By:  Cain                                              S.B. No. 744
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to guaranteed energy savings projects for local
    1-2  governments.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subtitle C, Title 9, Local Government Code, is
    1-5  amended by adding Chapter 302 to read as follows:
    1-6   CHAPTER 302.  ENERGY CONSERVATION MEASURES FOR LOCAL GOVERNMENTS
    1-7        Sec. 302.001.  DEFINITION.  In this chapter,  "local
    1-8  government" means a county, municipality, or other political
    1-9  subdivision of this state.
   1-10        Sec. 302.002.  CONTRACT FOR ENERGY CONSERVATION MEASURES.
   1-11  (a)  The governing body of a local government may enter into a
   1-12  contract for energy conservation measures to reduce energy
   1-13  consumption or operating costs of governmental facilities in
   1-14  accordance with this chapter.
   1-15        (b)  A contract authorized under this chapter includes a
   1-16  contract for the installation of:
   1-17              (1)  insulation of the building structure and systems
   1-18  within the building;
   1-19              (2)  storm windows or doors, caulking or weather
   1-20  stripping, multiglazed windows or doors, heat absorbing or heat
   1-21  reflective glazed and coated window or door systems, or other
   1-22  window or door system modifications that reduce energy consumption;
   1-23              (3)  automatic energy control systems, including
   1-24  computer software and technical data licenses;
    2-1              (4)  heating, ventilating, or air-conditioning system
    2-2  modifications or replacements;
    2-3              (5)  lighting fixtures that increase energy efficiency;
    2-4  or
    2-5              (6)  energy recovery systems.
    2-6        (c)  The person with whom the governing body contracts must
    2-7  be experienced in the design, implementation, and installation of
    2-8  energy conservation measures.
    2-9        Sec. 302.003.  BOND.  Before entering into a contract for
   2-10  energy conservation measures, the provider of the energy
   2-11  conservation measures must file with the local government a
   2-12  performance bond that is in an amount the governing body finds
   2-13  reasonable and necessary to protect the interests of the local
   2-14  government and that covers the value of the guaranteed savings on
   2-15  the contract and is conditioned on the faithful execution of the
   2-16  terms of the contract.
   2-17        Sec. 302.004.  LENGTH OF CONTRACT.  (a)  The governing body
   2-18  may enter into a contract for a period of more than one year for
   2-19  energy conservation measures with a person if the governing body
   2-20  finds that the amount the local government would spend on the
   2-21  energy conservation measures will not exceed the amount estimated
   2-22  to be saved in energy and operating costs during the 10-year period
   2-23  beginning on the date the installation is complete.
   2-24        (b)  If the term of a contract for energy conservation
   2-25  measures exceeds one year, the local government's contractual
   2-26  obligation in any year during the term of the contract may not
   2-27  exceed the total estimated energy and operating cost savings,
    3-1  including electrical, gas, or other utility cost savings and
    3-2  operating cost savings resulting from automatic monitoring and
    3-3  control, as determined by the governing body, divided by the number
    3-4  of years in the contract term.  The governing body shall consider
    3-5  all costs of the energy conservation measures, including costs of
    3-6  design, engineering, installation, maintenance, repairs, and debt
    3-7  service.
    3-8        Sec. 302.005.  LEASE-PURCHASE CONTRACT AUTHORIZED.  A
    3-9  contract for energy conservation measures, with respect to existing
   3-10  buildings or facilities, may be a lease-purchase contract, with a
   3-11  term not to exceed 10 years, that meets federal tax requirements
   3-12  for tax-free municipal leasing or long-term financing.
   3-13        Sec. 302.006.  BIDDING PROCEDURES; AWARD OF CONTRACT.  (a)  A
   3-14  contract under this chapter may be let under competitive proposal
   3-15  procedures.  Notice of the request for proposals shall be published
   3-16  in the manner provided for competitive bidding.  Requests for
   3-17  proposals must solicit quotations and must specify the relative
   3-18  importance of guaranteed savings, price, financial performance and
   3-19  stability, quality, technical ability, experience, and other
   3-20  evaluation factors.
   3-21        (b)  The contract shall be awarded to the responsible offeror
   3-22  whose proposal, following negotiations, is determined to be the
   3-23  most advantageous to the local government considering the
   3-24  guaranteed savings and other evaluation factors set forth in the
   3-25  request for proposals.
   3-26        (c)  In accordance with the terms of a request for proposals
   3-27  under Subsection (a) and with regulations adopted by the governing
    4-1  body, the local government may conduct discussions with offerors
    4-2  who submit proposals and who the local government determines to be
    4-3  reasonably qualified for the award of the contract.  Offerors shall
    4-4  be treated fairly and equally with respect to any opportunity for
    4-5  discussion and revision of proposals.  To obtain the best final
    4-6  offers, the local government may allow proposal revisions after
    4-7  submissions and before the award of the contract.
    4-8        (d)  If provided in a request for proposals under Subsection
    4-9  (a), proposals shall be opened in a manner that avoids disclosure
   4-10  of the contents to competing offerors and keeps the proposals
   4-11  secret during negotiations.
   4-12        (e)  On completion of all negotiations, the board shall give
   4-13  notice of intent to award a contract to the selected offeror.  The
   4-14  notice of intent shall be published in the same manner as the
   4-15  notice of request for proposals.  All proposals are open for public
   4-16  inspection after the notice of intent to award is published, but
   4-17  trade secrets and proprietary information clearly identified in the
   4-18  proposals are not open for public inspection.
   4-19        SECTION 2.  The importance of this legislation and the
   4-20  crowded condition of the calendars in both houses create an
   4-21  emergency and an imperative public necessity that the
   4-22  constitutional rule requiring bills to be read on three several
   4-23  days in each house be suspended, and this rule is hereby suspended,
   4-24  and that this Act take effect and be in force from and after its
   4-25  passage, and it is so enacted.