1-1 By: Carter (Senate Sponsor - Fraser) H.B. No. 2278
1-2 (In the Senate - Received from the House April 23, 2001;
1-3 April 24, 2001, read first time and referred to Committee on State
1-4 Affairs; May 9, 2001, reported favorably by the following vote:
1-5 Yeas 8, Nays 0; May 9, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the consolidation and functions of the energy
1-9 management center and the state energy conservation office and to
1-10 the transfer of the powers and duties of the center and the office
1-11 to the comptroller's office.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Chapter 447, Government Code, is amended to read
1-14 as follows:
1-15 CHAPTER 447. STATE ENERGY CONSERVATION OFFICE
1-16 [ENERGY MANAGEMENT CENTER]
1-17 Sec. 447.001. ESTABLISHMENT OF OFFICE [CENTER]. (a) The
1-18 state energy conservation office [management center] is established
1-19 in the comptroller's office [General Services Commission] and shall
1-20 be authorized to promote those policies of the state enumerated in
1-21 this chapter.
1-22 (b) The state energy conservation office performs the
1-23 functions prescribed for the office by Chapter 2305.
1-24 Sec. 447.0011. REFERENCE IN LAW. A reference in law to the
1-25 energy management center means the state energy conservation
1-26 office.
1-27 Sec. 447.002. INFORMATION; RULES; PROGRAMS. The state energy
1-28 conservation office [management center] shall develop and provide
1-29 energy conservation information for the state. The office [center]
1-30 may make rules relating to the adoption and implementation of
1-31 energy conservation programs applicable to state buildings and
1-32 facilities. The office [center] may act in such other capacities
1-33 as otherwise authorized by state or federal law. The office's
1-34 [center's] rules for programs and energy conservation, adopted
1-35 under Chapter 2001, may include provisions relating to the
1-36 retrofitting of existing state structures with energy-saving
1-37 devices and to the energy-related renovation of such structures.
1-38 To the extent that the office [of the governor] receives money
1-39 appropriated for energy efficiency programs, the office [of the
1-40 governor, through the energy management center,] shall implement
1-41 programs that it [the center] identifies as encouraging energy
1-42 conservation by state government. The office shall adopt rules
1-43 requiring [Unless money is available for the implementation of such
1-44 a program,] a state agency to implement [is not required to spend
1-45 money for] an energy conservation measure or program in accordance
1-46 with the plans developed under Section 447.010 if:
1-47 (1) the measure or program meets the eligibility
1-48 requirements of Section 2166.406; and
1-49 (2) funding is available, including funding from a
1-50 financing method prescribed by Section 2166.406 [under this
1-51 section].
1-52 Sec. 447.003. LIAISON TO FEDERAL GOVERNMENT. The state
1-53 energy conservation office [management center] shall serve as the
1-54 state liaison to the federal government for the implementation and
1-55 administration of federal programs relating to state agency energy
1-56 matters. In that capacity, the office [center] shall administer
1-57 state programs established under:
1-58 (1) Part D, Title III, Energy Policy and Conservation
1-59 Act (42 U.S.C. 6321 et seq.);
1-60 (2) Part G, Title III, Energy Policy and Conservation
1-61 Act (42 U.S.C. 6371 et seq.);
1-62 (3) the National Energy Extension Service Act (42
1-63 U.S.C. 7001 et seq.); and
1-64 (4) other federal energy conservation programs as may
2-1 be assigned to the office [energy management center] by the
2-2 governor or legislature.
2-3 Sec. 447.004. DESIGN STANDARDS. (a) The state energy
2-4 conservation office [management center] shall adopt and publish
2-5 energy conservation design standards, under Chapter 2001, that all
2-6 new state buildings and major renovation projects, including
2-7 buildings and major renovation projects of state-supported
2-8 institutions of higher education, are required to meet. The office
2-9 [center] shall define what constitutes a major renovation project
2-10 under this section and shall review and update the standards
2-11 biennially.
2-12 (b) The standards must include performance and procedural
2-13 standards for the maximum energy conservation allowed by the latest
2-14 and most cost-effective technology that is consistent with the
2-15 requirements of public health, safety, and economic resources.
2-16 (c) The standards must be adopted in terms of energy
2-17 consumption levels and must take into consideration the various
2-18 classes of building uses and must allow for design flexibility.
2-19 Procedural standards must be directed toward specific design and
2-20 building practices that produce good thermal resistance and low
2-21 infiltration and toward requiring practices in the design of
2-22 mechanical and electrical systems that maximize energy efficiency.
2-23 The procedural standards must concern, as applicable:
2-24 (1) insulation;
2-25 (2) lighting;
2-26 (3) ventilation;
2-27 (4) climate control;
2-28 (5) special energy requirements of health-related
2-29 facilities of higher education and state agencies; and
2-30 (6) any other item that the office [center] considers
2-31 appropriate that is adopted under Chapter 2001.
2-32 (d) In order to demonstrate compliance with the requirement
2-33 to adopt and update the conservation design standards, each agency
2-34 and institution of higher education shall submit a copy of its
2-35 design and construction manuals to the office [center] on request.
2-36 (e) Prior to construction, agencies and institutions of
2-37 higher education shall have the design architect or engineer on the
2-38 project certify to the agency or institution, with a copy to the
2-39 office [energy management center], that all new building
2-40 construction and major building renovation projects comply with the
2-41 energy conservation design standards required under this section.
2-42 Sec. 447.005. ENERGY EFFICIENCY PROJECTS. Subject to
2-43 applicable state and federal laws or guidelines, the state energy
2-44 conservation office [management center] may implement energy
2-45 efficiency projects at state agencies or may assist those agencies
2-46 in implementing the projects through energy efficiency programs
2-47 financed through state or federal grants or loans.
2-48 Sec. 447.006. OBTAINING AND REPORTING DATA. The state energy
2-49 conservation office [management center] shall [obtain]
2-50 semiannually:
2-51 (1) obtain from each state agency information relating
2-52 to the progress each agency has made in reducing energy costs
2-53 through adherence to the plans developed under Section 447.010; and
2-54 (2) report the information obtained in Subdivision (1)
2-55 to the Legislative Budget Board [cost of heating and cooling
2-56 buildings owned by the state].
2-57 Sec. 447.007. MODEL CODES. The state energy conservation
2-58 office [management center] may recommend model energy conservation
2-59 building codes to municipalities for use in enacting or amending
2-60 municipal ordinances.
2-61 Sec. 447.008. ADDITIONAL ENERGY SERVICES. (a) The state
2-62 energy conservation office [management center] may provide
2-63 additional energy services, including:
2-64 (1) training of designated state employees in energy
2-65 management, energy-accounting techniques, and energy efficient
2-66 design and construction;
2-67 (2) technical assistance regarding energy efficient
2-68 capital improvements, energy efficient building design, and
2-69 cogeneration and thermal storage investments;
3-1 (3) technical assistance to the State Auditor and to
3-2 state agencies regarding conducting energy management performance
3-3 audits and monitoring of utility bills to detect billing errors;
3-4 (4) technical assistance to state agencies regarding
3-5 third-party financing of energy efficient capital improvement
3-6 projects; and
3-7 (5) other energy-related assistance requested by
3-8 agencies, other legislatively created entities of the state,
3-9 institutions of higher education, and consortiums of institutions
3-10 of higher education that the office [center] considers appropriate.
3-11 (b) Using available state, federal, or oil overcharge funds,
3-12 the office [energy management center] may assist state agencies and
3-13 institutions of higher education in analyzing and negotiating rates
3-14 for electricity and natural gas supplies from locally certificated
3-15 electric suppliers, natural gas suppliers, or state-owned energy
3-16 resources, including transportation charges for natural gas. The
3-17 provisions of this section shall not be construed to empower the
3-18 office [energy management center] to negotiate rates for natural
3-19 gas supplies on behalf of state agencies or institutions but rather
3-20 to provide technical assistance as needed.
3-21 (c) Agencies and institutions of higher education may seek
3-22 the assistance of the office [energy management center] before
3-23 negotiating or contracting for the supply and transportation of
3-24 natural gas and electricity that will result in an anticipated
3-25 annual expenditure of more than $100,000.
3-26 (d) Any state agency or institution of higher education with
3-27 expertise in rate analysis, negotiation, or any other matter
3-28 related to the procurement of electricity and natural gas supplies
3-29 from locally certificated electric suppliers, natural gas
3-30 suppliers, or state-owned energy resources may assist the office
3-31 [energy management center] whenever practicable. The attorney
3-32 general on request shall assist the office [energy management
3-33 center] and other state agencies and institutions of higher
3-34 education in negotiating rates for electricity and other terms of
3-35 electric utility service.
3-36 (e) Using available funds from any source where permitted,
3-37 the office [energy management center] may assist state agencies,
3-38 legislatively created entities of the state, institutions of higher
3-39 education, and consortiums of institutions of higher education to
3-40 further the goals and pursue the policies of the state in energy
3-41 research as may be determined by the governor or the legislature.
3-42 The office [energy management center] may assist state agencies,
3-43 which are hereby authorized to act in accordance with this section,
3-44 in implementing federal energy policy as expressed in Pub. L. No.
3-45 102-486, 106 Stat. 2776 (1992).
3-46 (f) The office [energy management center] on request may
3-47 negotiate rates for electricity and other terms of electric utility
3-48 service for a state agency or institution of higher education. The
3-49 office [energy management center] may also negotiate the rates and
3-50 the other terms of service for a group of agencies and institutions
3-51 together in a single contract.
3-52 (g) The office [energy management center] shall analyze the
3-53 rates for electricity charged to and the amount of electricity used
3-54 by state agencies and institutions of higher education to determine
3-55 ways the state could obtain lower rates and use less electricity.
3-56 State agencies, including the Public Utility Commission of Texas,
3-57 and institutions of higher education shall assist the office
3-58 [energy management center] in obtaining the information the office
3-59 [center] requires to perform its analysis.
3-60 (h) The office [energy management center] and the attorney
3-61 general shall cooperate in monitoring efforts to deregulate the
3-62 electric utility industry and in reporting on the ways in which
3-63 deregulation would affect state government as a purchaser of
3-64 electricity. The office [energy management center], represented by
3-65 the attorney general, may intervene in proceedings before the
3-66 Public Utility Commission of Texas that are related to deregulating
3-67 all or part of the electric utility industry to represent the
3-68 interests of state government as a purchaser of electricity in
3-69 those proceedings.
4-1 Sec. 447.009. ENERGY AUDITS. (a) The state energy
4-2 conservation office [management center] shall conduct audits of
4-3 state-owned buildings used by state agencies. The audits shall be
4-4 designed to assist state agencies in reducing energy consumption
4-5 and costs through improved energy efficiency.
4-6 (b) Based on the audit performed under Subsection (a) of
4-7 this section, the state energy conservation office [of the
4-8 governor] may recommend changes to improve energy efficiency.
4-9 (c) The state energy conservation office [management center]
4-10 may provide training, technical assistance, and funding, if
4-11 available, to the State Auditor's office or the office charged with
4-12 performing management audits of state agencies to conduct energy
4-13 management audits in state agencies and institutions of higher
4-14 education.
4-15 (d) State agencies and institutions of higher education
4-16 shall conduct reviews and audits of utility billings and contracts
4-17 to detect billing errors. Contracts with private sector firms must
4-18 comply with all applicable provisions of Chapter 654 regarding
4-19 professional services contracts and may not be awarded on a
4-20 contingent fee basis unless a finding that the contract is
4-21 necessary, reasonable, and prudent is obtained from the office of
4-22 the governor.
4-23 Sec. 447.010. [ENERGY-SAVING DEVICES OR MEASURES. (a) On
4-24 approval by the energy -management center, a state agency that
4-25 reduces its energy expenses may use any funds saved by the agency
4-26 from appropriated utility funds for the purchase of energy-saving
4-27 devices or measures. For purposes of this section, "energy-saving
4-28 device or measure" means a device or measure that directly reduces
4-29 energy costs or the consumption of a lighting, heating,
4-30 ventilating, or air conditioning system or of other equipment that
4-31 uses electricity, natural gas, fuel oil, or any other energy source
4-32 without materially altering the quality of such lighting, heating,
4-33 ventilating, air conditioning, or other energy consuming system.]
4-34 [(b) A state agency, in accordance with the recommendations
4-35 of an energy audit, may purchase energy-saving devices or measures
4-36 from appropriated utility funds if the savings in utility funds
4-37 projected by the audit will offset the purchase within four years.
4-38 A copy of the recommendation and repayment schedule must be
4-39 attached to the purchase voucher as evidence of the projected
4-40 savings.]
4-41 [Sec. 447.011.] ENERGY MANAGEMENT PLANNING. (a) The state
4-42 energy conservation office [management center] shall provide energy
4-43 management planning assistance to state agencies and institutions
4-44 of higher education, including:
4-45 (1) preparation of a long-range plan for the delivery
4-46 of reliable, cost-effective utility services for state agencies,
4-47 institutions of higher education, boards, and commissions in Travis
4-48 County. This plan shall be presented to the affected agencies for
4-49 use in preparing their five-year construction and major
4-50 rehabilitation plans. After other energy-saving alternatives are
4-51 considered, district heating and cooling and on-site generation of
4-52 electricity may be considered in planning for reliable, efficient,
4-53 and cost-effective utility services;
4-54 (2) assistance to the Department of Public Safety for
4-55 energy emergency contingency planning, using state or federal funds
4-56 when available; [and]
4-57 (3) assistance to state agencies and institutions of
4-58 higher education in preparing comprehensive energy management
4-59 plans. The office [energy management center] shall prepare
4-60 guidelines for the preparation of these plans. State agencies and
4-61 institutions of higher education that expend more than $250,000
4-62 annually for heating, lighting, and cooling and that occupy
4-63 state-owned buildings shall prepare and submit a five-year energy
4-64 management plan to the office [center]. Agencies and institutions
4-65 of higher education with smaller usage may be required to submit
4-66 such plans. Updated plans shall be submitted biennially when
4-67 requested by the office; and
4-68 (4) assistance to state agencies other than
4-69 institutions of higher education in meeting the requirements of
5-1 Section 447.002, including assistance in scheduling and assigning
5-2 priorities to implementation plans to ensure that state agencies
5-3 adopt qualified cost-effective efficiency measures and programs for
5-4 all state facilities by September 1, 2006 [center].
5-5 (b) The energy management plan required in Subsection (a)(3)
5-6 shall be included in the five-year construction and major
5-7 rehabilitation plans for institutions of higher education as
5-8 required under Section 61.058 and 61.0651, Education Code.
5-9 SECTION 2. Section 2305.002(3), Government Code, is amended
5-10 to read as follows:
5-11 (3) "Energy office" means the state energy
5-12 conservation office of the comptroller's office as established by
5-13 Chapter 447 [General Services Commission].
5-14 SECTION 3. The heading to Section 2305.011, Government Code,
5-15 is amended to read as follows:
5-16 Sec. 2305.011. ADMINISTRATION BY COMPTROLLER'S OFFICE
5-17 [GENERAL SERVICES COMMISSION] AND ENERGY OFFICE.
5-18 SECTION 4. Section 2305.011, Government Code, is amended by
5-19 adding Subsection (f) to read as follows:
5-20 (f) The comptroller may adopt rules as necessary to
5-21 administer the programs prescribed by this chapter.
5-22 SECTION 5. Section 2305.022, Government Code, is amended to
5-23 read as follows:
5-24 Sec. 2305.022. USE OF ACCOUNT. Money in the account may be
5-25 used only by the governor and the comptroller's office [General
5-26 Services Commission] to implement and operate the programs
5-27 authorized by this chapter.
5-28 SECTION 6. On September 1, 2001:
5-29 (1) the energy management center established under
5-30 Chapter 447, Government Code, as it existed on the effective date
5-31 of this Act, and the state energy conservation office established
5-32 under Chapter 2305, Government Code, are consolidated;
5-33 (2) all functions and activities performed by the
5-34 General Services Commission that relate to energy conservation
5-35 under Chapter 447 or 2305, Government Code, immediately before that
5-36 date are transferred to the comptroller's office;
5-37 (3) all employees of the General Services Commission
5-38 who primarily perform duties related to energy conservation under
5-39 Chapter 447 or 2305, Government Code, become employees of the
5-40 comptroller's office;
5-41 (4) a rule, standard, or form adopted by the General
5-42 Services Commission that relates to energy conservation under
5-43 Chapter 447 or 2305, Government Code, is a rule or form of the
5-44 comptroller's office and remains in effect until altered by the
5-45 office;
5-46 (5) a reference in law to the General Services
5-47 Commission that relates to energy conservation under Chapter 447 or
5-48 2305, Government Code, means the comptroller's office;
5-49 (6) a proceeding involving the General Services
5-50 Commission that is related to energy conservation under Chapter 447
5-51 or 2305, Government Code, is transferred without change in status
5-52 to the comptroller's office, and the comptroller's office assumes
5-53 without a change in status the position of the General Services
5-54 Commission in a proceeding relating to energy conservation to which
5-55 the General Services Commission is a party;
5-56 (7) all money, contracts, leases, rights, and
5-57 obligations of the General Services Commission related to energy
5-58 conservation under Chapter 447 or 2305, Government Code, are
5-59 transferred to the comptroller's office;
5-60 (8) all property, including records, in the custody of
5-61 the General Services Commission related to energy conservation
5-62 under Chapter 447 or 2305, Government Code, becomes property of the
5-63 comptroller's office; and
5-64 (9) all funds appropriated by the legislature to the
5-65 General Services Commission for purposes related to energy
5-66 conservation under Chapter 447 or 2305, Government Code, are
5-67 transferred to the comptroller's office.
5-68 SECTION 7. This Act takes effect September 1, 2001.
6-1 * * * * *