CORRECTIVE REPRINT
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PRIOR PRINTER'S NOS. 1214, 1632 PRINTER'S NO. 1640
No. 1083 Session of 1995
INTRODUCED BY SALVATORE, JUNE 8, 1995
SENATOR BRIGHTBILL, ENVIRONMENTAL RESOURCES AND ENERGY, AS
AMENDED, DECEMBER 12, 1995
AN ACT
1 Authorizing Commonwealth and municipal government entities to
2 enter into guaranteed energy savings contracts.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Guaranteed
7 Energy Savings Act.
8 Section 2. Definitions.
9 The following words and phrases when used in this act shall
10 have the meanings given to them in this section unless the
11 context clearly indicates otherwise:
12 "Energy conservation measure." A training program or
13 facility alteration designed to reduce energy consumption or
14 operating costs. The term may include, without limitation:
15 (1) Insulation of the building structure or systems
16 within the building.
1 (2) Storm windows or doors, caulking or weather
2 stripping, multiglazed windows or doors, heat-absorbing or
3 heat-reflective glazed and coated window or door systems,
4 additional glazing, reductions in glass area or other window
5 and door system modifications that reduce energy consumption.
6 (3) Automated or computerized energy control systems.
7 (4) Heating, ventilating or air-conditioning system
8 modifications or replacements.
9 (5) Replacement or modification of lighting fixtures to
10 increase the energy efficiency of the lighting system without
11 increasing the overall illumination of a facility, unless an
12 increase in illumination is necessary to conform to
13 applicable State or local building codes for the lighting
14 system after the proposed modifications are made.
15 (6) Energy recovery systems.
16 (7) Systems that produce steam or forms of energy such
17 as heat, as well as electricity, for use within a building or
18 complex of buildings.
19 (8) Energy conservation measures that provide long-term <--
20 operating cost reductions. OPERATING COST REDUCTIONS BASED ON <--
21 LIFE-CYCLE COST ANALYSIS.
22 "Governmental unit." Any contracting body as defined in
23 section 2 of the act of December 20, 1967 (P.L.869, No.385),
24 known as the Public Works Contractors' Bond Law of 1967.
25 "Guaranteed energy savings contract." A contract for the
26 evaluation and recommendation of energy conservation measures
27 and for implementation of one or more such measures.
28 "Qualified provider." A person or business experienced in <--
29 the design, implementation and installation of energy
30 conservation measures. WHICH IS RESPONSIBLE AND CAPABLE OF <--
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1 EVALUATING, RECOMMENDING, DESIGNING, IMPLEMENTING AND INSTALLING
2 ENERGY CONSERVATION MEASURES AS DETERMINED BY THE GOVERNMENTAL
3 UNIT.
4 "Request for proposals (RFP)." A negotiated TYPE OF <--
5 COMPETITIVE procurement.
6 Section 3. Contracting procedures.
7 (a) General rule.--Notwithstanding any other contrary or
8 inconsistent provision of law, a governmental unit may enter
9 into a guaranteed energy savings contract with a qualified
10 provider in accordance with the provisions of this act OR IN <--
11 ACCORDANCE WITH ANOTHER STATUTORILY AUTHORIZED COMPETITIVE
12 PROCESS.
13 (b) Guaranteed contract.--If, in accordance with applicable
14 law, the award of a contract by a governmental unit requires
15 action at a public meeting, a governmental unit may award a
16 guaranteed energy savings contract at a public meeting if it has
17 provided public notice in the manner prescribed by the act of
18 July 3, 1986 (P.L.388, No.84), known as the Sunshine Act, the
19 notice including the names of the parties to the contract and
20 the purpose of the contract.
21 (c) Request for proposals.--Before entering into a
22 guaranteed energy savings contract under this section, a
23 governmental unit shall issue a request for proposals. The
24 governmental unit shall evaluate any proposal THAT MEETS THE <--
25 REQUIREMENTS OF THE GOVERNMENTAL UNIT AND IS timely submitted by
26 a qualified provider. The RFP shall be announced through a
27 public notice from the governmental unit which will administer
28 the program., requesting innovative solutions and proposals for <--
29 energy conservation measures. The request for proposal shall
30 include all of the following:
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1 (1) The name and address of the governmental unit.
2 (2) The name, address, title and phone number of a
3 contact person.
4 (3) Notice indicating that the governmental unit is
5 requesting qualified providers to propose energy conservation
6 measures through a guaranteed energy savings contract.
7 (4) The date, time and place where proposals must be
8 received.
9 (5) The evaluation criteria for assessing the proposals. <--
10 INFORMATION TO BE INCLUDED IN THE PROPOSAL. <--
11 (6) Any other stipulations and clarifications the
12 governmental unit may require.
13 (d) Selection and notice.--The governmental unit shall
14 select the qualified provider that best meets the needs of the
15 governmental unit. The governmental unit shall provide public <--
16 notice of the meeting at which it proposes to award a guaranteed
17 energy savings contract of the names of the parties to the
18 proposed contract and of the purpose of the contract. The public
19 IN ACCORDANCE WITH CRITERIA ESTABLISHED BY THE GOVERNMENTAL <--
20 UNIT. FOR GOVERNMENTAL UNITS THAT ARE NOT REQUIRED TO TAKE
21 ACTIONS ON CONTRACTS AT PUBLIC MEETINGS, THE GOVERNMENTAL UNIT
22 SHALL PROVIDE PUBLIC NOTICE OF THE AWARD OF THE GUARANTEED
23 ENERGY SAVINGS CONTRACT WITHIN 30 DAYS IN THE PENNSYLVANIA
24 BULLETIN. FOR GOVERNMENTAL UNITS THAT ARE REQUIRED TO TAKE
25 ACTIONS ON CONTRACTS AT PUBLIC MEETINGS, THE PUBLIC notice shall
26 be made at least ten days prior to the meeting. After reviewing
27 the proposals pursuant to subsection (e), a governmental unit
28 may enter into a guaranteed energy savings contract with a
29 qualified provider if it finds that the amount it would spend on
30 the energy conservation measures recommended in the proposal
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1 would not exceed the amount to be saved in both energy and
2 operational costs within a ten-year period from the date of
3 installation, if the recommendations in the proposal were
4 followed and the qualified provider provides a written guarantee
5 that the energy or operating cost savings will meet or exceed
6 the cost of the contract.
7 (e) Report.--
8 (1) Before the award of a guaranteed energy savings
9 contract, the qualified provider shall issue PROVIDE a report <--
10 AS PART OF ITS PROPOSAL which shall be available for public <--
11 inspection summarizing estimates of all costs of
12 installation, maintenance, repairs and debt service, and
13 estimates of the amounts by which energy or operating costs
14 will be reduced.
15 (2) The report shall contain a listing of contractors
16 and subcontractors to be used by the qualified provider with
17 respect to the energy conservation measures.
18 (f) Bond.--A qualified provider to whom a contract is
19 awarded shall give a sufficient bond to the governmental unit
20 for its faithful performance in accordance with the act of
21 December 20, 1967 (P.L.869, No.385), known as the Public Works
22 Contractors' Bond Law of 1967.
23 (g) Award of contract.--The award of a contract to a <--
24 qualified provider under this section shall be made on the basis
25 of the best interest of the governmental unit. Notwithstanding
26 any other provision of law governing the letting of public
27 contracts, a governmental unit may engage in direct or sole <--
28 source negotiations with any qualified provider concerning a
29 potential guaranteed energy savings contract to be offered to a
30 governmental unit and awarded in accordance with the provisions
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1 of this act. ENTER INTO A SINGLE GUARANTEED ENERGY SAVINGS <--
2 CONTRACT WITH EACH RESPONSIBLE PROVIDER SELECTED THROUGH THE
3 REQUEST FOR PROPOSALS PROCESS IN ACCORDANCE WITH THE PROVISIONS
4 OF THIS ACT.
5 Section 4. Contract provisions.
6 (a) General rule.--A guaranteed energy savings contract may
7 provide that all payments, except obligations on termination of
8 the contract before its scheduled expiration, shall be made over
9 a period of time. Every guaranteed energy savings contract shall
10 provide that the savings in any year are guaranteed to the
11 extent necessary to make payments under the contract during that
12 year.
13 (b) Written guarantee.--A guaranteed energy savings contract
14 shall include a written guarantee that savings will meet or
15 exceed the cost of the energy conservation measures to be
16 EVALUATED, RECOMMENDED, DESIGNED, IMPLEMENTED OR installed under <--
17 the contract.
18 (c) Payments.--A guaranteed energy savings contract may
19 provide for payments over a period of time, not to exceed ten
20 years, and for the purchase EVALUATION, RECOMMENDATION, DESIGN, <--
21 IMPLEMENTATION and installation of energy conservation measures
22 on an installment payment or lease purchase basis.
23 Section 5. Funding.
24 (a) General rule.--A guaranteed energy savings contract may <--
25 extend beyond the fiscal year of the governmental unit during
26 which it becomes effective. If in any later fiscal year during
27 the term of the contract the governmental unit terminates the
28 contract because of its failure to receive in its annual
29 appropriations amounts payable under the contract during that
30 year, the governmental unit, upon termination of the contract
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1 for failure to receive sufficient appropriations, shall
2 reimburse the contractor for the unamortized portion of the
3 costs of energy savings measures undertaken pursuant to the
4 contract. GUARANTEED ENERGY SAVINGS CONTRACTS WHICH HAVE TERMS <--
5 WHICH EXTEND BEYOND ONE FISCAL YEAR OF THE GOVERNMENTAL UNIT
6 MUST INCLUDE A PROVISION WHICH ALLOWS THE GOVERNMENTAL UNIT TO
7 TERMINATE THE CONTRACT IF, IN ANY FISCAL YEAR DURING THE TERM OF
8 THE CONTRACT, THE GOVERNMENTAL UNIT DOES NOT RECEIVE SUFFICIENT
9 FUNDS IN ITS ANNUAL APPROPRIATIONS TO MAKE THE PAYMENTS REQUIRED
10 UNDER THE CONTRACT.
11 (b) Funds.--A political subdivision or public <--
12 instrumentality GOVERNMENTAL UNIT may use funds designated for <--
13 operating, UTILITIES or capital expenditures for any guaranteed <--
14 energy savings contract, including, without limitation, for
15 purchases on an installment payment or lease purchase basis.
16 (c) Grants, subsidies or other payments.--Grants, subsidies
17 or other payments from the Commonwealth to a governmental unit
18 shall not be reduced as a result of energy savings obtained as a
19 result of a guaranteed energy savings contract during the life
20 of the contract.
21 Section 6. Commonwealth contracts.
22 In connection with the letting of any guaranteed energy
23 savings contract for the Commonwealth under this act, the
24 Department of General Services shall have the power to waive the
25 process for selection of architects or engineers otherwise
26 prescribed under section 2402.1(19) 2401.1(19) of the act of <--
27 April 9, 1929 (P.L.177, No.175), known as The Administrative
28 Code of 1929. In exercising its discretion under this section,
29 the Department of General Services shall consider the best
30 interests of this Commonwealth and any relevant circumstances
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1 peculiar to the proposed contract.
2 Section 7. Reporting.
3 All contracts awarded by a governmental unit under this act
4 shall be reported to the Pennsylvania Energy Office DEPARTMENT <--
5 OF ENVIRONMENTAL PROTECTION. The Pennsylvania Energy Office <--
6 DEPARTMENT OF ENVIRONMENTAL PROTECTION shall provide timely <--
7 advice and assistance to any governmental unit seeking to
8 evaluate any estimate of the amount by which energy costs of the
9 governmental unit will be reduced by a guaranteed energy savings
10 contract proposed by a qualified provider.
11 Section 8. Construction.
12 This act shall not be construed to abrogate any duty to
13 comply with prevailing wage or residency requirements contained
14 in any other act or part thereof.
15 Section 9. Repeals.
16 All acts and parts of acts are repealed insofar as they are
17 inconsistent with this act.
18 Section 10. Effective date.
19 This act shall take effect immediately.
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