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Agenda Item No. 3.1Agenda Item BriefingThrough The Texas A&M University System (A&M System) negotiated energy savings programcontracts, Tarleton invited the four A&M System-approved Energy Service Companies (ESCOs)to conduct presentations and then invited ESCO(s) to participate in a Preliminary Utility Audit(PUA) at its campus. Tarleton selected Ameresco as the ESCO contractor to proceed with fornegotiation of a campus-wide IGA, also referred to as a Utility Audit Report or Energy AuditReport. Through the IGA, the ESCO contractor (i) collected data related to Owner’s use andoperation of the premises, which included observations of the premises, determination of the baseyear energy consumption, financial analyses of the cost and benefit of energy and waterconservation measures; and (ii) prepared a detailed Energy Audit Report, which analyzed currentenergy consumption at the premises, made recommendations for energy efficient equipmentupgrades, energy conservation measures, and a detailed analysis of implementation costs,anticipated energy and water savings resulting from such improvements and assumptions uponwhich the projected savings are based. The Energy Audit Report provided Tarleton with theinformation necessary for the evaluation of the costs and benefits of proceeding with the utilityconsumption reduction project.Low interest loans are being made available through various financing sources including thirdparty financing and the A&M System’s Revenue Financing System debt proceeds, with costavoidance from energy consumption reduction guaranteed by an ESCO to pay back both principleand interest over twenty years after construction is complete. Energy savings projects of this typeare also required to submit required documentation in order to receive approval by the TexasHigher Education Coordinating Board (THECB), who originally established review and approvalprocess guidelines in consultation with the State Energy Conservation Office (SECO). Theapplication for this project will be evaluated on technical and financial requirements and selectedfor funding based upon meeting strict engineering and financial merits. If the projectedenergy consumption avoidance is not achieved, the ESCO will be responsible for any guaranteedutility savings shortfall. For this project, a 13.1 million total project budget is anticipated.Scope:The PUA identified a list of facilities to be audited and upgraded with lighting improvements,HVAC equipment upgrades, Building Automation System upgrades, and water fixture upgradesas recommended. During the IGA, the facilities were further defined within the final facility listas shown below.Page 2 of 4

Agenda Item No. 3.1Agenda Item BriefingTable B.0. Facilities 67970971972981986Total:Building Full NameEngineering TechnologyFine Arts CenterAutry BuildingMath BuildingGrant BuildingHowell BuildingPhysical PlantHunewell HallHunewell AdditionTarleton CenterAdministration BuildingKinesiology BuildingSmith LibraryCentral ReceivingBusiness AdministrationHydrology BuildingStudent CenterCentral PlantScience BuildingTexan Village ITexan Village IITexan Village IIITexan Village ClubhouseTexan Village IVCentennial HallDining HallLegends HallLegacy HallHeritage HallRecreation CenterIntegrity HallTraditions NorthTraditions SouthNursingHonors areFloors 571982,301,560The recommended energy and water conservation measures (ECMs) will reduce energy andoperational costs at the 35 facilities evaluated. These facilities are of different age and type andcomprise all large facilities on campus. The audited campus facilities represent 2,301,560 squarePage 3 of 4

Agenda Item No. 3.1Agenda Item Briefingfeet. Tarleton will improve the quality of the teaching, learning, and research environment and beable to promote a more sustainable image with greenhouse gas reductions.Measurable success will be based on post-construction verification of:Reduction in electricity consumption by 8,881,160 kilowatt-hours (kWh) each yearReduction in utility annual electricity demand assessments by 15,384 kW each yearReduction in natural gas consumption 1,625 MMBtu each yearReduction in water consumption 16,091 kGal each yearThe proposed project will use a Design Build (DB) delivery method in which the first step was anIGA/Utility Audit Report (UAR); a Measurement and Verification Plan (M&V); a SamplePeriodic Savings Report; and Project Proposal. The project shall then be reviewed by anindependent third party professional engineer licensed in the state of Texas pursuant to the TexasEngineering Practice Act, Texas Occupations Code Chapter 1001. If the project criteria identifiedwithin the IGA are met, the project may move to the next step, an Energy Savings PerformanceContract (ESPC).All construction in this project shall meet all applicable codes and standards identified within theFP&C Facility Design Guidelines, including NFPA Life Safety Codes and Texas AccessibilityStandards.Tarleton has identified Revenue Financing System as the financing vehicle for this project. Anyrelated agreements prepared for this project will be reviewed and approved by the Office ofGeneral Counsel prior to execution.Construction on this project is scheduled to start in July 2021 with substantial completionscheduled for September 2022. The total project budget is 13,084,947.Other Major Fiscal Impacts:None.Strategic Plan Imperative(s) this Item Advances:The project supports Strategic Plan Imperative 6, “The A&M System, in adhering to the highstandard of excellence and growth required in this strategic plan, will display prudent financialstewardship and sustainability. Our member institutions will be diligent about their plans forgrowth, and the A&M System will ensure financially sound decision-making at the aggregatelevel. We have robust financial management capabilities in place and will continue to manage theA&M System’s financial health in a holistic manner.” Tarleton is leveraging available electricity,natural gas, and water savings to fund utility consumption reduction measures that are botheconomically and environmentally sustainable. This will be accomplished by providing lighting,infrastructure, and water upgrades throughout buildings across the Tarleton campus in a budgetneutral manner. These measures will improve the quality of facilities for students, faculty, andstaff, as well as provide a meaningful reduction in the deferred maintenance backlog whilesupplementing the campus’ capacity for growth by addressing these infrastructure needs.Page 4 of 4

Agenda Item No. 3.1TARLETON STATE UNIVERSITYOffice of the PresidentDecember 14, 2020Members, Board of RegentsThe Texas A&M University SystemSubject:Approval to Amend the FY 2021 – FY 2025 Texas A&M University System CapitalPlan to Add the Tarleton ESCO 2021 Project with a Fiscal Year 2021 Start Date andApproval of the Project Scope and Budget, Appropriation for the Pre-Construction andConstruction Services, and Approval for Construction of the Tarleton ESCO 2021Project at Tarleton State University (Project No. 04-3340)I recommend adoption of the following minute order:“The request to amend the FY 2021-FY 2025 Texas A&M UniversitySystem Capital Plan to add the Tarleton ESCO 2021 Project for Tarleton StateUniversity with an FY 2021 start date is approved.“The project scope along with a project budget up to 13,084,947 forthe Tarleton ESCO 2021 Project is approved.The amount up to 12,131,195 is appropriated from Account No. 01083540 Revenue Financing System Debt Proceeds, (Energy Savings) and theamount of 953,752 is appropriated from Account No. 04-201999, USFReserve, for pre-construction and construction services and related projectcosts.The Tarleton ESCO 2021 Project, Tarleton State University,Stephenville, Texas, is approved for construction.The Board of Regents of The Texas A&M University System (Board)reasonably expects to incur debt in one or more obligations for this project,and all or a portion of the proceeds received from the sale of such obligationsis reasonably expected to be used to reimburse the account(s) for amountspreviously appropriated and/or expended from such account(s).As required by Section 5(a) of the Master Resolution of the RevenueFinancing System, the Board hereby determines that it will have sufficientfunds to meet the financial obligations of The Texas A&M University System,including sufficient Pledged Revenues to satisfy the Annual Debt ServiceRequirements of the Revenue Financing System and to meet all financialobligations of the Board relating to the Revenue Financing System and thatPage 1 of 2

Agenda Item No. 3.1December 14, 2020the Participants, on whose behalf the debt is issued, possess the financialcapacity to satisfy their Direct Obligations.”Respectfully submitted,[ORIGINAL SIGNED BYBilly HamiltonDeputy Chancellor andChief Financial OfficerApproval Recommended:Approved for Legal Sufficiency:[ORIGINAL SIGNED BYJohn SharpChancellor[ORIGINAL SIGNED BYRay BonillaGeneral Counsel[ORIGINAL SIGNED BYPhillip RayVice Chancellor for Business Affairs[ORIGINAL SIGNED BYJames HurleyPresidentTarleton State UniversityPage 2 of 2

ATTACHMENT TO ITEM 3.1PROJECT BUDGETTARLETON ESCO 2021TARLETON STATE UNIVERSITYPROJECT NO. 04-33401. Amount Available for Construction Contract . 12,126,1952. Project Owner Contingency . 607,0003. 3rd Party Engineering Verification . 5,0004. FP&C Management Fee 346,7525. TOTAL ESTIMATED COST OF PROJECT . 13,084,947Page 1 of 4

PROJECT SCHEDULETARLETON ESCO 2021TARLETON STATE UNIVERSITYPROJECT NO. 04-33401.Authorization to Proceed with Investment Grade Audit . April 9, 20202.Receive GMP . November 6, 20203.Submit IGA Package for Review . November 13, 20204.Investment Grade Audit Complete . November 13, 20205.Complete Program of Requirements . November 16, 20206.Submit IGA Report for 3rd Party Verification . November 16, 20207.Submit Agenda Item to Chancellor’s Office for February 2021 BOR . December 14, 20208.Comments Submitted to ESCO . January 4, 20219.Third Party Verification Complete . January 11, 202110.BOR Approval for Construction . February 4, 202111.Submit THECB Application . February 12, 202112.Approval by THECB Committee . April 21, 202113.Begin Construction . July 26, 202114.Substantial Completion . September 202215.Project Completion . November 2022Page 2 of 4

TARLETON STATE UNIVERSITYREVENUE FINANCING SYSTEMESCO 2021 PROJECTEnergy SavingsDatesBONDSYEAR 1YEAR 2YEAR 3YEAR 4YEAR 5YEAR 6YEAR 7YEAR 8YEAR 9YEAR 10YEAR 11YEAR 12YEAR 13YEAR 14YEAR 15YEAR 16YEAR 17YEAR 18YEAR 19YEAR 000.00845,000.00890,000.00940,000.00990,000.00 122,787.50100,787.5077,550.0053,075.0027,225.00 50.00993,075.001,017,225.00 16,522,162.50Estimated issuance costs and rounding of 218,805 are included in this schedule.Long-term rates are assumed to be 2.75%. Rates are subject to market change.Prepared by the Office of the Treasurer - Treasury Services 12/3/2020Rates are subject to market change. Amounts are preliminary estimatesthat will be revised at the time bonds are issued.Page 3 of 4Coverage1.15xAnnual ,036.251,169,808.75 19,000,486.92

TARLETON ESCO 2021Tarleton State UniversityProject No. 04-3340Page 4 of 4

Agenda Item No. 3.2AGENDA ITEM BRIEFINGSubmitted by: Billy Hamilton, Deputy Chancellor and Chief Financial OfficerThe Texas A&M University SystemSubject:Approval of the Project Scope and Budget, Appropriation for Pre-Constructionand Construction Services, and Approval for Pre-Construction and Constructionfor the TEES Detonation Research Test Facility Project, Texas A&MEngineering Experiment Station, Bryan, Texas (Project No. 28-3341)Background and Prior Actions:The TEES Detonation Research Test Facility Project was included for FY 2022 on the FY 2021– FY 2025 Texas A&M University System Capital Plan approved by the Board of Regents atthe August 2020 meeting. The project was moved to FY 2021 by letter. Project scope andcurrent 5,000,000 project budget were approved by the Board of Regents at the August 2020meeting.Proposed Board Action:(1)Approve the project scope and budget.(2)Appropriate 5,000,000 for pre-construction services, construction services, and relatedproject costs.(3)Approve pre-construction and construction of the TEES Detonation Research TestFacility Project for Texas A&M Engineering Experiment Station (TEES) at The TexasA&M University System (A&M System) RELLIS Campus.Funding/Budget Amount:Funding SourceBudget AmountAverageEstimated AnnualDebt ServiceDebt ServiceSourceCash – Governor’sUniversity ResearchInitiative (GURI) 2,500,000N/AN/ACash – Chancellor’sResearch Initiative(CRI) Award [AUF] 2,500,000N/AN/ATotal Project Funds 5,000,000N/AN/APage 1 of 2

Agenda Item No. 3.2Agenda Item BriefingProject Justification:Dr. Elaine Oran, Professor of Aerospace Engineering and holder of the O’DonnellFoundation Chair VI, will establish and lead detonation research at Texas A&M University.Dr. Oran was recruited as part of the Governor’s University Research Initiative (GURI), aneffort to bring nationally recognized researchers to Texas institutions of higher education. Theproposed TEES Detonation Research Test Facility Project will support the numerous researchthrusts overseen by Dr. Oran.Scope:The proposed TEES Detonation Research Test Facility Project will be the world’s largest researchfacility of its kind on a university campus. The centerpiece of the project is a 2-meter diameter by200-meter long (660-foot) steel detonation tube installed on concrete supports. The tube is filledwith explosive gas and test firings conducted to facilitate explosion research.The experimental data obtained will answer critical scientific questions in reactive-flow gasdynamics by addressing unanswered questions related to fuels and wave propagation in high-speedenergetic systems. These data will benefit the aerospace industry, address detonation safetyproblems, and support fire research generally, but more specifically, it will benefit the oil andchemical industries in Texas.Other Major Fiscal Impacts:None.Strategic Plan Imperative(s) this Item Advances:Approval of this agenda item will advance the A&M System’s Strategic Imperative #4 ofincreasing the A&M System’s prominence by developing a state-of-the-art detonation researchtest facility that will enhance industry-based research.Page 2 of 2

Agenda Item No. 3.2THE TEXAS A&M UNIVERSITY SYSTEMFACILITIES PLANNING AND CONSTRUCTIONOffice of the Deputy Chancellor and Chief Financial OfficerDecember 14, 2020Members, Board of RegentsThe Texas A&M University SystemSubject: Approval of the Project Scope and Budget, Appropriation for Pre-Construction and ConstructionServices, and Approval for Pre-Construction and Construction for the TEES Detonation ResearchTest Facility Project, Texas A&M Engineering Experiment Station, Bryan, Texas (Project No.28-3341).I recommend adoption of the following minute order:“The project scope and budget of 5,000,000 for the TEES Detonation Research TestFacility Project is approved.The amount of 2,500,000 is appropriated from Account No. 02-419061-00001GURI, and the amount of 2,500,000 is appropriated from Account No. 02-290253-00001CRI/GURI Match, for

the Tarleton ESCO 2021 Project at Tarleton State University (Project No. 04-3340) Proposed Board Action: (1) Amend the approved FY 2021 - FY 2025 Texas A&M University System Capital Plan to add the Tarleton ESCO 2021 Project with an FY 2021 start date and a total planning amount of 13,084,947. (2) Approve the project scope and budget.