HBA-NMO H.B. 2600 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2600
By: Dukes
Energy Resources
4/8/1999
Introduced



BACKGROUND AND PURPOSE 

Current law provides few financial incentives for builders to construct
energy efficient housing, homeowners to improve the energy efficiency of
their homes, or landlords to upgrade the energy efficiency of their
properties.  Increasing the efficiency of energy consumption in Texas may
have significant impacts on both the state's air quality and energy
resources, as well as providing consumers with lower utility bills.  H.B.
2600 establishes the Texas Energy Assistance Loan Program as a voluntary
program that provides incentives for increasing the energy efficiency of
new and existing residential housing, and agricultural equipment.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the state energy conservation office of
the General Services Commission in SECTION 1 (Sections 2305.101, 2305.102,
2305.105, Health and Safety Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 2305, Government Code, by adding Subchapter F,
as follows: 

SUBCHAPTER F.  TEXAS ENERGY ASSISTANCE 
LOAN PROGRAM

Sec. 2305.101.  DEFINITIONS.  Defines "cost-effective."  Defines  "energy
efficiency improvement" as a durable and serviceable modification to the
design of a structure or piece of agricultural equipment that results in a
measurable decrease in energy consumption by the structure or piece of
equipment, or other energy conservation measures the  state energy
conservation office of the General Services Commission (energy office) is
authorized to establish, by rule.  Defines "energy efficient improvement
loan," "energy efficient mortgage," "program," and "residential housing." 

Sec. 2305.102.  TEXAS ENERGY ASSISTANCE LOAN PROGRAM.  Requires the energy
office to implement and maintain the Texas Energy Assistance Loan Program
(program). Requires the energy office, under the program, to provide
certain services.  Requires the energy office to establish a system for
monitoring and evaluating the program.  Requires the energy office to
consult with other appropriate state agencies to ensure coordination and
avoid duplication of activities authorized under this subchapter.
Authorizes the energy office to adopt rules necessary to implement this
subchapter. 

Sec. 2305.103.  FUNDS.  Requires the energy office to fund projects and
initiative under this subchapter from funds available under this chapter.
Requires the energy office to maximize procurement of funds from
alternative sources. 

Sec. 2305.104.  VOLUNTARY PARTICIPATION.  Requires the energy office to
promote voluntary participation in the program from certain persons. 

Sec. 2305.105.  VOLUNTARY PARTICIPATION GUIDELINES.  Requires the energy
office annually, by rule, to issue for use by certain entities voluntary
participation guidelines  for energy-efficient residential construction to
enable and encourage the assignment of uniform energy efficiency ratings to
residential housing and agricultural equipment.  Sets forth requirements of
the voluntary participation guidelines. 

Sec. 2305.106.  ADVISORY TASK FORCE.  Requires the energy office, in
developing the guidelines and procedures, to consult with an advisory task
force composed of certain stakeholders. 

Sec. 2305.107.  HOMEBUYER MORTGAGE PROJECT.  Requires the energy office to
develop and implement a project design for delivering energy efficiency
mortgage loans to consumers who purchase energy-efficient residential
housing.  Sets forth requirements of the design. 

Sec. 2305.108.  ENERGY EFFICIENCY IMPROVEMENT PROJECT.  Requires the energy
office to develop and implement a project design for delivering energy
efficient improvement loans to property owners who make cost-effective
energy efficiency improvements to residential housing.  Sets forth
requirements of the design.  

Sec. 2305.109.  AGRICULTURAL EQUIPMENT MORTGAGE PROJECT.   Requires the
energy office to develop and implement a project design for delivering
energy efficient improvement loans to owners of agricultural equipment who
make energy efficiency improvements to the equipment.  Sets forth
requirements of the design. 

Sec. 2305.110.  HOME RATING AND MORTGAGE MARKETING PROJECT.  Requires the
energy office to develop and implement a project design for marketing the
home rating system developed under Section 2305.105, the delivery of energy
efficiency mortgages, and energy efficiency improvement loans.  Provides
that the design must specify how the General Services Commission will
coordinate and market the home rating system, the loans, and the program. 

SECTION 2.  Effective date: September 1, 1999.  Requires the energy office
to deliver the first set of guidelines required by Section 2305.105 not
later than January 1, 2000. 

SECTION 3.  Emergency clause.