By Brown S.B. No. 305
76R3932 SMH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to contracts by school districts, institutions of higher
1-3 education, and state agencies for water conservation measures.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The heading to Section 44.901, Education Code, is
1-6 amended to read as follows:
1-7 Sec. 44.901. ENERGY OR WATER CONSERVATION MEASURES
1-8 SECTION 2. Sections 44.901(a)-(f), Education Code, are
1-9 amended to read as follows:
1-10 (a) The board of trustees of a school district may enter
1-11 into a contract for energy or water conservation measures to reduce
1-12 energy or water consumption or operating costs of school facilities
1-13 in accordance with this section.
1-14 (b) A contract to which this section applies includes a
1-15 contract for the installation of:
1-16 (1) insulation of the building structures and systems
1-17 within the building;
1-18 (2) storm windows or doors, caulking or
1-19 weatherstripping, multiglazed windows or doors, heat absorbing or
1-20 heat reflective glazed and coated window or door systems, or other
1-21 window or door system modifications that reduce energy consumption;
1-22 (3) automatic energy control systems, including
1-23 computer software and technical data licenses;
1-24 (4) heating, ventilating, or air-conditioning system
2-1 modifications or replacements that reduce energy or water
2-2 consumption;
2-3 (5) lighting fixtures that increase energy efficiency;
2-4 (6) energy recovery systems;
2-5 (7) electric systems improvements; [or]
2-6 (8) water-conserving landscape irrigation equipment;
2-7 (9) water-saving plumbing fixtures, appliances, or
2-8 equipment;
2-9 (10) water reuse, rainwater harvesting, or other
2-10 alternative water source technologies for landscape irrigation,
2-11 toilet and urinal flushing, or other purposes;
2-12 (11) substitution of non-water-using fixtures,
2-13 appliances, equipment, or practices for water-using fixtures,
2-14 appliances, equipment, or practices, if feasible; or
2-15 (12) other energy or water conservation-related
2-16 improvements or equipment (including improvements or equipment
2-17 relating to renewable energy).
2-18 (c) All energy or water conservation measures must comply
2-19 with current local, state, and federal construction and
2-20 environmental codes and regulations. Notwithstanding anything to
2-21 the contrary in Subsection (b), a contract for energy or water
2-22 conservation measures shall not include improvements or equipment
2-23 that allow or cause water from any condensing, cooling, or
2-24 industrial process or any system of nonpotable usage over which the
2-25 public water supply system officials do not have sanitary
2-26 control[,] to be returned to the potable water supply.
2-27 (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
3-27 the number of years in the contract term.
4-1 SECTION 3. Section 51.927, Education Code, as amended by
4-2 Chapters 627 and 1142, Acts of the 75th Legislature, Regular
4-3 Session, 1997, is reenacted and amended to read as follows:
4-4 Sec. 51.927. ENERGY OR WATER CONSERVATION MEASURES. (a)
4-5 The governing board of an institution of higher education may enter
4-6 into a contract for energy or water conservation measures to reduce
4-7 energy or water consumption or operating costs of institutional
4-8 facilities in accordance with this section.
4-9 (b) A contract to which this section applies includes a
4-10 contract for the installation of:
4-11 (1) insulation of a building structure and systems
4-12 within a building;
4-13 (2) storm windows of doors, caulking or weather
4-14 stripping, multiglazed windows or doors, heat-absorbing or
4-15 heat-reflective glazed and coated window or door systems, or other
4-16 window or door system modifications that reduce energy consumption;
4-17 (3) automatic energy control systems, including
4-18 computer software and technical data licenses;
4-19 (4) heating, ventilating, or air conditioning system
4-20 modifications or replacements that reduce energy or water
4-21 consumption;
4-22 (5) lighting fixtures that increase energy efficiency;
4-23 (6) energy recovery systems;
4-24 (7) electric systems improvements; [or]
4-25 (8) water-conserving landscape irrigation equipment;
4-26 (9) water-saving plumbing fixtures, appliances, or
4-27 equipment;
5-1 (10) water reuse, rainwater harvesting, or other
5-2 alternative water source technologies for landscape irrigation,
5-3 toilet and urinal flushing, or other purposes;
5-4 (11) substitution of non-water-using fixtures,
5-5 appliances, equipment, or practices for water-using fixtures,
5-6 appliances, equipment, or practices, if feasible; or
5-7 (12) other energy or water conservation-related
5-8 improvements or equipment (including improvements or equipment
5-9 related to renewable energy).
5-10 (c) All energy or water conservation measures must comply
5-11 with current local, state, and federal construction and
5-12 environmental codes and regulations. Notwithstanding anything to
5-13 the contrary in Subsection (b), a contract for energy or water
5-14 conservation measures shall not include improvements or equipment
5-15 that allow or cause water from any condensing, cooling, or
5-16 industrial process or any system of nonpotable usage over which the
5-17 public water supply system officials do not have sanitary
5-18 control[,] to be returned to the potable water supply.
5-19 (d) The entity with whom the board contracts must be
5-20 experienced in the design, implementation, and installation of the
5-21 energy or water conservation measures addressed by the contract.
5-22 (e) Before entering into a contract for energy or water
5-23 conservation measures, the board shall require the provider of the
5-24 energy or water conservation measures to file with the board a
5-25 payment and performance bond that is in an amount the board finds
5-26 reasonable and necessary to protect the interests of the
5-27 institution and is conditioned on the faithful execution of the
6-1 terms of the contract.
6-2 (f) The board may enter into a contract for a period of more
6-3 than one year for energy or water conservation measures with an
6-4 entity if the board finds that the amount the institution would
6-5 spend on the energy or water conservation measures will not exceed
6-6 the amount to be saved in energy or water and operating costs over
6-7 10 years from the date of installation. If the term of a contract
6-8 for energy or water conservation measures exceeds one year, the
6-9 board's contractual obligation in any year during the term of the
6-10 contract beginning after the final date of installation may not
6-11 exceed the total energy or water and operating cost savings,
6-12 including but not limited to electrical, gas, water, or other
6-13 utility cost savings and operating cost savings resulting from
6-14 automatic monitoring and control, as determined by the board in
6-15 this subsection, divided by the number of years in the contract
6-16 term beginning after the final date of installation. The board
6-17 shall consider all costs of the energy or water conservation
6-18 measures, including costs of design, engineering, installation,
6-19 maintenance, repairs, and debt service.
6-20 (g) A contract for energy or water conservation measures may
6-21 be a lease/purchase contract, with a term not to exceed 10 years
6-22 after the final date of installation, that meets federal tax
6-23 requirements for tax-free municipal leasing or long-term financing.
6-24 The contract shall contain provisions pursuant to which the
6-25 provider of the energy or water conservation measures guarantees
6-26 the amount of the savings to be realized by the institution of
6-27 higher education under the contract. The Master Equipment Lease
7-1 Purchase Program operated by the Texas Public Finance Authority may
7-2 be utilized by an institution to fund a contract for energy or
7-3 water conservation measures so long as the costs of the energy or
7-4 water conservation measures, including costs of design,
7-5 engineering, installation, maintenance, repairs, and anticipated
7-6 debt service requirements of the Master Equipment Lease Purchase
7-7 Program, do not exceed the total energy or water and operating cost
7-8 savings, as described in Subsection (f) [(e)], beginning after the
7-9 final date of installation.
7-10 (h) A contract under this section may be let under
7-11 competitive sealed proposal procedures. Notice of the request for
7-12 proposals shall be given in the manner provided for in Chapter
7-13 2156, Government Code. The Texas Higher Education Coordinating
7-14 Board, in consultation with the State Energy Conservation Office
7-15 and the Texas Energy Coordination Council with regard to energy
7-16 conservation measures, shall establish guidelines and an approval
7-17 process for contracts awarded under this section. The State Energy
7-18 Conservation Office and the Texas Energy Coordination Council shall
7-19 review the selected proposal before a contract for energy
7-20 conservation measures is awarded. The State Energy Conservation
7-21 Office may provide a cost-benefit analysis of the proposals for
7-22 energy conservation measures and analysis of the guaranteed savings
7-23 projected by offerors and may charge a fee for this service. The
7-24 contract shall be awarded to the responsible offeror whose
7-25 proposal, following negotiations, is determined by the institution
7-26 to be the most advantageous to the institution considering the
7-27 guaranteed savings and other evaluation factors set forth in the
8-1 request for proposals, except that if the institution finds that no
8-2 offer is acceptable, it shall refuse all offers.
8-3 (i) In accordance with regulations adopted by the
8-4 institution, the institution may conduct discussions with offerors
8-5 who submit proposals and who are determined to be reasonably
8-6 qualified for the award of the contract. Offerors shall be treated
8-7 fairly and equally with respect to any opportunity for discussion
8-8 and revision of proposals. To obtain the best final offers, the
8-9 institution may allow proposal revisions after submissions and
8-10 before the award of the contract.
8-11 (j) If provided in a request for proposals under Subsection
8-12 (h) [(g) of this section], proposals shall be opened in a manner
8-13 that avoids disclosure of the contents to competing offerors and
8-14 keeps the proposals secret during negotiations. All proposals are
8-15 open for public inspection after a contract is awarded unless the
8-16 information is excepted from disclosure under Chapter 552,
8-17 Government Code.
8-18 (k) The legislature shall base an institution's
8-19 appropriation for energy or water costs during a fiscal year on the
8-20 sum of:
8-21 (1) the institution's estimated energy or water costs
8-22 for that fiscal year; and
8-23 (2) if a contract under this section is in effect, the
8-24 institution's estimated net savings resulting from the contract
8-25 during the contract term, divided by the number of years in the
8-26 contract term.
8-27 SECTION 4. The heading to Section 2166.406, Government Code,
9-1 is amended to read as follows:
9-2 Sec. 2166.406. ENERGY OR WATER CONSERVATION MEASURES
9-3 SECTION 5. Sections 2166.406(a)-(h), (k), and (l),
9-4 Government Code, are amended to read as follows:
9-5 (a) Notwithstanding any other provisions of this chapter,
9-6 the governing body of a state agency, without the consent of the
9-7 commission, may enter into a contract for energy or water
9-8 conservation measures to reduce energy or water consumption or
9-9 operating costs of governmental facilities in accordance with this
9-10 section.
9-11 (b) A contract authorized under this chapter includes a
9-12 contract for the installation of:
9-13 (1) insulation of the building structure and systems
9-14 within the building;
9-15 (2) storm windows or doors, caulking or weather
9-16 stripping, multiglazed windows or doors, heat absorbing or heat
9-17 reflective glazed and coated window or door systems, or other
9-18 window or door system modifications that reduce energy consumption;
9-19 (3) automatic energy control systems, including
9-20 computer software and technical data licenses;
9-21 (4) heating, ventilating, or air-conditioning system
9-22 modifications or replacements that reduce energy or water
9-23 consumption;
9-24 (5) lighting fixtures that increase energy efficiency;
9-25 (6) energy recovery systems;
9-26 (7) electric systems improvements; [or]
9-27 (8) water-conserving landscape irrigation equipment;
10-1 (9) water-saving plumbing fixtures, appliances, or
10-2 equipment;
10-3 (10) water reuse, rainwater harvesting, or other
10-4 alternative water source technologies for landscape irrigation,
10-5 toilet and urinal flushing, or other purposes;
10-6 (11) substitution of non-water-using fixtures,
10-7 appliances, equipment, or practices for water-using fixtures,
10-8 appliances, equipment, or practices, if feasible; or
10-9 (12) other energy or water conservation-related
10-10 improvements or equipment (including improvements or equipment
10-11 related to renewable energy).
10-12 (c) All energy or water conservation measures must comply
10-13 with current local, state, and federal construction and
10-14 environmental codes and regulations. Notwithstanding anything to
10-15 the contrary in Subsection (b), a contract for energy or water
10-16 conservation measures shall not include improvements or equipment
10-17 that allow or cause water from any condensing, cooling, or
10-18 industrial process or any system of nonpotable usage over which the
10-19 public water supply system officials do not have sanitary control
10-20 to be returned to the potable water supply.
10-21 (d) The entity with whom the board contracts must be
10-22 experienced in the design, implementation, and installation of the
10-23 energy or water conservation measures addressed by the contract.
10-24 (e) Before entering into a contract for energy or water
10-25 conservation measures, the governing body of the state agency shall
10-26 require the provider of the energy or water conservation measures
10-27 to file with the governing body a payment and performance bond that
11-1 is in an amount the governing body finds reasonable and necessary
11-2 to protect the interests of the state agency and that is
11-3 conditioned on the faithful execution of the terms of the contract.
11-4 (f) The state agency may enter into a contract for a period
11-5 of more than one year for energy or water conservation measures
11-6 with an entity if the state agency finds that the amount the state
11-7 agency would spend on the energy or water conservation measures
11-8 will not exceed the amount to be saved in energy or water and
11-9 operating costs over 10 years from the date of installation.
11-10 (g) A contract for energy or water conservation measures,
11-11 with respect to existing buildings or facilities, may be a
11-12 lease/purchase contract with a term not to exceed 10 years, that
11-13 meets federal tax requirements for tax-free municipal leasing or
11-14 long-term financing. The contract shall contain provisions
11-15 pursuant to which the provider of the energy or water conservation
11-16 measures guarantees the amount of the savings to be realized by the
11-17 state agency under the contract. If the term of a contract for
11-18 energy or water conservation measures exceeds one year, the
11-19 agency's contractual obligation in any year during the term of the
11-20 contract may not exceed the total energy or water and operating
11-21 cost savings, including but not limited to electrical, gas, water,
11-22 or other utility cost savings and operating cost savings resulting
11-23 from automatic monitoring and control, as determined by the state
11-24 agency in this subsection, divided by the number of years in the
11-25 contract term.
11-26 (h) A contract under this chapter may be let under
11-27 competitive sealed proposal procedures. Notice of the request for
12-1 proposals shall be given in the manner provided for in Chapter
12-2 2156, Government Code. Before awarding a [the] contract for energy
12-3 conservation measures, the state agency shall submit the selected
12-4 proposal to the State Energy Conservation Office and the Texas
12-5 Energy Coordination Council for review and comment before awarding
12-6 the contract. The State Energy Conservation Office and the Texas
12-7 Energy Coordination Council will provide a cost-benefit analysis of
12-8 the proposals for energy conservation measures and an analysis of
12-9 the guaranteed savings projected by offerors and may charge a fee
12-10 for this service. The contract shall be awarded to the responsible
12-11 offeror whose proposal, following negotiations, is determined to be
12-12 the most advantageous to the state agency considering the savings
12-13 and other evaluation factors set forth in the request for proposals
12-14 except that if the state agency finds that no offer is acceptable,
12-15 it shall refuse all offers.
12-16 (k) To obtain the best final offers, the state agency may
12-17 allow proposal revisions after submissions and before the award of
12-18 the contract. Final review and approval of a [the] contract for
12-19 energy conservation measures will be provided by the State Energy
12-20 Conservation Office.
12-21 (l) The legislature shall base an agency's appropriation for
12-22 energy or water costs during a fiscal year on the sum of:
12-23 (1) the agency's estimated energy or water costs for
12-24 that fiscal year; and
12-25 (2) if a contract under this section is in effect, the
12-26 agency's estimated net savings resulting from the contract during
12-27 the contract term, divided by the number of years in the contract
13-1 term.
13-2 SECTION 6. This Act takes effect September 1, 1999.
13-3 SECTION 7. The importance of this legislation and the
13-4 crowded condition of the calendars in both houses create an
13-5 emergency and an imperative public necessity that the
13-6 constitutional rule requiring bills to be read on three several
13-7 days in each house be suspended, and this rule is hereby suspended.