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Senate Study Bill 1189

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  297A.1  DEFINITIONS.
  1  2    For the purposes of this chapter:
  1  3    1.  "Energy conservation measure" means any improvement,
  1  4 repair, or alteration of a building or facility owned or
  1  5 operated by a school corporation, or any equipment, fixture,
  1  6 or furnishing to be added to or used in any such building or
  1  7 facility that is designed to reduce energy consumption or
  1  8 operating costs.  An energy conservation measure may include
  1  9 one or more of the following:
  1 10    a.  Insulation of the building structure or systems within
  1 11 the building.
  1 12    b.  Storm windows or doors, caulking or weather stripping,
  1 13 multiglazed windows or doors, heat-absorbing or heat-
  1 14 reflective glazed and coated window or door systems,
  1 15 additional glazing, reductions in glass area, or other window
  1 16 and door system modifications that reduce energy consumption.
  1 17    c.  Automated or computerized energy control systems.
  1 18    d.  Heating, ventilating, or air conditioning system
  1 19 modifications or replacements.
  1 20    e.  Replacement or modification of lighting fixtures to
  1 21 increase the energy efficiency of the lighting system without
  1 22 increasing the overall illumination of a facility, unless an
  1 23 increase in illumination is necessary to conform to the
  1 24 applicable state or local building code for the lighting
  1 25 system after the proposed modifications are made.
  1 26    f.  Energy recovery systems.
  1 27    g.  Energy conservation measures that provide long-term
  1 28 operating cost reductions.
  1 29    2.  "Guaranteed energy savings contract" means a contract
  1 30 which provides for all of the following:
  1 31    a.  Performance of an energy audit, data collection, and
  1 32 other related analyses preliminary to the undertaking of
  1 33 energy conservation measures.
  1 34    b.  Evaluation and recommendation of energy conservation
  1 35 measures.
  2  1    c.  Implementation of one or more energy conservation
  2  2 measures.
  2  3    d.  Maintenance of project monitoring and data collection
  2  4 to verify postinstallation energy consumption and energy-
  2  5 related operating costs.
  2  6    The contract shall provide that all payments, except
  2  7 obligations resulting from termination of the contract before
  2  8 its expiration, are to be made over time and that the savings
  2  9 are guaranteed to the extent necessary to pay the costs of the
  2 10 energy conservation measures.  More than one school
  2 11 corporation may enter into a guaranteed energy savings
  2 12 contract provided that each school corporation complies with
  2 13 the provisions of this chapter.
  2 14    3.  "Qualified provider" means a person or business whose
  2 15 employees are experienced and trained in the design,
  2 16 implementation, or installation of energy conservation
  2 17 measures.  The minimum training required for any person or
  2 18 employee pursuant to this subsection shall be the satisfactory
  2 19 completion of at least forty hours of course instruction
  2 20 dealing with energy conservation measures.
  2 21    4.  "Request for proposals" means a negotiated procurement.
  2 22    5.  "School corporation" means a school district as
  2 23 described in chapter 274, an area education agency as
  2 24 established in chapter 273, or a "community college" as
  2 25 defined in chapter 260C.
  2 26    Sec. 2.  NEW SECTION.  297A.2  REQUESTS FOR PROPOSALS –
  2 27 EVALUATION.
  2 28    1.  Prior to entering into a guaranteed energy savings
  2 29 contract as provided in section 297A.3, a school corporation
  2 30 shall announce a request for proposals.  A request for
  2 31 proposals shall be announced through at least one public
  2 32 notice appearing at least ten days before the request date in
  2 33 a newspaper of general circulation published in the area of
  2 34 the school corporation, by a school corporation that will
  2 35 administer the program, requesting innovative solutions and
  3  1 proposals for energy conservation measures.  Proposals
  3  2 submitted shall be sealed.  The request for proposals shall
  3  3 include all of the following:
  3  4    a.  Name and address of the school corporation.
  3  5    b.  Name, address, title, and phone number of a contact
  3  6 person for the school corporation.
  3  7    c.  Notice indicating that the school corporation is
  3  8 requesting qualified providers to propose energy conservation
  3  9 measures through a guaranteed energy savings contract.
  3 10    d.  Date, time, and place where proposals must be received.
  3 11    e.  Evaluation criteria for assessing the proposals.
  3 12    f.  Any other stipulations and clarifications the school
  3 13 corporation may require.
  3 14    2.  The school corporation shall evaluate any sealed
  3 15 proposal from a qualified provider.  Sealed proposals shall be
  3 16 opened by a designated member or employee or governing body of
  3 17 the school corporation at a public meeting during which the
  3 18 contents of the proposals shall be announced.  Each person or
  3 19 entity submitting a sealed proposal must receive at least ten
  3 20 days' notice of the time and place of the public meeting,
  3 21 published pursuant to the procedure specified in this section.
  3 22    The school corporation shall analyze the estimates of all
  3 23 costs of installations, modifications, and remodeling,
  3 24 including, without limitation, costs of a preinstallation
  3 25 energy audit or analysis, design, engineering, installation,
  3 26 maintenance, repairs, debt service, conversions to a different
  3 27 energy or fuel source, and postinstallation project
  3 28 monitoring, data collection, and reporting.  The evaluation
  3 29 shall include a detailed analysis of whether the energy
  3 30 consumed or the operating costs, or both, will be reduced.  If
  3 31 technical expertise is not available on the school corporation
  3 32 staff, then the evaluation of the proposal may be done by a
  3 33 registered professional engineer or architect who is retained
  3 34 by the school corporation.  The school corporation may pay a
  3 35 reasonable fee for evaluation of the proposal or include the
  4  1 fee as part of the payments made under section 297A.4.
  4  2    Sec. 3.  NEW SECTION.  297A.3  AWARD OF GUARANTEED ENERGY
  4  3 SAVINGS CONTRACT.
  4  4    A school corporation shall select the qualified provider
  4  5 that best meets the needs of the school corporation.  After
  4  6 completing its evaluation of the proposals received pursuant
  4  7 to section 297A.2, the school corporation shall provide public
  4  8 notice of the meeting at which it proposes to award a
  4  9 guaranteed energy savings contract.  The notice shall contain
  4 10 the names of the parties to the proposed contract and the
  4 11 purpose of the contract.  The public notice shall be published
  4 12 at least ten days prior to the meeting, pursuant to the
  4 13 procedure specified in section 297A.2.  A school corporation
  4 14 may enter into a guaranteed energy savings contract with a
  4 15 qualified provider if it finds after evaluating the proposal
  4 16 pursuant to section 297A.2 that the amount it would spend on
  4 17 the energy conservation measures recommended in the proposal
  4 18 would not exceed the amount to be saved in either energy or
  4 19 operational costs, or both, within a ten-year period from the
  4 20 date of installation or modification, if the recommendations
  4 21 in the proposal are followed.
  4 22    Sec. 4.  NEW SECTION.  297A.4  QUALIFIED PROVIDER
  4 23 GUARANTEE.
  4 24    The guaranteed energy savings contract shall include a
  4 25 written guarantee of the qualified provider that either the
  4 26 anticipated energy or operational cost savings, or both, will
  4 27 meet or exceed within ten years the costs of the energy
  4 28 conservation measures.  The qualified provider shall reimburse
  4 29 the school corporation for any shortfall of guaranteed energy
  4 30 savings projected in the contract.  A qualified provider shall
  4 31 provide a sufficient bond to the school corporation for the
  4 32 installation and the faithful performance of all the measures
  4 33 included in the contract.  The guaranteed energy savings
  4 34 contract may provide for payments over a period of time, not
  4 35 to exceed ten years.
  5  1    Sec. 5.  NEW SECTION.  297A.5  PAYMENT PROVISIONS.
  5  2    A school corporation may enter into an installment payment
  5  3 contract or lease-purchase agreement with a qualified provider
  5  4 for the purchase and installation of energy conservation
  5  5 measures, if a motion on such contract or agreement is adopted
  5  6 by the governing body of the school corporation, and may issue
  5  7 certificates evidencing the indebtedness incurred pursuant to
  5  8 the contracts or agreements.  A guaranteed energy savings
  5  9 contract may extend beyond the fiscal year in which it becomes
  5 10 effective, and amounts remaining payable thereunder shall be
  5 11 included in the school corporation's annual budget for each
  5 12 subsequent fiscal year.
  5 13    Sec. 6.  NEW SECTION.  297A.6  OPERATIONAL AND ENERGY COST
  5 14 SAVINGS.
  5 15    A school corporation shall document the operational and
  5 16 energy cost savings specified in the guaranteed energy savings
  5 17 contract and designate and appropriate that amount for an
  5 18 annual payment of the contract.  If that annual energy savings
  5 19 is less than projected under the guaranteed energy savings
  5 20 contract, the qualified provider shall pay the difference as
  5 21 provided in section 297A.4.
  5 22    Sec. 7.  NEW SECTION.  297A.7  SCHOOL DISTRICT FUNDING.
  5 23    1.  A school district may use funds from either its general
  5 24 fund or debt service fund to repay obligations relating to a
  5 25 guaranteed energy savings contract, including purchases using
  5 26 installment payment contracts or lease-purchase agreements.
  5 27    2.  For the purpose of paying obligations incurred pursuant
  5 28 to a guaranteed energy savings contract, a school district is
  5 29 authorized to:
  5 30    a.  Issue negotiable, interest-bearing school bonds,
  5 31 pursuant to section 298.21, subsections 2 and 3, and utilize
  5 32 energy savings resulting from implementation of the guaranteed
  5 33 energy savings contract for principal and interest repayment.
  5 34 The provisions of sections 298.22 through 298.24 shall apply
  5 35 regarding the form, rate of interest, registration,
  6  1 redemption, and recording of bond issues pursuant to this
  6  2 subsection, with the exception that the maximum period during
  6  3 which principal on the bonds is payable shall not exceed a
  6  4 ten-year period.
  6  5    b.  Enter into energy loan fund financing arrangements with
  6  6 the department of natural resources pursuant to section
  6  7 473.20.  For the purposes of this paragraph, the requirement
  6  8 in section 473.20, subsection 1, that loans shall not be made
  6  9 for energy conservation measures that require more than an
  6 10 average of six years to recoup costs shall not apply.
  6 11    c.  Borrow money and enter into loan agreements with a
  6 12 bank, investment banker, trust company, or other third-party
  6 13 lender, and utilize energy savings resulting from
  6 14 implementation of the guaranteed energy savings contract for
  6 15 principal and interest repayment.  The maturation date of the
  6 16 loan shall not exceed the duration of the guaranteed energy
  6 17 savings contract, and the loan shall bear interest at a rate
  6 18 which does not exceed the limits under chapter 74A.  A loan
  6 19 agreement entered into pursuant to this section shall be in a
  6 20 form as the board of directors shall approve by resolution.
  6 21    3.  State aid payments to a school district pursuant to
  6 22 section 257.16, and other amounts available for distribution
  6 23 to or reimbursement of a school district, shall not be reduced
  6 24 as a result of energy savings realized from a guaranteed
  6 25 energy savings contract, installment payment contract, or a
  6 26 lease-purchase agreement for the purchase and installation of
  6 27 energy conservation measures.  
  6 28                           EXPLANATION
  6 29    This bill provides for the creation of a school energy
  6 30 conservation program designed to facilitate the ability of
  6 31 school corporations to undertake energy conservation measures
  6 32 involving school building improvements, repairs, or
  6 33 alterations, or to add equipment, fixtures, or furnishings, by
  6 34 means of contracting with a service provider that guarantees
  6 35 energy or operational cost savings.
  7  1    The bill provides a definition of an energy conservation
  7  2 measure to be undertaken by a school corporation, which
  7  3 includes insulation, caulking or weather stripping, adding
  7  4 energy control systems, adding, modifying, or replacing
  7  5 heating, ventilating, or air conditioning systems, replacement
  7  6 or modification of lighting fixtures, adding energy recovery
  7  7 systems, or additional energy conservation measures that
  7  8 provide long-term operating cost reductions.  The bill
  7  9 provides that a school corporation which seeks to undertake
  7 10 one or more energy conservation measures can enter into a
  7 11 guaranteed energy savings contract with a qualified provider.
  7 12 The bill defines a guaranteed energy savings contract to
  7 13 include a contract with a qualified provider for the
  7 14 performance of energy audits and preliminary analyses, the
  7 15 evaluation, recommendation, and implementation of energy
  7 16 conservation measures, and postimplementation data collection
  7 17 and recordkeeping.  More than one school corporation can enter
  7 18 into a guaranteed energy savings contract with a qualified
  7 19 provider, if each school corporation adheres to the provisions
  7 20 in the bill.  The bill defines a qualified provider as a
  7 21 person or business which is experienced in the design,
  7 22 implementation, and installation of energy conservation
  7 23 measures, and which person or business submits a proposal to
  7 24 enter into a guaranteed energy savings contract with a school
  7 25 corporation.  The bill specifies procedures for public notice
  7 26 regarding a request for proposals from qualified providers,
  7 27 evaluation procedures and criteria regarding the requests
  7 28 submitted, and procedures regarding the awarding of a contract
  7 29 by the school corporation.  The bill defines "school
  7 30 corporation" as a school district, an area education agency,
  7 31 or a community college.
  7 32    The bill provides that a guaranteed energy savings contract
  7 33 shall contain a written guarantee from the qualified provider
  7 34 that the anticipated energy or operational cost savings to the
  7 35 school corporation will at least equal the cost of the energy
  8  1 conservation measures undertaken by the school corporation
  8  2 within 10 years, and that the provider agrees to reimburse the
  8  3 school corporation for any energy savings shortfall.  The
  8  4 provider is required to provide a bond to the school
  8  5 corporation for faithful performance of the contract.
  8  6    The bill provides that a school corporation may enter into
  8  7 an installment payment contract or lease-purchase agreement
  8  8 with a qualified provider for the purchase and installation of
  8  9 an energy conservation measure, if approved by the governing
  8 10 body of a school corporation.  The bill provides that a school
  8 11 district may use funds from either its general fund or debt
  8 12 service fund for qualified provider payments.  The bill
  8 13 further provides that a school district is authorized to issue
  8 14 school bonds pursuant to Code section 298.21, subsections 2
  8 15 and 3, and obtain third-party financing, and utilize energy
  8 16 savings resulting from implementation of the guaranteed energy
  8 17 savings contract for principal and interest repayment, and
  8 18 enter into energy loan fund financing arrangements with the
  8 19 department of natural resources pursuant to Code section
  8 20 473.20.  The bill additionally provides that state aid
  8 21 payments to a school district pursuant to Code section 257.16,
  8 22 and other amounts available for distribution to or
  8 23 reimbursement of a school district, will not be reduced as a
  8 24 result of energy savings realized from a guaranteed energy
  8 25 savings contract, installment payment contract, or a lease-
  8 26 purchase agreement for the purchase and installation of energy
  8 27 conservation measures.  
  8 28 LSB 2541SC 79
  8 29 rn/pj/5
     

Text: SSB01188                          Text: SSB01190
Text: SSB01100 - SSB01199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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