By: Hughes S.B. No. 1382
(In the Senate - Filed March 6, 2017; March 16, 2017, read
first time and referred to Committee on Business & Commerce;
May 9, 2017, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 6, Nays 0; May 9, 2017, sent
to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 1382 By: Creighton
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) 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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