S.B. No. 1225 amends the Local Government Code to enhance the framework for energy savings performance contracts by introducing new definitions and procurement guidelines. The bill adds definitions for "investment grade audit," "measurement and verification," and "preliminary utility audit," which outline the processes and requirements for conducting energy audits and verifying energy savings. Additionally, it clarifies the definition of "local government" to include school districts and removes the previous exclusion of school districts from entering energy savings performance contracts.

Furthermore, the bill establishes a new section that prohibits local governments from using purchasing cooperatives for certain construction-related services, including preliminary utility audits and engineering services, when the contract amount exceeds $50,000. It also repeals Section 44.901 of the Education Code, which previously governed energy savings performance contracts for school districts. The changes will take effect on September 1, 2025, and will apply to contracts entered into or modified after that date.

Statutes affected:
Introduced: Local Government Code 302.001, Education Code 44.901 (Local Government Code 302, Education Code 44)