Bill Text: MI HB4080 | 2017-2018 | 99th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: State financing and management; other; certain forms of energy improvement financing for certain school districts; provide for. Amends sec. 1274a of 1976 PA 451 (MCL 380.1274a).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Passed) 2017-05-02 - Assigned Pa 23'17 With Immediate Effect [HB4080 Detail]

Download: Michigan-2017-HB4080-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 4080

 

 

January 24, 2017, Introduced by Reps. Griffin and Iden and referred to the Committee on Local Government.

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending section 1274a (MCL 380.1274a), as amended by 2003 PA

 

255.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1274a. (1) The board of a school district, intermediate

 

school district, or local act school district may contract with a

 

qualified provider for the acquisition or financing of energy

 

conservation and operational improvements to school facilities or

 

infrastructure. These improvements or the financing or refunding of

 

the improvements may be paid from operating funds of the school

 

district, or from the proceeds of bonds or notes issued for energy

 

conservation and operational improvements, or from an installment

 

contract or lease-purchase agreement, or the board or intermediate

 


school board may enter into 1 or more energy saving performance

 

contracts. These contracts may contain a written financial

 

guarantee providing that the costs of improvements will be paid

 

only if the energy savings are sufficient to cover them. Energy

 

conservation and operational improvements may include, but are not

 

limited to, building envelope improvements; heating, ventilating,

 

and cooling upgrades; lighting retrofits; installing or upgrading

 

an energy management system; motor, pump, or fan replacements;

 

domestic water use reductions; information technology improvements

 

associated with an energy conservation and operational improvement;

 

municipal utility improvements associated with an energy

 

conservation and operational improvement; and upgrading other

 

energy consuming equipment or appliances.

 

     (2) A school board or intermediate school board that contracts

 

for energy conservation and operational improvements under

 

subsection (1) may require the qualified provider to furnish a bond

 

that guarantees energy cost savings for a specified period of time.

 

     (3) If a school board or intermediate school board enters into

 

an energy saving performance contract under this section, all of

 

the following apply:

 

     (a) The bids for the contract shall provide a detailed

 

breakdown of the energy performance savings to be derived each year

 

and for the duration of the energy saving performance contract,

 

including at least all of the following:

 

     (i) A description of the guaranteed energy use savings and

 

tasks to be performed under the energy saving performance contract.

 

     (ii) The combined total net cost of all of the energy


conservation measures in the project.

 

     (iii) The projected energy savings and operating and

 

maintenance cost savings resulting from the project.

 

     (iv) The useful life of each energy conservation measure.

 

     (v) The simple payback period.

 

     (b) The qualified provider shall certify that measurement and

 

verification techniques for determining cost savings will be

 

performed in accordance with the protocols published in January

 

2001 promulgated by the international performance measurement and

 

verification protocol inc.International Performance Measurement and

 

Verification Protocol, Inc., now known as Efficiency Value

 

Organization.

 

     (4) The board of a school district, intermediate school

 

district, or local act school district may provide for the removal

 

or treatment of asbestos or other material injurious to health for

 

school facilities and may pay for the improvements from operating

 

funds of the school district or from the proceeds of bonds or notes

 

issued for that purpose.

 

     (5) Issuance of bonds for the purposes authorized by this

 

section shall be considered as issued for capital expenditures for

 

all purposes including section 16 of article IX of the state

 

constitution of 1963. A lease-purchase agreement issued pursuant to

 

this subsection shall not be subject to the revised municipal

 

finance act, 2001 PA 34, MCL 141.2101 to 141.2821, and shall not be

 

a municipal security or a debt as those terms are defined in that

 

act.

 

     (6) Energy conservation and operational improvements or


substance removal or treatment authorized by this section is

 

subject to the competitive bidding requirements of section 1267.

 

     (7) If energy conservation and operational improvements are

 

made by a school district, local act school district, or

 

intermediate school district as provided in this section, the

 

school board or intermediate school board shall determine the

 

following information and shall report the following information to

 

the state treasurer within 60 days after the completion of the

 

improvements:

 

     (a) Name of each facility to which an improvement was made and

 

a description of the energy conservation and operational

 

improvements.

 

     (b) Actual energy consumption during the 12-month period

 

before completion commencement of the improvement.

 

     (c) Project costs and expenditures, including the total of all

 

lease payments over the duration of the lease-purchase agreement.

 

     (d) Estimated annual energy savings, including projected

 

savings over the duration of the installment contract.

 

     (8) If energy conservation and operational improvements are

 

made as provided in this section, the school board or intermediate

 

school board shall report to the state treasurer by July 1 of each

 

of the 5 years after the improvements are completed the actual

 

annual energy consumption of each facility to which improvements

 

were made. The forms for the reports required by this section shall

 

be furnished by the state treasurer.

 

     (9) An installment contract described in this section may

 

include a lease-purchase agreement, which may be a multiyear


contractual obligation that provides for automatic renewal unless

 

positive action is taken by the board of a school district,

 

intermediate school district, or local act school district to

 

terminate that contract. Payments under a lease-purchase agreement

 

shall be a current operating expense subject to annual

 

appropriations of funds by the board of a school district,

 

intermediate school district, or local act school district and

 

shall obligate the board of a school district, intermediate school

 

district, or local act school district only for those sums payable

 

during the fiscal year of contract execution or any renewal year

 

thereafter. The board of a school district, intermediate school

 

district, or local act school district may make payments under a

 

lease-purchase agreement from any legally available funds or from a

 

combination of energy or operational savings, capital

 

contributions, future replacement costs avoided, or billable

 

revenue enhancements that result from energy conservation and

 

operational improvements, provided that the board of a school

 

district, intermediate school district, or local act school

 

district has determined that those funds are sufficient to cover,

 

in aggregate over the full term of the contractual agreement, the

 

cost of the energy conservation and operational improvements. The

 

lease-purchase agreement will terminate immediately and absolutely

 

and without further obligation on the part of the board of a school

 

district, intermediate school district, or local act school

 

district at the close of the fiscal year in which it was executed

 

or renewed or at such time as appropriated and otherwise

 

unobligated funds are no longer available to satisfy the


obligations of the board of a school district, intermediate school

 

district, or local act school district under the lease-purchase

 

agreement. During the term of the lease-purchase agreement, the

 

board of a school district, intermediate school district, or local

 

act school district shall be the vested owner of the energy

 

conservation and operational improvements and may grant a security

 

interest in the energy conservation and operational improvements to

 

the provider of the lease-purchase agreement. Upon the termination

 

of the lease-purchase agreement and the satisfaction of the

 

obligations of the board of a school district, intermediate school

 

district, or local act school district, the provider of the lease-

 

purchase agreement shall release its security interest in the

 

energy conservation and operational improvements.

 

     (10) (9) As used in this section:

 

     (a) "Energy saving performance contract" means an agreement

 

for the evaluation, recommendation, and implementation of energy

 

conservation measures including, but not limited to, an energy

 

audit or detailed energy study; the design, installation,

 

operation, and maintenance of 1 or more energy conservation

 

measures; energy management services; and an energy savings

 

guarantee.

 

     (b) "Qualified provider" means an individual or a business

 

entity that is experienced in performing design, analysis, and

 

installation of energy conservation and operational improvements

 

and facility energy management measures and that will provide these

 

services under the contract with a guarantee or on a performance

 

basis.

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