Senate Bill No. 167
(By Senators Oliverio and Foster)
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[Introduced January 10, 2008; referred to the Committee
on Government Organization; and then to the Committee on Finance.]
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A BILL to amend and reenact §5A-3B-1 and §5A-3B-2 of the Code of
West Virginia, 1931, as amended, all relating to authorizing
municipalities to enter into contracts for energy-savings
contracts.
Be it enacted by the Legislature of West Virginia:
That §5A-3B-1 and §5A-3B-2 of the Code of West Virginia, 1931,
as amended, be amended and reenacted, all to read as follows:
ARTICLE 3B. ENERGY-SAVINGS CONTRACTS.
§5A-3B-1. Definitions.
As used in this article:
(a) "Agency" means any state department, division, office,
commission, authority, board or other unit,
including
municipalities as defined in section two, article one, chapter
eight of this code, authorized by law to enter into contracts for the provision of goods or services;
(b) "Energy-conservation measures" means goods or services, or
both, to reduce energy consumption operating costs of agency
facilities. They include, but are not limited to, installation of
one or more of the following:
(1) Insulation of a building structure and systems within a
building;
(2) Storm windows or doors, caulking or weather stripping,
multiglazed windows or doors, heat-absorbing or heat-reflective
glazed and coated window or door systems, or other window or door
modifications that reduce energy consumption;
(3) Automatic energy control systems;
(4) Heating, ventilating or air conditioning systems,
including modifications or replacements;
(5) Replacement or modification of lighting fixtures to
increase energy efficiency;
(6) Energy recovery systems;
(7) Cogeneration systems that produce steam or another form of
energy for use by any agency in a building or complex of buildings
owned by the agency; or
(8) Energy-conservation maintenance measures that provide
long-term operating cost reductions of the building's present cost
of operation.
(c) "Energy-savings contract" means a performance-based contract for the evaluation and recommendation of energy operations
conservation measures and for implementation of one or more
measures.
(d) "Qualified provider" means a person, firm or corporation
experienced in the design, implementation and installation of
energy-conservation measures.
5A-3B-2. Contracts for energy-savings contracts.
(a) Agencies,
including municipalities, are authorized to
enter into performance-based contracts with qualified providers of
energy-conservation measures for the purpose of significantly
reducing energy operating costs of agency owned buildings, subject
to the requirements of this section.
(b) Before entering into a contract or before the installation
of equipment, modifications or remodeling to be furnished under a
contract, the qualified provider shall first issue a proposal
summarizing the scope of work to be performed. A proposal must
contain estimates of all costs of installation, modifications or
remodeling, including the costs of design, engineering,
installation, maintenance, repairs or debt service, as well as
estimates of the amounts by which energy operating costs will be
reduced. If the agency
or municipality finds, after receiving the
proposal, that the proposal includes one or more
energy-conservation measures, the installation of which is
guaranteed to result in a net savings of a minimum of five percent of the then current energy operating costs which savings will, at
a minimum, satisfy any debt service required, the agency
or
municipality may enter into a contract with the provider pursuant
to this section.
(c) An energy-savings contract must include the following:
(1) A guarantee of a specific minimum net percentage amount of
at least five percent of energy operating costs each year over the
term of the contract that the agency
or municipality will save;
(2) A statement of all costs of energy-conservation measures,
including the costs of design, engineering, installation,
maintenance, repairs and operations; and
(3) A provision that payments, except obligations upon
termination of the contract before its expiration, are to be made
over time.
(d) An agency
or municipality may supplement its payments
with federal, state or local funds to reduce the annual cost or to
lower the initial amount to be financed.
(e) An energy-savings contract is subject to competitive
bidding requirements and other requirements of article three of
this chapter.
(f) An energy-savings contract may extend beyond the fiscal
year in which it first becomes effective:
Provided, That such a
contract may not exceed a fifteen-year term:
Provided,
however,
That the long term contract will be void unless the agreement provides that the agency
or municipality shall have the option
during each fiscal year of the contract to terminate the agreement.
(g)
Agencies or municipalities
may enter into a "lease with an
option to purchase" contract for the purchase and installation of
energy-conservation measures if the term of the lease does not
exceed fifteen years and the lease contract includes the provisions
contained in subsection (f) of this section and meets federal tax
requirements for tax-exempt municipal leasing or long-term
financing.
(h) The agency or municipality
may include in its annual
budget for each fiscal year any amounts payable under long-term
energy-savings contracts during that fiscal year.
(i) Upon the issuance of a request for proposals or request
for quotations for an energy-savings contract, the agency or
municipality
shall provide a copy thereof to the Joint Committee on
Government and Finance.
(j) Before signing an energy-savings contract or extending an
existing energy-savings contract, the agency or municipality
shall
give thirty days' written notice, which notice shall include a copy
of the proposal containing the information required by subsection
(b) of this section, to the Joint Committee on Government and
Finance.
NOTE: The purpose of this bill is to authorize municipalities to enter into contracts for energy-saving contracts. Current law
only allows the state and its agencies to do this.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.