1-1 By: Holzheauser (Senate Sponsor - Cain) H.B. No. 1243 1-2 (In the Senate - Received from the House May 1, 1997; 1-3 May 2, 1997, read first time and referred to Committee on 1-4 Intergovernmental Relations; May 15, 1997, reported favorably by 1-5 the following vote: Yeas 11, Nays 0; May 15, !997, sent to 1-6 printer.) 1-7 A BILL TO BE ENTITLED 1-8 AN ACT 1-9 relating to energy savings projects for local 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 1-14 LOCAL GOVERNMENTS 1-15 Sec. 302.001. DEFINITION. In this chapter, "local 1-16 government" means a county, municipality, or other political 1-17 subdivision of this state. The term local government does not 1-18 include a school district authorized to enter into a contract for 1-19 energy conservation measures under Section 44.901, Education Code. 1-20 Sec. 302.002. ENERGY CONSERVATION MEASURES. (a) The 1-21 governing body of a local government may enter into a contract for 1-22 energy conservation measures to reduce energy consumption or 1-23 operating costs of governmental facilities in accordance with this 1-24 chapter. 1-25 (b) A contract authorized under this chapter includes a 1-26 contract for the installation of: 1-27 (1) insulation of the building structure and systems 1-28 within the building; 1-29 (2) storm windows or doors, caulking or weather 1-30 stripping, multiglazed windows or doors, heat-absorbing or 1-31 heat-reflective glazed and coated window or door systems, or other 1-32 window or door system modifications that reduce energy consumption; 1-33 (3) automatic energy control systems, including 1-34 computer software and technical data licenses; 1-35 (4) heating, ventilating, or air conditioning system 1-36 modifications or replacements; 1-37 (5) lighting fixtures that increase energy efficiency; 1-38 (6) energy recovery systems; 1-39 (7) electric systems improvements; or 1-40 (8) other energy-conservation-related improvements or 1-41 equipment (including improvements or equipment related to renewable 1-42 energy). 1-43 (c) All energy conservation measures must comply with 1-44 current local, state, and federal construction and environmental 1-45 codes and regulations. Notwithstanding anything to the contrary in 1-46 Subsection (b), a contract for energy conservation measures shall 1-47 not include improvements or equipment that allow or cause water 1-48 from any condensing, cooling, or industrial process or any system 1-49 of nonpotable usage over which public water supply system officials 1-50 do not have sanitary control to be returned to the potable water 1-51 supply. 1-52 Sec. 302.003. PAYMENT AND PERFORMANCE BOND. Notwithstanding 1-53 any other law to the contrary, before entering into a contract for 1-54 energy conservation measures, the governing body of the local 1-55 government may, at its option: 1-56 (1) require the provider of the energy conservation 1-57 measures to file with the governing body a payment and performance 1-58 bond relating to the installation of energy conservation measures 1-59 that is in an amount the governing body finds reasonable and 1-60 necessary to protect the interests of the local government and that 1-61 may also cover the value of the guaranteed savings on the contract 1-62 and is conditioned on the faithful execution of the terms of the 1-63 contract; or 1-64 (2) choose not to require a payment and performance 2-1 bond in connection with the contract. 2-2 Sec. 302.004. LEASE-PURCHASE CONTRACT AUTHORIZED. A 2-3 contract for energy conservation measures, with respect to existing 2-4 buildings or facilities, may be a lease-purchase contract with a 2-5 term not to exceed 10 years that meets federal tax requirements for 2-6 tax-free municipal leasing or long-term financing. The contract 2-7 shall contain provisions pursuant to which the provider of the 2-8 energy conservation measures guarantees the amount of the savings 2-9 to be realized by the local government under the contract. If the 2-10 term of a contract for energy conservation measures exceeds one 2-11 year, the local government's contractual obligations in any one 2-12 year during the term of the contract may not exceed the total 2-13 energy and operating cost savings, including but not limited to 2-14 electrical, gas, or other utility cost savings and operating cost 2-15 savings resulting from automatic monitoring and control as 2-16 determined by the local government in this subsection, divided by 2-17 the number of years in the contract term. 2-18 Sec. 302.005. BIDDING PROCEDURES; AWARD OF CONTRACT. (a) A 2-19 contract under this chapter may be let under competitive proposal 2-20 procedures. Notice of the request for proposals shall be published 2-21 in the manner provided for competitive bidding. Requests for 2-22 proposals must solicit quotations and must specify the relative 2-23 importance of guaranteed savings, price, return on investment, 2-24 financial performance and stability, quality, technical ability, 2-25 experience, and other evaluation factors. 2-26 (b) The contract shall be awarded to the responsible offeror 2-27 whose proposal, following negotiations, is determined to be the 2-28 most advantageous to the local government considering the 2-29 guaranteed savings and other evaluation factors set forth in the 2-30 request for proposals. 2-31 (c) To obtain the best final offers, the local government 2-32 may allow proposal revisions after submissions and before the award 2-33 of the contract. 2-34 SECTION 2. The importance of this legislation and the 2-35 crowded condition of the calendars in both houses create an 2-36 emergency and an imperative public necessity that the 2-37 constitutional rule requiring bills to be read on three several 2-38 days in each house be suspended, and this rule is hereby suspended, 2-39 and that this Act take effect and be in force from and after its 2-40 passage, and it is so enacted. 2-41 * * * * *