HBA-SEB H.B. 2492 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2492
By: Lewis, Ron
Energy Resources
3/19/1999
Introduced



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).  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 Chapter 51, Education Code (Section 51.927), to
authorize the governing board of an institution of higher education (board)
to enter into a contract for a period of more than one year for energy
conservation measures with an entity if the board finds that the amount the
institution would spend on the measures will not exceed the amount to be
saved in energy and operating costs over 15, rather than 10, years from the
date of installation.  Authorizes a contract for energy conservation
measures to be financed under a lease-purchase agreement that meets federal
tax requirements for tax-free municipal leasing or long-term financing,
with bond funds, or by the provider of the measures with a term not to
exceed 15, rather than 10, years after the final date of installation.
Makes conforming and nonsubstantive changes. 

SECTION 2.  Amends Section 44.901(f), Education Code, to prohibit a school
district's contractual obligations for energy conservation measures from
exceeding the total energy and operating cost savings divided by the number
of years in the contract term in any one year during the term of the
contract beginning after the final date of installation.  Makes conforming
changes. 

SECTION 3.  Amends Section 2166.406(g), Government Code, to make conforming
changes with respect to the governing body of a state agency that enters
into a contract for energy conservation measures. 

SECTION 4.  Amends Section 302.004, Local Government Code, to make
conforming changes with respect to the governing body of a local government
that enters into a contract for energy conservation measures. 

SECTION 5.  Effective date: September 1, 1999.

SECTION 6.  Emergency clause.