PDH C.S.H.B. 2492 76(R) BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2492 By: Lewis, Ron Energy Resources 3/30/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, an institution of higher education, school district, state agency, or local government is authorized to enter into a contract for energy conservation measures, also known as Energy Savings Performance Contracting (ESPC). C.S.H.B. 2492 modifies and makes uniform the language of the four sections of law which govern ESPC by amending ESPC funding options and specifying when the term of ESPC begins. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 44.901, Education Code, by amending Subsections (f)-(h) to authorize energy conservation measures, with respect to existing buildings or facilities of a school district, to be financed under a lease/purchase contract that has a term not to exceed 15 years, rather than 10 years, and provides that the term of such lease/purchase contract begins on the final date of installation. Adds the ability to finance energy conservation measures with the proceeds of bonds or under a contract with the provider of the energy conservation measures that has a term of 15 years, at most, from the final date of installation. Makes conforming changes and redesignates Subsections (g) and (h) to (h) and (i). SECTION 2. Amends Section 51.927, Education Code, as amended by Chapters 627 and 1142, Acts of the 75th Legislature, Regular Session, 1997, by reenacting and amending Subsections (f)-(k) to authorize energy conservation measures for institutions of higher education to be financed under a lease/purchase contract that has a term not to exceed 15 years, rather than 10 years. Adds the ability to finance energy conservation measures with the proceeds of bonds or under a contract with the provider of the energy conservation measures that has a term of 15 years, at most, from the final date of installation. Makes conforming changes and redesignates Subsections (h)-(k) to (i)-(l). SECTION 3. Amends Section 2166.406, Government Code, by amending Subsections (b) and (f)-(l) to authorize energy conservation measures, with respect to existing buildings or facilities of a state agency, to be financed under a lease/purchase contract that has a term not to exceed 15 years, rather than 10 years, and provides that the term of such lease/purchase contract begins on the final date of installation. Adds the ability to finance energy conservation measures with the proceeds of bonds or under a contract with the provider of the energy conservation measures that has a term of 15 years, at most, from the final date of installation. Makes conforming changes and redesignates Subsections (h)-(l) to (i)-(m). SECTION 4. Amends Section 302.004, Local Government Code, as follows: Sec. 302.004. New title: "METHOD OF FINANCING; TERMS OF CONTRACT." Authorizes energy conservation measures, with respect to existing buildings or facilities of a local government entity, to be financed under a lease/purchase contract that has a term not to exceed 15 years, rather than 10 years, and provides that the term of such lease/purchase contract begins on the final date of installation. Adds the ability to finance energy conservation measures with the proceeds of bonds or under a contract with the provider of the energy conservation measures that has a term of 15 years, at most, from the final date of installation. Makes conforming changes. (Deletes old title which read "LEASE-PURCHASE CONTRACT AUTHORIZED.") SECTION 5. Provides that to the extent of any conflict, this Act prevails over another Act of the 76th Legislature, Regular Session, 1999, relating to nonsubstantive additions and corrections in enacted codes, including H.B. 3156 or S.B. 1368. SECTION 6. Effective date: September 1, 1999. SECTION 7. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original to conform to the legislative council format. The substitute adds a new SECTION 5 which provides that to the extent of any conflict, this Act prevails over another Act of the Regular Session of the 76th Legislature relating to nonsubstantive additions and corrections in enacted codes.