By:  Nelson                                           S.B. No. 1811

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                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.  Section 51.927, Education Code, is amended by

 1-5     amending Subsections (e) and (f) 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,

 2-1     repairs, and debt service.

 2-2           (f)  A contract for energy conservation measures may be a

 2-3     lease/purchase contract, with a term not to exceed 10 years after

 2-4     final date of installation, that meets federal tax requirements for

 2-5     tax-free municipal leasing or long-term financing.  The Master

 2-6     Lease Program operated by the Texas Public Finance Authority may be

 2-7     utilized by an agency to fund a contract for energy conservation

 2-8     measures so long as the costs of the energy conservation measures,

 2-9     including costs of design, engineering, installation, maintenance,

2-10     repairs, and anticipated debt service requirements of the Master

2-11     Lease Program do not exceed the total energy and operating cost

2-12     savings as described is subsection (e) of this section beginning

2-13     after the final date of installation.

2-14           SECTION 2.  The importance of this legislation and the

2-15     crowded condition of the calendars in both houses create an

2-16     emergency and an imperative public necessity that the

2-17     constitutional rule requiring bills to be read on three several

2-18     days in each house be suspended, and this rule is hereby suspended,

2-19     and that this Act take effect and be in force from and after its

2-20     passage, and it is so enacted.