SRC-MWN S.B. 1494 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1494
77R5926 DAK-DBy: Brown, J. E. "Buster"
Natural Resources
4/16/2001
As Filed


DIGEST AND PURPOSE 

Currently, state and local governments can enter into performance contracts
for energy conservation. As proposed, S.B. 1494 allows water conservation
projects to be eligible for performance contracting as a separate item.
S.B. 1494 also provides for state agencies to participate in water and
energy conservation programs. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends the heading to Section 44.901, Education Code, as follows:

 Sec. 44.901. New heading: ENERGY OR WATER CONSERVATION MEASURES.

SECTION 2. Amends Sections 44.901(a)-(g), Education Code, to authorize the
board of trustees of a school district to enter into a contract for energy
or water conservation measures to reduce energy or water consumption or
operating costs of school facilities in accordance with this section. 

(b) Provides that a contract to which this section applies includes a
contract for the installation of certain equipment. 

(c) Requires all energy or water conservation measures to comply with
plumbing and certain other regulations and codes. Makes a conforming
change. 
 
(d) Requires the person with whom the board contracts to be experienced in
certain energy or water conservation measures addressed by the contract. 

 (e) Makes conforming changes.

 (f) Makes conforming changes.

(g) Provides that if the term of a contract for energy or water
conservation measures exceeds one year, the school district's contractual
obligations is prohibited, during a certain period, from exceeding the
total energy, water, wastewater, and operating cost savings, including but
not limited to certain cost savings. Makes conforming changes. 

SECTION 3. Amends the heading to Section 51.927, Education Code, as follows:

 Sec. 51.927. New heading: ENERGY OR WATER CONSERVATION MEASURES.

SECTION 4. Amends Sections 51.927(a)-(h) and (l), Education Code, as follow:
 
(b) Provides that a contract to which this section applies includes a
contract for the installation of certain equipment. 

 (c) Makes conforming changes.

 (d) Makes conforming changes.

 (e) Makes conforming changes.

 (f) Makes conforming changes.

 (g) Makes conforming changes.

 (h) Makes conforming changes.

 (l) Makes conforming changes.

SECTION 5. Amends the heading to Chapter 302, Local Government Code, as
follows: 

CHAPTER 302. ENERGY OR WATER CONSERVATION MEASURES

FOR LOCAL GOVERNMENTS

SECTION 6. Amends Sections 302.001-302.004, Local Government Code, as
follows: 

 Sec. 302.001. DEFINITION. Defines "local government."  Makes conforming
changes.  

Sec. 302.002. New heading: ENERGY OR WATER CONSERVATION MEASURES.
 
 (a) Makes conforming changes.

(b) Provides that a contract authorized under this chapter includes a
contract for the installation of certain equipment. 
 
 (c) Makes conforming changes.

 Sec. 320.003. PAYMENT AND PERFORMANCE BOND. Makes conforming changes.

Sec. 320.004. METHOD OF FINANCING; TERMS OF CONTRACT. Makes conforming
changes. 

SECTION 7. Amends Section 2166.402, Government Code, as follows:

Sec. 2166.402. New heading: ENERGY OR WATER CONSERVATION STANDARDS FOR
ENTITIES OTHERWISE EXCLUDED FROM CHAPTER. (a) Requires the standards to be
consistent with certain criteria. 

(b) Requires the sate energy conservation office, rather than the
management center of the governor's office, to assist a governing body of
certain agencies in preparing energy conservation standards. 

(c) Requires the Texas Water Development Board (TWDB) to assist the
governing body of certain agencies in preparing water conservation
standards by providing technical assistance and advice. 

 SECTION 8. Amends the heading to Section 2166.406, Government Code, as
follows: 

 Sec. 2166.406. ENERGY OR WATER CONSERVATION MEASURES. 

SECTION 9. Amends Sections 2166.406(a)-(h), (l), and (m), Government Code,
to make conforming changes. 

SECTION 10. Amends Chapter 447, Government Code, as follows:

 CHAPTER 447: New heading: STATE ENERGY CONSERVATION OFFICE

Sec. 447.001. New heading: ESTABLISHMENT OF OFFICE. Provides that the state
energy conservation office, rather than management center, is established
in the General Services Commission to promote those policies of the state
enumerated in this chapter. 
 
Sec. 447.002. INFORMATION; RULES; PROGRAMS. Requires the state energy
conservation office(office) to develop and provide energy and water
conservation information for the state.  Authorizes the office to make
rules relating to the adoption and implementation of energy and water
conservation programs to state buildings and facilities.  Requires the
state energy conservation office to coordinate all water
conservation-related activities with the TWDB. Requires the TWDB to perform
certain procedures regarding water conservation issues. Makes conforming
changes. 

Sec. 447.003. LIAISON TO FEDERAL GOVERNMENT. Makes conforming changes.
Deletes text regarding the National Energy Extension Service Act. 

Sec. 448.004. DESIGN STANDARDS. Makes conforming changes.

Sec. 447.005. New heading: ENERGY AND WATER EFFICIENCY PROJECTS. Makes
conforming changes. 

 Sec. 447.006. OBTAINING DATA. Makes conforming changes.

 Sec. 447.007.  MODEL CODES.  Makes conforming changes. 

Sec. 447.008.  ADDITIONAL ENERGY AND WATER SERVICES. Authorizes the state
energy conservation office to provide additional energy and water services,
including certain other criteria. Makes conforming changes. 

Sec. 447.009. New heading:  ENERGY AND WATER AUDITS.  Provides that
contracts with private sector firms must comply with all applicable
provisions of Chapter 2254 rather than Chapter 654 regarding professional
services contracts and are prohibited from being awarded on a contingent
fee basis unless a finding that the contract is necessary, reasonable, and
prudent is obtained from the office of the governor.  Makes conforming
changes.  

Sec. 447.010. New heading: ENERGY-SAVING AND WATER-SAVING DEVICES OR
MEASURES. Makes conforming changes. 

Sec. 447.011. New heading: ENERGY AND WATER MANAGEMENT PLANNING. Provides
that after other energy-saving and water-saving alternatives are
considered, district heating and cooling and on-site generation of
electricity is authorized to be considered in planning for certain utility
services. Makes conforming changes. 

SECTION 11. Effective date: September 1, 2001.