H.B. No. 3583
AN ACT
relating to energy savings performance contracts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 302.001(4), Local Government Code, is
amended to read as follows:
(4) "Energy savings performance contract" means a
contract with 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 does not include the
design or new construction of a water supply project, water plant,
wastewater plant, water and wastewater distribution or conveyance
facility, or drainage project. 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 2. Section 302.005, Local Government Code, is
amended by adding Subsections (d) and (e) to read as follows:
(d) The scope of an energy savings performance contract may
not be modified under this section by change order, contract
addendum, or other method:
(1) to perform work that is not related to, connected
with, or otherwise ancillary to the measures identified in the
original scope of an energy savings performance contract; or
(2) in a way that increases the price of the original
awarded contract by more than 25 percent of the original contract
value.
(e) Subsection (d) applies only to the design or
construction of a water supply project, water plant, wastewater
plant, water and wastewater distribution or conveyance facility, or
drainage project.
SECTION 3. Chapter 302, Local Government Code, is amended
by adding Section 302.008 to read as follows:
Sec. 302.008. ENFORCEMENT. (a) A contract entered into or
an arrangement made in violation of this chapter is voidable as
against public policy.
(b) This chapter may be enforced through an action for
declaratory or injunctive relief filed not later than the 10th day
after the date the contract is awarded.
SECTION 4. The changes in law made by this Act do not apply
to an energy savings performance contract entered into before the
effective date of this Act, and the former law governing the
contract is continued in effect for that purpose.
SECTION 5. 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, 2021.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3583 was passed by the House on May
13, 2021, by the following vote: Yeas 145, Nays 0, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3583 was passed by the Senate on May
21, 2021, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor