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A BILL TO BE ENTITLED
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AN ACT
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relating to the purchase of a construction-related service from a |
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provider related to an energy savings performance contract. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 302.001, Local Government Code, is |
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amended by adding Subdivisions (7-a), (8-a), and (9-b) and amending |
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Subdivisions (8) and (10) to read as follows: |
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(7-a) "Investment grade audit" means a detailed |
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analysis by a qualified provider to define the scope of work for an |
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energy savings performance contract. The audit includes physical |
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inspections, utility data analysis, identification of conservation |
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measures, and a comprehensive report detailing costs, savings |
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projections, and a measurement and verification plan, ensuring |
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compliance with industry standards and unbiased recommendations. |
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(8) "Local government" means a county, municipality, |
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school district, or other political subdivision of this |
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state. [The term does not include a school district authorized to |
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enter into an energy savings performance contract under Section |
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44.901, Education Code.] |
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(8-a) "Measurement and verification" means a method of |
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confirming whether a guaranteed energy savings, an increase in |
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billable revenues, or an increase in meter accuracy resulting from |
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an energy or water conservation or usage measure is being met as |
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specified under an energy savings performance contract and this |
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chapter. |
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(9-b) "Preliminary utility audit" means an initial |
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assessment by a provider to identify potential energy or water |
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conservation measures. The audit includes cost and savings |
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estimates, an on-site survey, and a written report provided at no |
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cost to the local government, excluding detailed engineering or |
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architectural designs. |
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(10) "Provider" means an entity or an affiliate of the |
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entity that: |
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(A) has experience in the design, acquisition, |
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implementation, installation, and, where appropriate, |
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construction, engineering, operation, maintenance, and repair [in |
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the business of designing, implementing, and installing] of energy |
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or water conservation or usage measures [or an affiliate of such an |
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entity]; |
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(B) has the technical capability to verify that |
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such energy or water conservation or usage measures generate energy |
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savings, an increase in billable revenues, or an increase in meter |
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accuracy; and |
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(C) has the ability to secure or arrange the |
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financing necessary to satisfy the guarantee required by an energy |
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savings performance contract entered into by the provider. |
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SECTION 2. Chapter 302, Local Government Code, is amended |
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by adding Section 302.009 to read as follows: |
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Sec. 302.009. PROCUREMENT OF CERTAIN CONSTRUCTION-RELATED |
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SERVICES. (a) This section applies to the purchase of a |
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construction-related service from a provider related to an energy |
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savings performance contract in an amount that exceeds $50,000. |
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(b) A local government may not use a purchasing cooperative |
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under Chapter 791, Government Code, or a local cooperative |
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organization under Subchapter F, Chapter 271, of this code for the |
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purchase of a preliminary utility audit, an investment grade audit, |
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architectural services, design services, or engineering services |
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from a provider under an energy savings performance contract. |
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SECTION 3. Section 44.901, Education Code, is repealed. |
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SECTION 4. The changes in law made by this Act apply to a |
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contract entered into or amended or modified on or after the |
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effective date of this Act. A contract entered into or amended or |
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modified before the effective date of this Act is governed by the |
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law in effect on the date the contract was entered into or amended |
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or modified, and the former law is continued in effect for that |
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purpose. |
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SECTION 5. This Act takes effect September 1, 2025. |