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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 2683SS 80
9 26 rn/cl/14
Text: SF02177 Text: SF02179 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
© 2004 Cornell College and League of Women Voters of Iowa
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