SB 1225

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
(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
(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
(10)  "Provider" means an entity or an affiliate of the
(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
(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
(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
SECTION 5.  This Act takes effect September 1, 2025.