2005 Texas Local Government Code CHAPTER 302. ENERGY SAVINGS PERFORMANCE CONTRACTS FOR LOCAL GOVERNMENTS

LOCAL GOVERNMENT CODE

CHAPTER 302. ENERGY SAVINGS PERFORMANCE CONTRACTS FOR LOCAL 
GOVERNMENTS


	§ 302.001. DEFINITIONS.  In this chapter:                                   
		(1)  "Energy savings performance contract" means a 
contract for energy or water conservation measures to reduce energy 
or water consumption or operating costs of local government 
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:
			(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 equipment needed to segregate water 
use in order to identify water conservation opportunities or verify 
water savings;  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.
		(2)  "Local government" means a county, municipality, 
or other political subdivision of this state.  The term does not 
include a school district authorized to enter into an energy 
savings performance contract under Section 44.901, Education Code.

Added by Acts 1997, 75th Leg., ch. 635, § 1, eff. June 11, 1997.  
Amended by Acts 2001, 77th Leg., ch. 573, § 6, eff. Sept. 1, 
2001;  Acts 2003, 78th Leg., ch. 1310, § 78, eff. June 20, 2003.


	§ 302.002. ENERGY SAVINGS PERFORMANCE CONTRACTS.  (a) The 
governing body of a local government may enter into an energy 
savings performance contract in accordance with this chapter.
	(b)  Each energy or water conservation measure must comply 
with current local, state, and federal construction, plumbing, and 
environmental codes and regulations.  Notwithstanding Section 
302.001(1), an energy savings performance contract may not include 
improvements or equipment that allow or cause water from any 
condensing, cooling, or industrial process or any system of 
nonpotable usage over which public water supply system officials do 
not have sanitary control to be returned to the potable water 
supply.

Added by Acts 1997, 75th Leg., ch. 635, § 1, eff. June 11, 1997.  
Amended by Acts 2001, 77th Leg., ch. 573, § 6, eff. Sept. 1, 
2001;  Acts 2001, 77th Leg., ch. 1319, § 4, eff. Sept. 1, 2001;  
Acts 2003, 78th Leg., ch. 1310, § 79, eff. June 20, 2003.


	§ 302.003. PAYMENT AND PERFORMANCE 
BOND.  Notwithstanding any other law, before entering into an 
energy savings performance contract, the governing body of the 
local government shall require the provider of the energy or water 
conservation measures to file with the governing body a payment and 
performance bond relating to the installation of the measures in 
accordance with Chapter 2253, Government Code.  The governing body 
may also require a separate bond to cover the value of the 
guaranteed savings on the contract.

Added by Acts 1997, 75th Leg., ch. 635, § 1, eff. June 11, 1997.  
Amended by Acts 2001, 77th Leg., ch. 573, § 6, eff. Sept. 1, 
2001;  Acts 2001, 77th Leg., ch. 1319, § 5, eff. Sept. 1, 2001.


	§ 302.004. METHOD OF FINANCING;  TERMS OF CONTRACT.  (a) 
An energy savings performance contract may be financed:
		(1)  under a lease-purchase contract that has a term 
not to exceed 15 years from the final date of installation and that 
meets federal tax requirements for tax-free municipal leasing or 
long-term financing;
		(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 15 years 
from the final date of installation.
	(b)  An energy savings performance contract shall contain 
provisions requiring the provider of the energy or water 
conservation measures to guarantee the amount of the savings to be 
realized by the local government under the contract.  If the term of 
the contract exceeds one year, the local government's contractual 
obligations in any one year during the term of the contract 
beginning after the final date of installation may not exceed the 
total energy, water, wastewater, and operating cost savings, 
including electrical, gas, water, wastewater, or other utility cost 
savings and operating cost savings resulting from the measures as 
determined by the local government in this subsection, divided by 
the number of years in the contract term.

Added by Acts 1997, 75th Leg., ch. 635, § 1, eff. June 11, 1997.  
Amended by Acts 1999, 76th Leg., ch. 361, § 4, eff. Sept. 1, 
1999;  Acts 2001, 77th Leg., ch. 573, § 6, eff. Sept. 1, 2001;  
Acts 2001, 77th Leg., ch. 1319, § 6, eff. Sept. 1, 2001;  Acts 
2003, 78th Leg., ch. 1310, § 81, eff. June 20, 2003.


	§ 302.005. BIDDING PROCEDURES;  AWARD OF CONTRACT.  (a) 
An energy savings performance contract under this chapter may be 
let in accordance with the procedures established for procuring 
certain professional services by Section 2254.004, Government 
Code.  Notice of the request for qualifications shall be published 
in the manner provided for competitive bidding.
	(b)  Before entering into an energy savings performance 
contract, the governing body must require that the cost savings 
projected by an offeror be reviewed by a licensed engineer who is 
not an officer or employee of an offeror for the contract under 
review or otherwise associated with the contract or the offeror.  An 
engineer who reviews a contract shall maintain the confidentiality 
of any proprietary information the engineer acquires while 
reviewing the contract.  Sections 1001.053 and 1001.407, 
Occupations Code, apply to work performed under the contract.

Added by Acts 1997, 75th Leg., ch. 635, § 1, eff. June 11, 1997.  
Amended by Acts 2001, 77th Leg., ch. 573, § 12, eff. Sept. 1;  
Acts 2001, 77th Leg., ch. 1319, § 7;  Acts 2003, 78th Leg., ch. 
1276, § 12.005, eff. Sept. 1, 2003;  Acts 2003, 78th Leg., ch. 
1310, § 82, eff. June 20, 2003.