By: Ellis S.B. No. 1973

(In the Senate - Filed March 12, 2009; March 24, 2009, read first time and referred to Committee on Government Organization; April 7, 2009, reported adversely, with favorable Committee Substitute by the following vote: Yeas 6, Nays 0; April 7, 2009, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 1973 By: Ellis

A BILL TO BE ENTITLED

AN ACT

relating to the creation and duties of the state energy savings performance contract advisory council.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subtitle D, Title 10, Government Code, is amended by adding Chapter 2178 to read as follows:

CHAPTER 2178. STATE ENERGY SAVINGS PERFORMANCE CONTRACT

ADVISORY COUNCIL

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 2178.001. DEFINITIONS. In this chapter:

(1) "Advisory council" means the state energy savings performance contract advisory council.

(2) "Energy savings" means an estimated reduction in net fuel costs, energy costs, water costs, storm-water fees, other utility costs, or related net operating costs from, or as compared to, an established baseline of those costs. The term does not include an estimated reduction due to a decrease in energy rates that is not derived from increased conservation or reduced usage.

(3) "Energy savings performance contract" means a contract between a state agency or an institution of higher education and a provider for energy or water conservation or usage measures in which the estimated energy savings, increase in billable revenues, or increase in meter accuracy resulting from the measures is subject to guarantee to offset the cost of the energy or water conservation or usage measures over a specified period. The term includes a contract for the installation or implementation of the following, including all causally connected work:

(A) insulation of a building structure and systems within the building;

(B) storm windows or doors, caulking or weather stripping, multiglazed windows or doors, heat-absorbing or heat-reflective glazed and coated window or door systems, or other window or door system modifications that reduce energy consumption;

(C) automatic energy control systems, including computer software and technical data licenses;

(D) heating, ventilating, or air-conditioning system modifications or replacements that reduce energy or water consumption;

(E) lighting fixtures that increase energy efficiency;

(F) energy recovery systems;

(G) electric systems improvements;

(H) water-conserving fixtures, appliances, and equipment or the substitution of non-water-using fixtures, appliances, and equipment;

(I) water-conserving landscape irrigation equipment;

(J) landscaping measures that reduce watering demands and capture and hold applied water and rainfall, including:

(i) landscape contouring, including the use of berms, swales, and terraces; and

(ii) the use of soil amendments that increase the water-holding capacity of the soil, including compost;

(K) rainwater harvesting equipment and equipment to make use of water collected as part of a storm-water system installed for water quality control;

(L) equipment for recycling or reuse of water originating on the premises or from other sources, including treated municipal effluent;

(M) equipment needed to capture water from nonconventional, alternate sources, including air-conditioning condensate or graywater, for nonpotable uses;

(N) metering or related equipment or systems that improve the accuracy of billable-revenue-generation systems; or

(O) other energy or water conservation-related improvements or equipment, including improvements or equipment relating to renewable energy or nonconventional water sources or water reuse.

(4) "Institution of higher education" has the meaning assigned by Section 61.003, Education Code.

(5) "State agency" means an office, department, commission, or board of any branch of state government.

Sec. 2178.002. ADMINISTRATIVELY ATTACHED TO COMPTROLLER'S OFFICE. The advisory council is administratively attached to the comptroller's office. The comptroller shall provide the staff and facilities necessary to assist the advisory council in performing its duties.

[Sections 2178.003-2178.050 reserved for expansion]

SUBCHAPTER B. ADVISORY COUNCIL

Sec. 2178.051. ESTABLISHMENT OF ADVISORY COUNCIL. (a) The comptroller shall establish the state energy savings performance contract advisory council as an independent council separate from the state energy conservation office.

(b) Chapter 2110 does not apply to the advisory council.

Sec. 2178.052. APPOINTMENT OF ADVISORY COUNCIL MEMBERS. (a) The comptroller shall appoint the members of the advisory council. The advisory council must include:

(1) at least one representative from each of the following:

(A) an institution of higher education;

(B) a state agency, other than an agency already represented on the advisory council;

(C) the state energy conservation office;

(D) the Texas Higher Education Coordinating Board;

(E) the Bond Review Board;

(F) the Texas Public Finance Authority;

(G) the attorney general's office;

(H) the Texas Water Development Board; and

(I) the Texas Engineering Experiment Station;

(2) a licensed professional mechanical engineer, who is licensed in this state and is proficient in monitoring and verification techniques; and

(3) a representative from the energy savings performance contract industry.

(b) The advisory council members serve four-year terms. An advisory council member may be reappointed for a second term.

(c) Not later than the 90th day after the date the comptroller receives notice of a member's resignation, the comptroller shall fill the vacancy on the advisory council.

Sec. 2178.053. PRESIDING OFFICER. The members of the advisory council by majority vote shall appoint a presiding officer.

Sec. 2178.054. COMPENSATION AND REIMBURSEMENT. An advisory council member is not entitled to compensation or reimbursement of travel expenses for serving on the council.

Sec. 2178.055. MEETINGS. The advisory council shall meet at the call of the presiding officer or comptroller.

[Sections 2178.056-2178.100 reserved for expansion]

SUBCHAPTER C. DUTIES OF ADVISORY COUNCIL

Sec. 2178.101. GENERAL DUTIES. The advisory council shall advise the comptroller, state agencies, and institutions of higher education with regard to:

(1) optimizing energy savings;

(2) complying with the requirements for energy savings performance contracts;

(3) verifying energy savings; and

(4) overseeing contracts for energy services and energy conservation measures under performance contracts that guarantee savings.

Sec. 2178.102. BEST PRACTICES. (a) The advisory council shall identify strategies for state agencies and institutions of higher education to use in measuring and verifying savings from energy, water, improved operations and maintenance, retro-commissioning, renewable energy, and cogeneration projects implemented through energy savings performance contracts.

(b) The advisory council shall base the strategies identified under Subsection (a) on best practices identified by other entities, including:

(1) ASHRAE Guideline 14: Measurement of Energy and Demand Savings;

(2) the International Performance Measurement and Verification Protocol; and

(3) the Federal Energy Management Program Guidelines for Measurement and Verification for Federal Energy Management Projects.

Sec. 2178.103. REPORTS. (a) Not later than January 1 of each odd-numbered year, the advisory council shall submit a report to the governor and both houses of the legislature on:

(1) the savings or lack of savings of all energy savings performance contracts entered into by a state agency or an institution of higher education during the preceding two years and on the performance of contractors under the contracts; and

(2) the fulfillment of state agency energy savings reduction goals under Section 2166.406 of this code and of institutions of higher education energy savings reduction goals under Section 51.927, Education Code.

(b) The report required under Subsection (a) may also contain recommendations for increased savings by state agencies and institutions of higher education, including the use of energy savings performance contracts and other forms of financing.

(c) Each state agency and institution of higher education shall provide to the advisory council adequate, timely information necessary to prepare the report.

(d) Each state agency and institution of higher education shall provide to the advisory council a list of all energy savings performance contracts that includes:

(1) a summary of the savings and operational performance under the contract;

(2) a statement that the savings guarantee is or is not being met annually; and

(3) a statement on the impact of the contract:

(A) for a state agency, on the agency's request to the legislature for utility funding; or

(B) for institutions of higher education, on student fees and tuition.

SECTION 2. Section 2166.406, Government Code, is amended by adding Subsection (k) to read as follows:

(k) An energy savings performance contract must comply with any requirements established under Chapter 2178.

SECTION 3. Section 51.927, Education Code, is amended by adding Subsection (k) to read as follows:

(k) An energy savings performance contract must comply with any requirements established under Chapter 2178, Government Code.

SECTION 4. As soon as practicable after the effective date of this Act, the comptroller of public accounts shall appoint members to the state energy savings performance contract advisory council.

SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.

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