Introduced Version
Senate Bill 325 History
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Senate Bill No. 325
(By Senators McCabe, Tomblin (Mr. President), Foster, Caruth, D.
Facemire, Stollings and Unger)
____________
[Introduced February 23, 2009; referred to the Committee on
Transportation and Infrastructure; and then to the Committee on
Finance.]
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A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §5B-7-1, §5B-7-2,
§5B-7-3, §5B-7-4, §5B-7-5
, §5B-7-6 and §5B-7-7
, all relating
to the creation of the West Virginia Energy Efficient
Buildings Program concentrating on energy demand-side
management in private and public buildings; generating energy
savings; promoting more efficient use of the state's natural
resources; authorizing the West Virginia Development Office to
promulgate regulations; creating the West Virginia Energy
Efficient Buildings Public Sector Grant Fund and the West
Virginia Energy Efficient Buildings Private Sector Loan
Revolving Fund; establishing criteria for grants and loans
from the funds; and requiring annual reports to be provided to the Legislature.
Be it enacted by the Legislature of West Virginia:
That
the Code of West Virginia, 1931, as amended,
be amended
by adding thereto a new article, designated
§5B-7-1, §5B-7-2,
§5B-7-3, §5B-7-4, §5B-7-5
, §5B-7-6 and §5B-7-7
,
all to read as
follows:
ARTICLE 7. WEST VIRGINIA ENERGY EFFICIENT BUILDINGS PROGRAM.
§5B-7-1. Short Title.
This article shall be known as the "West Virginia Energy
Efficient Buildings Program Act."
§5B-7-2. Creation of West Virginia Energy Efficient Buildings
Program; Purpose.
(a) There is hereby created, within the West Virginia
Development Office, the West Virginia Energy Efficient Buildings
Program for the purposes of:
(1) Concentrating on energy demand-side management in private
and public sector buildings;
(2) Generating savings to taxpayers and the state;
(3) Allowing for continued economic development;
(4) More efficiently using the state's natural resources;
(5) Establishing the state as a benchmark state for demand-
side management efforts; and
(6) Creating further demand for "green" jobs and products in
the state.
(b) The West Virginia Energy Efficient Buildings Program shall
consist of the West Virginia Energy Efficient Buildings public
sector grant fund established in section four of this article and
the West Virginia Energy Efficient Buildings Private Sector Loan
Revolving Fund to be administered by the West Virginia Economic
Development Authority established by section five of this article.
§5B-7-3. Definitions.
Unless the context in which used clearly requires a different
meaning, as used in this article:
(1) "Demand-side management" means any conservation, load
management, or other utility activity intended to influence the
level or pattern of customer usage or demand, including home energy
assistance programs.
(2) "Development office" means the West Virginia Development
Office as defined in section one, article two of this chapter.
(3) "Economic development authority" means the West Virginia
Economic Development Authority as defined in section one, article
fifteen, chapter thirty-one of this code.
(4) "Energy audit" means examination of a building's
energy-using systems, energy consumption and costs, occupancy
patterns, and operation and maintenance procedures by the
Industries of the Future-West Virginia Assessment Team or other
entity identified in section six of this article.
(5) "Energy-efficient heating, cooling, ventilation or hot water system" means a heating, cooling, ventilation, or hot water
system that meets the requirements for the federal energy-efficient
commercial building deduction under 26 U.S.C. §179D, in effect
December 31, 2008.
(6) "Energy-efficient interior lighting system" means an
interior lighting system that meets the maximum reduction in
lighting power density requirements for the federal energy
efficient commercial building deduction under 26 U.S.C. §179D, in
effect December 31, 2008.
(7) "Energy-efficient windows and storm doors" means windows
and storm doors that are: ENERGY STAR-labeled and certified by the
National Fenestration Rating Council as meeting the North-Central
United States climate zone performance standards for U-factor
(nonsolar heat conductance), solar heat gain coefficient, air
leakage, visible-light transmittance, and condensation resistance.
(8) "Engineered demand-side management project" means a
project undertaken to reduce the amount of energy consumed in an
existing structure, including, but not limited to:
(A) Energy-efficient heating, cooling, ventilation, or hot
water systems;
(B) Energy-efficient interior lighting systems;
(C) Energy-efficient windows and storm doors;
(D) Qualified energy property;
(E) Upgraded insulation;
(F) Solar water-heating systems; and
(G) Any other energy efficiency measures that will reduce
energy costs, including those that will use solar power, either
active or passive.
(9) "Private sector building" means any nonresidential
building not considered a public sector building.
(10) "Public sector building" means a building owned by the
state, agencies, authorities, quasi-public corporations, any public
college or university of the state, volunteer fire departments, any
public community college of the state, and all political
subdivisions, including cities, counties, boards of education,
towns, municipal corporations, building commissions, public service
districts, regional water or wastewater authorities, or regional
solid waste authorities.
(11) "Qualified energy property" means the following property
that meets the performance, quality, and certification standards of
and that would have been eligible for the federal tax credit under
26 U.S.C. §25C, as of December 31, 2008 including, but not limited
to:
(A) An electric heat pump water heater;
(B) An electric heat pump;
(C) A closed loop geothermal heat pump;
(D) An open loop geothermal heat pump;
(E) A direct expansion (DX) geothermal heat pump;
(F) A central air conditioner;
(G) A natural gas, propane, or oil furnace, boiler or hot
water heater; or
(H) An advanced main air circulating fan.
(12) "Simple payback period" means the amount of years
determined by the economic development authority to pay back the
principal and interest on a revolving fund loan.
(13) "Solar water-heating system" means a system that:
(A) Uses solar-thermal energy to heat water;
(B) Is an indirect pressurized glycol system that uses
propylene glycol or an indirect drainback system that uses
distilled water or propylene glycol;
(C) Uses OG-100 solar thermal collectors that are certified by
the Solar Rating and Certification Corporation and covered by a
manufacturer's warranty of not less than five years;
(D) Is installed by a certified installer; and
(E) Is warranted by the certified installer for a period of
not less than two years.
(14) "Upgraded insulation: means insulation with the following
R-value ratings:
(A) Attic insulation rated R-38 or higher;
(B) Exterior wall, crawl space, and basement exterior wall
insulation rated R-13 or higher; and
(C) Floor insulation rated R-19 or higher.
(15) "West Virginia Energy Efficient Buildings Public Sector
Grant Fund" or "grant fund" shall mean the fund created in section
four of this article.
(16) "West Virginia Energy Efficient Buildings Private Sector
Loan Revolving Fund" or "revolving fund" shall mean the fund
created in section five of this article.
§5B-7-4. West Virginia Energy Efficient Buildings Public Sector
Grant Fund.
(a) All funds collected for the purpose of administering
grants shall be deposited in a special state treasury fund to be
known as "The West Virginia Energy Efficient Buildings Public
Sector Grant Fund." The grant fund shall be a permanent and
perpetual fund administered by the development office. Expenditures
from the fund shall be for the purposes set forth in this section
and made in accordance with appropriations from the legislature and
pursuant to the provisions of article three, chapter twelve of this
code and after the fulfillment of the provisions of article two,
chapter eleven-b of this code: Provided, That for the fiscal year
ending June 30, 2010 expenditures are authorized from collections
and not legislative appropriations.
(b) (1) The grant fund shall be administered and accounted for
by the directors, officers and managerial staff of the development
office as a special purpose account separate and distinct from any
other moneys, funds or funds owned and managed by the development office. The grant fund shall consist of sub-accounts, as deemed
necessary by the development office, for the deposit of:
(A) Any appropriations, grants, gifts, contributions, loan
proceeds or other revenues received by the grant fund from any
source, public or private;
(B) Funds derived from any bond issuance authorized by the
Legislature;
(C) All income earned on moneys held in the grant fund; and
(D) Any funds provided by the federal government to the state
for the purposes of this article.
(2) Grant fund amounts not expended at the close of the fiscal
year shall not lapse but shall be carried forward to the next
fiscal year. Any interest earnings of the grant fund shall become
part of the grant fund and shall not lapse.
(c) (1) Grant fund moneys, except as provided in paragraph (b)
of this subsection, shall be used by the development office to
provide grants to the public sector for engineered demand-side
management projects in public sector buildings.
(2) All recipients of grant money for public sector buildings
shall pay annually, in arrears, the savings it received due to the
completion of the engineered demand-side management project to the
development office for a three-year period. The amount of savings
paid to the development office shall be equal to the amount of
savings determined in the energy audit for that year. If a recipient of grant funds fails to pay such savings within twelve
months of when the development office determines the savings is
due, such recipient shall be ineligible to receive state funds of
any kind until such savings are remitted to the development office.
(3) Grant fund moneys that result from the energy savings
captured by the projects undertaken in public sector buildings and
certified through an energy audit shall not be used to provide
grants to the public sector but shall instead be deposited in the
revolving fund on an annual basis to provide low-interest loans to
the private sector in accordance with section five of this article.
(d) To be eligible for a grant under the provisions of this
section, the cost of a proposed engineered demand-side management
project shall be at least $5,000 and shall not exceed $2 million
per project.
(e) Moneys in the grant fund are hereby appropriated for the
purposes set forth in subsection (b) of this section,
(f) The development office shall not approve an applicant for
a grant under this section unless the applicant:
(1) Agrees to undergo and pay for an energy audit to establish
a baseline of energy consumption;
(2) Agrees to undergo and pay for subsequent energy audits to
determine the amount of energy savings; and
(3) Meets all the requirements established in this section and
any regulations promulgated thereunder.
§5B-7-5. West Virginia Energy Efficient Buildings Private Sector
Loan Revolving Fund.
(a) All funds collected for the purpose of administering
grants shall be deposited in a special state treasury fund to be
known as "The West Virginia Energy Efficient Buildings Private
Sector Loan Revolving Fund." The revolving fund shall be a
permanent and perpetual fund administered by the economic
development authority on behalf of the development office.
Expenditures from the fund shall be for the purposes set forth in
this section and made in accordance with appropriations from the
legislature and pursuant to the provisions of article three,
chapter twelve of this code and after the fulfillment of the
provisions of article two, chapter eleven-b of this code: Provided,
That for the fiscal year ending June 30, 2010 expenditures are
authorized from collections and not legislative appropriations.
(b) (1) The revolving fund shall be governed administered and
accounted for by the directors, officers and managerial staff of
the economic development authority as a special purpose account
separate and distinct from any other moneys, funds or funds owned
and managed by the economic development authority. The revolving
fund shall consist of sub-accounts, as deemed necessary by the
economic development authority, for the deposit of:
(A) Any appropriations, grants, gifts, contributions, loan
proceeds or other revenues received by the revolving fund from any source, public or private;
(B) Loan repayments made by the private sector;
(C) Energy savings captured from public sector buildings as a
direct result of engineered demand-side management projects paid
for with funds from the grant program established under section
four of this article and certified through an energy audit;
(D) All income earned on moneys held in the revolving fund;
(E) Funds derived from any bond issuance authorized by the
Legislature; and
(F) Any funds provided from the federal government to the
state for the purposes of this article.
(2) Revolving fund amounts not expended at the close of the
fiscal year shall not lapse but shall be carried forward to the
next fiscal year. Any interest earnings of the revolving fund
shall become part of the revolving fund and shall not lapse.
(c) Revolving fund moneys shall be used by the economic
development authority, on behalf of the development office, to
provide low-interest loans to the private sector for engineered
demand-side management projects in private sector buildings. The
economic development authority shall not authorize more than one
loan outstanding at a time to any private retail, commercial or
industrial business.
(d) To be eligible for a loan under this section, the cost of
a proposed engineered demand-side management project shall be at least $5,000 and shall not exceed $2 million per project.
(e) Beginning July 1, 2010 and ending June 30, 2014 the simple
payback period for an approved engineered demand-side management
project shall be no more than five years: Provided, That beginning
July 1, 2013 the economic development authority, on behalf of the
development office, may consider a simple payback period of no more
than twelve years.
(f) The loans provided under this section shall be subject to
the prime interest rate minus two percent.
(g) Moneys in the revolving fund are hereby appropriated for
the purpose set forth in subsection (2) of this section.
(h) The economic development authority shall not approve an
applicant for a loan under this section, unless the applicant:
(1) Can demonstrate that the applicant is in good standing
with the state;
(2) Can demonstrate that the applicant has a positive payment
history with the applicant's electricity provider for the preceding
three consecutive years;
(3) Agrees to undergo and pay for an energy audit to establish
a baseline of energy consumption;
(4) Agrees to undergo and pay for subsequent energy audits to
determine the amount of energy savings;
(5) Enters into a loan agreement with the economic development
authority, on behalf of the development office, that provides for the terms of the loan and a monthly amoritization schedule;
(6) Agrees to secure the loan by granting the economic
development authority, on behalf of the development office, a lien
on the private sector building: Provided, That such lien may be
subordinate to then existing liens;
(7) Meets all the requirements established in this section and
any administrative regulations promulgated thereunder.
§5B-7-6.
Regulations of West Virginia Energy Efficient Buildings
Program.
(a) To implement and carry out the intent of this article, the
development office in consultation with the economic development
authority shall promulgate legislative rules in accordance with
article three, chapter twenty-nine-a of this code to:
(1) Develop a method to score application for the grant fund
and the revolving fund;
(2) With the assistance of the Industries of the Future-West
Virginia Assessment Team develop a list of companies qualified to
perform energy audits for the purposes of determining a baseline of
energy consumption and any subsequent savings realized by:
(A) Public sector recipients of grants awarded from the grant
fund; and
(B) Private sector recipients of low-interest loans provided
from the revolving fund;
(3) Establish a process for the collection of grant savings payments to be made to the development office from recipients of
grants as required in section four of this article; and
(4) Establish a process for the collection of loan payments to
be made to the economic development authority from the private
sector to repay amounts that were made available under the
revolving fund.
The development office in consultation with the economic
development authority shall also promulgate any other
administrative regulations necessary to administer the provisions
of this article.
(b) The development office and the economic development
authority shall report to the Governor and the Legislature on or
before November 1, 2010, and on or before November 1 of each year
thereafter, the following for the grant fund and the revolving fund
for the immediately preceding fiscal year:
(1) The number of applicants;
(2) A description of the engineered demand-side management
projects on which loans or grants were provided;
(3) The total amount loaned to the private sector and the
total amount of grants provided to the public sector;
(4) The energy cost savings realized by the public sector;
(5) The amount of funds transferred from the grant fund to the
revolving fund;
(6) The number of applicants and the amount of loan and grants for which funding was not available; and
(7) Based upon the energy audits performed, the amount of
increased energy capacity realized.
§5B-7-7. Division of legislative funds and federal funds provided
to West Virginia Energy Efficient Buildings Program.
All funds appropriated by the Legislature to the West Virginia
Energy Efficient Buildings Program shall be divided equally with
fifty percent of the funds deposited in the grant fund and fifty
percent of the funds deposited in the revolving fund. Other grants,
contributions, gifts, loans or funds provided by the federal
government shall also be equally divided with fifty percent of the
funds deposited in the grant fund and fifty percent of the funds
deposited in the revolving: Provided, That funds provided by the
federal government, grants, contributions, gifts, or loans that
have specific instruction to deposit moneys into a specific fund
shall be deposited in the specific fund as instructed.
NOTE: The purpose of this bill is to create the West Virginia
Energy Efficient Buildings Program that concentrates on energy
demand-side management in private and public buildings, generating
energy savings and promotes the more efficient use of the sate's
natural resources The bill authorizes the West Virginia development
office to promulgate regulations. The bill also the creates the
West Virginia Energy Efficient Buildings Public Sector Grant Fund
and the West Virginia Energy Efficient Buildings Private Sector
Loan Revolving Fund and establishes the criteria for grants and
loans made from those funds. Moreover, the bill requires annual
reports to be provided to the Legislature.
§5B-7-1, §5B-7-2, §5B-7-3, §5B-7-4, §5B-7-5, §5B-7-6 and
§5B-7-7 are new; therefore, strike-throughs and underscoring have
been omitted.