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                                 * * * * *