By: Carona S.B. No. 1534
99S0686/1
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the financing of certain energy-saving capital
1-2 improvements.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 2305, Government Code, is amended by
1-5 adding Subchapter F to read as follows:
1-6 SUBCHAPTER F. ENERGY-SAVING CAPITAL IMPROVEMENT
1-7 ALTERNATIVE FINANCING PROGRAM
1-8 Sec. 2305.081. ENERGY-SAVING CAPITAL IMPROVEMENT ALTERNATIVE
1-9 FINANCING PROGRAM. (a) The energy office may compile, maintain,
1-10 and provide information on alternative financing sources available
1-11 to finance energy-saving capital improvements if other statutorily
1-12 authorized financing is not available or feasible. Alternative
1-13 financing information compiled and maintained by the energy office
1-14 will be for the benefit of the following:
1-15 (1) a state agency or institution of higher education;
1-16 (2) a public school;
1-17 (3) a political subdivision of the state;
1-18 (4) a small to medium-sized business; and
1-19 (5) a public or nonprofit hospital or health care
1-20 facility.
1-21 (b) The energy office shall establish rules, guidelines, and
1-22 procedures for proposals, audits, assessments, analyses, and
1-23 reports prepared under this subchapter.
1-24 (c) The energy office may solicit proposals from qualified
2-1 institutions interested in providing financing for energy-saving
2-2 capital improvements that will be repaid from an agency's or
2-3 institution's energy budget or the value of energy savings that
2-4 accrues to the agency or institution. The energy office may assist
2-5 agencies and institutions in aggregating loans if beneficial to the
2-6 agencies and institutions.
2-7 (d) The energy office may solicit proposals from qualified
2-8 individuals or firms interested in performing energy audit reports
2-9 for proposed energy-saving capital improvements being considered
2-10 for alternative financing. Energy audits shall be prepared in the
2-11 form and format prescribed by the energy office.
2-12 (e) The energy office shall review all energy audit reports
2-13 and alternative financing rates and terms and provide agencies and
2-14 institutions a cost-benefit analysis of the projected savings prior
2-15 to the execution of any alternative financing loan documents by an
2-16 agency or institution.
2-17 (f) The energy office may charge an agency or institution
2-18 the actual costs incurred by the energy office to perform the
2-19 energy audit review, cost-benefit analysis, and savings assessment.
2-20 Any funds collected by the energy office under this section shall
2-21 be appropriated to the energy office.
2-22 (g) The energy office may conduct a pilot program during
2-23 fiscal years 2000 and 2001.
2-24 SECTION 2. Subchapter Z, Chapter 44, Education Code, is
2-25 amended by adding Section 44.902 to read as follows:
2-26 Sec. 44.902. ENERGY-SAVING CAPITAL IMPROVEMENT ALTERNATIVE
3-1 FINANCING. (a) The board of trustees of a school district may
3-2 enter into an agreement for alternative financing of any of the
3-3 authorized energy conservation measures under Sections 44.901(b)
3-4 and (c) in order to reduce energy consumption or operating costs of
3-5 school facilities.
3-6 (b) The school district's contractual obligations are
3-7 subject to Chapter 45.
3-8 (c) The board of trustees shall consider any energy audit
3-9 reviews, cost-benefit analyses, or other information provided by
3-10 the state energy conservation office of the General Services
3-11 Commission prior to approving any alternative financing agreements.
3-12 The board of trustees is authorized to pay the actual costs
3-13 incurred by the energy office to perform reviews, analyses, and
3-14 assessments and to prepare reports.
3-15 SECTION 3. Subchapter Z, Chapter 51, Education Code, is
3-16 amended by adding Section 51.9271 to read as follows:
3-17 Sec. 51.9271. ENERGY-SAVING CAPITAL IMPROVEMENT ALTERNATIVE
3-18 FINANCING. (a) The governing board of an institution of higher
3-19 education may enter into an agreement for alternative financing of
3-20 any of the authorized energy conservation measures under Sections
3-21 51.927(b) and (c) in order to reduce energy consumption or
3-22 operating costs of institutional facilities.
3-23 (b) The governing board's contractual obligations are
3-24 subject to this chapter and procedures established by the Texas
3-25 Higher Education Coordinating Board.
3-26 (c) The governing board of an institution of higher
4-1 education and the Texas Higher Education Coordinating Board shall
4-2 consider any energy audit reviews, cost-benefit analyses, or other
4-3 information provided by the state energy conservation office of the
4-4 General Services Commission prior to approving any alternative
4-5 financing agreements. The governing board of an institution of
4-6 higher education is authorized to pay the actual costs incurred by
4-7 the energy office to perform reviews, analyses, and assessments and
4-8 to prepare reports.
4-9 SECTION 4. Subchapter I, Chapter 2166, Government Code, is
4-10 amended by adding Section 2166.407 to read as follows:
4-11 Sec. 2166.407. ENERGY-SAVING CAPITAL IMPROVEMENT ALTERNATIVE
4-12 FINANCING. (a) The governing body of a state agency may enter
4-13 into an agreement for alternative financing of any of the
4-14 authorized energy conservation measures under Sections 2166.406(b)
4-15 and (c) in order to reduce energy consumption or operating costs of
4-16 governmental facilities.
4-17 (b) The governing body's contractual obligations are subject
4-18 to this subchapter, Chapter 2156, and the Texas Public Finance
4-19 Authority Act (Article 601d, Vernon's Texas Civil Statutes).
4-20 (c) The governing body shall consider any energy audit
4-21 reviews, cost-benefit analyses, or other information provided by
4-22 the state energy conservation office of the General Services
4-23 Commission prior to approving any alternative financing agreements.
4-24 The governing body of an agency is authorized to pay the actual
4-25 costs incurred by the energy office to perform reviews, analyses,
4-26 and assessments and to prepare reports.
5-1 (d) The legislature shall base an agency's appropriations
5-2 for energy costs during a fiscal year on:
5-3 (1) the agency's estimated energy costs for that
5-4 fiscal year; or
5-5 (2) if a contract under this section is in effect, the
5-6 sum of the amount under Subdivision (1) and the agency's estimated
5-7 net savings resulting from the contract during the contract term,
5-8 divided by the number of years in the contract.
5-9 SECTION 5. Chapter 302, Local Government Code, is amended by
5-10 adding Section 302.006 to read as follows:
5-11 Sec. 302.006. ENERGY-SAVING CAPITAL IMPROVEMENT ALTERNATIVE
5-12 FINANCING. (a) The governing body of a local government as
5-13 defined in Section 302.001 may enter into an agreement for
5-14 alternative financing of any of the authorized energy conservation
5-15 measures under Sections 302.002(b) and (c) in order to reduce
5-16 energy consumption or operating costs of governmental facilities.
5-17 (b) The governing body's contractual obligations are subject
5-18 to Chapter 271 and the enabling legislation of the local
5-19 government.
5-20 (c) The governing body shall consider any energy audit
5-21 reviews, cost-benefit analyses, or other information provided by
5-22 the state energy conservation office of the General Services
5-23 Commission prior to approving any alternative financing agreements.
5-24 The governing body is authorized to pay the actual costs incurred
5-25 by the energy office to perform reviews, analyses, and assessments
5-26 and to prepare reports.
6-1 SECTION 6. This Act takes effect September 1, 1999.
6-2 SECTION 7. The importance of this legislation and the
6-3 crowded condition of the calendars in both houses create an
6-4 emergency and an imperative public necessity that the
6-5 constitutional rule requiring bills to be read on three several
6-6 days in each house be suspended, and this rule is hereby suspended.