SB1225 - Relating to the purchase of a construction-related service from a provider related to an energy savings performance contract.

  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.