Text: HF00509 Text: HF00511 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 297A.l STATE POLICY. 1 2 The general assembly finds that investment in energy 1 3 conservation measures by public 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, community colleges, public universities, 1 8 municipalities, counties, and state institutions to invest in 1 9 facility technology infrastructure upgrades and energy 1 10 conservation measures that reduce energy consumption, produce 1 11 a cost savings, or improve the quality of indoor air, or when 1 12 economically feasible, to build, operate, maintain, or 1 13 renovate public facilities in a manner which will minimize 1 14 energy consumption or maximize energy savings. It is 1 15 additionally the policy of this state to encourage 1 16 reinvestment of energy savings resulting from energy 1 17 conservation measures and facility technology infrastructure 1 18 into additional and continued energy conservation efforts. 1 19 The department of natural resources, in consultation with the 1 20 department of education, shall adopt rules pursuant to chapter 1 21 17A for the administration of sections 297A.2, 297A.3, and 1 22 297A.4. 1 23 Sec. 2. NEW SECTION. 297A.2 DEFINITIONS. 1 24 As used in this chapter, unless the context otherwise 1 25 requires: 1 26 1. "Energy conservation measure and facility technology 1 27 infrastructure" means a training program, facility alteration, 1 28 or equipment to be used in new construction, including an 1 29 addition to an existing facility, that reduces energy costs 1 30 and includes, but is not limited to, any of the following: 1 31 a. Insulation of the facility structure or systems within 1 32 the facility. 1 33 b. Storm windows or doors, caulking or weather stripping, 1 34 multiple-glazed windows or doors, heat-absorbing or heat- 1 35 reflective glazed and coated window or door systems, 2 1 additional glazing, reductions in glass area, or other window 2 2 and door system modifications that reduce energy consumption. 2 3 c. Automated or computerized energy control systems 2 4 including related software-required network communication 2 5 wiring, computer devices, wiring and support services for 2 6 building maintenance or delivery of energy conservation 2 7 services. Any cost for support services that will continue 2 8 beyond the length of the contract shall be identified 2 9 specifically in the energy performance-based evaluation. 2 10 Energy control system technology infrastructure may also be 2 11 used, as applicable, for other public corporation technology 2 12 needs. Additional technology infrastructure improvements may 2 13 be implemented if the cost is supported by the energy savings 2 14 generated by other energy conservation measures and facility 2 15 technology infrastructure. 2 16 d. Heating, ventilating, or air conditioning system 2 17 modifications or replacements. 2 18 e. Replacement or modification of lighting fixtures to 2 19 increase the energy efficiency of the lighting system which, 2 20 at a minimum, shall conform to the applicable state or local 2 21 building code. 2 22 f. Energy recovery systems. 2 23 g. Renewable energy systems, such as solar, biomass, and 2 24 wind. 2 25 h. Any measure not otherwise defined that produces energy 2 26 cost savings or British thermal unit reductions. 2 27 2. "Energy cost savings" means a measured reduction in 2 28 fuel, energy, or operation and maintenance cost savings 2 29 created from the implementation of one or more energy 2 30 conservation measures and facility technology infrastructure 2 31 when compared with an established baseline for previous fuel, 2 32 energy, or operation and maintenance costs. 2 33 3. "Energy performance-based contract" means a contract 2 34 for the recommendation and implementation of energy 2 35 conservation measures and facility technology infrastructure 3 1 which includes, at a minimum, all of the following: 3 2 a. The design and installation of equipment to implement 3 3 one or more energy conservation measures and facility 3 4 technology infrastructure, and, if applicable, operation and 3 5 maintenance of such measures. 3 6 b. The amount of any actual annual energy and operational 3 7 cost savings. The amount shall be guaranteed by the qualified 3 8 provider and verified by a professional engineer or registered 3 9 architect who is not employed or has contracted with the 3 10 qualified provider. The verification shall occur using a 3 11 process established by the department of natural resources. 3 12 4. "Energy performance-based evaluation" means performance 3 13 of an energy audit, data collection, or other related analyses 3 14 preliminary to the undertaking of energy conservation measures 3 15 and facility technology infrastructure, and maintenance of 3 16 project monitoring and data collection to verify 3 17 postinstallation energy consumption and energy-related 3 18 operating costs. The department of natural resources shall 3 19 establish guidelines that consider federal energy management 3 20 program guidelines. 3 21 5. "Maintenance cost savings" means auditable operating 3 22 expenses eliminated and future capital replacement 3 23 expenditures avoided as a result of new equipment installed or 3 24 services performed by the qualified provider. 3 25 6. "Public corporation" means a school district as 3 26 described in chapter 274, a community college as defined in 3 27 chapter 260C, a public university, city, county, or state 3 28 agency. 3 29 7. "Qualified provider" means a business or person that 3 30 has been qualified by the department of natural resources. 3 31 The department of natural resources shall adopt rules pursuant 3 32 to chapter 17A to establish a qualifications process. The 3 33 process shall consider accreditation by the national 3 34 association of energy service companies, certification by the 3 35 association of energy engineers, or professional licensure as 4 1 an engineer or registered architect in Iowa. A business or 4 2 person accredited by the national association of energy 4 3 service companies shall be qualified in Iowa. 4 4 Sec. 3. NEW SECTION. 297A.3 REQUESTS FOR PROPOSALS 4 5 EVALUATION. 4 6 1. Prior to entering into an energy performance-based 4 7 contract as provided in section 297A.4, a public corporation 4 8 shall announce a request for proposals. A request for 4 9 proposals shall be advertised for public bidding and let 4 10 publicly. The model request for proposals format developed by 4 11 the department of natural resources shall be made available 4 12 for use by public corporations. The public corporation shall 4 13 administer the program, requesting innovative solutions and 4 14 proposals for energy conservation measures and facility 4 15 technology infrastructure. Proposals submitted shall be 4 16 sealed. If the model request for proposals format is not 4 17 used, the request for proposals shall include, at a minimum, 4 18 all of the following: 4 19 a. Name and address of the public corporation. 4 20 b. Name, address, title, and telephone number of a contact 4 21 person for the public corporation. 4 22 c. Notice indicating that the public corporation is 4 23 requesting qualified providers to propose energy conservation 4 24 measures and facility technology infrastructure to be provided 4 25 pursuant to an energy performance-based contract. 4 26 d. Date, time, and place where proposals must be received. 4 27 e. Evaluation criteria for assessing the proposals. 4 28 f. Any other stipulations and clarifications the public 4 29 corporation may require. 4 30 2. The public corporation shall evaluate any sealed 4 31 proposal from a qualified provider. Sealed proposals shall be 4 32 opened by a designated member or employee of the governing 4 33 body of the public corporation at a public meeting during 4 34 which the contents of the proposals shall be announced. Each 4 35 person submitting a sealed proposal must receive at least ten 5 1 days' notice of the time and place of the public meeting, 5 2 published pursuant to the procedure specified in this section. 5 3 The public corporation shall analyze each qualified provider's 5 4 estimate of the cost of design, engineering, installation, 5 5 maintenance, repairs, debt service, conversions to a different 5 6 energy or fuel source, and postinstallation project 5 7 monitoring, data collection, and reporting. The evaluation 5 8 shall include a detailed analysis of whether the energy 5 9 consumed or the operating costs, or both, will be reduced. 5 10 Selection of the qualified provider shall, through either a 5 11 request for proposals process or other purchasing method, 5 12 constitute selection of the best value based on life cycle 5 13 cost analysis of the component parts and systems to the public 5 14 corporation. The public corporation shall enter into an 5 15 energy performance-based contract. 5 16 Sec. 4. NEW SECTION. 297A.4 AWARD OF GUARANTEED ENERGY 5 17 COST SAVINGS CONTRACT. 5 18 1. A public corporation shall select a qualified provider 5 19 that best meets the needs of the public corporation based on 5 20 life cycle cost analysis. After completing its evaluation of 5 21 the proposals received pursuant to section 297A.3, the public 5 22 corporation shall provide public notice of the meeting at 5 23 which it proposes to award an energy performance-based 5 24 contract. The notice shall contain the names of the parties 5 25 to the proposed contract and the purpose of the contract. The 5 26 public notice shall be published at least ten days prior to 5 27 the meeting, pursuant to the procedure specified in section 5 28 297A.3. A public corporation may enter into an energy 5 29 performance-based contract with a qualified provider if it 5 30 finds, after evaluating the proposal pursuant to section 5 31 297A.3, that the total amount it would spend on the design, 5 32 implementation, financing and performance management of the 5 33 energy conservation measures and facility technology 5 34 infrastructure upgrades and modernization measures recommended 5 35 in the proposal would not exceed the amount to be saved in 6 1 either energy or operational costs, or both, within a twenty- 6 2 year period from the date of installation or modification, 6 3 based on life-cycle costing calculations, if the 6 4 recommendations in the proposal are followed. Each individual 6 5 improvement must pay for itself within the useful life of the 6 6 equipment, as determined by the American society of heating, 6 7 refrigeration, and air conditioning engineers. 6 8 2. A public corporation may enter into a financing 6 9 agreement as provided in sections 473.19, 473.20, and 473.20A, 6 10 for the purchase and installation of energy conservation 6 11 measures and facility technology infrastructure upgrades and 6 12 modernization measures. Energy performance-based contracts 6 13 may extend beyond the fiscal year in which they become 6 14 effective, and may be automatically renewed annually for up to 6 15 twenty years. 6 16 3. A qualified provider shall be responsible for the 6 17 measurement and verification of the savings generated by the 6 18 energy conservation measures and facility technology 6 19 infrastructure upgrades and modernization measures. The 6 20 process to be used for the measurement and verification shall 6 21 follow the guidelines of the federal energy management 6 22 program. A public corporation shall have these savings 6 23 verified by a qualified independent third party on an annual 6 24 basis. The verification shall also include an annual 6 25 reconciliation of the guaranteed energy cost savings for the 6 26 life of the bond or until the project is repaid from energy 6 27 savings. The cost of this verification shall be a part of the 6 28 contract with the qualified provider. The department of 6 29 natural resources shall establish the qualifications necessary 6 30 for a business or person to become a qualified independent 6 31 third party. A business or person accredited by the national 6 32 association of energy service companies shall be qualified in 6 33 Iowa. 6 34 4. A selected qualified provider shall provide a one 6 35 hundred percent performance guarantee bond to the public 7 1 corporation for the installation and faithful performance of 7 2 the installed energy conservation measures and facility 7 3 technology infrastructure as outlined in the energy 7 4 performance-based contract. 7 5 5. A public corporation has the right to terminate an 7 6 energy performance-based contract at any time provided that 7 7 written notice to the qualified provider is provided at least 7 8 thirty days prior to termination. All qualified providers 7 9 shall include clear statements and requirements regarding 7 10 contract termination as part of the contract documentation. 7 11 The documentation shall clearly state the options of the 7 12 public corporation to satisfy the contract early and include 7 13 all associated costs. The documentation shall also state the 7 14 rights of a public corporation under a contract for 7 15 terminating the contract due to nonperformance, exercising 7 16 performance bonds, and shall list all costs and 7 17 responsibilities for payment of any remaining debt associated 7 18 with energy and operational savings projects already 7 19 implemented. The information and associated costs described 7 20 in this subsection shall be provided to a public corporation 7 21 before an energy performance-based contract is approved. 7 22 6. An energy performance-based contract shall include a 7 23 written guarantee by a qualified provider that the amount of 7 24 any actual energy and operational savings shall be guaranteed. 7 25 The amount must also meet or exceed the total annual contract 7 26 payments, including financing charges, made by the public 7 27 corporation over the life of the contract. A qualified 7 28 provider shall reimburse a public corporation for any 7 29 shortfall of guaranteed energy cost savings projected in the 7 30 contract. Actual savings documentation shall be reconciled on 7 31 an annual basis as provided in the contract. Any savings 7 32 shortfall shall be made whole by the qualified provider within 7 33 sixty days. Excess documented and mutually agreed upon 7 34 savings may be carried over to future years. A qualified 7 35 provider shall provide the public corporation with a one 8 1 hundred percent performance and payment bond for installation 8 2 and retrofit projects. A qualified provider shall guarantee 8 3 the savings for the length of the contract and shall also 8 4 provide cost savings or guaranteed performance and payment 8 5 bonds on an annual basis renewed each year for the term of the 8 6 agreement. An energy performance-based contract may provide 8 7 for payments over a period of time, not to exceed twenty 8 8 years. 8 9 7. A governmental body shall not have any state financial 8 10 assistance or any appropriations or reimbursements reduced as 8 11 a result of energy and operational savings realized from an 8 12 energy performance-based contract or a lease-purchase 8 13 agreement for the purchase and installation of energy 8 14 conservation measures and facility technology infrastructure. 8 15 EXPLANATION 8 16 This bill allows public corporations, through a request for 8 17 proposals process, to enter into energy performance-based 8 18 contracts with qualified providers for purposes of undertaking 8 19 one or more energy conservation measures and facility 8 20 technology infrastructure. The bill provides that a public 8 21 corporation may enter into an energy performance-based 8 22 contract with a qualified provider if it finds, after 8 23 evaluating the proposal, that the total amount it would spend 8 24 on the design, implementation, financing, and performance 8 25 management of the energy conservation measures and facility 8 26 technology infrastructure recommended in the proposal would 8 27 not exceed the amount to be saved in either energy or 8 28 operational costs, or both, within a 20-year period from the 8 29 date of installation or modification, based on life-cycle 8 30 costing calculations, if the recommendations in the proposal 8 31 are followed. The bill provides that a qualified provider 8 32 shall be responsible for the measurement and verification of 8 33 the savings generated by the energy conservation measures and 8 34 facility technology infrastructure. The bill provides that a 8 35 public corporation shall have these savings verified by a 9 1 qualified independent third party. The bill provides that a 9 2 public corporation has the right to terminate an energy 9 3 performance-based contract at any time provided that written 9 4 notice to the qualified provider is provided at least 30 days 9 5 prior to termination. 9 6 The bill provides that an energy performance-based contract 9 7 shall include a written guarantee by a qualified provider that 9 8 the amount of any actual energy and operational savings shall 9 9 be guaranteed. The bill provides that a qualified provider 9 10 shall reimburse a public corporation for any shortfall of 9 11 guaranteed energy cost performance or payment projected in the 9 12 contract and that actual savings documentation shall be 9 13 reconciled on an annual basis as provided in the contract. 9 14 The bill provides that a qualified provider shall guarantee 9 15 the savings for the length of the contract and shall also 9 16 provide cost savings or guaranteed performance or payment 9 17 bonds on an annual basis renewed each year for the term of the 9 18 contract. The bill provides that a governmental body shall 9 19 not have any state financial assistance or any appropriations 9 20 or reimbursements reduced as a result of energy and 9 21 operational savings realized from an energy performance-based 9 22 contract or a lease-purchase agreement for the purchase and 9 23 installation of energy conservation measures and facility 9 24 technology intrastructure. 9 25 LSB 2683YH 80 9 26 rn/cl/14
Text: HF00509 Text: HF00511 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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