S.B. No. 744
AN ACT
1-1 relating to guaranteed energy savings projects for local
1-2 governments and certain retail utility fees.
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 (6) energy recovery systems;
2-5 (7) electric systems improvements; or
2-6 (8) other energy conservation-related equipment.
2-7 (c) The person with whom the governing body contracts must
2-8 be experienced in the design, implementation, and installation of
2-9 energy conservation measures.
2-10 Sec. 302.003. BOND. Before entering into a contract for
2-11 energy conservation measures, the provider of the energy
2-12 conservation measures must file with the local government a
2-13 performance bond that is in an amount the governing body finds
2-14 reasonable and necessary to protect the interests of the local
2-15 government and that covers the value of the guaranteed savings on
2-16 the contract and is conditioned on the faithful execution of the
2-17 terms of the contract.
2-18 Sec. 302.004. LENGTH OF CONTRACT. (a) The governing body
2-19 may enter into a contract for a period of more than one year for
2-20 energy conservation measures with a person if the governing body
2-21 finds that the amount the local government would spend on the
2-22 energy conservation measures will not exceed the amount estimated
2-23 to be saved in energy and operating costs during the 10-year period
2-24 beginning on the date the installation is complete.
2-25 (b) If the term of a contract for energy conservation
2-26 measures exceeds one year, the local government's contractual
2-27 obligation in any year during the term of the contract may not
3-1 exceed the total estimated energy and operating cost savings,
3-2 including electrical, gas, or other utility cost savings and
3-3 operating cost savings resulting from automatic monitoring and
3-4 control, as determined by the governing body, divided by the number
3-5 of years in the contract term. The governing body shall consider
3-6 all costs of the energy conservation measures, including costs of
3-7 design, engineering, installation, maintenance, repairs, and debt
3-8 service.
3-9 Sec. 302.005. LEASE-PURCHASE CONTRACT AUTHORIZED. A
3-10 contract for energy conservation measures, with respect to existing
3-11 buildings or facilities, may be a lease-purchase contract, with a
3-12 term not to exceed 10 years, that meets federal tax requirements
3-13 for tax-free municipal leasing or long-term financing.
3-14 Sec. 302.006. BIDDING PROCEDURES; AWARD OF CONTRACT. (a) A
3-15 contract under this chapter may be let under competitive proposal
3-16 procedures. Notice of the request for proposals shall be published
3-17 in the manner provided for competitive bidding. Requests for
3-18 proposals must solicit quotations and must specify the relative
3-19 importance of guaranteed savings, price, financial performance and
3-20 stability, quality, technical ability, experience, and other
3-21 evaluation factors.
3-22 (b) The contract shall be awarded to the responsible offeror
3-23 whose proposal, following negotiations, is determined to be the
3-24 most advantageous to the local government considering the
3-25 guaranteed savings and other evaluation factors set forth in the
3-26 request for proposals.
3-27 (c) In accordance with the terms of a request for proposals
4-1 under Subsection (a) and with regulations adopted by the governing
4-2 body, the local government may conduct discussions with offerors
4-3 who submit proposals and whom the local government determines to be
4-4 reasonably qualified for the award of the contract. Offerors shall
4-5 be treated fairly and equally with respect to any opportunity for
4-6 discussion and revision of proposals. To obtain the best final
4-7 offers, the local government may allow proposal revisions after
4-8 submissions and before the award of the contract.
4-9 (d) If provided in a request for proposals under Subsection
4-10 (a), proposals shall be opened in a manner that avoids disclosure
4-11 of the contents to competing offerors and keeps the proposals
4-12 secret during negotiations.
4-13 (e) On completion of all negotiations, the board shall give
4-14 notice of intent to award a contract to the selected offeror. The
4-15 notice of intent shall be published in the same manner as the
4-16 notice of request for proposals. All proposals are open for public
4-17 inspection after the notice of intent to award is published, but
4-18 trade secrets and proprietary information clearly identified in the
4-19 proposals are not open for public inspection.
4-20 Sec. 302.007. NONCONSUMPTIVE WATER SERVICE FEE. (a) A
4-21 retail public utility may provide nonconsumptive water service for
4-22 the operation of a geothermal heat pump that circulates the water
4-23 in a closed loop and returns it to the water main.
4-24 (b) A retail public utility that provides water service
4-25 under this section must:
4-26 (1) retain total control over access to the water;
4-27 (2) not allow the water to enter any building; and
5-1 (3) locate the heat exchanger in contact with the
5-2 water to be returned to the water main:
5-3 (A) in a locked utility box;
5-4 (B) under the control of the utility; and
5-5 (C) in the public utility easement.
5-6 (c) A retail public utility that provides water service may:
5-7 (1) adopt additional rules and procedures for the
5-8 installation, operation, and removal of a geothermal heat pump; and
5-9 (2) charge a reasonable fee for the installation,
5-10 inspection, and operation of the heat pump.
5-11 (d) A retail public utility providing nonconsumptive water
5-12 service for a geothermal heat pump is immune from any civil
5-13 liability arising from the installation or use of the geothermal
5-14 heat pump.
5-15 SECTION 2. The importance of this legislation and the
5-16 crowded condition of the calendars in both houses create an
5-17 emergency and an imperative public necessity that the
5-18 constitutional rule requiring bills to be read on three several
5-19 days in each house be suspended, and this rule is hereby suspended,
5-20 and that this Act take effect and be in force from and after its
5-21 passage, and it is so enacted.