House Bill hb0453

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    Florida House of Representatives - 2001                 HB 453

        By Representative Prieguez






  1                      A bill to be entitled

  2         An act relating to guaranteed energy

  3         performance savings contracting; amending s.

  4         489.145, F.S.; changing provisions relating to

  5         energy efficiency contracting to provisions

  6         relating to guaranteed energy performance

  7         savings contracting; providing a short title;

  8         providing legislative intent; revising

  9         definitions, procedures, and contract

10         provisions; providing criteria, requirements,

11         procedures, and limitations for energy

12         performance contracts; authorizing the

13         Department of Management Services or the Office

14         of the Comptroller to provide technical

15         assistance to agencies for certain purposes;

16         providing an effective date.

17

18  Be It Enacted by the Legislature of the State of Florida:

19

20         Section 1.  Section 489.145, Florida Statutes, is

21  amended to read:

22         489.145  Guaranteed energy performance savings

23  efficiency contracting.--

24         (1)  SHORT TITLE.--This section may be cited as the

25  "Guaranteed Energy Performance Savings Contracting Act."

26         (2)  LEGISLATIVE FINDINGS.--The Legislature finds that

27  investment in energy conservation measures in agency

28  facilities can reduce the amount of energy consumed and

29  produce immediate and long-term savings. It is the policy of

30  this state to encourage agencies to invest in energy

31  conservation measures that reduce energy consumption, produce

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  1  a cost savings for the agency, and improve the quality of

  2  indoor air in public facilities and to operate, maintain, and,

  3  when economically feasible, build or renovate existing agency

  4  facilities in such a manner as to minimize energy consumption

  5  and maximize energy savings. It is further the policy of this

  6  state to encourage agencies to reinvest any energy savings

  7  resulting from energy conservation measures in additional

  8  energy conservation efforts.

  9         (3)(1)  DEFINITIONS.--As used in this section, the

10  term:

11         (a)  "Agency" means the state, a municipality, a school

12  district or school board, or a another political subdivision.

13         (b)  "Energy conservation measure" means a training

14  program, or facility alteration, or equipment purchase to be

15  used in new construction, including an addition to an existing

16  facility, which that reduces energy consumption or operating

17  costs and includes, but is not limited to:

18         1.  Insulation of the facility building structure and

19  systems within the facility building.

20         2.  Storm windows and doors, caulking or

21  weatherstripping, multiglazed windows and doors,

22  heat-absorbing, or heat-reflective, glazed and coated window

23  and door systems, additional glazing, reductions in glass

24  area, and other window and door system modifications that

25  reduce energy consumption.

26         3.  Automatic energy control systems.

27         4.  Heating, ventilating, or air-conditioning system

28  modifications or replacements.

29         5.  Replacement or modifications of lighting fixtures

30  to increase the energy efficiency of the lighting system,

31  which, at a minimum, must without increasing the overall

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  1  illumination of a facility, unless an increase in illumination

  2  is necessary to conform to the applicable state or local

  3  building code for the lighting system after the proposed

  4  modifications are made.

  5         6.  Energy recovery systems.

  6         7.  Cogeneration systems that produce steam or forms of

  7  energy such as heat, as well as electricity, for use primarily

  8  within a facility building or complex of facilities buildings.

  9         8.  Energy conservation measures that provide long-term

10  operating cost reductions or and significantly reduce Btu

11  consumed.

12         9.  Renewable energy systems, such as solar, biomass,

13  or wind systems.

14         10.  Devices that reduce water consumption or sewer

15  charges.

16         11.  Storage systems, such as fuel cells and thermal

17  storage.

18         12.  Generating technologies, such as microturbines.

19         13.  Any other repair, replacement, or upgrade of

20  existing equipment.

21         (c)  "Energy cost savings" means:

22         1.  A measured reduction in fuel or and energy

23  consumption or stipulated operation and maintenance costs

24  created from the implementation of one or more energy

25  conservation measures when compared with an established

26  baseline for previous fuel or and energy consumption, or

27  stipulated operation and maintenance costs; or.

28         2.  For new construction, a projected reduction in

29  fuel, energy, or operation and maintenance costs created from

30  the implementation of one or more energy conservation measures

31  when compared with the projected fuel or energy consumption,

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  1  or operation and maintenance costs for equipment if the

  2  minimum standards of the state Uniform Building Code were

  3  implemented.

  4         (d)  "Guaranteed energy performance savings contract"

  5  means a contract for the evaluation, and recommendation, and

  6  implementation of energy conservation measures, which, at a

  7  minimum, shall include: including

  8         1.  The design and installation of equipment to

  9  implement one or more of such measures and, if applicable,

10  operation and maintenance of such measures.

11         2.  The amount of any actual annual savings that meet

12  or exceed total annual contract payments made by the agency

13  for the contract.

14         3.  The finance charges incurred by the agency over the

15  life of the contract. The contract may cover repair or

16  replacement of existing equipment in a state-owned building or

17  a state-owned hospital, professional fees, and financing

18  charges to be paid from the energy savings less agreed-upon

19  inflation factors, and maintenance services if applicable.

20         (e)  "Guaranteed energy performance savings contractor

21  Qualified provider" means a person or business that is

22  licensed under chapter 471, chapter 481, or this chapter, and

23  is experienced in the analysis, design, implementation, or

24  installation of energy conservation measures through

25  guaranteed energy performance savings contracts.

26         (4)(2)  PROCEDURES.--

27         (a)  An agency may enter into a guaranteed energy

28  performance savings contract with a guaranteed energy

29  performance savings contractor qualified provider or providers

30  to significantly reduce energy or operating costs of an agency

31

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  1  facility agency-owned building or an agency-owned hospital

  2  through one or more energy conservation measures.

  3         (b)  Before design and installation of energy

  4  conservation measures entering into the contract, the agency

  5  must obtain from a guaranteed energy performance savings

  6  contractor qualified provider or providers a report that

  7  summarizes the costs associated with of the energy

  8  conservation measures and provides an estimate of the amount

  9  of the energy and or operating cost savings costs will be

10  reduced. The agency and the guaranteed energy performance

11  savings contractor may enter into a separate agreement to pay,

12  within 120 days after the execution of the separate agreement,

13  for costs associated with the preparation and delivery of the

14  report or may agree to include the cost of such report in the

15  guaranteed energy performance savings contract upon subsequent

16  execution.

17         (c)  After a review of the report, The agency may enter

18  into a guaranteed energy performance savings contract with a

19  guaranteed energy performance savings contractor if the agency

20  it finds that the amount the agency it would spend on the

21  energy conservation measures will is not likely to exceed the

22  amount of the to be saved in energy cost savings and operating

23  cost savings costs for up to 20 10 years from the date of

24  installation, based on life cycle cost calculations, if the

25  recommendations in the report were followed and if the

26  qualified provider or providers give a written guarantee that

27  the energy or operating cost savings will meet or exceed the

28  costs of the system. The contract may provide for installment

29  payments for a period not to exceed 20 10 years.

30         (d)  A guaranteed energy performance savings contractor

31  qualified provider or providers must be selected in compliance

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  1  with s. 287.055; except that if fewer than three firms are

  2  qualified to perform the required services, the requirement

  3  for agency selection of three firms, as provided in s.

  4  287.055(4)(b), and the bid requirements of s. 287.057 do not

  5  apply.

  6         (e)  Before entering into a guaranteed energy

  7  performance savings contract under this section, an agency

  8  must provide published notice of the meeting in which it

  9  proposes to award the contract, the names of the parties to

10  the proposed contract, and the contract's purpose.

11         (f)  A guaranteed energy performance savings contract

12  may provide for financing, including tax exempt financing, by

13  a third party. The contract for third party financing may be

14  separate from the energy performance contract.  A separate

15  contract for third party financing must include a provision

16  that the third party financier must not be granted rights or

17  privileges that exceed the rights and privileges available to

18  the guaranteed energy performance savings contractor.

19         (g)  In calculating the amount it will spend on the

20  energy conservation measures, the agency is permitted to

21  reduce such amount by applying any grants, rebates, or capital

22  funding made available to it for the purposes of buying down

23  the cost of the guaranteed energy performance savings

24  contract.

25         (5)(3)  CONTRACT PROVISIONS.--

26         (a)  A guaranteed energy performance savings contract

27  must include a written energy guarantee that may include, but

28  is not limited to the form of, a letter of credit, insurance

29  policy, or corporate guarantee by the guaranteed energy

30  performance savings contractor qualified provider or providers

31

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  1  that annual energy and operational cost savings will meet or

  2  exceed the amortized cost of energy conservation measures.

  3         (b)  The guaranteed energy performance savings contract

  4  must provide that all payments, except obligations on

  5  termination of the contract before its expiration, may be made

  6  over time, but not to exceed 20 10 years from the date of

  7  complete installation and acceptance by the agency state, and

  8  that the annual savings are guaranteed to the extent necessary

  9  to make annual payments to satisfy the guaranteed energy

10  performance savings contract for the systems.

11         (c)  The guaranteed energy performance savings contract

12  must require that the guaranteed energy performance savings

13  contractor a qualified provider or providers to whom the

14  contract is awarded provide a 100-percent public construction

15  project value bond to the agency state for its faithful

16  performance, as required by s. 255.05 chapter 287.

17         (d)  The guaranteed energy performance savings contract

18  may contain a provision allocating to the parties to the

19  contract any annual energy cost savings that exceed the amount

20  of the energy cost savings guaranteed in the contract.

21         (e)  The guaranteed energy performance savings contract

22  shall require the guaranteed energy performance savings

23  contractor to provide to the agency an annual reconciliation

24  of the guaranteed energy cost savings. If the reconciliation

25  reveals a shortfall in annual energy cost savings, the

26  guaranteed energy performance savings contractor is liable for

27  such shortfall. If the reconciliation reveals an excess in

28  annual energy cost savings, the excess savings may be

29  allocated under paragraph (d) but may not be used to cover

30  potential energy cost savings shortages in subsequent contract

31  years.

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  1         (f)(d)  The guaranteed energy performance savings

  2  contract must provide for payments of not less than

  3  one-twentieth one-tenth of the price to be paid within 2 years

  4  from the date of the complete installation and acceptance by

  5  the agency state, and the remaining costs to be paid at least

  6  quarterly, not to exceed a 20-year 10-year term, based on life

  7  cycle cost calculations.

  8         (g)(e)  The guaranteed energy performance savings

  9  contract may extend beyond the fiscal year in which it becomes

10  effective; however, the term of any contract expires at the

11  end of each fiscal year and may be automatically renewed

12  annually for up to 20 10 years, subject to the agency making

13  sufficient annual appropriations based upon continued realized

14  energy savings.

15         (h)(f)  The guaranteed energy performance savings

16  contract must stipulate that it does not constitute a debt,

17  liability, or obligation of the state.

18         (6)  TECHNICAL ASSISTANCE.--The Department of

19  Management Services or the Office of the Comptroller shall,

20  within available resources, provide technical assistance to

21  agencies contracting for energy conservation measures, develop

22  model contractual and related documents for use by state

23  agencies, establish a technical board for the purpose of

24  reviewing guaranteed energy performance savings contracts, and

25  engage in other activities considered appropriate by the

26  department for promoting and facilitating guaranteed energy

27  performance savings contracting by agencies.

28         Section 2.  This act shall take effect October 1, 2001.

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  2                          HOUSE SUMMARY

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      Changes energy efficiency contracting provisions to
  4    provide for guaranteed energy performance savings
      contracting. See bill for details.
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