By Carter H.B. No. 2277
77R8288 JAT-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to contracts by certain educational institutions, state
1-3 agencies, and local governments for energy conservation measures.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 44.901(b), Education Code, is amended to
1-6 read as follows:
1-7 (b) A contract to which this section applies includes a
1-8 contract for the installation of:
1-9 (1) insulation of the building structures and systems
1-10 within the building;
1-11 (2) storm windows or doors, caulking or
1-12 weatherstripping, multiglazed windows or doors, heat absorbing or
1-13 heat reflective glazed and coated window or door systems, or other
1-14 window or door system modifications that reduce energy consumption;
1-15 (3) automatic energy control systems, including
1-16 computer software and technical data licenses;
1-17 (4) heating, ventilating, or air-conditioning system
1-18 modifications or replacements;
1-19 (5) lighting fixtures that increase energy efficiency;
1-20 (6) energy recovery systems;
1-21 (7) electric systems improvements; or
1-22 (8) other energy conservation-related improvements or
1-23 equipment, [(]including:
1-24 (A) improvements or equipment relating to
2-1 renewable energy; and
2-2 (B) facility repairs or modifications necessary
2-3 for the installation of energy conservation measures under this
2-4 section[)].
2-5 SECTION 2. Sections 51.927(b) and (i), Education Code, are
2-6 amended to read as follows:
2-7 (b) A contract to which this section applies includes a
2-8 contract for the installation of:
2-9 (1) insulation of a building structure and systems
2-10 within a building;
2-11 (2) storm windows of doors, caulking or weather
2-12 stripping, multiglazed windows or doors, heat-absorbing or
2-13 heat-reflective glazed and coated window or door systems, or other
2-14 window or door system modifications that reduce energy consumption;
2-15 (3) automatic energy control systems, including
2-16 computer software and technical data licenses;
2-17 (4) heating, ventilating, or air conditioning system
2-18 modifications or replacements;
2-19 (5) lighting fixtures that increase energy efficiency;
2-20 (6) energy recovery systems;
2-21 (7) electric systems improvements; or
2-22 (8) other energy conservation-related improvements or
2-23 equipment, [(]including:
2-24 (A) improvements or equipment relating to
2-25 renewable energy; and
2-26 (B) facility repairs or modifications necessary
2-27 for the installation of energy conservation measures under this
3-1 section[)].
3-2 (i) A contract under this section may be let under
3-3 competitive sealed proposal procedures. Notice of the request for
3-4 proposals shall be given in the manner provided for in Chapter
3-5 2156, Government Code. The Texas Higher Education Coordinating
3-6 Board, in consultation with the State Energy Conservation Office
3-7 [and the Texas Energy Coordination Council] with regard to energy
3-8 conservation measures, shall establish guidelines and an approval
3-9 process for contracts awarded under this section. The guidelines
3-10 must require that the cost savings projected by an offeror be
3-11 reviewed by a licensed professional engineer who is not an officer
3-12 or employee of an offeror for the contract under review or
3-13 otherwise associated with the contract. An engineer who reviews a
3-14 contract shall maintain the confidentiality of any proprietary
3-15 information the engineer acquires while reviewing the contract. A
3-16 contract is not required to be reviewed or approved by the State
3-17 Energy Conservation Office [or Texas Energy Coordination Council].
3-18 Section 19, The Texas Engineering Practice Act (Article 3271a,
3-19 Vernon's Texas Civil Statutes), applies to work performed under the
3-20 contract. The contract shall be awarded to the responsible offeror
3-21 whose proposal, following negotiations, is determined by the
3-22 institution to be the most advantageous to the institution
3-23 considering the guaranteed savings and other evaluation factors set
3-24 forth in the request for proposals, except that if the institution
3-25 finds that no offer is acceptable, it shall refuse all offers.
3-26 SECTION 3. Sections 2166.406(b), (g), (h), (i), and (l),
3-27 Government Code, are amended to read as follows:
4-1 (b) A contract authorized under this section includes a
4-2 contract for the installation of:
4-3 (1) insulation of the building structure and systems
4-4 within the building;
4-5 (2) storm windows or doors, caulking or weather
4-6 stripping, multiglazed windows or doors, heat absorbing or heat
4-7 reflective glazed and coated window or door systems, or other
4-8 window or door system modifications that reduce energy consumption;
4-9 (3) automatic energy control systems, including
4-10 computer software and technical data licenses;
4-11 (4) heating, ventilating, or air-conditioning system
4-12 modifications or replacements;
4-13 (5) lighting fixtures that increase energy efficiency;
4-14 (6) energy recovery systems;
4-15 (7) electric systems improvements; or
4-16 (8) other energy conservation-related improvements or
4-17 equipment, [(]including:
4-18 (A) improvements or equipment relating to
4-19 renewable energy; and
4-20 (B) facility repairs or modifications necessary
4-21 for the installation of energy conservation measures under this
4-22 section[)].
4-23 (g) Energy conservation measures with respect to existing
4-24 buildings or facilities may be financed:
4-25 (1) under a lease/purchase contract that has a term
4-26 not to exceed 15 years from the final date of installation and that
4-27 meets federal tax requirements for tax-free municipal leasing or
5-1 long-term financing, including a lease/purchase contract under the
5-2 Master Equipment Lease Purchase Program administered by the Texas
5-3 Public Finance Authority;
5-4 (2) with the proceeds of bonds; or
5-5 (3) under a contract with the provider of the energy
5-6 conservation measures that has a term not to exceed 15 years from
5-7 the final date of installation.
5-8 (h) A contract for energy conservation measures shall
5-9 contain provisions pursuant to which the provider of the energy
5-10 conservation measures guarantees the amount of the savings to be
5-11 realized by the state agency under the contract. If the term of a
5-12 contract for energy conservation measures exceeds one year, the
5-13 agency's contractual obligation, including costs of design,
5-14 engineering, installation, maintenance, repairs, and anticipated
5-15 debt service, in any year during the term of the contract beginning
5-16 after the final date of installation may not exceed the total
5-17 energy and operating cost savings, including but not limited to
5-18 electrical, gas, or other utility cost savings and operating cost
5-19 savings resulting from automatic monitoring and control, as
5-20 determined by the state agency in this subsection, divided by the
5-21 number of years in the contract term.
5-22 (i) A contract under this section may be let under
5-23 competitive sealed proposal procedures. Notice of the request for
5-24 proposals shall be given in the manner provided for in Chapter
5-25 2156. The State Energy Conservation Office shall establish
5-26 guidelines and an approval process for contracts awarded under this
5-27 section. The guidelines adopted under this subsection must require
6-1 that the cost savings projected by an offeror be reviewed by a
6-2 licensed professional engineer who is not an officer or employee of
6-3 an offeror for the contract under review or otherwise associated
6-4 with the contract. An engineer who reviews a contract shall
6-5 maintain the confidentiality of any proprietary information the
6-6 engineer acquires while reviewing the contract. A contract is not
6-7 required to be reviewed or approved by the State Energy
6-8 Conservation Office. Section 19, The Texas Engineering Practice Act
6-9 (Article 3271a, Vernon's Texas Civil Statutes), applies to work
6-10 performed under the contract. [Before awarding the contract, the
6-11 state agency shall submit the selected proposal to the State Energy
6-12 Conservation Office and the Texas Energy Coordination Council for
6-13 review and comment before awarding the contract. The State Energy
6-14 Conservation Office and the Texas Energy Coordination Council will
6-15 provide a cost-benefit analysis of the proposals and an analysis of
6-16 the guaranteed savings projected by offerors and may charge a fee
6-17 for this service.] The contract shall be awarded to the responsible
6-18 offeror whose proposal, following negotiations, is determined to be
6-19 the most advantageous to the state agency considering the savings
6-20 and other evaluation factors set forth in the request for proposals
6-21 except that if the state agency finds that no offer is acceptable,
6-22 it shall refuse all offers.
6-23 (l) To obtain the best final offers, the state agency may
6-24 allow proposal revisions after submissions and before the award of
6-25 the contract. [Final review and approval of the contract will be
6-26 provided by the State Energy Conservation Office.]
6-27 SECTION 4. Section 302.002(b), Local Government Code, is
7-1 amended to read as follows:
7-2 (b) A contract authorized under this chapter includes a
7-3 contract for the installation of:
7-4 (1) insulation of the building structure and systems
7-5 within the building;
7-6 (2) storm windows or doors, caulking or weather
7-7 stripping, multiglazed windows or doors, heat-absorbing or
7-8 heat-reflective glazed and coated window or door systems, or other
7-9 window or door system modifications that reduce energy consumption;
7-10 (3) automatic energy control systems, including
7-11 computer software and technical data licenses;
7-12 (4) heating, ventilating, or air conditioning system
7-13 modifications or replacements;
7-14 (5) lighting fixtures that increase energy efficiency;
7-15 (6) energy recovery systems;
7-16 (7) electric systems improvements; or
7-17 (8) other energy-conservation-related improvements or
7-18 equipment, [(]including:
7-19 (A) improvements or equipment relating to
7-20 renewable energy; and
7-21 (B) facility repairs or modifications necessary
7-22 for the installation of energy conservation measures under this
7-23 section[)].
7-24 SECTION 5. This Act takes effect September 1, 2001, and
7-25 applies only to contracts entered into by an educational
7-26 institution, state agency, or local government on or after that
7-27 date. Contracts entered into by an educational institution, state
8-1 agency, or local government before the effective date of this Act
8-2 are covered by the law in effect on the date the contract was
8-3 entered into, and the former law is continued in effect for that
8-4 purpose.