By Holzheauser H.B. No. 3530
Substitute the following for H.B. No. 3530:
By Moffat C.S.H.B. No. 3530
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to energy savings projects for school districts,
1-3 institutions of higher education and state agencies.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 44.901, Subchapter Z, Title 2, Education
1-6 Code, is amended to read as follows:
1-7 Sec. 44.901. ENERGY CONSERVATION MEASURES. (a) The board
1-8 of trustees of a school district may enter into a contract for
1-9 energy conservation measures to reduce energy consumption or
1-10 operating costs of school facilities in accordance with this
1-11 section.
1-12 (b) A contract to which this section applies includes a
1-13 contract for the installation of:
1-14 (1) insulation of the building structures and systems
1-15 within the building;
1-16 (2) storm windows or doors, caulking or
1-17 weatherstripping, multiglazed windows or doors, heat absorbing or
1-18 heat reflective glazed and coated window or door systems, or other
1-19 window or door system modifications that reduce energy consumption;
1-20 (3) automatic energy control systems, including
1-21 computer software and technical data licenses;
1-22 (4) heating, ventilating, or air-conditioning system
1-23 modifications or replacements;
1-24 (5) lighting fixtures that increase energy efficiency;
2-1 [or]
2-2 (6) energy recovery systems;
2-3 (7) electric systems improvements; or
2-4 (8) other energy conservation-related improvements or
2-5 equipment (including improvements or equipment relating to
2-6 renewable energy).
2-7 (c) All energy conservation measures must comply with
2-8 current local, state, and federal construction and environmental
2-9 codes and regulations. Notwithstanding anything to the contrary in
2-10 subsection (b), a contract for energy conservation measures shall
2-11 not include improvements or equipment that allow or cause water
2-12 from any condensing, cooling or industrial process or any system of
2-13 nonpotable usage over which the public water supply system
2-14 officials do not have sanitary control, to be returned to the
2-15 potable water supply.
2-16 (d) The person with whom the board contracts must be
2-17 experienced in the design, implementation, and installation of
2-18 energy conservation measures.
2-19 (e) [(c)] Before entering into a contract for energy
2-20 conservation measures, the board shall require the provider of the
2-21 energy conservation measures to file with the board a payment and
2-22 performance bond relating to the installation of energy
2-23 conservation measures that is in an amount the board finds
2-24 reasonable and necessary to protect the interests of the school
2-25 district and that may also cover[s] the value of the guaranteed
2-26 savings on the contract and is conditioned on the faithful
2-27 execution of the terms of the contract.
3-1 (f) [(d)] A contract for energy conservation measures, with
3-2 respect to existing buildings or facilities, may be a
3-3 lease/purchase contract, with a term not to exceed 10 years, that
3-4 meets federal tax requirements for tax-free municipal leasing or
3-5 long-term financing. The contract shall contain provisions
3-6 pursuant to which the provider of the energy conservation measures
3-7 guarantees the amount of the savings to be realized by the school
3-8 district under the contract. If the term of a contract for energy
3-9 conservation measures exceeds one year, the school district's
3-10 contractual obligations in any one year during the term of the
3-11 contract may not exceed the total energy and operating cost
3-12 savings, including but not limited to electrical, gas, or other
3-13 utility cost savings and operating cost savings resulting from
3-14 automatic monitoring and control as determined by the school
3-15 district in this subsection, divided by the number of years in the
3-16 contract term.
3-17 (g) [(e)] A contract under this section may be let under
3-18 competitive proposal procedures. Notice of the request for
3-19 proposals shall be published in the manner provided for competitive
3-20 bidding. Requests for proposals must solicit quotations and must
3-21 specify the relative importance of guaranteed savings, price,
3-22 return on investment, financial performance and stability, quality,
3-23 technical ability, experience, and other evaluation factors. The
3-24 contract shall be awarded to the responsible offeror whose
3-25 proposal, following negotiations, is determined to be the most
3-26 advantageous to the school district considering the guaranteed
3-27 savings and other evaluations factors set forth in the request for
4-1 proposals.
4-2 (h) [(f)] To obtain the best final offers, the school
4-3 district may allow proposal revisions after submissions and before
4-4 the award of the contract.
4-5 SECTION 2. Section 51.927, Subchapter Z, Title 3, Education
4-6 Code, is amended to read as follows:
4-7 Sec. 51.927. Energy Conservation Measures. (a) The
4-8 governing board of an institution of higher education may enter
4-9 into a contract for energy conservation measures to reduce energy
4-10 consumption or operating costs of institutional facilities in
4-11 accordance with this section.
4-12 (b) A contract to which this section applies includes a
4-13 contract for the installation of:
4-14 (1) insulation of a building structure and systems
4-15 within a building;
4-16 (2) storm windows of doors, caulking or weather
4-17 stripping, multiglazed windows or doors, heat-absorbing or
4-18 heat-reflective glazed and coated window or door systems, or other
4-19 window or door system modifications that reduce energy consumption;
4-20 (3) automatic energy control systems, including
4-21 computer software and technical data licenses;
4-22 (4) heating, ventilating or air conditioning system
4-23 modifications or replacements;
4-24 (5) lighting fixtures that increase energy efficiency;
4-25 (6) energy recovery systems;
4-26 (7) electric systems improvements; or
4-27 (8) other energy conservation related improvements or
5-1 equipment (including improvements or equipment related to renewable
5-2 energy).
5-3 (c) All energy conservation measures must comply with
5-4 current local, state, and federal construction and environmental
5-5 codes and regulations. Notwithstanding anything to the contrary in
5-6 subsection (b), a contract for energy conservation measures shall
5-7 not include improvements or equipment that allow or cause water
5-8 from any condensing, cooling or industrial process or any system of
5-9 nonpotable usage over which the public water supply system
5-10 officials do not have sanitary control, to be returned to the
5-11 potable water supply.
5-12 (d) [(c)] The entity [person] with whom the board contracts
5-13 must be experienced in the design, implementation, and installation
5-14 of energy conservation measures.
5-15 (e) [(d)] Before entering into a contract for energy
5-16 conservation measures, the board shall require the provider of the
5-17 energy conservation measures to file with the board a payment and
5-18 performance bond that is in an amount the board finds reasonable
5-19 and necessary to protect the interests of the institution and is
5-20 conditioned on the faithful execution of the terms of the contract.
5-21 (f) [(e)] The board may enter into a contract for a period
5-22 of more than one year for energy conservation measures with an
5-23 entity [a person] if the board finds that the amount the
5-24 institutions would spend on the energy conservation measures will
5-25 not exceed the amount to be saved in energy and operating costs
5-26 over 10 years from the date of installation. If the term of a
5-27 contract for energy conservation measures exceeds one year, the
6-1 board's contractual obligation in any year during the term of the
6-2 contract may not exceed the total energy and operating cost
6-3 savings, including but not limited to electrical, gas, or other
6-4 utility cost savings and operating cost savings resulting from
6-5 automatic monitoring and control, as determined by the board in
6-6 this subsection, divided by the number of years in the contract
6-7 term. The board shall consider all costs of the energy
6-8 conservation measures, including costs of design, engineering,
6-9 installation, maintenance, repairs and debt service.
6-10 (g) [(f)] A contract for energy conservation measures may be
6-11 a lease/purchase contract, with a term not to exceed 10 years, that
6-12 meets federal tax requirements for tax-free municipal leasing or
6-13 long term financing. The contract shall contain provisions
6-14 pursuant to which the provider of the energy conservation measures
6-15 guarantees the amount of the savings to be realized by the
6-16 institution of higher education under the contract.
6-17 (h) [(g)] A contract under this section may be let under
6-18 competitive sealed proposal procedures. Notice of the request for
6-19 proposals shall be given in the manner provided for in Chapter
6-20 2156, Government Code [Sec. 3.12, Article 601b, Revised Statutes].
6-21 The Texas Higher Education Coordinating Board, in consultation with
6-22 the State Energy Conservation Office and the Texas Energy
6-23 Coordination Council, shall establish guidelines and an approval
6-24 process for contracts awarded under this section. The State Energy
6-25 Conservation Office and the Texas Energy Coordination Council shall
6-26 review the selected proposal before a contract is awarded [The
6-27 institution shall submit the proposals to the energy management
7-1 center for review and comment before awarding the contract]. The
7-2 State Energy Conservation Office [energy management center] may
7-3 provide a cost-benefit analysis of the proposals and analysis of
7-4 the guaranteed savings projected by offerors and may charge a fee
7-5 for this service. The contract shall be awarded to the
7-6 responsible offeror whose proposal, following negotiations, is
7-7 determined by the institution to be the most advantageous to the
7-8 institution considering the guaranteed savings and other evaluation
7-9 factors set forth in the request for proposals, except that if the
7-10 institution finds that no offer is acceptable, it shall refuse all
7-11 offers.
7-12 (i) [(h)] In accordance with regulations adopted by the
7-13 institution, the institution may conduct discussions with offerors
7-14 who submit proposals and who are determined to be reasonably
7-15 qualified for the award of the contract. Offerors shall be treated
7-16 fairly and equally with respect to any opportunity for discussion
7-17 and revision of proposals. To obtain the best final offers, the
7-18 institution may allow proposal revisions after submissions and
7-19 before the award of the contract.
7-20 (j) [(i)] If provided in a request for proposals under
7-21 Subsection (g) of this section, proposals shall be opened in a
7-22 manner that avoids disclosure of the contents to competing offerors
7-23 and keeps the proposals secret during negotiations. All proposals
7-24 are open for public inspection after a contract is awarded unless
7-25 the information is excepted from disclosure under Chapter 552,
7-26 Government Code.
7-27 (k) [(j)] The legislature shall base an institution's
8-1 appropriation for energy costs during a fiscal year on the sum of:
8-2 (1) the institution's estimated energy costs for that
8-3 fiscal year; and
8-4 (2) if a contract under this section is in effect, the
8-5 institution's estimated net savings resulting from the contract
8-6 during the contract term, divided by the number of years in the
8-7 contract term.
8-8 [(k) The Texas Higher Education Coordinating Board, in
8-9 consultation with the energy management center shall establish
8-10 guidelines and an approval process for energy conservation
8-11 measures.]
8-12 SECTION 3. Subchapter I, Chapter 2166, Title 10, Government
8-13 Code, is amended by adding Section 2166.406 to read as follows:
8-14 Sec. 2166.406. ENERGY CONSERVATION MEASURES. (a)
8-15 Notwithstanding any other provisions of this chapter, the governing
8-16 body of a state agency, without the consent of the commission, may
8-17 enter into a contract for energy conservation measures to reduce
8-18 energy consumption or operating costs of governmental facilities in
8-19 accordance with this section.
8-20 (b) A contract authorized under this chapter includes a
8-21 contract for the installation of:
8-22 (1) insulation of the building structure and systems
8-23 within the building;
8-24 (2) storm windows or doors, caulking or weather
8-25 stripping, multiglazed windows or doors, heat absorbing or heat
8-26 reflective glazed and coated window or door systems, or other
8-27 window or door system modifications that reduce energy consumption;
9-1 (3) automatic energy control systems, including
9-2 computer software and technical data licenses;
9-3 (4) heating, ventilating, or air-conditioning system
9-4 modifications or replacements;
9-5 (5) lighting fixtures that increase energy efficiency;
9-6 (6) energy recovery systems;
9-7 (7) electric systems improvements; or
9-8 (8) other energy conservation-related or improvements
9-9 or equipment (including improvements or equipment related to
9-10 renewable energy).
9-11 (c) All energy conservation measures must comply with
9-12 current local, state, and federal construction and environmental
9-13 codes and regulations. Notwithstanding anything to the contrary in
9-14 subsection (b), a contract for energy conservation measures shall
9-15 not include improvements or equipment that allow or cause water
9-16 from any condensing, cooling or industrial process or any system of
9-17 nonpotable usage over which the public water supply system
9-18 officials do not have sanitary control to be returned to the
9-19 potable water supply.
9-20 (d) The entity with whom the board contracts must be
9-21 experienced in the design, implementation, and installation of
9-22 energy conservation measures.
9-23 (e) Before entering into a contract for energy conservation
9-24 measures, the governing body of the state agency shall require the
9-25 provider of the energy conservation measures to file with the
9-26 governing body a payment and performance bond that is in an amount
9-27 the governing body finds reasonable and necessary to protect the
10-1 interests of the state agency and that is conditioned on the
10-2 faithful execution of the terms of the contract.
10-3 (f) The state agency may enter into a contract for a period
10-4 of more than one year for energy conservation measures with an
10-5 entity if the state agency finds that the amount the state agency
10-6 would spend on the energy conservation measures will not exceed the
10-7 amount to be saved in energy and operating costs over 10 years from
10-8 the date of installation.
10-9 (g) A contract for energy conservation measures, with
10-10 respect to existing buildings or facilities, may be a
10-11 lease/purchase contract with a term not to exceed 10 years, that
10-12 meets federal tax requirements for tax-free municipal leasing or
10-13 long term financing. The contract shall contain provisions
10-14 pursuant to which the provider of the energy conservation measures
10-15 guarantees the amount of the savings to be realized by the state
10-16 agency under the contract. If the term of a contract for energy
10-17 conservation measures exceeds one year, the agency's contractual
10-18 obligation in any year during the term of the contract may not
10-19 exceed the total energy and operating cost savings, including but
10-20 not limited to electrical, gas, or other utility cost savings and
10-21 operating cost savings resulting from automatic monitoring and
10-22 control, as determined by the state agency in this subsection,
10-23 divided by the number of years in the contract term.
10-24 (h) A contract under this chapter may be let under
10-25 competitive sealed proposal procedures. Notice of the request for
10-26 proposals shall be given in the manner provided for in Chapter
10-27 2156, Government Code. Before awarding the contract, the state
11-1 agency shall submit the selected proposal to the State Energy
11-2 Conservation Office, and the Texas Energy Coordination Council for
11-3 review and comment before awarding the contract. The State Energy
11-4 Conservation Office and the Texas Energy Coordination Council will
11-5 provide a cost-benefit analysis of the proposals and an analysis of
11-6 the guaranteed savings projected by offerors and may charge a fee
11-7 for this service. The contract shall be awarded to the responsible
11-8 offeror whose proposal, following negotiations, is determined to be
11-9 the most advantageous to the state agency considering the savings
11-10 and other evaluation factors set forth in the request for proposals
11-11 except that if the state agency finds that no offer is acceptable,
11-12 it shall refuse all offers.
11-13 (i) In accordance with regulations adopted by the state
11-14 agency, the state agency may conduct discussions with offerors who
11-15 submit proposals and who are determined to be reasonably qualified
11-16 for the award of the contract. Offerors shall be treated fairly
11-17 and equally with respect to any opportunity for discussion and
11-18 revision of proposals.
11-19 (j) If provided in a request for proposals, proposals shall
11-20 be opened in a manner that avoids disclosure of the contents to
11-21 competing offerors and keeps the proposals secret during
11-22 negotiations. All proposals are open for public inspection after a
11-23 contract is awarded unless the information is excepted from
11-24 disclosure under Chapter 552, Government Code.
11-25 (k) To obtain the best final offers, the state agency may
11-26 allow proposal revisions after submissions and before the award of
11-27 the contract. Final review and approval of the contract will be
12-1 provided by the State Energy Conservation Office.
12-2 (l) The legislature shall base an agency's appropriation for
12-3 energy costs during a fiscal year on the sum of:
12-4 (1) the agency's estimated energy costs for that
12-5 fiscal year; and
12-6 (2) if a contract under this section is in effect, the
12-7 agency's estimated net savings resulting from the contract during
12-8 the contract term, divided by the number of years in the contract
12-9 term.
12-10 SECTION 4. The importance of this legislation and the
12-11 crowded condition of the calendars in both houses create an
12-12 emergency and an imperative public necessity that the
12-13 constitutional rule requiring bills to be read on three several
12-14 days in each house be suspended, and this rule is hereby suspended,
12-15 and that this Act take effect and be in force from and after its
12-16 passage, and it is so enacted.