1-1     By:  Nelson                                           S.B. No. 1811

 1-2           (In the Senate - Filed March 14, 1997; March 24, 1997, read

 1-3     first time and referred to Committee on Education; April 11, 1997,

 1-4     reported adversely, with favorable Committee Substitute by the

 1-5     following vote:  Yeas 10, Nays 0; April 11, 1997, sent to printer.)

 1-6     COMMITTEE SUBSTITUTE FOR S.B. No. 1811                  By:  Bivins

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to energy conservation measures by institutions of higher

1-10     education, including the financing of such measures.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Subsections (e) and (f), Section 51.927,

1-13     Education Code, are amended to read as follows:

1-14           (e)  The board may enter into a contract for a period of more

1-15     than one year for energy conservation measures with a person if the

1-16     board finds that the amount the institution would spend on the

1-17     energy conservation measures will not exceed the amount to be saved

1-18     in energy and operating costs over 10 years from the date of

1-19     installation.  If the term of a contract for energy conservation

1-20     measures exceeds one year, the board's contractual obligation in

1-21     any year during the term of the contract beginning after the final

1-22     date of installation may not exceed the total energy and operating

1-23     cost savings, including but not limited to electrical, gas, or

1-24     other utility cost savings and operating cost savings resulting

1-25     from automatic monitoring and control, as determined by the board

1-26     in this subsection, divided by the number of years in the contract

1-27     term beginning after the final date of installation.  The board

1-28     shall consider all costs of the energy conservation measures,

1-29     including costs of design, engineering, installation, maintenance,

1-30     repairs, and debt service.

1-31           (f)  A contract for energy conservation measures may be a

1-32     lease/purchase contract, with a term not to exceed 10 years after

1-33     the final date of installation, that meets federal tax requirements

1-34     for tax-free municipal leasing or long-term financing.  The Master

1-35     Equipment Lease Purchase Program operated by the Texas Public

1-36     Finance Authority may be utilized by an institution to fund a

1-37     contract for energy conservation measures so long as the costs of

1-38     the energy conservation measures, including costs of design,

1-39     engineering, installation, maintenance, repairs, and anticipated

1-40     debt service requirements of the Master Equipment Lease Purchase

1-41     Program, do not exceed the total energy and operating cost savings,

1-42     as described in Subsection (e), beginning after the final date of

1-43     installation.

1-44           SECTION 2.  The importance of this legislation and the

1-45     crowded condition of the calendars in both houses create an

1-46     emergency and an imperative public necessity that the

1-47     constitutional rule requiring bills to be read on three several

1-48     days in each house be suspended, and this rule is hereby suspended,

1-49     and that this Act take effect and be in force from and after its

1-50     passage, and it is so enacted.

1-51                                  * * * * *