HB 5623

relating to the provision of loans and grants from the Texas Energy
Fund for certain energy efficiency projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter A, Chapter 34, Utilities Code, is
amended by adding Section 34.01051 to read as follows:
Sec. 34.01051.  ENERGY EFFICIENCY LOANS AND GRANTS.  (a)  The
commission may use money in the fund without further appropriation
to provide loans or grants for energy efficiency projects that
benefit retail electric customers, including residential
weatherization, demand reduction, or energy loss prevention
(b)  The commission by rule shall establish eligibility
criteria to receive a loan or grant under this section.
(c)  The commission may provide a loan or grant under this
(1)  a retail electric customer; or
(d)  Section 35.005(d) does not apply to a loan or grant
SECTION 2.  Section 34.0106(c), Utilities Code, is amended
(c)  The commission shall require each recipient of a loan
under this chapter to enter into a debt covenant that requires the
recipient to meet facility performance standards adopted by the
commission.  The commission by rule shall adopt performance
standards for the purposes of this subsection based on reliability
metrics appropriate for the types of facilities for which loans may
be provided.  This subsection does not apply to a loan or grant
provided under Section 34.01051.
SECTION 3.  This Act takes effect January 1, 2026, but only
if the constitutional amendment proposed by the 89th Legislature,
Regular Session, 2025, authorizing the use of money in the Texas
energy fund for energy efficiency projects that benefit retail
electric customers is approved by the voters.  If that amendment is
not approved by the voters, this Act has no effect.