84R7704 JAM-F By: Anchia H.B. No. 2392 A BILL TO BE ENTITLED AN ACT relating to the establishment of a residential energy efficiency loan program. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 386.252(a), Health and Safety Code, is amended to read as follows: (a) Money in the fund may be used only to implement and administer programs established under the plan. Money appropriated to the commission to be used for the programs under Section 386.051(b) shall be allocated as follows: (1) not more than four percent may be used for the clean school bus program under Chapter 390; (2) not more than three percent may be used for the new technology implementation grant program under Chapter 391, from which at least $1 million will be set aside for electricity storage projects related to renewable energy; (3) five percent shall be used for the clean fleet program under Chapter 392; (4) not more than $3 million may be used by the commission to fund a regional air monitoring program in commission Regions 3 and 4 to be implemented under the commission's oversight, including direction regarding the type, number, location, and operation of, and data validation practices for, monitors funded by the program through a regional nonprofit entity located in North Texas having representation from counties, municipalities, higher education institutions, and private sector interests across the area; (5) not less than 16 percent shall be used for the Texas natural gas vehicle grant program under Chapter 394; (6) not more than five percent may be used to provide grants for natural gas fueling stations under the clean transportation triangle program under Section 394.010; (7) not more than five percent may be used for the Texas alternative fueling facilities program under Chapter 393; (8) a specified amount may be used each year to support research related to air quality as provided by Chapter 387; (9) not more than $200,000 may be used for a health effects study; (10) $500,000 is to be deposited in the state treasury to the credit of the clean air account created under Section 382.0622 to supplement funding for air quality planning activities in affected counties; (11) at least $4 million and up to four percent to a maximum of $7 million, whichever is greater, is allocated to the commission for administrative costs; (12) at least two percent and up to five percent of the fund is to be used by the commission for the drayage truck incentive program established under Subchapter D-1; (13) not more than five percent may be used for the light-duty motor vehicle purchase or lease incentive program established under Subchapter D; (14) not more than $216,000 is allocated to the commission to contract with the Energy Systems Laboratory at the Texas Engineering Experiment Station annually for the development and annual computation of creditable statewide emissions reductions obtained through wind and other renewable energy resources for the state implementation plan; (15) 1.5 percent of the money in the fund is allocated for administrative costs incurred by the laboratory; [and] (15-a) not less than $3 million shall be used for the energy efficiency loan guarantee program under Section 388.013; and (16) the balance is to be used by the commission for the diesel emissions reduction incentive program under Subchapter C as determined by the commission. SECTION 2. Chapter 388, Health and Safety Code, is amended by adding Section 388.013 to read as follows: Sec. 388.013. ENERGY EFFICIENCY LOAN GUARANTEE PROGRAM. (a) The comptroller and the State Energy Conservation Office by rule shall establish and administer a program that issues or guarantees loans to be used for improvements that increase the energy efficiency of residences that are not newly constructed. (b) Rules adopted under this section must establish eligibility requirements for receipt of a loan issued or guaranteed under this section, including emissions reduction cost-effectiveness criteria. (c) The State Energy Conservation Office shall annually submit to the commission and the laboratory a report that: (1) evaluates the effectiveness of the program established under this section; and (2) quantifies energy savings and emissions reductions as a result of this program for consideration in the state implementation plan for emissions reduction credit. SECTION 3. Section 389.002, Health and Safety Code, is amended to read as follows: Sec. 389.002. USE OF CERTAIN INFORMATION FOR FEDERAL RECOGNITION OF EMISSIONS REDUCTIONS. The commission, using information derived from the reports to the commission under Sections 386.205, 388.003(e), [and] 388.006, and 388.013, shall take all appropriate and necessary actions so that emissions reductions achieved by means of activities under Chapters 386 and 388 are credited by the United States Environmental Protection Agency to the appropriate emissions reduction objectives in the state implementation plan. SECTION 4. 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, 2015.