Hinojosa Energy Savings Bill Also Repeals A School District Statute

The text as introduced · 580 words

2025S0075-1 02/05/25

By: Hinojosa of Hidalgo
S.B. No. 1225

A BILL TO BE ENTITLED

AN ACT

relating to the purchase of a construction-related service from a

provider related to an energy savings performance contract.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 302.001, Local Government Code, is

amended by adding Subdivisions (7-a), (8-a), and (9-b) and amending

Subdivisions (8) and (10) to read as follows:

(7-a) "Investment grade audit" means a detailed

analysis by a qualified provider to define the scope of work for an

energy savings performance contract. The audit includes physical

inspections, utility data analysis, identification of conservation

measures, and a comprehensive report detailing costs, savings

projections, and a measurement and verification plan, ensuring

compliance with industry standards and unbiased recommendations.

(8) "Local government" means a county, municipality,

school district, 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. ]

(8-a) "Measurement and verification" means a method of

confirming whether a guaranteed energy savings, an increase in

billable revenues, or an increase in meter accuracy resulting from

an energy or water conservation or usage measure is being met as

specified under an energy savings performance contract and this

chapter.

(9-b) "Preliminary utility audit" means an initial

assessment by a provider to identify potential energy or water

conservation measures. The audit includes cost and savings

estimates, an on-site survey, and a written report provided at no

cost to the local government, excluding detailed engineering or

architectural designs.

(10) "Provider" means an entity or an affiliate of the

entity that:

(A) has experience in the design, acquisition,

implementation, installation, and, where appropriate,

construction, engineering, operation, maintenance, and repair [ in

the business of designing, implementing, and installing ] of energy

or water conservation or usage measures [ or an affiliate of such an

entity ] ;

(B) has the technical capability to verify that

such energy or water conservation or usage measures generate energy

savings, an increase in billable revenues, or an increase in meter

accuracy; and

(C) has the ability to secure or arrange the

financing necessary to satisfy the guarantee required by an energy

savings performance contract entered into by the provider .

SECTION 2. Chapter 302, Local Government Code, is amended

by adding Section 302.009 to read as follows:

Sec. 302.009. PROCUREMENT OF CERTAIN CONSTRUCTION-RELATED

SERVICES. (a) This section applies to the purchase of a

construction-related service from a provider related to an energy

savings performance contract in an amount that exceeds $50,000.

(b) A local government may not use a purchasing cooperative

under Chapter 791, Government Code, or a local cooperative

organization under Subchapter F, Chapter 271, of this code for the

purchase of a preliminary utility audit, an investment grade audit,

architectural services, design services, or engineering services

from a provider under an energy savings performance contract.

SECTION 3. Section 44.901, Education Code, is repealed.

SECTION 4. The changes in law made by this Act apply to a

contract entered into or amended or modified on or after the

effective date of this Act. A contract entered into or amended or

modified before the effective date of this Act is governed by the

law in effect on the date the contract was entered into or amended

or modified, and the former law is continued in effect for that

purpose.

SECTION 5. This Act takes effect September 1, 2025.