By: Brown S.B. No. 305
A BILL TO BE ENTITLED
AN ACT
1-1 relating to contracts by school districts, institutions of higher
1-2 education, and state agencies for water conservation measures.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. The heading to Section 44.901, Education Code, is
1-5 amended to read as follows:
1-6 Sec. 44.901. ENERGY OR WATER CONSERVATION MEASURES.
1-7 SECTION 2. Subsections (a) through (f), Section 44.901,
1-8 Education Code, are amended to read as follows:
1-9 (a) The board of trustees of a school district may enter
1-10 into a contract for energy or water conservation measures to reduce
1-11 energy or water consumption or operating costs of school facilities
1-12 in accordance with this section.
1-13 (b) A contract to which this section applies includes a
1-14 contract for the installation of:
1-15 (1) insulation of the building structures and systems
1-16 within the building;
1-17 (2) storm windows or doors, caulking or
1-18 weatherstripping, multiglazed windows or doors, heat absorbing or
1-19 heat reflective glazed and coated window or door systems, or other
1-20 window or door system modifications that reduce energy consumption;
1-21 (3) automatic energy control systems, including
1-22 computer software and technical data licenses;
1-23 (4) heating, ventilating, or air-conditioning system
1-24 modifications or replacements that reduce energy or water
2-1 consumption;
2-2 (5) lighting fixtures that increase energy efficiency;
2-3 (6) energy recovery systems;
2-4 (7) electric systems improvements; [or]
2-5 (8) water-conserving landscape irrigation equipment;
2-6 (9) water-saving plumbing fixtures, appliances, or
2-7 equipment;
2-8 (10) water reuse, rainwater harvesting, or other
2-9 alternative water source technologies for landscape irrigation,
2-10 toilet and urinal flushing, or other purposes;
2-11 (11) substitution of non-water-using fixtures,
2-12 appliances, equipment, or practices for water-using fixtures,
2-13 appliances, equipment, or practices, if feasible; or
2-14 (12) other energy or water conservation-related
2-15 improvements or equipment (including improvements or equipment
2-16 relating to renewable energy).
2-17 (c) All energy or water conservation measures must comply
2-18 with current local, state, and federal construction and
2-19 environmental codes and regulations. Notwithstanding anything to
2-20 the contrary in Subsection (b), a contract for energy or water
2-21 conservation measures shall not include improvements or equipment
2-22 that allow or cause water from any condensing, cooling, or
2-23 industrial process or any system of nonpotable usage over which the
2-24 public water supply system officials do not have sanitary
2-25 control[,] to be returned to the potable water supply.
2-26 (d) The person with whom the board contracts must be
3-1 experienced in the design, implementation, and installation of the
3-2 energy or water conservation measures addressed by the contract.
3-3 (e) Before entering into a contract for energy or water
3-4 conservation measures, the board shall require the provider of the
3-5 energy or water conservation measures to file with the board a
3-6 payment and performance bond relating to the installation of energy
3-7 or water conservation measures that is in an amount the board finds
3-8 reasonable and necessary to protect the interests of the school
3-9 district and that may also cover the value of the guaranteed
3-10 savings on the contract and is conditioned on the faithful
3-11 execution of the terms of the contract.
3-12 (f) A contract for energy or water conservation measures,
3-13 with respect to existing buildings or facilities, may be a
3-14 lease/purchase contract, with a term not to exceed 10 years, that
3-15 meets federal tax requirements for tax-free municipal leasing or
3-16 long-term financing. The contract shall contain provisions
3-17 pursuant to which the provider of the energy or water conservation
3-18 measures guarantees the amount of the savings to be realized by the
3-19 school district under the contract. If the term of a contract for
3-20 energy or water conservation measures exceeds one year, the school
3-21 district's contractual obligations in any one year during the term
3-22 of the contract may not exceed the total energy or water and
3-23 operating cost savings, including but not limited to electrical,
3-24 gas, water, or other utility cost savings and operating cost
3-25 savings resulting from automatic monitoring and control as
3-26 determined by the school district in this subsection, divided by
4-1 the number of years in the contract term.
4-2 SECTION 3. Section 51.927, Education Code, as amended by
4-3 Chapters 627 and 1142, Acts of the 75th Legislature, Regular
4-4 Session, 1997, is reenacted and amended to read as follows:
4-5 Sec. 51.927. ENERGY OR WATER CONSERVATION MEASURES.
4-6 (a) The governing board of an institution of higher education may
4-7 enter into a contract for energy or water conservation measures to
4-8 reduce energy or water consumption or operating costs of
4-9 institutional facilities in accordance with this section.
4-10 (b) A contract to which this section applies includes a
4-11 contract for the installation of:
4-12 (1) insulation of a building structure and systems
4-13 within a building;
4-14 (2) storm windows of doors, caulking or weather
4-15 stripping, multiglazed windows or doors, heat-absorbing or
4-16 heat-reflective glazed and coated window or door systems, or other
4-17 window or door system modifications that reduce energy consumption;
4-18 (3) automatic energy control systems, including
4-19 computer software and technical data licenses;
4-20 (4) heating, ventilating, or air conditioning system
4-21 modifications or replacements that reduce energy or water
4-22 consumption;
4-23 (5) lighting fixtures that increase energy efficiency;
4-24 (6) energy recovery systems;
4-25 (7) electric systems improvements; [or]
4-26 (8) water-conserving landscape irrigation equipment;
5-1 (9) water-saving plumbing fixtures, appliances, or
5-2 equipment;
5-3 (10) water reuse, rainwater harvesting, or other
5-4 alternative water source technologies for landscape irrigation,
5-5 toilet and urinal flushing, or other purposes;
5-6 (11) substitution of non-water-using fixtures,
5-7 appliances, equipment, or practices for water-using fixtures,
5-8 appliances, equipment, or practices, if feasible; or
5-9 (12) other energy or water conservation-related
5-10 improvements or equipment (including improvements or equipment
5-11 related to renewable energy).
5-12 (c) All energy or water conservation measures must comply
5-13 with current local, state, and federal construction and
5-14 environmental codes and regulations. Notwithstanding anything to
5-15 the contrary in Subsection (b), a contract for energy or water
5-16 conservation measures shall not include improvements or equipment
5-17 that allow or cause water from any condensing, cooling, or
5-18 industrial process or any system of nonpotable usage over which the
5-19 public water supply system officials do not have sanitary
5-20 control[,] to be returned to the potable water supply.
5-21 (d) The entity with whom the board contracts must be
5-22 experienced in the design, implementation, and installation of the
5-23 energy or water conservation measures addressed by the contract.
5-24 (e) Before entering into a contract for energy or water
5-25 conservation measures, the board shall require the provider of the
5-26 energy or water conservation measures to file with the board a
6-1 payment and performance bond that is in an amount the board finds
6-2 reasonable and necessary to protect the interests of the
6-3 institution and is conditioned on the faithful execution of the
6-4 terms of the contract.
6-5 (f) The board may enter into a contract for a period of more
6-6 than one year for energy or water conservation measures with an
6-7 entity if the board finds that the amount the institution would
6-8 spend on the energy or water conservation measures will not exceed
6-9 the amount to be saved in energy or water and operating costs over
6-10 10 years from the date of installation. If the term of a contract
6-11 for energy or water conservation measures exceeds one year, the
6-12 board's contractual obligation in any year during the term of the
6-13 contract beginning after the final date of installation may not
6-14 exceed the total energy or water and operating cost savings,
6-15 including but not limited to electrical, gas, water, or other
6-16 utility cost savings and operating cost savings resulting from
6-17 automatic monitoring and control, as determined by the board in
6-18 this subsection, divided by the number of years in the contract
6-19 term beginning after the final date of installation. The board
6-20 shall consider all costs of the energy or water conservation
6-21 measures, including costs of design, engineering, installation,
6-22 maintenance, repairs, and debt service.
6-23 (g) A contract for energy or water conservation measures may
6-24 be a lease/purchase contract, with a term not to exceed 10 years
6-25 after the final date of installation, that meets federal tax
6-26 requirements for tax-free municipal leasing or long-term financing.
7-1 The contract shall contain provisions pursuant to which the
7-2 provider of the energy or water conservation measures guarantees
7-3 the amount of the savings to be realized by the institution of
7-4 higher education under the contract. The Master Equipment Lease
7-5 Purchase Program operated by the Texas Public Finance Authority may
7-6 be utilized by an institution to fund a contract for energy or
7-7 water conservation measures so long as the costs of the energy or
7-8 water conservation measures, including costs of design,
7-9 engineering, installation, maintenance, repairs, and anticipated
7-10 debt service requirements of the Master Equipment Lease Purchase
7-11 Program, do not exceed the total energy or water and operating cost
7-12 savings, as described in Subsection (f) [(e)], beginning after the
7-13 final date of installation.
7-14 (h) A contract under this section may be let under
7-15 competitive sealed proposal procedures. Notice of the request for
7-16 proposals shall be given in the manner provided for in Chapter
7-17 2156, Government Code. The Texas Higher Education Coordinating
7-18 Board, in consultation with the State Energy Conservation Office
7-19 and the Texas Energy Coordination Council with regard to energy
7-20 conservation measures, shall establish guidelines and an approval
7-21 process for contracts awarded under this section. The State Energy
7-22 Conservation Office and the Texas Energy Coordination Council shall
7-23 review the selected proposal before a contract for energy
7-24 conservation measures is awarded. The State Energy Conservation
7-25 Office may provide a cost-benefit analysis of the proposals for
7-26 energy conservation measures and analysis of the guaranteed savings
8-1 projected by offerors and may charge a fee for this service. The
8-2 contract shall be awarded to the responsible offeror whose
8-3 proposal, following negotiations, is determined by the institution
8-4 to be the most advantageous to the institution considering the
8-5 guaranteed savings and other evaluation factors set forth in the
8-6 request for proposals, except that if the institution finds that no
8-7 offer is acceptable, it shall refuse all offers.
8-8 (i) In accordance with regulations adopted by the
8-9 institution, the institution may conduct discussions with offerors
8-10 who submit proposals and who are determined to be reasonably
8-11 qualified for the award of the contract. Offerors shall be treated
8-12 fairly and equally with respect to any opportunity for discussion
8-13 and revision of proposals. To obtain the best final offers, the
8-14 institution may allow proposal revisions after submissions and
8-15 before the award of the contract.
8-16 (j) If provided in a request for proposals under Subsection
8-17 (h) [(g) of this section], proposals shall be opened in a manner
8-18 that avoids disclosure of the contents to competing offerors and
8-19 keeps the proposals secret during negotiations. All proposals are
8-20 open for public inspection after a contract is awarded unless the
8-21 information is excepted from disclosure under Chapter 552,
8-22 Government Code.
8-23 (k) The legislature shall base an institution's
8-24 appropriation for energy or water costs during a fiscal year on the
8-25 sum of:
8-26 (1) the institution's estimated energy or water costs
9-1 for that fiscal year; and
9-2 (2) if a contract under this section is in effect, the
9-3 institution's estimated net savings resulting from the contract
9-4 during the contract term, divided by the number of years in the
9-5 contract term.
9-6 SECTION 4. The heading to Section 2166.406, Government Code,
9-7 is amended to read as follows:
9-8 Sec. 2166.406. ENERGY OR WATER CONSERVATION MEASURES.
9-9 SECTION 5. Subsections (a) through (h), (k), and (l),
9-10 Section 2166.406, Government Code, are amended to read as follows:
9-11 (a) Notwithstanding any other provisions of this chapter,
9-12 the governing body of a state agency, without the consent of the
9-13 commission, may enter into a contract for energy or water
9-14 conservation measures to reduce energy or water consumption or
9-15 operating costs of governmental facilities in accordance with this
9-16 section.
9-17 (b) A contract authorized under this chapter includes a
9-18 contract for the installation of:
9-19 (1) insulation of the building structure and systems
9-20 within the building;
9-21 (2) storm windows or doors, caulking or weather
9-22 stripping, multiglazed windows or doors, heat absorbing or heat
9-23 reflective glazed and coated window or door systems, or other
9-24 window or door system modifications that reduce energy consumption;
9-25 (3) automatic energy control systems, including
9-26 computer software and technical data licenses;
10-1 (4) heating, ventilating, or air-conditioning system
10-2 modifications or replacements that reduce energy or water
10-3 consumption;
10-4 (5) lighting fixtures that increase energy efficiency;
10-5 (6) energy recovery systems;
10-6 (7) electric systems improvements; [or]
10-7 (8) water-conserving landscape irrigation equipment;
10-8 (9) water-saving plumbing fixtures, appliances, or
10-9 equipment;
10-10 (10) water reuse, rainwater harvesting, or other
10-11 alternative water source technologies for landscape irrigation,
10-12 toilet and urinal flushing, or other purposes;
10-13 (11) substitution of non-water-using fixtures,
10-14 appliances, equipment, or practices for water-using fixtures,
10-15 appliances, equipment, or practices, if feasible; or
10-16 (12) other energy or water conservation-related
10-17 improvements or equipment (including improvements or equipment
10-18 related to renewable energy).
10-19 (c) All energy or water conservation measures must comply
10-20 with current local, state, and federal construction and
10-21 environmental codes and regulations. Notwithstanding anything to
10-22 the contrary in Subsection (b), a contract for energy or water
10-23 conservation measures shall not include improvements or equipment
10-24 that allow or cause water from any condensing, cooling, or
10-25 industrial process or any system of nonpotable usage over which the
10-26 public water supply system officials do not have sanitary control
11-1 to be returned to the potable water supply.
11-2 (d) The entity with whom the board contracts must be
11-3 experienced in the design, implementation, and installation of the
11-4 energy or water conservation measures addressed by the contract.
11-5 (e) Before entering into a contract for energy or water
11-6 conservation measures, the governing body of the state agency shall
11-7 require the provider of the energy or water conservation measures
11-8 to file with the governing body a payment and performance bond that
11-9 is in an amount the governing body finds reasonable and necessary
11-10 to protect the interests of the state agency and that is
11-11 conditioned on the faithful execution of the terms of the contract.
11-12 (f) The state agency may enter into a contract for a period
11-13 of more than one year for energy or water conservation measures
11-14 with an entity if the state agency finds that the amount the state
11-15 agency would spend on the energy or water conservation measures
11-16 will not exceed the amount to be saved in energy or water and
11-17 operating costs over 10 years from the date of installation.
11-18 (g) A contract for energy or water conservation measures,
11-19 with respect to existing buildings or facilities, may be a
11-20 lease/purchase contract with a term not to exceed 10 years, that
11-21 meets federal tax requirements for tax-free municipal leasing or
11-22 long-term financing. The contract shall contain provisions
11-23 pursuant to which the provider of the energy or water conservation
11-24 measures guarantees the amount of the savings to be realized by the
11-25 state agency under the contract. If the term of a contract for
11-26 energy or water conservation measures exceeds one year, the
12-1 agency's contractual obligation in any year during the term of the
12-2 contract may not exceed the total energy or water and operating
12-3 cost savings, including but not limited to electrical, gas, water,
12-4 or other utility cost savings and operating cost savings resulting
12-5 from automatic monitoring and control, as determined by the state
12-6 agency in this subsection, divided by the number of years in the
12-7 contract term.
12-8 (h) A contract under this chapter may be let under
12-9 competitive sealed proposal procedures. Notice of the request for
12-10 proposals shall be given in the manner provided for in Chapter
12-11 2156, Government Code. Before awarding a [the] contract for energy
12-12 conservation measures, the state agency shall submit the selected
12-13 proposal to the State Energy Conservation Office and the Texas
12-14 Energy Coordination Council for review and comment before awarding
12-15 the contract. The State Energy Conservation Office and the Texas
12-16 Energy Coordination Council will provide a cost-benefit analysis of
12-17 the proposals for energy conservation measures and an analysis of
12-18 the guaranteed savings projected by offerors and may charge a fee
12-19 for this service. The contract shall be awarded to the responsible
12-20 offeror whose proposal, following negotiations, is determined to be
12-21 the most advantageous to the state agency considering the savings
12-22 and other evaluation factors set forth in the request for proposals
12-23 except that if the state agency finds that no offer is acceptable,
12-24 it shall refuse all offers.
12-25 (k) To obtain the best final offers, the state agency may
12-26 allow proposal revisions after submissions and before the award of
13-1 the contract. Final review and approval of a [the] contract for
13-2 energy conservation measures will be provided by the State Energy
13-3 Conservation Office.
13-4 (l) The legislature shall base an agency's appropriation for
13-5 energy or water costs during a fiscal year on the sum of:
13-6 (1) the agency's estimated energy or water costs for
13-7 that fiscal year; and
13-8 (2) if a contract under this section is in effect, the
13-9 agency's estimated net savings resulting from the contract during
13-10 the contract term, divided by the number of years in the contract
13-11 term.
13-12 SECTION 6. This Act takes effect September 1, 1999.
13-13 SECTION 7. The importance of this legislation and the
13-14 crowded condition of the calendars in both houses create an
13-15 emergency and an imperative public necessity that the
13-16 constitutional rule requiring bills to be read on three several
13-17 days in each house be suspended, and this rule is hereby suspended.