By Holzheauser H.B. No. 1243
Substitute the following for H.B. No. 1243:
By Davis C.S.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 heat
1-24 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 of
2-18 nonpotable usage over which public water supply system officials do
2-19 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, (i) require the provider of the
2-25 energy conservation measures to file with the governing body a
2-26 payment and performance bond relating to the installation of energy
2-27 conservation measures that is in an amount the governing body finds
3-1 reasonable and necessary to protect the interests of the local
3-2 government and that may also cover the value of the guaranteed
3-3 savings on the contract and is conditioned on the faithful
3-4 execution of the terms of the contract, or (ii) choose not to
3-5 require a payment and performance bond in connection with the
3-6 contract.
3-7 Sec. 302.004. LEASE-PURCHASE CONTRACT AUTHORIZED. A
3-8 contract for energy conservation measures, with respect to existing
3-9 buildings or facilities, may be a lease/purchase contract beginning
3-10 after the final date of installation with a term not to exceed 10
3-11 years, that meets federal tax requirements for tax-free municipal
3-12 leasing or long-term financing. The contract shall contain
3-13 provisions pursuant to which the provider of the energy
3-14 conservation measures guarantees the amount of the savings to be
3-15 realized by the local government under the contract. If the term
3-16 of a contract for energy conservation measures exceeds one year,
3-17 the local government's contractual obligations in any one year
3-18 during the term of the contract may not exceed the total energy and
3-19 operating cost savings, including but not limited to electrical,
3-20 gas, or other utility cost savings and operating cost savings
3-21 resulting from automatic monitoring and control as determined by
3-22 the local government in this subsection, divided by the number of
3-23 years in the contract term beginning after the final date of
3-24 installation.
3-25 Sec. 302.005. BIDDING PROCEDURES; AWARD OF CONTRACT. (a) A
3-26 contract under this chapter may be let under competitive proposal
3-27 procedures. Notice of the request for proposals shall be published
4-1 in the manner provided for competitive bidding. Requests for
4-2 proposals must solicit quotations and must specify the relative
4-3 importance of guaranteed savings, price, return on investment,
4-4 financial performance and stability, quality, technical ability,
4-5 experience, and other evaluation factors.
4-6 (b) The contract shall be awarded to the responsible offeror
4-7 whose proposal, following negotiations, is determined to be the
4-8 most advantageous to the local government considering the
4-9 guaranteed savings and other evaluation factors set forth in the
4-10 request for proposals.
4-11 (c) The local government may conduct discussions with
4-12 offerors who submit proposals and who are determined to be
4-13 reasonably qualified for the award of the contract. Offerors shall
4-14 be treated fairly and equally with respect to any opportunity for
4-15 discussion and revision of proposals.
4-16 (d) If provided in a request for proposals, proposals shall
4-17 be opened in a manner that avoids disclosure of the contents to
4-18 competing offerors and keeps the proposals secret during
4-19 negotiations. All proposals are open for public inspection after a
4-20 contract is awarded unless the information is excepted from
4-21 disclosure under Chapter 552, Government Code.
4-22 (e) To obtain the best final offers, the local government
4-23 may allow proposal revisions after submissions and before the award
4-24 of the contract.
4-25 SECTION 2. The importance of this legislation and the
4-26 crowded condition of the calendars in both houses create an
4-27 emergency and an imperative public necessity that the
5-1 constitutional rule requiring bills to be read on three several
5-2 days in each house be suspended, and this rule is hereby suspended,
5-3 and that this Act take effect and be in force from and after its
5-4 passage, and it is so enacted.