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Senate Amendment 3316

Amendment Text

PAG LIN
  1  1    Amend Senate File 453 as follows:
  1  2    #1.  Page 37, by inserting after line 5 the
  1  3 following:  
  1  4                      "DIVISION ___
  1  5                   ENERGY CONSERVATION
  1  6    Sec.    .  NEW SECTION.  297A.l  STATE POLICY.
  1  7    The general assembly finds that investment in
  1  8 energy conservation measures by public facilities can
  1  9 reduce the amount of energy consumed by the facilities
  1 10 and produce both immediate and long-term cost savings.
  1 11 It is the policy of this state to encourage school
  1 12 districts, area education agencies, community
  1 13 colleges, public universities, municipalities,
  1 14 counties, and state institutions to invest in facility
  1 15 technology infrastructure upgrades and energy
  1 16 conservation measures that reduce energy consumption,
  1 17 produce a cost savings, or improve the quality of
  1 18 indoor air, or when economically feasible, to build,
  1 19 operate, maintain, or renovate public facilities in a
  1 20 manner which will minimize energy consumption or
  1 21 maximize energy savings.  It is additionally the
  1 22 policy of this state to encourage reinvestment of
  1 23 energy savings resulting from energy conservation
  1 24 measures into additional and continued energy
  1 25 conservation efforts, including but not limited to
  1 26 school instructional computer hardware, software, and
  1 27 other technology equipment or training needs to
  1 28 maintain or operate technology systems.  The
  1 29 department of natural resources, in consultation with
  1 30 the department of education, shall adopt rules
  1 31 pursuant to chapter 17A for the administration of
  1 32 sections 297A.2, 297A.3, and 297A.4.
  1 33    Sec.    .  NEW SECTION.  297A.2  DEFINITIONS.
  1 34    As used in this chapter, unless the context
  1 35 otherwise requires:
  1 36    1.  "Energy conservation measure and facility
  1 37 technology infrastructure" means an employee training
  1 38 program, facility alteration, or equipment to be used
  1 39 in new construction that reduces energy costs and
  1 40 includes, but is not limited to, any of the following:
  1 41    a.  Insulation of the facility structure or systems
  1 42 within the facility.
  1 43    b.  Storm windows or doors, caulking or weather
  1 44 stripping, multiple-glazed windows or doors, heat-
  1 45 absorbing or heat-reflective glazed and coated window
  1 46 or door systems, additional glazing, reductions in
  1 47 glass area, or other window and door system
  1 48 modifications that reduce energy consumption.
  1 49    c.  Automated or computerized energy control
  1 50 systems including related software-required network
  2  1 communication wiring, computer devices, wiring and
  2  2 support services for building maintenance or delivery
  2  3 of energy conservation services.  Any cost for support
  2  4 services that will continue beyond the length of the
  2  5 contract shall be identified specifically in the
  2  6 energy performance-based evaluation.  Energy control
  2  7 system technology infrastructure may also be used, as
  2  8 applicable, for other public corporation technology
  2  9 needs.  Additional technology infrastructure
  2 10 improvements may be implemented if the cost is
  2 11 supported by the energy savings generated by other
  2 12 energy conservation measures and facility technology
  2 13 infrastructure.
  2 14    d.  Heating, ventilating, or air conditioning
  2 15 system modifications or replacements.
  2 16    e.  Replacement or modification of lighting
  2 17 fixtures to increase the energy efficiency of the
  2 18 lighting system which, at a minimum, shall conform to
  2 19 the applicable state or local building code.
  2 20    f.  Energy recovery systems.
  2 21    g.  Renewable energy systems, such as solar,
  2 22 biomass, and wind.
  2 23    h.  Any measure not otherwise defined that produces
  2 24 measurable energy cost savings or British thermal unit
  2 25 reductions.
  2 26    2.  "Energy cost savings" means a measured
  2 27 reduction in fuel, energy, or operation and
  2 28 maintenance cost savings created from the
  2 29 implementation of one or more energy conservation
  2 30 measures and facility technology infrastructure when
  2 31 compared with an established baseline for previous
  2 32 fuel, energy, or operation and maintenance costs.
  2 33    3.  "Energy performance-based contract" means a
  2 34 contract for the recommendation and implementation of
  2 35 energy conservation measures and facility technology
  2 36 infrastructure which includes, at a minimum, all of
  2 37 the following:
  2 38    a.  The design and installation of equipment to
  2 39 implement one or more energy conservation measures and
  2 40 facility technology infrastructure, and, if
  2 41 applicable, operation and maintenance of such
  2 42 measures.
  2 43    b.  The amount of any actual annual energy and
  2 44 operational cost savings.  The amount shall be
  2 45 guaranteed by the qualified provider and verified by a
  2 46 professional engineer or registered architect
  2 47 experienced in the field of energy conservation who is
  2 48 not employed by or has contracted with the qualified
  2 49 provider.  The verification shall occur using a
  2 50 process established by the department of natural
  3  1 resources.
  3  2    4.  "Energy performance-based evaluation" means
  3  3 performance of an energy audit, data collection, or
  3  4 other related analyses preliminary to the undertaking
  3  5 of energy conservation measures and facility
  3  6 technology infrastructure, and maintenance of project
  3  7 monitoring and data collection to verify
  3  8 postinstallation energy consumption and energy-related
  3  9 operating costs.  The department of natural resources
  3 10 shall establish guidelines that consider federal
  3 11 energy management program guidelines.
  3 12    5.  "Maintenance cost savings" means auditable
  3 13 operating expenses eliminated and future capital
  3 14 replacement expenditures avoided as a result of new
  3 15 equipment installed or services performed by the
  3 16 qualified provider.
  3 17    6.  "Public corporation" means a school corporation
  3 18 as described in chapters 273 and 274, a community
  3 19 college as defined in chapter 260C, a public
  3 20 university, city, county, or state agency.
  3 21    7.  "Qualified provider" means a business or person
  3 22 that has been qualified by the department of natural
  3 23 resources.  The department of natural resources shall
  3 24 adopt rules pursuant to chapter 17A to establish a
  3 25 qualifications process.  The process shall consider
  3 26 accreditation by the national association of energy
  3 27 service companies, certification by the association of
  3 28 energy engineers, or professional licensure as an
  3 29 engineer or registered architect in Iowa.  A business
  3 30 or person accredited by the national association of
  3 31 energy service companies shall be qualified in Iowa.
  3 32    Sec.    .  NEW SECTION.  297A.3  REQUESTS FOR
  3 33 PROPOSALS EVALUATION.
  3 34    1.  Prior to entering into an energy performance-
  3 35 based contract as provided in section 297A.4, a public
  3 36 corporation shall announce a request for proposals.  A
  3 37 request for proposals shall be advertised for public
  3 38 bidding and let publicly.  The model request for
  3 39 proposals format developed by the department of
  3 40 natural resources shall be made available for use by
  3 41 public corporations.  The public corporation shall
  3 42 administer the program, requesting innovative
  3 43 solutions and proposals for energy conservation
  3 44 measures and facility technology infrastructure.
  3 45 Proposals submitted shall be sealed.  If the model
  3 46 request for proposals format is not used, the request
  3 47 for proposals shall include, at a minimum, all of the
  3 48 following:
  3 49    a.  Name and address of the public corporation.
  3 50    b.  Name, address, title, and telephone number of a
  4  1 contact person for the public corporation.
  4  2    c.  Notice indicating that the public corporation
  4  3 is requesting qualified providers to propose energy
  4  4 conservation measures and facility technology
  4  5 infrastructure to be provided pursuant to an energy
  4  6 performance-based contract.
  4  7    d.  Date, time, and place where proposals must be
  4  8 received.
  4  9    e.  Evaluation criteria for assessing the
  4 10 proposals.
  4 11    f.  Any other stipulations and clarifications the
  4 12 public corporation may require.
  4 13    2.  The public corporation shall evaluate any
  4 14 sealed proposal from a qualified provider.  Sealed
  4 15 proposals shall be opened by a designated member or
  4 16 employee of the governing body of the public
  4 17 corporation at a public meeting during which the
  4 18 contents of the proposals shall be announced.  Each
  4 19 person submitting a sealed proposal must receive at
  4 20 least ten days' notice of the time and place of the
  4 21 public meeting, published pursuant to the procedure
  4 22 specified in this section.  The public corporation
  4 23 shall analyze each qualified provider's estimate of
  4 24 the cost of design, engineering, installation,
  4 25 maintenance, repairs, debt service, conversions to a
  4 26 different energy or fuel source, and postinstallation
  4 27 project monitoring, data collection, and reporting.
  4 28 The evaluation shall include a detailed analysis of
  4 29 whether the energy consumed or the operating costs, or
  4 30 both, will be reduced.  Selection of the qualified
  4 31 provider shall, through either a request for proposals
  4 32 process or a request for qualification process,
  4 33 constitute selection of the best value based on life
  4 34 cycle cost analysis of the component parts and systems
  4 35 to the public corporation.  The public corporation
  4 36 shall enter into an energy performance-based contract.
  4 37    Sec.    .  NEW SECTION.  297A.4  AWARD OF
  4 38 GUARANTEED ENERGY COST SAVINGS CONTRACT.
  4 39    1.  A public corporation shall select a qualified
  4 40 provider that best meets the needs of the public
  4 41 corporation based on life cycle cost analysis.  After
  4 42 completing its evaluation of the proposals received
  4 43 pursuant to section 297A.3, the public corporation
  4 44 shall provide public notice of the meeting at which it
  4 45 proposes to award an energy performance-based
  4 46 contract.  The notice shall contain the names of the
  4 47 parties to the proposed contract and the purpose of
  4 48 the contract.  The public notice shall be published at
  4 49 least ten days prior to the meeting, pursuant to the
  4 50 procedure specified in section 297A.3.  A public
  5  1 corporation may enter into an energy performance-based
  5  2 contract with a qualified provider if it finds, after
  5  3 evaluating the proposal pursuant to section 297A.3,
  5  4 that the total amount it would spend on the design,
  5  5 implementation, financing and performance management
  5  6 of the energy conservation measures and facility
  5  7 technology infrastructure upgrades and modernization
  5  8 measures recommended in the proposal would not exceed
  5  9 the amount to be saved in either energy or operational
  5 10 costs, or both, within a twenty-year period from the
  5 11 date of installation or modification, based on life-
  5 12 cycle costing calculations, if the recommendations in
  5 13 the proposal are followed.  Each individual
  5 14 improvement must pay for itself within the useful life
  5 15 of the equipment, as determined by the American
  5 16 society of heating, refrigeration, and air
  5 17 conditioning engineers.
  5 18    2.  A public corporation may enter into a financing
  5 19 agreement as provided in sections 473.19, 473.20, and
  5 20 473.20A, or may secure financing through a third party
  5 21 for the purchase and installation of energy
  5 22 conservation measures and facility technology
  5 23 infrastructure upgrades and modernization measures.
  5 24 Energy performance-based contracts may extend beyond
  5 25 the fiscal year in which they become effective, and
  5 26 may be automatically renewed annually for up to twenty
  5 27 years.
  5 28    3.  A qualified provider shall be responsible for
  5 29 the measurement and verification of the savings
  5 30 generated by the energy conservation measures and
  5 31 facility technology infrastructure upgrades and
  5 32 modernization measures.  The process to be used for
  5 33 the measurement and verification shall follow the
  5 34 guidelines of the federal energy management program.
  5 35 A public corporation may have these savings verified
  5 36 by a qualified independent third party on an annual
  5 37 basis.  The verification shall also include an annual
  5 38 reconciliation of the guaranteed energy cost savings
  5 39 until the project is repaid from energy savings.  The
  5 40 cost of this verification shall be a part of the
  5 41 contract with the qualified provider.  A business or
  5 42 person accredited by the national association of
  5 43 energy service companies shall be qualified in Iowa.
  5 44    4.  A selected qualified provider shall provide a
  5 45 one hundred percent performance guarantee bond to the
  5 46 public corporation for the installation and faithful
  5 47 performance of the installed energy conservation
  5 48 measures and facility technology infrastructure as
  5 49 outlined in the energy performance-based contract.
  5 50    5.  A public corporation has the right to terminate
  6  1 an energy performance-based contract at any time
  6  2 provided that written notice to the qualified provider
  6  3 is provided at least thirty days prior to termination.
  6  4 All qualified providers shall include clear statements
  6  5 and requirements regarding contract termination as
  6  6 part of the contract documentation.  The documentation
  6  7 shall clearly state the options of the public
  6  8 corporation to satisfy the contract early and include
  6  9 all associated costs.  The documentation shall also
  6 10 state the rights of a public corporation under a
  6 11 contract for terminating the contract due to
  6 12 nonperformance, exercising performance bonds, and
  6 13 shall list all costs and responsibilities for payment
  6 14 of any remaining debt associated with energy and
  6 15 operational savings projects already implemented.  The
  6 16 information and associated costs described in this
  6 17 subsection shall be provided to a public corporation
  6 18 before an energy performance-based contract is
  6 19 approved.
  6 20    6.  An energy performance-based contract shall
  6 21 include a written guarantee by a qualified provider
  6 22 that the amount of any actual energy and operational
  6 23 savings shall be guaranteed.  The amount must also
  6 24 meet or exceed the total annual contract payments,
  6 25 including financing charges, made by the public
  6 26 corporation over the life of the contract.  A
  6 27 qualified provider shall reimburse a public
  6 28 corporation for any shortfall of guaranteed energy
  6 29 cost savings projected in the contract.  Actual
  6 30 savings documentation shall be reconciled on an annual
  6 31 basis as provided in the contract.  Any savings
  6 32 shortfall shall be made whole by the qualified
  6 33 provider within sixty days.  Excess documented and
  6 34 mutually agreed upon savings may be carried over to
  6 35 future years.  A qualified provider shall provide the
  6 36 public corporation with a one hundred percent
  6 37 performance and payment bond for installation and
  6 38 retrofit projects.  A qualified provider shall
  6 39 guarantee the savings for the length of the contract.
  6 40 An energy performance-based contract may provide for
  6 41 payments over a period of time, not to exceed twenty
  6 42 years.  Nothing in this chapter shall be construed to
  6 43 prohibit local public corporations, school
  6 44 corporations, or public universities from utilizing
  6 45 savings created from energy conservation, in excess of
  6 46 the amount needed to pay for the cost saving measures,
  6 47 for discretionary budget operations including but not
  6 48 limited to school instructional computer hardware,
  6 49 software, technology training, upgrades, or other
  6 50 similar uses."
  7  1    #2.  By renumbering as necessary.  
  7  2 
  7  3 
  7  4                               
  7  5 DOUG SHULL
  7  6 
  7  7 
  7  8                               
  7  9 MIKE CONNOLLY
  7 10 
  7 11 
  7 12                               
  7 13 SF 453.203 80
  7 14 tm/sh
     

Text: S03315                            Text: S03317
Text: S03300 - S03399                   Text: S Index
Bills and Amendments: General Index     Bill History: General Index

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