AN ACT 1-1 relating to energy conservation measures by institutions of higher 1-2 education, including the financing of such measures. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subsections (e) and (f), Section 51.927, 1-5 Education Code, are amended to read as follows: 1-6 (e) The board may enter into a contract for a period of more 1-7 than one year for energy conservation measures with a person if the 1-8 board finds that the amount the institution would spend on the 1-9 energy conservation measures will not exceed the amount to be saved 1-10 in energy and operating costs over 10 years from the date of 1-11 installation. If the term of a contract for energy conservation 1-12 measures exceeds one year, the board's contractual obligation in 1-13 any year during the term of the contract beginning after the final 1-14 date of installation may not exceed the total energy and operating 1-15 cost savings, including but not limited to electrical, gas, or 1-16 other utility cost savings and operating cost savings resulting 1-17 from automatic monitoring and control, as determined by the board 1-18 in this subsection, divided by the number of years in the contract 1-19 term beginning after the final date of installation. The board 1-20 shall consider all costs of the energy conservation measures, 1-21 including costs of design, engineering, installation, maintenance, 1-22 repairs, and debt service. 1-23 (f) A contract for energy conservation measures may be a 2-1 lease/purchase contract, with a term not to exceed 10 years after 2-2 the final date of installation, that meets federal tax requirements 2-3 for tax-free municipal leasing or long-term financing. The Master 2-4 Equipment Lease Purchase Program operated by the Texas Public 2-5 Finance Authority may be utilized by an institution to fund a 2-6 contract for energy conservation measures so long as the costs of 2-7 the energy conservation measures, including costs of design, 2-8 engineering, installation, maintenance, repairs, and anticipated 2-9 debt service requirements of the Master Equipment Lease Purchase 2-10 Program, do not exceed the total energy and operating cost savings, 2-11 as described in Subsection (e), beginning after the final date of 2-12 installation. 2-13 SECTION 2. The importance of this legislation and the 2-14 crowded condition of the calendars in both houses create an 2-15 emergency and an imperative public necessity that the 2-16 constitutional rule requiring bills to be read on three several 2-17 days in each house be suspended, and this rule is hereby suspended, 2-18 and that this Act take effect and be in force from and after its 2-19 passage, and it is so enacted. _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 1811 passed the Senate on April 28, 1997, by the following vote: Yeas 31, Nays 0. _______________________________ Secretary of the Senate I hereby certify that S.B. No. 1811 passed the House on May 21, 1997, by the following vote: Yeas 145, Nays 0, two present not voting. _______________________________ Chief Clerk of the House Approved: _______________________________ Date _______________________________ Governor