CS/HB 271

1	A bill to be entitled
2	An act relating to contracting for efficiency or
3	conservation measures by state agencies; amending s.
4	471.003, F.S.; revising criteria for certain exemptions
5	from qualifications to practice engineering in this state;
6	providing a definition; amending s. 471.023, F.S.;
7	exempting certain business organizations from obtaining a
8	certification of authorization to provide engineering
9	services to the public; amending s. 489.145, F.S.;
10	including water and wastewater efficiency and conservation
11	in the measures encouraged by the Legislature; revising
12	definitions; providing for inclusion of water and
13	wastewater efficiency and conservation measures in
14	guaranteed performance savings contracts entered into by
15	state agencies, municipalities, or political subdivisions;
16	exempting guaranteed performance savings contractors from
17	engineering certification requirements under certain
18	circumstances; amending s. 1013.23, F.S.; exempting energy
19	performance contractors from engineering certification
20	requirements under certain circumstances; amending s.
21	287.064, F.S., relating to consolidated financing of
22	deferred-payment purchases, to conform; providing an
23	effective date.
24
25	Be It Enacted by the Legislature of the State of Florida:
26
27	Section 1.  Subsection (2) of section 471.003, Florida
28	Statutes, is amended to read:
29	471.003  Qualifications for practice; exemptions.--
30	(2)  The following persons are not required to be licensed
31	under the provisions of this chapter as a licensed engineer:
32	(a)  Any person practicing engineering for the improvement
33	of, or otherwise affecting, property legally owned by her or
34	him, unless such practice involves a public utility or the
35	public health, safety, or welfare or the safety or health of
36	employees. This paragraph shall not be construed as authorizing
37	the practice of engineering through an agent or employee who is
38	not duly licensed under the provisions of this chapter.
39	(b)1.  A person acting as a public officer employed by any
40	state, county, municipal, or other governmental unit of this
41	state when working on any project the total estimated cost of
42	which is $10,000 or less.
43	2.  Persons who are employees of any state, county,
44	municipal, or other governmental unit of this state and who are
45	the subordinates of a person in responsible charge licensed
46	under this chapter, to the extent that the supervision meets
47	standards adopted by rule of the board.
48	(c)  Regular full-time employees of a corporation not
49	engaged in the practice of engineering as such, whose practice
50	of engineering for such corporation is limited to the design or
51	fabrication of manufactured products and servicing of such
52	products.
53	(d)  Regular full-time employees of a public utility or
54	other entity subject to regulation by the Florida Public Service
55	Commission, Federal Energy Regulatory Commission, or Federal
56	Communications Commission.
57	(e)  Employees of a firm, corporation, or partnership who
58	are the subordinates of a person in responsible charge, licensed
59	under this chapter.
60	(f)  Any person as contractor in the execution of work
61	designed by a professional engineer or in the supervision of the
62	construction of work as a foreman or superintendent.
63	(g)  A licensed surveyor and mapper who takes, or contracts
64	for, professional engineering services incidental to her or his
65	practice of surveying and mapping and who delegates such
66	engineering services to a licensed professional engineer
67	qualified within her or his firm or contracts for such
68	professional engineering services to be performed by others who
69	are licensed professional engineers under the provisions of this
70	chapter.
71	(h)  Any electrical, plumbing, air-conditioning, or
72	mechanical contractor whose practice includes the design and
73	fabrication of electrical, plumbing, air-conditioning, or
74	mechanical systems, respectively, which she or he installs by
75	virtue of a license issued under chapter 489, under part I of
76	chapter 553, or under any special act or ordinance when working
77	on any construction project which:
78	1.  Requires an electrical or plumbing or air-conditioning
79	and refrigeration system with a value of $50,000 or less; and
80	2.a.  Requires an aggregate service capacity of 600 amperes
81	(240 volts) or less on a residential electrical system or 800
82	amperes (240 volts) or less on a commercial or industrial
83	electrical system;
84	b.  Requires a plumbing system with fewer than 250 fixture
85	units; or
86	c.  Requires a heating, ventilation, and air-conditioning
87	system not to exceed a 15-ton-per-system capacity, or if the
88	project is designed to accommodate 100 or fewer persons.
89	(i)  Any general contractor, certified, or registered, or
90	possessing a certificate of authority pursuant to the provisions
91	of chapter 489, when negotiating or performing services under a
92	design-build contract as long as the engineering services
93	offered or rendered in connection with the contract are offered
94	and rendered by an engineer licensed in accordance with this
95	chapter. For purposes of this paragraph, a "design-build
96	contract" is a contract with a single individual or business
97	organization for the design and construction of a project,
98	including, but not limited to, construction, rehabilitation, and
99	renovation activities.
100	(j)  Any defense, space, or aerospace company, whether a
101	sole proprietorship, firm, limited liability company,
102	partnership, joint venture, joint stock association,
103	corporation, or other business entity, subsidiary, or affiliate,
104	or any employee, contract worker, subcontractor, or independent
105	contractor of the defense, space, or aerospace company who
106	provides engineering for aircraft, space launch vehicles, launch
107	services, satellites, satellite services, or other defense,
108	space, or aerospace-related product or services, or components
109	thereof.
110	Section 2.  Subsection (6) is added to section 471.023,
111	Florida Statutes, to read:
112	471.023  Certification of business organizations.--
113	(6)  A business organization meeting the definition of a
114	design-build firm under s. 287.055 is not required to obtain a
115	certification of authorization under this section in order to
116	negotiate, enter into, or perform a public or private design-
117	build contract.
118	Section 3.  Section 489.145, Florida Statutes, is amended
119	to read:
120	489.145  Guaranteed energy performance savings
121	contracting.--
122	(1)  SHORT TITLE.--This section may be cited as the
123	"Guaranteed Energy Performance Savings Contracting Act."
124	(2)  LEGISLATIVE FINDINGS.--The Legislature finds that
125	investment in energy, water, and wastewater efficiency or
126	conservation measures in agency facilities can reduce the amount
127	of energy and water consumed and wastewater to be treated and
128	produce immediate and long-term savings. It is the policy of
129	this state to encourage each agency agencies to invest in
130	energy, water, and wastewater efficiency or conservation
131	measures that provide such reductions reduce energy consumption,
132	produce a cost savings for the agency, and, for energy measures,
133	improve the quality of indoor air in public facilities and to
134	operate, maintain, and, when economically feasible, build or
135	renovate existing agency facilities in such a manner as to
136	minimize energy and water consumption and wastewater production
137	and maximize energy, water, and wastewater savings. It is
138	further the policy of this state to encourage each agency
139	agencies to reinvest any energy savings resulting from energy,
140	water, and wastewater efficiency or conservation measures in
141	additional energy, water, and wastewater efficiency or
142	conservation measures efforts.
143	(3)  DEFINITIONS.--As used in this section, the term:
144	(a)  "Agency" means the state, a municipality, or a
145	political subdivision.
146	(b)  "Energy, water, or wastewater efficiency or
147	conservation measure" means a training program, facility
148	alteration, or equipment purchase to be used in new facilities
149	or in retrofitting or adding to existing facilities or
150	infrastructure that new construction, including an addition to
151	an existing facility, which reduces energy, water, wastewater,
152	or operating costs and includes, but is not limited to:
153	1.  Insulation of the facility structure and systems within
154	the facility.
155	2.  Storm windows and doors, caulking or weatherstripping,
156	multiglazed windows and doors, heat-absorbing, or heat-
157	reflective, glazed and coated window and door systems,
158	additional glazing, reductions in glass area, and other window
159	and door system modifications that reduce energy consumption.
160	3.  Automatic energy control systems.
161	4.  Heating, ventilating, or air-conditioning system
162	modifications or replacements.
163	5.  Replacement or modifications of lighting fixtures to
164	increase the energy efficiency of the lighting system, which, at
165	a minimum, must conform to the applicable state or local
166	building code.
167	6.  Energy recovery systems.
168	7.  Cogeneration systems that produce steam or forms of
169	energy such as heat, as well as electricity, for use primarily
170	within a facility or complex of facilities.
171	8.  Energy conservation measures that provide long-term
172	operating cost reductions or significantly reduce Btu consumed.
173	9.  Renewable energy systems, such as solar, biomass, or
174	wind systems.
175	10.  Devices that reduce water consumption or wastewater
176	sewer charges.
177	11.  Equipment upgrades that improve the accuracy of
178	billable revenue-generating systems.
179	12.  Automated electronic or remotely controlled systems or
180	measures that reduce direct personnel costs.
181	13.  Such other energy, water, or wastewater efficiency or
182	conservation measures as may provide measurable operating cost
183	reductions or billable revenue increases.
184	14.11.  Energy storage systems, such as fuel cells and
185	thermal storage.
186	15.12.  Energy-generating generating technologies, such as
187	microturbines.
188	16.  Cool roof coating.
189	17.13.  Any other repair, replacement, or upgrade of
190	existing equipment.
191	(c)  "Energy, water, or wastewater cost savings" means a
192	measured reduction in the cost of fuel, energy or water
193	consumption, or wastewater production and stipulated improvement
194	in the operation and maintenance created from the implementation
195	of one or more energy, water, or wastewater efficiency or
196	conservation measures when compared with an established baseline
197	for the previous cost of fuel, energy or water consumption, or
198	wastewater production and stipulated operation and maintenance.
199	(d)  "Guaranteed energy performance savings contract" means
200	a contract for the evaluation, recommendation, and
201	implementation of energy, water, or wastewater efficiency or
202	conservation measures, which, at a minimum, shall include:
203	1.  The design and installation of equipment to implement
204	one or more of such measures and, if applicable, operation and
205	maintenance of such measures.
206	2.  The amount of any actual annual savings that meet or
207	exceed total annual contract payments made by the agency for the
208	contract.
209	3.  The finance charges incurred by the agency over the
210	life of the contract.
211	(e)  "Guaranteed energy performance savings contractor"
212	means a person or business that is licensed under chapter 471,
213	chapter 481, or this chapter, and is experienced in the
214	analysis, design, implementation, or installation of energy,
215	water, or wastewater efficiency or conservation measures through
216	energy performance contracts.
217	(4)  PROCEDURES.--
218	(a)  An agency may enter into a guaranteed energy
219	performance savings contract with a guaranteed energy
220	performance savings contractor to significantly reduce energy,
221	water, or wastewater or operating costs of an agency facility
222	through one or more energy, water, or wastewater efficiency or
223	conservation measures.
224	(b)  Before design and installation of energy, water, or
225	wastewater efficiency and conservation measures, the agency must
226	obtain from a guaranteed energy performance savings contractor a
227	report that summarizes the costs associated with the energy
228	conservation measures and provides an estimate of the amount of
229	the associated energy cost savings or operational improvements.
230	The issuance of such report and the design and installation of
231	energy, water, or wastewater efficiency and conservation
232	measures pursuant to a guaranteed performance savings contract
233	shall not subject the guaranteed performance savings contractor
234	to the provisions of s. 471.023. The agency and the guaranteed
235	energy performance savings contractor may enter into a separate
236	agreement to pay for costs associated with the preparation and
237	delivery of the report; however, payment to the contractor shall
238	be contingent upon the report's projection of energy cost
239	savings being equal to or greater than the total projected costs
240	of the design and installation of the report's energy
241	conservation or efficiency measures.
242	(c)  The agency may enter into a guaranteed energy
243	performance savings contract with a guaranteed energy
244	performance savings contractor if the agency finds that the
245	amount the agency would spend on the energy conservation or
246	efficiency measures will not likely exceed the amount of the
247	associated energy cost savings for up to 20 years from the date
248	of installation, based on the life cycle cost calculations
249	provided in s. 255.255, if the recommendations in the report
250	were followed and if the qualified provider or providers give a
251	written guarantee that such the energy cost savings will meet or
252	exceed the costs of the system. The contract may provide for
253	installment payments for a period not to exceed 20 years.
254	(d)  A guaranteed energy performance savings contractor
255	must be selected in compliance with s. 287.055; except that if
256	fewer than three firms are qualified to perform the required
257	services, the requirement for agency selection of three firms,
258	as provided in s. 287.055(4)(b), and the bid requirements of s.
259	287.057 do not apply.
260	(e)  Before entering into a guaranteed energy performance
261	savings contract, an agency must provide published notice of the
262	meeting in which it proposes to award the contract, the names of
263	the parties to the proposed contract, and the contract's
264	purpose.
265	(f)  A guaranteed energy performance savings contract may
266	provide for financing, including tax-exempt tax exempt
267	financing, by a third party. The contract for third-party third
268	party financing may be separate from the energy performance
269	savings contract. A separate contract for third-party third
270	party financing must include a provision that the third-party
271	third party financier must not be granted rights or privileges
272	that exceed the rights and privileges available to the
273	guaranteed energy performance savings contractor.
274	(g)  In determining the amount the agency will finance to
275	acquire the efficiency or energy conservation measures, the
276	agency may reduce such amount by the application of any grant
277	moneys, rebates, or capital funding available to the agency for
278	the purpose of buying down the cost of the guaranteed energy
279	performance savings contract. However, in calculating the life
280	cycle cost as required in paragraph (c), the agency shall not
281	apply any grants, rebates, or capital funding.
282	(5)  CONTRACT PROVISIONS.--
283	(a)  A guaranteed energy performance savings contract must
284	include a written guarantee that may include, but is not limited
285	to the form of, a letter of credit, insurance policy, or
286	corporate guarantee by the guaranteed energy performance savings
287	contractor that annual associated energy cost savings will meet
288	or exceed the amortized cost of the efficiency or energy
289	conservation measures.
290	(b)  The guaranteed energy performance savings contract
291	must provide that all payments, except obligations on
292	termination of the contract before its expiration, may be made
293	over time, but not to exceed 20 years from the date of complete
294	installation and acceptance by the agency, and that the annual
295	savings are guaranteed to the extent necessary to make annual
296	payments to satisfy the guaranteed energy performance savings
297	contract.
298	(c)  The guaranteed energy performance savings contract
299	must require that the guaranteed energy performance savings
300	contractor to whom the contract is awarded provide a 100-percent
301	public construction bond to the agency for its faithful
302	performance, as required by s. 255.05.
303	(d)  The guaranteed energy performance savings contract may
304	contain a provision allocating to the parties to the contract
305	any annual associated energy cost savings that exceed the amount
306	of the associated energy cost savings guaranteed in the
307	contract.
308	(e)  The guaranteed energy performance savings contract
309	shall require the guaranteed energy performance savings
310	contractor to provide to the agency an annual reconciliation of
311	the guaranteed associated energy cost savings. If the
312	reconciliation reveals a shortfall in such annual energy cost
313	savings, the guaranteed energy performance savings contractor is
314	liable for such shortfall. If the reconciliation reveals an
315	excess in such annual energy cost savings, the excess savings
316	may be allocated under paragraph (d) but may not be used to
317	cover potential energy cost savings shortages in subsequent
318	contract years.
319	(f)  The guaranteed energy performance savings contract
320	must provide for payments of not less than one-twentieth of the
321	price to be paid within 2 years from the date of the complete
322	installation and acceptance by the agency, and the remaining
323	costs to be paid at least quarterly, not to exceed a 20-year
324	term, based on life cycle cost calculations.
325	(g)  The guaranteed energy performance savings contract may
326	extend beyond the fiscal year in which it becomes effective;
327	however, the term of any contract expires at the end of each
328	fiscal year and may be automatically renewed annually for up to
329	20 years, subject to the agency making sufficient annual
330	appropriations based upon continued realized energy, water, or
331	wastewater savings.
332	(h)  The guaranteed energy performance savings contract
333	must stipulate that it does not constitute a debt, liability, or
334	obligation of the state.
335	(6)  PROGRAM ADMINISTRATION AND CONTRACT REVIEW.--The
336	Department of Management Services, with the assistance of the
337	Office of the Chief Financial Officer, may, within available
338	resources, provide technical assistance to state agencies
339	contracting for energy, water, or wastewater efficiency or
340	conservation measures and engage in other activities considered
341	appropriate by the department for promoting and facilitating
342	guaranteed energy performance contracting by state agencies. The
343	Office of the Chief Financial Officer, with the assistance of
344	the Department of Management Services, may, within available
345	resources, develop model contractual and related documents for
346	use by state agencies. Prior to entering into a guaranteed
347	energy performance savings contract, any contract or lease for
348	third-party financing, or any combination of such contracts, a
349	state agency shall submit such proposed contract or lease to the
350	Office of the Chief Financial Officer for review and approval.
351	Section 4.  Paragraph (d) of subsection (3) of section
352	1013.23, Florida Statutes, is amended to read:
353	1013.23  Energy efficiency contracting.--
354	(3)  ENERGY PERFORMANCE-BASED CONTRACT PROCEDURES.--
355	(d)  Prior to the design and installation of the energy
356	conservation measure, the district school board, community
357	college board of trustees, or state university board of trustees
358	must obtain from the energy performance contractor a report that
359	discloses all costs associated with the energy conservation
360	measure and provides an estimate of the amount of the energy
361	cost savings. The report must be reviewed by either the
362	Department of Education or the Department of Management Services
363	or signed and sealed by a registered professional engineer. The
364	issuance of such report and the design and installation of
365	energy conservation measures pursuant to an energy performance-
366	based contract shall not subject the energy performance
367	contractor to the provisions of s. 471.023.
368	Section 5.  Subsection (10) of section 287.064, Florida
369	Statutes, is amended to read:
370	287.064  Consolidated financing of deferred-payment
371	purchases.--
372	(10)  Costs incurred pursuant to a guaranteed energy
373	performance savings contract, including the cost of energy,
374	water, or wastewater efficiency and conservation measures, each
375	as defined in s. 489.145, may be financed pursuant to a master
376	equipment financing agreement; however, the costs of training,
377	operation, and maintenance may not be financed. The period of
378	time for repayment of the funds drawn pursuant to the master
379	equipment financing agreement under this subsection may exceed 5
380	years but may not exceed 10 years.
381	Section 6.  This act shall take effect July 1, 2007.

CODING: Words stricken are deletions; words underlined are additions.