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THE SENATE |
S.B. NO. |
2288 |
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TWENTY-SIXTH LEGISLATURE, 2012 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO ENERGY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that state agencies are interested in using energy savings performance contracting to improve the energy efficiency of their facilities, thereby addressing deferred maintenance and achieving a reduction in a facility's life cycle operating costs. Energy savings performance contracting is an agreement between an agency and a company by which the company, without any initial agency funds, will design, finance, implement, and maintain changes to an agency facility to increase energy efficiency. The company guarantees that savings will be achieved due to the changes and the agency agrees to pay the company a part of the resulting savings. Thus, wasted energy and operating costs are turned into capital improvements.
Requests for proposals can take eighteen to sixty months to complete. In contrast, the negotiated partner approach, by which an agency may negotiate directly with certain vendors to execute a performance contract exempt from the state procurement code, can bring about energy savings improvements in twelve to eighteen months. The legislature also finds that a negotiated partner pilot program is an appropriate means of determining the ability of the negotiated partner approach to allow agencies to take full advantage of energy savings performance contracts.
The purpose of this Act is to establish a two-year pilot program using the negotiated partner approach to execute energy savings performance contracts.
SECTION 2. (a) There shall be established within the department of accounting and general services a pilot program using the negotiated partner approach to execute energy savings performance contracts. The pilot program shall allow any state agency to negotiate directly with a vendor on the list of qualified vendors for a sole-source energy savings performance contract for one building or structure under the agency’s jurisdiction, notwithstanding chapter 103D, Hawaii Revised Statutes.
(b) By December 31, 2012, the department shall compile a list of qualified vendors eligible to participate in the pilot program under this Act through the issuance of a request for qualifications.
(c) Notwithstanding any law to the contrary relating to the award of public contracts, an energy savings performance contract under the pilot program shall be awarded in accordance with the following provisions:
(1) The contract shall be signed by June 30, 2013, with the construction of improvements completed by June 30, 2014;
(2) The term of the contract shall not exceed twenty years from the date of completion of the construction of improvements;
(3) The contract shall provide that the agency receive title to the energy system being financed under the contract upon substantial completion of the project, as agreed to by the agency and lender; and
(4) The contract shall provide that total payments to the vendor shall not exceed total savings achieved and may provide that annual payments to the vendor shall not exceed annual savings achieved.
SECTION 3. Any agency that participates in the pilot program established by this Act shall report to the department of accounting and general services annually from 2013 to 2019 on the results of the energy savings performance contracts, including any savings realized by the agency. The report shall include probable reasons for the results. The department shall establish the deadline for the annual report.
SECTION 4. The department of accounting and general services shall submit to the legislature an annual report on the results of the energy savings performance contracts formed under this Act, including information on which agencies are participating in the pilot program and which facilities are affected, no later than twenty days prior to the convening of each regular session from 2014 to 2020.
SECTION 5. Nothing in this Act shall prevent or preclude an agency from soliciting or executing an energy savings performance contract outside of the pilot program pursuant to chapter 103D, Hawaii Revised Statutes.
SECTION 6. This Act shall take effect on July 1, 2050.
Report Title:
Negotiated Partner Approach Pilot Program; Energy Savings Contracts
Description:
Establishes the negotiated partner approach pilot program for energy savings contracts, which allows agencies to forego requests for proposals and negotiate directly with qualified vendors. Requires reports to DAGS and the legislature. Effective 07/01/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.