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.

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