| 1 | 1 | | 2025S0075-1 02/05/25 |
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| 2 | 2 | | By: Hinojosa of Hidalgo S.B. No. 1225 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the purchase of a construction-related service from a |
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| 10 | 10 | | provider related to an energy savings performance contract. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 302.001, Local Government Code, is |
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| 13 | 13 | | amended by adding Subdivisions (7-a), (8-a), and (9-b) and amending |
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| 14 | 14 | | Subdivisions (8) and (10) to read as follows: |
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| 15 | 15 | | (7-a) "Investment grade audit" means a detailed |
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| 16 | 16 | | analysis by a qualified provider to define the scope of work for an |
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| 17 | 17 | | energy savings performance contract. The audit includes physical |
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| 18 | 18 | | inspections, utility data analysis, identification of conservation |
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| 19 | 19 | | measures, and a comprehensive report detailing costs, savings |
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| 20 | 20 | | projections, and a measurement and verification plan, ensuring |
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| 21 | 21 | | compliance with industry standards and unbiased recommendations. |
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| 22 | 22 | | (8) "Local government" means a county, municipality, |
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| 23 | 23 | | school district, or other political subdivision of this |
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| 24 | 24 | | state. [The term does not include a school district authorized to |
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| 25 | 25 | | enter into an energy savings performance contract under Section |
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| 26 | 26 | | 44.901, Education Code.] |
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| 27 | 27 | | (8-a) "Measurement and verification" means a method of |
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| 28 | 28 | | confirming whether a guaranteed energy savings, an increase in |
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| 29 | 29 | | billable revenues, or an increase in meter accuracy resulting from |
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| 30 | 30 | | an energy or water conservation or usage measure is being met as |
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| 31 | 31 | | specified under an energy savings performance contract and this |
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| 32 | 32 | | chapter. |
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| 33 | 33 | | (9-b) "Preliminary utility audit" means an initial |
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| 34 | 34 | | assessment by a provider to identify potential energy or water |
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| 35 | 35 | | conservation measures. The audit includes cost and savings |
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| 36 | 36 | | estimates, an on-site survey, and a written report provided at no |
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| 37 | 37 | | cost to the local government, excluding detailed engineering or |
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| 38 | 38 | | architectural designs. |
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| 39 | 39 | | (10) "Provider" means an entity or an affiliate of the |
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| 40 | 40 | | entity that: |
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| 41 | 41 | | (A) has experience in the design, acquisition, |
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| 42 | 42 | | implementation, installation, and, where appropriate, |
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| 43 | 43 | | construction, engineering, operation, maintenance, and repair [in |
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| 44 | 44 | | the business of designing, implementing, and installing] of energy |
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| 45 | 45 | | or water conservation or usage measures [or an affiliate of such an |
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| 46 | 46 | | entity]; |
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| 47 | 47 | | (B) has the technical capability to verify that |
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| 48 | 48 | | such energy or water conservation or usage measures generate energy |
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| 49 | 49 | | savings, an increase in billable revenues, or an increase in meter |
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| 50 | 50 | | accuracy; and |
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| 51 | 51 | | (C) has the ability to secure or arrange the |
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| 52 | 52 | | financing necessary to satisfy the guarantee required by an energy |
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| 53 | 53 | | savings performance contract entered into by the provider. |
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| 54 | 54 | | SECTION 2. Chapter 302, Local Government Code, is amended |
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| 55 | 55 | | by adding Section 302.009 to read as follows: |
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| 56 | 56 | | Sec. 302.009. PROCUREMENT OF CERTAIN CONSTRUCTION-RELATED |
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| 57 | 57 | | SERVICES. (a) This section applies to the purchase of a |
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| 58 | 58 | | construction-related service from a provider related to an energy |
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| 59 | 59 | | savings performance contract in an amount that exceeds $50,000. |
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| 60 | 60 | | (b) A local government may not use a purchasing cooperative |
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| 61 | 61 | | under Chapter 791, Government Code, or a local cooperative |
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| 62 | 62 | | organization under Subchapter F, Chapter 271, of this code for the |
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| 63 | 63 | | purchase of a preliminary utility audit, an investment grade audit, |
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| 64 | 64 | | architectural services, design services, or engineering services |
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| 65 | 65 | | from a provider under an energy savings performance contract. |
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| 66 | 66 | | SECTION 3. Section 44.901, Education Code, is repealed. |
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| 67 | 67 | | SECTION 4. The changes in law made by this Act apply to a |
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| 68 | 68 | | contract entered into or amended or modified on or after the |
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| 69 | 69 | | effective date of this Act. A contract entered into or amended or |
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| 70 | 70 | | modified before the effective date of this Act is governed by the |
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| 71 | 71 | | law in effect on the date the contract was entered into or amended |
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| 72 | 72 | | or modified, and the former law is continued in effect for that |
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| 73 | 73 | | purpose. |
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| 74 | 74 | | SECTION 5. This Act takes effect September 1, 2025. |
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