GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
S 4
SENATE BILL 547
Commerce Committee Substitute Adopted 4/16/13
Finance Committee Substitute Adopted 5/1/13
House Committee Substitute Favorable 7/17/13
Short Title: Energy Savings Contracting Amendments. |
(Public) |
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Sponsors: |
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Referred to: |
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April 1, 2013
A BILL TO BE ENTITLED
AN ACT to amend the statutes governing guaranteed energy savings contracts for governmental units.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 143-64.17 reads as rewritten:
"§ 143-64.17. Definitions.
As used in this Part:
…
(5) "Qualified
provider" means a person or business experienced in the design,
implementation, and installation of energy conservation measures.measures
who has been prequalified by the State Energy Office according to the
prequalification criteria established by that Office.
(5a) "Qualified reviewer" means an architect or engineer who is (i) licensed in this State and (ii) experienced in the design, implementation, and installation of energy efficiency measures.
…."
SECTION 2. G.S. 143-64.17A reads as rewritten:
"§ 143-64.17A. Solicitation of guaranteed energy savings contracts.
(a) RFP
Issuance. - Before entering into a guaranteed energy savings contract, a
governmental unit shall issue a request for proposals. Notice of the request
shall be published at least 15 days in advance of the time specified for
opening of the proposals in at least one newspaper of general circulation in
the geographic area for which the local governmental unit is responsible or, in
the case of a State governmental unit, in which the facility or facilities are
located. No guaranteed energy savings contract shall be awarded by any
governmental unit unless at least two proposals have been received from qualified
providers. Provided that if after the publication of the notice of the request
for proposals, fewer than two proposals have been received from qualified
providers, or fewer than two qualified providers attend the mandatory prebid
meeting, the governmental unit shall again publish notice of the request
and if as a result of the second notice, one or more proposals by qualified
providers are received, the governmental unit may then open the proposals
and select a qualified provider even if only one proposal is received.
(b) Preliminary
Proposal Evaluation. - The governmental unit shall evaluate a sealed
proposal from any qualified provider. Proposals shall contain estimates of
all costs of installation, modification, or remodeling, including costs of
design, engineering, installation, maintenance, repairs, debt service, and
estimates of energy savings.A qualified reviewer shall be required to
evaluate the proposals and will provide the governmental unit with a letter
report containing both qualitative and quantitative evaluation of the
proposals. The report may include a recommendation for selection, but the
governmental unit is not obligated to follow it.
(c) Receipt of
Proposals for Unit of Local Government. - In the case of a local governmental
unit, proposals received pursuant to this section shall be opened by a member
or an employee of the governing body of the local governmental unit at a public
opening at which the contents of the proposals shall be announced and recorded
in the minutes of the governing body. Proposals shall be evaluated for the
local governmental unit by a licensed architect or engineer a
qualified reviewer on the basis of:
(1) The information required in subsection (b) of this section; and
(2) The criteria stated in the request for proposals.
The local governmental unit may require a qualified provider to
include in calculating the cost of a proposal for a guaranteed energy savings
contract any reasonable fee payable by the local governmental unit for the evaluation
of the proposal by a licensed architect or professional engineerqualified
reviewer not employed as a member of the staff of the local governmental
unit or the qualified provider.
(c1) Receipt of Proposals
for Unit of State Government. - In the case of a State governmental unit,
proposals received pursuant to this section shall be opened by a member or an
employee of the State governmental unit at a public opening and the contents of
the proposals shall be announced at this opening. Proposals shall be evaluated
for the State governmental unit by a licensed architect or engineerby
a qualified reviewer who is either privately retained, employed with the
Department of Administration, or employed as a member of the staff of the State
governmental unit. The proposal shall be evaluated on the basis of the
information and report required in subsection (b) of this section and
the criteria stated in the request for proposals.
The State governmental unit shall require a qualified
provider to include in calculating the cost of a proposal for a guaranteed
energy savings contract any reasonable fee payable by the State governmental
unit for evaluation of the proposal by a licensed architect or professional
engineerby a qualified reviewer not employed as a member of the
staff of the State governmental unit or the qualified provider. The Department
of Administration may charge the State governmental unit a reasonable fee for
the evaluation of the proposal if the Department's services are used for the
evaluation and the cost paid by the State governmental unit to the Department
of Administration shall be calculated in the cost of the proposal under this
subsection.
(d) Criteria for
Selection of Provider. - The governmental unit shall select the qualified provider
that it determines to best meet the needs of the governmental unit by
evaluating all of the following:following and following the
procedures set forth in subsection (d1) of this section:
(1) Prices
offered.
(2) Proposed
costs of construction, financing, maintenance, and training.
(3) Quality of the products and energy conservation measures proposed.
(4) Amount
of energy savings.
(5) General reputation and performance capabilities of the qualified providers.
(6) Substantial conformity with the specifications and other conditions set forth in the request for proposals.
(7) Time specified in the proposals for the performance of the contract.
(8) Any other factors the governmental unit deems necessary, which factors shall be made a matter of record.
(d1) Process for Selection of Provider. - The governmental unit shall select a short list of finalists on the basis of its rankings of the written proposals under the criteria set forth in subsection (d) of this section as well as references from past clients. The governmental unit shall have the highest ranked qualified provider prepare a cost-savings analysis for the proposed contract showing at a minimum a comparison of the total estimated project savings to the total estimated project costs for the proposed term. If the governmental unit and the qualified provider cannot negotiate acceptable terms, pricing, and savings estimates, the governmental unit may terminate the process and begin negotiations with the second highest ranked qualified provider. The State Energy Office shall review the selected qualified provider's proposal, cost-benefit analysis, and other relevant documents prior to the governmental unit announcing the award.
(e) Nothing in this section shall limit the authority of governmental units as set forth in Article 3D of this Chapter."
SECTION 3. G.S. 143-64.17B reads as rewritten:
"§ 143-64.17B. Guaranteed energy savings contracts.
…
(c) A qualified
provider entering into a guaranteed energy savings contract under this Part
shall provide security to the governmental unit in the form acceptable to the
Office of the State Treasurer and in an amount equal to one hundred percent
(100%) of the total cost guaranteed savings for the term of the
guaranteed energy savings contract to assure the provider's faithful
performance. Any bonds required by this subsection shall be subject to the
provisions of Article 3 of Chapter 44A of the General Statutes. If the savings
resulting from a guaranteed energy savings contract are not as great as
projected under the contract and all required shortfall payments to the
governmental unit have not been made, the governmental unit may terminate the
contract without incurring any additional obligation to the qualified provider.
…
(g) In the case
of a State governmental unit, aA qualified provider shall provide an
annual reconciliation statement based upon the results of the measurement and
verification review. The statement shall disclose any shortfalls or surplus
between guaranteed energy and operational savings specified in the guaranteed
energy savings contract and actual, not stipulated, energy and operational
savings incurred during a given guarantee year. Any guaranteed energy and
operational savings shall be determined by using one of the measurement and
verification methodologies listed in the United States Department of Energy's
Measurement and Verification Guidelines for Energy Savings Performance
Contracting, the International Performance Measurement and Verification
Protocol (IPMVP) maintained by the Efficiency Valuation Organization, or
Guideline 14-2002 of the American Society of Heating, Refrigerating, and Air-Conditioning
Engineers. If due to existing data limitations or the nonconformance of
specific project characteristics, none of the three methodologies listed in
this subsection is sufficient for measuring guaranteed savings, the qualified provider
shall develop an alternate method that is compatible with one of the three
methodologies and mutually agreeable to the governmental unit. The
guarantee year shall consist of a 12-month term commencing from the time that
the energy conservation measures become fully operational. A qualified provider
shall pay the State governmental unit or its assignee any
shortfall in the guaranteed energy and operational savings after the total year
savings have been determined. A In the case of a governmental unit, a
surplus in any one year shall not be carried forward or applied to a
shortfall in any other year."
SECTION 4.(a) G.S. 143-64.17L(e) reads as rewritten:
"(e) The Board of Governors may authorize North Carolina State University and the University of North Carolina at Charlotte to implement an energy conservation measure without entering into a guaranteed energy savings contract pursuant to this section."
SECTION 4.(b) G.S. 142-63 reads as rewritten:
"§ 142-63. Authorization of financing contract.
Subject to the terms and conditions set forth in this Article, (i) a State governmental unit that is implementing an energy conservation measure pursuant to G.S. 143-64.17L and financing it pursuant to this Article, (ii) a State governmental unit that has solicited a guaranteed energy conservation measure pursuant to G.S. 143-64.17A or G.S. 143-64.17B, or (iii) the State Treasurer, as designated by the Council of State, is authorized to execute and deliver, for and on behalf of the State of North Carolina, a financing contract to finance the costs of the energy conservation measure. The aggregate outstanding amount payable by the State under financing contracts entered pursuant to this Article shall not exceed five hundred million dollars ($500,000,000) at any one time.
Subject to the terms and conditions set forth in this
Article, a State governmental unit that has solicited a guaranteed energy
conservation measure pursuant to G.S. 143-64.17A or G.S. 143-64.17B
or the State Treasurer, as designated by the Council of State, is authorized to
execute and deliver, for and on behalf of the State of North Carolina, a
financing contract to finance the costs of the energy conservation measure. The
aggregate outstanding amount payable by the State under financing contracts
entered pursuant to this Article shall not exceed five hundred million dollars
($500,000,000) at any one time."
SECTION 5. This act is effective when it becomes law.