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.