1-1 By: Cain S.B. No. 744
1-2 (In the Senate - Filed February 23, 1995; February 27, 1995,
1-3 read first time and referred to Committee on Intergovernmental
1-4 Relations; March 22, 1995, reported favorably by the following
1-5 vote: Yeas 10, Nays 0; March 22, 1995, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to guaranteed energy savings projects for local
1-9 governments.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Subtitle C, Title 9, Local Government Code, is
1-12 amended by adding Chapter 302 to read as follows:
1-13 CHAPTER 302. ENERGY CONSERVATION MEASURES FOR LOCAL GOVERNMENTS
1-14 Sec. 302.001. DEFINITION. In this chapter, "local
1-15 government" means a county, municipality, or other political
1-16 subdivision of this state.
1-17 Sec. 302.002. CONTRACT FOR ENERGY CONSERVATION MEASURES.
1-18 (a) The governing body of a local government may enter into a
1-19 contract for energy conservation measures to reduce energy
1-20 consumption or operating costs of governmental facilities in
1-21 accordance with this chapter.
1-22 (b) A contract authorized under this chapter includes a
1-23 contract for the installation of:
1-24 (1) insulation of the building structure and systems
1-25 within the building;
1-26 (2) storm windows or doors, caulking or weather
1-27 stripping, multiglazed windows or doors, heat absorbing or heat
1-28 reflective glazed and coated window or door systems, or other
1-29 window or door system modifications that reduce energy consumption;
1-30 (3) automatic energy control systems, including
1-31 computer software and technical data licenses;
1-32 (4) heating, ventilating, or air-conditioning system
1-33 modifications or replacements;
1-34 (5) lighting fixtures that increase energy efficiency;
1-35 or
1-36 (6) energy recovery systems.
1-37 (c) The person with whom the governing body contracts must
1-38 be experienced in the design, implementation, and installation of
1-39 energy conservation measures.
1-40 Sec. 302.003. BOND. Before entering into a contract for
1-41 energy conservation measures, the provider of the energy
1-42 conservation measures must file with the local government a
1-43 performance bond that is in an amount the governing body finds
1-44 reasonable and necessary to protect the interests of the local
1-45 government and that covers the value of the guaranteed savings on
1-46 the contract and is conditioned on the faithful execution of the
1-47 terms of the contract.
1-48 Sec. 302.004. LENGTH OF CONTRACT. (a) The governing body
1-49 may enter into a contract for a period of more than one year for
1-50 energy conservation measures with a person if the governing body
1-51 finds that the amount the local government would spend on the
1-52 energy conservation measures will not exceed the amount estimated
1-53 to be saved in energy and operating costs during the 10-year period
1-54 beginning on the date the installation is complete.
1-55 (b) If the term of a contract for energy conservation
1-56 measures exceeds one year, the local government's contractual
1-57 obligation in any year during the term of the contract may not
1-58 exceed the total estimated energy and operating cost savings,
1-59 including electrical, gas, or other utility cost savings and
1-60 operating cost savings resulting from automatic monitoring and
1-61 control, as determined by the governing body, divided by the number
1-62 of years in the contract term. The governing body shall consider
1-63 all costs of the energy conservation measures, including costs of
1-64 design, engineering, installation, maintenance, repairs, and debt
1-65 service.
1-66 Sec. 302.005. LEASE-PURCHASE CONTRACT AUTHORIZED. A
1-67 contract for energy conservation measures, with respect to existing
1-68 buildings or facilities, may be a lease-purchase contract, with a
2-1 term not to exceed 10 years, that meets federal tax requirements
2-2 for tax-free municipal leasing or long-term financing.
2-3 Sec. 302.006. BIDDING PROCEDURES; AWARD OF CONTRACT. (a) A
2-4 contract under this chapter may be let under competitive proposal
2-5 procedures. Notice of the request for proposals shall be published
2-6 in the manner provided for competitive bidding. Requests for
2-7 proposals must solicit quotations and must specify the relative
2-8 importance of guaranteed savings, price, financial performance and
2-9 stability, quality, technical ability, experience, and other
2-10 evaluation factors.
2-11 (b) The contract shall be awarded to the responsible offeror
2-12 whose proposal, following negotiations, is determined to be the
2-13 most advantageous to the local government considering the
2-14 guaranteed savings and other evaluation factors set forth in the
2-15 request for proposals.
2-16 (c) In accordance with the terms of a request for proposals
2-17 under Subsection (a) and with regulations adopted by the governing
2-18 body, the local government may conduct discussions with offerors
2-19 who submit proposals and who the local government determines to be
2-20 reasonably qualified for the award of the contract. Offerors shall
2-21 be treated fairly and equally with respect to any opportunity for
2-22 discussion and revision of proposals. To obtain the best final
2-23 offers, the local government may allow proposal revisions after
2-24 submissions and before the award of the contract.
2-25 (d) If provided in a request for proposals under Subsection
2-26 (a), proposals shall be opened in a manner that avoids disclosure
2-27 of the contents to competing offerors and keeps the proposals
2-28 secret during negotiations.
2-29 (e) On completion of all negotiations, the board shall give
2-30 notice of intent to award a contract to the selected offeror. The
2-31 notice of intent shall be published in the same manner as the
2-32 notice of request for proposals. All proposals are open for public
2-33 inspection after the notice of intent to award is published, but
2-34 trade secrets and proprietary information clearly identified in the
2-35 proposals are not open for public inspection.
2-36 SECTION 2. The importance of this legislation and the
2-37 crowded condition of the calendars in both houses create an
2-38 emergency and an imperative public necessity that the
2-39 constitutional rule requiring bills to be read on three several
2-40 days in each house be suspended, and this rule is hereby suspended,
2-41 and that this Act take effect and be in force from and after its
2-42 passage, and it is so enacted.
2-43 * * * * *