GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 1213*

Short Title:  Sunset/Term of Energy Savings Contracts.   	(Public)

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Sponsors: Representative Rogers.

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Referred to:  Ways and Means.

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April 15, 1999

A BILL TO BE ENTITLED
AN ACT TO REPEAL THE SUNSET REGARDING THE AUTHORITY OF LOCAL GOVERNMENTAL UNITS TO ENTER INTO GUARANTEED ENERGY SAVINGS CONTRACTS FOR LOCAL PUBLIC FACILITIES AND TO EXTEND THE CURRENT MAXIMUM DURATION OF THESE CONTRACTS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 143-64.17(1) reads as rewritten:
"(1)	‘Energy conservation measure' means a facility alteration, or training or services related to the operation of the facility, when the alteration, training, or services provide anticipated energy savings.  Energy conservation measure includes any of the following:
a.	Insulation of the building structure and systems within the building.
b.	Storm windows or doors, caulking, weatherstripping, multiglazed windows or doors, heat-absorbing or heat-reflective glazed or coated window or door systems, additional glazing, reductions in glass area, or other window or door system modifications that reduce energy consumption.
c.	Automatic energy control systems.
d.	Heating, ventilating, or air-conditioning system modifications or replacements.
e.	Replacement or modification of lighting fixtures to increase the energy efficiency of a lighting system without increasing the overall illumination of a facility, unless an increase in illumination is necessary to conform to the applicable State or local building code or is required by the light system after the proposed modifications are made.
f.	Energy recovery systems.
g.	Cogeneration systems that produce steam or forms of energy such as heat, as well as electricity, for use primarily within a building or complex of buildings.
h.	Other energy conservation measures."
Section 2.  G.S. 143-64.17(2) reads as rewritten:
"(2)	‘Energy savings' means a measured reduction in fuel costs, energy costs, or operating costs created from the implementation of one or more energy conservation measures when compared with an established baseline of previous fuel costs, energy costs, or operating costs developed by the local governmental unit."
Section 3.  G.S. 143-64.17B reads as rewritten:
"§ 143-64.17B.  Guaranteed energy savings contracts.
(a)	A local governmental unit may enter into a guaranteed energy savings contract with a qualified provider if all of the following apply:
(1)	The term of the contract does not exceed two-thirds of the anticipated remaining useful life of the facility after the installation or commencement of the energy conservation measures provided for under the contract or 25 years, whichever is less.
(2)	The local governmental unit finds that the energy savings resulting from the performance of the contract will equal or exceed the total cost of the contract.
(3)	The energy conservation measures to be installed under the contract are for an existing building.
(b)	Before entering into a guaranteed energy savings contract, the local governmental unit shall provide published notice of the meeting at which it proposes to award the contract, the names of the parties to the proposed contract, and the contract's purpose. The notice must be published at least 15 days before the date of the meeting.
(c)	A qualified provider entering into a guaranteed energy savings contract under this Part shall provide a bond to the local governmental unit in the amount equal to one hundred percent (100%) of the total cost 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 local governmental unit have not been made, the local governmental unit may terminate the contract without incurring any additional obligation to the qualified provider.
(d)	As used in this section, ‘total cost' shall include, but not be limited to, costs of construction, costs of financing, and costs of maintenance and training during the term of the contract. ‘Total cost' does not include any obligations on termination of the contract before its expiration, provided that those obligations are disclosed when the contract is executed.
(e)	A guaranteed energy savings contract may not require the local governmental unit to purchase a maintenance contract or other maintenance agreement from the qualified provider who installs energy conservation measures under the contract if the local unit of government takes appropriate action to budget for its own forces or another provider to maintain new systems installed and existing systems affected by the guaranteed energy savings contract, in accordance with manufacturer's standards or other reasonable standards specifically provided in the guaranteed energy savings contract."
Section 4.  Section 10 of Chapter 775 of the 1993 Session Laws, as amended by Section 3 of Chapter 295 of the 1995 Session Laws, reads as rewritten:
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Section 5.  Sections 1 through 3 of this act become effective July 1, 1999, and apply to contracts entered into on or after that date.  The remaining sections of this act are effective upon ratification.