182	182	daylight for interior lighting.
183	183	(6) "Local government" mean a municipality or a
184	184	county.
185	185	(7) "Renewable energy system" means a fixture,
186	186	product, device, or interacting group of fixtures, products, or
187	187	devices that produces or uses energy from renewable resources and
188	188	is capable of being installed for use in a commercial or residential
189	189	building, including a system designed to generate electricity for
190	190	use in the building and to be installed on the customer's side of
191	191	the electric utility meter. The term includes:
192	192	(A) a photovoltaic generating system;
193	193	(B) a solar thermal system;
194	194	(C) a small wind generation system;
195	195	(D) a biomass energy system; and
196	196	(E) a geothermal energy system.
197	197	[Sections 391.002-391.050 reserved for expansion]
198	198	SUBCHAPTER B. CREATION OF DISTRICT
199	199	Sec. 391.051. ORDINANCE OR ORDER CREATING DISTRICT. (a) The
200	200	governing body of a local government by ordinance or order may
201	201	establish a district under this chapter.
202	202	(b) The ordinance or order establishing the district must
203	203	designate:
204	204	(1) the district's territory as a defined area inside
205	205	the local government's boundaries in which property owners are
206	206	eligible to participate in contractual assessment agreements with
207	207	the district, which area may include all or any portion of the area
208	208	inside the local government's boundaries;
209	209	(2) five individuals to be the initial directors;
210	210	(3) the kinds of emissions management projects
211	211	eligible for financing by the district; and
212	212	(4) the date and time of a hearing on the creation of
213	213	the district.
214	214	Sec. 391.052. NATURE OF DISTRICT. A district is a special
215	215	district and a political subdivision of the state.
216	216	[Sections 391.053-391.100 reserved for expansion]
217	217	SUBCHAPTER C. GOVERNANCE
218	218	Sec. 391.101. BOARD OF DIRECTORS. The district is governed
219	219	by the board of five directors appointed by the governing body of
220	220	the local government.
221	221	Sec. 391.102. TERMS. Directors serve staggered two-year
222	222	terms, with two or three directors' terms expiring June 1 of each
223	223	year.
224	224	Sec. 391.103. QUALIFICATIONS OF DIRECTOR. To be qualified
225	225	to serve as a director, a person must be at least 18 years old and be
226	226	a resident of the district.
227	227	Sec. 391.104. VACANCIES; QUORUM. (a) A board vacancy is
228	228	filled in the same manner as the original appointment.
229	229	(b) A vacant board position is not counted for the purposes
230	230	of establishing a quorum of the board.
231	231	Sec. 391.105. CONFLICTS OF INTEREST. Chapter 171, Local
232	232	Government Code, governs conflicts of interest for directors.
233	233	Sec. 391.106. COMPENSATION. (a) For purposes of this
234	234	section, "performs the duties of a director" means substantial
235	235	performance of the management of the district's business, including
236	236	participation in board and committee meetings and other activities
237	237	involving the substantive deliberation of district business and in
238	238	pertinent educational programs, but does not include routine or
239	239	ministerial activities such as the execution of documents or
240	240	self-preparation for meetings.
241	241	(b) A local government is authorized to compensate a
242	242	director when the director performs the duties of a director. The
243	243	local government shall compensate a director not more than $50 a day
244	244	for each day the director performs the duties of a director.
245	245	Sec. 391.107. DIRECTOR'S BOND AND OATH. (a) As soon as
246	246	practicable after a director is appointed, the director shall
247	247	execute a $10,000 bond payable to the district and conditioned on
248	248	the faithful performance of the director's duties.
249	249	(b) Each director's bond must be approved by the board, and
250	250	each director shall take the oath of office prescribed by the
251	251	constitution for public officers.
252	252	(c) The bond and oath shall be filed with the district and
253	253	retained in its records.
254	254	Sec. 391.108. OFFICERS. After directors are appointed and
255	255	have qualified by executing a bond and taking the oath, they shall
256	256	organize by electing a president, a vice president, a secretary,
257	257	and any other officers the board considers necessary.
258	258	Sec. 391.109. RULES. The board may adopt rules to
259	259	administer and operate the district.
260	260	[Sections 391.110-391.150 reserved for expansion]
261	261	SUBCHAPTER D. POWERS AND DUTIES
262	262	Sec. 391.151. GENERAL POWERS AND DUTIES. A district may:
263	263	(1) guarantee or otherwise secure loans for the
264	264	purchase and installation of an emissions management project;
265	265	(2) enter into contractual assessment agreements
266	266	under Section 391.152 to finance the purchase and installation of
267	267	an emissions management project;
268	268	(3) make other innovative arrangements to finance the
269	269	purchase and installation of an emissions management project;
270	270	(4) lease equipment and materials for an emissions
271	271	management project to a property owner;
272	272	(5) issue bonds to finance district purposes under
273	273	Subchapter E; and
274	274	(6) apply for grants or other funding under the Texas
275	275	emissions reduction plan under Chapter 386.
276	276	Sec. 391.152. CONTRACTUAL ASSESSMENT AGREEMENTS. (a) A
277	277	district may enter into a contractual assessment agreement with an
278	278	owner of property in the area designated by the local government in
279	279	an order or ordinance under Section 391.051 to finance the purchase
280	280	and installation of an emissions management project for the owner's
281	281	property.
282	282	(b) The board by rule shall establish the terms of an
283	283	agreement under this chapter, including:
284	284	(1) the term of the assessments; and
285	285	(2) the rate of interest on the assessments.
286	286	(c) A contract under this section may allow the property
287	287	owner to directly:
288	288	(1) purchase the equipment and materials for the
289	289	installation of a renewable energy system or an energy efficiency
290	290	improvement; and
291	291	(2) contract for the installation of a renewable
292	292	energy system or energy efficiency improvement.
293	293	Sec. 391.153. ASSESSMENT ROLL. After the district and a
294	294	property owner enter into a contractual assessment agreement, the
295	295	board shall levy the assessments against the property. The board
296	296	shall have an assessment roll prepared showing the assessments
297	297	against each property. The assessment roll shall be filed with the
298	298	secretary of the board or other officer who performs the function of
299	299	secretary and be open for public inspection.
300	300	Sec. 391.154. INTEREST ON ASSESSMENTS; LIEN. (a)
301	301	Assessments bear interest at a rate specified by the board that may
302	302	not exceed the interest rate permitted under Chapter 1204,
303	303	Government Code.
304	304	(b) Interest on an assessment between the effective date of
305	305	the contract and the date the first installment and any related
306	306	penalty is payable shall be added to the first installment. The
307	307	interest or penalties on all unpaid installments shall be added to
308	308	each subsequent installment until paid.
309	309	(c) An assessment and any interest and penalties on that
310	310	assessment is a lien against the property until paid.
311	311	(d) The owner of any property assessed may at any time pay
312	312	the entire assessment against any lot or parcel with interest
313	313	accrued to the date of the payment.
314	314	Sec. 391.155. SUPPLEMENTAL ASSESSMENTS. After notice and
315	315	hearing in the manner required for original assessments, the board
316	316	may make supplemental assessments to correct an omission or mistake
317	317	in an assessment:
318	318	(1) relating to the total cost of the improvement
319	319	project or services; or
320	320	(2) covering delinquencies or costs of collection.
321	321	Sec. 391.156. NO EMINENT DOMAIN. A district may not
322	322	exercise the power of eminent domain.
323	323	[Sections 391.157-391.200 reserved for expansion]
324	324	SUBCHAPTER E. BONDS
325	325	Sec. 391.201. GENERAL OBLIGATION AND REVENUE BONDS. For the
326	326	payment of all or part of the costs of financing the purchase and
327	327	installation of emissions management projects, the board may issue
328	328	bonds in one or more series payable from and secured by assessments,
329	329	Texas emissions reduction plan grants or other funding, revenues,
330	330	grants, gifts, contracts, leases, or any combination of those
331	331	funds. Bonds may be liens on all or part of the revenue derived from
332	332	improvements authorized under this chapter, including installment
333	333	payments of special assessments, or from any other source pledged
334	334	to the payment of the bonds.
335	335	Sec. 391.202. TERMS AND CONDITIONS OF BONDS. (a) Bonds may
336	336	be issued to mature serially or otherwise not more than 40 years
337	337	from their date of issue. Provision may be made for the subsequent
338	338	issuance of additional parity bonds or subordinate lien bonds under
339	339	terms or conditions that may be stated in the order or resolution
340	340	authorizing the issuance of the bonds.
341	341	(b) The bonds are negotiable instruments within the meaning
342	342	and for purposes of the Business & Commerce Code.
343	343	(c) The bonds may be issued registrable as to principal
344	344	alone or as to both principal and interest, shall be executed, may
345	345	be made redeemable before maturity, may be issued in the form,
346	346	denominations, and manner and under the terms, conditions, and
347	347	details, may be sold in the manner, at the price, and under the
348	348	terms, and shall bear interest at the rates as determined and
349	349	provided in the order or resolution authorizing the issuance of the
350	350	bonds.
351	351	(d) Bonds may bear interest and may be issued in accordance
352	352	with Chapters 1201, 1204, and 1371, Government Code, and
353	353	Subchapters A-C, Chapter 1207, Government Code.
354	354	(e) If provided by the bond order or resolution, the
355	355	proceeds from the sale of bonds may be used to pay interest on the
356	356	bonds during and after the period of the acquisition or
357	357	construction of any emissions management project to be provided
358	358	through the issuance of the bonds, to pay administrative and
359	359	operation expenses to create a reserve fund for the payment of the
360	360	principal of and interest on the bonds, and to create any other
361	361	funds. The proceeds of the bonds may be placed on time deposit or
362	362	invested, until needed, in securities in the manner provided by the
363	363	bond order or resolution.
364	364	Sec. 391.203. PLEDGES. (a) The board may pledge all or part
365	365	of the income or assessments from emissions management projects
366	366	financed under this chapter or from any other source to the payment
367	367	of the bonds, including the payment of principal, interest, and any
368	368	other amounts required or permitted in connection with the bonds.
369	369	The pledged income shall be set and collected in amounts that will
370	370	be at least sufficient, with any other pledged resources, to
371	371	provide for all payments of principal, interest, and any other
372	372	amounts required in connection with the bonds and, to the extent
373	373	required by the order or resolution authorizing the issuance of the
374	374	bonds, to provide for the payment of expenses in connection with the
375	375	bonds and to pay operation, maintenance, and other expenses in
376	376	connection with the emissions management projects authorized under
377	377	this chapter.
378	378	(b) Bonds may be additionally secured by a mortgage or deed
379	379	of trust on real property relating to the emissions management
380	380	projects authorized under this chapter owned or to be acquired by
381	381	the district and by chattel mortgages, liens, or security interests
382	382	on personal property appurtenant to that real property. The board
383	383	may authorize the execution of trust indentures, mortgages, deeds
384	384	of trust, or other forms of encumbrance to evidence the
385	385	indebtedness.
386	386	(c) The board may pledge to the payment of the bonds all or
387	387	any part of any grant, donation, revenues, or income received or to
388	388	be received from the United States government or any other public or
389	389	private source.
390	390	Sec. 391.204. REFUNDING BONDS. (a) Bonds issued under this
391	391	chapter may be refunded or otherwise refinanced by the issuance of
392	392	refunding bonds under terms or conditions determined by order or
393	393	resolution of the board. Refunding bonds may be issued in amounts
394	394	necessary to pay the principal of and interest and redemption
395	395	premium, if any, on bonds to be refunded, at maturity or on any
396	396	redemption date, and to provide for the payment of costs incurred in
397	397	connection with the refunding.
398	398	(b) The refunding bonds shall be issued in the manner
399	399	provided by this chapter for other bonds.
400	400	Sec. 391.205. APPROVAL BY ATTORNEY GENERAL; REGISTRATION.
401	401	(a) The district shall submit bonds and the appropriate proceedings
402	402	authorizing their issuance to the attorney general for examination.
403	403	(b) If the bonds recite that they are secured by a pledge of
404	404	assessments, revenues, or rentals from a contract or lease, the
405	405	district also shall submit to the attorney general a copy of the
406	406	pledge, contract, or lease and the proceedings relating to it.
407	407	(c) If the attorney general finds that the bonds have been
408	408	authorized and any assessment, contract, or lease has been made in
409	409	accordance with law, the attorney general shall approve the bonds
410	410	and the assessment, contract, or lease, and the bonds shall be
411	411	registered by the comptroller.
412	412	(d) After approval and registration, the bonds and any
413	413	assessment, contract, or lease relating to them are incontestable
414	414	in any court or other forum for any reason and are valid and binding
415	415	obligations for all purposes in accordance with their terms.
416	416	Sec. 391.206. AUTHORIZED INVESTMENTS; SECURITY. (a)
417	417	District bonds are legal and authorized investments for:
418	418	(1) banks, trust companies, and savings and loan
419	419	associations;
420	420	(2) insurance companies;
421	421	(3) fiduciaries, trustees, and guardians; and
422	422	(4) all interest and sinking funds and other public
423	423	funds of the state and agencies, subdivisions, and
424	424	instrumentalities of the state, including counties,
425	425	municipalities, towns, villages, school districts, and all other
426	426	kinds and types of districts, public agencies, and bodies politic.
427	427	(b) District bonds are eligible and lawful security for
428	428	deposits of counties, municipalities, towns, villages, school
429	429	districts, and all other kinds and types of districts, public
430	430	agencies, and bodies politic, to the extent of the market value of
431	431	the bonds, when accompanied by any unmatured interest coupons
432	432	appurtenant to the bonds.
433	433	Sec. 391.207. LOCAL GOVERNMENT APPROVAL. (a) A district
434	434	must obtain the approval of the governing body of the local
435	435	government in which it is located for bond issues for emissions
436	436	management projects.
437	437	(b) Except as provided by Section 391.253, a local
438	438	government is not obligated to pay any bonds, notes, or other
439	439	obligations of the district.
440	440	[Sections 391.208-391.250 reserved for expansion]
441	441	SUBCHAPTER F. DISSOLUTION
442	442	Sec. 391.251. DISSOLUTION BY BOARD VOTE. Except as limited
443	443	by Section 391.253, the board by majority vote may dissolve the
444	444	district at any time.
445	445	Sec. 391.252. DISSOLUTION BY LOCAL GOVERNMENT. (a) Except
446	446	as limited by Section 391.253, the governing body of a local
447	447	government that created the district, by a vote of not less than
448	448	two-thirds of its membership, may by official action dissolve the
449	449	district.
450	450	(b) On the adoption of the ordinance or order, the district
451	451	is dissolved, and the local government succeeds to the property and
452	452	assets of the district and assumes all bonds, debts, obligations,
453	453	and liabilities of the district.
454	454	Sec. 391.253. LIMITATION. A district may not be dissolved
455	455	by its board or by a local government if the district has any
456	456	outstanding bonded indebtedness until that bonded indebtedness has
457	457	been repaid or defeased in accordance with the order or resolution
458	458	authorizing the issuance of the bonds.
459	459	SECTION 6. Section 372.003(b), Local Government Code, is
460	460	amended to read as follows:
461	461	(b) A public improvement project may include:
462	462	(1) landscaping;
463	463	(2) erection of fountains, distinctive lighting, and
464	464	signs;
465	465	(3) acquiring, constructing, improving, widening,
466	466	narrowing, closing, or rerouting of sidewalks or of streets, any
467	467	other roadways, or their rights-of-way;
468	468	(4) construction or improvement of pedestrian malls;
469	469	(5) acquisition and installation of pieces of art;
470	470	(6) acquisition, construction, or improvement of
471	471	libraries;
472	472	(7) acquisition, construction, or improvement of
473	473	off-street parking facilities;
474	474	(8) acquisition, construction, improvement, or
475	475	rerouting of mass transportation facilities;
476	476	(9) acquisition, construction, or improvement of
477	477	water, wastewater, or drainage facilities or improvements;
478	478	(10) the establishment or improvement of parks;
479	479	(11) projects similar to those listed in Subdivisions
480	480	(1)-(10);
481	481	(12) acquisition, by purchase or otherwise, of real
482	482	property in connection with an authorized improvement;
483	483	(13) special supplemental services for improvement
484	484	and promotion of the district, including services relating to
485	485	advertising, promotion, health and sanitation, water and
486	486	wastewater, renewable energy and energy efficiency, public safety,
487	487	security, business recruitment, development, recreation, and
488	488	cultural enhancement; [and]
489	489	(14) payment of expenses incurred in the
490	490	establishment, administration, and operation of the district; and
491	491	(15) acquisition, installation, or improvement of
492	492	renewable energy and energy efficiency improvements.
493	493	SECTION 7. Section 375.112(a), Local Government Code, is
494	494	amended to read as follows:
495	495	(a) An improvement project or services provided by the
496	496	district may include the construction, acquisition, improvement,
497	497	relocation, operation, maintenance, or provision of:
498	498	(1) landscaping; lighting, banners, and signs;
499	499	streets and sidewalks; pedestrian skywalks, crosswalks, and
500	500	tunnels; seawalls; marinas; drainage and navigation improvements;
501	501	pedestrian malls; solid waste, water, sewer, and power facilities,
502	502	including electrical, gas, steam, cogeneration, and chilled water
503	503	facilities; renewable energy and energy efficiency improvements;
504	504	parks, plazas, lakes, rivers, bayous, ponds, and recreation and
505	505	scenic areas; historic areas; fountains; works of art; off-street
506	506	parking facilities, bus terminals, heliports, and mass transit
507	507	systems; and the cost of any demolition in connection with
508	508	providing any of the improvement projects;
509	509	(2) other improvements similar to those described in
510	510	Subdivision (1);
511	511	(3) the acquisition of real property or any interest
512	512	in real property in connection with an improvement, project, or
513	513	services authorized by this chapter, Chapter 54, Water Code, or
514	514	Chapter 365 or 441, Transportation Code;
515	515	(4) special supplemental services for advertising,
516	516	economic development, promoting the area in the district, health
517	517	and sanitation, public safety, maintenance, security, business
518	518	recruitment, development, elimination or relief of traffic
519	519	congestion, recreation, and cultural enhancement; and
520	520	(5) expenses incurred in the establishment,
521	521	administration, maintenance, and operation of the district or any
522	522	of its improvements, projects, or services.
523	523	SECTION 8. Subchapter Z, Chapter 39, Utilities Code, is
524	524	amended by adding Section 39.9155 to read as follows:
525	525	Sec. 39.9155. SOLAR GENERATION INCENTIVE PROGRAM. (a) It is
526	526	the goal of the legislature that electric utilities administer
527	527	incentive programs for residential, commercial, and industrial
528	528	customers to increase the amount of solar generation installed in
529	529	this state in a cost-effective, market-neutral, and
530	530	nondiscriminatory manner, with a goal of installing at least 3,000
531	531	megawatts of solar generation in this state by 2020, at least 1,000
532	532	megawatts of which must be distributed generation.
533	533	(b) The commission by rule shall:
534	534	(1) establish a solar generation incentive program, to
535	535	be implemented by electric utilities, municipally owned electric
536	536	utilities, and electric cooperatives;
537	537	(2) oversee the implementation of the program required
538	538	by Subdivision (1); and
539	539	(3) establish procedures to achieve the goal
540	540	established by Subsection (a).
541	541	(c) The rules adopted under Subsection (b) must include
542	542	provisions for:
543	543	(1) a solar generation cost recovery factor to ensure
544	544	timely and reasonable cost recovery for electric utility
545	545	expenditures under this section;
546	546	(2) recovery of the cost of electric utility programs
547	547	through nonbypassable fees of not less than $0.000636 per kilowatt
548	548	hour for residential, commercial, and industrial customers;
549	549	(3) awarding incentive rebates in the first year of
550	550	the program of not less than:
551	551	(A) $2.40 per watt for residential installation;
552	552	(B) $1.50 per watt for commercial installation;
553	553	or
554	554	(C) $1.10 per watt for industrial installation;
555	555	(4) reducing the rebate amounts by not less than seven
556	556	percent annually;
557	557	(5) eliminating the incentive provided by electric
558	558	utilities under this subsection on the date the goals established
559	559	by Subsection (a) are achieved; and
560	560	(6) allowing a utility to collect up to five percent of
561	561	the awarded incentives for administrative costs.
562	562	(d) Electric utilities may not provide incentives under
563	563	this section for solar generation that is installed after the 10th
564	564	anniversary of the date on which the commission by rule establishes
565	565	the program required by this section.
566	566	SECTION 9. Section 386.051(b), Health and Safety Code, is
567	567	amended to read as follows:
568	568	(b) Under the plan, the commission and the comptroller shall
569	569	provide grants or other funding for:
570	570	(1) the diesel emissions reduction incentive program
571	571	established under Subchapter C, including for infrastructure
572	572	projects established under that subchapter;
573	573	(2) the motor vehicle purchase or lease incentive
574	574	program established under Subchapter D;
575	575	(3) the new technology research and development
576	576	program established under Chapter 387; [end]
577	577	(4) the clean school bus program established under
578	578	Chapter 390; and
579	579	(5) the plug-in hybrid motor vehicle rebate program
580	580	established under Subchapter G.
581	581	SECTION 10. Section 386.252(a), Health and Safety Code, is
582	582	amended to read as follows:
583	583	(a) Money in the fund may be used only to implement and
584	584	administer programs established under the plan and shall be
585	585	allocated as follows:
586	586	(1) for the diesel emissions reduction incentive
587	587	program, 87.5 percent of the money in the fund, of which not more
588	588	than four percent may be used for the clean school bus program,
589	589	[and] not more than 10 percent may be used for on-road diesel
590	590	purchase or lease incentives, and a portion determined by the
591	591	commission may be used for light-duty plug-in hybrid motor vehicle
592	592	rebates;
593	593	(2) for the new technology research and development
594	594	program, 9.5 percent of the money in the fund, of which up to
595	595	$250,000 is allocated for administration, up to $200,000 is
596	596	allocated for a health effects study, $500,000 is to be deposited in
597	597	the state treasury to the credit of the clean air account created
598	598	under Section 382.0622 to supplement funding for air quality
599	599	planning activities in affected counties, not less than 20 percent
600	600	is to be allocated each year to support research related to air
601	601	quality for the Houston-Galveston-Brazoria and Dallas-Fort Worth
602	602	nonattainment areas by a nonprofit organization based in Houston of
603	603	which $216,000 each year shall be contracted to the Energy Systems
604	604	Laboratory at the Texas Engineering Experiment Station for the
605	605	development and annual calculation of creditable statewide
606	606	emissions reductions obtained through wind and other renewable
607	607	energy resources for the State Implementation Plan, and the balance
608	608	is to be allocated each year to a nonprofit organization or an
609	609	institution of higher education based in Houston to be used to
610	610	implement and administer the new technology research and
611	611	development program under a contract with the commission for the
612	612	purpose of identifying, testing, and evaluating new
613	613	emissions-reducing technologies with potential for
614	614	commercialization in this state and to facilitate their
615	615	certification or verification; and
616	616	(3) for administrative costs incurred by the
617	617	commission and the laboratory, three percent of the money in the
618	618	fund.
619	619	SECTION 11. Chapter 386, Health and Safety Code, is amended
620	620	by adding Subchapter G to read as follows:
621	621	SUBCHAPTER G. PLUG-IN HYBRID MOTOR VEHICLE REBATE PROGRAM
622	622	Sec. 386.301. DEFINITIONS. In this subchapter:
623	623	(1) "Light-duty motor vehicle" and "motor vehicle"
624	624	have the meanings assigned by Section 386.151.
625	625	(2) "Plug-in hybrid motor vehicle" means a vehicle
626	626	that:
627	627	(A) draws motive power from a battery that:
628	628	(i) has a capacity of at least four
629	629	kilowatt-hours; and
630	630	(ii) can be recharged from an external
631	631	source of electricity; and
632	632	(B) is a light-duty motor vehicle.
633	633	Sec. 386.302. COMMISSION DUTIES REGARDING PLUG-IN HYBRID
634	634	MOTOR VEHICLE REBATE PROGRAM. (a) The commission shall develop a
635	635	rebate program for plug-in hybrid motor vehicles and shall adopt
636	636	rules necessary to implement the program.
637	637	(b) The program shall authorize statewide rebates for the
638	638	purchase of new plug-in hybrid motor vehicles for a purchaser who
639	639	agrees to register the vehicle in this state and operate the vehicle
640	640	in this state for not less than 75 percent of the vehicle's annual
641	641	mileage.
642	642	(c) Only one rebate may be provided for each new plug-in
643	643	hybrid motor vehicle.
644	644	Sec. 386.303. PLUG-IN HYBRID MOTOR VEHICLE REBATE. A new
645	645	plug-in hybrid motor vehicle is eligible for a $4,000 rebate.
646	646	Sec. 386.304. MODIFICATION OF REBATE. After evaluating new
647	647	technologies, the commission may change the rebate established by
648	648	Section 386.303 to improve the ability of the program to achieve its
649	649	goals, including a phaseout of the rebate based on the level of
650	650	market saturation of each vehicle, consistent with federal
651	651	regulations governing the phaseout, if any, of incentives for
652	652	hybrid vehicles.
653	653	Sec. 386.305. MANUFACTURER'S REPORT. Not later than July 1
654	654	of each year and before the beginning of the manufacturer's vehicle
655	655	model year, a manufacturer of motor vehicles shall provide to the
656	656	commission a list of the new plug-in hybrid motor vehicle models
657	657	that the manufacturer intends to sell in this state during that
658	658	model year. The manufacturer may supplement the list provided to
659	659	the commission under this section as necessary to include
660	660	additional new plug-in hybrid motor vehicle models the manufacturer
661	661	intends to sell in this state during the model year.
662	662	Sec. 386.306. LIST OF ELIGIBLE VEHICLES. (a) On August 1 of
663	663	each year, the commission shall publish a list of the new model
664	664	plug-in hybrid motor vehicles as listed for the commission under
665	665	Section 386.305. The commission shall publish and supplement that
666	666	list as necessary to include additional new plug-in hybrid motor
667	667	vehicle models listed in a supplement to the original list provided
668	668	by a manufacturer under Section 386.305.
669	669	(b) The commission shall distribute the list of eligible
670	670	plug-in hybrid motor vehicles to all new motor vehicle dealers in
671	671	this state.
672	672	Sec. 386.307. COMMISSION TO ACCOUNT FOR REBATES. (a) The
673	673	commission by rule shall develop a method to administer and account
674	674	for the plug-in hybrid motor vehicle rebates authorized by this
675	675	subchapter and to pay rebates to the purchaser of a new plug-in
676	676	hybrid motor vehicle on application of the purchaser as provided by
677	677	this subchapter.
678	678	(b) The commission shall develop and publish forms and
679	679	instructions for the purchaser of a new plug-in hybrid motor
680	680	vehicle to use in applying to the commission for a rebate under this
681	681	subchapter. The commission shall make the forms available to new
682	682	motor vehicle dealers. Dealers shall make the forms available to
683	683	their prospective purchasers.
684	684	(c) In addition to other forms developed and published under
685	685	this section, the commission shall develop and publish a
686	686	verification form by which, with information provided by the
687	687	dealer, the commission can verify the sale of a vehicle covered by
688	688	this subchapter. The verification form must include at least the
689	689	name of the purchaser, the vehicle identification number of the
690	690	vehicle involved, the date of the purchase, and the name of the new
691	691	motor vehicle dealer involved in the transaction. At the time of
692	692	sale of a vehicle eligible for a rebate under this subchapter, the
693	693	dealer shall complete the verification form supplied to the dealer
694	694	by the commission. The purchaser must include the completed
695	695	verification form as part of the purchaser's application for a
696	696	rebate. The dealer shall maintain a copy of the completed
697	697	verification form for at least two years from the date of the
698	698	transaction.
699	699	Sec. 386.308. SUSPENSION OF REBATES. (a) The commission
700	700	shall keep a record of plug-in hybrid motor vehicle rebate
701	701	applications and payments.
702	702	(b) If the balance of the money in the fund available for
703	703	plug-in hybrid motor vehicle rebates falls below 15 percent of the
704	704	total amount allocated for the rebates during a fiscal year, the
705	705	commission may suspend the rebates until the date the commission
706	706	can certify that the balance available in the fund for rebates is an
707	707	amount adequate to resume the rebates or until the beginning of the
708	708	next fiscal year, whichever is earlier. If the commission suspends
709	709	the rebates, the commission shall immediately notify all new motor
710	710	vehicle dealers that the rebates have been suspended.
711	711	(c) The commission shall establish a toll-free telephone
712	712	number available to motor vehicle dealers to call to verify that
713	713	rebates are available. The commission may provide for issuing
714	714	verification numbers over the telephone.
715	715	(d) Reliance by a dealer on information provided by the
716	716	commission is a complete defense to an action involving or based on
717	717	eligibility of a vehicle for a rebate or availability of vehicles
718	718	eligible for a rebate.
719	719	SECTION 12. Section 490.102, Government Code, is
720	720	amended to read as follows:
721	721	Sec. 490.102. ALLOCATION OF FUND. (a) Money appropriated to
722	722	the fund by the legislature, less amounts necessary to administer
723	723	the fund under Section 490.055, shall be allocated as follows:
724	724	(1) 50 percent of the money for incentives for
725	725	collaboration between certain entities as provided by Subchapter D;
726	726	(2) 16.67 percent of the money for research award
727	727	matching as provided by Subchapter E.
728	728	(3) 33.33 percent of the money for acquisition of
729	729	research superiority as provided by Subchapter F. No less than 70
730	730	percent of the funding allocated to research superiority should be
731	731	dedicated to the area of clean energy.
732	732	(b) The governor may reallocate money from one component of
733	733	the fund to another component subject to the prior approval of the
734	734	lieutenant governor and speaker of the house of representatives.
735	735	SECTION 13. Chapter 61, Education Code, is amended by
736	736	adding Subchapter FF to read as follows:
737	737	SUBCHAPTER FF. TEXAS COMPETITIVE KNOWLEDGE FUNDING
738	738	Sec. 61.9771. DEFINITIONS. In this subchapter:
739	739	(1) "Eligible institution" means an institution of higher
740	740	education designed as a research university or emerging research
741	741	university under the board's accountability system.
742	742	Sec. 61.9772. PURPOSE. The purpose of this subchapter is to
743	743	provide funding to research universities and emerging research
744	744	universities for the recruitment and retention of highly qualified
745	745	faculty and the enhancement of research productivity at those
746	746	universities.
747	747	Sec. 61.9773. FUNDING. (a) For each state fiscal year, the
748	748	board shall distribute any funds appropriated by the legislature
749	749	for the purposes of this subchapter, and any other funds made
750	750	available for the purposes of this subchapter, to eligible
751	751	institutions as follows:
752	752	(1) 80 percent to be distributed among eligible
753	753	institutions based on the average amount of total research funds
754	754	expended by each institution annually during the three most recent
755	755	state fiscal years, according to the following rates:
756	756	(A) $1 million for every $10 million of the
757	757	average annual amount of those research funds expended by the
758	758	institution in areas other than renewable energy or energy storage,
759	759	if the average annual amount of total research funds expended by the
760	760	institution is $50 million or more; and
761	761	(B) $4 million for every $10 million of the
762	762	average annual amount of those research funds expended by the
763	763	institution in the areas of renewable energy and energy storage, if
764	764	the average annual amount of total research funds expended by the
765	765	institution is $50 million or more; and
766	766	(2) 10 percent to be distributed among eligible
767	767	institutions in proportion to the average number of degrees awarded
768	768	by each institution annually during the two most recent state
769	769	fiscal years; and
770	770	(3) 10 percent to be distributed among eligible
771	771	institutions in proportion to the percentage increase, if any, in
772	772	the average number of degrees awarded by each institution annually
773	773	in the two most recent fiscal years from the average number of
774	774	degrees awarded by that institution annually in the two fiscal
775	775	years immediately preceding those fiscal years.
776	776	(c) For purposes of Subsection (a)(1), "Energy Storage"
777	777	means any device or facility capable of storing electricity that
778	778	was either taken off of the grid or recently generated for the
779	779	purpose of future use or distribution.
780	780	(d) For the purposes of Subsection (a)(1), "Renewable
781	781	Energy" means energy generated using technology that relies on an
782	782	energy source that is naturally regenerated over a short time and
783	783	derived directly from the sun, indirectly form the sun, or from
784	784	moving water or other natural movements and mechanisms of the
785	785	environment. Renewable energy technologies include those that rely
786	786	on energy derived directly from the sun, on wind, geothermal,
787	787	hydroelectric, wave, or tidal energy, or on biomass or
788	788	biomass-based waste products, including landfill gas. For the
789	789	purposes of this section, any energy derived from fossil fuels used
790	790	in the generation process must be less than 25% of the total energy
791	791	generated by that process.
792	792	(e) For purposes of Subsection (a)(1), the amount of
793	793	restricted research funds expended by an eligible institution in a
794	794	state fiscal year is the amount of those funds as reported to the
795	795	board by the institution for that fiscal year, subject to any
796	796	adjustment by the board in accordance with the standards and
797	797	accounting methods the board prescribes for purposes of this
798	798	section. If the funds available for distribution for a state fiscal
799	799	year under Subsection (a)(1) are not sufficient to provide the
800	800	amount specified by Subsection (a)(1) for each eligible institution
801	801	or exceed the amount sufficient for that purpose, the available
802	802	amount shall be distributed in proportion to the total amount to
803	803	which each institution is otherwise entitled under Subsection
804	804	(a)(1).
805	805	SECTION 14. The Texas Workforce Commission shall adopt
806	806	rules for the program under Subchapter C, Chapter 490D, Government
807	807	Code, as added by this Act, not later than March 1, 2010.
808	808	SECTION 15. Implementation of the program under Subchapter
809	809	C, Chapter 490D, Government Code, as added by this Act, is
810	810	contingent on appropriation of funding by the legislature.
811	811	SECTION 16. As soon as practicable after the effective date
812	812	of this Act, but not later than January 1, 2010, the Public Utility
813	813	Commission of Texas shall adopt rules establishing the solar
814	814	generation incentive program required by Section 39.9155,
815	815	Utilities Code, as added by this Act.
816	816	SECTION 17. Not later than January 1, 2010, the Texas
817	817	Commission on Environmental Quality shall adopt rules under
818	818	Subchapter G, Chapter 386, Health and Safety Code, as added by this
819	819	Act.
820	820	SECTION 18. This Act takes effect September 1, 2009.
821	821	SECTION 19. The Texas Higher Education Coordinating Board
822	822	shall adopt rules relating to the administration of Subchapter FF,
823	823	Chapter 61, Education Code, as added by this Act, as soon as
824	824	practicable after the effective date of this Act.
825	825	SECTION 20. This act takes effect September 1, 2009.