1-1 By: Holzheauser (Senate Sponsor - Cain) H.B. No. 3530
1-2 (In the Senate - Received from the House May 7, 1997;
1-3 May 8, 1997, read first time and referred to Committee on State
1-4 Affairs; May 18, 1997, reported favorably by the following vote:
1-5 Yeas 13, Nays 0; May 18, 1997, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to energy savings projects for school districts,
1-9 institutions of higher education, and state agencies.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 44.901, Education Code, is amended to
1-12 read as follows:
1-13 Sec. 44.901. ENERGY CONSERVATION MEASURES. (a) The board
1-14 of trustees of a school district may enter into a contract for
1-15 energy conservation measures to reduce energy consumption or
1-16 operating costs of school facilities in accordance with this
1-17 section.
1-18 (b) A contract to which this section applies includes a
1-19 contract for the installation of:
1-20 (1) insulation of the building structures and systems
1-21 within the building;
1-22 (2) storm windows or doors, caulking or
1-23 weatherstripping, multiglazed windows or doors, heat absorbing or
1-24 heat reflective glazed and coated window or door systems, or other
1-25 window or door system modifications that reduce energy consumption;
1-26 (3) automatic energy control systems, including
1-27 computer software and technical data licenses;
1-28 (4) heating, ventilating, or air-conditioning system
1-29 modifications or replacements;
1-30 (5) lighting fixtures that increase energy efficiency;
1-31 [or]
1-32 (6) energy recovery systems;
1-33 (7) electric systems improvements; or
1-34 (8) other energy conservation-related improvements or
1-35 equipment (including improvements or equipment relating to
1-36 renewable energy).
1-37 (c) All energy conservation measures must comply with
1-38 current local, state, and federal construction and environmental
1-39 codes and regulations. Notwithstanding anything to the contrary in
1-40 Subsection (b), a contract for energy conservation measures shall
1-41 not include improvements or equipment that allow or cause water
1-42 from any condensing, cooling, or industrial process or any system
1-43 of nonpotable usage over which the public water supply system
1-44 officials do not have sanitary control, to be returned to the
1-45 potable water supply.
1-46 (d) The person with whom the board contracts must be
1-47 experienced in the design, implementation, and installation of
1-48 energy conservation measures.
1-49 (e) [(c)] Before entering into a contract for energy
1-50 conservation measures, the board shall require the provider of the
1-51 energy conservation measures to file with the board a payment and
1-52 performance bond relating to the installation of energy
1-53 conservation measures that is in an amount the board finds
1-54 reasonable and necessary to protect the interests of the school
1-55 district and that may also cover [covers] the value of the
1-56 guaranteed savings on the contract and is conditioned on the
1-57 faithful execution of the terms of the contract.
1-58 (f) [(d)] A contract for energy conservation measures, with
1-59 respect to existing buildings or facilities, may be a
1-60 lease/purchase contract, with a term not to exceed 10 years, that
1-61 meets federal tax requirements for tax-free municipal leasing or
1-62 long-term financing. The contract shall contain provisions
1-63 pursuant to which the provider of the energy conservation measures
1-64 guarantees the amount of the savings to be realized by the school
2-1 district under the contract. If the term of a contract for energy
2-2 conservation measures exceeds one year, the school district's
2-3 contractual obligations in any one year during the term of the
2-4 contract may not exceed the total energy and operating cost
2-5 savings, including but not limited to electrical, gas, or other
2-6 utility cost savings and operating cost savings resulting from
2-7 automatic monitoring and control as determined by the school
2-8 district in this subsection, divided by the number of years in the
2-9 contract term.
2-10 (g) [(e)] A contract under this section may be let under
2-11 competitive proposal procedures. Notice of the request for
2-12 proposals shall be published in the manner provided for competitive
2-13 bidding. Requests for proposals must solicit quotations and must
2-14 specify the relative importance of guaranteed savings, price,
2-15 return on investment, financial performance and stability, quality,
2-16 technical ability, experience, and other evaluation factors. The
2-17 contract shall be awarded to the responsible offeror whose
2-18 proposal, following negotiations, is determined to be the most
2-19 advantageous to the school district considering the guaranteed
2-20 savings and other evaluation factors set forth in the request for
2-21 proposals.
2-22 (h) [(f)] To obtain the best final offers, the school
2-23 district may allow proposal revisions after submissions and before
2-24 the award of the contract.
2-25 SECTION 2. Section 51.927, Education Code, is amended to
2-26 read as follows:
2-27 Sec. 51.927. Energy Conservation Measures. (a) The
2-28 governing board of an institution of higher education may enter
2-29 into a contract for energy conservation measures to reduce energy
2-30 consumption or operating costs of institutional facilities in
2-31 accordance with this section.
2-32 (b) A contract to which this section applies includes a
2-33 contract for the installation of:
2-34 (1) insulation of a building structure and systems
2-35 within a building;
2-36 (2) storm windows of doors, caulking or weather
2-37 stripping, multiglazed windows or doors, heat-absorbing or
2-38 heat-reflective glazed and coated window or door systems, or other
2-39 window or door system modifications that reduce energy consumption;
2-40 (3) automatic energy control systems, including
2-41 computer software and technical data licenses;
2-42 (4) heating, ventilating, or air conditioning system
2-43 modifications or replacements;
2-44 (5) lighting fixtures that increase energy efficiency;
2-45 (6) energy recovery systems;
2-46 (7) electric systems improvements; or
2-47 (8) other energy conservation-related improvements or
2-48 equipment (including improvements or equipment related to renewable
2-49 energy).
2-50 (c) All energy conservation measures must comply with
2-51 current local, state, and federal construction and environmental
2-52 codes and regulations. Notwithstanding anything to the contrary in
2-53 Subsection (b), a contract for energy conservation measures shall
2-54 not include improvements or equipment that allow or cause water
2-55 from any condensing, cooling, or industrial process or any system
2-56 of nonpotable usage over which the public water supply system
2-57 officials do not have sanitary control, to be returned to the
2-58 potable water supply.
2-59 (d) [(c)] The entity [person] with whom the board contracts
2-60 must be experienced in the design, implementation, and installation
2-61 of energy conservation measures.
2-62 (e) [(d)] Before entering into a contract for energy
2-63 conservation measures, the board shall require the provider of the
2-64 energy conservation measures to file with the board a payment and
2-65 performance bond that is in an amount the board finds reasonable
2-66 and necessary to protect the interests of the institution and is
2-67 conditioned on the faithful execution of the terms of the contract.
2-68 (f) [(e)] The board may enter into a contract for a period
2-69 of more than one year for energy conservation measures with an
3-1 entity [a person] if the board finds that the amount the
3-2 institution would spend on the energy conservation measures will
3-3 not exceed the amount to be saved in energy and operating costs
3-4 over 10 years from the date of installation. If the term of a
3-5 contract for energy conservation measures exceeds one year, the
3-6 board's contractual obligation in any year during the term of the
3-7 contract may not exceed the total energy and operating cost
3-8 savings, including but not limited to electrical, gas, or other
3-9 utility cost savings and operating cost savings resulting from
3-10 automatic monitoring and control, as determined by the board in
3-11 this subsection, divided by the number of years in the contract
3-12 term. The board shall consider all costs of the energy
3-13 conservation measures, including costs of design, engineering,
3-14 installation, maintenance, repairs, and debt service.
3-15 (g) [(f)] A contract for energy conservation measures may be
3-16 a lease/purchase contract, with a term not to exceed 10 years, that
3-17 meets federal tax requirements for tax-free municipal leasing or
3-18 long-term financing. The contract shall contain provisions
3-19 pursuant to which the provider of the energy conservation measures
3-20 guarantees the amount of the savings to be realized by the
3-21 institution of higher education under the contract.
3-22 (h) [(g)] A contract under this section may be let under
3-23 competitive sealed proposal procedures. Notice of the request for
3-24 proposals shall be given in the manner provided for in Chapter
3-25 2156, Government Code [Sec. 3.12, Article 601b, Revised Statutes].
3-26 The Texas Higher Education Coordinating Board, in consultation with
3-27 the State Energy Conservation Office and the Texas Energy
3-28 Coordination Council, shall establish guidelines and an approval
3-29 process for contracts awarded under this section. The State Energy
3-30 Conservation Office and the Texas Energy Coordination Council shall
3-31 review the selected proposal before a contract is awarded [The
3-32 institution shall submit the proposals to the energy management
3-33 center for review and comment before awarding the contract]. The
3-34 State Energy Conservation Office [energy management center] may
3-35 provide a cost-benefit analysis of the proposals and analysis of
3-36 the guaranteed savings projected by offerors and may charge a fee
3-37 for this service. The contract shall be awarded to the
3-38 responsible offeror whose proposal, following negotiations, is
3-39 determined by the institution to be the most advantageous to the
3-40 institution considering the guaranteed savings and other evaluation
3-41 factors set forth in the request for proposals, except that if the
3-42 institution finds that no offer is acceptable, it shall refuse all
3-43 offers.
3-44 (i) [(h)] In accordance with regulations adopted by the
3-45 institution, the institution may conduct discussions with offerors
3-46 who submit proposals and who are determined to be reasonably
3-47 qualified for the award of the contract. Offerors shall be treated
3-48 fairly and equally with respect to any opportunity for discussion
3-49 and revision of proposals. To obtain the best final offers, the
3-50 institution may allow proposal revisions after submissions and
3-51 before the award of the contract.
3-52 (j) [(i)] If provided in a request for proposals under
3-53 Subsection (g) of this section, proposals shall be opened in a
3-54 manner that avoids disclosure of the contents to competing offerors
3-55 and keeps the proposals secret during negotiations. All proposals
3-56 are open for public inspection after a contract is awarded unless
3-57 the information is excepted from disclosure under Chapter 552,
3-58 Government Code.
3-59 (k) [(j)] The legislature shall base an institution's
3-60 appropriation for energy costs during a fiscal year on the sum of:
3-61 (1) the institution's estimated energy costs for that
3-62 fiscal year; and
3-63 (2) if a contract under this section is in effect, the
3-64 institution's estimated net savings resulting from the contract
3-65 during the contract term, divided by the number of years in the
3-66 contract term.
3-67 [(k) The Texas Higher Education Coordinating Board, in
3-68 consultation with the energy management center, shall establish
3-69 guidelines and an approval process for energy conservation
4-1 measures.]
4-2 SECTION 3. Subchapter I, Chapter 2166, Government Code, is
4-3 amended by adding Section 2166.406 to read as follows:
4-4 Sec. 2166.406. ENERGY CONSERVATION MEASURES. (a)
4-5 Notwithstanding any other provisions of this chapter, the governing
4-6 body of a state agency, without the consent of the commission, may
4-7 enter into a contract for energy conservation measures to reduce
4-8 energy consumption or operating costs of governmental facilities in
4-9 accordance with this section.
4-10 (b) A contract authorized under this chapter includes a
4-11 contract for the installation of:
4-12 (1) insulation of the building structure and systems
4-13 within the building;
4-14 (2) storm windows or doors, caulking or weather
4-15 stripping, multiglazed windows or doors, heat absorbing or heat
4-16 reflective glazed and coated window or door systems, or other
4-17 window or door system modifications that reduce energy consumption;
4-18 (3) automatic energy control systems, including
4-19 computer software and technical data licenses;
4-20 (4) heating, ventilating, or air-conditioning system
4-21 modifications or replacements;
4-22 (5) lighting fixtures that increase energy efficiency;
4-23 (6) energy recovery systems;
4-24 (7) electric systems improvements; or
4-25 (8) other energy conservation-related improvements or
4-26 equipment (including improvements or equipment related to renewable
4-27 energy).
4-28 (c) All energy conservation measures must comply with
4-29 current local, state, and federal construction and environmental
4-30 codes and regulations. Notwithstanding anything to the contrary in
4-31 Subsection (b), a contract for energy conservation measures shall
4-32 not include improvements or equipment that allow or cause water
4-33 from any condensing, cooling, or industrial process or any system
4-34 of nonpotable usage over which the public water supply system
4-35 officials do not have sanitary control to be returned to the
4-36 potable water supply.
4-37 (d) The entity with whom the board contracts must be
4-38 experienced in the design, implementation, and installation of
4-39 energy conservation measures.
4-40 (e) Before entering into a contract for energy conservation
4-41 measures, the governing body of the state agency shall require the
4-42 provider of the energy conservation measures to file with the
4-43 governing body a payment and performance bond that is in an amount
4-44 the governing body finds reasonable and necessary to protect the
4-45 interests of the state agency and that is conditioned on the
4-46 faithful execution of the terms of the contract.
4-47 (f) The state agency may enter into a contract for a period
4-48 of more than one year for energy conservation measures with an
4-49 entity if the state agency finds that the amount the state agency
4-50 would spend on the energy conservation measures will not exceed the
4-51 amount to be saved in energy and operating costs over 10 years from
4-52 the date of installation.
4-53 (g) A contract for energy conservation measures, with
4-54 respect to existing buildings or facilities, may be a
4-55 lease/purchase contract with a term not to exceed 10 years, that
4-56 meets federal tax requirements for tax-free municipal leasing or
4-57 long-term financing. The contract shall contain provisions
4-58 pursuant to which the provider of the energy conservation measures
4-59 guarantees the amount of the savings to be realized by the state
4-60 agency under the contract. If the term of a contract for energy
4-61 conservation measures exceeds one year, the agency's contractual
4-62 obligation in any year during the term of the contract may not
4-63 exceed the total energy and operating cost savings, including but
4-64 not limited to electrical, gas, or other utility cost savings and
4-65 operating cost savings resulting from automatic monitoring and
4-66 control, as determined by the state agency in this subsection,
4-67 divided by the number of years in the contract term.
4-68 (h) A contract under this chapter may be let under
4-69 competitive sealed proposal procedures. Notice of the request for
5-1 proposals shall be given in the manner provided for in Chapter
5-2 2156, Government Code. Before awarding the contract, the state
5-3 agency shall submit the selected proposal to the State Energy
5-4 Conservation Office and the Texas Energy Coordination Council for
5-5 review and comment before awarding the contract. The State Energy
5-6 Conservation Office and the Texas Energy Coordination Council will
5-7 provide a cost-benefit analysis of the proposals and an analysis of
5-8 the guaranteed savings projected by offerors and may charge a fee
5-9 for this service. The contract shall be awarded to the responsible
5-10 offeror whose proposal, following negotiations, is determined to be
5-11 the most advantageous to the state agency considering the savings
5-12 and other evaluation factors set forth in the request for proposals
5-13 except that if the state agency finds that no offer is acceptable,
5-14 it shall refuse all offers.
5-15 (i) In accordance with regulations adopted by the state
5-16 agency, the state agency may conduct discussions with offerors who
5-17 submit proposals and who are determined to be reasonably qualified
5-18 for the award of the contract. Offerors shall be treated fairly
5-19 and equally with respect to any opportunity for discussion and
5-20 revision of proposals.
5-21 (j) If provided in a request for proposals, proposals shall
5-22 be opened in a manner that avoids disclosure of the contents to
5-23 competing offerors and keeps the proposals secret during
5-24 negotiations. All proposals are open for public inspection after a
5-25 contract is awarded unless the information is excepted from
5-26 disclosure under Chapter 552, Government Code.
5-27 (k) To obtain the best final offers, the state agency may
5-28 allow proposal revisions after submissions and before the award of
5-29 the contract. Final review and approval of the contract will be
5-30 provided by the State Energy Conservation Office.
5-31 (l) The legislature shall base an agency's appropriation for
5-32 energy costs during a fiscal year on the sum of:
5-33 (1) the agency's estimated energy costs for that
5-34 fiscal year; and
5-35 (2) if a contract under this section is in effect, the
5-36 agency's estimated net savings resulting from the contract during
5-37 the contract term, divided by the number of years in the contract
5-38 term.
5-39 SECTION 4. The importance of this legislation and the
5-40 crowded condition of the calendars in both houses create an
5-41 emergency and an imperative public necessity that the
5-42 constitutional rule requiring bills to be read on three several
5-43 days in each house be suspended, and this rule is hereby suspended,
5-44 and that this Act take effect and be in force from and after its
5-45 passage, and it is so enacted.
5-46 * * * * *