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First Substitute H.B. 198

Representative Fred R Hunsaker proposes the following substitute bill:


             1     
STATE AGENCY ENERGY EFFICIENCY

             2     
2008 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Fred R Hunsaker

             5     
Senate Sponsor: Scott K. Jenkins

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill enacts and amends provisions relating to state agency energy efficiency.
             10      Highlighted Provisions:
             11          This bill:
             12          .    requires the Legislature, subject to future budget constraints, to retain energy
             13      savings in a state agency's appropriation;
             14          .    creates a revolving loan fund to lend monies to state agencies to finance energy
             15      efficiency measures;
             16          .    establishes a sunset date for certain provisions of the bill; and
             17          .    makes technical corrections.
             18      Monies Appropriated in this Bill:
             19          None
             20      Other Special Clauses:
             21          None
             22      Utah Code Sections Affected:
             23      AMENDS:
             24          63-55-263, as last amended by Laws of Utah 2007, Chapters 216, 306, and 317
             25      ENACTS:


             26          63A-5-602, Utah Code Annotated 1953
             27          63A-5-603, Utah Code Annotated 1953
             28      RENUMBERS AND AMENDS:
             29          63A-5-601, (Renumbered from 63-9-63, as last amended by Laws of Utah 2006,
             30      Chapter 278)
             31     
             32      Be it enacted by the Legislature of the state of Utah:
             33          Section 1. Section 63-55-263 is amended to read:
             34           63-55-263. Repeal dates, Titles 63 to 63E.
             35          (1) Title 63, Chapter 25a, Part 3, Sentencing Commission, is repealed January 1, 2012.
             36          (2) The Crime Victims' Reparations Board, created in Section 63-25a-404 , is repealed
             37      July 1, 2017.
             38          (3) The Resource Development Coordinating Committee, created in Section
             39      63-38d-501 , is repealed July 1, 2015.
             40          (4) Title 63, Chapter 38f, Part 4, Enterprise Zone Act, is repealed July 1, 2008.
             41          (5) (a) Title 63, Chapter 38f, Part 11, Recycling Market Development Zone Act, is
             42      repealed July 1, 2010.
             43          (b) Sections 59-7-610 and 59-10-1007 regarding tax credits for certain persons in
             44      recycling market development zones, are repealed for taxable years beginning on or after
             45      January 1, 2011.
             46          (c) Notwithstanding Subsection (5)(b), a person may not claim a tax credit under
             47      Section 59-7-610 or 59-10-1007 :
             48          (i) for the purchase price of machinery or equipment described in Section 59-7-610 or
             49      59-10-1007 , if the machinery or equipment is purchased on or after July 1, 2010; or
             50          (ii) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), if
             51      the expenditure is made on or after July 1, 2010.
             52          (d) Notwithstanding Subsections (5)(b) and (c), a person may carry forward a tax credit
             53      in accordance with Section 59-7-610 or 59-10-1007 if:
             54          (i) the person is entitled to a tax credit under Section 59-7-610 or 59-10-1007 ; and
             55          (ii) (A) for the purchase price of machinery or equipment described in Section
             56      59-7-610 or 59-10-1007 , the machinery or equipment is purchased on or before June 30, 2010;


             57      or
             58          (B) for an expenditure described in Subsection 59-7-610 (1)(b) or 59-10-1007 (1)(b), the
             59      expenditure is made on or before June 30, 2010.
             60          (6) Title 63, Chapter 47, Utah Commission for Women and Families, is repealed July
             61      1, 2011.
             62          (7) Title 63, Chapter 75, Families, Agencies, and Communities Together for Children
             63      and Youth At Risk Act, is repealed July 1, 2016.
             64          (8) Title 63, Chapter 88, Navajo Trust Fund, is repealed July 1, 2008.
             65          (9) Title 63, Chapter 99, Utah Commission on Aging, is repealed July 1, 2009.
             66          (10) Section 63A-4-204 , authorizing the Risk Management Fund to provide coverage
             67      to any public school district that chooses to participate, is repealed July 1, 2016.
             68          (11) Section 63A-5-603 , State Facility Energy Efficiency Fund, is repealed July 1,
             69      2016.
             70          [(11)] (12) Section 63C-8-106 , Rural residency training program, is repealed July 1,
             71      2015.
             72          Section 2. Section 63A-5-601 , which is renumbered from Section 63-9-63 is
             73      renumbered and amended to read:
             74     
Part 6. Energy Conservation and Alternative Financing

             75           [63-9-63].     63A-5-601. Legislative findings and policy.
             76          (1) The Legislature finds the following:
             77          (a) The operation of facilities owned and controlled by the state consumes significant
             78      amounts of energy.
             79          (b) Facilities owned and controlled by the state present a significant opportunity for
             80      energy cost savings through the implementation of conservation measures.
             81          (c) Principles which produce efficient facility management in the private sector are
             82      equally applicable to the management of public buildings and facilities.
             83          (d) There exists, in the private sector, favorable alternative methods of financing
             84      energy conservation measures which are not readily adaptable to financing state facility energy
             85      efficiency improvements due to current budgetary practices.
             86          (e) Maximization of energy conservation efforts in light of limited resources requires
             87      careful advance planning by responsible agencies.


             88          (2) The Legislature declares that it is the policy of the state to:
             89          (a) undertake aggressive programs designed to reduce energy use in state facilities in
             90      order to reduce the operating costs of state government and to set an example of energy
             91      efficiency for the public;
             92          (b) utilize, to the greatest practical extent, alternative funding sources and methods of
             93      financing energy efficiency improvements in state facilities in a manner which minimizes the
             94      necessity for increased appropriations;
             95          (c) employ private sector management incentive principles, to the extent practicable, to
             96      implement the policies in Subsections (2)(a) and (b);
             97          (d) develop incentives to encourage state entities to conserve energy, reduce energy
             98      costs, and utilize renewable energy sources where practicable; and
             99          (e) procure and use energy efficient products where practicable.
             100          Section 3. Section 63A-5-602 is enacted to read:
             101          63A-5-602. Appropriation for energy efficiency measures.
             102          (1) For purposes of this part:
             103          (a) "Energy efficiency measures" is as defined in Section 63-9-67 .
             104          (b) "Energy savings" means monies not expended by a state agency as the result of
             105      energy efficiency measures.
             106          (c) "State agency" is as defined in Section 63-9-67 .
             107          (2) Except as provided under Subsection (4) and subject to future budget constraints,
             108      the Legislature may not remove energy savings from a state agency's appropriation.
             109          (3) A state agency shall use energy savings to:
             110          (a) fund the cost of the energy efficiency measures; and
             111          (b) if funds are available after meeting the requirements of Subsection (3)(a), fund and
             112      implement new energy efficiency measures.
             113          (4) The Legislature may remove energy savings if:
             114          (a) a state agency has complied with Subsection (3)(a); and
             115          (b) no cost effective new energy efficiency measure is available for implementation.
             116          (5) A state agency may consult with the State Building Energy Efficiency Program
             117      manager in the Division of Facilities and Construction Management regarding:
             118          (a) the cost effectiveness of energy efficiency measures; and


             119          (b) ways to measure energy savings that take into account fluctuations in energy costs
             120      and temperature.
             121          Section 4. Section 63A-5-603 is enacted to read:
             122          63A-5-603. State Facility Energy Efficiency Fund -- Contents -- Use of fund
             123      monies.
             124          (1) As used in this section:
             125          (a) "Board" means the State Building Board.
             126          (b) "Division" means the Division of Facilities Construction and Management.
             127          (c) "Fund" means the State Facility Energy Efficiency Fund created by this section.
             128          (2) There is created a revolving loan fund known as the "State Facility Energy
             129      Efficiency Fund."
             130          (3) To capitalize the fund, the Division of Finance shall, at the end of fiscal year
             131      2007-08, transfer $3,650,000 from the Stripper Well-Petroleum Violation Escrow Fund to the
             132      fund.
             133          (4) The fund shall consist of:
             134          (a) monies transferred under Subsection (3);
             135          (b) monies appropriated by the Legislature;
             136          (c) monies received for the repayment of loans made from the fund; and
             137          (d) interest earned on the fund.
             138          (5) The board shall make a loan from the fund to a state agency to, wholly or in part,
             139      finance energy efficiency measures.
             140          (6) (a) (i) A state agency requesting a loan shall submit an application to the board in
             141      the form and containing the information that the board requires, including plans and
             142      specifications for the proposed energy efficiency measures.
             143          (ii) A state agency may request a loan to fund all or part of the cost of energy efficiency
             144      measures.
             145          (b) If the board rejects the application, the board shall notify the applicant stating the
             146      reasons for the rejection.
             147          (7) (a) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
             148      the board shall make rules establishing criteria to determine:
             149          (i) loan eligibility;


             150          (ii) energy efficiency measures priority; and
             151          (iii) ways to measure energy savings that take into account fluctuations in energy costs
             152      and temperature.
             153          (b) In making rules that establish prioritization criteria for energy efficiency measures,
             154      the board may consider:
             155          (i) possible additional sources of revenue;
             156          (ii) the feasibility and practicality of the energy efficiency measures;
             157          (iii) the energy savings attributable to eligible energy efficiency measures;
             158          (iv) the annual energy savings;
             159          (v) the projected energy cost payback of eligible energy efficiency measures;
             160          (vi) other benefits to the state attributable to eligible energy efficiency measures;
             161          (vii) the availability of federal funds for the energy efficiency measures; and
             162          (viii) whether to require a state agency to provide matching funds for the energy
             163      efficiency measures.
             164          (8) (a) In reviewing energy efficiency measures for possible funding, the board shall:
             165          (i) review the loan application and the plans and specifications for the energy
             166      efficiency measures;
             167          (ii) determine whether to grant the loan by applying the loan eligibility criteria; and
             168          (iii) if the loan is granted, prioritize funding of the energy efficiency measures by
             169      applying the prioritization criteria.
             170          (b) The board may condition approval of a loan application and the availability of
             171      funds on assurances from the state agency that the board considers necessary to ensure that the
             172      state agency:
             173          (i) uses the proceeds to pay the cost of the energy efficiency measures; and
             174          (ii) implements the energy efficiency measures.
             175          (9) The State Building Energy Efficiency Program shall provide staff support when the
             176      board performs the duties established in this section.


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