H. B. 3200
(By Delegates Beane, Kuhn, Manuel, Yost,
Leggett, Azinger and Walters)
(Originating in the Committee on Government Organization)
[February 27, 2003]
A BILL to amend chapter five-g of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article two, relating to
authorizing agencies to enter into performance-based contracts
with qualified providers of energy-conservation measures for
the purpose of reducing energy operating costs of agency
buildings
.
Be it enacted by the Legislature of West Virginia:
That chapter five-g of the code of West Virginia, one thousand
nine hundred thirty-one, as amended, be amended by adding thereto
a new article, designated article two, to read as follows:
CHAPTER 5G. PROCUREMENT OF ARCHITECT-ENGINEER SERVICES AND
ENERGY-SAVING CONTRACTS BY STATE AND ITS SUBDIVISIONS.
ARTICLE 2. ENERGY-SAVINGS CONTRACTS.
§5G-2-1. Definitions.
As used in this article:
(a) "Agency" means
all state departments, agencies,
authorities and all political subdivisions, including cities,
counties and boards of education.
(b) "Energy-conservation measures" means goods or services, or
both, to reduce energy consumption operating costs of agency
facilities. They include, but are not limited to, installation of
one or more of the following:
(1) Insulation of a building structure and systems within a
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, or other window or door
modifications that reduce energy consumption;
(3) Automatic energy control systems;
(4) Heating, ventilating or air conditioning systems,
including modifications or replacements;
(5) Replacement or modification of lighting fixtures to
increase energy efficiency;
(6) Energy recovery systems;
(7) Cogeneration systems that produce steam or another form of
energy for use by any agency in a building or complex of buildings
owned by the agency; or
(8) Energy-conservation maintenance measures that provide long-term operating cost reductions of the building's present cost
of operation.
(c) "Energy-savings contract" means a contract for the
evaluation and recommendation of energy operations conservation
measures, and for implementation of one or more measures. The
contract must provide that payments, except obligations upon
termination of the contract before its expiration, are to be made
over time. Any agency may supplement these payments with federal,
state or local funds to reduce the annual cost or to lower the
initial amount to be financed.
(d) "Qualified provider" means a person, firm or corporation
experienced in the design, implementation and installation of
energy-conservation measures.
§5G-2-2. Contracts for energy-savings contracts.
(a) Agencies are authorized to enter into performance-based
contracts with qualified providers of energy-conservation measures
for the purpose of reducing energy operating costs of agency
buildings.
(b) Agencies may enter into an energy-savings contract with
a qualified provider to reduce energy operating costs
significantly. Before entering into a contract or before the
installation of equipment, modifications or remodeling to be
furnished under a contract, the qualified provider shall first
issue a proposal summarizing the scope of work to be performed. A proposal must contain estimates of all costs of installation,
modifications or remodeling, including the costs of design,
engineering, installation, maintenance, repairs or debt service, as
well as estimates of the amounts by which energy operating costs
will be reduced. If the agency finds, after receiving the
proposal, that the proposal includes one or more
energy-conservation measure designed to save energy operating
costs, the agency may enter into a contract with the provider
pursuant to this section.
(c) An energy-savings contract must include the following:
(1) A guarantee of a specific minimum amount of money that the
agency will save in energy operating costs each year during the
term of the contract;
(2) A statement of all costs of energy-conservation measures,
including the costs of design, engineering, installation,
maintenance, repairs and operations.
(d) An energy-savings contract which is performance-based and
includes a guarantee of savings and a comprehensive approach of
energy-conservation measures for improving comfort is subject to
competitive bidding requirements: Provided,
That the requirements
of article five-a, chapter twenty-one of this code as to prevailing
wage rates shall apply to the construction and installation work
performed under a contract.
(e) Agencies may enter into a "lease with an option to purchase" contract for the purchase and installation of energy-
conservation measures if the term of the lease does not exceed ten
years, and the lease contract includes the provisions contained in
subsection (f), and meets federal tax requirements for tax-exempt
municipal leasing or long-term financing.
(f) An energy-savings contract may extend beyond the fiscal
year in which it first becomes effective: Provided,
That such a
contract may not exceed a ten-year term: Provided, however,
That
such long term contract will be void unless such agreement provides
that the agency shall have the option during each fiscal year of
the contract to terminate the agreement. The agency may include in
its annual budget for each fiscal year any amounts payable under
long-term energy-savings contracts during that fiscal year:
Provided further,
That nothing contained may be construed to
require or permit the replacement of jobs performed by service
personnel employed by and agency.
This is a new article; therefore, strike-throughs and
underscoring have been omitted.