By:  Ellis                                                        S.B. No. 1654


A BILL TO BE ENTITLED

AN ACT

relating to state agency utility savings and capital expenditure 
reductions.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 2166, Government Code, is amended by 
adding Section 2166.555 to read as follows:
	Sec. 2166.555  UTILITY SAVINGS AND CAPITAL EXPENDITURE 
REDUCTION FOR STATE AGENCIES.
	(a)  Before authorizing expenditures for capital items, an 
agency must determine that the items could not be funded through a 
contract for energy conservation measures to reduce energy or water 
consumption or operating costs of governmental facilities that 
guarantees utility savings.
	(b)  An agency shall consider utility cost savings generated 
by all departments as potential methods to finance capital 
expenditures throughout the agency.  Savings in utility cost from 
one department may be used to finance capital expenditures in other 
departments provided the expenditures are part of a through a 
contract for energy conservation measures to reduce energy or water 
consumption or operating costs of governmental facilities that 
guarantees utility savings.
	(c)  An agency shall provide the Legislative Budget Board 
with justification for any capital expenditures that are not part 
of a contract for energy conservation measures to reduce energy or 
water consumption or operating costs of governmental facilities 
that guarantees utility savings.
	SECTION 2.  This Act takes effect September 1, 2003.