1-1 By: Lewis of Orange (Senate Sponsor - Brown) H.B. No. 3286
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
1-4 Natural Resources; May 4, 2001, reported favorably, as amended, by
1-5 the following vote: Yeas 6, Nays 0; May 4, 2001, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Brown
1-7 Amend H.B. 3286 by adding new SECTIONS 11-13 to read as
1-8 follows and renumber the subsequent section appropriately:
1-9 SECTION 11. Sec. 44.901, Education Code, is amended by
1-10 adding subsection (j) to read as follows:
1-11 (j) Prior to entering into a contract under this section,
1-12 the board must require that the cost savings projected by an
1-13 offeror be reviewed by a licensed professional engineer who is not
1-14 an officer or employee of an offeror for the contract under review
1-15 or otherwise associated with the contract or the offeror. An
1-16 engineer who reviews a contract shall maintain the confidentiality
1-17 of any proprietary information the engineer acquires while
1-18 reviewing the contract. Section 19, The Texas Engineering Practice
1-19 Act (Article 3271a, Vernon's Texas Civil Statutes), applies to work
1-20 performed under the contract.
1-21 SECTION 12. Sec. 302.005, Local Government Code, is amended
1-22 by adding subsection (d) to read as follows:
1-23 (d) Prior to entering into a contract under this section,
1-24 the governing body must require that the cost savings projected by
1-25 an offeror be reviewed by a licensed professional engineer who is
1-26 not an officer or employee of an offeror for the contract under
1-27 review or otherwise associated with the contract or the offeror.
1-28 An engineer who reviews a contract shall maintain the
1-29 confidentiality of any proprietary information the engineer
1-30 acquires while reviewing the contract. Section 19, The Texas
1-31 Engineering Practice Act (Article 3271a, Vernon's Texas Civil
1-32 Statutes), applies to work performed under the contract.
1-33 SECTION 13. Sec. 2166.406 (i), Government Code, is amended
1-34 to read as follows:
1-35 (i) A contract under this section may be let under
1-36 competitive sealed proposal procedures. Notice of the request for
1-37 proposals shall be given in the manner provided for in Chapter
1-38 2156. The State Energy Conservation Office shall establish
1-39 guidelines and an approval process for contracts awarded under this
1-40 section. The guidelines adopted under this subsection must require
1-41 that the cost savings projected by an offeror be reviewed by a
1-42 licensed professional engineer who is not an officer or employee of
1-43 an offeror for the contract under review or otherwise associated
1-44 with the contract. An engineer who reviews a contract shall
1-45 maintain the confidentiality of any proprietary information the
1-46 engineer acquires while reviewing the contract. Section 19, The
1-47 Texas Engineering Practice Act (Article 3271a, Vernon's Texas Civil
1-48 Statutes), applies to work performed under the contract [Before
1-49 awarding the contract, the state agency shall submit the selected
1-50 proposal to the State Energy Conservation Office and the Texas
1-51 Energy Coordination Council for review and comment before awarding
1-52 the contract. The State Energy Conservation Office and the Texas
1-53 Energy Coordination Council will provide a cost benefit analysis of
1-54 the proposals and an analysis of the guaranteed savings projected
1-55 by offerors and may charge a fee for this service]. The contract
1-56 shall be awarded to the responsible offeror whose proposal,
1-57 following negotiations, is determined to be the most advantageous
1-58 to the state agency considering the savings and other evaluation
1-59 factors set forth in the request for proposals except that if the
1-60 state agency finds that no offer is acceptable, it shall refuse all
1-61 offers.
2-1 A BILL TO BE ENTITLED
2-2 AN ACT
2-3 relating to water conservation measures by state agencies and local
2-4 governments.
2-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
2-6 SECTION 1. The heading to Section 44.901, Education Code, is
2-7 amended to read as follows:
2-8 Sec. 44.901. ENERGY OR WATER CONSERVATION MEASURES.
2-9 SECTION 2. Sections 44.901(a)-(g), Education Code, are
2-10 amended to read as follows:
2-11 (a) The board of trustees of a school district may enter
2-12 into a contract for energy or water conservation measures to reduce
2-13 energy or water consumption or operating costs of school facilities
2-14 in accordance with this section.
2-15 (b) A contract to which this section applies includes a
2-16 contract for the installation of:
2-17 (1) insulation of the building structures and systems
2-18 within the building;
2-19 (2) storm windows or doors, caulking or
2-20 weatherstripping, multiglazed windows or doors, heat absorbing or
2-21 heat reflective glazed and coated window or door systems, or other
2-22 window or door system modifications that reduce energy consumption;
2-23 (3) automatic energy control systems, including
2-24 computer software and technical data licenses;
2-25 (4) heating, ventilating, or air-conditioning system
2-26 modifications or replacements that reduce energy or water
2-27 consumption;
2-28 (5) lighting fixtures that increase energy efficiency;
2-29 (6) energy recovery systems;
2-30 (7) electric systems improvements; [or]
2-31 (8) water-conserving fixtures, appliances, and
2-32 equipment or the substitution of non-water-using fixtures,
2-33 appliances, and equipment;
2-34 (9) water-conserving landscape irrigation equipment;
2-35 (10) landscaping measures that reduce watering demands
2-36 and capture and hold applied water and rainfall, including:
2-37 (A) landscape contouring, including the use of
2-38 berms, swales, and terraces; and
2-39 (B) the use of soil amendments that increase the
2-40 water-holding capacity of the soil, including compost;
2-41 (11) rainwater harvesting equipment and equipment to
2-42 make use of water collected as part of a storm-water system
2-43 installed for water quality control;
2-44 (12) equipment for recycling or reuse of water
2-45 originating on the premises or from other sources, including
2-46 treated municipal effluent;
2-47 (13) equipment needed to capture water from
2-48 nonconventional, alternate sources, including air conditioning
2-49 condensate or graywater, for nonpotable uses;
2-50 (14) metering equipment needed to segregate water use
2-51 in order to identify water conservation opportunities or verify
2-52 water savings; or
2-53 (15) other energy or water conservation-related
2-54 improvements or equipment (including improvements or equipment
2-55 relating to renewable energy or nonconventional water sources or
2-56 water reuse).
2-57 (c) All energy or water conservation measures must comply
2-58 with current local, state, and federal construction, plumbing, and
2-59 environmental codes and regulations. Notwithstanding anything to
2-60 the contrary in Subsection (b), a contract for energy or water
2-61 conservation measures shall not include improvements or equipment
2-62 that allow or cause water from any condensing, cooling, or
2-63 industrial process or any system of nonpotable usage over which the
2-64 public water supply system officials do not have sanitary control,
2-65 to be returned to the potable water supply.
2-66 (d) The person with whom the board contracts must be
2-67 experienced in the design, implementation, and installation of the
2-68 energy or water conservation measures addressed by the contract.
3-1 (e) Before entering into a contract for energy or water
3-2 conservation measures, the board shall require the provider of the
3-3 energy or water conservation measures to file with the board a
3-4 payment and performance bond relating to the installation of energy
3-5 or water conservation measures that is in an amount the board finds
3-6 reasonable and necessary to protect the interests of the school
3-7 district and that may also cover the value of the guaranteed
3-8 savings on the contract and is conditioned on the faithful
3-9 execution of the terms of the contract.
3-10 (f) Energy or water conservation measures with respect to
3-11 existing buildings or facilities may be financed:
3-12 (1) under a lease/purchase contract that has a term
3-13 not to exceed 15 years from the final date of installation and that
3-14 meets federal tax requirements for tax-free municipal leasing or
3-15 long-term financing;
3-16 (2) with the proceeds of bonds; or
3-17 (3) under a contract with the provider of the energy
3-18 or water conservation measures that has a term not to exceed 15
3-19 years from the final date of installation.
3-20 (g) A contract for energy or water conservation measures
3-21 shall contain provisions pursuant to which the provider of the
3-22 energy or water conservation measures guarantees the amount of the
3-23 savings to be realized by the school district under the contract.
3-24 If the term of a contract for energy or water conservation measures
3-25 exceeds one year, the school district's contractual obligations in
3-26 any one year during the term of the contract beginning after the
3-27 final date of installation may not exceed the total energy, water,
3-28 wastewater, and operating cost savings, including but not limited
3-29 to electrical, gas, water, wastewater, or other utility cost
3-30 savings and operating cost savings resulting from automatic
3-31 monitoring and control as determined by the school district in this
3-32 subsection, divided by the number of years in the contract term.
3-33 SECTION 3. The heading to Section 51.927, Education Code, is
3-34 amended to read as follows:
3-35 Sec. 51.927. ENERGY OR WATER CONSERVATION MEASURES.
3-36 SECTION 4. Sections 51.927(a)-(h) and (l), Education Code,
3-37 are amended to read as follows:
3-38 (a) The governing board of an institution of higher
3-39 education may enter into a contract for energy or water
3-40 conservation measures to reduce energy or water consumption or
3-41 operating costs of institutional facilities in accordance with this
3-42 section.
3-43 (b) A contract to which this section applies includes a
3-44 contract for the installation of:
3-45 (1) insulation of a building structure and systems
3-46 within a building;
3-47 (2) storm windows or [of] doors, caulking or weather
3-48 stripping, multiglazed windows or doors, heat-absorbing or
3-49 heat-reflective glazed and coated window or door systems, or other
3-50 window or door system modifications that reduce energy consumption;
3-51 (3) automatic energy control systems, including
3-52 computer software and technical data licenses;
3-53 (4) heating, ventilating, or air conditioning system
3-54 modifications or replacements that reduce energy or water
3-55 consumption;
3-56 (5) lighting fixtures that increase energy efficiency;
3-57 (6) energy recovery systems;
3-58 (7) electric systems improvements; [or]
3-59 (8) water-conserving fixtures, appliances, and
3-60 equipment or the substitution of non-water-using fixtures,
3-61 appliances, and equipment;
3-62 (9) water-conserving landscape irrigation equipment;
3-63 (10) landscaping measures that reduce watering demands
3-64 and capture and hold applied water and rainfall, including:
3-65 (A) landscape contouring, including the use of
3-66 berms, swales, and terraces; and
3-67 (B) the use of soil amendments that increase the
3-68 water-holding capacity of the soil, including compost;
3-69 (11) rainwater harvesting equipment and equipment to
4-1 make use of water collected as part of a storm-water system
4-2 installed for water quality control;
4-3 (12) equipment for recycling or reuse of water
4-4 originating on the premises or from other sources, including
4-5 treated municipal effluent;
4-6 (13) equipment needed to capture water from
4-7 nonconventional, alternate sources, including air conditioning
4-8 condensate or graywater, for nonpotable uses;
4-9 (14) metering equipment needed to segregate water use
4-10 in order to identify water conservation opportunities or verify
4-11 water savings; or
4-12 (15) other energy or water conservation-related
4-13 improvements or equipment (including improvements or equipment
4-14 related to renewable energy or nonconventional water sources or
4-15 water reuse).
4-16 (c) All energy or water conservation measures must comply
4-17 with current local, state, and federal construction, plumbing, and
4-18 environmental codes and regulations. Notwithstanding anything to
4-19 the contrary in Subsection (b), a contract for energy or water
4-20 conservation measures shall not include improvements or equipment
4-21 that allow or cause water from any condensing, cooling, or
4-22 industrial process or any system of nonpotable usage over which the
4-23 public water supply system officials do not have sanitary control,
4-24 to be returned to the potable water supply.
4-25 (d) The entity with whom the board contracts must be
4-26 experienced in the design, implementation, and installation of the
4-27 energy or water conservation measures addressed by the contract.
4-28 (e) Before entering into a contract for energy or water
4-29 conservation measures, the board shall require the provider of the
4-30 energy or water conservation measures to file with the board a
4-31 payment and performance bond that is in an amount the board finds
4-32 reasonable and necessary to protect the interests of the
4-33 institution and is conditioned on the faithful execution of the
4-34 terms of the contract.
4-35 (f) The board may enter into a contract for a period of more
4-36 than one year for energy or water conservation measures with an
4-37 entity if the board finds that the amount the institution would
4-38 spend on the energy or water conservation measures will not exceed
4-39 the amount to be saved in energy, water, wastewater, and operating
4-40 costs over 15 years from the date of installation. If the term of
4-41 a contract for energy or water conservation measures exceeds one
4-42 year, the board's contractual obligation in any year during the
4-43 term of the contract beginning after the final date of installation
4-44 may not exceed the total energy, water, wastewater, and operating
4-45 cost savings, including but not limited to electrical, gas, water,
4-46 wastewater, or other utility cost savings and operating cost
4-47 savings resulting from automatic monitoring and control, as
4-48 determined by the board in this subsection, divided by the number
4-49 of years in the contract term beginning after the final date of
4-50 installation. The board shall consider all costs of the energy or
4-51 water conservation measures, including costs of design,
4-52 engineering, installation, maintenance, repairs, and debt service.
4-53 (g) Energy or water conservation measures may be financed:
4-54 (1) under a lease/purchase contract that has a term
4-55 not to exceed 15 years from the final date of installation and that
4-56 meets federal tax requirements for tax-free municipal leasing or
4-57 long-term financing;
4-58 (2) with the proceeds of bonds; or
4-59 (3) under a contract with the provider of the energy
4-60 or water conservation measures that has a term not to exceed 15
4-61 years from the final date of installation.
4-62 (h) A contract for energy or water conservation measures
4-63 shall contain provisions pursuant to which the provider of the
4-64 energy or water conservation measures guarantees the amount of the
4-65 savings to be realized by the institution of higher education under
4-66 the contract. The Master Equipment Lease Purchase Program operated
4-67 by the Texas Public Finance Authority may be utilized by an
4-68 institution to fund a contract for energy or water conservation
4-69 measures so long as the costs of the energy or water conservation
5-1 measures, including costs of design, engineering, installation,
5-2 maintenance, repairs, and anticipated debt service requirements of
5-3 the Master Equipment Lease Purchase Program, do not exceed the
5-4 total energy and operating cost savings, as described in Subsection
5-5 (f), beginning after the final date of installation.
5-6 (l) The legislature shall base an institution's
5-7 appropriation for energy, water, and wastewater costs during a
5-8 fiscal year on the sum of:
5-9 (1) the institution's estimated energy, water, and
5-10 wastewater costs for that fiscal year; and
5-11 (2) if a contract under this section is in effect, the
5-12 institution's estimated net savings resulting from the contract
5-13 during the contract term, divided by the number of years in the
5-14 contract term.
5-15 SECTION 5. The heading to Chapter 302, Local Government Code,
5-16 is amended to read as follows:
5-17 CHAPTER 302. ENERGY OR WATER CONSERVATION MEASURES
5-18 FOR LOCAL GOVERNMENTS
5-19 SECTION 6. Sections 302.001-302.004, Local Government Code,
5-20 are amended to read as follows:
5-21 Sec. 302.001. DEFINITION. In this chapter, "local
5-22 government" means a county, municipality, or other political
5-23 subdivision of this state. The term local government does not
5-24 include a school district authorized to enter into a contract for
5-25 energy or water conservation measures under Section 44.901,
5-26 Education Code.
5-27 Sec. 302.002. ENERGY OR WATER CONSERVATION MEASURES. (a)
5-28 The governing body of a local government may enter into a contract
5-29 for energy or water conservation measures to reduce energy or water
5-30 consumption or operating costs of governmental facilities in
5-31 accordance with this chapter.
5-32 (b) A contract authorized under this chapter includes a
5-33 contract for the installation of:
5-34 (1) insulation of the building structure and systems
5-35 within the building;
5-36 (2) storm windows or doors, caulking or weather
5-37 stripping, multiglazed windows or doors, heat-absorbing or
5-38 heat-reflective glazed and coated window or door systems, or other
5-39 window or door system modifications that reduce energy consumption;
5-40 (3) automatic energy control systems, including
5-41 computer software and technical data licenses;
5-42 (4) heating, ventilating, or air conditioning system
5-43 modifications or replacements that reduce energy or water
5-44 consumption;
5-45 (5) lighting fixtures that increase energy efficiency;
5-46 (6) energy recovery systems;
5-47 (7) electric systems improvements; [or]
5-48 (8) water-conserving fixtures, appliances, and
5-49 equipment or the substitution of non-water-using fixtures,
5-50 appliances, and equipment;
5-51 (9) water-conserving landscape irrigation equipment;
5-52 (10) landscaping measures that reduce watering demands
5-53 and capture and hold applied water and rainfall, including:
5-54 (A) landscape contouring, including the use of
5-55 berms, swales, and terraces; and
5-56 (B) the use of soil amendments that increase the
5-57 water-holding capacity of the soil, including compost;
5-58 (11) rainwater harvesting equipment and equipment to
5-59 make use of water collected as part of a storm-water system
5-60 installed for water quality control;
5-61 (12) equipment for recycling or reuse of water
5-62 originating on the premises or from other sources, including
5-63 treated municipal effluent;
5-64 (13) equipment needed to capture water from
5-65 nonconventional, alternate sources, including air conditioning
5-66 condensate or graywater, for nonpotable uses;
5-67 (14) metering equipment needed to segregate water use
5-68 in order to identify water conservation opportunities or verify
5-69 water savings; or
6-1 (15) other energy or water conservation-related
6-2 [energy-conservation-related] improvements or equipment (including
6-3 improvements or equipment related to renewable energy or
6-4 nonconventional water sources or water reuse).
6-5 (c) All energy or water conservation measures must comply
6-6 with current local, state, and federal construction, plumbing, and
6-7 environmental codes and regulations. Notwithstanding anything to
6-8 the contrary in Subsection (b), a contract for energy or water
6-9 conservation measures shall not include improvements or equipment
6-10 that allow or cause water from any condensing, cooling, or
6-11 industrial process or any system of nonpotable usage over which
6-12 public water supply system officials do not have sanitary control
6-13 to be returned to the potable water supply.
6-14 Sec. 302.003. PAYMENT AND PERFORMANCE BOND. Notwithstanding
6-15 any other law to the contrary, before entering into a contract for
6-16 energy or water conservation measures, the governing body of the
6-17 local government may, at its option:
6-18 (1) require the provider of the energy or water
6-19 conservation measures to file with the governing body a payment and
6-20 performance bond relating to the installation of energy or water
6-21 conservation measures that is in an amount the governing body finds
6-22 reasonable and necessary to protect the interests of the local
6-23 government and that may also cover the value of the guaranteed
6-24 savings on the contract and is conditioned on the faithful
6-25 execution of the terms of the contract; or
6-26 (2) choose not to require a payment and performance
6-27 bond in connection with the contract.
6-28 Sec. 302.004. METHOD OF FINANCING; TERMS OF CONTRACT. (a)
6-29 Energy or water conservation measures with respect to existing
6-30 buildings or facilities may be financed:
6-31 (1) under a lease-purchase contract that has a term
6-32 not to exceed 15 years from the final date of installation and that
6-33 meets federal tax requirements for tax-free municipal leasing or
6-34 long-term financing;
6-35 (2) with the proceeds of bonds; or
6-36 (3) under a contract with the provider of the energy
6-37 or water conservation measures that has a term not to exceed 15
6-38 years from the final date of installation.
6-39 (b) The contract shall contain provisions pursuant to which
6-40 the provider of the energy or water conservation measures
6-41 guarantees the amount of the savings to be realized by the local
6-42 government under the contract. If the term of a contract for
6-43 energy or water conservation measures exceeds one year, the local
6-44 government's contractual obligations in any one year during the
6-45 term of the contract beginning after the final date of installation
6-46 may not exceed the total energy, water, wastewater, and operating
6-47 cost savings, including but not limited to electrical, gas, water,
6-48 wastewater, or other utility cost savings and operating cost
6-49 savings resulting from automatic monitoring and control as
6-50 determined by the local government in this subsection, divided by
6-51 the number of years in the contract term.
6-52 SECTION 7. Section 2166.402, Government Code, is amended to
6-53 read as follows:
6-54 Sec. 2166.402. ENERGY OR WATER CONSERVATION STANDARDS FOR
6-55 ENTITIES OTHERWISE EXCLUDED FROM CHAPTER. (a) The governing body
6-56 of a state agency, commission, or institution that is exempt from
6-57 this chapter under Section 2166.003 shall adopt and publish energy
6-58 or water conservation design standards as provided by Section
6-59 447.004 for a new building under the entity's authority. The
6-60 standards must be:
6-61 (1) consistent with those adopted by the commission
6-62 for other state buildings; and
6-63 (2) prepared in cooperation and consultation with the
6-64 state energy conservation [management center of the governor's]
6-65 office.
6-66 (b) The state energy conservation [management center of the
6-67 governor's] office shall assist a governing body of a state agency,
6-68 commission, or institution subject to Subsection (a) in preparing
6-69 energy conservation standards by providing technical assistance and
7-1 advice.
7-2 (c) The Texas Water Development Board shall assist the
7-3 governing body of a state agency, commission, or institution
7-4 described by Subsection (a) in preparing water conservation
7-5 standards by providing technical assistance and advice.
7-6 SECTION 8. The heading to Section 2166.406, Government Code,
7-7 is amended to read as follows:
7-8 Sec. 2166.406. ENERGY OR WATER CONSERVATION MEASURES.
7-9 SECTION 9. Sections 2166.406(a)-(h), (l), and (m), Government
7-10 Code, are amended to read as follows:
7-11 (a) Notwithstanding any other provisions of this chapter,
7-12 the governing body of a state agency, without the consent of the
7-13 commission, may enter into a contract for energy conservation
7-14 measures to reduce energy or water consumption or operating costs
7-15 of governmental facilities in accordance with this section.
7-16 (b) A contract authorized under this section includes a
7-17 contract for the installation of:
7-18 (1) insulation of the building structure and systems
7-19 within the building;
7-20 (2) storm windows or doors, caulking or weather
7-21 stripping, multiglazed windows or doors, heat absorbing or heat
7-22 reflective glazed and coated window or door systems, or other
7-23 window or door system modifications that reduce energy consumption;
7-24 (3) automatic energy control systems, including
7-25 computer software and technical data licenses;
7-26 (4) heating, ventilating, or air-conditioning system
7-27 modifications or replacements that reduce energy or water
7-28 consumption;
7-29 (5) lighting fixtures that increase energy efficiency;
7-30 (6) energy recovery systems;
7-31 (7) electric systems improvements; [or]
7-32 (8) water-conserving fixtures, appliances, and
7-33 equipment or the substitution of non-water-using fixtures,
7-34 appliances, and equipment;
7-35 (9) water-conserving landscape irrigation equipment;
7-36 (10) landscaping measures that reduce watering demands
7-37 and capture and hold applied water and rainfall, including:
7-38 (A) landscape contouring, including the use of
7-39 berms, swales, and terraces; and
7-40 (B) the use of soil amendments that increase the
7-41 water-holding capacity of the soil, including compost;
7-42 (11) rainwater harvesting equipment and equipment to
7-43 make use of water collected as part of a storm-water system
7-44 installed for water quality control;
7-45 (12) equipment for recycling or reuse of water
7-46 originating on the premises or from other sources, including
7-47 treated municipal effluent;
7-48 (13) equipment needed to capture water from
7-49 nonconventional, alternate sources, including air conditioning
7-50 condensate or graywater, for nonpotable uses;
7-51 (14) metering equipment needed to segregate water use
7-52 in order to identify water conservation opportunities or verify
7-53 water savings; or
7-54 (15) other energy or water conservation-related
7-55 improvements or equipment (including improvements or equipment
7-56 related to renewable energy or nonconventional water sources or
7-57 water reuse).
7-58 (c) All energy or water conservation measures must comply
7-59 with current local, state, and federal construction, plumbing, and
7-60 environmental codes and regulations. Notwithstanding anything to
7-61 the contrary in Subsection (b), a contract for energy or water
7-62 conservation measures shall not include improvements or equipment
7-63 that allow or cause water from any condensing, cooling, or
7-64 industrial process or any system of nonpotable usage over which the
7-65 public water supply system officials do not have sanitary control
7-66 to be returned to the potable water supply.
7-67 (d) The entity with whom the board contracts must be
7-68 experienced in the design, implementation, and installation of the
7-69 energy or water conservation measures addressed by the contract.
8-1 (e) Before entering into a contract for energy or water
8-2 conservation measures, the governing body of the state agency shall
8-3 require the provider of the energy or water conservation measures
8-4 to file with the governing body a payment and performance bond that
8-5 is in an amount the governing body finds reasonable and necessary
8-6 to protect the interests of the state agency and that is
8-7 conditioned on the faithful execution of the terms of the contract.
8-8 (f) The state agency may enter into a contract for a period
8-9 of more than one year for energy or water conservation measures
8-10 with an entity if the state agency finds that the amount the state
8-11 agency would spend on the energy or water conservation measures
8-12 will not exceed the amount to be saved in energy, water,
8-13 wastewater, and operating costs over 15 years from the date of
8-14 installation.
8-15 (g) Energy or water conservation measures with respect to
8-16 existing buildings or facilities may be financed:
8-17 (1) under a lease/purchase contract that has a term
8-18 not to exceed 15 years from the final date of installation and that
8-19 meets federal tax requirements for tax-free municipal leasing or
8-20 long-term financing;
8-21 (2) with the proceeds of bonds; or
8-22 (3) under a contract with the provider of the energy
8-23 or water conservation measures that has a term not to exceed 15
8-24 years from the final date of installation.
8-25 (h) A contract for energy or water conservation measures
8-26 shall contain provisions pursuant to which the provider of the
8-27 energy or water conservation measures guarantees the amount of the
8-28 savings to be realized by the state agency under the contract. If
8-29 the term of a contract for energy or water conservation measures
8-30 exceeds one year, the agency's contractual obligation in any year
8-31 during the term of the contract beginning after the final date of
8-32 installation may not exceed the total energy, water, wastewater,
8-33 and operating cost savings, including but not limited to
8-34 electrical, gas, water, wastewater, or other utility cost savings
8-35 and operating cost savings resulting from automatic monitoring and
8-36 control, as determined by the state agency in this subsection,
8-37 divided by the number of years in the contract term.
8-38 (l) To obtain the best final offers, the state agency may
8-39 allow proposal revisions after submissions and before the award of
8-40 a [the] contract for energy or water conservation measures. Final
8-41 review and approval of the contract will be provided by the State
8-42 Energy Conservation Office.
8-43 (m) The legislature shall base an agency's appropriation for
8-44 energy, water, and wastewater costs during a fiscal year on the sum
8-45 of:
8-46 (1) the agency's estimated energy, water, and
8-47 wastewater costs for that fiscal year; and
8-48 (2) if a contract under this section is in effect, the
8-49 agency's estimated net savings resulting from the contract during
8-50 the contract term, divided by the number of years in the contract
8-51 term.
8-52 SECTION 10. Chapter 447, Government Code, is amended to read
8-53 as follows:
8-54 CHAPTER 447. STATE ENERGY CONSERVATION OFFICE [MANAGEMENT
8-55 CENTER]
8-56 Sec. 447.001. ESTABLISHMENT OF OFFICE [CENTER]. The state
8-57 energy conservation office [management center] is established in
8-58 the General Services Commission and shall be authorized to promote
8-59 those policies of the state enumerated in this chapter.
8-60 Sec. 447.002. INFORMATION; RULES; PROGRAMS. The state
8-61 energy conservation office [management center] shall develop and
8-62 provide energy and water conservation information for the state.
8-63 The office [center] may make rules relating to the adoption and
8-64 implementation of energy and water conservation programs applicable
8-65 to state buildings and facilities. The office [center] may act in
8-66 such other capacities as otherwise authorized by state or federal
8-67 law. The office's [center's] rules for programs and energy and
8-68 water conservation, adopted under Chapter 2001, may include
8-69 provisions relating to the retrofitting of existing state
9-1 structures with energy-saving and water-saving devices and to the
9-2 energy-related and water-related renovation of such structures. To
9-3 the extent that the office of the governor receives money
9-4 appropriated for energy and water efficiency programs, the office
9-5 of the governor, through the state energy conservation office
9-6 [management center], shall implement programs that the state energy
9-7 conservation office [center] identifies as encouraging energy and
9-8 water conservation by state government. Unless money is available
9-9 for the implementation of such a program, a state agency is not
9-10 required to spend money for an energy or water conservation program
9-11 under this section. The state energy conservation office shall
9-12 coordinate all water conservation-related activities with the Texas
9-13 Water Development Board. The Texas Water Development Board shall
9-14 evaluate and help develop all proposed water conservation and reuse
9-15 requirements and provide training and expertise to the staff of the
9-16 state energy conservation office regarding water conservation
9-17 issues.
9-18 Sec. 447.003. LIAISON TO FEDERAL GOVERNMENT. The state
9-19 energy conservation office [management center] shall serve as the
9-20 state liaison to the federal government for the implementation and
9-21 administration of federal programs relating to state agency energy
9-22 and water matters. In that capacity, the office [center] shall
9-23 administer state programs established under:
9-24 (1) Part D, Title III, Energy Policy and Conservation
9-25 Act (42 U.S.C. 6321 et seq.);
9-26 (2) Part G, Title III, Energy Policy and Conservation
9-27 Act (42 U.S.C. 6371 et seq.); and
9-28 (3) [the National Energy Extension Service Act (42
9-29 U.S.C. 7001 et seq.); and]
9-30 [(4)] other federal energy and water conservation
9-31 programs as may be assigned to the state energy conservation office
9-32 [management center] by the governor or legislature.
9-33 Sec. 447.004. DESIGN STANDARDS. (a) The state energy
9-34 conservation office [management center] shall adopt and publish
9-35 energy and water conservation design standards, under Chapter 2001,
9-36 that all new state buildings and major renovation projects,
9-37 including buildings and major renovation projects of
9-38 state-supported institutions of higher education, are required to
9-39 meet. The office [center] shall define what constitutes a major
9-40 renovation project under this section and shall review and update
9-41 the standards biennially.
9-42 (b) The standards must include performance and procedural
9-43 standards for the maximum energy and water conservation allowed by
9-44 the latest and most cost-effective technology that is consistent
9-45 with the requirements of public health, safety, and economic
9-46 resources.
9-47 (c) The standards must be adopted in terms of energy and
9-48 water consumption levels and must take into consideration the
9-49 various classes of building uses and must allow for design
9-50 flexibility. Procedural standards must be directed toward specific
9-51 design and building practices that produce good thermal resistance
9-52 and low infiltration and toward requiring practices in the design
9-53 of mechanical and electrical systems that maximize energy and water
9-54 efficiency. The procedural standards must concern, as applicable:
9-55 (1) insulation;
9-56 (2) lighting;
9-57 (3) ventilation;
9-58 (4) climate control;
9-59 (5) water-conserving fixtures, appliances, and
9-60 equipment or the substitution of non-water-using fixtures,
9-61 appliances, and equipment;
9-62 (6) water-conserving landscape irrigation equipment;
9-63 (7) landscaping measures that reduce watering demands
9-64 and capture and hold applied water and rainfall, including:
9-65 (A) landscape contouring, including the use of
9-66 berms, swales, and terraces; and
9-67 (B) the use of soil amendments that increase the
9-68 water-holding capacity of the soil, including compost;
9-69 (8) rainwater harvesting equipment and equipment to
10-1 make use of water collected as part of a storm-water system
10-2 installed for water quality control;
10-3 (9) equipment for recycling or reuse of water
10-4 originating on the premises or from other sources, including
10-5 treated municipal effluent;
10-6 (10) equipment needed to capture water from
10-7 nonconventional, alternate sources, including air conditioning
10-8 condensate or graywater, for nonpotable uses;
10-9 (11) metering equipment needed to segregate water use
10-10 in order to identify water conservation opportunities or verify
10-11 water savings;
10-12 (12) special energy and water requirements of
10-13 health-related facilities of higher education and state agencies;
10-14 and
10-15 (13) [(6)] any other item that the center considers
10-16 appropriate that is adopted under Chapter 2001.
10-17 (d) In order to demonstrate compliance with the requirement
10-18 to adopt and update the conservation design standards, each agency
10-19 and institution of higher education shall submit a copy of its
10-20 design and construction manuals to the office [center] on request.
10-21 (e) Prior to construction, agencies and institutions of
10-22 higher education shall have the design architect or engineer on the
10-23 project certify to the agency or institution, with a copy to the
10-24 state energy conservation office [management center], that all new
10-25 building construction and major building renovation projects comply
10-26 with the energy and water conservation design standards required
10-27 under this section.
10-28 Sec. 447.005. ENERGY AND WATER EFFICIENCY PROJECTS. Subject
10-29 to applicable state and federal laws or guidelines, the state
10-30 energy conservation office [management center] may implement energy
10-31 and water efficiency projects at state agencies or may assist those
10-32 agencies in implementing the projects through energy and water
10-33 efficiency programs financed through state or federal grants or
10-34 loans.
10-35 Sec. 447.006. OBTAINING DATA. The state energy conservation
10-36 office [management center] shall obtain semiannually from each
10-37 state agency information relating to the cost of heating and
10-38 cooling buildings owned by the state.
10-39 Sec. 447.007. MODEL CODES. The state energy conservation
10-40 office [management center] may recommend model energy and water
10-41 conservation building codes to municipalities for use in enacting
10-42 or amending municipal ordinances.
10-43 Sec. 447.008. ADDITIONAL ENERGY AND WATER SERVICES. (a) The
10-44 state energy conservation office [management center] may provide
10-45 additional energy and water services, including:
10-46 (1) training of designated state employees in energy
10-47 and water management, energy-accounting techniques,
10-48 water-accounting techniques, and energy-efficient and
10-49 water-efficient [energy efficient] design and construction;
10-50 (2) technical assistance regarding energy-efficient
10-51 and water-efficient [energy efficient] capital improvements,
10-52 energy-efficient and water-efficient [energy efficient] building
10-53 design, and cogeneration and thermal storage investments;
10-54 (3) technical assistance to the State Auditor and to
10-55 state agencies regarding conducting energy and water management
10-56 performance audits and monitoring of utility bills to detect
10-57 billing errors;
10-58 (4) technical assistance to state agencies regarding
10-59 third-party financing of energy-efficient and water-efficient
10-60 [energy efficient] capital improvement projects; and
10-61 (5) other energy-related and water-related assistance
10-62 requested by agencies, other legislatively created entities of the
10-63 state, institutions of higher education, and consortiums of
10-64 institutions of higher education that the office [center] considers
10-65 appropriate.
10-66 (b) Using available state, federal, or oil overcharge funds,
10-67 the state energy conservation office [management center] may assist
10-68 state agencies and institutions of higher education in analyzing
10-69 and negotiating rates for electricity and natural gas supplies from
11-1 locally certificated electric suppliers, natural gas suppliers, or
11-2 state-owned energy and water resources, including transportation
11-3 charges for natural gas. The provisions of this section shall not
11-4 be construed to empower the state energy conservation office
11-5 [management center] to negotiate rates for natural gas supplies on
11-6 behalf of state agencies or institutions but rather to provide
11-7 technical assistance as needed.
11-8 (c) Agencies and institutions of higher education may seek
11-9 the assistance of the state energy conservation office [management
11-10 center] before negotiating or contracting for the supply and
11-11 transportation of natural gas and electricity that will result in
11-12 an anticipated annual expenditure of more than $100,000.
11-13 (d) Any state agency or institution of higher education with
11-14 expertise in rate analysis, negotiation, or any other matter
11-15 related to the procurement of electricity and natural gas supplies
11-16 from locally certificated electric suppliers, natural gas
11-17 suppliers, or state-owned energy and water resources may assist the
11-18 state energy conservation office [management center] whenever
11-19 practicable. The attorney general on request shall assist the
11-20 state energy conservation office [management center] and other
11-21 state agencies and institutions of higher education in negotiating
11-22 rates for electricity and other terms of electric utility service.
11-23 (e) Using available funds from any source where permitted,
11-24 the state energy conservation office [management center] may assist
11-25 state agencies, legislatively created entities of the state,
11-26 institutions of higher education, and consortiums of institutions
11-27 of higher education to further the goals and pursue the policies of
11-28 the state in energy and water research as may be determined by the
11-29 governor or the legislature. The state energy conservation office
11-30 [management center] may assist state agencies, which are hereby
11-31 authorized to act in accordance with this section, in implementing
11-32 federal energy and water policy as expressed in Pub. L. No.
11-33 102-486, 106 Stat. 2776 (1992).
11-34 (f) The state energy conservation office [management center]
11-35 on request may negotiate rates for electricity and other terms of
11-36 electric utility service for a state agency or institution of
11-37 higher education. The state energy conservation office [management
11-38 center] may also negotiate the rates and the other terms of service
11-39 for a group of agencies and institutions together in a single
11-40 contract.
11-41 (g) The state energy conservation office [management center]
11-42 shall analyze the rates for electricity charged to and the amount
11-43 of electricity used by state agencies and institutions of higher
11-44 education to determine ways the state could obtain lower rates and
11-45 use less electricity. State agencies, including the Public Utility
11-46 Commission of Texas, and institutions of higher education shall
11-47 assist the state energy conservation office [management center] in
11-48 obtaining the information the office [center] requires to perform
11-49 its analysis.
11-50 (h) The state energy conservation office [management center]
11-51 and the attorney general shall cooperate in monitoring efforts to
11-52 deregulate the electric utility industry and in reporting on the
11-53 ways in which deregulation would affect state government as a
11-54 purchaser of electricity. The state energy conservation office
11-55 [management center], represented by the attorney general, may
11-56 intervene in proceedings before the Public Utility Commission of
11-57 Texas that are related to deregulating all or part of the electric
11-58 utility industry to represent the interests of state government as
11-59 a purchaser of electricity in those proceedings.
11-60 Sec. 447.009. ENERGY AND WATER AUDITS. (a) The state energy
11-61 conservation office [management center] shall conduct audits of
11-62 state-owned buildings used by state agencies. The audits shall be
11-63 designed to assist state agencies in reducing energy and water
11-64 consumption and costs through improved energy and water efficiency.
11-65 (b) Based on the audit performed under Subsection (a) of
11-66 this section, the office of the governor may recommend changes to
11-67 improve energy and water efficiency.
11-68 (c) The state energy conservation office [management center]
11-69 may provide training, technical assistance, and funding, if
12-1 available, to the State Auditor's office or the office charged with
12-2 performing management audits of state agencies to conduct energy
12-3 and water management audits in state agencies and institutions of
12-4 higher education.
12-5 (d) State agencies and institutions of higher education
12-6 shall conduct reviews and audits of utility billings and contracts
12-7 to detect billing errors. Contracts with private sector firms must
12-8 comply with all applicable provisions of Chapter 2254 [654]
12-9 regarding professional services contracts and may not be awarded on
12-10 a contingent fee basis unless a finding that the contract is
12-11 necessary, reasonable, and prudent is obtained from the office of
12-12 the governor.
12-13 Sec. 447.010. ENERGY-SAVING AND WATER-SAVING DEVICES OR
12-14 MEASURES. (a) On approval by the state energy conservation office
12-15 [management center], a state agency that reduces its energy or
12-16 water expenses may use any funds saved by the agency from
12-17 appropriated utility funds for the purchase of energy-saving or
12-18 water-saving devices or measures. For purposes of this section,
12-19 "energy-saving or water-saving device or measure" means a device or
12-20 measure that directly reduces energy or water costs or the
12-21 consumption of a lighting, heating, ventilating, or air
12-22 conditioning system or of other equipment that uses electricity,
12-23 natural gas, fuel oil, or any other energy or water source without
12-24 materially altering the quality of such lighting, heating,
12-25 ventilating, air conditioning, or other energy or water consuming
12-26 system.
12-27 (b) A state agency, in accordance with the recommendations
12-28 of an energy and water audit, may purchase energy-saving and
12-29 water-saving devices or measures from appropriated utility funds if
12-30 the savings in utility funds projected by the audit will offset the
12-31 purchase within four years. A copy of the recommendation and
12-32 repayment schedule must be attached to the purchase voucher as
12-33 evidence of the projected savings.
12-34 Sec. 447.011. ENERGY AND WATER MANAGEMENT PLANNING. (a) The
12-35 state energy conservation office [management center] shall provide
12-36 energy and water management planning assistance to state agencies
12-37 and institutions of higher education, including:
12-38 (1) preparation of a long-range plan for the delivery
12-39 of reliable, cost-effective utility services for state agencies,
12-40 institutions of higher education, boards, and commissions in Travis
12-41 County. This plan shall be presented to the affected agencies for
12-42 use in preparing their five-year construction and major
12-43 rehabilitation plans. After other energy-saving and water-saving
12-44 alternatives are considered, district heating and cooling and
12-45 on-site generation of electricity may be considered in planning for
12-46 reliable, efficient, and cost-effective utility services;
12-47 (2) assistance to the Department of Public Safety for
12-48 energy and water emergency contingency planning, using state or
12-49 federal funds when available; and
12-50 (3) assistance to state agencies and institutions of
12-51 higher education in preparing comprehensive energy and water
12-52 management plans. The state energy conservation office [management
12-53 center] shall prepare guidelines for the preparation of these
12-54 plans. State agencies and institutions of higher education that
12-55 expend more than $250,000 annually for heating, lighting, and
12-56 cooling and that occupy state-owned buildings shall prepare and
12-57 submit a five-year energy and water management plan to the center.
12-58 Agencies and institutions of higher education with smaller usage
12-59 may be required to submit such plans. Updated plans shall be
12-60 submitted biennially when requested by the office [center].
12-61 (b) The energy and water management plan required in
12-62 Subsection (a)(3) shall be included in the five-year construction
12-63 and major rehabilitation plans for institutions of higher education
12-64 as required under Sections [Section] 61.058 and 61.0651, Education
12-65 Code.
12-66 SECTION 11. This Act takes effect September 1, 2001.
12-67 * * * * *