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Text: S05600 - S05699                   Text: S Index
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Senate Amendment 5626

Amendment Text

PAG LIN
  1  1    Amend the House amendment, S-5530, to Senate File
  1  2 2405, as amended, passed, and reprinted by the Senate,
  1  3 as follows:
  1  4    #1.  Page 1, by inserting after line 20 the
  1  5 following:
  1  6    #   .  Page 3, by inserting after line 9 the
  1  7 following:
  1  8    "Sec. ___  NEW SECTION.  297A.1  DEFINITIONS.
  1  9    For the purposes of this chapter:
  1 10    1.  "Energy conservation measure" means any
  1 11 improvement, repair, or alteration of a building or
  1 12 facility owned or operated by a school district, or
  1 13 any equipment, fixture, or furnishing to be added to
  1 14 or used in any such building or facility that is
  1 15 designed to reduce energy consumption or operating
  1 16 costs.  An energy conservation measure may include one
  1 17 or more of the following:
  1 18    a.  Insulation of the building structure or systems
  1 19 within the building.
  1 20    b.  Storm windows or doors, caulking or weather
  1 21 stripping, multiglazed windows or doors, heat-
  1 22 absorbing or heat-reflective glazed and coated window
  1 23 or door systems, additional glazing, reductions in
  1 24 glass area, or other window and door system
  1 25 modifications that reduce energy consumption.
  1 26    c.  Automated or computerized energy control
  1 27 systems.
  1 28    d.  Heating, ventilating, or air conditioning
  1 29 system modifications or replacements.
  1 30    e.  Replacement or modification of lighting
  1 31 fixtures to increase the energy efficiency of the
  1 32 lighting system without increasing the overall
  1 33 illumination of a facility, unless an increase in
  1 34 illumination is necessary to conform to the applicable
  1 35 state or local building code for the lighting system
  1 36 after the proposed modifications are made.
  1 37    f.  Energy recovery systems.
  1 38    g.  Energy conservation measures that provide long-
  1 39 term operating cost reductions.
  1 40    h.  Renewable energy applications, including, but
  1 41 not limited to, solar hot water, active solar space
  1 42 conditioning, passive solar space conditioning,
  1 43 photovoltaic applications, wind energy, water power,
  1 44 tidal energy, or use of biomass fuels.
  1 45    2.  "Guaranteed energy savings contract" means a
  1 46 contract which provides for all of the following:
  1 47    a.  Performance of an energy audit, data
  1 48 collection, and other related analyses preliminary to
  1 49 the undertaking of energy conservation measures.
  1 50    b.  Evaluation and recommendation of energy
  2  1 conservation measures.
  2  2    c.  Implementation of one or more energy
  2  3 conservation measures.
  2  4    d.  Maintenance of project monitoring and data
  2  5 collection to verify postinstallation energy
  2  6 consumption and energy-related operating costs.
  2  7    The contract shall provide that all payments,
  2  8 except obligations resulting from termination of the
  2  9 contract before its expiration, are to be made over
  2 10 time and that the savings are guaranteed to the extent
  2 11 necessary to pay the costs of the energy conservation
  2 12 measures.  More than one school district may enter
  2 13 into a guaranteed energy savings contract provided
  2 14 that each school district complies with the provisions
  2 15 of this chapter.
  2 16    3.  "Operational cost savings" means improvements
  2 17 to a facility producing auditable budget reductions.
  2 18 These savings need to be clearly defined and
  2 19 documented as follows:
  2 20    a.  The savings should be related to actual costs
  2 21 that are currently budgeted and can be documented.
  2 22    b.  The anticipated improvements producing budget
  2 23 reductions, and the method of calculation of the
  2 24 operating cost savings, must be included in the
  2 25 guaranteed energy savings contract and agreed to by
  2 26 both parties.
  2 27    c.  The operational cost savings may be included in
  2 28 the qualified provider guarantee provided that the
  2 29 requirements in paragraphs "a" and "b" are met.
  2 30    4.  "Qualified provider" means a person or business
  2 31 whose employees are experienced and trained in the
  2 32 design, implementation, or installation of energy
  2 33 conservation measures.  Qualified providers must be
  2 34 certified by the national association of energy
  2 35 service companies, and all work performed in the
  2 36 detailed audit stage must be under the direct, on-site
  2 37 supervision of a certified energy manager as
  2 38 accredited by the association of energy engineers, or
  2 39 must be prequalified by the department of natural
  2 40 resources.
  2 41    5.  "Request for proposals" means a negotiated
  2 42 procurement.  A request for proposals shall be
  2 43 announced through at least one public notice appearing
  2 44 at least ten days before the request date in a
  2 45 newspaper of general circulation published in the
  2 46 school district, or if no newspaper is published in
  2 47 the school district, in a newspaper of general
  2 48 circulation in the area of the district, from a school
  2 49 district that will administer the program, requesting
  2 50 innovative solutions and proposals for energy
  3  1 conservation measures.  Proposals submitted shall be
  3  2 sealed.  The request for proposals shall include all
  3  3 of the following:
  3  4    a.  Name and address of the school district.
  3  5    b.  Name, address, title, and phone number of a
  3  6 contact person for the school district.
  3  7    c.  Notice indicating that the school district is
  3  8 requesting qualified providers to propose energy
  3  9 conservation measures through a guaranteed energy
  3 10 savings contract.
  3 11    d.  Date, time, and place where proposals must be
  3 12 received.
  3 13    e.  Evaluation criteria for assessing the
  3 14 proposals.
  3 15    f.  Any other stipulations and clarifications the
  3 16 school district may require.
  3 17    The provisions of this chapter applying to school
  3 18 districts shall also apply to community colleges
  3 19 organized and operated pursuant to the provisions of
  3 20 chapter 260C.
  3 21    Sec. ___.  NEW SECTION.  297A.2  EVALUATION OF
  3 22 PROPOSALS.
  3 23    Prior to entering into a guaranteed energy savings
  3 24 contract as provided in section 297A.3, a school
  3 25 district shall announce a request for proposals, and
  3 26 shall evaluate any sealed proposal from a qualified
  3 27 provider.  Sealed proposals shall be opened by a
  3 28 designated member or employee of the school board at a
  3 29 public meeting during which the contents of the
  3 30 proposals shall be announced.  Each person or entity
  3 31 submitting a sealed proposal must receive at least ten
  3 32 days' notice of the time and place of the public
  3 33 meeting, published pursuant to the procedure specified
  3 34 in section 297A.1, subsection 4.
  3 35    The school district shall analyze the estimates of
  3 36 all costs of installations, modifications, and
  3 37 remodeling, including, without limitation, costs of a
  3 38 preinstallation energy audit or analysis, design,
  3 39 engineering, installation, maintenance, repairs, debt
  3 40 service, conversions to a different energy or fuel
  3 41 source, and postinstallation project monitoring, data
  3 42 collection, and reporting.  The evaluation shall
  3 43 include a detailed analysis of whether the energy
  3 44 consumed or the operating costs, or both, will be
  3 45 reduced.  If technical expertise is not available on
  3 46 the school district staff, then the evaluation of the
  3 47 proposal may be done by a registered professional
  3 48 engineer, architect, or consultant with experience in
  3 49 assisting in the management of guaranteed energy
  3 50 savings contracts who is retained by the school
  4  1 district.  The school district may pay a reasonable
  4  2 fee for evaluation of the proposal or include the fee
  4  3 as part of the payments made under section 297A.4.
  4  4    Sec. ___.  NEW SECTION.  297A.3  AWARD OF
  4  5 GUARANTEED ENERGY SAVINGS CONTRACT.
  4  6    A school district shall select the qualified
  4  7 provider that best meets the needs of the district.
  4  8 After completing its evaluation of the proposals
  4  9 received pursuant to section 297A.2, the school
  4 10 district shall provide public notice of the meeting at
  4 11 which it proposes to award a guaranteed energy savings
  4 12 contract.  The notice shall contain the names of the
  4 13 parties to the proposed contract and the purpose of
  4 14 the contract.  The public notice shall be published at
  4 15 least ten days prior to the meeting, pursuant to the
  4 16 procedure specified in section 297A.1, subsection 4.
  4 17 A school district may enter into a guaranteed energy
  4 18 savings contract with a qualified provider if it finds
  4 19 after evaluating the proposal pursuant to section
  4 20 297A.2 that the amount it would spend on the energy
  4 21 conservation measures recommended in the proposal
  4 22 would not exceed the amount to be saved in either
  4 23 energy or operational costs, or both, within a ten-
  4 24 year period from the date of installation or
  4 25 modification, if the recommendations in the proposal
  4 26 are followed.
  4 27    Sec. ___.  NEW SECTION.  297A.4  QUALIFIED PROVIDER
  4 28 GUARANTEE.
  4 29    The guaranteed energy savings contract shall
  4 30 include a written guarantee of the qualified provider
  4 31 that either the anticipated energy or operational cost
  4 32 savings, or both, will meet or exceed within ten years
  4 33 the costs of the energy conservation measures.  The
  4 34 qualified provider shall annually reimburse the school
  4 35 district for any shortfall of guaranteed energy
  4 36 savings projected in the contract.  A qualified
  4 37 provider shall provide a sufficient bond to the school
  4 38 district for the installation and the faithful
  4 39 performance of all the measures included in the
  4 40 contract.  The guaranteed energy savings contract may
  4 41 provide for payments over a period of time, not to
  4 42 exceed ten years.
  4 43    Sec. ___.  NEW SECTION.  297A.5  PAYMENT
  4 44 PROVISIONS.
  4 45    A school district may enter into an installment
  4 46 payment contract or lease-purchase agreement with a
  4 47 qualified provider for the purchase and installation
  4 48 of energy conservation measures, as provided in
  4 49 section 297A.1, subsection 2, if a motion on such
  4 50 contract or agreement is adopted by the board of
  5  1 directors, and may issue certificates evidencing the
  5  2 indebtedness incurred pursuant to the contracts or
  5  3 agreements.  A guaranteed energy savings contract may
  5  4 extend beyond the fiscal year in which it becomes
  5  5 effective, and amounts remaining payable thereunder
  5  6 shall be included in the school district's annual
  5  7 school budget for each subsequent fiscal year.
  5  8    Sec. ___.  NEW SECTION.  297A.6  OPERATIONAL AND
  5  9 ENERGY COST SAVINGS.
  5 10    The qualified provider shall document the
  5 11 operational cost savings specified in the guaranteed
  5 12 energy savings contract and the school district shall
  5 13 designate and appropriate that amount for an annual
  5 14 payment of the contract.  If that annual energy
  5 15 savings are less than projected under the guaranteed
  5 16 energy savings contract, the qualified provider shall
  5 17 pay the difference as provided in section 297A.4.
  5 18    Cost savings verification methodology shall be
  5 19 documented in the sealed proposal received from a
  5 20 prospective qualified provider, and in the subsequent
  5 21 guaranteed energy savings contract.  This methodology
  5 22 shall be independently auditable and in accordance
  5 23 with federal energy management program measurement and
  5 24 verification guidelines for federal energy projects.
  5 25    Sec. ___.  NEW SECTION.  297A.7  FUNDING.
  5 26    1.  A school district may use funds from either its
  5 27 general fund or debt service fund to repay obligations
  5 28 relating to a guaranteed energy savings contract,
  5 29 including purchases using installment payment
  5 30 contracts or lease-purchase agreements.
  5 31    2.  For the purpose of paying obligations incurred
  5 32 pursuant to a guaranteed energy savings contract, a
  5 33 school district is authorized to:
  5 34    a.  Issue negotiable, interest-bearing school
  5 35 bonds, pursuant to section 298.21, subsections 2 and
  5 36 3, and utilize energy savings resulting from
  5 37 implementation of the guaranteed energy savings
  5 38 contract for principal and interest repayment.  The
  5 39 provisions of sections 298.22 through 298.24 shall
  5 40 apply regarding the form, rate of interest,
  5 41 registration, redemption, and recording of bond issues
  5 42 pursuant to this subsection, with the exception that
  5 43 the maximum period during which principal on the bonds
  5 44 is payable shall not exceed a ten-year period.
  5 45    b.  Enter into energy loan fund financing
  5 46 arrangements with the department of natural resources
  5 47 pursuant to section 473.20.  For the purposes of this
  5 48 paragraph, the requirement in section 473.20,
  5 49 subsection 1, that loans shall not be made for energy
  5 50 conservation measures that require more than an
  6  1 average of six years to recoup costs shall not apply.
  6  2    c.  Borrow money and enter into loan agreements
  6  3 with a bank, investment banker, trust company, or
  6  4 other third-party lender, and utilize energy savings
  6  5 resulting from implementation of the guaranteed energy
  6  6 savings contract for principal and interest repayment.
  6  7 The maturation date of the loan shall not exceed the
  6  8 duration of the guaranteed energy savings contract,
  6  9 and the loan shall bear interest at a rate which does
  6 10 not exceed the limits under chapter 74A.  A loan
  6 11 agreement entered into pursuant to this section shall
  6 12 be in a form as the board of directors shall approve
  6 13 by resolution.
  6 14    3.  State aid payments to a school district
  6 15 pursuant to section 257.16, and other amounts
  6 16 available for distribution to or reimbursement of a
  6 17 school district, shall not be reduced as a result of
  6 18 energy savings realized from a guaranteed energy
  6 19 savings contract, installment payment contract, or a
  6 20 lease-purchase agreement for the purchase and
  6 21 installation of energy conservation measures.
  6 22    Sec. ___.  Administrative rules relating to the
  6 23 implementation of this Act shall be established in
  6 24 collaboration between the department of education and
  6 25 the department of natural resources."
  6 26    #2.  Title page, line 3, by inserting after the
  6 27 word "district" the following:  ", and for the
  6 28 establishment of a school energy conservation program
  6 29 for public buildings by a school district."" 
  6 30 
  6 31 
  6 32                               
  6 33 JEFF ANGELO 
  6 34 SF 2405.502 77
  6 35 rn/jw/28
     

Text: S05625                            Text: S05627
Text: S05600 - S05699                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

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