Senate File 136
SENATE FILE
BY CONNOLLY
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act establishing an energy conservation program for school
2 districts.
3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
4 TLSB 2182SS 80
5 rn/cf/24
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, produce both
1 5 immediate and long=term cost savings, and promote the health
1 6 and safety of the school children of Iowa. It is the policy
1 7 of this state to encourage school districts, area education
1 8 agencies, and community colleges to invest in energy
1 9 conservation measures that reduce energy consumption, produce
1 10 a cost savings, and improve the quality of indoor air, and
1 11 when economically feasible, to build, operate, maintain, or
1 12 renovate educational facilities in a manner which will
1 13 minimize energy consumption and maximize energy savings. It
1 14 is additionally the policy of this state to encourage
1 15 reinvestment of energy savings resulting from energy
1 16 conservation measures into additional and continued energy
1 17 conservation efforts.
1 18 Sec. 2. NEW SECTION. 297A.2 DEFINITIONS.
1 19 For the purposes of this chapter:
1 20 1. "Energy conservation measure" means a training program,
1 21 facility alteration, or equipment to be used in new
1 22 construction, including an addition to an existing facility,
1 23 that reduces energy costs and includes, but is not limited to,
1 24 the following:
1 25 a. Insulation of the facility structure or systems within
1 26 the facility.
1 27 b. Storm windows or doors, caulking or weather stripping,
1 28 multiglazed windows or doors, heat=absorbing or heat=
1 29 reflective glazed and coated window or door systems,
1 30 additional glazing, reductions in glass area, or other window
1 31 and door system modifications that reduce energy consumption.
1 32 c. Automated or computerized energy control systems.
1 33 d. Heating, ventilating, or air conditioning system
1 34 modifications or replacements.
1 35 e. Replacement or modification of lighting fixtures to
2 1 increase the energy efficiency of the lighting system which,
2 2 at a minimum, shall conform to the applicable state or local
2 3 building code.
2 4 f. Energy recovery systems.
2 5 g. Cogeneration systems that produce steam or forms of
2 6 energy such as heat, as well as electricity, for use primarily
2 7 within a facility or complex of facilities.
2 8 h. Renewable energy systems, such as solar, biomass, and
2 9 wind.
2 10 i. Devices that reduce water consumption or sewer charges.
2 11 j. Facility alterations or improvements or new
2 12 construction that promote healthier, safer classrooms through
2 13 plan specifications emphasizing resource efficiency and
2 14 environmental sustainability. Such specifications may
2 15 incorporate the following concepts:
2 16 (1) Site planning and landscape design maximizing the
2 17 site's natural conditions and promoting easy access for
2 18 pedestrians, bicycles, and public transportation systems.
2 19 (2) Day=lighting strategies maximizing southern building
2 20 exposures and natural daylight classroom illumination.
2 21 (3) Energy=efficient building shells designed to address
2 22 energy flows.
2 23 (4) Environmentally sensitive building products and
2 24 systems with a preference for locally produced, recycled, and
2 25 nonpolluting materials.
2 26 (5) Indoor air quality systems which avoid utilization of
2 27 polluting chemicals.
2 28 (6) Water conservation measures and principles including
2 29 the harvesting of rainwater and utilization of native, low=
2 30 maintenance landscaping plants.
2 31 (7) Recycling systems and waste management facilities that
2 32 encourage staff and student recycling efforts.
2 33 (8) Eco=education opportunities whereby the school
2 34 building is designed as a teaching tool for sustainability and
2 35 energy efficiency.
3 1 k. Any measure not otherwise defined that provides long=
3 2 term operating cost reductions and significantly reduces
3 3 energy consumption.
3 4 2. "Energy cost savings" means any of the following:
3 5 a. A measured reduction in fuel, energy, or operation and
3 6 maintenance costs created from the implementation of one or
3 7 more energy conservation measures when compared with an
3 8 established baseline for previous fuel, energy, or operation
3 9 and maintenance costs.
3 10 b. For new construction, a projected reduction in fuel,
3 11 energy, or operation and maintenance costs created from the
3 12 implementation of one or more energy conservation measures
3 13 when compared with the projected fuel, energy, or operation
3 14 and maintenance costs for equipment if the minimum standards
3 15 of the state uniform building code for public educational
3 16 facilities construction were implemented and verified by a
3 17 professional engineer licensed by the state.
3 18 3. "Energy performance=based contract" means a contract
3 19 for the evaluation, recommendation, and implementation of
3 20 energy conservation measures which includes, at a minimum all
3 21 of the following:
3 22 a. Performance of an energy audit, data collection, and
3 23 other related analyses preliminary to the undertaking of
3 24 energy conservation measures, and maintenance of project
3 25 monitoring and data collection to verify postinstallation
3 26 energy consumption and energy=related operating costs.
3 27 b. The design and installation of equipment to implement
3 28 one or more energy conservation measures, and, if applicable,
3 29 operation and maintenance of such measures.
3 30 c. The projected amount of any actual annual energy cost
3 31 savings. This amount must be projected to meet or exceed
3 32 total annual contract payments made by the school corporation
3 33 for the contract.
3 34 d. Financing charges to be incurred by the school
3 35 corporation over the life of the contract.
4 1 4. "Qualified provider" means a person or business whose
4 2 employees are experienced and trained in the design,
4 3 implementation, or installation of energy conservation
4 4 measures and have satisfactorily completed at least forty
4 5 hours of course instruction dealing with energy conservation
4 6 measures.
4 7 5. "School corporation" means a school district as
4 8 described in chapter 274, an area education agency as
4 9 established in chapter 273, or a community college as defined
4 10 in chapter 260C.
4 11 Sec. 3. NEW SECTION. 297A.3 REQUESTS FOR PROPOSALS ==
4 12 EVALUATION.
4 13 1. Prior to entering into an energy performance=based
4 14 contract as provided in section 297A.4, a school corporation
4 15 shall announce a request for proposals. A request for
4 16 proposals shall be announced through at least one public
4 17 notice appearing at least ten days before the proposal
4 18 submission date in a newspaper of general circulation
4 19 published in the area of the school corporation, by a school
4 20 corporation that will administer the program, requesting
4 21 innovative solutions and proposals for energy conservation
4 22 measures. Proposals submitted shall be sealed. The request
4 23 for proposals shall include all of the following:
4 24 a. Name and address of the school corporation.
4 25 b. Name, address, title, and telephone number of a contact
4 26 person for the school corporation.
4 27 c. Notice indicating that the school corporation is
4 28 requesting qualified providers to propose energy conservation
4 29 measures to be provided pursuant to an energy performance=
4 30 based contract.
4 31 d. Date, time, and place where proposals must be received.
4 32 e. Evaluation criteria for assessing the proposals.
4 33 f. Any other stipulations and clarifications the school
4 34 corporation may require.
4 35 2. The school corporation shall evaluate any sealed
5 1 proposal from a qualified provider. Sealed proposals shall be
5 2 opened by a designated member or employee or governing body of
5 3 the school corporation at a public meeting during which the
5 4 contents of the proposals shall be announced. Each person or
5 5 entity submitting a sealed proposal must receive at least ten
5 6 days' notice of the time and place of the public meeting,
5 7 published pursuant to the procedure specified in this section.
5 8 The school corporation shall analyze the estimates of all
5 9 costs of installations, modifications, and remodeling,
5 10 including, without limitation, costs of a preinstallation
5 11 energy audit or analysis, design, engineering, installation,
5 12 maintenance, repairs, debt service, conversions to a different
5 13 energy or fuel source, and postinstallation project
5 14 monitoring, data collection, and reporting. The evaluation
5 15 shall include a detailed analysis of whether the energy
5 16 consumed or the operating costs, or both, will be reduced, and
5 17 shall be reviewed by either the department of education or the
5 18 department of natural resources, or verified by a licensed
5 19 professional engineer.
5 20 Sec. 4. NEW SECTION. 297A.4 AWARD OF GUARANTEED ENERGY
5 21 COST SAVINGS CONTRACT.
5 22 A school corporation shall select the qualified provider
5 23 that best meets the needs of the school corporation. After
5 24 completing its evaluation of the proposals received pursuant
5 25 to section 297A.3, the school corporation shall provide public
5 26 notice of the meeting at which it proposes to award a
5 27 guaranteed energy cost savings contract. The notice shall
5 28 contain the names of the parties to the proposed contract and
5 29 the purpose of the contract. The public notice shall be
5 30 published at least ten days prior to the meeting, pursuant to
5 31 the procedure specified in section 297A.3. A school
5 32 corporation may enter into a guaranteed energy cost savings
5 33 contract with a qualified provider if it finds after
5 34 evaluating the proposal pursuant to section 297A.3 that the
5 35 amount it would spend on the energy conservation measures
6 1 recommended in the proposal would not exceed the amount to be
6 2 saved in either energy or operational costs, or both, within a
6 3 twenty=year period from the date of installation or
6 4 modification, based on life=cycle costing calculations, if the
6 5 recommendations in the proposal are followed.
6 6 In selecting a qualified provider pursuant to this section,
6 7 to the extent possible and when consistent with the objectives
6 8 of the school district, a district shall indicate a preference
6 9 for proposals which promote healthier, safer classrooms
6 10 through plan specifications emphasizing resource efficiency
6 11 and environmental sustainability, incorporating the concepts
6 12 defined in section 297A.2, subsection 1, paragraph "j".
6 13 Sec. 5. NEW SECTION. 297A.5 QUALIFIED PROVIDER
6 14 GUARANTEE.
6 15 The guaranteed energy cost savings contract shall include a
6 16 written guarantee of the qualified provider that either the
6 17 anticipated energy or operational cost savings, or both, will
6 18 meet or exceed within twenty years the costs of the energy
6 19 conservation measures. The qualified provider shall reimburse
6 20 the school corporation for any shortfall of guaranteed energy
6 21 cost savings projected in the contract. A qualified provider
6 22 shall provide to the school corporation a one hundred percent
6 23 public construction bond for the installation and the faithful
6 24 performance of all the energy conservation measures included
6 25 in the contract and for guaranteed savings for the length of
6 26 the contract. The guaranteed energy cost savings contract may
6 27 provide for payments over a period of time, not to exceed
6 28 twenty years.
6 29 Sec. 6. NEW SECTION. 297A.6 PAYMENT PROVISIONS.
6 30 1. A school corporation may enter into an installment
6 31 payment contract or lease=purchase agreement with a qualified
6 32 provider for the purchase and installation of energy
6 33 conservation measures, if a motion on such a contract or
6 34 agreement is adopted by the governing body of the school
6 35 corporation. The contract shall provide for payments of not
7 1 less than one=twentieth of the price to be paid for purchase
7 2 and installation within two years from the date of the
7 3 complete installation and acceptance by the school
7 4 corporation, and the remaining costs shall be paid at least
7 5 quarterly, not to exceed a twenty=year duration based on life=
7 6 cycle costing calculations.
7 7 2. Energy performance=based contracts may extend beyond
7 8 the fiscal year in which they become effective, and may be
7 9 automatically renewed annually for up to twenty years, subject
7 10 to annual appropriations from the governing body of the school
7 11 corporation based upon continued realized energy cost savings.
7 12 An energy performance=based contract shall stipulate that the
7 13 agreement does not constitute a debt, liability, or obligation
7 14 on the part of the state, or a school corporation facing an
7 15 annual energy cost savings shortfall as provided in section
7 16 297A.5.
7 17 3. The contract shall include a guarantee by the qualified
7 18 provider that annual energy cost savings will meet or exceed
7 19 the amortized cost of energy conservation measures. The
7 20 qualified provider shall provide to the school corporation an
7 21 annual reconciliation of the guaranteed energy cost savings,
7 22 and shall be liable for any annual energy cost savings
7 23 shortfall that may occur as provided in section 297A.5.
7 24 EXPLANATION
7 25 This bill provides for the creation of a school energy
7 26 conservation program designed to facilitate the ability of
7 27 school corporations to undertake energy conservation measures
7 28 involving training programs, school facility improvements or
7 29 alterations, or new construction or additions, by means of
7 30 contracting with a service provider that guarantees energy or
7 31 operational cost savings.
7 32 The bill provides a definition of an energy conservation
7 33 measure to be undertaken by a school corporation, which
7 34 includes insulation, caulking or weather stripping, adding
7 35 energy control systems, adding, modifying, or replacing
8 1 heating, ventilating, or air conditioning systems, replacement
8 2 or modification of lighting fixtures, adding energy recovery
8 3 systems, cogeneration systems, renewable energy systems,
8 4 devices which reduce water consumption or sewer charges, plans
8 5 promoting healthier, safer classrooms through specifications
8 6 emphasizing resource efficiency and environmental
8 7 sustainability, or additional energy conservation measures
8 8 that provide long=term operating cost reductions. The bill
8 9 provides that a school corporation which seeks to undertake
8 10 one or more energy conservation measures can enter into a
8 11 guaranteed energy cost savings contract with a qualified
8 12 provider. The bill defines a guaranteed energy cost savings
8 13 contract to include a contract with a qualified provider for
8 14 the performance of energy audits and preliminary analyses, the
8 15 evaluation, recommendation, and implementation of energy
8 16 conservation measures, and postimplementation data collection
8 17 and recordkeeping. The bill defines a qualified provider as a
8 18 person or business which is experienced in the design,
8 19 implementation, and installation of energy conservation
8 20 measures, and which person or business submits a proposal to
8 21 enter into a guaranteed energy cost savings contract with a
8 22 school corporation. The bill specifies procedures for public
8 23 notice regarding a request for proposals from qualified
8 24 providers, evaluation procedures and criteria regarding the
8 25 proposals submitted, and procedures regarding the awarding of
8 26 a contract by the school corporation. The bill provides that
8 27 in selecting a qualified provider, to the extent possible and
8 28 when consistent with the objectives of the school district, a
8 29 district shall indicate a preference for proposals which
8 30 promote healthier, safer classrooms through plan
8 31 specifications emphasizing resource efficiency and
8 32 environmental sustainability. The bill defines "school
8 33 corporation" as a school district, an area education agency,
8 34 or a community college.
8 35 The bill provides that a guaranteed energy cost savings
9 1 contract shall contain a written guarantee from the qualified
9 2 provider that the anticipated energy or operational cost
9 3 savings to the school corporation will at least equal the cost
9 4 of the energy conservation measures undertaken by the school
9 5 corporation within 20 years, and that the provider agrees to
9 6 reimburse the school corporation for any energy cost savings
9 7 shortfall. The provider is required to provide a bond to the
9 8 school corporation for faithful performance of the contract.
9 9 The contract shall provide for payment of not less than
9 10 one=twentieth of the purchase and installation price within
9 11 two years from original installation, with quarterly payments
9 12 thereafter for up to 20 years' total duration.
9 13 The bill provides that the contract may extend beyond the
9 14 fiscal year in which it becomes effective and may be
9 15 automatically renewed annually for up to 20 years, subject to
9 16 annual appropriations from the governing body of the school
9 17 corporation based upon continued realized energy cost savings.
9 18 The bill provides that the contract shall stipulate that the
9 19 agreement does not constitute a debt, liability, or obligation
9 20 on the part of the state, or a school corporation experiencing
9 21 an energy cost savings shortfall, and include a guarantee by
9 22 the qualified provider that annual energy cost savings will
9 23 meet or exceed the amortized cost of energy conservation
9 24 measures. The bill provides that the qualified provider shall
9 25 provide to the school corporation an annual reconciliation of
9 26 the guaranteed energy cost savings, and shall be liable for
9 27 any annual shortfall which may occur.
9 28 LSB 2182SS 80
9 29 rn/cf/24