REPORT TITLE:
Public Building Energy Retrofit


DESCRIPTION:
Requires all state agencies to retrofit buildings to save energy.
Provides that all cost savings from retrofits shall be returned
to the retrofitting agency.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           2422
TWENTIETH LEGISLATURE, 2000                                
STATE OF HAWAII                                            
                                                             
________________________________________________________________
________________________________________________________________


                   A  BILL  FOR  AN  ACT

RELATING TO ENERGY CONSERVATION.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Section 36-41, Hawaii Revised Statutes, is
 
 2 amended to read as follows:
 
 3      "§36-41  Energy retrofit and performance contracting for
 
 4 public facilities.  (a)  All agencies shall perform energy
 
 5 efficiency retrofitting with a cost-payback period of less than
 
 6 ten years, through performance contracting or other suitable
 
 7 mechanisms.  Agencies that perform energy efficiency retrofitting
 
 8 shall continue to receive budget appropriations for energy
 
 9 expenditures at a level equal and proportionate to the
 
10 appropriations made before energy-saving actions were instituted.
 
11      [(a)] (b)  Any agency may enter into a multi-year energy
 
12 performance contract for the purpose of undertaking or
 
13 implementing energy conservation or alternate energy measures in
 
14 a facility or facilities.  An energy performance contract may
 
15 include[,] but shall not be limited to[,] options such as
 
16 leasing, joint ventures, shared-savings plans, or energy service
 
17 contracts, or any combination thereof; provided that in due
 
18 course the agency may receive title to the energy system being
 
19 financed.  Except as otherwise provided by law, the agency that
 

 
Page 2                                                     
                                     S.B. NO.           2422
                                                        
                                                        

 
 1 is responsible for a particular facility shall review and approve
 
 2 energy performance contract arrangements for the facility.
 
 3      [(b)] (c)  Notwithstanding any law to the contrary relating
 
 4 to the award of public contracts, any agency desiring to enter
 
 5 into an energy performance contract shall do so in accordance
 
 6 with the following provisions:
 
 7      (1)  The agency shall issue a public request for proposals,
 
 8           advertised in the same manner as provided in chapter
 
 9           103D, concerning the provision of energy efficiency
 
10           services or the design, installation, operation, and
 
11           maintenance of energy equipment or both.  The request
 
12           for proposals shall contain terms and conditions
 
13           relating to submission of proposals, evaluation and
 
14           selection of proposals, financial terms, legal
 
15           responsibilities, and other matters as may be required
 
16           by law and as the agency determines appropriate;
 
17      (2)  Upon receiving responses to the request for proposals,
 
18           the agency may select the most qualified proposal or
 
19           proposals on the basis of the experience and
 
20           qualifications of the proposers, the technical
 
21           approach, the financial arrangements, the overall
 
22           benefits to the agency, and other factors determined by
 
23           the agency to be relevant and appropriate;
 

 
Page 3                                                     
                                     S.B. NO.           2422
                                                        
                                                        

 
 1      (3)  The agency thereafter may negotiate and enter into an
 
 2           energy performance contract with the person or company
 
 3           whose proposal is selected as the most qualified based
 
 4           on the criteria established by the agency;
 
 5      (4)  The term of any energy performance contract entered
 
 6           into pursuant to this section shall not exceed fifteen
 
 7           years;
 
 8      (5)  Any contract entered into shall contain the following
 
 9           annual allocation dependency clause:
 
10                "The continuation of this contract is contingent
 
11                upon the appropriation of funds to fulfill the
 
12                requirements of the contract by the applicable
 
13                funding authority.  If that authority fails to
 
14                appropriate sufficient funds to provide for the
 
15                continuation of the contract, the contract shall
 
16                terminate on the last day of the fiscal year for
 
17                which allocations were made";
 
18      (6)  Any energy performance contract may provide that the
 
19           agency ultimately shall receive title to the energy
 
20           system being financed under the contract; and
 
21      (7)  Any energy performance contract shall provide that
 
22           total payments shall not exceed total savings.
 

 
 
 
Page 4                                                     
                                     S.B. NO.           2422
                                                        
                                                        

 
 1      [(c)] (d)  Any agency may enter into an energy performance
 
 2 contract pursuant to this section for a period not to exceed
 
 3 fifteen years.
 
 4      [(d)] (e)  For purposes of this section:
 
 5      "Agency" means any executive department, independent
 
 6 commission, board, bureau, office, or other establishment of the
 
 7 State or any county government, the judiciary, the University of
 
 8 Hawaii, or any quasi-public institution that is supported in
 
 9 whole or in part by state or county funds.
 
10      "Energy performance contract" means an agreement for the
 
11 provision of energy services and equipment, including but not
 
12 limited to building energy conservation enhancing retrofits and
 
13 alternate energy technologies, in which a private sector person
 
14 or company agrees to finance, design, construct, install,
 
15 maintain, operate, or manage energy systems or equipment to
 
16 improve the energy efficiency of, or produce energy in connection
 
17 with, a facility in exchange for a portion of the cost savings,
 
18 lease payments, or specified revenues, and the level of payments
 
19 is made contingent upon the measured energy cost savings, energy
 
20 production, avoided maintenance, avoided energy equipment
 
21 replacement, or any combination of the foregoing bases.
 

 
 
 
 
 
Page 5                                                     
                                     S.B. NO.           2422
                                                        
                                                        

 
 1      "Facility" means a building or buildings or similar
 
 2 structure owned or leased by, or otherwise under the jurisdiction
 
 3 of, the agency.
 
 4      "Shared-savings plan" means an agreement under which the
 
 5 private sector person or company undertakes to design, install,
 
 6 operate, and maintain improvements to the agency's facility or
 
 7 facilities and the agency agrees to pay a contractually specified
 
 8 amount of measured energy cost savings."
 
 9      SECTION 2.  Statutory material to be repealed is bracketed.
 
10 New statutory material is underscored.
 
11      SECTION 3.  This Act shall take effect upon its approval.
 
12 
 
13                       INTRODUCED BY:  ___________________________