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.