By Holzheauser                                        H.B. No. 1243

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to energy savings projects for local 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

 1-7                              LOCAL GOVERNMENTS

 1-8           Sec. 302.001.  DEFINITION.  In this chapter, "local

 1-9     government" means a county, municipality, or other political

1-10     subdivision of this state.  The term local government does not

1-11     include a school district authorized to enter into a contract for

1-12     energy conservation measures under Section 44.901, Education Code.

1-13           Sec. 302.002.  ENERGY CONSERVATION MEASURES.  (a)  The

1-14     governing body of a local government may enter into a contract for

1-15     energy conservation measures to reduce energy consumption or

1-16     operating costs of governmental facilities in accordance with this

1-17     chapter.

1-18           (b)  A contract authorized under this chapter includes a

1-19     contract for the installation of:

1-20                 (1)  insulation of the building structure and systems

1-21     within the building;

1-22                 (2)  storm windows or doors, caulking or weather

1-23     stripping, multiglazed windows or doors, heat-absorbing or

1-24     heat-reflective glazed and coated window or door systems, or other

 2-1     window or door system modifications that reduce energy consumption;

 2-2                 (3)  automatic energy control systems, including

 2-3     computer software and technical data licenses;

 2-4                 (4)  heating, ventilating, or air conditioning system

 2-5     modifications or replacements;

 2-6                 (5)  lighting fixtures that increase energy efficiency;

 2-7                 (6)  energy recovery systems;

 2-8                 (7)  electric systems improvements; or

 2-9                 (8)  other energy-conservation-related improvements or

2-10     equipment (including improvements or equipment related to renewable

2-11     energy).

2-12           (c)  All energy conservation measures must comply with

2-13     current local, state, and federal construction and environmental

2-14     codes and regulations.  Notwithstanding anything to the contrary in

2-15     Subsection (b), a contract for energy conservation measures shall

2-16     not include improvements or equipment that allow or cause water

2-17     from any condensing, cooling, or industrial process or any system

2-18     of nonpotable usage over which public water supply system officials

2-19     do not have sanitary control to be returned to the potable water

2-20     supply.

2-21           Sec. 302.003.  PAYMENT AND PERFORMANCE BOND.  Notwithstanding

2-22     any other law to the contrary, before entering into a contract for

2-23     energy conservation measures, the governing body of the local

2-24     government may, at its option:

2-25                 (1)  require the provider of the energy conservation

2-26     measures to file with the governing body a payment and performance

2-27     bond relating to the installation of energy conservation measures

 3-1     that is in an amount the governing body finds reasonable and

 3-2     necessary to protect the interests of the local government and that

 3-3     may also cover the value of the guaranteed savings on the contract

 3-4     and is conditioned on the faithful execution of the terms of the

 3-5     contract; or

 3-6                 (2)  choose not to require a payment and performance

 3-7     bond in connection with the contract.

 3-8           Sec. 302.004.  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 for

3-12     tax-free municipal leasing or long-term financing.  The contract

3-13     shall contain provisions pursuant to which the provider of the

3-14     energy conservation measures guarantees the amount of the savings

3-15     to be realized by the local government under the contract.  If the

3-16     term of a contract for energy conservation measures exceeds one

3-17     year, the local government's contractual obligations in any one

3-18     year during the term of the contract may not exceed the total

3-19     energy and operating cost savings, including but not limited to

3-20     electrical, gas, or other utility cost savings and operating cost

3-21     savings resulting from automatic monitoring and control as

3-22     determined by the local government in this subsection, divided by

3-23     the number of years in the contract term.

3-24           Sec. 302.005.  BIDDING PROCEDURES; AWARD OF CONTRACT.  (a)  A

3-25     contract under this chapter may be let under competitive proposal

3-26     procedures.  Notice of the request for proposals shall be published

3-27     in the manner provided for competitive bidding.  Requests for

 4-1     proposals must solicit quotations and must specify the relative

 4-2     importance of guaranteed savings, price, return on investment,

 4-3     financial performance and stability, quality, technical ability,

 4-4     experience, and other evaluation factors.

 4-5           (b)  The contract shall be awarded to the responsible offeror

 4-6     whose proposal, following negotiations, is determined to be the

 4-7     most advantageous to the local government considering the

 4-8     guaranteed savings and other evaluation factors set forth in the

 4-9     request for proposals.

4-10           (c)  To obtain the best final offers, the local government

4-11     may allow proposal revisions after submissions and before the award

4-12     of the contract.

4-13           SECTION 2.  The importance of this legislation and the

4-14     crowded condition of the calendars in both houses create an

4-15     emergency and an imperative public necessity that the

4-16     constitutional rule requiring bills to be read on three several

4-17     days in each house be suspended, and this rule is hereby suspended,

4-18     and that this Act take effect and be in force from and after its

4-19     passage, and it is so enacted.