SRC-TNM H.B. 1243 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1243
By: Holzheauser (Cain)
Natural Resources
5-13-97
Engrossed


DIGEST 

In 1992, the legislature authorized higher education institutions to enter
into performance contracts for energy conservation measures to reduce
energy consumption and operating costs at institutional facilities.  These
contracts provide a cost-effective way to fund facilities' improvements
without increasing the need for state appropriations or relying on limited
state-funded loan programs.  Energy performance contracts do not require
the institutions to cover initial costs; the contractor pays for all
project engineering, equipment and construction, and is paid back from
annual energy cost savings within a 10-year period.  H.B. 1243 would allow
a county municipality, or other political subdivision of this state to
enter into a contract for energy conservation measures. 

PURPOSE

As proposed, H.B. 1243 outlines provisions regarding energy savings
projects for local governments. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 9C, Local Government Code, by adding Chapter 302,
as follows: 

CHAPTER 302. ENERGY CONSERVATION MEASURES FOR 

LOCAL GOVERNMENTS

Sec. 302.001. DEFINITION.  Defines "local government."

Sec. 302.002. ENERGY CONSERVATION MEASURES. Outlines provisions regarding
energy conservation measures.  Sets forth items to be installed under a
contract authorized under this chapter.  

Sec. 302.003. PAYMENT AND PERFORMANCE BOND. Authorizes the governing body
of the local government before entering into a contract for energy
conservation measures, to require the provider of the energy conservation
measures to file with the governing body a payment and performance bond
relating to the installation of energy conservation measures that is in an
amount the governing body finds reasonable and necessary to protect the
interests of the local government and that may also cover the value of the
guaranteed savings on the contract and is conditioned on the faithful
execution of the terms of the contract; or choose not to require a payment
and performance bond in connection with the contract, notwithstanding any
other law to the contrary. 

Sec. 302.004. LEASE-PURCHASE CONTRACT AUTHORIZED.  Outlines provisions and
sets forth requirements regarding a lease-purchase contract. 

Sec. 302.005. BIDDING PROCEDURES; AWARD OF CONTRACT. Authorizes a contract
under this chapter to be let under competitive proposal procedures.
Requires notice of the request for proposals to be published in the manner
provided for competitive bidding.  Requires requests for proposals to
solicit quotations and to specify the relative importance of guaranteed
savings, price, return on investment, financial performance and stability,
quality, technical ability, experience, and other evaluation factors.
Requires the contract to be awarded to the responsible offeror whose
proposal, following negotiations, is determined to be the most
advantageous to the local government considering the guaranteed savings
and other evaluation factors set forth in the request for proposals.
Authorizes the local government to allow proposal revisions after
submissions and before the award of the contact to obtain the best final
offers. 

SECTION 2. Emergency clause.
  Effective date: upon passage.