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.