HB 3200 Text

H. B. 3200

(By Delegates Beane, Kuhn, Manuel, Yost,
Leggett, Azinger and Walters)

(Originating in the Committee on Government Organization)
[February 27, 2003]

A BILL to amend chapter five-g of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new article, designated article two, relating to authorizing agencies to enter into performance-based contracts with qualified providers of energy-conservation measures for the purpose of reducing energy operating costs of agency buildings .

Be it enacted by the Legislature of West Virginia:

That chapter five-g of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new article, designated article two, to read as follows:
CHAPTER 5G. PROCUREMENT OF ARCHITECT-ENGINEER SERVICES AND ENERGY-SAVING CONTRACTS BY STATE AND ITS SUBDIVISIONS.
ARTICLE 2. ENERGY-SAVINGS CONTRACTS.

§5G-2-1. Definitions.

As used in this article:

(a) "Agency" means all state departments, agencies, authorities and all political subdivisions, including cities, counties and boards of education.

(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 contract for the evaluation and recommendation of energy operations conservation measures, and for implementation of one or more measures. The contract must provide that payments, except obligations upon termination of the contract before its expiration, are to be made over time. Any agency may supplement these payments with federal, state or local funds to reduce the annual cost or to lower the initial amount to be financed.

(d) "Qualified provider" means a person, firm or corporation experienced in the design, implementation and installation of energy-conservation measures.
§5G-2-2. Contracts for energy-savings contracts.

(a) Agencies are authorized to enter into performance-based contracts with qualified providers of energy-conservation measures for the purpose of reducing energy operating costs of agency buildings.

(b) Agencies may enter into an energy-savings contract with a qualified provider to reduce energy operating costs significantly. 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 finds, after receiving the proposal, that the proposal includes one or more energy-conservation measure designed to save energy operating costs, the agency may enter into a contract with the provider pursuant to this section.

(1) A guarantee of a specific minimum amount of money that the agency will save in energy operating costs each year during the term of the contract;

(2) A statement of all costs of energy-conservation measures, including the costs of design, engineering, installation, maintenance, repairs and operations.

(d) An energy-savings contract which is performance-based and includes a guarantee of savings and a comprehensive approach of energy-conservation measures for improving comfort is subject to competitive bidding requirements: Provided, That the requirements of article five-a, chapter twenty-one of this code as to prevailing wage rates shall apply to the construction and installation work performed under a contract.

(e) Agencies 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 ten years, and the lease contract includes the provisions contained in subsection (f), and meets federal tax requirements for tax-exempt municipal leasing or long-term financing.

(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 ten-year term: Provided, however, That such long term contract will be void unless such agreement provides that the agency shall have the option during each fiscal year of the contract to terminate the agreement. The agency may include in its annual budget for each fiscal year any amounts payable under long-term energy-savings contracts during that fiscal year: Provided further, That nothing contained may be construed to require or permit the replacement of jobs performed by service personnel employed by and agency.

This is a new article; therefore, strike-throughs and underscoring have been omitted.

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