View Daily Data Tracking History
View Bill Text
View Statement of Purpose / Fiscal Impact
H0251......................................................by STATE AFFAIRS
ENERGY SAVING PERFORMANCE CONTRACTS - Amends and adds to existing law to
provide for energy saving performance contracts; to provide that certain
sections of the Idaho Code shall not apply to energy savings contracts; to
define terms; to provide for requests for qualification; to provide for
notice; to provide for public inspection; to provide for awards of
performance contracts; to provide for installment payment agreements and
lease-purchase agreements; to provide for terms of performance contracts;
and to provide for monitoring and reports.
02/14 House intro - 1st rdg - to printing
02/15 Rpt prt - to St Aff
02/26 Rpt out - rec d/p - to 2nd rdg
02/27 2nd rdg - to 3rd rdg
02/28 3rd rdg - PASSED - 66-1-3
AYES -- Barraclough, Barrett, Bedke, Bell, Bieter, Black, Boe, Bolz,
Bradford, Bruneel, Callister, Campbell, Chase, Clark, Collins, Crow,
Cuddy, Deal, Denney, Ellis, Ellsworth, Eskridge, Field(13),
Field(20), Gagner, Gould, Hadley, Hammond, Harwood, Henbest, Higgins,
Hornbeck, Jaquet, Jones, Kellogg, Kendell, Kunz, Lake, Loertscher,
Mader, Marley, McKague, Meyer, Montgomery, Mortensen, Moss, Moyle,
Pearce, Pischner, Pomeroy, Raybould, Ridinger, Roberts, Robison,
Sali, Schaefer, Sellman, Shepherd, Smith, Smylie, Stevenson, Stone,
Trail, Wheeler, Wood, Young
NAYS -- Langford
Absent and excused -- Swan, Tilman, Mr. Speaker
Floor Sponsor -- Kunz
Title apvd - to Senate
03/01 Senate intro - 1st rdg - to St Aff
03/08 Rpt out - rec d/p - to 2nd rdg
03/09 2nd rdg - to 3rd rdg
03/20 3rd rdg - PASSED - 35-0-0
AYES -- Andreason, Boatright, Branch, Brandt, Bunderson, Burtenshaw,
Cameron, Danielson, Darrington, Davis, Deide, Dunklin, Frasure,
Geddes, Goedde, Hawkins, Ingram, Ipsen, Keough, King-Barrutia, Lee,
Lodge, Noh, Richardson, Risch, Sandy, Schroeder, Sims, Sorensen,
Stegner, Stennett, Thorne, Wheeler, Whitworth, Williams,
NAYS -- None
Absent and excused -- None
Floor Sponsor -- Sandy
Title apvd - to House
03/21 To enrol
03/22 Rpt enrol - Sp signed - Pres signed - to Gov
03/28 Governor signed
Session Law Chapter 213
Effective: 07/01/01
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature First Regular Session - 2001
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 251
BY STATE AFFAIRS COMMITTEE
1 AN ACT
2 RELATING TO ENERGY SAVINGS PERFORMANCE CONTRACTS; AMENDING SECTION 67-5711,
3 IDAHO CODE, TO PROVIDE THAT CERTAIN BIDDING PROCEDURES SHALL NOT APPLY TO
4 PERFORMANCE CONTRACTS AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION
5 67-5711C, IDAHO CODE, TO PROVIDE A CODE CITATION AND TO MAKE TECHNICAL
6 CORRECTIONS; AND AMENDING CHAPTER 57, TITLE 67, IDAHO CODE, BY THE ADDI-
7 TION OF A NEW SECTION 67-5711D, IDAHO CODE, TO DEFINE TERMS, TO PROVIDE
8 FOR PERFORMANCE CONTRACTS, TO PROVIDE FOR REQUESTS FOR QUALIFICATIONS, TO
9 PROVIDE FOR NOTICE, TO PROVIDE FOR PUBLIC INSPECTION, TO PROVIDE FOR
10 AWARDS OF PERFORMANCE CONTRACTS, TO PROVIDE FOR INSTALLMENT PAYMENT AGREE-
11 MENTS AND LEASE-PURCHASE AGREEMENTS, TO PROVIDE FOR TERMS OF PERFORMANCE
12 CONTRACTS AND TO PROVIDE FOR MONITORING AND REPORTS.
13 Be It Enacted by the Legislature of the State of Idaho:
14 SECTION 1. That Section 67-5711, Idaho Code, be, and the same is hereby
15 amended to read as follows:
16 67-5711. CONSTRUCTION, ALTERATION, EQUIPPING, FURNISHING AND REPAIR OF
17 PUBLIC BUILDINGS AND WORKS. The director of the department of administration,
18 or his designee, of the state of Idaho, is authorized and empowered, subject
19 to the approval of the permanent building fund advisory council, to provide or
20 secure all plans and specifications for, to let all contracts for, and to have
21 charge of and supervision of the construction, alteration, equipping and fur-
22 nishing, repair, maintenance other than preventive maintenance of any and all
23 buildings, improvements of public works of the state of Idaho, the cost of
24 which construction, alteration, equipping and furnishing, repair, maintenance
25 other than preventive maintenance exceeds the sum of thirty thousand dollars
26 ($30,000) for labor, materials and equipment, which sum shall exclude design
27 costs, bid advertising and related bidding expenses, provided, that the direc-
28 tor or his designee, and permanent building fund advisory council shall, in
29 the letting of contracts under this section, comply with the procedure for the
30 calling of bids provided in section 67-5711C, Idaho Code; provided, however,
31 that this section shall not apply to the construction, alteration, equipping
32 or furnishing or repair or maintenance other than preventive maintenance of
33 public buildings under the jurisdiction and control of the board of regents of
34 the Uuniversity of Idaho; provided further, that the bidding procedures
35 required by this section and section 67-5711C, Idaho Code, shall not apply to
36 performance contracts as provided in section 67-5711D, Idaho Code; provided
37 further, that public works for the Idaho transportation department, the
38 department of fish and game, the department of parks and recreation, and the
39 department of lands, except for administrative office buildings and all asso-
40 ciated improvements, are exempt from the provisions of this section that
41 relate to the administration and review of such projects by the director of
42 the department of administration or his designee and by the permanent building
43 fund advisory council. This exemption shall not relieve the Idaho transporta-
2
1 tion department, the department of fish and game, the department of parks and
2 recreation, and the department of lands in the letting of contracts for public
3 works, from complying with the procedures of section 67-5711C, Idaho Code,
4 related to the advertising and bidding for contracts. The permanent building
5 fund advisory council may adopt rules consistent with existing law, including
6 rules for a program of inspection and maintenance, to carry out the provisions
7 of this act.
8 SECTION 2. That Section 67-5711C, Idaho Code, be, and the same is hereby
9 amended to read as follows:
10 67-5711C. CONSTRUCTION OF PUBLIC PROJECTS -- COMPETITIVE SEALED BIDDING.
11 (1) All construction contracts for public works shall be awarded to the lowest
12 responsible and responsive bidder after receipt of competitive sealed bidding
13 except as otherwise provided in sections 67-57131B, 67-5711D and 67-5711B3,
14 Idaho Code.
15 (2) An invitation for bids shall be issued and shall include a project
16 description and all contractual terms and conditions applicable to the public
17 works.
18 (3) Adequate public notice of the invitation for bids shall be given at
19 least fourteen (14) days prior to the date set forth therein for the opening
20 of bids. Such notice shall include publication at least fourteen (14) days
21 prior to bid opening in a newspaper of general circulation in the area where
22 the work is located.
23 (4) Bids shall be opened publicly at the time and place designated in the
24 invitation for bids. The amount of each bid and such other relevant informa-
25 tion as may be specified by rules, together with the name of each bidder,
26 shall be entered on a record and the record shall be open to public inspec-
27 tion. After the time of the award all bids and bid documents shall be open to
28 public inspection in accordance with the provisions of sections 9-337 through
29 9-347 and 67-5725, Idaho Code.
30 (5) With respect to a project having a written cost estimate of greater
31 than two thousand five hundred dollars ($2,500) but less than the public works
32 limit established in section 67-5711, Idaho Code, the agency, if it does not
33 perform the work with existing physical plant staff, must award a written con-
34 tract to the lowest responsible and responsive bidder after soliciting at
35 least three (3) documented informal bids from contractors licensed in Idaho to
36 perform public works contracts, if reasonably available. Adequate public
37 notice of the invitation for informal bids shall be given at least seven (7)
38 days prior to the date set forth therein for the receipt of the informal bids.
39 Such notice may include publication at least seven (7) days prior to bid open-
40 ing in a newspaper of general circulation in the area where the work is
41 located; or the agency may advertise the invitation for bids in appropriate
42 trade journals, and otherwise notify persons believed to be interested in the
43 award of a contract. Informal bids must be submitted by the contractor in
44 writing in response to a prepared written document describing the project's
45 scope of work in sufficient detail so as to enable a contractor familiar with
46 such work to prepare a responsible bid. Nothing herein exempts an agency from
47 the responsibility of utilizing formal plans and specifications if the work
48 involves the public health or safety as described in chapters 3 and 12, title
49 54, Idaho Code. The agency must document receipt of the informal bids in the
50 project file.
51 (6) Any personal property including goods, parts, supplies and equipment
52 which is to be supplied or provided by a state agency for use in any public
53 work, project, or preventive maintenance programs, whether the public work,
3
1 project, or preventive maintenance program is constructed, undertaken or per-
2 formed by agency in-house personnel, or by delegation pursuant to section
3 67-5710A, Idaho Code, or otherwise provided or supplied by the agency to a
4 contractor, the personal property, goods, parts, supplies or equipment sup-
5 plied or provided by the agency must be purchased or procured by the agency
6 through the division of purchasing in accordance with the Idaho Code.
7 SECTION 3. That Chapter 57, Title 67, Idaho Code, be, and the same is
8 hereby amended by the addition thereto of a NEW SECTION, to be known and des-
9 ignated as Section 67-5711D, Idaho Code, and to read as follows:
10 67-5711D. ENERGY SAVINGS PERFORMANCE CONTRACTS. (1) Definitions. As used
11 in this section:
12 (a) "Cost-savings measure" means any facility improvement, repair or
13 alteration, or any equipment, fixture or furnishing to be added or used in
14 any facility that is designed to reduce energy consumption and energy
15 operating costs or increase the energy efficiency of facilities for their
16 appointed functions that are cost effective. "Cost-savings measure"
17 includes, but is not limited to, one (1) or more of the following:
18 (i) Procurement of low-cost energy supplies of all types, includ-
19 ing electricity, natural gas and water;
20 (ii) Insulating the building structure or systems in the building;
21 (iii) Storm windows or doors, caulking or weather stripping,
22 multiglazed windows or door systems, heat-absorbing or heat-
23 reflective glazed and coated window and door systems, additional
24 glazing, reductions in glass area or other window and door system
25 modifications that reduce energy consumption;
26 (iv) Automated or computerized energy control systems;
27 (v) Heating, ventilation or air conditioning system modifications
28 or replacements;
29 (vi) Replacing or modifying lighting fixtures to increase the
30 energy efficiency of the lighting system;
31 (vii) Energy recovery systems;
32 (viii) Cogeneration systems that produce steam or forms of energy
33 such as heat, as well as electricity, for use primarily within a
34 building or complex of buildings;
35 (ix) Installing new or modifying existing day lighting systems;
36 (x) Installing or modifying renewable energy and alternate energy
37 technologies;
38 (xi) Building operation programs that reduce energy costs includ-
39 ing, but not limited to, computerized programs, training and other
40 similar activities;
41 (xii) Steam trap improvement programs that reduce energy costs;
42 (xiii) Devices that reduce water consumption; and
43 (xiv) Any additional building infrastructure improvements that pro-
44 duce energy cost savings, significantly reduce energy consumption or
45 increase the energy efficiency of the facilities for their appointed
46 functions and are in compliance with all applicable state building
47 codes.
48 (b) "Director" means the director of the department of administration or
49 the director's designee.
50 (c) "Energy cost savings" means any expenses that are eliminated or
51 avoided on a long-term basis as a result of equipment installed or modi-
52 fied, or services performed by a qualified energy service company or a
53 qualified provider, but does not include merely shifting personnel costs
4
1 or similar short-term cost savings.
2 (d) "Financial grade energy audit" means a comprehensive building energy
3 systems audit performed by a professional engineer licensed in the state
4 of Idaho for the purpose of identifying and documenting feasible energy
5 and resource conservation measures and cost-savings factors.
6 (e) "Performance contract" means a contract between the director and a
7 qualified provider or a qualified energy service company for evaluation,
8 recommendation and implementation of one (1) or more cost-savings mea-
9 sures. A performance contract may be structured as either:
10 (i) A guaranteed energy savings performance contract, which shall
11 include, at a minimum, the design and installation of equipment and,
12 if applicable, operation and maintenance of any of the measures
13 implemented. Guaranteed annual savings must meet or exceed the total
14 annual contract payments made by the director or the user agency for
15 such contract, including financing charges to be incurred over the
16 life of the contract; or
17 (ii) A shared savings contract, which shall include provisions mutu-
18 ally agreed upon by the director and the qualified provider or quali-
19 fied energy service company as to the rate of payments based upon
20 energy cost savings and a stipulated maximum energy consumption level
21 over the life of the contract;
22 (f) "Person" means an individual, corporation, partnership, firm, associ-
23 ation, limited liability company, limited liability partnership or other
24 such entity as recognized by the state of Idaho.
25 (g) "Qualified energy service company" means a person with a record of
26 established projects or with demonstrated technical, operational, finan-
27 cial and managerial capabilities to implement performance contracts and
28 who currently holds an Idaho public works contractor license.
29 (h) "Qualified provider" means a person who is experienced in the design,
30 implementation and installation of energy efficiency and facility improve-
31 ment measures, who has the ability to secure necessary financial measures
32 to support energy savings guarantees and the technical capabilities to
33 ensure such measures generate energy cost savings, and who currently holds
34 an Idaho public works contractor license.
35 (2) Performance contracts. The director of the department of administra-
36 tion, subject to the approval of the permanent building fund advisory council,
37 may enter into a performance contract with a qualified provider or qualified
38 energy service company to reduce energy consumption or energy operating costs.
39 Cost-savings measures implemented under such contracts shall comply with all
40 applicable state building codes.
41 (3) Requests for qualifications. The director of the department of admin-
42 istration shall request qualifications from qualified providers and qualified
43 energy service companies inviting them to submit information describing their
44 capabilities in the areas of:
45 (a) Design, engineering, installation, maintenance and repairs associated
46 with performance contracts;
47 (b) Experience in conversions to a different energy or fuel source, so
48 long as it is associated with a comprehensive energy efficiency retrofit;
49 (c) Postinstallation project monitoring, data collection and reporting of
50 savings;
51 (d) Overall project experience and qualifications;
52 (e) Management capability;
53 (f) Ability to assess the availability of long-term financing;
54 (g) Experience with projects of similar size and scope; and
55 (h) Other factors determined by the director to be relevant and appropri-
5
1 ate relating to the ability of the qualified provider or qualified energy
2 service company to perform the project.
3 (4) Notice. Adequate public notice of the request for qualifications
4 shall be given at least fourteen (14) days prior to the date set forth
5 therein for the opening of the responses to the request for qualifications.
6 Such notice may be provided electronically or by publication in a newspaper of
7 general circulation in the area where the work is located.
8 (5) Public inspection. All records of the department or an agency relat-
9 ing to the award of a performance contract shall be open to public inspection
10 in accordance with the provisions of sections 9-337 through 9-347 and 67-5725,
11 Idaho Code.
12 (6) Award of performance contract.
13 (a) The director shall select up to three (3) qualified providers or
14 qualified energy service companies who have responded to the request for
15 qualifications. Factors to be considered in selecting the successful qual-
16 ified provider or qualified energy service company shall include, but not
17 be limited to:
18 (i) Fee structure;
19 (ii) Contract terms;
20 (iii) Comprehensiveness of the proposal and cost-savings measures;
21 (iv) Experience of the qualified provider or qualified energy ser-
22 vice company;
23 (v) Quality of the technical approach of the qualified provider or
24 qualified energy service company; and
25 (vi) Overall benefits to the state.
26 (b) Notwithstanding the provisions of section 67-5711C, Idaho Code, the
27 director may, following the request for qualifications and the expiration
28 of the specified notice period, award the performance contract to the
29 qualified provider or qualified energy service company which best meets
30 the needs of the project and whose proposal may or may not represent the
31 lowest cost among the proposals submitted pursuant to this section.
32 (c) Upon award of the performance contract, the successful qualified pro-
33 vider or qualified energy service company shall prepare a financial grade
34 energy audit which, upon acceptance by the director, shall become a part
35 of the final performance contract.
36 (7) Installment payment and lease-purchase agreements. Pursuant to this
37 section, the director may enter into a performance contract, payments for
38 which shall be made by the user agency. Such performance contracts may be
39 financed as installment payment contracts or lease-purchase agreements for the
40 purchase and installation of cost-savings measures. Financing implemented
41 through another person other than the qualified provider or qualified energy
42 service company is authorized.
43 (8) Terms of performance contract.
44 (a) Each performance contract shall provide that all payments between
45 parties, except obligations upon termination of the contract before its
46 expiration, shall be made over time and that the objective of such perfor-
47 mance contract is the implementation of cost-savings measures and energy
48 cost savings.
49 (b) A performance contract, and payments provided thereunder, may extend
50 beyond the fiscal year in which the performance contract becomes effec-
51 tive, subject to appropriation by the legislature, for costs incurred in
52 future fiscal years. The performance contract may extend for a term not to
53 exceed twenty-five (25) years. The permissible length of the contract may
54 also reflect the useful life of the cost-savings measures.
55 (c) Performance contracts may provide for payments over a period of time
6
1 not to exceed deadlines specified in the performance contract from the
2 date of the final installation of the cost-savings measures.
3 (d) Performance contracts entered pursuant to this section may be amended
4 or modified, upon agreement by the director and the qualified provider or
5 qualified energy service company, on an annual basis.
6 (9) Monitoring and reports. During the term of each performance contract,
7 the qualified provider or qualified energy service company shall monitor the
8 reductions in energy consumption and cost savings attributable to the cost-
9 savings measures installed pursuant to the performance contract and shall
10 annually prepare and provide a report to the director documenting the perfor-
11 mance of the cost-savings measures.
STATEMENT OF PURPOSE
RS 10776C2
The purpose of this legislation is to add a new section code
allowing the Director of the Department of Administration, or her
designee, to enter into a new type of contract, an energy savings
performance contract. A new bidding process is also provided for.
An energy savings performance contract is an affordable way for
the Department of Administration, a university, or other public
building manager to make investments in new energy-efficient
equipment. The upgrades are made now--with no up front capital -and
are paid for later through the energy savings that result. The
benefits are immediate, getting new equipment expertise from energy
service professionals, ongoing maintenance services and the ability to
accomplish many projects all at once. Best of all, these savings can
be guaranteed.
FISCAL IMPACT
There will be no negative impact to the General Fund. In fact, a
positive impact may be achieved as capital improvement projects are
financed through energy savings rather than through appropriations
from the General Fund.
Contact
Name: Representative Kent Kunz
Phone: (208) 332 1000
STATEMENT OF PURPOSE/FISCAL NOTE H 251