H.B. No. 1728
 
 
 
 
AN ACT
  relating to energy savings performance contracts and energy
  efficiency planning.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 44.901, Education Code, is amended by
  amending Subsection (a) and adding Subsection (f-1) to read as
  follows:
         (a)  In this section, "energy savings performance contract"
  means a contract for energy or water conservation measures to
  reduce energy or water consumption or operating costs of new or
  existing school facilities in which the estimated savings in
  utility costs resulting from the measures is guaranteed to offset
  the cost of the measures over a specified period. The term includes
  a contract for the installation or implementation of:
               (1)  insulation of a building structure and systems
  within the building;
               (2)  storm windows or doors, caulking or
  weatherstripping, 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;
               (3)  automatic energy control systems, including
  computer software and technical data licenses;
               (4)  heating, ventilating, or air-conditioning system
  modifications or replacements that reduce energy or water
  consumption;
               (5)  lighting fixtures that increase energy
  efficiency;
               (6)  energy recovery systems;
               (7)  electric systems improvements;
               (8)  water-conserving fixtures, appliances, and
  equipment or the substitution of non-water-using fixtures,
  appliances, and equipment;
               (9)  water-conserving landscape irrigation equipment;
               (10)  landscaping measures that reduce watering
  demands and capture and hold applied water and rainfall, including:
                     (A)  landscape contouring, including the use of
  berms, swales, and terraces; and
                     (B)  the use of soil amendments that increase the
  water-holding capacity of the soil, including compost;
               (11)  rainwater harvesting equipment and equipment to
  make use of water collected as part of a storm-water system
  installed for water quality control;
               (12)  equipment for recycling or reuse of water
  originating on the premises or from other sources, including
  treated municipal effluent;
               (13)  equipment needed to capture water from
  nonconventional, alternate sources, including air conditioning
  condensate or graywater, for nonpotable uses;
               (14)  metering equipment needed to segregate water use
  in order to identify water conservation opportunities or verify
  water savings; or
               (15)  other energy or water conservation-related
  improvements or equipment, including improvements or equipment
  relating to renewable energy or nonconventional water sources or
  water reuse.
         (f-1)  Notwithstanding other law, the board may use any
  available money, other than money borrowed from this state, to pay
  the provider of the energy or water conservation measures under
  this section, and the board is not required to pay for such costs
  solely out of the savings realized by the school district under an
  energy savings performance contract. The board may contract with
  the provider to perform work that is related to, connected with, or
  otherwise ancillary to the measures identified in the scope of an
  energy savings performance contract.
         SECTION 2.  Section 44.902, Education Code, is amended by
  adding Subsection (b-1) and amending Subsection (d) to read as
  follows:
         (b-1)  For purposes of Subsection (b), a strategy for
  achieving energy efficiency includes facility design and
  construction.
         (d)  The board of trustees may submit the plan required under
  Subsection (a) to the State Energy Conservation Office for the
  purposes of determining whether funds available through loan
  programs administered by the office or tax incentives administered
  by the state or federal government are available to the district.
  The board may not disallow any proper allocation of incentives.
         SECTION 3.  Section 51.927, Education Code, is amended by
  amending Subsection (a) and adding Subsection (g-1) to read as
  follows:
         (a)  In this section, "energy savings performance contract"
  means a contract for energy or water conservation measures to
  reduce energy or water consumption or operating costs of new or
  existing institutional facilities in which the estimated savings in
  utility costs resulting from the measures is guaranteed to offset
  the cost of the measures over a specified period. The term includes
  a contract for the installation or implementation of:
               (1)  insulation of a building structure and systems
  within a building;
               (2)  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;
               (3)  automatic energy control systems, including
  computer software and technical data licenses;
               (4)  heating, ventilating, or air conditioning system
  modifications or replacements that reduce energy or water
  consumption;
               (5)  lighting fixtures that increase energy
  efficiency;
               (6)  energy recovery systems;
               (7)  electric systems improvements;
               (8)  water-conserving fixtures, appliances, and
  equipment or the substitution of non-water-using fixtures,
  appliances, and equipment;
               (9)  water-conserving landscape irrigation equipment;
               (10)  landscaping measures that reduce watering
  demands and capture and hold applied water and rainfall, including:
                     (A)  landscape contouring, including the use of
  berms, swales, and terraces; and
                     (B)  the use of soil amendments that increase the
  water-holding capacity of the soil, including compost;
               (11)  rainwater harvesting equipment and equipment to
  make use of water collected as part of a storm-water system
  installed for water quality control;
               (12)  equipment for recycling or reuse of water
  originating on the premises or from other sources, including
  treated municipal effluent;
               (13)  equipment needed to capture water from
  nonconventional, alternate sources, including air conditioning
  condensate or graywater, for nonpotable uses;
               (14)  metering equipment needed to segregate water use
  in order to identify water conservation opportunities or verify
  water savings; or
               (15)  other energy or water conservation-related
  improvements or equipment, including improvements or equipment
  related to renewable energy or nonconventional water sources or
  water reuse.
         (g-1)  Notwithstanding other law, the board may use any
  available money, other than money borrowed from this state, to pay
  the provider of the energy or water conservation measures under
  this section, and the board is not required to pay for such costs
  solely out of the savings realized by the institution of higher
  education under an energy savings performance contract. The board
  may contract with the provider to perform work that is related to,
  connected with, or otherwise ancillary to the measures identified
  in the scope of an energy savings performance contract.
         SECTION 4.  Section 2166.406, Government Code, is amended by
  amending Subsections (a) and (g) and adding Subsection (f-1) to
  read as follows:
         (a)  In this section, "energy savings performance contract"
  means a contract for energy or water conservation measures to
  reduce energy or water consumption or operating costs of new or
  existing governmental facilities in which the estimated savings in
  utility costs resulting from the measures is guaranteed to offset
  the cost of the measures over a specified period. The term includes
  a contract for the installation of:
               (1)  insulation of a building structure and systems
  within the building;
               (2)  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;
               (3)  automatic energy control systems, including
  computer software and technical data licenses;
               (4)  heating, ventilating, or air-conditioning system
  modifications or replacements that reduce energy or water
  consumption;
               (5)  lighting fixtures that increase energy
  efficiency;
               (6)  energy recovery systems;
               (7)  electric systems improvements;
               (8)  water-conserving fixtures, appliances, and
  equipment or the substitution of non-water-using fixtures,
  appliances, and equipment;
               (9)  water-conserving landscape irrigation equipment;
               (10)  landscaping measures that reduce watering
  demands and capture and hold applied water and rainfall, including:
                     (A)  landscape contouring, including the use of
  berms, swales, and terraces; and
                     (B)  the use of soil amendments that increase the
  water-holding capacity of the soil, including compost;
               (11)  rainwater harvesting equipment and equipment to
  make use of water collected as part of a storm-water system
  installed for water quality control;
               (12)  equipment for recycling or reuse of water
  originating on the premises or from other sources, including
  treated municipal effluent;
               (13)  equipment needed to capture water from
  nonconventional, alternate sources, including air conditioning
  condensate or graywater, for nonpotable uses;
               (14)  metering equipment needed to segregate water use
  in order to identify water conservation opportunities or verify
  water savings; or
               (15)  other energy or water conservation-related
  improvements or equipment including improvements or equipment
  related to renewable energy or nonconventional water sources or
  water reuse.
         (f-1)  Notwithstanding other law, the state agency may use
  any available money, other than money borrowed from this state, to
  pay the provider of the energy or water conservation measures under
  this section, and the state agency is not required to pay for such
  costs solely out of the savings realized by the state agency under
  an energy savings performance contract. The state agency may
  contract with the provider to perform work that is related to,
  connected with, or otherwise ancillary to the measures identified
  in the scope of an energy savings performance contract.
         (g)  An energy savings performance contract with respect to
  [existing] buildings or facilities may be financed:
               (1)  under a lease/purchase contract that has a term
  not to exceed 20 years from the final date of installation and that
  meets federal tax requirements for tax-free municipal leasing or
  long-term financing, including a lease/purchase contract under the
  master equipment lease purchase program administered by the Texas
  Public Finance Authority under Chapter 1232;
               (2)  with the proceeds of bonds; or
               (3)  under a contract with the provider of the energy or
  water conservation measures that has a term not to exceed the lesser
  of 20 years from the final date of installation or the average
  useful life of the energy or water conservation or usage measures.
         SECTION 5.  Section 302.001(4), Local Government Code, is
  amended to read as follows:
               (4)  "Energy savings performance contract" means a
  contract between a local government 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 in new or
  existing facilities, 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.
         SECTION 6.  Section 302.004, Local Government Code, is
  amended by adding Subsection (a-1) to read as follows:
         (a-1)  Notwithstanding other law, the governing body of a
  local government may use any available money, other than money
  borrowed from this state, to pay the provider of the energy or water
  conservation measures under this section, and the governing body is
  not required to pay for such costs solely out of the savings
  realized by the local government under an energy savings
  performance contract. The governing body may contract with the
  provider to perform work that is related to, connected with, or
  otherwise ancillary to the measures identified in the scope of an
  energy savings performance contract.
         SECTION 7.  This Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1728 was passed by the House on May
  12, 2011, by the following vote:  Yeas 143, Nays 2, 3 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 1728 on May 26, 2011, by the following vote:  Yeas 143, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1728 was passed by the Senate, with
  amendments, on May 24, 2011, by the following vote:  Yeas 31, Nays
  0
  .
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor