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.