Contracting Guidelines and Reviews
Energy Performance Contracting is a construction method that allows a
facility to complete energy-saving improvements within an existing budget by
financing them with money saved through reduced utility expenditures. Facilities
make no up-front investments and instead finance projects through guaranteed
annual energy savings.
To enter into a guaranteed energy savings performance contract (ESPC), a
state agency must notify SECO of their intent, issue a Request for
Qualifications (RFQ), and select a performance contractor, usually an energy
service company (ESCO). After identifying eligible projects, the contractor
designs and installs the needed improvements. The agency pays for the financed
project out of savings realized by the improvements. By law, the contractor must
guarantee that the savings will always be at least equal to the payments for the
cost of the improvements.
Current Texas law enables institutions of higher education, state agencies,
public school districts, and local governments to enter into energy performance
contracting arrangements. To view the relevant
sections of state law, please select one of the following items:
School Districts: Education Code 44.901
Higher Education: Education Code 51.927
State Agencies: Government Code 2166.406
Local Government: Local Government Code 302.004
Guidelines and Approval
Process for State Agencies and Performance Contractors: While you may use these guidelines, please note that
these guidelines do not reflect recent changes in Texas law. We are working on
that update now (see Guidelines
and Approval Process). Please keep checking back for the updated version. If you have any
questions, please contact Charles Bredwell at (512) 463-1947 or 1-800-531-5441,
ext 1947, or by email.
Guidelines: These are suggested guidelines for water conservation,
and contains suggestions that in no way serve as a minimum, nor should they be
considered all inclusive. This may be considered a "living" document
and SECO encourages comments and suggestions for improvement or clarification.
State agencies are encouraged to undertake all cost effective water conservation
measures (see Water
Conservation Guidelines). SECO will update the guidelines from time to time, so please recheck this
website for notices of future updates.