By: Paddie (Senate Sponsor - Hughes) H.B. No. 1571
         (In the Senate - Received from the House May 1, 2017;
  May 4, 2017, read first time and referred to Committee on Business &
  Commerce; May 15, 2017, reported favorably by the following vote:  
  Yeas 8, Nays 0; May 15, 2017, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to energy savings performance contracts.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 44.901(a) and (f-1), Education Code,
  are amended to read as follows:
         (a)  In this section, "energy savings performance contract"
  has the meaning assigned by Section 302.001, Local Government Code
  [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.  Sections 51.927(a) and (g-1), Education Code,
  are amended to read as follows:
         (a)  In this section, "energy savings performance contract"
  has the meaning assigned by Section 302.001, Local Government Code
  [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 3.  Sections 2166.406(a) and (f-1), Government Code,
  are amended to read as follows:
         (a)  In this section, "energy savings performance contract"
  has the meaning assigned by Section 302.001, Local Government Code
  [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.
         SECTION 4.  Sections 302.001(1), (3), and (4), Local
  Government Code, are amended to read as follows:
               (1)  "Baseline" means a calculation or set of
  calculations in an energy savings performance contract that:
                     (A)  may be based on:
                           (i)  historical costs, revenues, accuracy,
  or related components; or
                           (ii)  avoided anticipated costs; and
                     (B)  may be used for determining:
                           (i) [(A)]  the costs for energy or water
  usage [by a local government] and related net operating costs;
                           (ii) [(B)]  the billable revenues from
  providing energy, water, or other utilities to users; or
                           (iii) [(C)]  the efficiency or accuracy of
  metering or related equipment, systems, or processes or procedures.
               (3)  "Energy savings" means an estimated reduction in
  net fuel costs, energy costs, water costs, stormwater fees, or
  other utility costs, or related net operating costs, including
  costs for anticipated equipment replacement and repair, 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.
               (4)  "Energy savings performance contract" means a
  contract with [between a local government and] a provider for
  energy or water conservation or usage measures in which the
  estimated energy savings, utility cost 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 related to the pilot program described by
  Subdivision (9-a) and 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;
                     (O)  alternative fuel programs resulting in
  energy cost savings and reduced emissions for local government
  vehicles, including fleet vehicles;
                     (P)  programs resulting in utility cost savings;
  or
                     (Q)  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 5.  Section 302.004(a-1), Local Government Code, is
  amended 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 6.  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, 2017.
 
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