82R7129 KFF-F By: Rodriguez H.B. No. 2077 A BILL TO BE ENTITLED AN ACT relating to a pilot program under the loanstar revolving loan program to promote the use of energy efficiency measures and renewable energy technology by certain nonprofit organizations. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter D, Chapter 2305, Government Code, is amended by adding Section 2305.0322 to read as follows: Sec. 2305.0322. PILOT REVOLVING LOAN PROGRAM FOR ENERGY EFFICIENCY MEASURES AND RENEWABLE ENERGY TECHNOLOGY BY CERTAIN NONPROFIT ORGANIZATIONS. (a) The legislature finds that promoting the implementation of energy efficiency measures and renewable energy technology is necessary to protect the public health and environment of this state and that the up-front cost of implementing those improvements often prevents some in the private sector, especially certain nonprofit organizations, from making the improvements. To make the implementation of energy efficiency measures and renewable energy technology by certain nonprofit organizations more affordable, it is necessary to provide alternative means of financing those improvements. Therefore, the legislature finds that a public purpose will be served by establishing a pilot program that provides loans to community-based organizations and houses of worship to finance the implementation of energy efficiency measures and renewable energy technology in the buildings owned and operated by those organizations. (b) In this section: (1) "Community-based organization" has the meaning assigned by Section 535.001. (2) "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. (3) "House of worship" means a nonprofit corporation or association that: (A) is operated through a religious or denominational organization, including an organization that is operated for religious, educational, or charitable purposes and that is operated, supervised, or controlled, wholly or partly, by or in connection with a religious organization; or (B) clearly demonstrates through the organization's mission statement, policies, or practices that the organization is guided or motivated by religion. (4) "Pilot program" means the pilot program established under this section to provide loans to houses of worship and community-based organizations to finance the implementation of energy efficiency measures and renewable energy technology in buildings owned or operated by those organizations. (5) "Renewable energy technology" has the meaning assigned by Section 39.904(d), Utilities Code. (c) Notwithstanding the requirement that the energy office provide loans under the loanstar revolving loan program to finance energy and water efficiency measures for public facilities, the energy office shall establish and administer a pilot program under the loanstar revolving loan program established under Section 2305.032 to provide loans to houses of worship and community-based organizations to finance the implementation of energy efficiency measures and renewable energy technology in buildings owned or operated by those organizations. (d) Not later than January 1 of each year, the energy office shall submit a report to the legislature that includes: (1) a brief description of: (A) the implementation and status of the pilot program; (B) the energy efficiency measures or renewable energy technologies financed under the pilot 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; (2) recommendations for addressing any challenges or obstacles encountered in financing the implementation of energy efficiency measures and renewable energy technologies under the pilot program; and (3) any additional information the office determines necessary. (e) This section expires December 31, 2015. SECTION 2. The state energy conservation office shall establish the pilot program required under Section 2305.0322, Government Code, as added by this Act, not later than March 1, 2012. 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, 2011.