Texas 2009 - 81st Regular

Texas Senate Bill SB631 Compare Versions

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11 81R1709 TRH-D
22 By: Davis, Wendy S.B. No. 631
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the establishment of a loan incentive program to
88 promote energy efficiency in apartment buildings.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Section 39.002, Utilities Code, is amended to
1111 read as follows:
1212 Sec. 39.002. APPLICABILITY. This chapter, other than
1313 Sections 39.155, 39.157(e), 39.203, 39.903, 39.904, 39.9051,
1414 39.9052, [and] 39.914(e), and 39.918, does not apply to a
1515 municipally owned utility or an electric cooperative. Sections
1616 39.157(e), 39.203, and 39.904, however, apply only to a municipally
1717 owned utility or an electric cooperative that is offering customer
1818 choice. If there is a conflict between the specific provisions of
1919 this chapter and any other provisions of this title, except for
2020 Chapters 40 and 41, the provisions of this chapter control.
2121 SECTION 2. Subchapter Z, Chapter 39, Utilities Code, is
2222 amended by adding Section 39.918 to read as follows:
2323 Sec. 39.918. ENERGY EFFICIENCY IMPROVEMENT LOAN PROGRAM FOR
2424 APARTMENT BUILDINGS. (a) The commission by rule shall develop a
2525 no-interest loan program to promote energy efficiency improvements
2626 in apartment buildings. The commission shall administer the
2727 program using money appropriated expressly for the program.
2828 (b) To be eligible for a loan under the program, an
2929 applicant must:
3030 (1) be an owner of an existing multi-unit apartment
3131 building; and
3232 (2) use the loan for installation of an appliance or
3333 equipment designed to reduce demand for energy in the apartment
3434 building or for a renovation or repair intended to reduce demand for
3535 energy in the apartment building.
3636 (c) The commission by rule shall specify:
3737 (1) the types of appliances, equipment, renovations,
3838 and repairs for which a loan may be made under the program; and
3939 (2) the types of apartment buildings for which a loan
4040 may be made under the program.
4141 (d) Loan payments received by the commission shall be
4242 remitted to the comptroller to be credited to the general revenue
4343 fund. The commission by rule shall establish the manner in which
4444 loans are repaid to the commission. The rules must provide that
4545 each loan be repaid:
4646 (1) over a period determined by the commission:
4747 (A) by a surcharge on the electricity bills of
4848 the rental units improved through loan proceeds, if the building's
4949 rental units are separately submetered and billed directly by a
5050 utility provider; or
5151 (B) by a surcharge on the electricity bill of the
5252 building's owner, if the building's rental units are not separately
5353 submetered or billed directly by a utility provider;
5454 (2) according to a formula:
5555 (A) based on the difference between total monthly
5656 energy costs after improvements are made and the estimated monthly
5757 energy costs if the improvements had not been made;
5858 (B) that allocates loan repayment costs in a
5959 submetered apartment building, or an apartment building that uses
6060 central system utilities in which the building owner prorates
6161 utility costs among tenants, only to those rental units that are
6262 directly improved using loan proceeds;
6363 (C) that allows the tenant of an improved unit in
6464 a separately submetered apartment building, or the tenant of an
6565 improved unit in an apartment building using central system
6666 utilities in which the building owner prorates utility costs among
6767 tenants, to realize at least 40 percent of the energy cost savings
6868 computed in Paragraph (A); and
6969 (D) that allows the owner of an apartment
7070 building using central system utilities in which the owner does not
7171 prorate utility costs among tenants to realize at least 40 percent
7272 of the energy cost savings computed in Paragraph (A); and
7373 (3) by periodic assessments against the recipient of
7474 the loan, determined according to the amount owed and the
7575 building's property tax valuation, if, before the loan is fully
7676 repaid, the building is sold, is no longer leased to tenants, or is
7777 destroyed.
7878 SECTION 3. Not later than December 1, 2009, the Public
7979 Utility Commission of Texas shall establish the energy efficiency
8080 improvement loan program under Section 39.918, Utilities Code, as
8181 added by this Act, and the commission shall begin accepting
8282 applications for loans under that program not later than January 1,
8383 2010.
8484 SECTION 4. This Act takes effect immediately if it receives
8585 a vote of two-thirds of all the members elected to each house, as
8686 provided by Section 39, Article III, Texas Constitution. If this
8787 Act does not receive the vote necessary for immediate effect, this
8888 Act takes effect September 1, 2009.