Chief Sponsor: Jack R. Draxler

Senate Sponsor: Kevin T. Van Tassell


8     General Description:
9          This bill addresses state and local energy efficiency programs.
10     Highlighted Provisions:
11          This bill:
12          ▸     modifies and renames the Facility Energy Efficiency Act;
13          ▸     modifies provisions relating to the State Building Energy Efficiency Program; and
14          ▸     modifies state and local provisions relating to energy efficiency programs.
15     Money Appropriated in this Bill:
16          None
17     Other Special Clauses:
18          None
19     Utah Code Sections Affected:
20     AMENDS:
21          11-44-101, as enacted by Laws of Utah 2010, Chapter 244
22          11-44-102, as enacted by Laws of Utah 2010, Chapter 244
23          11-44-201, as enacted by Laws of Utah 2010, Chapter 244
24          11-44-202, as last amended by Laws of Utah 2012, Chapter 347
25          11-44-203, as enacted by Laws of Utah 2010, Chapter 244
26          11-44-301, as last amended by Laws of Utah 2012, Chapter 347
27          11-44-302, as enacted by Laws of Utah 2010, Chapter 244

28          63A-1-112, as last amended by Laws of Utah 2008, Chapter 382
29          63A-5-701, as last amended by Laws of Utah 2012, Chapter 242

31     Be it enacted by the Legislature of the state of Utah:
32          Section 1. Section 11-44-101 is amended to read:

34          11-44-101. Title.
35          This chapter is known as the "[Facility Energy] Performance Efficiency Act."
36          Section 2. Section 11-44-102 is amended to read:
37          11-44-102. Definitions.
38          As used in this chapter:
39          (1) "Alternative fuel vehicle" means a motor vehicle that is not powered exclusively by
40     a petroleum fuel source.
41          [(1)] (2) "Cost savings" means a decrease in an expenditure, including a future
42     replacement expenditure, by a political subdivision resulting from [an energy] a performance
43     efficiency measure adopted under this chapter.
44          [(4)] (3) (a) "Facility" means a building, structure, or other improvement that is
45     constructed on property owned by a political subdivision.
46          (b) "Facility" does not mean a privately owned structure that is located on property
47     owned by a political subdivision.
48          [(3) "Energy savings] (4) "Performance efficiency agreement" means [a contract] an
49     agreement between a political subdivision and a qualified [energy] performance efficiency
50     service provider for evaluation, recommendation, and implementation of one or more [energy]
51     performance efficiency measures.
52          [(2)] (5) (a) "[Energy] Performance efficiency measure" means an action taken by a
53     political subdivision that reduces the political subdivision's:
54          (i) energy consumption;
55          (ii) water use; [or]
56          (iii) sewage use[.]; or
57          (iv) operation and maintenance costs.
58          (b) ["Energy] "Performance efficiency measure" includes:

59          (i) insulation installed in a wall, roof, floor, foundation, or heating and cooling
60     distribution system;
61          (ii) a storm window or door, multiglazed window or door, heat absorbing or heat
62     reflective glazed and coated window or door system, additional glazing, or reduction in glass
63     area;
64          (iii) an automatic energy control system;
65          (iv) a heating, ventilating, or air conditioning and distribution system modification or
66     replacement in a facility;
67          (v) caulking and weatherstripping;
68          (vi) a replacement or modification of a lighting fixture to increase the energy efficiency
69     of the lighting system without increasing the overall illumination of a facility unless the
70     increase in illumination is necessary to conform to the applicable building code for the
71     proposed lighting system;
72          (vii) an energy recovery system;
73          (viii) a cogeneration system that produces steam or another form of energy for use
74     primarily within a facility;
75          (ix) a renewable energy or alternate energy system;
76          (x) a change in operation or maintenance practice;
77          (xi) a procurement of a low-cost energy supply, including electricity, natural gas, or
78     water;
79          (xii) an indoor air quality improvement that conforms to applicable building code
80     requirements;
81          (xiii) a daylighting system;
82          (xiv) a building operation program that provides cost savings, including computerized
83     energy management and consumption tracking programs or staff and occupant training; [or]
84          (xv) a service to reduce utility costs by identifying utility errors and optimizing rate
85     schedules[.]; or
86          (xvi) the purchase and operation of an alternative fuel vehicle and the infrastructure to
87     support the operation of alternative fuel vehicles.
88          [(5) "Facility energy] (6) "Performance efficiency program" means a program
89     established by a political subdivision under this chapter to adopt [an energy] a performance

90     efficiency measure.
91          [(6)] (7) "Qualified [energy] performance efficiency service provider" means a person
92     who:
93          (a) has a record of successful [energy savings] performance efficiency agreements; or
94          (b) has:
95          (i) experience in the design, implementation, and installation of [energy] performance
96     efficiency measures;
97          (ii) technical capabilities to ensure that [an energy efficient] a performance efficiency
98     measure generates cost savings; and
99          (iii) the ability to secure the financing necessary to support the proposed [energy]
100     performance efficiency measure.
101          Section 3. Section 11-44-201 is amended to read:
102          11-44-201. Political subdivision responsibilities -- State responsibilities.
103          (1) A political subdivision may:
104          (a) enter into [an energy savings] a performance efficiency agreement;
105          (b) develop and administer a [facility energy] performance efficiency program;
106          (c) analyze energy consumption by the political subdivision;
107          (d) designate a staff member who is responsible for a [facility energy] performance
108     efficiency program; and
109          (e) provide the governing body of the political subdivision with information regarding
110     the [facility energy] performance efficiency program.
111          (2) The following entities may provide information, technical resources, and other
112     assistance to a political subdivision acting under this chapter:
113          (a) the Utah Geological Survey, created in Section 79-3-201;
114          (b) the State Board of Education, under Title 53A, Chapter 1, Administration of Public
115     Education at the State Level;
116          (c) the Division of Purchasing and General Services, created in Section 63A-2-101;
117     and
118          (d) the Division of Facilities Construction and Management, created in Section
119     63A-5-201.
120          Section 4. Section 11-44-202 is amended to read:

121          11-44-202. Types of agreements.
122          Notwithstanding Section 63G-6a-1205, a political subdivision shall structure [an energy
123     service] a performance efficiency agreement as a guaranteed [energy savings] performance
124     [contract] efficiency agreement, which shall include:
125          (1) the design and installation of [an energy] a performance efficiency measure, if
126     applicable;
127          (2) operation and maintenance of [any energy] a performance efficiency measure
128     implemented; and
129          (3) guaranteed annual cost savings that meet or exceed the total annual [contract]
130     agreement payments by the political subdivision under the [contract] agreement, including
131     financing charges incurred by the political subdivision over the life of the [contract] agreement.
132          Section 5. Section 11-44-203 is amended to read:
133          11-44-203. Length of agreements.
134          A political subdivision may only enter into [an energy savings] a performance
135     efficiency agreement for more than one year if the political subdivision finds that the amount
136     the political subdivision would spend on the [energy] performance efficiency measure will not
137     exceed the amount of the cost savings over 20 years from the date of installation of the
138     [energy] performance efficiency measure.
139          Section 6. Section 11-44-301 is amended to read:
140          11-44-301. Selection.
141          (1) A political subdivision shall follow the procedures outlined in Title 63G, Chapter
142     6a, Utah Procurement Code, when selecting a qualified [energy] performance efficiency service
143     provider.
144          (2) The Division of Purchasing shall maintain a list of qualified [energy] performance
145     efficiency service providers.
146          (3) The qualified [energy] performance efficiency service provider selected from the
147     bid process shall prepare an investment grade [energy] audit, which shall become part of the
148     final [contract] agreement between the political subdivision and the qualified [energy]
149     performance efficiency service provider.
150          (4) The audit shall include:
151          (a) a detailed description of the [energy] performance efficiency measure;

152          (b) an estimated cost; and
153          (c) a projected cost savings.
154          Section 7. Section 11-44-302 is amended to read:
155          11-44-302. Annual reports.
156          During the term of [an energy savings] a performance efficiency agreement, the
157     qualified [energy] performance efficiency service provider shall submit an annual report to the
158     political subdivision that provides the cost savings attributable to the [energy] performance
159     efficiency measures taken by the political subdivision.
160          Section 8. Section 63A-1-112 is amended to read:
161          63A-1-112. Certificates of participation -- Legislative approval required --
162     Definition -- Exception.
163          (1) (a) Certificates of participation for either capital facilities or capital improvements
164     may not be issued by the department, its subdivisions, or any other state agency after July 1,
165     1985, without prior legislative approval.
166          (b) Nothing in this section affects the rights and obligations surrounding certificates of
167     participation that were issued prior to July 1, 1985.
168          (2) (a) As used in this section, "certificate of participation" means an instrument that
169     acts as evidence of the certificate holder's undivided interest in property being lease-purchased,
170     the payment on which is subject to appropriation by the Legislature.
171          (b) (i) [For purposes of] As used in this Subsection (2)(b), "[energy savings]
172     performance efficiency agreement" [has the meaning as] means the same as that term is defined
173     in Section 63A-5-701.
174          (ii) "Certificate of participation" does not include [an energy savings] a performance
175     efficiency agreement.
176          Section 9. Section 63A-5-701 is amended to read:
177          63A-5-701. State Building Energy Efficiency Program.
178          (1) For purposes of this section:
179          (a) "Division" means the Division of Facilities Construction and Management
180     established in Section 63A-5-201.
181          [(b) "Energy efficiency measures" means actions taken or initiated by a state agency
182     that reduce the state agency's energy use, increase the state agency's energy efficiency, reduce

183     source energy consumption, reduce water consumption, or lower the costs of energy or water to
184     the state agency.]
185          (b) "Energy efficiency measure" means an action taken or initiated by a state agency
186     that:
187          (i) reduces the state agency's energy or fuel use or resource energy consumption, water
188     or other resource consumption, operation and maintenance costs, or cost of energy, fuel, water,
189     or other resource; or
190          (ii) increases the state agency's energy or fuel efficiency or resource consumption
191     efficiency.
192          (c) ["Energy savings] "Performance efficiency agreement" means an agreement entered
193     into by a state agency whereby the state agency implements one or more energy efficiency
194     measures and finances the costs associated with implementation of [energy] performance
195     efficiency measures using the stream of expected savings in [utility] costs resulting from
196     implementation of the [energy] performance efficiency measures as [the] a funding source for
197     repayment.
198          (d) "State agency" means each executive, legislative, and judicial branch department,
199     agency, board, commission, or division, and includes a state institution of higher education as
200     defined in Section 53B-3-102.
201          (e) "State Building Energy Efficiency Program" means a program established under
202     this section for the purpose of improving energy efficiency measures and reducing the energy
203     costs for state facilities.
204          (f) (i) "State facility" means any building, structure, or other improvement that is
205     constructed on property owned by the state, its departments, commissions, institutions, or
206     agencies, or a state institution of higher education.
207          (ii) "State facility" does not mean:
208          (A) an unoccupied structure that is a component of the state highway system;
209          (B) a privately owned structure that is located on property owned by the state, its
210     departments, commissions, institutions, or agencies, or a state institution of higher education;
211     or
212          (C) a structure that is located on land administered by the School and Institutional
213     Trust Lands Administration under a lease, permit, or contract with the School and Institutional

214     Trust Lands Administration.
215          (2) The division shall:
216          (a) develop and administer the state building energy efficiency program, which shall
217     include guidelines and procedures to improve energy efficiency in the maintenance and
218     management of state facilities;
219          (b) provide information and assistance to state agencies in their efforts to improve
220     energy efficiency;
221          (c) analyze energy consumption by state agencies to identify opportunities for
222     improved energy efficiency;
223          (d) establish an advisory group composed of representatives of state agencies to
224     provide information and assistance in the development and implementation of the state
225     building energy efficiency program; and
226          (e) submit to the governor and to the Infrastructure and General Government
227     Appropriations Subcommittee of the Legislature an annual report that:
228          (i) identifies strategies for long-term improvement in energy efficiency;
229          (ii) identifies goals for energy conservation for the upcoming year; and
230          (iii) details energy management programs and strategies that were undertaken in the
231     previous year to improve the energy efficiency of state agencies and the energy savings
232     achieved.
233          (3) Each state agency shall:
234          (a) designate a staff member that is responsible for coordinating energy efficiency
235     efforts within the agency;
236          (b) provide energy consumption and costs information to the division;
237          (c) develop strategies for improving energy efficiency and reducing energy costs; and
238          (d) provide the division with information regarding the agency's energy efficiency and
239     reduction strategies.
240          (4) (a) A state agency may enter into [an energy savings] a performance efficiency
241     agreement for a term of up to 20 years.
242          (b) Before entering into [an energy savings] a performance efficiency agreement, the
243     state agency shall:
244          (i) utilize the division to oversee the project unless the project is exempt from the

245     division's oversight or the oversight is delegated to the agency under the provisions of Section
246     63A-5-206;
247          (ii) obtain the prior approval of the governor or the governor's designee; and
248          (iii) provide the Office of Legislative Fiscal Analyst with a copy of the proposed
249     agreement before the agency enters into the agreement.

Legislative Review Note
     as of 2-24-15 7:27 PM

Office of Legislative Research and General Counsel