07 LC 36
0514ER
Senate
Bill 180
By:
Senator Carter of the 13th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Chapter 10 of Title 13 of the Official Code of Georgia Annotated, relating
to contracts for public works, so as to enact the "Guaranteed Energy Cost
Savings Act"; to define certain terms; to authorize governmental units to enter
into guaranteed energy cost savings contracts; to provide for bid proposal
procedures; to establish standards and procedures for awarding of guaranteed
energy cost savings contracts; to impose certain requirements on qualified
providers of energy cost saving measures; to provide for related matters; to
repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Chapter
10 of Title 13 of the Official Code of Georgia Annotated, relating to contracts
for public works, is amended by adding a new article to read as follows:
"ARTICLE
4
13-10-110.
This
article shall be known and may be cited as the 'Guaranteed Energy Cost Savings
Act.'
13-10-111.
As
used in this article, the term:
(1)
'Energy cost savings measure' means a training program or new facility or
existing facility alteration designed to reduce energy consumption, operating
costs, or water and other natural resources consumption and may include one or
more of the following:
(A)
Insulation and reduced air infiltration of the building structure including
walls, ceilings, and roofs or systems within the building;
(B)
Storm windows or doors, caulking or weather stripping, multiglazed windows or
doors, heat absorbing or heat reflective glazed and coated window or door
systems, additional glazing, reductions in glass area, or other window and door
system modifications that reduce energy consumption;
(C)
Automated or computerized energy control systems, including computer software
and technical data licenses;
(D)
Heating, ventilating, or air conditioning system modifications or
replacements;
(E)
Replacement or modification of lighting fixtures to increase the energy
efficiency of the lighting system without increasing the overall illumination of
a facility, unless an increase in illumination is necessary to conform to the
applicable state or local building code for the lighting system after the
proposed modifications are made;
(F)
Indoor air quality improvements;
(G)
Energy recovery systems;
(H)
Electric systems improvements;
(I)
Life safety measures that provide long-term operating cost
reductions;
(J)
Building operation programs that reduce operating costs;
(K)
Other energy conservation related improvements or equipment, including
improvements or equipment related to renewable energy; or
(L)
Water and other natural resources conservation.
(2)
'Governmental unit' means a state government agency, department, institution,
college, university, technical institute, legislative body, or other
establishment or office of the executive, judicial, or legislative branch of
this state authorized by law to enter into contracts, including all local
political subdivisions such as counties, municipalities, and public school
districts.
(3)
'Guaranteed energy cost savings contract' means a contract for the
implementation of one or more energy cost savings measures.
(4)
'Operational cost savings' means expenses eliminated and future replacement
expenditures avoided as a result of new equipment installed or services
performed.
(5)
'Qualified provider' means a person or business experienced in the design,
implementation, and installation of energy cost savings measures.
(6)
'Request for proposals' means a negotiated procurement that is announced through
a public notice from a governmental unit which will administer the guaranteed
energy cost savings contract requesting innovative solutions and proposals for
energy conservation measures. The request for proposals shall include the
following:
(A)
The name and address of the governmental unit;
(B)
The name, address, title, and phone number of a contact person at such
governmental unit;
(C)
The date, time, and place where proposals must be received;
(D)
The evaluation criteria for assessing the proposals; and
(E)
Any other stipulations and clarifications the governmental unit may require.
13-10-112.
(a)
A governmental unit may enter into a guaranteed energy cost savings contract in
order to reduce energy consumption or operating costs of government facilities
in accordance with this article.
(b)
All energy cost savings measures shall comply with current local, state, and
federal construction and environmental codes and regulations. Notwithstanding
any provision of law to the contrary, a guaranteed energy cost savings contract
does not include improvements or equipment that allow or cause water from any
condensing, cooling, or industrial process or any system of nonpotable usage
over which public water supply system officials do not have sanitary control to
be returned to the potable water supply.
13-10-113.
(a)
Before entering into a guaranteed energy cost savings contract, a governmental
unit shall submit a request for proposals. The governmental unit shall evaluate
any proposal from a qualified provider and shall select the qualified provider
that best meets the needs of the unit. After reviewing the proposals, the
governmental unit may enter into a guaranteed energy cost savings contract with
a qualified provider if it finds that the amount it would spend on the energy
cost savings measures recommended in the proposal would not exceed the amount of
energy or operational cost savings, or both, within the lesser of a 20 year
period or the average useful life of the energy cost savings measures from the
date installation is complete and has been accepted by the government unit, if
the recommendations in the proposal are followed. The governmental unit shall
analyze the following:
(1)
The estimates of all costs of installation, modifications, or remodeling,
including, without limitation, costs of a preinstallation energy audit or
analysis, design, engineering, installation, maintenance, repairs, debt service,
and postinstallation project monitoring, data collection, and reporting, as well
as whether energy consumed or the operating costs, or both, will be reduced;
and
(2)
The qualifications of the provider.
(b)
The governmental unit shall provide public notice of the meeting at which it
proposes to award a guaranteed energy cost savings contract, the names of the
parties to the proposed contract, and the purpose of the contract. The public
notice shall be made at least ten days prior to the meeting.
(c)
The guaranteed energy cost savings contract shall include a written guarantee of
the qualified provider that either the energy or operational cost savings, or
both, will meet or exceed the costs of the energy cost savings measures within
the lesser of 20 years or the average useful life of the energy cost savings
measures. The qualified provider shall reimburse the governmental unit for any
shortfall of guaranteed energy cost savings on an annual basis. The guaranteed
energy cost savings contract may provide for payments over a period of time, not
to exceed the lesser of 20 years or the average useful life of the energy cost
savings measures.
(d)
Notwithstanding any provision of law to the contrary, before entering into a
guaranteed energy cost savings contract, the governmental unit may require the
qualified provider to file with the governmental unit a payment and performance
bond relating to the installation of energy cost savings measures that is in an
amount the governmental unit finds reasonable and necessary to protect its
interests and that may also cover the value of the guaranteed savings on the
contract and is conditioned on the faithful execution of the terms of the
contract.
(e)
A governmental unit, or several governmental units together, may enter into an
installment payment contract or lease-purchase agreement with a qualified
provider or a third party financing company designated by a qualified provider,
or both, for the purchase and installation of energy cost savings measures
within a term not to exceed the lesser of 20 years or the average useful life of
the energy cost savings measures from the date the energy cost savings measures
have been completed and accepted by the governmental unit.
(f)
Guaranteed energy cost savings contracts, including installment payment
contracts and lease-purchase agreements financing the contracts may extend
beyond the fiscal year in which they become effective. The governmental unit
may include in its annual budget and appropriations measures for each subsequent
fiscal year any amounts payable under guaranteed energy savings contracts,
including installment payment contracts and lease-purchase agreements financing
the contracts, during that fiscal year.
(g)
A governmental unit may use a combination of capital expenditures or other
specially designated funds for any guaranteed energy cost savings contract,
including purchases using installment payment contracts or lease-purchase
agreements.
(h)
State aid and other amounts appropriated for distribution to, or reimbursement
to, a governmental unit may not be reduced as a result of energy cost savings
realized from a guaranteed energy cost savings contract or a lease-purchase
agreement for the purchase and installation of energy cost savings
measures."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.