TX SB1050

Expands the definition of "local government" to include school districts for energy savings performance contracts, consolidating requirements previously in separate Education Code provisions

Requires local governments to select an independent third-party engineer (licensed with at least 3 years of specialized experience) to serve as consultant throughout the procurement process, review investment grade audits, and monitor measurement and verification of guaranteed savings

Mandates State Energy Conservation Office review and approval of all proposed energy savings performance contracts, change orders, and addendums before execution, with the office evaluating technical and economic feasibility of each conservation measure within 90 business days

Creates second-degree felony offenses for kickbacks and contingency fee arrangements related to energy savings performance contracts, including for providers, local government officials, and employees who solicit or receive payments contingent on contract awards

Requires providers to submit annual reconciliation statements comparing guaranteed versus actual energy savings, with mandatory shortfall payments to local governments within 30 days if savings fall short of projections