By: Harris S.B. No. 1460
(In the Senate - Filed March 10, 2011; March 22, 2011, read
first time and referred to Committee on Government Organization;
May 12, 2011, reported favorably by the following vote: Yeas 5,
Nays 0; May 12, 2011, sent to printer.)
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. 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 of trustees of a
school district 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 the energy or water conservation measures
solely out of the savings realized by the school district under an
energy savings performance contract.
SECTION 2. 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 the energy or
water conservation measures solely out of the savings realized by
the institution of higher education under an energy savings
performance contract.
SECTION 3. 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 energy
or water conservation measures solely out of the savings realized
by the state agency under 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 4. Subdivision (4), Section 302.001, 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 5. 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 energy or water conservation measures
solely out of the savings realized by the local government under an
energy savings performance contract.
SECTION 6. This Act takes effect September 1, 2011.
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