1-1 By: Brown S.B. No. 1494
1-2 (In the Senate - Filed March 9, 2001; March 13, 2001, read
1-3 first time and referred to Committee on Natural Resources;
1-4 April 18, 2001, reported favorably by the following vote: Yeas 5,
1-5 Nays 0; April 18, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to water conservation measures by state agencies and local
1-9 governments.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. The heading to Section 44.901, Education Code, is
1-12 amended to read as follows:
1-13 Sec. 44.901. ENERGY OR WATER CONSERVATION MEASURES.
1-14 SECTION 2. Subsections (a) through (g), Section 44.901,
1-15 Education Code, are amended to read as follows:
1-16 (a) The board of trustees of a school district may enter
1-17 into a contract for energy or water conservation measures to reduce
1-18 energy or water consumption or operating costs of school facilities
1-19 in accordance with this section.
1-20 (b) A contract to which this section applies includes a
1-21 contract for the installation of:
1-22 (1) insulation of the building structures and systems
1-23 within the building;
1-24 (2) storm windows or doors, caulking or
1-25 weatherstripping, multiglazed windows or doors, heat absorbing or
1-26 heat reflective glazed and coated window or door systems, or other
1-27 window or door system modifications that reduce energy consumption;
1-28 (3) automatic energy control systems, including
1-29 computer software and technical data licenses;
1-30 (4) heating, ventilating, or air-conditioning system
1-31 modifications or replacements that reduce energy or water
1-32 consumption;
1-33 (5) lighting fixtures that increase energy efficiency;
1-34 (6) energy recovery systems;
1-35 (7) electric systems improvements; [or]
1-36 (8) water-conserving fixtures, appliances, and
1-37 equipment or the substitution of non-water-using fixtures,
1-38 appliances, and equipment;
1-39 (9) water-conserving landscape irrigation equipment;
1-40 (10) landscaping measures that reduce watering demands
1-41 and capture and hold applied water and rainfall, including:
1-42 (A) landscape contouring, including the use of
1-43 berms, swales, and terraces; and
1-44 (B) the use of soil amendments that increase the
1-45 water-holding capacity of the soil, including compost;
1-46 (11) rainwater harvesting equipment and equipment to
1-47 make use of water collected as part of a storm-water system
1-48 installed for water quality control;
1-49 (12) equipment for recycling or reuse of water
1-50 originating on the premises or from other sources, including
1-51 treated municipal effluent;
1-52 (13) equipment needed to capture water from
1-53 nonconventional, alternate sources, including air conditioning
1-54 condensate or graywater, for nonpotable uses;
1-55 (14) metering equipment needed to segregate water use
1-56 in order to identify water conservation opportunities or verify
1-57 water savings; or
1-58 (15) other energy or water conservation-related
1-59 improvements or equipment (including improvements or equipment
1-60 relating to renewable energy or nonconventional water sources or
1-61 water reuse).
1-62 (c) All energy or water conservation measures must comply
1-63 with current local, state, and federal construction, plumbing, and
1-64 environmental codes and regulations. Notwithstanding anything to
2-1 the contrary in Subsection (b), a contract for energy or water
2-2 conservation measures shall not include improvements or equipment
2-3 that allow or cause water from any condensing, cooling, or
2-4 industrial process or any system of nonpotable usage over which the
2-5 public water supply system officials do not have sanitary control,
2-6 to be returned to the potable water supply.
2-7 (d) The person with whom the board contracts must be
2-8 experienced in the design, implementation, and installation of the
2-9 energy or water conservation measures addressed by the contract.
2-10 (e) Before entering into a contract for energy or water
2-11 conservation measures, the board shall require the provider of the
2-12 energy or water conservation measures to file with the board a
2-13 payment and performance bond relating to the installation of energy
2-14 or water conservation measures that is in an amount the board finds
2-15 reasonable and necessary to protect the interests of the school
2-16 district and that may also cover the value of the guaranteed
2-17 savings on the contract and is conditioned on the faithful
2-18 execution of the terms of the contract.
2-19 (f) Energy or water conservation measures with respect to
2-20 existing buildings or facilities may be financed:
2-21 (1) under a lease/purchase contract that has a term
2-22 not to exceed 15 years from the final date of installation and that
2-23 meets federal tax requirements for tax-free municipal leasing or
2-24 long-term financing;
2-25 (2) with the proceeds of bonds; or
2-26 (3) under a contract with the provider of the energy
2-27 or water conservation measures that has a term not to exceed 15
2-28 years from the final date of installation.
2-29 (g) A contract for energy or water conservation measures
2-30 shall contain provisions pursuant to which the provider of the
2-31 energy or water conservation measures guarantees the amount of the
2-32 savings to be realized by the school district under the contract.
2-33 If the term of a contract for energy or water conservation measures
2-34 exceeds one year, the school district's contractual obligations in
2-35 any one year during the term of the contract beginning after the
2-36 final date of installation may not exceed the total energy, water,
2-37 wastewater, and operating cost savings, including but not limited
2-38 to electrical, gas, water, wastewater, or other utility cost
2-39 savings and operating cost savings resulting from automatic
2-40 monitoring and control as determined by the school district in this
2-41 subsection, divided by the number of years in the contract term.
2-42 SECTION 3. The heading to Section 51.927, Education Code, is
2-43 amended to read as follows:
2-44 Sec. 51.927. ENERGY OR WATER CONSERVATION MEASURES.
2-45 SECTION 4. Subsections (a) through (h) and (l), Section
2-46 51.927, Education Code, are amended to read as follows:
2-47 (a) The governing board of an institution of higher
2-48 education may enter into a contract for energy or water
2-49 conservation measures to reduce energy or water consumption or
2-50 operating costs of institutional facilities in accordance with this
2-51 section.
2-52 (b) A contract to which this section applies includes a
2-53 contract for the installation of:
2-54 (1) insulation of a building structure and systems
2-55 within a building;
2-56 (2) storm windows or [of] doors, caulking or weather
2-57 stripping, multiglazed windows or doors, heat-absorbing or
2-58 heat-reflective glazed and coated window or door systems, or other
2-59 window or door system modifications that reduce energy consumption;
2-60 (3) automatic energy control systems, including
2-61 computer software and technical data licenses;
2-62 (4) heating, ventilating, or air conditioning system
2-63 modifications or replacements that reduce energy or water
2-64 consumption;
2-65 (5) lighting fixtures that increase energy efficiency;
2-66 (6) energy recovery systems;
2-67 (7) electric systems improvements; [or]
2-68 (8) water-conserving fixtures, appliances, and
2-69 equipment or the substitution of non-water-using fixtures,
3-1 appliances, and equipment;
3-2 (9) water-conserving landscape irrigation equipment;
3-3 (10) landscaping measures that reduce watering demands
3-4 and capture and hold applied water and rainfall, including:
3-5 (A) landscape contouring, including the use of
3-6 berms, swales, and terraces; and
3-7 (B) the use of soil amendments that increase the
3-8 water-holding capacity of the soil, including compost;
3-9 (11) rainwater harvesting equipment and equipment to
3-10 make use of water collected as part of a storm-water system
3-11 installed for water quality control;
3-12 (12) equipment for recycling or reuse of water
3-13 originating on the premises or from other sources, including
3-14 treated municipal effluent;
3-15 (13) equipment needed to capture water from
3-16 nonconventional, alternate sources, including air conditioning
3-17 condensate or graywater, for nonpotable uses;
3-18 (14) metering equipment needed to segregate water use
3-19 in order to identify water conservation opportunities or verify
3-20 water savings; or
3-21 (15) other energy or water conservation-related
3-22 improvements or equipment (including improvements or equipment
3-23 related to renewable energy or nonconventional water sources or
3-24 water reuse).
3-25 (c) All energy or water conservation measures must comply
3-26 with current local, state, and federal construction, plumbing, and
3-27 environmental codes and regulations. Notwithstanding anything to
3-28 the contrary in Subsection (b), a contract for energy or water
3-29 conservation measures shall not include improvements or equipment
3-30 that allow or cause water from any condensing, cooling, or
3-31 industrial process or any system of nonpotable usage over which the
3-32 public water supply system officials do not have sanitary control,
3-33 to be returned to the potable water supply.
3-34 (d) The entity with whom the board contracts must be
3-35 experienced in the design, implementation, and installation of the
3-36 energy or water conservation measures addressed by the contract.
3-37 (e) Before entering into a contract for energy or water
3-38 conservation measures, the board shall require the provider of the
3-39 energy or water conservation measures to file with the board a
3-40 payment and performance bond that is in an amount the board finds
3-41 reasonable and necessary to protect the interests of the
3-42 institution and is conditioned on the faithful execution of the
3-43 terms of the contract.
3-44 (f) The board may enter into a contract for a period of more
3-45 than one year for energy or water conservation measures with an
3-46 entity if the board finds that the amount the institution would
3-47 spend on the energy or water conservation measures will not exceed
3-48 the amount to be saved in energy, water, wastewater, and operating
3-49 costs over 15 years from the date of installation. If the term of
3-50 a contract for energy or water conservation measures exceeds one
3-51 year, the board's contractual obligation in any year during the
3-52 term of the contract beginning after the final date of installation
3-53 may not exceed the total energy, water, wastewater, and operating
3-54 cost savings, including but not limited to electrical, gas, water,
3-55 wastewater, or other utility cost savings and operating cost
3-56 savings resulting from automatic monitoring and control, as
3-57 determined by the board in this subsection, divided by the number
3-58 of years in the contract term beginning after the final date of
3-59 installation. The board shall consider all costs of the energy or
3-60 water conservation measures, including costs of design,
3-61 engineering, installation, maintenance, repairs, and debt service.
3-62 (g) Energy or water conservation measures may be financed:
3-63 (1) under a lease/purchase contract that has a term
3-64 not to exceed 15 years from the final date of installation and that
3-65 meets federal tax requirements for tax-free municipal leasing or
3-66 long-term financing;
3-67 (2) with the proceeds of bonds; or
3-68 (3) under a contract with the provider of the energy
3-69 or water conservation measures that has a term not to exceed 15
4-1 years from the final date of installation.
4-2 (h) A contract for energy or water conservation measures
4-3 shall contain provisions pursuant to which the provider of the
4-4 energy or water conservation measures guarantees the amount of the
4-5 savings to be realized by the institution of higher education under
4-6 the contract. The Master Equipment Lease Purchase Program operated
4-7 by the Texas Public Finance Authority may be utilized by an
4-8 institution to fund a contract for energy or water conservation
4-9 measures so long as the costs of the energy or water conservation
4-10 measures, including costs of design, engineering, installation,
4-11 maintenance, repairs, and anticipated debt service requirements of
4-12 the Master Equipment Lease Purchase Program, do not exceed the
4-13 total energy and operating cost savings, as described in Subsection
4-14 (f), beginning after the final date of installation.
4-15 (l) The legislature shall base an institution's
4-16 appropriation for energy, water, and wastewater costs during a
4-17 fiscal year on the sum of:
4-18 (1) the institution's estimated energy, water, and
4-19 wastewater costs for that fiscal year; and
4-20 (2) if a contract under this section is in effect, the
4-21 institution's estimated net savings resulting from the contract
4-22 during the contract term, divided by the number of years in the
4-23 contract term.
4-24 SECTION 5. The heading to Chapter 302, Local Government
4-25 Code, is amended to read as follows:
4-26 CHAPTER 302. ENERGY OR WATER CONSERVATION MEASURES
4-27 FOR LOCAL GOVERNMENTS
4-28 SECTION 6. Sections 302.001 through 302.004, Local
4-29 Government Code, are amended to read as follows:
4-30 Sec. 302.001. DEFINITION. In this chapter, "local
4-31 government" means a county, municipality, or other political
4-32 subdivision of this state. The term local government does not
4-33 include a school district authorized to enter into a contract for
4-34 energy or water conservation measures under Section 44.901,
4-35 Education Code.
4-36 Sec. 302.002. ENERGY OR WATER CONSERVATION MEASURES.
4-37 (a) The governing body of a local government may enter into a
4-38 contract for energy or water conservation measures to reduce energy
4-39 or water consumption or operating costs of governmental facilities
4-40 in accordance with this chapter.
4-41 (b) A contract authorized under this chapter includes a
4-42 contract for the installation of:
4-43 (1) insulation of the building structure and systems
4-44 within the building;
4-45 (2) storm windows or doors, caulking or weather
4-46 stripping, multiglazed windows or doors, heat-absorbing or
4-47 heat-reflective glazed and coated window or door systems, or other
4-48 window or door system modifications that reduce energy consumption;
4-49 (3) automatic energy control systems, including
4-50 computer software and technical data licenses;
4-51 (4) heating, ventilating, or air conditioning system
4-52 modifications or replacements that reduce energy or water
4-53 consumption;
4-54 (5) lighting fixtures that increase energy efficiency;
4-55 (6) energy recovery systems;
4-56 (7) electric systems improvements; [or]
4-57 (8) water-conserving fixtures, appliances, and
4-58 equipment or the substitution of non-water-using fixtures,
4-59 appliances, and equipment;
4-60 (9) water-conserving landscape irrigation equipment;
4-61 (10) landscaping measures that reduce watering demands
4-62 and capture and hold applied water and rainfall, including:
4-63 (A) landscape contouring, including the use of
4-64 berms, swales, and terraces; and
4-65 (B) the use of soil amendments that increase the
4-66 water-holding capacity of the soil, including compost;
4-67 (11) rainwater harvesting equipment and equipment to
4-68 make use of water collected as part of a storm-water system
4-69 installed for water quality control;
5-1 (12) equipment for recycling or reuse of water
5-2 originating on the premises or from other sources, including
5-3 treated municipal effluent;
5-4 (13) equipment needed to capture water from
5-5 nonconventional, alternate sources, including air conditioning
5-6 condensate or graywater, for nonpotable uses;
5-7 (14) metering equipment needed to segregate water use
5-8 in order to identify water conservation opportunities or verify
5-9 water savings; or
5-10 (15) other energy or water conservation-related
5-11 [energy-conservation-related] improvements or equipment (including
5-12 improvements or equipment related to renewable energy or
5-13 nonconventional water sources or water reuse).
5-14 (c) All energy or water conservation measures must comply
5-15 with current local, state, and federal construction, plumbing, and
5-16 environmental codes and regulations. Notwithstanding anything to
5-17 the contrary in Subsection (b), a contract for energy or water
5-18 conservation measures shall not include improvements or equipment
5-19 that allow or cause water from any condensing, cooling, or
5-20 industrial process or any system of nonpotable usage over which
5-21 public water supply system officials do not have sanitary control
5-22 to be returned to the potable water supply.
5-23 Sec. 302.003. PAYMENT AND PERFORMANCE BOND. Notwithstanding
5-24 any other law to the contrary, before entering into a contract for
5-25 energy or water conservation measures, the governing body of the
5-26 local government may, at its option:
5-27 (1) require the provider of the energy or water
5-28 conservation measures to file with the governing body a payment and
5-29 performance bond relating to the installation of energy or water
5-30 conservation measures that is in an amount the governing body finds
5-31 reasonable and necessary to protect the interests of the local
5-32 government and that may also cover the value of the guaranteed
5-33 savings on the contract and is conditioned on the faithful
5-34 execution of the terms of the contract; or
5-35 (2) choose not to require a payment and performance
5-36 bond in connection with the contract.
5-37 Sec. 302.004. METHOD OF FINANCING; TERMS OF CONTRACT.
5-38 (a) Energy or water conservation measures with respect to existing
5-39 buildings or facilities may be financed:
5-40 (1) under a lease-purchase contract that has a term
5-41 not to exceed 15 years from the final date of installation and that
5-42 meets federal tax requirements for tax-free municipal leasing or
5-43 long-term financing;
5-44 (2) with the proceeds of bonds; or
5-45 (3) under a contract with the provider of the energy
5-46 or water conservation measures that has a term not to exceed 15
5-47 years from the final date of installation.
5-48 (b) The contract shall contain provisions pursuant to which
5-49 the provider of the energy or water conservation measures
5-50 guarantees the amount of the savings to be realized by the local
5-51 government under the contract. If the term of a contract for
5-52 energy or water conservation measures exceeds one year, the local
5-53 government's contractual obligations in any one year during the
5-54 term of the contract beginning after the final date of installation
5-55 may not exceed the total energy, water, wastewater, and operating
5-56 cost savings, including but not limited to electrical, gas, water,
5-57 wastewater, or other utility cost savings and operating cost
5-58 savings resulting from automatic monitoring and control as
5-59 determined by the local government in this subsection, divided by
5-60 the number of years in the contract term.
5-61 SECTION 7. Section 2166.402, Government Code, is amended to
5-62 read as follows:
5-63 Sec. 2166.402. ENERGY OR WATER CONSERVATION STANDARDS FOR
5-64 ENTITIES OTHERWISE EXCLUDED FROM CHAPTER. (a) The governing body
5-65 of a state agency, commission, or institution that is exempt from
5-66 this chapter under Section 2166.003 shall adopt and publish energy
5-67 or water conservation design standards as provided by Section
5-68 447.004 for a new building under the entity's authority. The
5-69 standards must be:
6-1 (1) consistent with those adopted by the commission
6-2 for other state buildings; and
6-3 (2) prepared in cooperation and consultation with the
6-4 state energy conservation [management center of the governor's]
6-5 office.
6-6 (b) The state energy conservation [management center of the
6-7 governor's] office shall assist a governing body of a state agency,
6-8 commission, or institution subject to Subsection (a) in preparing
6-9 energy conservation standards by providing technical assistance and
6-10 advice.
6-11 (c) The Texas Water Development Board shall assist the
6-12 governing body of a state agency, commission, or institution
6-13 described by Subsection (a) in preparing water conservation
6-14 standards by providing technical assistance and advice.
6-15 SECTION 8. The heading to Section 2166.406, Government Code,
6-16 is amended to read as follows:
6-17 Sec. 2166.406. ENERGY OR WATER CONSERVATION MEASURES.
6-18 SECTION 9. Subsections (a) through (h), (l), and (m),
6-19 Section 2166.406, Government Code, are amended to read as follows:
6-20 (a) Notwithstanding any other provisions of this chapter,
6-21 the governing body of a state agency, without the consent of the
6-22 commission, may enter into a contract for energy conservation
6-23 measures to reduce energy or water consumption or operating costs
6-24 of governmental facilities in accordance with this section.
6-25 (b) A contract authorized under this section includes a
6-26 contract for the installation of:
6-27 (1) insulation of the building structure and systems
6-28 within the building;
6-29 (2) storm windows or doors, caulking or weather
6-30 stripping, multiglazed windows or doors, heat absorbing or heat
6-31 reflective glazed and coated window or door systems, or other
6-32 window or door system modifications that reduce energy consumption;
6-33 (3) automatic energy control systems, including
6-34 computer software and technical data licenses;
6-35 (4) heating, ventilating, or air-conditioning system
6-36 modifications or replacements that reduce energy or water
6-37 consumption;
6-38 (5) lighting fixtures that increase energy efficiency;
6-39 (6) energy recovery systems;
6-40 (7) electric systems improvements; [or]
6-41 (8) water-conserving fixtures, appliances, and
6-42 equipment or the substitution of non-water-using fixtures,
6-43 appliances, and equipment;
6-44 (9) water-conserving landscape irrigation equipment;
6-45 (10) landscaping measures that reduce watering demands
6-46 and capture and hold applied water and rainfall, including:
6-47 (A) landscape contouring, including the use of
6-48 berms, swales, and terraces; and
6-49 (B) the use of soil amendments that increase the
6-50 water-holding capacity of the soil, including compost;
6-51 (11) rainwater harvesting equipment and equipment to
6-52 make use of water collected as part of a storm-water system
6-53 installed for water quality control;
6-54 (12) equipment for recycling or reuse of water
6-55 originating on the premises or from other sources, including
6-56 treated municipal effluent;
6-57 (13) equipment needed to capture water from
6-58 nonconventional, alternate sources, including air conditioning
6-59 condensate or graywater, for nonpotable uses;
6-60 (14) metering equipment needed to segregate water use
6-61 in order to identify water conservation opportunities or verify
6-62 water savings; or
6-63 (15) other energy or water conservation-related
6-64 improvements or equipment (including improvements or equipment
6-65 related to renewable energy or nonconventional water sources or
6-66 water reuse).
6-67 (c) All energy or water conservation measures must comply
6-68 with current local, state, and federal construction, plumbing, and
6-69 environmental codes and regulations. Notwithstanding anything to
7-1 the contrary in Subsection (b), a contract for energy or water
7-2 conservation measures shall not include improvements or equipment
7-3 that allow or cause water from any condensing, cooling, or
7-4 industrial process or any system of nonpotable usage over which the
7-5 public water supply system officials do not have sanitary control
7-6 to be returned to the potable water supply.
7-7 (d) The entity with whom the board contracts must be
7-8 experienced in the design, implementation, and installation of the
7-9 energy or water conservation measures addressed by the contract.
7-10 (e) Before entering into a contract for energy or water
7-11 conservation measures, the governing body of the state agency shall
7-12 require the provider of the energy or water conservation measures
7-13 to file with the governing body a payment and performance bond that
7-14 is in an amount the governing body finds reasonable and necessary
7-15 to protect the interests of the state agency and that is
7-16 conditioned on the faithful execution of the terms of the contract.
7-17 (f) The state agency may enter into a contract for a period
7-18 of more than one year for energy or water conservation measures
7-19 with an entity if the state agency finds that the amount the state
7-20 agency would spend on the energy or water conservation measures
7-21 will not exceed the amount to be saved in energy, water,
7-22 wastewater, and operating costs over 15 years from the date of
7-23 installation.
7-24 (g) Energy or water conservation measures with respect to
7-25 existing buildings or facilities may be financed:
7-26 (1) under a lease/purchase contract that has a term
7-27 not to exceed 15 years from the final date of installation and that
7-28 meets federal tax requirements for tax-free municipal leasing or
7-29 long-term financing;
7-30 (2) with the proceeds of bonds; or
7-31 (3) under a contract with the provider of the energy
7-32 or water conservation measures that has a term not to exceed 15
7-33 years from the final date of installation.
7-34 (h) A contract for energy or water conservation measures
7-35 shall contain provisions pursuant to which the provider of the
7-36 energy or water conservation measures guarantees the amount of the
7-37 savings to be realized by the state agency under the contract. If
7-38 the term of a contract for energy or water conservation measures
7-39 exceeds one year, the agency's contractual obligation in any year
7-40 during the term of the contract beginning after the final date of
7-41 installation may not exceed the total energy, water, wastewater,
7-42 and operating cost savings, including but not limited to
7-43 electrical, gas, water, wastewater, or other utility cost savings
7-44 and operating cost savings resulting from automatic monitoring and
7-45 control, as determined by the state agency in this subsection,
7-46 divided by the number of years in the contract term.
7-47 (l) To obtain the best final offers, the state agency may
7-48 allow proposal revisions after submissions and before the award of
7-49 a [the] contract for energy or water conservation measures. Final
7-50 review and approval of the contract will be provided by the State
7-51 Energy Conservation Office.
7-52 (m) The legislature shall base an agency's appropriation for
7-53 energy, water, and wastewater costs during a fiscal year on the sum
7-54 of:
7-55 (1) the agency's estimated energy, water, and
7-56 wastewater costs for that fiscal year; and
7-57 (2) if a contract under this section is in effect, the
7-58 agency's estimated net savings resulting from the contract during
7-59 the contract term, divided by the number of years in the contract
7-60 term.
7-61 SECTION 10. Chapter 447, Government Code, is amended to read
7-62 as follows:
7-63 CHAPTER 447. STATE ENERGY CONSERVATION OFFICE [MANAGEMENT
7-64 CENTER]
7-65 Sec. 447.001. ESTABLISHMENT OF OFFICE [CENTER]. The state
7-66 energy conservation office [management center] is established in
7-67 the General Services Commission and shall be authorized to promote
7-68 those policies of the state enumerated in this chapter.
7-69 Sec. 447.002. INFORMATION; RULES; PROGRAMS. The state
8-1 energy conservation office [management center] shall develop and
8-2 provide energy and water conservation information for the state.
8-3 The office [center] may make rules relating to the adoption and
8-4 implementation of energy and water conservation programs applicable
8-5 to state buildings and facilities. The office [center] may act in
8-6 such other capacities as otherwise authorized by state or federal
8-7 law. The office's [center's] rules for programs and energy and
8-8 water conservation, adopted under Chapter 2001, may include
8-9 provisions relating to the retrofitting of existing state
8-10 structures with energy-saving and water-saving devices and to the
8-11 energy-related and water-related renovation of such structures. To
8-12 the extent that the office of the governor receives money
8-13 appropriated for energy and water efficiency programs, the office
8-14 of the governor, through the state energy conservation office
8-15 [management center], shall implement programs that the state energy
8-16 conservation office [center] identifies as encouraging energy and
8-17 water conservation by state government. Unless money is available
8-18 for the implementation of such a program, a state agency is not
8-19 required to spend money for an energy or water conservation program
8-20 under this section. The state energy conservation office shall
8-21 coordinate all water conservation-related activities with the Texas
8-22 Water Development Board. The Texas Water Development Board shall
8-23 evaluate and help develop all proposed water conservation and reuse
8-24 requirements and provide training and expertise to the staff of the
8-25 state energy conservation office regarding water conservation
8-26 issues.
8-27 Sec. 447.003. LIAISON TO FEDERAL GOVERNMENT. The state
8-28 energy conservation office [management center] shall serve as the
8-29 state liaison to the federal government for the implementation and
8-30 administration of federal programs relating to state agency energy
8-31 and water matters. In that capacity, the office [center] shall
8-32 administer state programs established under:
8-33 (1) Part D, Title III, Energy Policy and Conservation
8-34 Act (42 U.S.C. 6321 et seq.);
8-35 (2) Part G, Title III, Energy Policy and Conservation
8-36 Act (42 U.S.C. 6371 et seq.); and
8-37 (3) [the National Energy Extension Service Act (42
8-38 U.S.C. 7001 et seq.); and]
8-39 [(4)] other federal energy and water conservation
8-40 programs as may be assigned to the state energy conservation office
8-41 [management center] by the governor or legislature.
8-42 Sec. 447.004. DESIGN STANDARDS. (a) The state energy
8-43 conservation office [management center] shall adopt and publish
8-44 energy and water conservation design standards, under Chapter 2001,
8-45 that all new state buildings and major renovation projects,
8-46 including buildings and major renovation projects of
8-47 state-supported institutions of higher education, are required to
8-48 meet. The office [center] shall define what constitutes a major
8-49 renovation project under this section and shall review and update
8-50 the standards biennially.
8-51 (b) The standards must include performance and procedural
8-52 standards for the maximum energy and water conservation allowed by
8-53 the latest and most cost-effective technology that is consistent
8-54 with the requirements of public health, safety, and economic
8-55 resources.
8-56 (c) The standards must be adopted in terms of energy and
8-57 water consumption levels and must take into consideration the
8-58 various classes of building uses and must allow for design
8-59 flexibility. Procedural standards must be directed toward specific
8-60 design and building practices that produce good thermal resistance
8-61 and low infiltration and toward requiring practices in the design
8-62 of mechanical and electrical systems that maximize energy and water
8-63 efficiency. The procedural standards must concern, as applicable:
8-64 (1) insulation;
8-65 (2) lighting;
8-66 (3) ventilation;
8-67 (4) climate control;
8-68 (5) water-conserving fixtures, appliances, and
8-69 equipment or the substitution of non-water-using fixtures,
9-1 appliances, and equipment;
9-2 (6) water-conserving landscape irrigation equipment;
9-3 (7) landscaping measures that reduce watering demands
9-4 and capture and hold applied water and rainfall, including:
9-5 (A) landscape contouring, including the use of
9-6 berms, swales, and terraces; and
9-7 (B) the use of soil amendments that increase the
9-8 water-holding capacity of the soil, including compost;
9-9 (8) rainwater harvesting equipment and equipment to
9-10 make use of water collected as part of a storm-water system
9-11 installed for water quality control;
9-12 (9) equipment for recycling or reuse of water
9-13 originating on the premises or from other sources, including
9-14 treated municipal effluent;
9-15 (10) equipment needed to capture water from
9-16 nonconventional, alternate sources, including air conditioning
9-17 condensate or graywater, for nonpotable uses;
9-18 (11) metering equipment needed to segregate water use
9-19 in order to identify water conservation opportunities or verify
9-20 water savings;
9-21 (12) special energy and water requirements of
9-22 health-related facilities of higher education and state agencies;
9-23 and
9-24 (13) [(6)] any other item that the office [center]
9-25 considers appropriate that is adopted under Chapter 2001.
9-26 (d) In order to demonstrate compliance with the requirement
9-27 to adopt and update the conservation design standards, each agency
9-28 and institution of higher education shall submit a copy of its
9-29 design and construction manuals to the office [center] on request.
9-30 (e) Prior to construction, agencies and institutions of
9-31 higher education shall have the design architect or engineer on the
9-32 project certify to the agency or institution, with a copy to the
9-33 state energy conservation office [management center], that all new
9-34 building construction and major building renovation projects comply
9-35 with the energy and water conservation design standards required
9-36 under this section.
9-37 Sec. 447.005. ENERGY AND WATER EFFICIENCY PROJECTS. Subject
9-38 to applicable state and federal laws or guidelines, the state
9-39 energy conservation office [management center] may implement energy
9-40 and water efficiency projects at state agencies or may assist those
9-41 agencies in implementing the projects through energy and water
9-42 efficiency programs financed through state or federal grants or
9-43 loans.
9-44 Sec. 447.006. OBTAINING DATA. The state energy conservation
9-45 office [management center] shall obtain semiannually from each
9-46 state agency information relating to the cost of heating and
9-47 cooling buildings owned by the state.
9-48 Sec. 447.007. MODEL CODES. The state energy conservation
9-49 office [management center] may recommend model energy and water
9-50 conservation building codes to municipalities for use in enacting
9-51 or amending municipal ordinances.
9-52 Sec. 447.008. ADDITIONAL ENERGY AND WATER SERVICES.
9-53 (a) The state energy conservation office [management center] may
9-54 provide additional energy and water services, including:
9-55 (1) training of designated state employees in energy
9-56 and water management, energy-accounting techniques,
9-57 water-accounting techniques, and energy-efficient and
9-58 water-efficient [energy efficient] design and construction;
9-59 (2) technical assistance regarding energy-efficient
9-60 and water-efficient [energy efficient] capital improvements,
9-61 energy-efficient and water-efficient [energy efficient] building
9-62 design, and cogeneration and thermal storage investments;
9-63 (3) technical assistance to the State Auditor and to
9-64 state agencies regarding conducting energy and water management
9-65 performance audits and monitoring of utility bills to detect
9-66 billing errors;
9-67 (4) technical assistance to state agencies regarding
9-68 third-party financing of energy-efficient and water-efficient
9-69 [energy efficient] capital improvement projects; and
10-1 (5) other energy-related and water-related assistance
10-2 requested by agencies, other legislatively created entities of the
10-3 state, institutions of higher education, and consortiums of
10-4 institutions of higher education that the office [center] considers
10-5 appropriate.
10-6 (b) Using available state, federal, or oil overcharge funds,
10-7 the state energy conservation office [management center] may assist
10-8 state agencies and institutions of higher education in analyzing
10-9 and negotiating rates for electricity and natural gas supplies from
10-10 locally certificated electric suppliers, natural gas suppliers, or
10-11 state-owned energy and water resources, including transportation
10-12 charges for natural gas. The provisions of this section shall not
10-13 be construed to empower the state energy conservation office
10-14 [management center] to negotiate rates for natural gas supplies on
10-15 behalf of state agencies or institutions but rather to provide
10-16 technical assistance as needed.
10-17 (c) Agencies and institutions of higher education may seek
10-18 the assistance of the state energy conservation office [management
10-19 center] before negotiating or contracting for the supply and
10-20 transportation of natural gas and electricity that will result in
10-21 an anticipated annual expenditure of more than $100,000.
10-22 (d) Any state agency or institution of higher education with
10-23 expertise in rate analysis, negotiation, or any other matter
10-24 related to the procurement of electricity and natural gas supplies
10-25 from locally certificated electric suppliers, natural gas
10-26 suppliers, or state-owned energy and water resources may assist the
10-27 state energy conservation office [management center] whenever
10-28 practicable. The attorney general on request shall assist the
10-29 state energy conservation office [management center] and other
10-30 state agencies and institutions of higher education in negotiating
10-31 rates for electricity and other terms of electric utility service.
10-32 (e) Using available funds from any source where permitted,
10-33 the state energy conservation office [management center] may assist
10-34 state agencies, legislatively created entities of the state,
10-35 institutions of higher education, and consortiums of institutions
10-36 of higher education to further the goals and pursue the policies of
10-37 the state in energy and water research as may be determined by the
10-38 governor or the legislature. The state energy conservation office
10-39 [management center] may assist state agencies, which are hereby
10-40 authorized to act in accordance with this section, in implementing
10-41 federal energy and water policy as expressed in Pub. L. No.
10-42 102-486, 106 Stat. 2776 (1992).
10-43 (f) The state energy conservation office [management center]
10-44 on request may negotiate rates for electricity and other terms of
10-45 electric utility service for a state agency or institution of
10-46 higher education. The state energy conservation office [management
10-47 center] may also negotiate the rates and the other terms of service
10-48 for a group of agencies and institutions together in a single
10-49 contract.
10-50 (g) The state energy conservation office [management center]
10-51 shall analyze the rates for electricity charged to and the amount
10-52 of electricity used by state agencies and institutions of higher
10-53 education to determine ways the state could obtain lower rates and
10-54 use less electricity. State agencies, including the Public Utility
10-55 Commission of Texas, and institutions of higher education shall
10-56 assist the state energy conservation office [management center] in
10-57 obtaining the information the office [center] requires to perform
10-58 its analysis.
10-59 (h) The state energy conservation office [management center]
10-60 and the attorney general shall cooperate in monitoring efforts to
10-61 deregulate the electric utility industry and in reporting on the
10-62 ways in which deregulation would affect state government as a
10-63 purchaser of electricity. The state energy conservation office
10-64 [management center], represented by the attorney general, may
10-65 intervene in proceedings before the Public Utility Commission of
10-66 Texas that are related to deregulating all or part of the electric
10-67 utility industry to represent the interests of state government as
10-68 a purchaser of electricity in those proceedings.
10-69 Sec. 447.009. ENERGY AND WATER AUDITS. (a) The state
11-1 energy conservation office [management center] shall conduct audits
11-2 of state-owned buildings used by state agencies. The audits shall
11-3 be designed to assist state agencies in reducing energy and water
11-4 consumption and costs through improved energy and water efficiency.
11-5 (b) Based on the audit performed under Subsection (a) of
11-6 this section, the office of the governor may recommend changes to
11-7 improve energy and water efficiency.
11-8 (c) The state energy conservation office [management center]
11-9 may provide training, technical assistance, and funding, if
11-10 available, to the State Auditor's office or the office charged with
11-11 performing management audits of state agencies to conduct energy
11-12 and water management audits in state agencies and institutions of
11-13 higher education.
11-14 (d) State agencies and institutions of higher education
11-15 shall conduct reviews and audits of utility billings and contracts
11-16 to detect billing errors. Contracts with private sector firms must
11-17 comply with all applicable provisions of Chapter 2254 [654]
11-18 regarding professional services contracts and may not be awarded on
11-19 a contingent fee basis unless a finding that the contract is
11-20 necessary, reasonable, and prudent is obtained from the office of
11-21 the governor.
11-22 Sec. 447.010. ENERGY-SAVING AND WATER-SAVING DEVICES OR
11-23 MEASURES. (a) On approval by the state energy conservation office
11-24 [management center], a state agency that reduces its energy or
11-25 water expenses may use any funds saved by the agency from
11-26 appropriated utility funds for the purchase of energy-saving or
11-27 water-saving devices or measures. For purposes of this section,
11-28 "energy-saving or water-saving device or measure" means a device or
11-29 measure that directly reduces energy or water costs or the
11-30 consumption of a lighting, heating, ventilating, or air
11-31 conditioning system or of other equipment that uses electricity,
11-32 natural gas, fuel oil, or any other energy or water source without
11-33 materially altering the quality of such lighting, heating,
11-34 ventilating, air conditioning, or other energy or water consuming
11-35 system.
11-36 (b) A state agency, in accordance with the recommendations
11-37 of an energy and water audit, may purchase energy-saving and
11-38 water-saving devices or measures from appropriated utility funds if
11-39 the savings in utility funds projected by the audit will offset the
11-40 purchase within four years. A copy of the recommendation and
11-41 repayment schedule must be attached to the purchase voucher as
11-42 evidence of the projected savings.
11-43 Sec. 447.011. ENERGY AND WATER MANAGEMENT PLANNING.
11-44 (a) The state energy conservation office [management center] shall
11-45 provide energy and water management planning assistance to state
11-46 agencies and institutions of higher education, including:
11-47 (1) preparation of a long-range plan for the delivery
11-48 of reliable, cost-effective utility services for state agencies,
11-49 institutions of higher education, boards, and commissions in Travis
11-50 County. This plan shall be presented to the affected agencies for
11-51 use in preparing their five-year construction and major
11-52 rehabilitation plans. After other energy-saving and water-saving
11-53 alternatives are considered, district heating and cooling and
11-54 on-site generation of electricity may be considered in planning for
11-55 reliable, efficient, and cost-effective utility services;
11-56 (2) assistance to the Department of Public Safety for
11-57 energy and water emergency contingency planning, using state or
11-58 federal funds when available; and
11-59 (3) assistance to state agencies and institutions of
11-60 higher education in preparing comprehensive energy and water
11-61 management plans. The state energy conservation office [management
11-62 center] shall prepare guidelines for the preparation of these
11-63 plans. State agencies and institutions of higher education that
11-64 expend more than $250,000 annually for heating, lighting, and
11-65 cooling and that occupy state-owned buildings shall prepare and
11-66 submit a five-year energy and water management plan to the office
11-67 [center]. Agencies and institutions of higher education with
11-68 smaller usage may be required to submit such plans. Updated plans
11-69 shall be submitted biennially when requested by the office
12-1 [center].
12-2 (b) The energy and water management plan required in
12-3 Subsection (a)(3) shall be included in the five-year construction
12-4 and major rehabilitation plans for institutions of higher education
12-5 as required under Sections [Section] 61.058 and 61.0651, Education
12-6 Code.
12-7 SECTION 11. This Act takes effect September 1, 2001.
12-8 * * * * *