Florida Senate - 2008 (Reformatted) SB 312

By Senator Constantine

22-00117-08 2008312__

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A bill to be entitled

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An act relating to state procurement of sustainable

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buildings and equipment; amending s. 255.251, F.S.;

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revising a short title; amending s. 255.252, F.S.;

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revising criteria concerning the energy efficiency and

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sustainability of state facilities; requiring that

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buildings constructed, financed, or leased by the state

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meet various sustainable-building standards; providing for

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the Department of Management Services to approve certain

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sustainable-building rating systems; requiring state

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agencies to identify state-owned facilities that are

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suitable for guaranteed energy performance savings

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contracts; providing requirements and procedures therefor;

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requiring the Department of Management Services to

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evaluate identified facilities and develop an energy

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efficiency project schedule; providing criteria for such

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schedule; amending s. 255.253, F.S.; providing

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definitions; amending s. 255.254, F.S.; revising criteria

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governing evaluation and disclosure of life-cycle costs

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prior to construction of certain state facilities;

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requiring certain state-owned buildings to meet

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sustainable-building ratings; revising provisions

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concerning leasing of certain buildings to require an

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analysis of energy performance; amending s. 255.255, F.S.;

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requiring that certain rules and procedures of the

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department concerning energy efficiency and conservation

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performance guidelines be based on sustainable building

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ratings; amending s. 287.063, F.S.; prohibiting extension

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of the term of payment for consolidated equipment finance

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contracts beyond the anticipated useful life of the

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equipment financed; providing exemptions from the

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prohibition; revising criteria governing appropriations

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for payment of purchases under certain deferred-payment

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contracts; amending s. 287.064, F.S.; extending the time

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allowed for the repayment of funds for certain purchases

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of energy conservation measures under specified

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conditions; providing an effective date.

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

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     Section 1.  Section 255.251, Florida Statutes, is amended to

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read:

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     255.251 Energy Conservation and Sustainable in Buildings

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Act; short title.--Sections 255.251-255.257 may This act shall be

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cited as the "Florida Energy Conservation and Sustainable in

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Buildings Act of 1974."

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     Section 2.  Section 255.252, Florida Statutes, is amended to

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read:

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     255.252  Findings and intent.--

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     (1)  Operating and maintenance expenditures associated with

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energy equipment and with energy consumed in state-financed and

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leased buildings represent a significant cost over the life of a

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building. Energy conserved by appropriate building design and

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operation not only reduces the demand for energy and the but also

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reduces costs of for building operation. For example, commercial

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buildings are estimated to use from 20 to 80 percent more energy

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than would be required if energy-conserving designs were used.

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The size, design, orientation, and operability of windows, the

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ratio of ventilating air to air heated or cooled, the level of

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lighting consonant with space-use requirements, the handling of

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occupancy loads, and the ability to zone off areas not requiring

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equivalent levels of heating or cooling are but a few of the

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considerations necessary to conserving energy.

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     (2) Significant efforts are needed in order for the

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buildings and equipment that the state owns or leases to meet

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energy-efficiency and sustainable-materials standards underway by

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the General Services Administration, the National Institute of

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Standards and Technology, and others to detail the considerations

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and practices for energy conservation in buildings. Most

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important is that energy-efficient designs provide energy savings

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over the life of the building structure. Conversely, energy-

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inefficient designs cause excess and wasteful energy use and high

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costs over that life. With buildings lasting many decades and

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with energy costs escalating rapidly, it is essential that the

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costs of operation and maintenance of for energy-using equipment

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and sustainable materials be included in all design proposals for

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state-owned state buildings.

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     (3) In order that such energy-efficiency and sustainable-

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materials considerations become a function of building design,

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and also a model for future application in the private sector, it

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is shall be the policy of the state that buildings constructed

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and financed by the state be designed and constructed:

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     (a) To meet the United States Green Building Council

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(USGBC) Leadership in Energy and Environmental Design (LEED)

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rating system, Green Building Initiative's Green Globes rating

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system, or a nationally recognized, high-performance sustainable

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building rating system as approved by the department.

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     (b) In a manner that which will minimize the consumption of

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energy used in the operation and maintenance of such buildings.

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It is further the policy of the state, when economically

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feasible, to retrofit existing state-owned buildings in a manner

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which will minimize the consumption of energy used in the

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operation and maintenance of such buildings.

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     (4)  In addition to designing and constructing new buildings

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to meet such rating systems and be energy-efficient, it is shall

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be the policy of the state to:

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     (a) Operate, maintain, and renovate existing state-owned

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state facilities, or provide for their renovation, in a manner

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that which will minimize their energy consumption and maximize

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their sustainability;

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     (b) Ensure that facilities leased by the state are operated

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so as to minimize energy use; and.

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     (c) Encourage agencies are encouraged to consider shared

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savings financing of such energy projects, using contracts that

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which split the resulting savings for a specified period of time

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between the agency and the private firm or cogeneration contracts

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that which otherwise permit the state to lower the state's its

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energy costs. Such energy contracts may be funded from the

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operating budget.

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     (5)(a) By December 31, 2008, each state agency responsible

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for paying the utilities and other operating expenses related to

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energy use of a state-owned facility of more than 5,000 square

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feet shall provide the department with a list specifying which of

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those facilities it considers suitable for a guaranteed energy

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performance contract under s. 489.145 and a description of any

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criteria used to determine suitability.

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     (b) By March 1, 2009, the department, in consultation with

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the secretary or director of each agency submitting a list, shall

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develop a schedule for energy efficiency and conservation

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projects at the facilities which:

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     1. Is based on the magnitude of the project, the

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effectiveness of the energy efficiency or conservation measures

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to be implemented, and such other factors as may prove to be

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advantageous to pursue; and

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     2. Provides the deadline for completion of efficiency

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improvements to the facilities under a guaranteed energy

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performance savings contract.

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     Section 3.  Subsections (6) and (7) are added to section

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255.253, Florida Statutes, to read:

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     255.253  Definitions; ss. 255.251-255.258.--

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     (6) "Sustainable building" means a building that is healthy

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and comfortable for its occupants and is economical to operate

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while conserving resources, including energy, water, raw

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materials, and land, and minimizing the generation of toxic

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materials and waste in its design, construction, landscaping, and

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operation.

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     (7) "Sustainable building rating" means a rating

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established by the United States Green Building Council (USGBC)

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Leadership in Energy and Environmental Design (LEED) rating

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system, Green Building Initiative's Green Globes rating system,

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or a nationally recognized, high-performance sustainable building

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rating system as approved by the department.

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     Section 4.  Section 255.254, Florida Statutes, is amended to

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read:

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     255.254 Analysis of No facility constructed or leased

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without life-cycle and energy performance costs of facilities and

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equipment.--

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     (1) A No state agency may not shall lease, construct, or

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have constructed, within limits prescribed herein, a facility

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without having secured from the department an a proper evaluation

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of life-cycle costs based on sustainable building ratings, as

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computed by an architect or engineer. Furthermore, construction

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shall proceed only upon disclosing, for the facility chosen, the

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life-cycle costs as determined in s. 255.255, its sustainable

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building rating goal, and the capitalization of its the initial

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construction costs of the building. The life-cycle costs and goal

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for a sustainable-building rating are shall be a primary

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considerations consideration in selecting the selection of a

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building design. A state agency may not lease a building Such

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analysis shall be required only for construction of buildings

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with an area of 5,000 square feet or greater which is. For leased

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areas of 20,000 square feet or greater within a given building

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boundary unless an analysis of the energy performance of the

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facility demonstrates, a life-cycle analysis shall be performed,

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and a lease shall only be made where there is a showing that the

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energy life-cycle costs incurred by the state are minimal

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compared to those of available like facilities.

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     (2) A On and after January 1, 1979, no state agency may not

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shall initiate construction or have construction initiated

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before, prior to approval thereof by the department, on a

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facility or self-contained unit of any facility, the design and

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construction of which incorporates or contemplates the use of an

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energy system other than a solar energy system when the life-

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cycle costs analysis prepared by the department has determined

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that a solar energy system is the most cost-efficient energy

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system for the facility or unit.

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     (3) After September 30, 1985, When a any state agency must

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replace or supplement major items of energy-consuming equipment

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in existing state-owned or leased facilities or any self-

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contained unit of any facility with other such major items of

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energy-consuming equipment, the selection of the replacement or

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supplement such items shall be based upon made on the basis of a

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life-cycle cost analysis of alternatives in accordance with rules

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adopted promulgated by the department under s. 255.255.

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     Section 5.  Subsection (1) of section 255.255, Florida

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Statutes, is amended to read:

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     255.255  Life-cycle costs.--

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     (1) The department shall adopt promulgate rules and

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procedures, including energy conservation performance guidelines,

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for:

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     (a) Conducting an analysis of the a life-cycle costs of

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competing options as a state agency selects facilities or major

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items of energy-consuming equipment for purchase, construction,

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or lease. Such options may include, but are not limited to, cost

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analysis of alternative architectural and engineering designs.

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     (b) Establishing and alternative major items of energy-

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consuming equipment to be retrofitted in existing state-owned or

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leased facilities and for developing energy performance indices

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to evaluate the efficiency of energy utilization for competing

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designs in the construction of state-financed and leased

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facilities.

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The rules must include guidelines for energy efficiency and

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conservation performance which are based on sustainable building

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ratings.

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     Section 6.  Paragraph (b) of subsection (2) and subsection

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(5) of section 287.063, Florida Statutes, are amended to read:

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     287.063  Deferred-payment commodity contracts; preaudit

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review.--

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     (2)

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     (b) The Chief Financial Officer shall adopt rules

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concerning the approval of establish, by rule, criteria for

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approving purchases made under deferred-payment contracts which

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require the payment of interest. Criteria for approval shall

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include, but are not be limited to, the following provisions:

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     1. A No contract shall be approved in which interest

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exceeds the limit specified statutory ceiling contained in

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subsection (1) may not be approved this section. However, the

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interest component of any master equipment financing agreement

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entered into for the purpose of consolidated financing of a

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deferred-payment, installment sale, or lease-purchase is shall be

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deemed to comply with the interest rate limitation of this

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paragraph if section so long as the interest component of each

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every interagency agreement under such master equipment financing

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agreement complies with the limit specified in subsection (1)

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interest rate limitation of this section.

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     2. A No deferred-payment purchase for less than $30,000 may

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not shall be approved, unless it is can be satisfactorily

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demonstrated and documented to the Chief Financial Officer that

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failure to make such deferred-payment purchase would adversely

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affect an agency in the performance of the agency's its duties.

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However, the Chief Financial Officer may approve any deferred-

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payment purchase if the Chief Financial Officer determines that

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such purchase is economically beneficial to this the state.

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     3. No agency shall obligate an annualized amount of

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payments for deferred-payment purchases in excess of current

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operating capital outlay appropriations, unless specifically

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authorized by law or unless it can be satisfactorily demonstrated

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and documented to the Chief Financial Officer that failure to

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make such deferred-payment purchase would adversely affect an

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agency in the performance of its duties.

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     3.4. A No contract that shall be approved which extends

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payment beyond 5 years may not be approved, unless it is can be

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satisfactorily demonstrated and documented to the Chief Financial

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Officer that failure to make such deferred-payment purchase would

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adversely affect an agency in the performance of the agency's its

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duties. The payment term may not exceed the useful life of the

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equipment purchased unless the contract provides for the

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replacement or the extension of the useful life of the equipment

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during the term of the loan.

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     (5) For purposes of this section, the annualized amount of

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any such deferred payment commodity contract must be supported

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from available recurring funds appropriated to the agency in an

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appropriation category, other than the expense appropriation

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category as defined in chapter 216, that the Chief Financial

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Officer has determined is appropriate or that the Legislature has

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designated for payment of the obligation incurred under this

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section.

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     Section 7.  Subsections (10) and (11) of section 287.064,

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Florida Statutes, are amended to read:

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     287.064  Consolidated financing of deferred-payment

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purchases.--

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     (10)  Costs incurred pursuant to a guaranteed energy

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performance savings contract, including the cost of energy

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conservation measures, each as defined in s. 489.145, may be

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financed pursuant to a master equipment financing agreement;

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however, the costs of training, operation, and maintenance may

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not be financed. For energy conservation measures pursuant to s.

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489.145, excluding the costs of training, operation, and

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maintenance, the period of time for repayment of the funds drawn

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pursuant to the master equipment financing agreement under this

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subsection may exceed 5 years but may not exceed 20 10 years. The

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guaranteed energy performance savings contract shall require that

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the contractor, for the duration of the contract, replace the

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equipment or extend its useful life.

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     (11)  For purposes of consolidated financing of deferred

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payment commodity contracts under this section by a state agency,

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any such contract must be supported from available recurring

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funds appropriated to the agency in an appropriation category,

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other than the expense appropriation category as defined in

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chapter 216, that the Chief Financial Officer has determined is

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appropriate or that the Legislature has designated for payment of

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the obligation incurred under this section.

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     Section 8.  This act shall take effect July 1, 2008.

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