By:  Nelson                                           S.B. No. 1811

                                A BILL TO BE ENTITLED

                                       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.