Bill Text: PA HB687 | 2009-2010 | Regular Session | Amended

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Bill Title: In guaranteed energy savings contracts, further providing for definitions, for contracting procedures and for contract provisions.

Spectrum: Moderate Partisan Bill (Democrat 30-5)

Status: (Passed) 2010-07-02 - Act No. 39 [HB687 Detail]

Download: Pennsylvania-2009-HB687-Amended.html

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SENATE AMENDED
PRIOR PRINTER'S NO. 760 PRINTER'S NO. 3902
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 687 Session of2009
INTRODUCED BY DERMODY, BARBIN, BELFANTI, BRENNAN, CALTAGIRONE, CONKLIN, D. COSTA, DeLUCA, FRANKEL, FREEMAN, GEORGE, GRUCELA, HENNESSEY, HORNAMAN, JOSEPHS, KOTIK, KULA, LONGIETTI, MAHONEY, McGEEHAN, McILVAINE SMITH, MELIO, MILLER, M. O'BRIEN, PASHINSKI, READSHAW, REICHLEY, SIPTROTH, K. SMITH, J. TAYLOR, VULAKOVICH, WAGNER, WALKO, BRIGGS AND M. SMITH, MARCH 3, 2009
SENATOR CORMAN, APPROPRIATIONS, IN SENATE, RE-REPORTED AS AMENDED, JUNE 14, 2010
AN ACT
Amending Title 62 (Procurement) of the Pennsylvania Consolidated
Statutes, in guaranteed energy savings contracts, further
providing for definitions, for contracting procedures and for
contract provisions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "energy conservation measure"
in section 3752 of Title 62 of the Pennsylvania Consolidated
Statutes is amended to read:
§ 3752. Definitions.
The following words and phrases when used in this subchapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Energy conservation measure." A program [or], facility
alteration or technology upgrade designed to reduce energy,
water, wastewater or other consumption or operating costs. The
term may include, without limitation:
(1) Insulation of the building structure or systems
within the 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,
additional glazing, reductions in glass area or other window
and door system modifications that reduce energy consumption.
(3) Automated or computerized energy control systems.
(4) Heating, ventilating or air conditioning system
modifications or replacements.
(5) 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
applicable State or local building codes for the lighting
system after the proposed modifications are made.
(6) Energy recovery systems.
(7) Systems that produce steam or forms of energy such
as heat as well as electricity for use within a building or
complex of buildings.
(8) Energy conservation measures that provide operating
cost reductions based on life cycle cost analysis.
(9) A training program or facility alteration that
reduces energy consumption or reduces operating costs,
including allowable costs, based on future reductions in
labor costs or costs for contracted services.
(10) A facility alteration which includes expenditures
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that are required to properly implement other energy
conservation measures.
(11) A program to reduce energy costs through rate
adjustments, load shifting to reduce peak demand, and/or use
of alternative energy suppliers, such as, but not limited to:
(i) changes to more favorable rate schedules;
(ii) negotiation of lower rates, same supplier or
new suppliers, where applicable; and
(iii) auditing of energy service billing and meters.
(12) The installation of energy information and control
systems that monitor consumption, redirect systems to optimal
energy sources and manage energy-using equipment.
(13) Indoor air quality improvements.
(14) Daylighting systems.
(15) Renewable and/or on-site distributed power
generation systems.
(16) Water and sewer conservation measures, including,
without limitation, plumbing fixtures and infrastructure.
(17) Equipment upgrades that improve accuracy of
billable revenue generating systems.
(18) Automated, electronic or remotely controlled
systems or measures that reduce operating costs.
(19) Other energy, water or wastewater measures as may
provide measurable, long-term operating costs reductions or
billable revenue increases.
* * *
Section 2. Sections 3753(d) and 3754(a) and (c) of Title 62
are amended to read:
§ 3753. Contracting procedures.
* * *
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(d) Selection and notice.--The governmental unit shall
select the qualified provider that best meets the needs of the
governmental unit in accordance with criteria established by the
governmental unit. For governmental units that are not required
to take actions on contracts at public meetings, the
governmental unit shall provide public notice of the award of
the guaranteed energy savings contract within 30 days in the
Pennsylvania Bulletin. The notice shall include the names of the
parties to the contract and the purpose of the contract. For
governmental units that are required to take actions on
contracts at public meetings, the public notice shall be made at
least ten days prior to the meeting. After reviewing the
proposals pursuant to subsection (e), a governmental unit may
enter into a guaranteed energy savings contract with a qualified
provider if it finds that the amount it would spend on the
energy conservation measures recommended in the proposal would
not exceed the amount [to be saved in both energy and
operational costs] of energy, operational, water or wastewater <--
cost savings, operational cost savings or revenue increases <--
resulting from the energy conservation measures within a [15-
year] 20-year period] period not to exceed 20 years from the <--
date of final acceptance installation if the recommendations in <--
the proposal were followed and the qualified provider provides a
written guarantee that the energy, water, wastewater or <--
wastewater cost savings, or [operating] operational cost savings <--
or revenue increases will meet or exceed the cost of the
contract[.], provided, however, that when determining the
operational cost savings from any contract or project of the <--
type defined in paragraphs (17), (18) and (19) of the definition
of "energy conservation measure" in section 3752 (relating to
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definitions), the governmental unit shall not consider savings
that result from reductions in the size of its work force if the
reductions are related to or generated by outsourcing or using
contract workers to perform tasks previously performed by
employees of the governmental unit.
* * *
§ 3754. Contract provisions.
(a) General rule.--A guaranteed energy savings contract may
provide that all payments, except obligations on termination of
the contract before its scheduled expiration, shall be made over
a period of time. [Every guaranteed energy savings contract that <--
requires payments over a period of time shall provide that, <--
after the initial year of the contract, the savings in [any] <--
every subsequent year are guaranteed to the extent necessary to
make payments under the contract during that year.] Annual <--
revenues or savings from the guaranteed energy savings contract
may be less than annual payments, if during the length of the
contract aggregate savings occur as provided for by the terms of
the contract.
* * *
(c) Payments.--A guaranteed energy savings contract may
provide for payments over a period of time not to exceed [15] 20
years and for the evaluation, recommendation, design,
implementation and installation of energy conservation measures
on an installment payment or lease purchase basis.
* * *
Section 3. This act shall take effect in 60 days.
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