88R13248 ANG-D
By: Toth H.B. No. 4370
A BILL TO BE ENTITLED
AN ACT
relating to the abolishment of the State Energy Conservation Office
and the transfer of its functions to the comptroller.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 44.902(d), Education Code, is amended to
read as follows:
(d) The board of trustees may submit the plan required under
Subsection (a) to the comptroller [State Energy Conservation
Office] for the purposes of determining whether funds available
through loan programs administered by the comptroller [office] or
tax incentives administered by the state or federal government are
available to the district. The board may not disallow any proper
allocation of incentives.
SECTION 2. Section 51.927(i), Education Code, is amended to
read as follows:
(i) An energy savings performance contract shall be let
according to the procedures established for procuring certain
professional services by Section 2254.004, Government
Code. Notice of the request for qualifications shall be given in
the manner provided by Section 2156.002, Government Code. The
Texas Higher Education Coordinating Board, in consultation with the
comptroller [State Energy Conservation Office with regard to energy
and water conservation measures], shall establish guidelines and an
approval process for awarding energy savings performance
contracts. The guidelines must require that the cost savings
projected by an offeror be reviewed by a licensed professional
engineer who has a minimum of three years of experience in energy
calculation and review, is not an officer or employee of an offeror
for the contract under review, and is not otherwise associated with
the contract. In conducting the review, the engineer shall focus
primarily on the proposed improvements from an engineering
perspective, the methodology and calculations related to cost
savings, increases in revenue, and, if applicable, efficiency or
accuracy of metering equipment. An engineer who reviews a contract
shall maintain the confidentiality of any proprietary information
the engineer acquires while reviewing the contract. [A contract is
not required to be reviewed or approved by the State Energy
Conservation Office.] Sections 1001.053 and 1001.407, Occupations
Code, apply to work performed under the contract.
SECTION 3. Section 55.115(b), Education Code, is amended to
read as follows:
(b) A building, structure, or other facility to which this
section applies must be designed and constructed or renovated so
that the building, structure, or other facility complies with
high-performance building standards, approved by the board of
regents of the institution, that provide minimum requirements for
energy use, natural resources use, and indoor air quality. [In
approving high-performance building standards, a board of regents
shall consider, but is not subject to, the high-performance
building evaluation system approved by the state energy
conservation office under Section 447.004, Government Code, and may
solicit and consider recommendations from the advisory committee
appointed under that section.]
SECTION 4. Section 109.203(a), Education Code, as added by
Chapter 941 (S.B. 601), Acts of the 87th Legislature, Regular
Session, 2021, is amended to read as follows:
(a) The agency advisory council is composed of
representatives of the:
(1) Department of Agriculture;
(2) General Land Office;
(3) Parks and Wildlife Department;
(4) Railroad Commission of Texas;
(5) [State Energy Conservation Office;]
[(6)] Texas Commission on Environmental Quality;
(6) [(7)] Texas Economic Development and Tourism
Office within the office of the governor; and
(7) [(8)] Texas Water Development Board.
SECTION 5. Section 403.404, Government Code, is amended to
read as follows:
Sec. 403.404. ESTABLISHMENT OF GREEN JOB SKILLS GRANT
PROGRAM. The comptroller shall establish a green job skills grant
program, funded by the development fund under Section 403.403,
through which the comptroller may award grants in cooperation with
the Texas Workforce Commission [through the State Energy
Conservation Office] for the implementation, expansion, and
operation of green job skills training programs.
SECTION 6. Sections 2166.402(a) and (b), Government Code,
are amended to read as follows:
(a) The governing body of a state agency, commission, or
institution that is exempt from this chapter under Section 2166.003
shall adopt and publish energy or water conservation design
standards [as provided by Section 447.004] for a new building under
the entity's authority. The standards must be:
(1) consistent with those adopted by the commission
for other state buildings; and
(2) prepared in cooperation and consultation with the
comptroller [state energy conservation office].
(b) The comptroller [state energy conservation office]
shall assist the governing body of a state agency, commission, or
institution subject to Subsection (a) in preparing energy
conservation standards by providing technical assistance and
advice.
SECTION 7. Section 2166.403(b-2), Government Code, is
amended to read as follows:
(b-2) In each detailed written evaluation under Subsection
(b), the commission or governing body shall determine economic
feasibility for each function by comparing the estimated cost of
providing energy for all or part of the function using conventional
design practices and energy systems or operating under conventional
architectural or engineering designs with the estimated cost of
providing energy for all or part of the function using alternative
energy devices or operating under alternative energy-efficient
architectural or engineering designs during the economic life of
the building. The comptroller [comptroller's state energy
conservation office, or its successor,] must approve any
methodology or electronic software used by the commission or
governing body, or an entity contracting with the commission or
governing body, to make a comparison or determine feasibility under
this subsection.
SECTION 8. Sections 2166.406(i) and (l), Government Code,
are amended to read as follows:
(i) An energy savings performance contract shall be let
according to the procedures established for procuring certain
professional services by Section 2254.004. Notice of the request
for qualifications shall be given in the manner provided by Section
2156.002. The comptroller [State Energy Conservation Office]
shall establish guidelines and an approval process for awarding
energy savings performance contracts. The guidelines adopted
under this subsection must require that the cost savings projected
by an offeror be reviewed by a licensed professional engineer who
has a minimum of three years of experience in energy calculation and
review, is not an officer or employee of an offeror for the contract
under review, and is not otherwise associated with the
contract. In conducting the review, the engineer shall focus
primarily on the proposed improvements from an engineering
perspective, the methodology and calculations related to cost
savings, increases in revenue, and, if applicable, efficiency or
accuracy of metering equipment. An engineer who reviews a contract
shall maintain the confidentiality of any proprietary information
the engineer acquires while reviewing the contract. An energy
savings performance contract may not be entered into unless the
contract has been approved by the comptroller [State Energy
Conservation Office]. Sections 1001.053 and 1001.407, Occupations
Code, apply to work performed under the contract.
(l) The guidelines adopted under Subsection (i) must
require the comptroller [State Energy Conservation Office] to:
(1) review any reports submitted to the comptroller
[office] that measure and verify cost savings to a state agency
under an energy savings performance contract; and
(2) based on the reports, provide an analysis, on a
periodic basis, of the cost savings under the energy savings
performance contract to the state agency and the Legislative Budget
Board until the state agency determines that the analysis is no
longer required to accurately measure cost savings.
SECTION 9. The heading to Section 2305.011, Government
Code, is amended to read as follows:
Sec. 2305.011. ADMINISTRATION BY COMPTROLLER'S OFFICE [AND
ENERGY OFFICE].
SECTION 10. Sections 2305.011(a), (b), (c), and (d),
Government Code, are amended to read as follows:
(a) The comptroller [energy office] shall oversee and
monitor the administration of programs prescribed by this chapter.
(b) The governor and the comptroller [energy office] may
establish direct grant programs and competitive grant programs in
addition to the programs provided by this chapter.
(c) The comptroller [energy office] shall establish
programs and criteria and evaluate a proposal in accordance with
applicable federal guidelines.
(d) The comptroller [energy office] shall send to the
appropriate federal entity all information required under
applicable federal guidelines.
SECTION 11. Section 2305.012, Government Code, is amended
to read as follows:
Sec. 2305.012. ADMINISTRATION; ASSISTANCE. (a) The
comptroller [energy office] shall implement and administer this
chapter.
(b) The comptroller [energy office] or the governor
[through the energy office] may enlist the assistance of a private
entity or a state agency, department, commission, or other entity
to:
(1) evaluate or review a proposal;
(2) audit a program participant or a supervising state
agency;
(3) perform administrative duties under this chapter;
or
(4) develop eligibility or evaluation criteria.
SECTION 12. The heading to Section 2305.023, Government
Code, is amended to read as follows:
Sec. 2305.023. ACCOUNT RECORDS; COMPTROLLER [ENERGY
OFFICE] REPORT.
SECTION 13. Section 2305.023(b), Government Code, is
amended to read as follows:
(b) Not later than January 15 of each odd-numbered year, the
comptroller [energy office] shall submit to the governor and the
legislature a biennial report that shows the expenditures from the
account during the previous biennium and the amount remaining in
the account on the date of the report.
SECTION 14. Section 2305.031, Government Code, is amended
to read as follows:
Sec. 2305.031. OIL OVERCHARGE PROGRAMS. The comptroller
[energy office] shall maintain a revolving loan program for the
benefit of state agencies, universities, and political
subdivisions. The comptroller [energy office] shall use oil
overcharge funds for the programs and purposes in this subchapter.
SECTION 15. Sections 2305.032(a), (b), and (f), Government
Code, are amended to read as follows:
(a) The comptroller [energy office] under the loanstar
revolving loan program may provide loans to finance energy and
water efficiency measures for public facilities.
(b) The comptroller [energy office] shall determine the
terms under which a loan may be made under this section and shall
set the interest rate for a loan at a low rate that the comptroller
[energy office] determines is sufficient to recover the cost of
administering the loan program.
(f) The comptroller [energy office] shall allocate at least
$95 million, including loan commitments and cash on hand, to the
loanstar program and shall administer the funds under its control
in a manner that assures that funds available to the loanstar
program equal or exceed $95 million at all times.
SECTION 16. Sections 2305.033(a) and (b), Government Code,
are amended to read as follows:
(a) The comptroller [energy office] is the supervising
state agency for the state energy program.
(b) In accordance with Part D, Title III, Energy Policy and
Conservation Act (42 U.S.C. Section [Sec.] 6321 et seq.), and its
subsequent amendments, the comptroller [energy office], under the
program, shall distribute funds for projects that save measurable
quantities of energy.
SECTION 17. Sections 2305.035(a) and (b), Government Code,
are amended to read as follows:
(a) The comptroller [energy office] is the supervising
state agency for the alternative fuels program.
(b) The comptroller [energy office] shall provide funds
under the program to promote, facilitate, and support the use of
alternative fuels in this state.
SECTION 18. Sections 2305.036(a), (b), and (f), Government
Code, are amended to read as follows:
(a) The comptroller [energy office] is the supervising
state agency for the housing partnership program.
(b) The comptroller [energy office] shall promote the
efficient use of energy in Texas residential housing through
grants, partnerships, and loans.
(f) The comptroller [energy office] may require grant
recipients to match a grant in a ratio determined by the comptroller
[energy office].
SECTION 19. Section 2305.037, Government Code, is amended
to read as follows:
Sec. 2305.037. INNOVATIVE ENERGY DEMONSTRATION
PROGRAM. (a) The comptroller [energy office] is the supervising
state agency of the innovative energy demonstration program and
shall distribute grant money under the program for demonstration
projects that develop sustainable and innovative energy resources,
including:
(1) a clean coal project, as defined by Section 5.001,
Water Code;
(2) a gasification project for a coal and biomass
mixture;
(3) photovoltaic, biomass, wind, and solar
applications; and
(4) other appropriate low-emission, renewable, and
sustainable energy applications.
(b) Contingent on the selection of a Texas site for the
location of the coal-based integrated sequestration and hydrogen
project to be built in partnership with the United States
Department of Energy, commonly referred to as the FutureGen
project, and to the extent that funds are appropriated for this
purpose, the comptroller [energy office] shall distribute to the
managing entity of the FutureGen project an amount equal to 50
percent of the total amount invested in the project by private
industry sources. The managing entity of the FutureGen project
shall provide records as considered necessary by the comptroller
[energy office] to justify grants under this
subsection. Cumulative distributions under this subsection may
not exceed $20 million.
(c) The comptroller [energy office] may require a grant
recipient under the program to match a grant in a ratio determined
by the comptroller [energy office].
SECTION 20. Section 2305.038(a), Government Code, is
amended to read as follows:
(a) The comptroller [energy office] is the supervisory
agency for the local government energy program to provide energy
management assistance to public schools, health care institutions,
and other local governments.
SECTION 21. Sections 2305.039(a) and (c), Government Code,
are amended to read as follows:
(a) The comptroller [energy office] is the supervising
state agency of the transportation energy program and shall
distribute funds under the program for projects relating to mass
transit and other transportation services.
(c) The comptroller [energy office] may require a grant
recipient to match a grant in a ratio determined by the comptroller
[energy office].
SECTION 22. Sections 2305.075(a) and (b), Government Code,
are amended to read as follows:
(a) The comptroller [energy office] is the supervising
state agency for the small hospitals energy management program.
(b) The comptroller [energy office] shall use competitive
grant money under the program to finance projects designed to
assist small hospitals in controlling energy costs.
SECTION 23. Section 2306.6725(b), Government Code, is
amended to read as follows:
(b) The department shall provide appropriate incentives as
determined through the qualified allocation plan to reward
applicants who agree to:
(1) equip the development that is the basis of the
application with energy saving devices that meet applicable [the]
standards [established by the state energy conservation office] or
provide to a qualified entity, in a land use restriction agreement
in accordance with Section 2306.6726, a right of first refusal to
purchase the development at the minimum price provided in, and in
accordance with the requirements of, Section 42(i)(7), Internal
Revenue Code of 1986 (26 U.S.C. Section 42(i)(7)); and
(2) locate the development in a census tract in which
there are no other existing developments supported by housing tax
credits.
SECTION 24. Section 2306.252(b), Government Code, is
amended to read as follows:
(b) The department, through the center, shall:
(1) provide educational material prepared in plain
language to housing advocates, housing sponsors, borrowers, and
tenants;
(2) provide technical assistance to nonprofit housing
sponsors;
(3) assist in the development of housing policy,
including the annual state low income housing plan and report and
the consolidated plan; and
(4) provide, in cooperation with the [state energy
conservation office, the] Texas Commission on Environmental
Quality[,] and other governmental entities, information on the use
of sustainable and energy efficient housing construction products
and assist local governments and nonprofits in identifying
information on sustainable and energy efficient housing
construction and energy efficient resources and techniques.
SECTION 25. Section 2311.002(b), Government Code, is
amended to read as follows:
(b) The comptroller [State Energy Conservation Office]
shall establish guidelines for the evaluation under Subsection (a).
SECTION 26. Sections 388.003(a), (b), (b-2), (b-3), and
(c), Health and Safety Code, are amended to read as follows:
(a) To achieve energy conservation in single-family
residential construction, the energy efficiency chapter of the
International Residential Code, as it existed on May 1, 2001, is
adopted as the energy code in this state for single-family
residential construction. On September 1, 2016, the energy
efficiency chapter of the International Residential Code, as it
existed on May 1, 2015, is adopted as the energy code in this state
for single-family residential construction. On or after September
1, 2021, the comptroller [State Energy Conservation Office] may
adopt and substitute for that energy code the latest published
edition of the energy efficiency chapter of the International
Residential Code, based on written findings on the stringency of
the chapter submitted by the laboratory under Subsection
(b-3). The comptroller [office]:
(1) may not adopt an edition under this subsection
more often than once every six years; and
(2) by rule shall establish an effective date for an
adopted edition that is not earlier than nine months after the date
of adoption.
(b) To achieve energy conservation in all other
residential, commercial, and industrial construction, the
International Energy Conservation Code as it existed on May 1,
2001, is adopted as the energy code for use in this state for all
other residential, commercial, and industrial construction. The
comptroller [State Energy Conservation Office] may adopt and
substitute for that energy code the latest published edition of the
International Energy Conservation Code, based on written findings
on the stringency of the edition submitted by the laboratory under
Subsection (b-3). The comptroller [office] by rule shall
establish an effective date for an adopted edition that is not
earlier than nine months after the date of adoption.
(b-2) The comptroller [State Energy Conservation Office] by
rule shall establish a procedure for persons who have an interest in
the adoption of energy codes under Subsection (a) or (b) to have an
opportunity to comment on the codes under consideration. The
comptroller [office] shall consider persons who have an interest in
adoption of those codes to include:
(1) commercial and residential builders, architects,
and engineers;
(2) municipal, county, and other local government
authorities;
(3) environmental groups; and
(4) manufacturers of building materials and products.
(b-3) The laboratory shall:
(1) submit to the comptroller [State Energy
Conservation Office] written findings on the stringency of the
latest published edition of the International Residential Code
energy efficiency provisions only if the date of the edition allows
the comptroller [office] to adopt the edition under Subsection
(a)(1);
(2) submit to the comptroller [State Energy
Conservation Office] written findings on the stringency of the
latest published edition of the International Energy Conservation
Code not later than six months after publication of a new edition;
and
(3) in developing the findings, consider the comments
submitted under Subsection (b-2).
(c) A municipality shall establish procedures:
(1) for the administration and enforcement of the
codes;
(2) to ensure that code-certified inspectors shall
perform inspections and enforce the code in the inspectors'
jurisdictions; and
(3) to track and report to the comptroller [state
energy conservation office] on implementation of the codes.
SECTION 27. Sections 388.005(d), (e), and (f), Health and
Safety Code, are amended to read as follows:
(d) A political subdivision, institution of higher
education, or state agency that does not attain the goals
established under Subsection (c) must include in the report
required by Subsection (e) justification that the entity has
already implemented all available cost-effective measures. An
entity that submits a report under this subsection indicating that
the entity has reviewed its available options, has determined that
no additional measures are cost-effective, and has already
implemented all available cost-effective measures is exempt from
the annual reporting requirement of Subsection (e) if a subsequent
report would indicate no change in status. [An entity may be
required to provide notice that it is exempt to the State Energy
Conservation Office.]
(e) A political subdivision, institution of higher
education, or state agency annually shall report to the comptroller
[State Energy Conservation Office], on forms provided by the
comptroller [that office], regarding the entity's goal, the
entity's efforts to meet the goal, and progress the entity has made
under this section. The comptroller [State Energy Conservation
Office] shall provide assistance and information to the entity to
help the entity meet goals established under this section. The
comptroller [office] must develop and make available a standardized
form for reporting purposes.
(f) This section does not apply to a state agency or an
institution of higher education that the comptroller [State Energy
Conservation Office] determines, before September 1, 2007, adopted
a plan for conserving energy under which the agency or institution
established a percentage goal for reducing the consumption of
electricity. The exemption provided by this section applies only
while the agency or institution has an energy conservation plan in
effect and only if the agency or institution submits reports on the
conservation plan each year to the governor, the Legislative Budget
Board, and the comptroller [State Energy Conservation Office].
SECTION 28. Section 388.006, Health and Safety Code, is
amended to read as follows:
Sec. 388.006. [STATE ENERGY CONSERVATION OFFICE]
EVALUATION BY COMPTROLLER. The comptroller [State Energy
Conservation Office] annually shall provide the laboratory with an
evaluation of the effectiveness of state and political subdivision
energy efficiency programs, including programs under this
chapter. The laboratory shall calculate, based on the evaluation
and the forms submitted to the comptroller [office], the amount of
energy savings and estimated reduction in pollution achieved as a
result of the implementation of programs. The laboratory shall
share the information with the commission, the United States
Environmental Protection Agency, and the Electric Reliability
Council of Texas to help with long-term forecasting and in
estimating pollution reduction.
SECTION 29. Section 302.001(9-a), Local Government Code, is
amended to read as follows:
(9-a) "Pilot program" means a pilot program operated
by the Energy Systems Laboratory at the Texas A&M Engineering
Experiment Station, in consultation with the Texas Facilities
Commission [and the State Energy Conservation Office], that:
(A) establishes and implements energy efficiency
improvements to state-owned buildings maintained by the
commission;
(B) generates savings in utility costs resulting
from the improvements resulting in at least a 30 percent annual
return on the costs of the improvements;
(C) provides for the participation of not fewer
than two companies selected by the commission; and
(D) provides for any money attributable to
utility cost savings resulting from the pilot program to be
appropriated only to the commission.
SECTION 30. Section 39.905(b-3), Utilities Code, is amended
to read as follows:
(b-3) Beginning not later than January 1, 2008, the
commission, in consultation with the comptroller [State Energy
Conservation Office], annually for a period of five years shall
compute and report to ERCOT the projected energy savings and demand
impacts for each entity in the ERCOT region that administers
standard offer programs, market transformation programs, combined
heating and power technology, demand response programs, solar
incentive programs, appliance efficiency standards, energy
efficiency programs in public buildings, and any other relevant
programs that are reasonably anticipated to reduce electricity
energy or peak demand or that serve as substitutes for electric
supply.
SECTION 31. Sections 39.9051(f) and (g), Utilities Code,
are amended to read as follows:
(f) Beginning April 1, 2012, a municipally owned utility
must report each year to the comptroller [State Energy Conservation
Office], on a standardized form developed by the comptroller
[office], information regarding the combined effects of the energy
efficiency activities of the utility from the previous calendar
year, including the utility's annual goals, programs enacted to
achieve those goals, and any achieved energy demand or savings
goals.
(g) The comptroller [State Energy Conservation Office]
shall provide the reports made under Subsection (f) to the Energy
Systems Laboratory at the Texas Engineering Experiment Station of
The Texas A&M University System. The laboratory shall calculate
the energy savings and estimated pollution reductions that resulted
from the reported activities.
SECTION 32. Sections 39.9052(b) and (c), Utilities Code,
are amended to read as follows:
(b) Beginning April 1, 2012, an electric cooperative that
had retail sales of more than 500,000 megawatt hours in 2005 must
report each year to the comptroller [State Energy Conservation
Office], on a standardized form developed by the comptroller
[office], information regarding the combined effects of the energy
efficiency activities of the electric cooperative from the previous
calendar year, including the electric cooperative's annual goals,
programs enacted to achieve those goals, and any achieved energy
demand or savings goals.
(c) The comptroller [State Energy Conservation Office]
shall provide the reports made under Subsection (b) to the Energy
Systems Laboratory at the Texas Engineering Experiment Station of
The Texas A&M University System. The laboratory shall calculate
the energy savings and estimated pollution reductions that resulted
from the reported activities.
SECTION 33. Section 39.911, Utilities Code, is amended to
read as follows:
Sec. 39.911. ALTERNATIVE FUNDING FOR ENERGY EFFICIENCY AND
RENEWABLE ENERGY SYSTEMS. The comptroller [State Energy
Conservation Office], in coordination with the governor, the
Department of Agriculture, the Texas Commission on Environmental
Quality, the Texas Education Agency, the commission, and other
appropriate state agencies, shall solicit gifts, grants, and other
financial resources available to fund energy efficiency
improvements and renewable energy systems for public and private
facilities in this state.
SECTION 34. Section 39.914(e), Utilities Code, is amended
to read as follows:
(e) A municipally owned utility or electric cooperative
shall consider and complete the determinations regarding net
metering service as provided by the federal Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. Section 2601 et seq., as
amended by the federal Energy Policy Act of 2005 (Pub. L.
No. 109-58)) after proceedings conducted in accordance with that
law. A municipally owned utility or electric cooperative shall
report the determinations made under this subsection to the
comptroller [State Energy Conservation Office] and include in that
report information regarding metering electricity generated by
solar panels on public school building rooftops.
SECTION 35. The following provisions are repealed:
(1) Section 55.115(c), Education Code;
(2) Chapter 447, Government Code;
(3) Section 2165.057(b), Government Code;
(4) Section 2305.002(3), Government Code; and
(5) Section 2305.034, Government Code.
SECTION 36. (a) On the effective date of this Act, the State
Energy Conservation Office is abolished.
(b) The validity of an action taken by or in connection with
the authority of the State Energy Conservation Office before the
date the agency is abolished is not affected by the abolition.
SECTION 37. On the effective date of this Act:
(1) all powers and duties of the State Energy
Conservation Office are transferred to the comptroller of public
accounts;
(2) a rule, form, policy, procedure, or decision of
the State Energy Conservation Office continues in effect as a rule,
form, policy, procedure, or decision of the comptroller of public
accounts until superseded by an act of the comptroller;
(3) a reference in law to the State Energy
Conservation Office means the comptroller of public accounts;
(4) any action or proceeding before the State Energy
Conservation Office is transferred without change in status to the
comptroller of public accounts and the comptroller assumes, without
a change in status, the position of the State Energy Conservation
Office in any action or proceeding to which the State Energy
Conservation Office is a party;
(5) all money, contracts, leases, rights, bonds, and
obligations of the State Energy Conservation Office are transferred
to the comptroller of public accounts;
(6) all personal property, including records, in the
custody of the State Energy Conservation Office becomes the
property of the comptroller of public accounts; and
(7) all funds appropriated by the legislature to the
State Energy Conservation Office are transferred to the comptroller
of public accounts.
SECTION 38. This Act takes effect September 1, 2023.