Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Holzheauser 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 CONVERSATION 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.
2-10 (d) [(c)] Notwithstanding any other law to the contrary,
2-11 b[B]efore entering into a contract for energy conservation
2-12 measures, the board may [shall], at its option, (i) require the
2-13 provider of the energy conservation measures to file with the board
2-14 a performance bond that is in an amount the board finds reasonable
2-15 and necessary to protect the interests of the school district and
2-16 that covers the value of the guaranteed savings on the contract and
2-17 is conditioned on the faithful execution of the terms of the
2-18 contract, or (ii) choose not to require a performance bond in
2-19 connection with the contract.
2-20 (e) [(d)] A contract for energy conservation measures, with
2-21 respect to existing buildings or facilities, may be a
2-22 lease/purchase contract, with a term not to exceed 10 years.[,]
2-23 The contract shall contain provisions pursuant to which the
2-24 provider of the energy conservation measures guarantees the amount
2-25 of the savings to be realized by the school district under the
2-26 contract that meets federal tax requirements for tax-free municipal
2-27 leasing or long-term financing.
2-28 (f) [(e)] A contract under this section may be let under
2-29 competitive proposal procedures. Notice of the request for
2-30 proposals shall be published in the manner provided for competitive
3-1 bidding. Requests for proposals must solicit quotations and must
3-2 specify the relative importance of guaranteed savings, price,
3-3 return on investment, financial performance and stability, quality,
3-4 technical ability, experience, and other evaluation factors. The
3-5 contract shall be awarded to the responsible offeror whose
3-6 proposal, following negotiations, is determined to be the most
3-7 advantageous to the school district considering the guaranteed
3-8 savings and other evaluations factors set forth in the request for
3-9 proposals.
3-10 (g) [(f)] To obtain the best final offers, the school
3-11 district may allow proposal revisions after submissions and before
3-12 the award of the contract.
3-13 SECTION 2. Section 51.927, Subchapter Z, Title 3, Education
3-14 Code, is amended to read as follows:
3-15 Sec. 51.927. Energy Conservation Measures. (a) The
3-16 governing board of an institution of higher education may enter
3-17 into a contract for energy conservation measures to reduce energy
3-18 consumption or operating costs of institutional facilities in
3-19 accordance with this section.
3-20 (b) A contract to which this section applies includes a
3-21 contract for the installation of:
3-22 (1) insulation of a building structure and systems
3-23 within a building;
3-24 (2) storm windows of doors, caulking or weather
3-25 stripping, multiglazed windows or doors, heat-absorbing or
3-26 heat-reflective glazed and coated window or door systems, or other
3-27 window or door system modifications that reduce energy consumption;
3-28 (3) automatic energy control systems, including
3-29 computer software and technical data licenses;
3-30 (4) heating, ventilating, or air conditioning system
4-1 modifications or replacements;
4-2 (5) lighting fixtures that increase energy efficiency;
4-3 (6) energy recovery systems;
4-4 (7) electric systems improvements; or
4-5 (8) other energy conservation related improvements or
4-6 equipment (including improvements or equipment related to renewable
4-7 energy).
4-8 (c) All energy conservation measures must comply with
4-9 current local, state, and federal construction and environmental
4-10 codes and regulations.
4-11 (d) [(c)] The person with whom the board contracts must be
4-12 experienced in the design, implementation, and installation of
4-13 energy conservation measures.
4-14 (e) [(d)] Notwithstanding any other law to the contrary,
4-15 b[B]efore entering into a contract for energy conservation
4-16 measures, the board may [shall], at its option, (i) require the
4-17 provider of the energy conservation measures to file with the board
4-18 a performance bond that is in an amount the board finds reasonable
4-19 and necessary to protect the interests of the institution and is
4-20 conditioned on the faithful execution of the terms of the contract,
4-21 or (ii) choose not to require a performance bond in connection with
4-22 the contract.
4-23 (f) [(e)] The board may enter into a contract for a period
4-24 of more than one year for energy conservation measures with a
4-25 person if the board finds that the amount the institutions would
4-26 spend on the energy conservation measures will not exceed the
4-27 amount to be saved in energy and operating costs over 10 years from
4-28 the date of installation. Before entering into a contract for
4-29 energy conservation measures, the institution of higher education
4-30 may require the provider of energy conservation measures to provide
5-1 satisfactory evidence of fiscal responsibility to ensure that the
5-2 institution of higher education's interests are protected to the
5-3 extent it deems necessary to ensure projected savings are realized
5-4 from the contract. If the term of a contract for energy
5-5 conservation measures exceeds one year, the board's contractual
5-6 obligation in any year during the term of the contract may not
5-7 exceed the total energy and operating cost savings, including but
5-8 not limited to electrical, gas, or other utility cost savings and
5-9 operating cost savings resulting from automatic monitoring and
5-10 control, as determined by the board in this subsection, divided by
5-11 the number of years in the contract term. The board shall consider
5-12 all costs of the energy conservation measures, including costs of
5-13 design, engineering, installation, maintenance, repairs, and debt
5-14 service.
5-15 (g) [(f)] A contract for energy conservation measures may be
5-16 a lease/purchase contract, with a term not to exceed 10 years.[,]
5-17 The contract shall contain provisions pursuant to which the
5-18 provider of the energy conservation measures guarantees the amount
5-19 of the savings to be realized by the institution of higher
5-20 education under the contract that meets federal tax requirements
5-21 for tax-free municipal leasing or long term financing.
5-22 (h) [(g)] A contract under this section may be let under
5-23 competitive sealed proposal procedures. Notice of the request for
5-24 proposals shall be given in the manner provided for in Chapter
5-25 2156, Government Code [Sec. 3.12, Article 601b, Revised Statutes].
5-26 The institution shall submit the proposals to the State Energy
5-27 Conservation Office, a division of the General Services Commission,
5-28 and the Texas Energy Coordination Council [energy management
5-29 center] for review and comment before awarding the contract. The
5-30 State Energy Conservation Office [energy management center] may
6-1 provide cost-benefit analysis of the proposals and analysis of the
6-2 guaranteed savings projected by offerors and may charge a fee for
6-3 this service. The contract shall be awarded to the responsible
6-4 offeror whose proposal, following negotiations, is determined by
6-5 the institution to be the most advantageous to the institution
6-6 considering the guaranteed savings and other evaluation factors set
6-7 forth in the request for proposals, except that if the institution
6-8 finds that no offer is acceptable, it shall refuse all offers.
6-9 (i) [(h)] In accordance with regulations adopted by the
6-10 institution, the institution may conduct discussions with offerors
6-11 who submit proposals and who are determined to be reasonably
6-12 qualified for the award of the contract. Offerors shall be treated
6-13 fairly and equally with respect to any opportunity for discussion
6-14 and revision of proposals. To obtain the best final offers, the
6-15 institution may allow proposal revisions after submissions and
6-16 before the award of the contract.
6-17 (j) [(i)] If provided in a request for proposals under
6-18 Subsection (g) of this section, proposals shall be opened in a
6-19 manner that avoids disclosure of the contents to competing offerors
6-20 and keeps the proposals secret during negotiations. All proposals
6-21 are open for public inspection after a contract is awarded unless
6-22 the information is excepted from disclosure under Chapter 552,
6-23 Government Code.
6-24 (k) [(j)] The legislature shall base an institution's
6-25 appropriation for energy costs during a fiscal year on the sum of:
6-26 (1) the institution's estimated energy costs for that
6-27 fiscal year; and
6-28 (2) if a contract under this section is in effect, the
6-29 institution's estimated net savings resulting from the contract
6-30 during the contract term, divided by the number of years in the
7-1 contract term.
7-2 (l) [(k)] The Texas Higher Education Coordinating Board, in
7-3 consultation with the State Energy Conservation Office [energy
7-4 management center] and the Texas Energy Coordination Council, shall
7-5 establish guidelines and an approval process for energy
7-6 conservation measures.
7-7 SECTION 3. Subchapter I, Chapter 2166, Title 10, Government
7-8 Code, is amended by adding Section 2166.406 to read as follows:
7-9 Sec. 2166.406. ENERGY CONSERVATION MEASURES. (a)
7-10 Notwithstanding any other provisions of this chapter, the governing
7-11 body of a state agency, without the consent of the commission, may
7-12 enter into a contract for energy conservation measures to reduce
7-13 energy consumption or operating costs of governmental facilities in
7-14 accordance with this section.
7-15 (b) A contract authorized under this chapter includes a
7-16 contract for the installation of:
7-17 (1) insulation of the building structure and systems
7-18 within the building;
7-19 (2) storm windows or doors, caulking or weather
7-20 stripping, multiglazed windows or doors, heat absorbing or heat
7-21 reflective glazed and coated window or door systems, or other
7-22 window or door system modifications that reduce energy consumption;
7-23 (3) automatic energy control systems, including
7-24 computer software and technical data licenses;
7-25 (4) heating, ventilating, or air-conditioning system
7-26 modifications or replacements;
7-27 (5) lighting fixtures that increase energy efficiency;
7-28 (6) energy recovery systems;
7-29 (7) electric systems improvements; or
7-30 (8) other energy conservation - related or
8-1 improvements or equipment (including improvements or equipment
8-2 related to renewable energy).
8-3 (c) All energy conservation measures must comply with
8-4 current local, state, and federal construction and environmental
8-5 codes and regulations.
8-6 (d) The person with whom the board contracts must be
8-7 experienced in the design, implementation, and installation of
8-8 energy conservation measures.
8-9 (e) Notwithstanding any other law to the contrary, before
8-10 entering into a contract for energy conservation measures, the
8-11 governing body of the state agency may, at its option, (i) require
8-12 the provider of the energy conservation measures to file with the
8-13 state agency a performance bond that is in an amount the governing
8-14 body finds reasonable and necessary to protect the interests of the
8-15 state agency, or (ii) choose not to require a performance bond in
8-16 connection with the contract.
8-17 (f) The board may enter into a contract for a period of more
8-18 than one year for energy conservation measures with a person if the
8-19 board finds that the amount the institution would spend on the
8-20 energy conservation measures will not exceed the amount to be saved
8-21 in energy and operating costs over 10 years from the date of
8-22 installation. Before entering into a contract for energy
8-23 conservation measures, the institution of higher education may
8-24 require the provider of energy conservation measures to provide
8-25 satisfactory evidence of fiscal responsibility to ensure that the
8-26 institution of higher education's interests are protected to the
8-27 extent it deems necessary to ensure projected savings are realized
8-28 from the contract.
8-29 (g) A contract for energy conservation measures, with
8-30 respect to existing buildings or facilities, may be a
9-1 lease/purchase contract with a term not to exceed 10 years. The
9-2 contract shall contain provisions pursuant to which the provider of
9-3 the energy conservation measures guarantees the amount of the
9-4 savings to be realized by the state agency under the contract that
9-5 meets federal tax requirements for tax-free municipal leasing or
9-6 long term financing.
9-7 (h) A contract under this chapter may be let under
9-8 competitive sealed proposal procedures. Notice of the request for
9-9 proposals shall be given in the manner provided for in Chapter
9-10 2156, Government Code. The institution shall submit the proposals
9-11 to the State Energy Conservation Office and the Texas Energy
9-12 Coordination Council for review and comment before awarding the
9-13 contract. The State Energy Conservation Office may provide
9-14 cost-benefit analysis of the proposals and analysis of the
9-15 guaranteed savings projected by offerors and may charge a fee for
9-16 this service. The contract shall be awarded to the responsible
9-17 offeror whose proposal, following negotiations, is determined to be
9-18 the most advantageous to the state agency considering the savings
9-19 and other evaluation factors set forth in the request for proposals
9-20 except that if the state agency finds that no offer is acceptable,
9-21 it shall refuse all offers.
9-22 (i) In accordance with regulations adopted by the
9-23 institution, the institution may conduct discussions with offerors
9-24 who submit proposals and who are determined to be reasonably
9-25 qualified for the award of the contract. Offerors shall be treated
9-26 fairly and equally with respect to any opportunity for discussion
9-27 and revision of proposals.
9-28 (j) If provided in a request for proposals under Subsection
9-29 (g) of this section, proposals shall be opened in a manner that
9-30 avoids disclosure of the contents to competing offerors and keeps
10-1 the proposals secret during negotiations. All proposals are open
10-2 for public inspection after a contract is awarded unless the
10-3 information is excepted from disclosure under Chapter 552,
10-4 Government Code.
10-5 (k) To obtain the best final offers, the state agency may
10-6 allow proposal revisions after submissions and before the award of
10-7 the contract.
10-8 SECTION 4. The importance of this legislation and the
10-9 crowded condition of the calendars in both houses create an
10-10 emergency and an imperative public necessity that the
10-11 constitutional rule requiring bills to be read on three several
10-12 days in each house be suspended, and this rule is hereby suspended,
10-13 and that this Act take effect and be in force from and after its
10-14 passage, and it is so enacted.