Texas Education Code - Section 51.927. Energy Savings Performance Contracts
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§ 51.927. ENERGY SAVINGS PERFORMANCE CONTRACTS. (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 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.
(b) The governing board of an institution of higher
education may enter into an energy savings performance contract in
accordance with this section.
(c) Each energy or water conservation measure must comply
with current local, state, and federal construction, plumbing, and
environmental codes and regulations. Notwithstanding Subsection
(a), 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 the public water supply system
officials do not have sanitary control, to be returned to the
potable water supply.
(d) The board may enter into energy savings performance
contracts only with entities that are experienced in the design,
implementation, and installation of the energy or water
conservation measures addressed by the contract.
(e) Before entering into an energy savings performance
contract, the board shall require the provider of the energy or
water conservation measures to file with the board a payment and
performance bond in accordance with Chapter 2253, Government Code.
The board may also require a separate bond to cover the value of the
guaranteed savings on the contract.
(f) The board may enter into an energy savings performance
contract for a period of more than one year only if the board finds
that the amount the institution would spend on the energy or water
conservation measures will not exceed the amount to be saved in
energy, water, wastewater, and operating costs over 15 years from
the date of installation. If the term of the contract exceeds one
year, the institution's contractual obligation in any 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 board in
this subsection, divided by the number of years in the contract term
beginning after the final date of installation. The board shall
consider all costs of the energy or water conservation measures,
including costs of design, engineering, installation, maintenance,
repairs, and debt service.
(g) 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, including a lease/purchase contract under the
master equipment lease purchase program administered by the Texas
Public Finance Authority under Chapter 1232, Government Code;
(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.
(h) 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 institution of higher education under the contract.
(i) An energy savings performance contract shall be let
according to the procedures established for procuring certain
professional services by Section 2254.004, Government Code. Notice
of the request for qualifications shall be given in the manner
provided by Section 2156.002, Government Code. The Texas Higher
Education Coordinating Board, in consultation with the State Energy
Conservation Office with regard to energy and water conservation
measures, shall establish guidelines and an approval process for
awarding energy savings performance contracts. The guidelines must
require that the cost savings projected by an offeror be reviewed by
a licensed professional engineer who is not an officer or employee
of an offeror for the contract under review or otherwise associated
with the contract. An engineer who reviews a contract shall
maintain the confidentiality of any proprietary information the
engineer acquires while reviewing the contract. A contract is not
required to be reviewed or approved by the State Energy
Conservation Office. Sections 1001.053 and 1001.407, Occupations
Code, apply to work performed under the contract.
(j) The legislature shall base an institution's
appropriation for energy, water, and wastewater costs during a
fiscal year on the sum of:
(1) the institution's estimated energy, water, and
wastewater costs for that fiscal year; and
(2) if an energy savings performance contract is in
effect, the institution's estimated net savings resulting from the
contract during the contract term, divided by the number of years in
the contract term.
Added by Acts 1991, 72nd Leg., 2nd C.S., ch. 8, § 3.07, eff.
Sept. 1, 1991. Amended by Acts 1995, 74th Leg., ch. 76, §
5.95(92), eff. Sept. 1, 1995; Acts 1995, 74th Leg., ch. 773, §
1, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 165, § 17.19,
eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1142, § 2, eff.
June 19, 1997; Acts 1997, 75th Leg., ch. 627, § 1, eff. June 11,
1997; Acts 1999, 76th Leg., ch. 62, § 4.03, eff. Sept. 1, 1999;
Acts 1999, 76th Leg., ch. 361, § 2, eff. Sept; 1, 1999; Acts
1999, 76th Leg., ch. 1450, § 1, eff. Sept. 1, 1999; ; Acts 2001,
77th Leg., ch. 573, § 3, 4, eff. Sept. 1, 2001; Acts 2001, 77th
Leg., ch. 1319, § 2, eff. Sept. 1, 2001; Acts 2003, 78th Leg.,
ch. 1310, § 6, 121(2), eff. June 20, 2003.
Section: 51.923 51.924 51.9241 51.9242 51.9245 51.925 51.926 51.927 51.928 51.929 51.930 51.931 51.932 51.9325 51.933
Last modified: August 10, 2007
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