By Carter                                             H.B. No. 2278
         77R5905 MTB-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the consolidation and functions of the energy
 1-3     management center and the state energy conservation office and to
 1-4     the transfer of the powers and duties of the center and the office
 1-5     to the comptroller's office.
 1-6           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-7           SECTION 1. Chapter 447, Government Code, is amended to read
 1-8     as follows:
 1-9                CHAPTER 447. STATE ENERGY CONSERVATION OFFICE
1-10                         [ENERGY MANAGEMENT CENTER]
1-11           Sec. 447.001.  ESTABLISHMENT OF OFFICE [CENTER]. (a)  The
1-12     state energy conservation office [management center] is established
1-13     in the comptroller's office [General Services Commission] and shall
1-14     be authorized to promote those policies of the state enumerated in
1-15     this chapter.
1-16           (b)  The state energy conservation office performs the
1-17     functions prescribed for the office by Chapter 2305.
1-18           Sec. 447.0011.  REFERENCE IN LAW. A reference in law to the
1-19     energy management center means the state energy conservation
1-20     office.
1-21           Sec. 447.002.  INFORMATION; RULES; PROGRAMS. The state energy
1-22     conservation office [management center] shall develop and provide
1-23     energy conservation information for the state. The office [center]
1-24     may make rules relating to the adoption and implementation of
 2-1     energy conservation programs applicable to state buildings and
 2-2     facilities.  The office [center] may act in such other capacities
 2-3     as otherwise authorized by state or federal law.  The office's
 2-4     [center's] rules for programs and energy conservation, adopted
 2-5     under Chapter 2001, may include provisions relating to the
 2-6     retrofitting of existing state structures with energy-saving
 2-7     devices and to the energy-related renovation of such structures.
 2-8     To the extent that the office of the governor receives money
 2-9     appropriated for energy efficiency programs, the office of the
2-10     governor, through the state energy conservation office [management
2-11     center], shall implement programs that the state energy
2-12     conservation office [center] identifies as encouraging energy
2-13     conservation by state government.  A [Unless money is available for
2-14     the implementation of such a program, a] state agency shall
2-15     implement [is not required to spend money for] an energy
2-16     conservation measure or program, in accordance with the plans
2-17     developed under Section 447.011, to the extent a financing method
2-18     prescribed by Section 2166.406 is available [under this section].
2-19           Sec. 447.003.  LIAISON TO FEDERAL GOVERNMENT. The state
2-20     energy conservation office [management center] shall serve as the
2-21     state liaison to the federal government for the implementation and
2-22     administration of federal programs relating to state agency energy
2-23     matters.  In that capacity, the office [center] shall administer
2-24     state programs established under:
2-25                 (1)  Part D, Title III, Energy Policy and Conservation
2-26     Act (42 U.S.C. 6321 et seq.);
2-27                 (2)  Part G, Title III, Energy Policy and Conservation
 3-1     Act (42 U.S.C. 6371 et seq.);
 3-2                 (3)  the National Energy Extension Service Act (42
 3-3     U.S.C. 7001 et seq.); and
 3-4                 (4)  other federal energy conservation programs as may
 3-5     be assigned to the office [energy management center] by the
 3-6     governor or legislature.
 3-7           Sec. 447.004.  DESIGN STANDARDS. (a)  The state energy
 3-8     conservation office [management center] shall adopt and publish
 3-9     energy conservation design standards, under Chapter 2001, that all
3-10     new state buildings and major renovation projects, including
3-11     buildings and major renovation projects of state-supported
3-12     institutions of higher education, are required to meet.  The office
3-13     [center] shall define what constitutes a major renovation project
3-14     under this section and shall review and update the standards
3-15     biennially.
3-16           (b)  The standards must include performance and procedural
3-17     standards for the maximum energy conservation allowed by the latest
3-18     and most cost-effective technology that is consistent with the
3-19     requirements of public health, safety, and economic resources.
3-20           (c)  The standards must be adopted in terms of energy
3-21     consumption levels and must take into consideration the various
3-22     classes of building uses and must allow for design flexibility.
3-23     Procedural standards must be directed toward specific design and
3-24     building practices that produce good thermal resistance and low
3-25     infiltration and toward requiring practices in the design of
3-26     mechanical and electrical systems that maximize energy efficiency.
3-27     The procedural standards must concern, as applicable:
 4-1                 (1)  insulation;
 4-2                 (2)  lighting;
 4-3                 (3)  ventilation;
 4-4                 (4)  climate control;
 4-5                 (5)  special energy requirements of health-related
 4-6     facilities of higher education and state agencies; and
 4-7                 (6)  any other item that the office [center] considers
 4-8     appropriate that is adopted under Chapter 2001.
 4-9           (d)  In order to demonstrate compliance with the requirement
4-10     to adopt and update the conservation design standards, each agency
4-11     and institution of higher education shall submit a copy of its
4-12     design and construction manuals to the office [center] on request.
4-13           (e)  Prior to construction, agencies and institutions of
4-14     higher education shall have the design architect or engineer on the
4-15     project certify to the agency or institution, with a copy to the
4-16     office [energy management center], that all new building
4-17     construction and major building renovation projects comply with the
4-18     energy conservation design standards required under this section.
4-19           Sec. 447.005.  ENERGY EFFICIENCY PROJECTS. Subject to
4-20     applicable state and federal laws or guidelines, the state energy
4-21     conservation office [management center] may implement energy
4-22     efficiency projects at state agencies or may assist those agencies
4-23     in implementing the projects through energy efficiency programs
4-24     financed through state or federal grants or loans.
4-25           Sec. 447.006.  OBTAINING AND REPORTING DATA. The state energy
4-26     conservation office [management center] shall [obtain]
4-27     semiannually:
 5-1                 (1)  obtain from each state agency information relating
 5-2     to the progress each agency has made in reducing energy costs
 5-3     through adherence to the plans developed under Section 447.011; and
 5-4                 (2)  report the information obtained in Subdivision (1)
 5-5     to the Legislative Budget Board [cost of heating and cooling
 5-6     buildings owned by the state].
 5-7           Sec. 447.007.  MODEL CODES. The state energy conservation
 5-8     office [management center] may recommend model energy conservation
 5-9     building codes to municipalities for use in enacting or amending
5-10     municipal ordinances.
5-11           Sec. 447.008.  ADDITIONAL ENERGY SERVICES. (a)  The state
5-12     energy conservation office [management center] may provide
5-13     additional energy services, including:
5-14                 (1)  training of designated state employees in energy
5-15     management, energy-accounting techniques, and energy efficient
5-16     design and construction;
5-17                 (2)  technical assistance regarding energy efficient
5-18     capital improvements, energy efficient building design, and
5-19     cogeneration and thermal storage investments;
5-20                 (3)  technical assistance to the State Auditor and to
5-21     state agencies regarding conducting energy management performance
5-22     audits and monitoring of utility bills to detect billing errors;
5-23                 (4)  technical assistance to state agencies regarding
5-24     third-party financing of energy efficient capital improvement
5-25     projects; and
5-26                 (5)  other energy-related assistance requested by
5-27     agencies, other legislatively created entities of the state,
 6-1     institutions of higher education, and consortiums of institutions
 6-2     of higher education that the office [center] considers appropriate.
 6-3           (b)  Using available state, federal, or oil overcharge funds,
 6-4     the office [energy management center] may assist state agencies and
 6-5     institutions of higher education in analyzing and negotiating rates
 6-6     for electricity and natural gas supplies from locally certificated
 6-7     electric suppliers, natural gas suppliers, or state-owned energy
 6-8     resources, including transportation charges for natural gas.  The
 6-9     provisions of this section shall not be construed to empower the
6-10     office [energy management center] to negotiate rates for natural
6-11     gas supplies on behalf of state agencies or institutions but rather
6-12     to provide technical assistance as needed.
6-13           (c)  Agencies and institutions of higher education may seek
6-14     the assistance of the office [energy management center] before
6-15     negotiating or contracting for the supply and transportation of
6-16     natural gas and electricity that will result in an anticipated
6-17     annual expenditure of more than $100,000.
6-18           (d)  Any state agency or institution of higher education with
6-19     expertise in rate analysis, negotiation, or any other matter
6-20     related to the procurement of electricity and natural gas supplies
6-21     from locally certificated electric suppliers, natural gas
6-22     suppliers, or state-owned energy resources may assist the office
6-23     [energy management center] whenever practicable.  The attorney
6-24     general on request shall assist the office [energy management
6-25     center] and other state agencies and institutions of higher
6-26     education in negotiating rates for electricity and other terms of
6-27     electric utility service.
 7-1           (e)  Using available funds from any source where permitted,
 7-2     the office [energy management center] may assist state agencies,
 7-3     legislatively created entities of the state, institutions of higher
 7-4     education, and consortiums of institutions of higher education to
 7-5     further the goals and pursue the policies of the state in energy
 7-6     research as may be determined by the governor or the legislature.
 7-7     The office [energy management center] may assist state agencies,
 7-8     which are hereby authorized to act in accordance with this section,
 7-9     in implementing federal energy policy as expressed in Pub. L. No.
7-10     102-486, 106 Stat. 2776 (1992).
7-11           (f)  The office [energy management center] on request may
7-12     negotiate rates for electricity and other terms of electric utility
7-13     service for a state agency or institution of higher education.  The
7-14     office [energy management center] may also negotiate the rates and
7-15     the other terms of service for a group of agencies and institutions
7-16     together in a single contract.
7-17           (g)  The office [energy management center] shall analyze the
7-18     rates for electricity charged to and the amount of electricity used
7-19     by state agencies and institutions of higher education to determine
7-20     ways the state could obtain lower rates and use less electricity.
7-21     State agencies, including the Public Utility Commission of Texas,
7-22     and institutions of higher education shall assist the office
7-23     [energy management center] in obtaining the information the office
7-24     [center] requires to perform its analysis.
7-25           (h)  The office [energy management center] and the attorney
7-26     general shall cooperate in monitoring efforts to deregulate the
7-27     electric utility industry and in reporting on the ways in which
 8-1     deregulation would affect state government as a purchaser of
 8-2     electricity.  The office [energy management center], represented by
 8-3     the attorney general, may intervene in proceedings before the
 8-4     Public Utility Commission of Texas that are related to deregulating
 8-5     all or part of the electric utility industry to represent the
 8-6     interests of state government as a purchaser of electricity in
 8-7     those proceedings.
 8-8           Sec. 447.009.  ENERGY AUDITS. (a)  The state energy
 8-9     conservation office [management center] shall conduct audits of
8-10     state-owned buildings used by state agencies.  The audits shall be
8-11     designed to assist state agencies in reducing energy consumption
8-12     and costs through improved energy efficiency.
8-13           (b)  Based on the audit performed under Subsection (a)  of
8-14     this section, the office of the governor may recommend changes to
8-15     improve energy efficiency.
8-16           (c)  The state energy conservation office [management center]
8-17     may provide training, technical assistance, and funding, if
8-18     available, to the State Auditor's office or the office charged with
8-19     performing management audits of state agencies to conduct energy
8-20     management audits in state agencies and institutions of higher
8-21     education.
8-22           (d)  State agencies and institutions of higher education
8-23     shall conduct reviews and audits of utility billings and contracts
8-24     to detect billing errors.  Contracts with private sector firms must
8-25     comply with all applicable provisions of Chapter 654 regarding
8-26     professional services contracts and may not be awarded on a
8-27     contingent fee basis unless a finding that the contract is
 9-1     necessary, reasonable, and prudent is obtained from the office of
 9-2     the governor.
 9-3           Sec. 447.010.  ENERGY-SAVING DEVICES OR MEASURES. (a)  On
 9-4     approval by the state energy conservation office [management
 9-5     center], a state agency that reduces its energy expenses may use
 9-6     any funds saved by the agency from appropriated utility funds for
 9-7     the purchase of energy-saving devices or measures.  For purposes of
 9-8     this section, "energy-saving device or measure" means a device or
 9-9     measure that directly reduces energy costs or the consumption of a
9-10     lighting, heating, ventilating, or air conditioning system or of
9-11     other equipment that uses electricity, natural gas, fuel oil, or
9-12     any other energy source without materially altering the quality of
9-13     such lighting, heating, ventilating, air conditioning, or other
9-14     energy consuming system.
9-15           (b)  A state agency, in accordance with the recommendations
9-16     of an energy audit, may purchase energy-saving devices or measures
9-17     from appropriated utility funds if the savings in utility funds
9-18     projected by the audit will offset the purchase within four years.
9-19     A copy of the recommendation and repayment schedule must be
9-20     attached to the purchase voucher as evidence of the projected
9-21     savings.
9-22           Sec. 447.011.  ENERGY MANAGEMENT PLANNING. (a)  The state
9-23     energy conservation office [management center] shall provide energy
9-24     management planning assistance to state agencies and institutions
9-25     of higher education, including:
9-26                 (1)  preparation of a long-range plan for the delivery
9-27     of reliable, cost-effective utility services for state agencies,
 10-1    institutions of higher education, boards, and commissions in Travis
 10-2    County.  This plan shall be presented to the affected agencies for
 10-3    use in preparing their five-year construction and major
 10-4    rehabilitation plans.  After other energy-saving alternatives are
 10-5    considered, district heating and cooling and on-site generation of
 10-6    electricity may be considered in planning for reliable, efficient,
 10-7    and cost-effective utility services;
 10-8                (2)  assistance to the Department of Public Safety for
 10-9    energy emergency contingency planning, using state or federal funds
10-10    when available; and
10-11                (3)  assistance to state agencies and institutions of
10-12    higher education in preparing comprehensive energy management
10-13    plans.  The office [energy management center] shall prepare
10-14    guidelines for the preparation of these plans.  State agencies and
10-15    institutions of higher education that expend more than $250,000
10-16    annually for heating, lighting, and cooling and that occupy
10-17    state-owned buildings shall prepare and submit a five-year energy
10-18    management plan to the office [center].  Agencies and institutions
10-19    of higher education with smaller usage may be required to submit
10-20    such plans.  Updated plans shall be submitted biennially when
10-21    requested by the office [center].
10-22          (b)  The energy management plan required in Subsection (a)(3)
10-23    shall be included in the five-year construction and major
10-24    rehabilitation plans for institutions of higher education as
10-25    required under Section 61.058 and 61.0651, Education Code.
10-26          SECTION 2. Section 2305.002(3), Government Code, is amended
10-27    to read as follows:
 11-1                (3)  "Energy office" means the state energy
 11-2    conservation office of the comptroller's office as established by
 11-3    Chapter 447 [General Services Commission].
 11-4          SECTION 3. The heading to Section 2305.011, Government Code,
 11-5    is amended to read as follows:
 11-6          Sec. 2305.011.  ADMINISTRATION BY COMPTROLLER'S OFFICE
 11-7    [GENERAL SERVICES COMMISSION] AND ENERGY OFFICE.
 11-8          SECTION 4.  Section 2305.011, Government Code, is amended by
 11-9    adding Subsection (f) to read as follows:
11-10          (f)  The comptroller may adopt rules as necessary to
11-11    administer the programs prescribed by this chapter.
11-12          SECTION 5. Section 2305.022, Government Code, is amended to
11-13    read as follows:
11-14          Sec. 2305.022.  USE OF ACCOUNT. Money in the account may be
11-15    used only by the governor and the comptroller's office [General
11-16    Services Commission] to implement and operate the programs
11-17    authorized by this chapter.
11-18          SECTION 6. On September 1, 2001:
11-19                (1)  the energy management center established under
11-20    Chapter 447, Government Code, as it existed on the effective date
11-21    of this Act, and the state energy conservation office established
11-22    under Chapter 2305, Government Code, are consolidated;
11-23                (2)  all functions and activities performed by the
11-24    General Services Commission that relate to energy conservation
11-25    under Chapter 447 or 2305, Government Code, immediately before that
11-26    date are transferred to the comptroller's office;
11-27                (3)  all employees of the General Services Commission
 12-1    who primarily perform duties related to energy conservation under
 12-2    Chapter 447 or 2305, Government Code, become employees of the
 12-3    comptroller's office;
 12-4                (4)  a rule, standard, or form adopted by the General
 12-5    Services Commission that relates to energy conservation under
 12-6    Chapter 447 or 2305, Government Code, is a rule or form of the
 12-7    comptroller's office and remains in effect until altered by the
 12-8    office;
 12-9                (5)  a reference in law to the  General Services
12-10    Commission that relates to energy conservation under Chapter 447 or
12-11    2305, Government Code, means the comptroller's office;
12-12                (6)  a proceeding involving the General Services
12-13    Commission that is related to energy conservation under Chapter 447
12-14    or 2305, Government Code, is transferred without change in status
12-15    to the comptroller's office, and the comptroller's office assumes
12-16    without a change in status the position of the General Services
12-17    Commission in a proceeding relating to energy conservation to which
12-18    the General Services Commission is a party;
12-19                (7)  all money, contracts, leases, rights, and
12-20    obligations of the General Services Commission related to energy
12-21    conservation under Chapter 447 or 2305, Government Code, are
12-22    transferred to the comptroller's office;
12-23                (8)  all property, including records, in the custody of
12-24    the General Services Commission related to energy conservation
12-25    under Chapter 447 or 2305, Government Code, becomes property of the
12-26    comptroller's office; and
12-27                (9)  all funds appropriated by the legislature to the
 13-1    General Services Commission for purposes related to energy
 13-2    conservation under Chapter 447 or 2305, Government Code, are
 13-3    transferred to the comptroller's office.
 13-4          SECTION 7. This Act takes effect September 1, 2001.