View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
H0556......................................................by STATE AFFAIRS
ENERGY SAVINGS - Amends existing law relating to energy savings performance
contracts to revise definitions of "cost-savings measure," "qualified
energy service company" and "qualified provider."
02/25 House intro - 1st rdg - to printing
02/26 Rpt prt - to Bus
03/04 Rpt out - rec d/p - to 2nd rdg
03/05 2nd rdg - to 3rd rdg
03/07 3rd rdg - PASSED - 64-1-5
AYES -- Anderson, Andrus, Barrett, Bayer, Bell, Bilbao, Black, Bock,
Boe, Bolz, Bowers, Brackett, Bradford, Chadderdon, Chavez, Chew,
Clark, Collins, Crane, Durst, Eskridge, Hagedorn, Hart, Henbest,
Henderson, Jaquet, Killen, King, Kren, Labrador, LeFavour,
Loertscher, Marriott, Mathews, McGeachin, Mortimer, Nielsen, Nonini,
Pasley-Stuart, Patrick, Pence, Raybould, Ringo, Roberts, Ruchti,
Rusche, Sayler, Schaefer, Shepherd(02), Shepherd(08), Shirley,
Shively, Smith(30), Smith(24), Snodgrass, Stevenson, Thayn, Thomas,
Trail, Vander Woude, Wills, Wood(27), Wood(35), Mr. Speaker
NAYS -- Harwood
Absent and excused -- Bedke, Block, Lake, Luker, Moyle
Floor Sponsor - Black
Title apvd - to Senate
03/10 Senate intro - 1st rdg - to St Aff
03/17 Rpt out - ref'd to Com/HuRes
03/19 Rpt out - rec d/p - to 2nd rdg
03/20 2nd rdg - to 3rd rdg
03/24 3rd rdg - PASSED - 27-0-8
AYES -- Andreason, Bair, Bastian, Bilyeu, Broadsword, Cameron,
Coiner, Darrington, Davis, Fulcher, Gannon(Gannon), Geddes, Hammond,
Heinrich, Hill, Jorgenson, Kelly, Langhorst, Little, Lodge,
Malepeai(Sagness), McGee, McKague, Richardson, Siddoway, Stennett,
Werk
NAYS -- None
Absent and excused -- Burkett, Corder, Goedde, Keough, McKenzie,
Pearce, Schroeder, Stegner
Floor Sponsor - Broadsword
Title apvd - to House
03/25 To enrol - Rpt enrol - Sp/Pres signed
03/26 To Governor
04/01 Governor signed
Session Law Chapter 366
Effective: 07/01/08
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]] Fifty-ninth Legislature Second Regular Session - 2008IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 556 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO ENERGY SAVINGS PERFORMANCE CONTRACTS; AMENDING SECTION 67-5711D, 3 IDAHO CODE, TO REVISE DEFINITIONS OF "COST-SAVINGS MEASURE," "QUALIFIED 4 ENERGY SERVICE COMPANY" AND "QUALIFIED PROVIDER." 5 Be It Enacted by the Legislature of the State of Idaho: 6 SECTION 1. That Section 67-5711D, Idaho Code, be, and the same is hereby 7 amended to read as follows: 8 67-5711D. ENERGY SAVINGS PERFORMANCE CONTRACTS. (1) Definitions. As used 9 in this section: 10 (a) "Cost-savings measure" means any facility improvement, repair or 11 alteration to an existing facility, or any equipment, fixture or furnish- 12 ing to be added or used in any existing facility that is designed to 13 reduce energy consumption and energy operating costs or increase the 14 energy efficiency of facilities for their appointed functions that are 15 cost effective. "Cost-savings measure" includes, but is not limited to, 16 one (1) or more of the following: 17 (i) Procurement of low-cost energy supplies of all types, includ- 18 ing electricity, natural gas and water; 19 (ii) Insulating the building structure or systems in the building; 20 (iii) Storm windows or doors, caulking or weather stripping, 21 multiglazed windows or door systems, heat-absorbing or heat- 22 reflective glazed and coated window and door systems, additional 23 glazing, reductions in glass area or other window and door system 24 modifications that reduce energy consumption; 25 (iv) Automated or computerized energy control systems; 26 (v) Heating, ventilation or air conditioning system modifications 27 or replacements; 28 (vi) Replacing or modifying lighting fixtures to increase the 29 energy efficiency of the lighting system; 30 (vii) Energy recovery systems; 31 (viii) Cogeneration systems that produce steam or forms of energy 32 such as heat, as well as electricity, for use primarily within a 33 building or complex of buildings; 34 (ix) Installing new or modifying existing day lighting systems; 35 (x) Installing or modifying renewable energy and alternate energy 36 technologies; 37 (xi) Building operation programs that reduce energy costs includ- 38 ing, but not limited to, computerized programs, training and other 39 similar activities; 40 (xii) Steam trap improvement programs that reduce energy costs; 41 (xiii) Devices that reduce water consumption; and 42 (xiv) Any additional building infrastructure improvements that pro- 43 duce energy cost savings, significantly reduce energy consumption or 2 1 increase the energy efficiency of the facilities for their appointed 2 functions and are in compliance with all applicable state building 3 codes. 4 (b) "Director" means the director of the department of administration or 5 the director's designee. 6 (c) "Energy cost savings" means any expenses that are eliminated or 7 avoided on a long-term basis as a result of equipment installed or modi- 8 fied, or services performed by a qualified energy service company or a 9 qualified provider, but does not include merely shifting personnel costs 10 or similar short-term cost savings. 11 (d) "Financial grade energy audit" means a comprehensive building energy 12 systems audit performed by a professional engineer licensed in the state 13 of Idaho for the purpose of identifying and documenting feasible energy 14 and resource conservation measures and cost-savings factors. 15 (e) "Performance contract" means a contract between the director or the 16 public entity and a qualified provider or a qualified energy service com- 17 pany for evaluation, recommendation and implementation of one (1) or more 18 cost-savings measures. A performance contract may be structured as either: 19 (i) A guaranteed energy savings performance contract, which shall 20 include, at a minimum, the design and installation of equipment and, 21 if applicable, operation and maintenance of any of the measures 22 implemented. Guaranteed annual savings must meet or exceed the total 23 annual contract payments made by the director or the user agency or 24 the public entity for such contract, including financing charges to 25 be incurred over the life of the contract; or 26 (ii) A shared savings contract, which shall include provisions mutu- 27 ally agreed upon by the director and the qualified provider or quali- 28 fied energy service company as to the rate of payments based upon 29 energy cost savings and a stipulated maximum energy consumption level 30 over the life of the contract. 31 (f) "Person" means an individual, corporation, partnership, firm, associ- 32 ation, limited liability company, limited liability partnership or other 33 such entity as recognized by the state of Idaho. 34 (g) "Public entity" means the cities, counties and school districts or 35 any political subdivision within the state of Idaho. 36 (h) "Qualified energy service company" means a person with a record of 37 established projects or with demonstrated technical, operational, finan- 38 cial and managerial capabilities to implement performance contracts and 39 who currently holds an Idaho public works contractor license appropriate 40 for the work being performed. 41 (i) "Qualified provider" means a person who is experienced in the design, 42 implementation and installation of energy efficiency and facility improve- 43 ment measures, who has the ability to secure necessary financial measures 44 to support energy savings guarantees and the technical capabilities to 45 ensure such measures generate energy cost savings, and who currently holds 46 an Idaho public works contractor license appropriate for the work being 47 performed. 48 (2) Performance contracts. The director of the department of administra- 49 tion, subject to the approval of the permanent building fund advisory council, 50 or any Idaho public entity may enter into a performance contract with a quali- 51 fied provider or qualified energy service company to reduce energy consumption 52 or energy operating costs. Cost-savings measures implemented under such con- 53 tracts shall comply with all applicable state and local building codes. 54 (3) Requests for qualifications. The director of the department of admin- 55 istration or the public entity shall request qualifications from qualified 3 1 providers and qualified energy service companies inviting them to submit 2 information describing their capabilities in the areas of: 3 (a) Design, engineering, installation, maintenance and repairs associated 4 with performance contracts; 5 (b) Experience in conversions to a different energy or fuel source, so 6 long as it is associated with a comprehensive energy efficiency retrofit; 7 (c) Postinstallation project monitoring, data collection and reporting of 8 savings; 9 (d) Overall project experience and qualifications; 10 (e) Management capability; 11 (f) Ability to assess the availability of long-term financing; 12 (g) Experience with projects of similar size and scope; and 13 (h) Other factors determined by the director or the public entity to be 14 relevant and appropriate relating to the ability of the qualified provider 15 or qualified energy service company to perform the project. 16 (4) Notice. Adequate public notice of the request for qualifications 17 shall be given at least fourteen (14) days prior to the date set forth therein 18 for the opening of the responses to the request for qualifications. Such 19 notice may be provided electronically or by publication in a newspaper of gen- 20 eral circulation in the area where the work is located. 21 (5) Public inspection. All records of the department or an agency or the 22 public entity relating to the award of a performance contract shall be open to 23 public inspection in accordance with the provisions of sections 9-337 through 24 9-347 and 67-5725, Idaho Code. 25 (6) Award of performance contract. 26 (a) The director or public entity shall select up to three (3) qualified 27 providers or qualified energy service companies who have responded to the 28 request for qualifications. Factors to be considered in selecting the suc- 29 cessful qualified provider or qualified energy service company shall 30 include, but not be limited to: 31 (i) Fee structure; 32 (ii) Contract terms; 33 (iii) Comprehensiveness of the proposal and cost-savings measures; 34 (iv) Experience of the qualified provider or qualified energy ser- 35 vice company; 36 (v) Quality of the technical approach of the qualified provider or 37 qualified energy service company; and 38 (vi) Overall benefits to the state or the public entity. 39 (b) Notwithstanding the provisions of section 67-5711C, Idaho Code, the 40 director or the public entity may, following the request for qualifica- 41 tions and the expiration of the specified notice period, award the perfor- 42 mance contract to the qualified provider or qualified energy service com- 43 pany which best meets the needs of the project and whose proposal may or 44 may not represent the lowest cost among the proposals submitted pursuant 45 to this section. 46 (c) Upon award of the performance contract, the successful qualified pro- 47 vider or qualified energy service company shall prepare a financial grade 48 energy audit which, upon acceptance by the director or the public entity, 49 shall become a part of the final performance contract. 50 (7) Installment payment and lease-purchase agreements. Pursuant to this 51 section, the director or the public entity may enter into a performance con- 52 tract, payments for which shall be made by the user agency or public entity. 53 Such performance contracts may be financed as installment payment contracts or 54 lease-purchase agreements for the purchase and installation of cost-savings 55 measures. Financing implemented through another person other than the quali- 4 1 fied provider or qualified energy service company is authorized. 2 (8) Terms of performance contract. 3 (a) Each performance contract shall provide that all payments between 4 parties, except obligations upon termination of the contract before its 5 expiration, shall be made over time and that the objective of such perfor- 6 mance contract is the implementation of cost-savings measures and energy 7 cost savings. 8 (b) A performance contract, and payments provided thereunder, may extend 9 beyond the fiscal year in which the performance contract becomes effec- 10 tive, subject to appropriation by the legislature or by the public entity, 11 for costs incurred in future fiscal years. The performance contract may 12 extend for a term not to exceed twenty-five (25) years. The permissible 13 length of the contract may also reflect the useful life of the cost- 14 savings measures. 15 (c) Performance contracts may provide for payments over a period of time 16 not to exceed deadlines specified in the performance contract from the 17 date of the final installation of the cost-savings measures. 18 (d) Performance contracts entered pursuant to this section may be amended 19 or modified, upon agreement by the director or the public entity and the 20 qualified provider or qualified energy service company, on an annual 21 basis. 22 (9) Monitoring and reports. During the term of each performance contract, 23 the qualified provider or qualified energy service company shall monitor the 24 reductions in energy consumption and cost savings attributable to the cost- 25 savings measures installed pursuant to the performance contract and shall 26 annually prepare and provide a report to the director or the public entity 27 documenting the performance of the cost-savings measures.
REPRINT REPRINT REPRINT REPRINT REPRINT REPRINT
STATEMENT OF PURPOSE
RS 17978
The proposed legislation clarifies that energy savings performance
contracting is applicable only to existing facilities. This
performance contracting methodology is not applicable to new
facilities to be constructed. New facilities are already required
to comply with the provisions of the International Energy
Conservation Code, and legislation is being considered that will
encourage new facilities to surpass code requirements. The need
for this clarification results from public entities attempting to
construct new facilities under the performance contracting
umbrella.
FISCAL NOTE
No fiscal impact to the state.
Contact
Name: David Bennion
Phone: (208) 867-2338
STATEMENT OF PURPOSE/FISCAL NOTE H 556
REPRINT REPRINT REPRINT REPRINT REPRINT REPRINT