HBA - PDH, NMO H.B. 2492 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2492
By: Lewis, Ron
Energy Resources
7/22/1999
Enrolled



BACKGROUND AND PURPOSE 

State law authorizes an institution of higher education, school district,
state agency, or local government to enter into a contract for energy
conservation measures, also known as Energy Savings Performance Contracting
(ESPC).  H.B. 2492 modifies and makes uniform the language of the four
sections of law which govern ESPC by amending ESPC funding options and
specifying when the term of ESPC begins.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 44.901, Education Code, by amending Subsections
(f)-(h) and adding Subsection (i) to authorize energy conservation
measures, with respect to existing buildings or facilities of a school
district, to be financed under a lease/purchase contract that has a term
not to exceed 15 years, rather than 10 years, and provides that the term of
such lease/purchase contract begins on the final date of installation.
Adds the ability to finance energy conservation measures with the proceeds
of bonds or under a contract with the provider of the energy conservation
measures that has a term of 15 years, at most, from the final date of
installation.    Makes conforming changes and redesignates Subsections (g)
and (h) as Subsections (h) and (i). 

SECTION 2.  Amends Section 51.927, Education Code, as amended by Chapters
627 and 1142, Acts of the 75th Legislature, Regular Session, 1997, by
reenacting and amending Subsections (f)-(k) and adding Subsection (l) to
authorize energy conservation measures for institutions of higher education
to be financed under a lease/purchase contract that has a term not to
exceed 15 years, rather than 10 years.  Adds the ability to finance energy
conservation measures with the proceeds of bonds or under a contract with
the provider of the energy conservation measures that has a term of 15
years, at most, from the final date of installation.  Makes conforming
changes and redesignates Subsections (h)-(k) as Subsections (i)-(l).   

SECTION 3.  Amends Section 2166.406, Government Code, by amending
Subsections (b) and (f)-(l) and adding Subsection (m) to authorize energy
conservation measures, with respect to existing buildings or facilities of
a state agency, to be financed under a lease/purchase contract that has a
term not to exceed 15 years, rather than 10 years, and provides that the
term of such lease/purchase contract begins on the final date of
installation.  Adds the ability to finance energy conservation measures
with the proceeds of bonds or under a contract with the provider of the
energy conservation measures that has a term of 15 years, at most, from the
final date of installation.   Makes conforming changes and redesignates
Subsections (h)-(l) as Subsections (i)-(m).   

SECTION 4.  Amends Section 302.004, Local Government Code, as follows:

Sec. 302.004.  New title: "METHOD OF FINANCING; TERMS OF CONTRACT."
Authorizes energy conservation measures, with respect to existing buildings
or facilities of a local government entity, to be financed under a
lease/purchase contract that has a term not to exceed 15 years, rather than
10 years, and provides that the term of such lease/purchase  contract
begins on the final date of installation.  Adds the ability to finance
energy conservation measures with the proceeds of bonds or under a contract
with the provider of the energy conservation measures that has a term of 15
years, at most, from the final date of installation.  Makes conforming
changes. 

SECTION 5.  Provides that to the extent of any conflict, this Act prevails
over another Act of the 76th Legislature, Regular Session, 1999, relating
to nonsubstantive additions and corrections in enacted codes, including
H.B. 3156 or S.B. 1368. 

SECTION 6.  Effective date: September 1, 1999.

SECTION 7.  Emergency clause.