By Brown                                              S.B. No. 1494
         77R5926 DAK-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to water conservation measures by state agencies and local
 1-3     governments.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. The heading to Section 44.901, Education Code, is
 1-6     amended to read as follows:
 1-7           Sec. 44.901.  ENERGY OR WATER CONSERVATION MEASURES.
 1-8           SECTION 2. Sections 44.901(a)-(g), Education Code, are
 1-9     amended to read as follows:
1-10           (a)  The board of trustees of a school district may enter
1-11     into a contract for energy or water conservation measures to reduce
1-12     energy or water consumption or operating costs of school facilities
1-13     in accordance with this section.
1-14           (b)  A contract to which this section applies includes a
1-15     contract for the installation of:
1-16                 (1)  insulation of the building structures and systems
1-17     within the building;
1-18                 (2)  storm windows or doors, caulking or
1-19     weatherstripping, multiglazed windows or doors, heat absorbing or
1-20     heat reflective glazed and coated window or door systems, or other
1-21     window or door system modifications that reduce energy consumption;
1-22                 (3)  automatic energy control systems, including
1-23     computer software and technical data licenses;
1-24                 (4)  heating, ventilating, or air-conditioning system
 2-1     modifications or replacements that reduce energy or water
 2-2     consumption;
 2-3                 (5)  lighting fixtures that increase energy efficiency;
 2-4                 (6)  energy recovery systems;
 2-5                 (7)  electric systems improvements; [or]
 2-6                 (8)  water-conserving fixtures, appliances, and
 2-7     equipment or the substitution of non-water-using fixtures,
 2-8     appliances, and equipment;
 2-9                 (9)  water-conserving landscape irrigation equipment;
2-10                 (10)  landscaping measures that reduce watering demands
2-11     and capture and hold applied water and rainfall, including:
2-12                       (A)  landscape contouring, including the use of
2-13     berms, swales, and terraces; and
2-14                       (B)  the use of soil amendments that increase the
2-15     water-holding capacity of the soil, including compost;
2-16                 (11)  rainwater harvesting equipment and equipment to
2-17     make use of water collected as part of a storm-water system
2-18     installed for water quality control;
2-19                 (12)  equipment for recycling or reuse of water
2-20     originating on the premises or from other sources, including
2-21     treated municipal effluent;
2-22                 (13)  equipment needed to capture water from
2-23     nonconventional, alternate sources, including air conditioning
2-24     condensate or graywater, for nonpotable uses;
2-25                 (14)  metering equipment needed to segregate water use
2-26     in order to identify water conservation opportunities or verify
2-27     water savings; or
 3-1                 (15)  other energy or water conservation-related
 3-2     improvements or equipment (including improvements or equipment
 3-3     relating to renewable energy or nonconventional water sources or
 3-4     water reuse).
 3-5           (c)  All energy or water conservation measures must comply
 3-6     with current local, state, and federal construction, plumbing, and
 3-7     environmental codes and regulations.  Notwithstanding anything to
 3-8     the contrary in Subsection (b), a contract for energy or water
 3-9     conservation measures shall not include improvements or equipment
3-10     that allow or cause water from any condensing, cooling, or
3-11     industrial process or any system of nonpotable usage over which the
3-12     public water supply system officials do not have sanitary control,
3-13     to be returned to the potable water supply.
3-14           (d)  The person with whom the board contracts must be
3-15     experienced in the design, implementation, and installation of the
3-16     energy or water conservation measures addressed by the contract.
3-17           (e)  Before entering into a contract for energy or water
3-18     conservation measures, the board shall require the provider of the
3-19     energy or water conservation measures to file with the board a
3-20     payment and performance bond relating to the installation of energy
3-21     or water conservation measures that is in an amount the board finds
3-22     reasonable and necessary to protect the interests of the school
3-23     district and that may also cover the value of the guaranteed
3-24     savings on the contract and is conditioned on the faithful
3-25     execution of the terms of the contract.
3-26           (f)  Energy or water conservation measures with respect to
3-27     existing buildings or facilities may be financed:
 4-1                 (1)  under a lease/purchase contract that has a term
 4-2     not to exceed 15 years from the final date of installation and that
 4-3     meets federal tax requirements for tax-free municipal leasing or
 4-4     long-term financing;
 4-5                 (2)  with the proceeds of bonds; or
 4-6                 (3)  under a contract with the provider of the energy
 4-7     or water conservation measures that has a term not to exceed 15
 4-8     years from the final date of installation.
 4-9           (g)  A contract for energy or water conservation measures
4-10     shall contain provisions pursuant to which the provider of the
4-11     energy or water conservation measures guarantees the amount of the
4-12     savings to be realized by the school district under the contract.
4-13     If the term of a contract for energy or water conservation measures
4-14     exceeds one year, the school district's contractual obligations in
4-15     any one year during the term of the contract beginning after the
4-16     final date of installation may not exceed the total energy, water,
4-17     wastewater, and operating cost savings, including but not limited
4-18     to electrical, gas, water, wastewater, or other utility cost
4-19     savings and operating cost savings resulting from automatic
4-20     monitoring and control as determined by the school district in this
4-21     subsection, divided by the number of years in the contract term.
4-22           SECTION 3. The heading to Section 51.927, Education Code, is
4-23     amended to read as follows:
4-24           Sec. 51.927.  ENERGY OR WATER CONSERVATION MEASURES.
4-25           SECTION 4. Sections 51.927(a)-(h) and (l), Education Code,
4-26     are amended to read as follows:
4-27           (a)  The governing board of an institution of higher
 5-1     education may enter into a contract for energy or water
 5-2     conservation measures to reduce energy or water consumption or
 5-3     operating costs of institutional facilities in accordance with this
 5-4     section.
 5-5           (b)  A contract to which this section applies includes a
 5-6     contract for the installation of:
 5-7                 (1)  insulation of a building structure and systems
 5-8     within a building;
 5-9                 (2)  storm windows or [of] doors, caulking or weather
5-10     stripping, multiglazed windows or doors, heat-absorbing or
5-11     heat-reflective glazed and coated window or door systems, or other
5-12     window or door system modifications that reduce energy consumption;
5-13                 (3)  automatic energy control systems, including
5-14     computer software and technical data licenses;
5-15                 (4)  heating, ventilating, or air conditioning system
5-16     modifications or replacements that reduce energy or water
5-17     consumption;
5-18                 (5)  lighting fixtures that increase energy efficiency;
5-19                 (6)  energy recovery systems;
5-20                 (7)  electric systems improvements; [or]
5-21                 (8)  water-conserving fixtures, appliances, and
5-22     equipment or the substitution of non-water-using fixtures,
5-23     appliances, and equipment;
5-24                 (9)  water-conserving landscape irrigation equipment;
5-25                 (10)  landscaping measures that reduce watering demands
5-26     and capture and hold applied water and rainfall, including:
5-27                       (A)  landscape contouring, including the use of
 6-1     berms, swales, and terraces; and
 6-2                       (B)  the use of soil amendments that increase the
 6-3     water-holding capacity of the soil, including compost;
 6-4                 (11)  rainwater harvesting equipment and equipment to
 6-5     make use of water collected as part of a storm-water system
 6-6     installed for water quality control;
 6-7                 (12)  equipment for recycling or reuse of water
 6-8     originating on the premises or from other sources, including
 6-9     treated municipal effluent;
6-10                 (13)  equipment needed to capture water from
6-11     nonconventional, alternate sources, including air conditioning
6-12     condensate or graywater, for nonpotable uses;
6-13                 (14)  metering equipment needed to segregate water use
6-14     in order to identify water conservation opportunities or verify
6-15     water savings; or
6-16                 (15)  other energy or water conservation-related
6-17     improvements or equipment (including improvements or equipment
6-18     related to renewable energy or nonconventional water sources or
6-19     water reuse).
6-20           (c)  All energy or water conservation measures must comply
6-21     with current local, state, and federal construction, plumbing, and
6-22     environmental codes and regulations.  Notwithstanding anything to
6-23     the contrary in Subsection (b), a contract for energy or water
6-24     conservation measures shall not include improvements or equipment
6-25     that allow or cause water from any condensing, cooling, or
6-26     industrial process or any system of nonpotable usage over which the
6-27     public water supply system officials do not have sanitary control,
 7-1     to be returned to the potable water supply.
 7-2           (d)  The entity with whom the board contracts must be
 7-3     experienced in the design, implementation, and installation of the
 7-4     energy or water conservation measures addressed by the contract.
 7-5           (e)  Before entering into a contract for energy or water
 7-6     conservation measures, the board shall require the provider of the
 7-7     energy or water conservation measures to file with the board a
 7-8     payment and performance bond that is in an amount the board finds
 7-9     reasonable and necessary to protect the interests of the
7-10     institution and is conditioned on the faithful execution of the
7-11     terms of the contract.
7-12           (f)  The board may enter into a contract for a period of more
7-13     than one year for energy or water conservation measures with an
7-14     entity if the board finds that the amount the institution would
7-15     spend on the energy or water conservation measures will not exceed
7-16     the amount to be saved in energy, water, wastewater, and operating
7-17     costs over 15 years from the date of installation.  If the term of
7-18     a contract for energy or water conservation measures exceeds one
7-19     year, the board's contractual obligation in any year during the
7-20     term of the contract beginning after the final date of installation
7-21     may not exceed the total energy, water, wastewater, and operating
7-22     cost savings, including but not limited to electrical, gas, water,
7-23     wastewater, or other utility cost savings and operating cost
7-24     savings resulting from automatic monitoring and control, as
7-25     determined by the board in this subsection, divided by the number
7-26     of years in the contract term beginning after the final date of
7-27     installation.  The board shall consider all costs of the energy or
 8-1     water conservation measures, including costs of design,
 8-2     engineering, installation, maintenance, repairs, and debt service.
 8-3           (g)  Energy or water conservation measures may be financed:
 8-4                 (1)  under a lease/purchase contract that has a term
 8-5     not to exceed 15 years from the final date of installation and that
 8-6     meets federal tax requirements for tax-free municipal leasing or
 8-7     long-term financing;
 8-8                 (2)  with the proceeds of bonds; or
 8-9                 (3)  under a contract with the provider of the energy
8-10     or water conservation measures that has a term not to exceed 15
8-11     years from the final date of installation.
8-12           (h)  A contract for energy or water conservation measures
8-13     shall contain provisions pursuant to which the provider of the
8-14     energy or water conservation measures guarantees the amount of the
8-15     savings to be realized by the institution of higher education under
8-16     the contract.  The Master Equipment Lease Purchase Program operated
8-17     by the Texas Public Finance Authority may be utilized by an
8-18     institution to fund a contract for energy or water conservation
8-19     measures so long as the costs of the energy or water conservation
8-20     measures, including costs of design, engineering, installation,
8-21     maintenance, repairs, and anticipated debt service requirements of
8-22     the Master Equipment Lease Purchase Program, do not exceed the
8-23     total energy and operating cost savings, as described in Subsection
8-24     (f), beginning after the final date of installation.
8-25           (l)  The legislature shall base an institution's
8-26     appropriation for energy, water, and wastewater  costs during a
8-27     fiscal year on the sum of:
 9-1                 (1)  the institution's estimated energy, water, and
 9-2     wastewater costs for that fiscal year; and
 9-3                 (2)  if a contract under this section is in effect, the
 9-4     institution's estimated net savings resulting from the contract
 9-5     during the contract term, divided by the number of years in the
 9-6     contract term.
 9-7           SECTION 5. The heading to Chapter 302, Local Government Code,
 9-8     is amended to read as follows:
 9-9             CHAPTER 302. ENERGY OR WATER CONSERVATION MEASURES
9-10                            FOR LOCAL GOVERNMENTS
9-11           SECTION 6. Sections 302.001-302.004, Local Government Code,
9-12     are amended to read as follows:
9-13           Sec. 302.001.  DEFINITION. In this chapter, "local
9-14     government" means a county, municipality, or other political
9-15     subdivision of this state.  The term local government does not
9-16     include a school district authorized to enter into a contract for
9-17     energy or water conservation measures under  Section 44.901,
9-18     Education Code.
9-19           Sec. 302.002.  ENERGY OR WATER CONSERVATION MEASURES. (a)
9-20     The governing body of a local government may enter into a contract
9-21     for energy or water conservation measures to reduce energy or water
9-22     consumption or operating costs of governmental facilities in
9-23     accordance with this chapter.
9-24           (b)  A contract authorized under this chapter includes a
9-25     contract for the installation of:
9-26                 (1)  insulation of the building structure and systems
9-27     within the building;
 10-1                (2)  storm windows or doors, caulking or weather
 10-2    stripping, multiglazed windows or doors, heat-absorbing or
 10-3    heat-reflective glazed and coated window or door systems, or other
 10-4    window or door system modifications that reduce energy consumption;
 10-5                (3)  automatic energy control systems, including
 10-6    computer software and technical data licenses;
 10-7                (4)  heating, ventilating, or air conditioning system
 10-8    modifications or replacements that reduce energy or water
 10-9    consumption;
10-10                (5)  lighting fixtures that increase energy efficiency;
10-11                (6)  energy recovery systems;
10-12                (7)  electric systems improvements; [or]
10-13                (8)  water-conserving fixtures, appliances, and
10-14    equipment or the substitution of non-water-using fixtures,
10-15    appliances, and equipment;
10-16                (9)  water-conserving landscape irrigation equipment;
10-17                (10)  landscaping measures that reduce watering demands
10-18    and capture and hold applied water and rainfall, including:
10-19                      (A)  landscape contouring, including the use of
10-20    berms, swales, and terraces; and
10-21                      (B)  the use of soil amendments that increase the
10-22    water-holding capacity of the soil, including compost;
10-23                (11)  rainwater harvesting equipment and equipment to
10-24    make use of water collected as part of a storm-water system
10-25    installed for water quality control;
10-26                (12)  equipment for recycling or reuse of water
10-27    originating on the premises or from other sources, including
 11-1    treated municipal effluent;
 11-2                (13)  equipment needed to capture water from
 11-3    nonconventional, alternate sources, including air conditioning
 11-4    condensate or graywater, for nonpotable uses;
 11-5                (14)  metering equipment needed to segregate water use
 11-6    in order to identify water conservation opportunities or verify
 11-7    water savings; or
 11-8                (15)  other energy or water conservation-related
 11-9    [energy-conservation-related] improvements or equipment (including
11-10    improvements or equipment related to renewable energy or
11-11    nonconventional water sources or water reuse).
11-12          (c)  All energy or water conservation measures must comply
11-13    with current local, state, and federal construction, plumbing, and
11-14    environmental codes and regulations.  Notwithstanding anything to
11-15    the contrary in Subsection (b), a contract for energy or water
11-16    conservation measures shall not include improvements or equipment
11-17    that allow or cause water from any condensing, cooling, or
11-18    industrial process or any system of nonpotable usage over which
11-19    public water supply system officials do not have sanitary control
11-20    to be returned to the potable water supply.
11-21          Sec. 302.003.  PAYMENT AND PERFORMANCE BOND. Notwithstanding
11-22    any other law to the contrary, before entering into a contract for
11-23    energy or water conservation measures, the governing body of the
11-24    local government may, at its option:
11-25                (1)  require the provider of the energy or water
11-26    conservation measures to file with the governing body a payment and
11-27    performance bond relating to the installation of energy or water
 12-1    conservation measures that is in an amount the governing body finds
 12-2    reasonable and necessary to protect the interests of the local
 12-3    government and that may also cover the value of the guaranteed
 12-4    savings on the contract and is conditioned on the faithful
 12-5    execution of the terms of the contract; or
 12-6                (2)  choose not to require a payment and performance
 12-7    bond in connection with the contract.
 12-8          Sec. 302.004.  METHOD OF FINANCING;  TERMS OF CONTRACT. (a)
 12-9    Energy or water conservation measures with respect to existing
12-10    buildings or facilities may be financed:
12-11                (1)  under a lease-purchase contract that has a term
12-12    not to exceed 15 years from the final date of installation and that
12-13    meets federal tax requirements for tax-free municipal leasing or
12-14    long-term financing;
12-15                (2)  with the proceeds of bonds; or
12-16                (3)  under a contract with the provider of the energy
12-17    or water conservation measures that has a term not to exceed 15
12-18    years from the final date of installation.
12-19          (b)  The contract shall contain provisions pursuant to which
12-20    the provider of the energy or water conservation measures
12-21    guarantees the amount of the savings to be realized by the local
12-22    government under the contract.  If the term of a contract for
12-23    energy or water conservation measures exceeds one year, the local
12-24    government's contractual obligations in any one year during the
12-25    term of the contract beginning after the final date of installation
12-26    may not exceed the total energy, water, wastewater, and operating
12-27    cost savings, including but not limited to electrical, gas, water,
 13-1    wastewater, or other utility cost savings and operating cost
 13-2    savings resulting from automatic monitoring and control as
 13-3    determined by the local government in this subsection, divided by
 13-4    the number of years in the contract term.
 13-5          SECTION 7. Section 2166.402, Government Code, is amended to
 13-6    read as follows:
 13-7          Sec. 2166.402.  ENERGY OR WATER CONSERVATION STANDARDS FOR
 13-8    ENTITIES OTHERWISE EXCLUDED FROM CHAPTER. (a)  The governing body
 13-9    of a state agency, commission, or institution that is exempt from
13-10    this chapter under Section 2166.003 shall adopt and publish energy
13-11    or water conservation design standards as provided by Section
13-12    447.004 for a new building under the entity's authority.  The
13-13    standards must be:
13-14                (1)  consistent with those adopted by the commission
13-15    for other state buildings; and
13-16                (2)  prepared in cooperation and consultation with the
13-17    state energy conservation [management center of the governor's]
13-18    office.
13-19          (b)  The state energy conservation [management center of the
13-20    governor's] office shall assist a governing body of a state agency,
13-21    commission, or institution subject to Subsection (a) in preparing
13-22    energy conservation standards by providing technical assistance and
13-23    advice.
13-24          (c)  The Texas Water Development Board shall assist the
13-25    governing body of a state agency, commission, or institution
13-26    described by Subsection (a) in preparing water conservation
13-27    standards by providing technical assistance and advice.
 14-1          SECTION 8. The heading to Section 2166.406, Government Code,
 14-2    is amended to read as follows:
 14-3          Sec. 2166.406.  ENERGY OR WATER CONSERVATION MEASURES.
 14-4          SECTION 9. Sections 2166.406(a)-(h), (l), and (m), Government
 14-5    Code, are amended to read as follows:
 14-6          (a)  Notwithstanding any other provisions of this chapter,
 14-7    the governing body of a state agency, without the consent of the
 14-8    commission, may enter into a contract for energy conservation
 14-9    measures to reduce energy or water consumption or operating costs
14-10    of governmental facilities in accordance with this section.
14-11          (b)  A contract authorized under this section includes a
14-12    contract for the installation of:
14-13                (1)  insulation of the building structure and systems
14-14    within the building;
14-15                (2)  storm windows or doors, caulking or weather
14-16    stripping, multiglazed windows or doors, heat absorbing or heat
14-17    reflective glazed and coated window or door systems, or other
14-18    window or door system modifications that reduce energy consumption;
14-19                (3)  automatic energy control systems, including
14-20    computer software and technical data licenses;
14-21                (4)  heating, ventilating, or air-conditioning system
14-22    modifications or replacements that reduce energy or water
14-23    consumption;
14-24                (5)  lighting fixtures that increase energy efficiency;
14-25                (6)  energy recovery systems;
14-26                (7)  electric systems improvements;  [or]
14-27                (8)  water-conserving fixtures, appliances, and
 15-1    equipment or the substitution of non-water-using fixtures,
 15-2    appliances, and equipment;
 15-3                (9)  water-conserving landscape irrigation equipment;
 15-4                (10)  landscaping measures that reduce watering demands
 15-5    and capture and hold applied water and rainfall, including:
 15-6                      (A)  landscape contouring, including the use of
 15-7    berms, swales, and terraces; and
 15-8                      (B)  the use of soil amendments that increase the
 15-9    water-holding capacity of the soil, including compost;
15-10                (11)  rainwater harvesting equipment and equipment to
15-11    make use of water collected as part of a storm-water system
15-12    installed for water quality control;
15-13                (12)  equipment for recycling or reuse of water
15-14    originating on the premises or from other sources, including
15-15    treated municipal effluent;
15-16                (13)  equipment needed to capture water from
15-17    nonconventional, alternate sources, including air conditioning
15-18    condensate or graywater, for nonpotable uses;
15-19                (14)  metering equipment needed to segregate water use
15-20    in order to identify water conservation opportunities or verify
15-21    water savings; or
15-22                (15)  other energy or water conservation-related
15-23    improvements or equipment (including improvements or equipment
15-24    related to renewable energy or nonconventional water sources or
15-25    water reuse).
15-26          (c)  All energy or water conservation measures must comply
15-27    with current local, state, and federal construction, plumbing, and
 16-1    environmental codes and regulations.  Notwithstanding anything to
 16-2    the contrary in Subsection (b), a contract for energy or water
 16-3    conservation measures shall not include improvements or equipment
 16-4    that allow or cause water from any condensing, cooling, or
 16-5    industrial process or any system of nonpotable usage over which the
 16-6    public water supply system officials do not have sanitary control
 16-7    to be returned to the potable water supply.
 16-8          (d)  The entity with whom the board contracts must be
 16-9    experienced in the design, implementation, and installation of the
16-10    energy or water conservation measures addressed by the contract.
16-11          (e)  Before entering into a contract for energy or water
16-12    conservation measures, the governing body of the state agency shall
16-13    require the provider of the energy or water conservation measures
16-14    to file with the governing body a payment and performance bond that
16-15    is in an amount the governing body finds reasonable and necessary
16-16    to protect the interests of the state agency and that is
16-17    conditioned on the faithful execution of the terms of the contract.
16-18          (f)  The state agency may enter into a contract for a period
16-19    of more than one year for energy or water conservation measures
16-20    with an entity if the state agency finds that the amount the state
16-21    agency would spend on the energy or water conservation measures
16-22    will not exceed the amount to be saved in energy, water,
16-23    wastewater, and operating costs over 15 years from the date of
16-24    installation.
16-25          (g)  Energy or water conservation measures with respect to
16-26    existing buildings or facilities may be financed:
16-27                (1)  under a lease/purchase contract that has a term
 17-1    not to exceed 15 years from the final date of installation and that
 17-2    meets federal tax requirements for tax-free municipal leasing or
 17-3    long-term financing;
 17-4                (2)  with the proceeds of bonds; or
 17-5                (3)  under a contract with the provider of the energy
 17-6    or water conservation measures that has a term not to exceed 15
 17-7    years from the final date of installation.
 17-8          (h)  A contract for energy or water conservation measures
 17-9    shall contain provisions pursuant to which the provider of the
17-10    energy or water conservation measures guarantees the amount of the
17-11    savings to be realized by the state agency under the contract.  If
17-12    the term of a contract for energy or water conservation measures
17-13    exceeds one year, the agency's contractual obligation in any year
17-14    during the term of the contract beginning after the final date of
17-15    installation may not exceed the total energy, water, wastewater,
17-16    and operating cost savings, including but not limited to
17-17    electrical, gas, water, wastewater, or other utility cost savings
17-18    and operating cost savings resulting from automatic monitoring and
17-19    control, as determined by the state agency in this subsection,
17-20    divided by the number of years in the contract term.
17-21          (l)  To obtain the best final offers, the state agency may
17-22    allow proposal revisions after submissions and before the award of
17-23    a [the] contract for energy or water conservation measures. Final
17-24    review and approval of the contract will be provided by the State
17-25    Energy Conservation Office.
17-26          (m)  The legislature shall base an agency's appropriation for
17-27    energy, water, and wastewater costs during a fiscal year on the sum
 18-1    of:
 18-2                (1)  the agency's estimated energy, water, and
 18-3    wastewater costs for that fiscal year; and
 18-4                (2)  if a contract under this section is in effect, the
 18-5    agency's estimated net savings resulting from the contract during
 18-6    the contract term, divided by the number of years in the contract
 18-7    term.
 18-8          SECTION 10. Chapter 447, Government Code, is amended to read
 18-9    as follows:
18-10        CHAPTER 447.  STATE ENERGY CONSERVATION OFFICE [MANAGEMENT
18-11                                  CENTER]
18-12          Sec. 447.001.  ESTABLISHMENT OF OFFICE [CENTER]. The state
18-13    energy conservation office [management center] is established in
18-14    the General Services Commission and shall be authorized to promote
18-15    those policies of the state enumerated in this chapter.
18-16          Sec. 447.002.  INFORMATION;  RULES;  PROGRAMS. The state
18-17    energy conservation office [management center] shall develop and
18-18    provide energy and water conservation information for the state.
18-19    The office [center] may make rules relating to the adoption and
18-20    implementation of energy and water conservation programs applicable
18-21    to state buildings and facilities.  The office [center] may act in
18-22    such other capacities as otherwise authorized by state or federal
18-23    law.  The office's [center's] rules for programs and energy and
18-24    water conservation, adopted under Chapter 2001, may include
18-25    provisions relating to the retrofitting of existing state
18-26    structures with energy-saving and water-saving devices and to the
18-27    energy-related and water-related renovation of such structures.  To
 19-1    the extent that the office of the governor receives money
 19-2    appropriated for energy and water efficiency programs, the office
 19-3    of the governor, through the state energy conservation office
 19-4    [management center], shall implement programs that the state energy
 19-5    conservation office [center] identifies as encouraging energy and
 19-6    water conservation by state government.  Unless money is available
 19-7    for the implementation of such a program, a state agency is not
 19-8    required to spend money for an energy or water conservation program
 19-9    under this section. The state energy conservation office shall
19-10    coordinate all water conservation-related activities with the Texas
19-11    Water Development Board.  The Texas Water Development Board shall
19-12    evaluate and help develop all proposed water conservation and reuse
19-13    requirements and provide training and expertise to the staff of the
19-14    state energy conservation office regarding water conservation
19-15    issues.
19-16          Sec. 447.003.  LIAISON TO FEDERAL GOVERNMENT. The state
19-17    energy conservation office [management center] shall serve as the
19-18    state liaison to the federal government for the implementation and
19-19    administration of federal programs relating to state agency energy
19-20    and water matters.  In that capacity, the office [center] shall
19-21    administer state programs established under:
19-22                (1)  Part D, Title III, Energy Policy and Conservation
19-23    Act (42 U.S.C. 6321 et seq.);
19-24                (2)  Part G, Title III, Energy Policy and Conservation
19-25    Act (42 U.S.C. 6371 et seq.); and
19-26                (3)  [the National Energy Extension Service Act (42
19-27    U.S.C. 7001 et seq.); and]
 20-1                [(4)]  other federal energy and water conservation
 20-2    programs as may be assigned to the state energy conservation office
 20-3    [management center] by the governor or legislature.
 20-4          Sec. 447.004.  DESIGN STANDARDS. (a)  The state energy
 20-5    conservation office [management center] shall adopt and publish
 20-6    energy and water conservation design standards, under Chapter 2001,
 20-7    that all new state buildings and major renovation projects,
 20-8    including buildings and major renovation projects of
 20-9    state-supported institutions of higher education, are required to
20-10    meet.  The office [center] shall define what constitutes a major
20-11    renovation project under this section and shall review and update
20-12    the standards biennially.
20-13          (b)  The standards must include performance and procedural
20-14    standards for the maximum energy and water conservation allowed by
20-15    the latest and most cost-effective technology that is consistent
20-16    with the requirements of public health, safety, and economic
20-17    resources.
20-18          (c)  The standards must be adopted in terms of energy and
20-19    water consumption levels and must take into consideration the
20-20    various classes of building uses and must allow for design
20-21    flexibility.  Procedural standards must be directed toward specific
20-22    design and building practices that produce good thermal resistance
20-23    and low infiltration and toward requiring practices in the design
20-24    of mechanical and electrical systems that maximize energy and water
20-25    efficiency.  The procedural standards must concern, as applicable:
20-26                (1)  insulation;
20-27                (2)  lighting;
 21-1                (3)  ventilation;
 21-2                (4)  climate control;
 21-3                (5)  water-conserving fixtures, appliances, and
 21-4    equipment or the substitution of non-water-using fixtures,
 21-5    appliances, and equipment;
 21-6                (6)  water-conserving landscape irrigation equipment;
 21-7                (7)  landscaping measures that reduce watering demands
 21-8    and capture and hold applied water and rainfall, including:
 21-9                      (A)  landscape contouring, including the use of
21-10    berms, swales, and terraces; and
21-11                      (B)  the use of soil amendments that increase the
21-12    water-holding capacity of the soil, including compost;
21-13                (8)  rainwater harvesting equipment and equipment to
21-14    make use of water collected as part of a storm-water system
21-15    installed for water quality control;
21-16                (9)  equipment for recycling or reuse of water
21-17    originating on the premises or from other sources, including
21-18    treated municipal effluent;
21-19                (10)  equipment needed to capture water from
21-20    nonconventional, alternate sources, including air conditioning
21-21    condensate or graywater, for nonpotable uses;
21-22                (11)  metering equipment needed to segregate water use
21-23    in order to identify water conservation opportunities or verify
21-24    water savings;
21-25                (12)  special energy and water requirements of
21-26    health-related facilities of higher education and state agencies;
21-27    and
 22-1                (13) [(6)]  any other item that the center considers
 22-2    appropriate that is adopted under Chapter 2001.
 22-3          (d)  In order to demonstrate compliance with the requirement
 22-4    to adopt and update the conservation design standards, each agency
 22-5    and institution of higher education shall submit a copy of its
 22-6    design and construction manuals to the office [center] on request.
 22-7          (e)  Prior to construction, agencies and institutions of
 22-8    higher education shall have the design architect or engineer on the
 22-9    project certify to the agency or institution, with a copy to the
22-10    state energy conservation office [management center], that all new
22-11    building construction and major building renovation projects comply
22-12    with the energy and water conservation design standards required
22-13    under this section.
22-14          Sec. 447.005.  ENERGY AND WATER EFFICIENCY PROJECTS. Subject
22-15    to applicable state and federal laws or guidelines, the state
22-16    energy conservation office [management center] may implement energy
22-17    and water efficiency projects at state agencies or may assist those
22-18    agencies in implementing the projects through energy and water
22-19    efficiency programs financed through state or federal grants or
22-20    loans.
22-21          Sec. 447.006.  OBTAINING DATA. The state energy conservation
22-22    office [management center] shall obtain semiannually from each
22-23    state agency information relating to the cost of heating and
22-24    cooling buildings owned by the state.
22-25          Sec. 447.007.  MODEL CODES. The state energy conservation
22-26    office [management center] may recommend model energy and water
22-27    conservation building codes to municipalities for use in enacting
 23-1    or amending municipal ordinances.
 23-2          Sec. 447.008.  ADDITIONAL ENERGY AND WATER SERVICES. (a)  The
 23-3    state energy conservation office [management center] may provide
 23-4    additional energy and water services, including:
 23-5                (1)  training of designated state employees in energy
 23-6    and water management, energy-accounting techniques,
 23-7    water-accounting techniques, and energy-efficient and
 23-8    water-efficient [energy efficient] design and construction;
 23-9                (2)  technical assistance regarding energy-efficient
23-10    and water-efficient [energy efficient] capital improvements,
23-11    energy-efficient and water-efficient [energy efficient] building
23-12    design, and cogeneration and thermal storage investments;
23-13                (3)  technical assistance to the State Auditor and to
23-14    state agencies regarding conducting energy and water management
23-15    performance audits and monitoring of utility bills to detect
23-16    billing errors;
23-17                (4)  technical assistance to state agencies regarding
23-18    third-party financing of energy-efficient and water-efficient
23-19    [energy efficient] capital improvement projects; and
23-20                (5)  other energy-related and water-related assistance
23-21    requested by agencies, other legislatively created entities of the
23-22    state, institutions of higher education, and consortiums of
23-23    institutions of higher education that the office [center] considers
23-24    appropriate.
23-25          (b)  Using available state, federal, or oil overcharge funds,
23-26    the state energy conservation office [management center] may assist
23-27    state agencies and institutions of higher education in analyzing
 24-1    and negotiating rates for electricity and natural gas supplies from
 24-2    locally certificated electric suppliers, natural gas suppliers, or
 24-3    state-owned energy and water resources, including transportation
 24-4    charges for natural gas.  The provisions of this section shall not
 24-5    be construed to empower the state energy conservation office
 24-6    [management center] to negotiate rates for natural gas supplies on
 24-7    behalf of state agencies or institutions but rather to provide
 24-8    technical assistance as needed.
 24-9          (c)  Agencies and institutions of higher education may seek
24-10    the assistance of the state energy conservation office [management
24-11    center] before negotiating or contracting for the supply and
24-12    transportation of natural gas and electricity that will result in
24-13    an anticipated annual expenditure of more than $100,000.
24-14          (d)  Any state agency or institution of higher education with
24-15    expertise in rate analysis, negotiation, or any other matter
24-16    related to the procurement of electricity and natural gas supplies
24-17    from locally certificated electric suppliers, natural gas
24-18    suppliers, or state-owned energy and water resources may assist the
24-19    state energy conservation office [management center] whenever
24-20    practicable.  The attorney general on request shall assist the
24-21    state energy conservation office [management center] and other
24-22    state agencies and institutions of higher education in negotiating
24-23    rates for electricity and other terms of electric utility service.
24-24          (e)  Using available funds from any source where permitted,
24-25    the state energy conservation office [management center] may assist
24-26    state agencies, legislatively created entities of the state,
24-27    institutions of higher education, and consortiums of institutions
 25-1    of higher education to further the goals and pursue the policies of
 25-2    the state in energy and water research as may be determined by the
 25-3    governor or the legislature.  The state energy conservation office
 25-4    [management center] may assist state agencies, which are hereby
 25-5    authorized to act in accordance with this section, in implementing
 25-6    federal energy and water policy as expressed in Pub. L. No.
 25-7    102-486, 106 Stat. 2776 (1992).
 25-8          (f)  The state energy conservation office [management center]
 25-9    on request may negotiate rates for electricity and other terms of
25-10    electric utility service for a state agency or institution of
25-11    higher education.  The state energy conservation office [management
25-12    center] may also negotiate the rates and the other terms of service
25-13    for a group of agencies and institutions together in a single
25-14    contract.
25-15          (g)  The state energy conservation office [management center]
25-16    shall analyze the rates for electricity charged to and the amount
25-17    of electricity used by state agencies and institutions of higher
25-18    education to determine ways the state could obtain lower rates and
25-19    use less electricity.  State agencies, including the Public Utility
25-20    Commission of Texas, and institutions of higher education shall
25-21    assist the state energy conservation office [management center] in
25-22    obtaining the information the office [center] requires to perform
25-23    its analysis.
25-24          (h)  The state energy conservation office [management center]
25-25    and the attorney general shall cooperate in monitoring efforts to
25-26    deregulate the electric utility industry and in reporting on the
25-27    ways in which deregulation would affect state government as a
 26-1    purchaser of electricity.  The state energy conservation office
 26-2    [management center], represented by the attorney general, may
 26-3    intervene in proceedings before the Public Utility Commission of
 26-4    Texas that are related to deregulating all or part of the electric
 26-5    utility industry to represent the interests of state government as
 26-6    a purchaser of electricity in those proceedings.
 26-7          Sec. 447.009.  ENERGY AND WATER AUDITS. (a)  The state energy
 26-8    conservation office [management center] shall conduct audits of
 26-9    state-owned buildings used by state agencies.  The audits shall be
26-10    designed to assist state agencies in reducing energy and water
26-11    consumption and costs through improved energy and water efficiency.
26-12          (b)  Based on the audit performed under Subsection (a)  of
26-13    this section, the office of the governor may recommend changes to
26-14    improve energy and water efficiency.
26-15          (c)  The state energy conservation office [management center]
26-16    may provide training, technical assistance, and funding, if
26-17    available, to the State Auditor's office or the office charged with
26-18    performing management audits of state agencies to conduct energy
26-19    and water management audits in state agencies and institutions of
26-20    higher education.
26-21          (d)  State agencies and institutions of higher education
26-22    shall conduct reviews and audits of utility billings and contracts
26-23    to detect billing errors.  Contracts with private sector firms must
26-24    comply with all applicable provisions of Chapter 2254 [654]
26-25    regarding professional services contracts and may not be awarded on
26-26    a contingent fee basis unless a finding that the contract is
26-27    necessary, reasonable, and prudent is obtained from the office of
 27-1    the governor.
 27-2          Sec. 447.010.  ENERGY-SAVING AND WATER-SAVING DEVICES OR
 27-3    MEASURES. (a)  On approval by the state energy conservation office
 27-4    [management center], a state agency that reduces its energy or
 27-5    water expenses may use any funds saved by the agency from
 27-6    appropriated utility funds for the purchase of energy-saving or
 27-7    water-saving devices or measures.  For purposes of this section,
 27-8    "energy-saving or water-saving device or measure" means a device or
 27-9    measure that directly reduces energy or water costs or the
27-10    consumption of a lighting, heating, ventilating, or air
27-11    conditioning system or of other equipment that uses electricity,
27-12    natural gas, fuel oil, or any other energy or water source without
27-13    materially altering the quality of such lighting, heating,
27-14    ventilating, air conditioning, or other energy or water consuming
27-15    system.
27-16          (b)  A state agency, in accordance with the recommendations
27-17    of an energy and water audit, may purchase energy-saving and
27-18    water-saving devices or measures from appropriated utility funds if
27-19    the savings in utility funds projected by the audit will offset the
27-20    purchase within four years. A copy of the recommendation and
27-21    repayment schedule must be attached to the purchase voucher as
27-22    evidence of the projected savings.
27-23          Sec. 447.011.  ENERGY AND WATER MANAGEMENT PLANNING. (a)  The
27-24    state energy conservation office [management center] shall provide
27-25    energy and water management planning assistance to state agencies
27-26    and institutions of higher education, including:
27-27                (1)  preparation of a long-range plan for the delivery
 28-1    of reliable, cost-effective utility services for state agencies,
 28-2    institutions of higher education, boards, and commissions in Travis
 28-3    County.  This plan shall be presented to the affected agencies for
 28-4    use in preparing their five-year construction and major
 28-5    rehabilitation plans.  After other energy-saving and water-saving
 28-6    alternatives are considered, district heating and cooling and
 28-7    on-site generation of electricity may be considered in planning for
 28-8    reliable, efficient, and cost-effective utility services;
 28-9                (2)  assistance to the Department of Public Safety for
28-10    energy and water emergency contingency planning, using state or
28-11    federal funds when available; and
28-12                (3)  assistance to state agencies and institutions of
28-13    higher education in preparing comprehensive energy and water
28-14    management plans.  The state energy conservation office [management
28-15    center] shall prepare guidelines for the preparation of these
28-16    plans.  State agencies and institutions of higher education that
28-17    expend more than $250,000 annually for heating, lighting, and
28-18    cooling and that occupy state-owned buildings shall prepare and
28-19    submit a five-year energy and water management plan to the center.
28-20    Agencies and institutions of higher education with smaller usage
28-21    may be required to submit such plans.  Updated plans shall be
28-22    submitted biennially when requested by the office [center].
28-23          (b)  The energy and water management plan required in
28-24    Subsection (a)(3) shall be included in the five-year construction
28-25    and major rehabilitation plans for institutions of higher education
28-26    as required under Sections [Section] 61.058 and 61.0651, Education
28-27    Code.
 29-1          SECTION 11.  This Act takes effect September 1, 2001.