HB 4261: Using ARRA Funds for Energy Loans

[Updatte: This did not make its way out of the Calendars committee, so it will not be brought to the House floor for a vote.  Look for it it to be amended onto another bill in the coming days.]

HB 4261: Great Use of Stimulus Dollars, Real Benefit to Consumers, Real Job Growth in Texas

HB 4261 would use some of Texas’ federal stimulus funds to establish a zero-interest loan program for individuals, small businesses and houses of worship for energy efficiency and distributed generation projects.

What portion of the stimulus funds is involved?
The funds would come from the portion of Texas’ stimulus funds called “State Energy Programs” (SEP) which is coming to the State Energy Conservation Office within the Comptroller of Public Accounts.

How much money are we talking about?
HB 4261 would allocate $50 million of Texas’ SEP funding to the new loan program. This is less than one-quarter of Texas’ total SEP allocation.

Why is this new loan program important?
The program would generate energy efficiency and renewable energy projects throughout the state among diverse consumers. This would help create energy efficiency and renewable energy jobs at all levels. It also will help taxpayers benefit directly from the stimulus. Some Texas consumers have access to local energy incentives, but Texans all over the state could participate in the new program.

Why is it a good use of stimulus funds?
The stimulus funds are “one-time” funds, but by creating a revolving loan fund Texas would be recycling those dollars so they would benefit Texans for years to come.

What if Texas does not take this approach?
Texas could put all its SEP dollars into an existing energy program for municipal buildings and schools. These facilities are important, but carving out a portion for consumer loans would diversify the loan pool and impact the grid 24/7 through diverse energy users.

Why include houses of worship?
Religious congregations serve public functions in local communities throughout Texas like providing social services, responding to disasters, facilitating public safety and more. But they are at a unique disadvantage in saving energy and using clean power:
•    Unlike municipal buildings, there is no public loan program to help houses of worship undertake energy-related projects.
•    Unlike taxable entities, houses of worship cannot receive tax credits or other tax-based incentives.
•    Unlike other non-profits, houses of worship have very limited grant options for energy projects.

According to the U.S. Environmental Protection Agency, there are more than 300,000 houses of worship in the US. If they each cut energy use by just 10 percent the whole society would benefit:
•    More than 5.4 billion kWh of electricity would be available without additional cost and pollution.
•    More than 2 million tons of greenhouse gas emissions would be prevented, equivalent to the emissions of about 400,000 cars, or to planting over a half million acres of trees.

• If your Representative is a member of the Calendars committee, call his/her office, let them know that his/her constituents of faith support HB 4261, and ask them to schedule the bill for a vote on the House floor.  To see who represents you, click here.  The membership of the Calendars committe is as follows: McCall (Chair), Lucio III (Vice Chair), Chavez, Coleman, Cook, Creighton, Geren, Keffer. Kolkhorst, Kuempel, McReynolds, Ritter, Solomons
• The bill has more than 30 co-authors.  If your Representative is one of them, call him/her and request that they contact the Calendars committee and ask them to bring the bill up for a vote.
• If your Representative is not involved with the bill or the Calendars committee, you can still call the office of Representative Brian McCall (Chair of the Calendars committee), voice your support for the bill, and ask that it be scheduled for a vote on the House floor.