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House Study Bill 214

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  297A.1  STATE POLICY.
  1  2    The general assembly finds that investment in energy
  1  3 conservation measures by educational facilities can reduce the
  1  4 amount of energy consumed by the facilities and produce both
  1  5 immediate and long-term cost savings.  It is the policy of
  1  6 this state to encourage school districts, area education
  1  7 agencies, and community colleges to invest in energy
  1  8 conservation measures that reduce energy consumption, produce
  1  9 a cost savings, and improve the quality of indoor air, and
  1 10 when economically feasible, to build, operate, maintain, or
  1 11 renovate educational facilities in a manner which will
  1 12 minimize energy consumption and maximize energy savings.  It
  1 13 is additionally the policy of this state to encourage
  1 14 reinvestment of energy savings resulting from energy
  1 15 conservation measures into additional and continued energy
  1 16 conservation efforts.
  1 17    Sec. 2.  NEW SECTION.  297A.2  DEFINITIONS.
  1 18    For the purposes of this chapter:
  1 19    1.  "Energy conservation measure" means a training program,
  1 20 facility alteration, or equipment to be used in new
  1 21 construction, including an addition to an existing facility,
  1 22 that reduces energy costs and includes, but is not limited to,
  1 23 the following:
  1 24    a.  Insulation of the facility structure or systems within
  1 25 the facility.
  1 26    b.  Storm windows or doors, caulking or weather stripping,
  1 27 multiglazed windows or doors, heat-absorbing or heat-
  1 28 reflective glazed and coated window or door systems,
  1 29 additional glazing, reductions in glass area, or other window
  1 30 and door system modifications that reduce energy consumption.
  1 31    c.  Automated or computerized energy control systems.
  1 32    d.  Heating, ventilating, or air conditioning system
  1 33 modifications or replacements.
  1 34    e.  Replacement or modification of lighting fixtures to
  1 35 increase the energy efficiency of the lighting system which,
  2  1 at a minimum, shall conform to the applicable state or local
  2  2 building code.
  2  3    f.  Energy recovery systems.
  2  4    g.  Cogeneration systems that produce steam or forms of
  2  5 energy such as heat, as well as electricity, for use primarily
  2  6 within a facility or complex of facilities.
  2  7    h.  Renewable energy systems, such as solar, biomass, and
  2  8 wind.
  2  9    i.  Devices which reduce water consumption or sewer
  2 10 charges.
  2 11    j.  Any measure not otherwise defined that provides long-
  2 12 term operating cost reductions and significantly reduces
  2 13 energy consumption.
  2 14    2.  "Energy cost savings" means any of the following:
  2 15    a.  A measured reduction in fuel, energy, or operation and
  2 16 maintenance costs created from the implementation of one or
  2 17 more energy conservation measures when compared with an
  2 18 established baseline for previous fuel, energy, or operation
  2 19 and maintenance costs.
  2 20    b.  For new construction, a projected reduction in fuel,
  2 21 energy, or operation and maintenance costs created from the
  2 22 implementation of one or more energy conservation measures
  2 23 when compared with the projected fuel, energy, or operation
  2 24 and maintenance costs for equipment if the minimum standards
  2 25 of the state uniform building code for public educational
  2 26 facilities construction were implemented and verified by a
  2 27 professional engineer licensed by the state.
  2 28    3.  "Energy performance-based contract" means a contract
  2 29 for the evaluation, recommendation, and implementation of
  2 30 energy conservation measures which includes, at a minimum all
  2 31 of the following:
  2 32    a.  Performance of an energy audit, data collection, and
  2 33 other related analyses preliminary to the undertaking of
  2 34 energy conservation measures, and maintenance of project
  2 35 monitoring and data collection to verify postinstallation
  3  1 energy consumption and energy-related operating costs.
  3  2    b.  The design and installation of equipment to implement
  3  3 one or more energy conservation measures, and, if applicable,
  3  4 operation and maintenance of such measures.
  3  5    c.  The projected amount of any actual annual energy cost
  3  6 savings.  This amount must be projected to meet or exceed
  3  7 total annual contract payments made by the school corporation
  3  8 for the contract.
  3  9    d.  Financing charges to be incurred by the school
  3 10 corporation over the life of the contract.
  3 11    4.  "Qualified provider" means a person or business whose
  3 12 employees are experienced and trained in the design,
  3 13 implementation, or installation of energy conservation
  3 14 measures.  The minimum training required for any such person
  3 15 or employee under this chapter shall be the satisfactory
  3 16 completion of at least forty hours of course instruction
  3 17 dealing with energy conservation measures.
  3 18    5.  "School corporation" means a school district as
  3 19 described in chapter 274, an area education agency as
  3 20 established in chapter 273, or a community college as defined
  3 21 in chapter 260C.
  3 22    Sec. 3.  NEW SECTION.  297A.3  REQUESTS FOR PROPOSALS –
  3 23 EVALUATION.
  3 24    1.  Prior to entering into an energy performance-based
  3 25 contract as provided in section 297A.4, a school corporation
  3 26 shall announce a request for proposals.  A request for
  3 27 proposals shall be announced through at least one public
  3 28 notice appearing at least ten days before the proposal
  3 29 submission date in a newspaper of general circulation
  3 30 published in the area of the school corporation, by a school
  3 31 corporation that will administer the program, requesting
  3 32 innovative solutions and proposals for energy conservation
  3 33 measures.  Proposals submitted shall be sealed.  The request
  3 34 for proposals shall include all of the following:
  3 35    a.  Name and address of the school corporation.
  4  1    b.  Name, address, title, and telephone number of a contact
  4  2 person for the school corporation.
  4  3    c.  Notice indicating that the school corporation is
  4  4 requesting qualified providers to propose energy conservation
  4  5 measures to be provided pursuant to an energy performance-
  4  6 based contract.
  4  7    d.  Date, time, and place where proposals must be received.
  4  8    e.  Evaluation criteria for assessing the proposals.
  4  9    f.  Any other stipulations and clarifications the school
  4 10 corporation may require.
  4 11    2.  The school corporation shall evaluate any sealed
  4 12 proposal from a qualified provider.  Sealed proposals shall be
  4 13 opened by a designated member or employee or governing body of
  4 14 the school corporation at a public meeting during which the
  4 15 contents of the proposals shall be announced.  Each person or
  4 16 entity submitting a sealed proposal must receive at least ten
  4 17 days' notice of the time and place of the public meeting,
  4 18 published pursuant to the procedure specified in this section.
  4 19    The school corporation shall analyze the estimates of all
  4 20 costs of installations, modifications, and remodeling,
  4 21 including, without limitation, costs of a preinstallation
  4 22 energy audit or analysis, design, engineering, installation,
  4 23 maintenance, repairs, debt service, conversions to a different
  4 24 energy or fuel source, and postinstallation project
  4 25 monitoring, data collection, and reporting.  The evaluation
  4 26 shall include a detailed analysis of whether the energy
  4 27 consumed or the operating costs, or both, will be reduced, and
  4 28 shall be reviewed by either the department of education or the
  4 29 department of natural resources, or verified by a licensed
  4 30 professional engineer.
  4 31    Sec. 4.  NEW SECTION.  297A.4  AWARD OF GUARANTEED ENERGY
  4 32 COST SAVINGS CONTRACT.
  4 33    A school corporation shall select the qualified provider
  4 34 that best meets the needs of the school corporation.  After
  4 35 completing its evaluation of the proposals received pursuant
  5  1 to section 297A.3, the school corporation shall provide public
  5  2 notice of the meeting at which it proposes to award a
  5  3 guaranteed energy cost savings contract.  The notice shall
  5  4 contain the names of the parties to the proposed contract and
  5  5 the purpose of the contract.  The public notice shall be
  5  6 published at least ten days prior to the meeting, pursuant to
  5  7 the procedure specified in section 297A.3.  A school
  5  8 corporation may enter into a guaranteed energy cost savings
  5  9 contract with a qualified provider if it finds after
  5 10 evaluating the proposal pursuant to section 297A.3 that the
  5 11 amount it would spend on the energy conservation measures
  5 12 recommended in the proposal would not exceed the amount to be
  5 13 saved in either energy or operational costs, or both, within a
  5 14 twenty-year period from the date of installation or
  5 15 modification, based on life-cycle costing calculations, if the
  5 16 recommendations in the proposal are followed.
  5 17    Sec. 5.  NEW SECTION.  297A.5  QUALIFIED PROVIDER
  5 18 GUARANTEE.
  5 19    The guaranteed energy cost savings contract shall include a
  5 20 written guarantee of the qualified provider that either the
  5 21 anticipated energy or operational cost savings, or both, will
  5 22 meet or exceed within twenty years the costs of the energy
  5 23 conservation measures.  The qualified provider shall reimburse
  5 24 the school corporation for any shortfall of guaranteed energy
  5 25 cost savings projected in the contract.  A qualified provider
  5 26 shall provide to the school corporation a one hundred percent
  5 27 public construction bond for the installation and the faithful
  5 28 performance of all the measures included in the contract and
  5 29 for guaranteed savings for the length of the contract.  The
  5 30 guaranteed energy cost savings contract may provide for
  5 31 payments over a period of time, not to exceed twenty years.
  5 32    Sec. 6.  NEW SECTION.  297A.6  PAYMENT PROVISIONS.
  5 33    1.  A school corporation may enter into an installment
  5 34 payment contract or lease-purchase agreement with a qualified
  5 35 provider for the purchase and installation of energy
  6  1 conservation measures, if a motion on such a contract or
  6  2 agreement is adopted by the governing body of the school
  6  3 corporation.  The contract shall provide for payments of not
  6  4 less than one-twentieth of the price to be paid for purchase
  6  5 and installation within two years from the date of the
  6  6 complete installation and acceptance by the school
  6  7 corporation, and the remaining costs shall be paid at least
  6  8 quarterly, not to exceed a twenty-year duration based on life-
  6  9 cycle costing calculations.
  6 10    2.  Energy performance-based contracts may extend beyond
  6 11 the fiscal year in which they become effective, and may be
  6 12 automatically renewed annually for up to twenty years, subject
  6 13 to annual appropriations from the governing body of the school
  6 14 corporation based upon continued realized energy cost savings.
  6 15 An energy performance-based contract shall stipulate that the
  6 16 agreement does not constitute a debt, liability, or obligation
  6 17 on the part of the state, or a school corporation facing an
  6 18 annual energy cost savings shortfall as provided in section
  6 19 297A.5.
  6 20    3.  The contract shall include a guarantee by the qualified
  6 21 provider that annual energy cost savings will meet or exceed
  6 22 the amortized cost of energy conservation measures.  The
  6 23 qualified provider shall provide to the school corporation an
  6 24 annual reconciliation of the guaranteed energy cost savings,
  6 25 and shall be liable for any annual energy cost savings
  6 26 shortfall that may occur as provided in section 297A.5.  
  6 27                           EXPLANATION
  6 28    This bill provides for the creation of a school energy
  6 29 conservation program designed to facilitate the ability of
  6 30 school corporations to undertake energy conservation measures
  6 31 involving training programs, school facility improvements or
  6 32 alterations, or new construction or additions, by means of
  6 33 contracting with a service provider that guarantees energy or
  6 34 operational cost savings.
  6 35    The bill provides a definition of an energy conservation
  7  1 measure to be undertaken by a school corporation, which
  7  2 includes insulation, caulking or weather stripping, adding
  7  3 energy control systems, adding, modifying, or replacing
  7  4 heating, ventilating, or air conditioning systems, replacement
  7  5 or modification of lighting fixtures, adding energy recovery
  7  6 systems, cogeneration systems, renewable energy systems,
  7  7 devices which reduce water consumption or sewer charges, or
  7  8 additional energy conservation measures that provide long-term
  7  9 operating cost reductions.  The bill provides that a school
  7 10 corporation which seeks to undertake one or more energy
  7 11 conservation measures can enter into a guaranteed energy cost
  7 12 savings contract with a qualified provider.  The bill defines
  7 13 a guaranteed energy cost savings contract to include a
  7 14 contract with a qualified provider for the performance of
  7 15 energy audits and preliminary analyses, the evaluation,
  7 16 recommendation, and implementation of energy conservation
  7 17 measures, and postimplementation data collection and
  7 18 recordkeeping.  The bill defines a qualified provider as a
  7 19 person or business which is experienced in the design,
  7 20 implementation, and installation of energy conservation
  7 21 measures, and which person or business submits a proposal to
  7 22 enter into a guaranteed energy cost savings contract with a
  7 23 school corporation.  The bill specifies procedures for public
  7 24 notice regarding a request for proposals from qualified
  7 25 providers, evaluation procedures and criteria regarding the
  7 26 proposals submitted, and procedures regarding the awarding of
  7 27 a contract by the school corporation.  The bill defines
  7 28 "school corporation" as a school district, an area education
  7 29 agency, or a community college.
  7 30    The bill provides that a guaranteed energy cost savings
  7 31 contract shall contain a written guarantee from the qualified
  7 32 provider that the anticipated energy or operational cost
  7 33 savings to the school corporation will at least equal the cost
  7 34 of the energy conservation measures undertaken by the school
  7 35 corporation within 20 years, and that the provider agrees to
  8  1 reimburse the school corporation for any energy cost savings
  8  2 shortfall.  The provider is required to provide a bond to the
  8  3 school corporation for faithful performance of the contract.
  8  4    The contract shall provide for payment of not less than
  8  5 one-twentieth of the purchase and installation price within
  8  6 two years from original installation, with quarterly payments
  8  7 thereafter for up to 20 years' total duration.
  8  8    The bill provides that the contract may extend beyond the
  8  9 fiscal year in which it becomes effective and may be
  8 10 automatically renewed annually for up to 20 years, subject to
  8 11 annual appropriations from the governing body of the school
  8 12 corporation based upon continued realized energy cost savings.
  8 13 The bill provides that the contract shall stipulate that the
  8 14 agreement does not constitute a debt, liability, or obligation
  8 15 on the part of the state, or a school corporation experiencing
  8 16 an energy cost savings shortfall, and include a guarantee by
  8 17 the qualified provider that annual energy cost savings will
  8 18 meet or exceed the amortized cost of energy conservation
  8 19 measures.  The bill provides that the qualified provider shall
  8 20 provide to the school corporation an annual reconciliation of
  8 21 the guaranteed energy cost savings, and shall be liable for
  8 22 any annual shortfall which may occur.  
  8 23 LSB 2636YC 79
  8 24 rn/cf/24
     

Text: HSB00213                          Text: HSB00215
Text: HSB00200 - HSB00299               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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