Senate Bill 1500
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Florida Senate - 1998 SB 1500
By Senator Campbell
33-722A-98
1 A bill to be entitled
2 An act relating to energy performance
3 contracting; amending s. 489.145, F.S.;
4 providing legislative findings; redefining the
5 terms "agency," "energy conservation measure,"
6 "energy savings," "guaranteed energy savings
7 contract," and "qualified provider"; revising
8 procedures for contracting; establishing
9 criteria for energy performance contracts;
10 authorizing the Department of Management
11 Services to provide technical assistance;
12 providing an effective date.
13
14 Be It Enacted by the Legislature of the State of Florida:
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16 Section 1. Section 489.145, Florida Statutes, is
17 amended to read:
18 489.145 Energy performance efficiency contracting.--
19 (1) TITLE.--This section may be cited as the Energy
20 Performance Contracting Act.
21 (2) LEGISLATIVE FINDINGS.--The Legislature finds that
22 investment in energy conservation measures in agency
23 facilities can reduce the amount of energy consumed and
24 produce immediate and long-term savings. It is the policy of
25 this state to encourage agencies to invest in energy
26 conservation measures that reduce energy consumption, produce
27 a cost savings for the agency, and improve the quality of
28 indoor air in public facilities; and to operate, maintain,
29 and, when economically feasible, build or renovate existing
30 agency facilities in such a manner as to minimize energy
31 consumption and maximize energy savings. It is further the
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1 policy of this state to encourage agencies to reinvest any
2 energy savings resulting from energy conservation measures
3 into additional energy conservation efforts.
4 (3)(1) DEFINITIONS.--As used in this section, the
5 term:
6 (a) "Agency" means the state, a municipality, a school
7 district or school board, or a another political subdivision.
8 (b) "Energy conservation measure" means a training
9 program, or facility alteration, or equipment purchase to be
10 used in new construction, including an addition to an existing
11 facility, which that reduces energy consumption or operating
12 costs and includes, but is not limited to:
13 1. Insulation of the facility building structure and
14 systems within the facility building.
15 2. Storm windows and doors, caulking or
16 weatherstripping, multiglazed windows and doors,
17 heat-absorbing, or heat-reflective, glazed and coated window
18 and door systems, additional glazing, reductions in glass
19 area, and other window and door system modifications that
20 reduce energy consumption.
21 3. Automatic energy control systems.
22 4. Heating, ventilating, or air-conditioning system
23 modifications or replacements.
24 5. Replacement or modifications of lighting fixtures
25 to increase the energy efficiency of the lighting system,
26 which, at a minimum, must without increasing the overall
27 illumination of a facility, unless an increase in illumination
28 is necessary to conform to the applicable state or local
29 building code for the lighting system after the proposed
30 modifications are made.
31 6. Energy recovery systems.
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Florida Senate - 1998 SB 1500
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1 7. Cogeneration systems that produce steam or forms of
2 energy such as heat, as well as electricity, for use primarily
3 within a facility building or complex of facilities buildings.
4 8. Energy conservation measures that provide long-term
5 operating cost reductions or and significantly reduce Btu
6 consumed.
7 9. Renewable energy systems, such as solar, biomass,
8 and wind systems.
9 10. Devices that reduce water consumption or sewer
10 charges.
11 11. Any other repair, replacement, or upgrade of
12 existing equipment.
13 (c) "Energy cost savings" means:
14 1. A measured reduction in fuel, and energy, or
15 operation and maintenance costs created from the
16 implementation of one or more energy conservation measures
17 when compared with an established baseline for previous fuel,
18 and energy, or operation and maintenance costs, or.
19 2. For new construction, a projected reduction in
20 fuel, energy, or operation and maintenance costs created from
21 the implementation of one or more energy conservation measures
22 when compared with the projected fuel, energy, or operation
23 and maintenance costs for equipment if the minimum standards
24 of the State Energy Uniform Building Code were implemented.
25 (d) "Guaranteed Energy performance savings contract"
26 means a contract for the evaluation, and recommendation, and
27 implementation of energy conservation measures, which, at a
28 minimum, must include: including
29 1. The design and installation of equipment to
30 implement one or more of such measures and, if applicable,
31 operation and maintenance of such measures;.
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1 2. The amount of any actual annual savings that meet
2 or exceed total annual contract payments made by the agency
3 for the contract; and
4 3. The finance charges incurred by the agency over the
5 life of the contract. The contract may cover repair or
6 replacement of existing equipment in a state-owned building or
7 a state-owned hospital, professional fees, and financing
8 charges to be paid from the energy savings less agreed-upon
9 inflation factors, and maintenance services if applicable.
10 (e) "Energy performance contractor Qualified provider"
11 means a person or business that is licensed under chapter 471,
12 chapter 481, or this chapter, and is experienced in the
13 analysis, design, implementation, or installation of energy
14 conservation measures through guaranteed energy performance
15 savings contracts.
16 (4)(2) PROCEDURES.--
17 (a) An agency may enter into an a guaranteed energy
18 performance savings contract with an energy performance
19 contractor a qualified provider or providers to significantly
20 reduce energy or operating costs of an agency facility
21 agency-owned building or an agency-owned hospital through one
22 or more energy conservation measures.
23 (b) Before the design and installation of energy
24 conservation measures entering into the contract, the agency
25 must obtain from an energy performance contractor a qualified
26 provider or providers a report that discloses all of
27 summarizes the costs associated with of the energy
28 conservation measures and provides an estimate of the amount
29 of the energy cost savings or operating costs will be reduced.
30 (c) After a review of the report, The agency may enter
31 into an energy performance a contract with an energy
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1 performance contractor if it finds that the amount the agency
2 it would spend on the energy conservation measures will is not
3 likely to exceed the amount of the to be saved in energy cost
4 savings and operating costs for up to 20 10 years from the
5 date of installation, based on life-cycle costing
6 calculations. if the recommendations in the report were
7 followed and if the qualified provider or providers give a
8 written guarantee that the energy or operating cost savings
9 will meet or exceed the costs of the system. The contract may
10 provide for installment payments for a period not to exceed 10
11 years.
12 (d) An energy performance contractor A qualified
13 provider or providers must be selected in compliance with s.
14 287.055; except that if fewer than three firms are qualified
15 to perform the required services, the requirement for agency
16 selection of three firms, as provided in s. 287.055(4)(b), and
17 the bid requirements of s. 287.057 do not apply.
18 (e) Before entering into an energy performance a
19 contract under this section, an agency must provide published
20 notice of the meeting in which it proposes to award the
21 contract, the names of the parties to the proposed contract,
22 and the contract's purpose.
23 (f) Before entering into an energy performance
24 contract with an energy performance contractor, any state
25 agency must submit the proposed contract to the Office of the
26 Comptroller for review and approval. A reasonable construction
27 of this act by the Office of the Comptroller is binding on all
28 state agencies involved in the administration of or purchases
29 made under this act, and the Office of the Comptroller is
30 authorized to adopt rules governing the construction or
31 application of this act for state agencies.
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1 (g) An energy performance contract may provide for
2 financing, including tax exempt financing, by a third party.
3 The contract for third party financing may be separate from
4 the energy performance contract. A separate contract for third
5 party financing must include a provision that the third party
6 financier must not be granted rights or privileges that exceed
7 the rights and privileges available to the energy performance
8 contractor, and must specify that the agency is not obligated
9 to make payments that exceed the energy savings for the
10 applicable period or in the event of any other material
11 deficiency in performance of the underlying energy performance
12 contract, including, but not limited to, an event or events of
13 material equipment failure.
14 (5)(3) CONTRACT PROVISIONS.--
15 (a) An A guaranteed energy performance savings
16 contract must include a written energy guarantee by the energy
17 performance contractor qualified provider or providers that
18 annual energy cost savings will meet or exceed the amortized
19 cost of energy conservation measures.
20 (b) The energy performance contract must provide that
21 all payments, except obligations on termination of the
22 contract before its expiration, may be made over time, but not
23 to exceed 20 10 years from the date of complete installation
24 and acceptance by the agency state, and that the annual
25 savings are guaranteed to the extent necessary to make annual
26 payments to satisfy the energy performance contract for the
27 systems.
28 (c) The energy performance contract must require that
29 the energy performance contractor a qualified provider or
30 providers to whom the contract is awarded provide a
31 100-percent public construction project value bond to the
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1 agency state for its faithful performance, as required by s.
2 255.05 chapter 287.
3 (d) The energy performance contract may contain a
4 provision allocating to the parties to the contract any annual
5 energy cost savings that exceed the amount of the energy cost
6 savings guaranteed in the contract.
7 (e) The energy performance contract must require the
8 energy performance contractor to provide to the agency an
9 annual reconciliation of the guaranteed energy cost savings.
10 If the reconciliation reveals a shortfall in annual energy
11 cost savings, the energy performance contractor is liable. If
12 the reconciliation reveals an excess in annual energy cost
13 savings, the excess savings may be allocated under paragraph
14 (d), but may not be used to cover potential energy cost
15 savings shortages in subsequent contract years.
16 (f)(d) The energy performance contract must provide
17 for payments of not less than one-twentieth one-tenth of the
18 price to be paid within 2 years from the date of the complete
19 installation and acceptance by the agency state, and the
20 remaining costs to be paid at least quarterly, not to exceed a
21 20-year 10-year term, based on the life-cycle cost
22 calculations.
23 (g)(e) The energy performance contract may extend
24 beyond the fiscal year in which it becomes effective; however,
25 the term of any contract expires at the end of each fiscal
26 year and may be automatically renewed annually for up to 20 10
27 years, subject to the agency making sufficient annual
28 appropriations based upon continued realized energy savings.
29 (h)(f) The energy performance contract must stipulate
30 that it does not constitute a debt, liability, or obligation
31 of the state.
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1 (6) TECHNICAL ASSISTANCE.--The Department of
2 Management Services may, within available resources, provide
3 technical assistance to agencies contracting for energy
4 conservation measures, establish a technical board for the
5 purpose of reviewing energy performance contracts, and engage
6 in other activities considered appropriate by the department
7 for promoting and facilitating energy performance contracting
8 by agencies.
9 Section 2. This act shall take effect upon becoming a
10 law.
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13 SENATE SUMMARY
14 Establishes the Energy Performance Contracting Act and
provides legislative findings. Redefines terms, revises
15 procedures for contracting, and sets criteria for energy
performance contracting. Authorizes the Department of
16 Management Services to provide technical assistance and
to promote and facilitate energy performance contracting
17 by agencies.
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