CHAPTER 447. STATE ENERGY CONSERVATION OFFICE

GOVERNMENT CODE

TITLE 4. EXECUTIVE BRANCH

SUBTITLE D. HISTORY, CULTURE, AND EDUCATION

CHAPTER 447. STATE ENERGY CONSERVATION OFFICE

Sec. 447.001. GOVERNANCE AND GENERAL AUTHORITY. The state

energy conservation office:

(1) is under the direction and control of the comptroller;

(2) shall promote the policies enumerated in this chapter; and

(3) may act in any capacity authorized by state or federal law.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 52, art. 2, Sec. 1,

eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 612,

Sec. 1, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 526, Sec.

7, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 698, Sec. 4,

eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch. 573, Sec. 10, eff.

Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1158, Sec. 28, eff. June

15, 2001; Acts 2001, 77th Leg., ch. 1398, Sec. 1, eff. Sept. 1,

2001. Reenacted and amended by Acts 2003, 78th Leg., ch. 1310,

Sec. 29, eff. June 20, 2003.

Sec. 447.002. INFORMATION; PROCEDURES AND RULES; MEASURES AND

PROGRAMS. (a) The state energy conservation office shall

develop and provide energy and water conservation information for

the state.

(b) The state energy conservation office may establish

procedures and adopt rules relating to the development and

implementation of energy and water conservation measures and

programs applicable to state buildings and facilities.

(c) A procedure established or a rule adopted under Subsection

(b) may include provisions relating to:

(1) the retrofitting of existing state buildings and facilities

with energy-saving or water-saving devices; and

(2) the energy-related or water-related renovation of those

buildings and facilities.

(d) To the extent that the governor receives money appropriated

for energy and water efficiency measures and programs, the

governor, through the state energy conservation office, shall

implement measures and programs that the state energy

conservation office identifies as encouraging energy or water

conservation by state government.

(e) A state agency shall implement an energy or water

conservation measure or program in accordance with plans

developed under Section 447.009.

(f) The state energy conservation office shall coordinate all

water conservation-related activities with the Texas Water

Development Board. The board shall assist the office in the

development of all proposed water conservation and reuse

requirements and provide training and expertise to the office

regarding water conservation issues.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 52, art. 2, Sec. 1,

eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 612,

Sec. 1, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 76, Sec.

5.95(50), eff. Sept. 1, 1995; Acts 2001, 77th Leg., ch. 573, Sec.

10, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1158, Sec. 28,

eff. June 15, 2001; Acts 2001, 77th Leg., ch. 1398, Sec. 1, eff.

Sept. 1, 2001. Reenacted and amended by Acts 2003, 78th Leg., ch.

1310, Sec. 29, eff. June 20, 2003.

Sec. 447.003. LIAISON TO FEDERAL GOVERNMENT. The state energy

conservation office is the state liaison to the federal

government for the implementation and administration of federal

programs relating to state agency energy matters. The office

shall administer state programs established under:

(1) Part D, Title III, Energy Policy and Conservation Act (42

U.S.C. Section 6321 et seq.), and its subsequent amendments;

(2) Part G, Title III, Energy Policy and Conservation Act (42

U.S.C. Section 6371 et seq.), and its subsequent amendments; and

(3) other federal energy conservation programs as assigned to

the office by the governor or the legislature.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 52, art. 2, Sec. 1,

eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 612,

Sec. 1, eff. Sept. 1, 1989; Acts 2001, 77th Leg., ch. 573, Sec.

10, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1158, Sec. 28,

eff. June 15, 2001; Acts 2001, 77th Leg., ch. 1398, Sec. 1, eff.

Sept. 1, 2001. Reenacted and amended by Acts 2003, 78th Leg., ch.

1310, Sec. 29, eff. June 20, 2003.

Sec. 447.004. DESIGN STANDARDS. (a) The state energy

conservation office shall establish and publish mandatory energy

and water conservation design standards for each new state

building or major renovation project, including a new building or

major renovation project of a state-supported institution of

higher education. The office shall define "major renovation

project" for purposes of this section and shall review and update

the standards biennially.

(b) The standards established under Subsection (a) must:

(1) include performance and procedural standards for the maximum

energy and water conservation allowed by the latest and most

cost-effective technology that is consistent with the

requirements of public health, safety, and economic resources;

(2) be stated in terms of energy and water consumption levels;

(3) consider the various types of building uses; and

(4) allow for design flexibility.

(c) Any procedural standard established under this section must

be directed toward specific design and building practices that

produce good thermal resistance and low infiltration and toward

requiring practices in the design of mechanical and electrical

systems that maximize energy and water efficiency. The procedural

standards must address, as applicable:

(1) insulation;

(2) lighting;

(3) ventilation;

(4) climate control;

(5) water-conserving fixtures, appliances, and equipment or the

substitution of non-water-using fixtures, appliances, and

equipment;

(6) water-conserving landscape irrigation equipment;

(7) landscaping measures that reduce watering demands and

capture and hold applied water and rainfall, including:

(A) landscape contouring, including the use of berms, swales,

and terraces; and

(B) the use of soil amendments that increase the water-holding

capacity of the soil, including compost;

(8) rainwater harvesting equipment and equipment to make use of

water collected as part of a storm-water system installed for

water quality control;

(9) equipment for recycling or reusing water originating on the

premises or from other sources, including treated municipal

effluent;

(10) equipment needed to capture water from nonconventional,

alternate sources, including air conditioning condensate or

graywater, for nonpotable uses;

(11) metering equipment needed to segregate water use in order

to identify water conservation opportunities or verify water

savings;

(12) special energy requirements of health-related facilities of

higher education and state agencies; and

(13) any other item that the state energy conservation office

considers appropriate.

(c-1) The procedural standards adopted under this section must

require that on-site reclaimed system technologies, including

rainwater harvesting, condensate collection, or cooling tower

blow down, or a combination of those system technologies, for

nonpotable indoor use and landscape watering be incorporated into

the design and construction of:

(1) each new state building with a roof measuring at least

10,000 square feet; and

(2) any other new state building for which the incorporation of

such systems is feasible.

(c-2) The procedural standards required by Subsection (c-1) do

not apply to a building if the state agency or institution of

higher education constructing the building:

(1) determines that compliance with those standards is

impractical; and

(2) notifies the state energy conservation office of the

determination and provides to the office documentation supporting

the determination.

(d) A state agency or an institution of higher education shall

submit a copy of its design and construction manuals to the state

energy conservation office as the office considers necessary to

demonstrate compliance by the agency or institution with the

standards established under this section.

(e) A state agency may not begin construction of a new state

building or a major renovation project before the design

architect or engineer for the construction or renovation has:

(1) certified to the appropriate authority having jurisdiction

that the construction or renovation complies with:

(A) the standards established under this section; and

(B) the alternative energy and energy-efficient architectural

and engineering design evaluation requirements under Sections

2166.401, 2166.403, and 2166.408; and

(2) provided to the appropriate authority having jurisdiction

and the state energy conservation office copies of:

(A) each certification under Subdivision (1); and

(B) any written evaluation or detailed economic feasibility

study prepared in accordance with Section 2166.401, 2166.403, or

2166.408.

(f) An institution of higher education may not begin

construction of a new state building or a major renovation

project before the design architect or engineer for the

construction or renovation has:

(1) certified to the institution of higher education that the

construction or renovation complies with the standards

established under this section; and

(2) provided to the state energy conservation office a copy of

that certification.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 52, art. 2, Sec. 1,

eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 612,

Sec. 1, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 76, Sec.

5.95(50), eff. Aug. 28, 1995; Acts 1995, 74th Leg., ch. 526, Sec.

8, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 698, Sec. 5,

eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch. 573, Sec. 10, eff.

Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1158, Sec. 28, eff. June

15, 2001; Acts, 2001, 77th Leg., ch. 1398, Sec. 1, eff. Sept. 1,

2001. Reenacted and amended by Acts 2003, 78th Leg., ch. 1310,

Sec. 29, eff. June 20, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

856, Sec. 1, eff. June 17, 2005.

Acts 2007, 80th Leg., R.S., Ch.

1352, Sec. 10, eff. September 1, 2009.

Acts 2007, 80th Leg., R.S., Ch.

1430, Sec. 2.27, eff. September 1, 2009.

Sec. 447.005. ENERGY AND WATER EFFICIENCY PROJECTS. Subject to

applicable state and federal laws or guidelines, the state energy

conservation office may:

(1) implement an energy or water efficiency project at a state

agency; or

(2) assist the agency in implementing the project through an

energy or water efficiency program.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 52, art. 2, Sec. 1,

eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 612,

Sec. 1, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 526, Sec.

9, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 698, Sec. 6,

eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch. 573, Sec. 10, eff.

Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1158, Sec. 28, eff. June

15, 2001; Acts 2001, 77th Leg., ch. 1398, Sec. 1, eff. Sept. 1,

2001. Reenacted and amended by Acts 2003, 78th Leg., ch. 1310,

Sec. 29, eff. June 20, 2003.

Sec. 447.006. ADDITIONAL ENERGY AND WATER SERVICES. (a) The

state energy conservation office may provide additional energy

and water services, including:

(1) training of designated state employees in energy and water

management, energy-accounting techniques, water-accounting

techniques, and energy efficient and water efficient design and

construction;

(2) technical assistance regarding energy efficient and water

efficient capital improvements, energy efficient and water

efficient building design, and cogeneration and thermal storage

investments;

(3) technical assistance to the state auditor or a state agency

regarding energy and water management performance audits and the

monitoring of utility bills to detect billing errors;

(4) technical assistance to a state agency regarding third-party

financing of an energy efficient and water efficient capital

improvement project; and

(5) other energy-related and water-related assistance that the

office considers appropriate, if the assistance is requested by a

state agency, an institution of higher education, a consortium of

institutions of higher education, or another governmental entity

created by state law.

(b) Using available state, federal, or oil overcharge funds, the

state energy conservation office may provide technical assistance

to a state agency or an institution of higher education in

analyzing or negotiating rates for electricity or natural gas

supplies from a locally certificated electric supplier, a natural

gas supplier, or a state-owned energy resource, including a

transportation charge for natural gas.

(c) A state agency or an institution of higher education may

request the assistance of the state energy conservation office

before negotiating or contracting for the supply or

transportation of natural gas or electricity.

(d) A state agency or an institution of higher education with

expertise in rate analysis, negotiation, or any other matter

related to the procurement of electricity and natural gas

supplies from a locally certificated electric supplier, a natural

gas supplier, or a state-owned energy resource may assist the

state energy conservation office whenever practicable. The

attorney general on request shall assist the office and other

state agencies and institutions of higher education in

negotiating rates for electricity and other terms of electric

utility service.

(e) Using available funds from any source, the state energy

conservation office may assist a state agency, an institution of

higher education, a consortium of institutions of higher

education, or another governmental entity created by state law to

further the goals and pursue the policies of the state in energy

research as may be determined by the governor or the legislature.

The office may assist a state agency in implementing current

federal energy policy.

(f) The state energy conservation office on request may

negotiate rates for electricity and other terms of electric

utility service for a state agency or an institution of higher

education. The office also may negotiate the rates and the other

terms of service for a group of agencies or institutions in a

single contract.

(g) The state energy conservation office may analyze the rates

for electricity charged to and the amount of electricity used by

state agencies and institutions of higher education to determine

ways the state could obtain lower rates and use less electricity.

Each state agency, including the Public Utility Commission of

Texas, and institution of higher education shall assist the

office in obtaining the information the office needs to perform

its analysis.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 52, art. 2, Sec. 1,

eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 612,

Sec. 1, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 526, Sec.

9, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 698, Sec. 6,

eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch. 573, Sec. 10, eff.

Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1158, Sec. 28, eff. June

15, 2001; Acts 2001, 77th Leg., ch. 1398, Sec. 1, eff. Sept. 1,

2001. Redesignated from Government Code Sec. 447.008 and

reenacted and amended by Acts 2003, 78th Leg., ch. 1310, Sec. 29,

eff. June 20, 2003.

Sec. 447.007. ENERGY AND WATER AUDITS. (a) The state energy

conservation office may audit a state-owned building used by a

state agency to assist the agency in reducing energy and water

consumption and costs through improved energy and water

efficiency.

(b) Based on any audit performed under Subsection (a), the state

energy conservation office may recommend changes to improve

energy and water efficiency.

(c) Each state agency or institution of higher education shall

review and audit utility billings and contracts to detect billing

errors. Any contract with a private person to conduct the review

or audit must comply with all applicable provisions of Subchapter

A, Chapter 2254, regarding professional services contracts. The

contract may not be awarded on a contingent fee basis unless the

governor determines that the contract is necessary, reasonable,

and prudent.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 52, art. 2, Sec. 1,

eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 612,

Sec. 1, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 526, Sec.

9, eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 698, Sec. 6,

eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch. 573, Sec. 10, eff.

Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1158, Sec. 28, eff. June

15, 2001; Acts 2001, 77th Leg., ch. 1398, Sec. 1, eff. Sept. 1,

2001. Redesignated from Government Code Sec. 447.009 and

reenacted and amended by Acts 2003, 78th Leg., ch. 1310, Sec. 29,

eff. June 20, 2003.

Sec. 447.008. ENERGY-SAVING AND WATER-SAVING DEVICES OR

MEASURES. (a) On approval by the state energy conservation

office, a state agency that reduces its energy or water expenses

may use any funds saved by the agency from appropriated utility

funds for the purchase of an energy-saving or water-saving device

or measure. For purposes of this section, "energy-saving or

water-saving device or measure" means a device or measure that

directly reduces:

(1) energy or water costs; or

(2) the energy or water consumption of equipment, including a

lighting, heating, ventilation, air-conditioning system, or other

water-using system, without materially altering the quality of

the equipment.

(b) A state agency, in accordance with the recommendations of an

energy or water audit, may purchase energy-saving and

water-saving devices or measures from appropriated utility funds

if the savings in utility funds projected by the audit will

offset the purchase. The agency shall retain in its files a copy

of the recommendation and repayment schedule as evidence of the

projected savings.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 52, art. 2, Sec. 1,

eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 612,

Sec. 1, eff. Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 176, Sec.

1, eff. Sept. 1, 1991; Acts 1995, 74th Leg., ch. 526, Sec. 10,

eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 698, Sec. 7, eff.

Aug. 28, 1995; Acts 1997, 75th Leg., ch. 1206, Sec. 23, eff.

Sept. 1, 1997; Acts 2001, 77th Leg., ch. 573, Sec. 10, eff. Sept.

1, 2001; Acts 2001, 77th Leg., ch. 1158, Sec. 28, eff. June 15,

2001; Acts 2001, 77th Leg., ch. 1398, Sec. 1, eff. Sept. 1, 2001.

Redesignated from Government Code Sec. 447.010 and reenacted and

amended by Acts 2003, 78th Leg., ch. 1310, Sec. 29, eff. June 20,

2003.

Sec. 447.009. ENERGY AND WATER MANAGEMENT PLANNING. (a) The

state energy conservation office shall provide energy and water

management planning assistance to a state agency or an

institution of higher education, including:

(1) preparation by the agency or institution of a long-range

plan for the delivery of reliable, cost-effective utility

services for the state agency or institution;

(2) assistance to the Department of Public Safety for energy

emergency contingency planning, using state or federal funds when

available;

(3) assistance to each state agency or institution of higher

education in preparing comprehensive energy and water management

plans; and

(4) assistance to state agencies other than institutions of

higher education in meeting the requirements of Section 447.002,

including assistance in scheduling and assigning priorities to

implementation plans to ensure that state agencies adopt

qualified cost-effective efficiency measures and programs for all

state facilities not later than September 1, 2006.

(b) A state agency or an institution of higher education shall

develop the plan described in Subsection (a)(1) and submit the

plan to the state energy conservation office upon request. The

agency or institution shall use the plan in preparing its

five-year construction and major renovation plans. After other

energy-saving or water-saving alternatives are considered,

district heating and cooling or on-site generation of electricity

may be considered in planning for reliable, efficient, and

cost-effective utility services.

(c) The state energy conservation office shall prepare

guidelines for preparation of the plan described in Subsection

(a)(3). A state agency or an institution of higher education that

occupies a state-owned building shall prepare and implement a

five-year energy and water management plan and shall submit that

plan to the office upon request. The agency or institution shall

update its plan biennially. A state agency or an institution of

higher education that occupies a building not owned by the state

shall cooperate with the office in addressing the energy or water

management of that building.

(d) The comprehensive energy and water management plan described

in Subsection (a)(3) shall be included in the five-year

construction and major repair and rehabilitation plans for

institutions of higher education as required by Section 61.0651,

Education Code.

Added by Acts 1987, 70th Leg., 2nd C.S., ch. 52, art. 2, Sec. 1,

eff. Sept. 1, 1987. Amended by Acts 1989, 71st Leg., ch. 612,

Sec. 1, eff. Sept. 1, 1989; Acts 1995, 74th Leg., ch. 76, Sec.

5.95(45), eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 698, Sec.

8, eff. Aug. 28, 1995; Acts 2001, 77th Leg., ch. 573, Sec. 10,

eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1158, Sec. 28, eff.

June 15, 2001; Acts 2001, 77th Leg., ch. 1398, Sec. 1, eff. Sept.

1, 2001. Redesignated from Government Code Sec. 447.011 and

reenacted and amended by Acts 2003, 78th Leg., ch. 1310, Sec. 29,

eff. June 20, 2003.

Sec. 447.010. FUEL SAVINGS FOR STATE AGENCIES. (a) In this

section and in Section 447.011:

(1) "Cost-effective" means resulting in fuel consumption

reduction with a projected savings in fuel cost over a one-year

period that exceeds the cost of purchasing and using a

technology.

(2) "Fuel-saving technology" means a:

(A) device containing no lead metal that is installed on a motor

vehicle or non-road diesel and that has been proven to reduce

fuel consumption per mile or per hour of operation by at least

five percent;

(B) fuel additive registered in accordance with 40 C.F.R. Part

79 that contains no known mutagenic materials and that has been

proven to reduce fuel consumption per mile or per hour of

operation by at least five percent; or

(C) fuel registered in accordance with 40 C.F.R. Part 79 that

contains no known mutagenic materials and that has been proven to

reduce fuel consumption per mile or per hour of operation by at

least five percent.

(3) "Motor vehicle" and "non-road diesel" have the meanings

assigned by Section 386.101, Health and Safety Code.

(4) "Proven fuel-saving technologies" means technologies shown

to reduce fuel use by at least five percent in:

(A) an Environmental Protection Agency fuel economy federal test

protocol test performed at a laboratory recognized by the

Environmental Protection Agency;

(B) a fuel economy test performed in accordance with protocols

and at testing laboratories or facilities recognized by the state

energy conservation office, the Texas Commission on Environmental

Quality, or the Environmental Protection Agency; or

(C) a field demonstration performed in accordance with Section

447.011.

(b) A state agency with 10 or more motor vehicles or non-road

diesels shall reduce the total fuel consumption of the vehicles

or diesels by at least five percent from fiscal year 2002

consumption levels through the use of cost-effective proven

fuel-saving technologies.

(c) A state agency may delay reducing fuel use as described in

this section until a list of proven fuel-saving technologies is

provided by the state energy conservation office as provided by

Section 447.011.

(d) A state agency may not purchase or use as a fuel-saving

technology a technology that:

(1) is known to increase oxides of nitrogen emissions or toxic

air contaminants;

(2) may be reasonably concluded to degrade air quality or human

health or to negatively impact the environment; or

(3) is known to affect negatively the manufacturer's warranty of

a motor vehicle or a non-road diesel.

(e) A state agency may purchase cost-effective proven

fuel-saving technologies out of the agency's fuel budget.

(f) A state agency shall competitively evaluate similar

fuel-saving technologies.

(g) A state agency may require a seller of a fuel-saving

technology to refund the cost of the technology if it is

determined to be ineffective at reducing fuel use by at least

five percent before the 91st day after the date the technology is

first used by the agency.

(h) A state agency may use fuel-saving technologies that the

agency determines are cost-effective and may use a fuel-saving

technology in applications that provide other benefits, including

emissions reductions.

(i) A state agency may establish a program for agency employees

to voluntarily:

(1) purchase fuel-saving technologies; and

(2) document reductions in fuel savings and air emissions.

(j) A state agency shall annually report to the state energy

conservation office on a form provided by the office on the state

agency's efforts and progress under this section.

(k) This section does not apply to an institution of higher

education as defined by Section 61.003, Education Code.

Added by Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 5.01, eff.

Jan. 11, 2004.

Sec. 447.011. FIELD DEMONSTRATIONS. (a) Under the direction of

the state energy conservation office, the Texas Department of

Transportation shall demonstrate the effectiveness of at least

four fuel-saving technologies on a combined maximum of 100 motor

vehicles or non-road diesels in accordance with this section to

determine the fuel-saving technologies that may cost-effectively

reduce fuel consumption and save state revenue.

(b) The Texas Department of Transportation shall select varying

ages and types of motor vehicles and non-road diesels to

demonstrate the fuel-saving technologies and shall give a

preference to high-use motor vehicles and non-road diesels in the

selection.

(c) The Texas Department of Transportation shall demonstrate the

performance of fuel-saving technologies by:

(1) assessing a technology's performance in the normal course of

operations of motor vehicles or non-road diesels; and

(2) performing controlled field tests.

(d) In selecting the technologies to be evaluated, the state

energy conservation office shall:

(1) consult with governmental and business organizations that

are currently using fuel-saving technology;

(2) consider technologies that are proven fuel-saving

technologies that have demonstrated fuel economy benefits of five

percent or more in field tests or recorded use data of government

organizations or businesses that operate fleets; and

(3) determine whether each technology selected has the potential

to be cost-effective.

(e) A fuel-saving technology may be disqualified from being

demonstrated or used if it is known to reduce engine performance,

reduce the life of the engine, require additional maintenance

expenses, or degrade air quality.

(f) The Texas Commission on Environmental Quality, the Texas

Transportation Institute, The University of Texas Center for

Transportation Research, the University of Houston Diesel

Emissions Center, or another agency may be designated to assist

with executing the demonstration, compiling the results,

estimating the potential average fuel savings of the technologies

in different applications, or preparing a final report.

(g) On completing the demonstration described by this section

the state energy conservation office shall rank the fuel-saving

technologies based on their fuel savings, other cost savings, and

overall cost-effectiveness. The office shall:

(1) list recommended applications of the technologies;

(2) document other negative or positive effects; and

(3) prepare a concise report of these findings.

(h) The Texas Commission on Environmental Quality shall obtain

information on any fuel-saving technology that appears to reduce

particulate matter, oxides of nitrogen, carbon monoxide, or

hydrocarbon emissions. The Texas Commission on Environmental

Quality may use this information to fund the United States

Environmental Protection Agency verification of a technology in

accordance with Section 387.003, Health and Safety Code.

(i) The state energy conservation office shall provide the

report prepared under Subsection (g) to each state agency with 10

or more motor vehicles or non-road diesels and to the Legislative

Budget Board.

(j) The demonstration and associated reports described by this

section shall be completed not later than January 1, 2005.

(k) All results of a demonstration project under this section

shall be made public on the state energy conservation office's

Internet website.

(l) The state energy conservation office shall provide quarterly

an updated list of all proven fuel-saving technologies on its

Internet website.

(m) Money from the state highway fund may not be used for the

purchase, installation, maintenance, or operation of the

fuel-saving technologies being assessed or subjected to

controlled field tests under this section. Repairs to state

equipment resulting from demonstrations of fuel-saving

technologies must be paid from the same funds used to implement

this section.

Added by Acts 2003, 78th Leg., 3rd C.S., ch. 3, Sec. 5.01, eff.

Jan. 11, 2004.

Sec. 447.012. APPLIANCE STANDARDS. The state energy

conservation office shall determine the feasibility and

cost-benefit to consumers of setting appliance standards for

appliances that are not currently regulated for energy efficiency

in this state, if the office determines that the new standards

would reduce the emission of air contaminants. The office may

not consider the feasibility and cost-benefit to consumers of

setting appliance standards for air conditioning systems under

this section.

Added by Acts 2005, 79th Leg., Ch.

1095, Sec. 5, eff. September 1, 2005.

Sec. 447.013. ADVANCED CLEAN ENERGY PROJECT GRANT AND LOAN

PROGRAM. (a) In this section:

(1) "Account" means the advanced clean energy project account

established under this section.

(2) "Advanced clean energy project" has the meaning assigned by

Section 382.003, Health and Safety Code.

(3) "Program" means the advanced clean energy project grant and

loan program established under this section.

(b) The advanced clean energy project grant and loan program is

established to encourage the development of advanced clean energy

projects in an environmentally protective manner. The program is

administered by the State Energy Conservation Office.

(c) The advanced clean energy project account is an account in

the general revenue fund.

(d) The account consists of:

(1) a sub-account in the account that consists of the proceeds

of bonds issued under Subsection (j);

(2) revenues allocated to the account under Section 182.122, Tax

Code;

(3) any amount appropriated by the legislature for the account;

(4) gifts, grants, and other donations received for the account;

and

(5) interest earned on the investment of money in the account.

(e) Money in the account may be appropriated only to the State

Energy Conservation Office to award grants or to make or

guarantee loans under this section. The total amount of grants

that may be awarded under this section in any state fiscal

biennium from revenues described by Subsection (d)(2) may not

exceed $20 million. The total amount of loans that may be made

or guaranteed under this section in any state fiscal biennium

from revenues described by Subsection (d)(2) may not exceed $10

million.

(f) Before awarding a grant or making a loan under this section,

the State Energy Conservation Office shall enter into a written

agreement with the entity to which the grant is to be awarded or

the loan is to be made. The agreement may specify that if, as of

a date specified by the agreement, the entity has not used the

grant or loan for the purposes for which the grant or loan was

intended, the entity shall repay the amount of the grant or the

amount of the loan and any accrued interest, as applicable, under

terms specified by the agreement.

(g) Under the program, the State Energy Conservation Office may

award a grant to the managing entity of an advanced clean energy

project in an amount not to exceed 50 percent of the total amount

invested in the project by private industry sources. The

managing entity of the project must provide any information

considered necessary by the State Energy Conservation Office to

determine whether the entity qualifies for the grant.

(h) Under the program, the State Energy Conservation Office may

make or guarantee a loan to the managing entity of an advanced

clean energy project in this state. If the loan or guarantee is

to be funded by the proceeds of bonds issued under Subsection

(j), the project must qualify for the loan or guarantee under

Section 49-q, Article III, Texas Constitution.

(i) A recipient of a grant or loan under this section is

encouraged to purchase goods and services from small businesses

and historically underutilized businesses, as those terms are

defined by Section 481.191, Government Code.

Added by Acts 2007, 80th Leg., R.S., Ch.

1277, Sec. 1, eff. September 1, 2007.