74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 2196
 
                           A-Engrossed
 
                         House Bill 2876
                   Ordered by the House May 2
             Including House Amendments dated May 2
 
Sponsored by Representative WITT; Representatives BONAMICI,
  BRUUN, DALLUM, JENSON, MACPHERSON, SCHAUFLER, SHIELDS, TOMEI
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
    { - Directs State Department of Energy to investigate means
to reduce energy consumption in state-owned or state-funded
buildings and school district buildings. - }
    { - Requires department to prepare plan for submission to
Governor for making state-owned or state-funded buildings and
school district buildings more energy efficient and installing
renewable energy systems. - }
    { - Directs department to encourage public bodies and
municipal corporations to apply for funding to implement energy
efficiency and renewable energy projects. - }
    { - Expands definition of 'eligible state agency' to include
all public bodies for purposes of statutes relating to small
scale local energy projects. - }
   { +  Requires state agency authorized to finance construction,
purchase or renovation of structures used by state to reduce by
June 30, 2015, amount of energy agency uses in facility by 20
percent from amount agency used in 2000. Requires agency to
prepare plan for meeting energy reduction requirement and to
report periodically to State Department of Energy concerning
energy use. Requires agency that fails to meet 20-percent energy
reduction requirement on and after June 30, 2015, to submit
biennial energy conservation plans to department.
  Requires department to prequalify prospective bidders or
proposers to submit bids or proposals for certain services
related to energy as options for agency to evaluate for meeting
energy reduction requirement. + }
 
                        A BILL FOR AN ACT
Relating to energy projects; amending ORS 276.900, 276.905 and
  276.915.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 276.900 is amended to read:
  276.900. It is the policy of the State of Oregon that
facilities to be constructed or purchased by authorized state
agencies be designed, constructed, renovated and operated so as
to minimize the use of   { - nonrenewable - }  energy resources
and to serve as models of energy efficiency.
  SECTION 2. ORS 276.905 is amended to read:
  276.905. As used in ORS 276.900 to 276.915, unless the context
requires otherwise:
  (1) 'Alternative energy system' means solar, wind, geothermal,
heat recovery or other systems which use a renewable resource and
are environmentally sound.
  (2) 'Authorized state agency' means any state agency, board,
commission, department or division that is authorized to finance
the construction, purchase or renovation of buildings or other
structures to be used by the State of Oregon.
  (3) 'Cost-effective' means that an energy resource, facility or
conservation measure during its life cycle results in delivered
power costs to the ultimate consumer no greater than the
comparable incremental cost of the least cost alternative new
energy resource, facility or conservation measure. Cost
comparison shall include, but need not be limited to:
  (a) Cost escalations and future availability of fuels;
  (b) Waste disposal and decommissioning costs;
  (c) Transmission and distribution costs;
  (d) Geographic, climatic and other differences in the state;
and
  (e) Environmental impact.
  (4) 'Energy conservation measure' means a measure primarily
designed to reduce the use of   { - nonrenewable - }  energy
resources in a state-owned facility.
  (5) 'Energy consumption analysis' means the evaluation of all
energy systems and components by demand and type of energy
including the internal energy load imposed on a major facility by
its occupants, equipment and components and the external energy
load imposed on a major facility by the climatic conditions of
its location. 'Energy consumption analysis' includes, but is not
limited to:
  (a) The comparison of a range of alternatives that is likely to
include all reasonable, cost-effective energy conservation
measures and alternative energy systems;
  (b) The simulation of each system over the entire range of
operation of a major facility for a year's operating period;
  (c) The evaluation of energy consumption of component equipment
in each system considering the operation of such components at
other than full or rated outputs; and
  (d) The consideration of alternative energy systems.
   { +  (6) 'Energy savings performance contract' has the meaning
given that term in ORS 279A.010. + }
    { - (6) - }  { +  (7) + } 'Energy systems' means all
utilities, including but not limited to heating, air
conditioning, ventilating, lighting and the supply of domestic
hot water.
    { - (7) - }  { +  (8) + } 'Major facility' means any
state-owned building having 10,000 square feet or more of usable
floor space.
    { - (8) - }  { +  (9) + } 'Renovation' means any addition to,
alteration of or repair of a facility which will involve addition
to or alteration of the facility's energy systems, provided that
the affected energy systems account for 50 percent or more of the
facility's total energy use.
  SECTION 3. ORS 276.915 is amended to read:
  276.915. (1) An authorized state agency may construct or
renovate a facility only if the authorized state agency
determines that the design incorporates all reasonable
cost-effective energy conservation measures and alternative
energy systems. The determination by the authorized state agency
shall include consideration of indoor air quality issues and
operation and maintenance costs.
  (2) Whenever an authorized state agency determines that any
major facility is to be constructed or renovated the agency shall
cause to be included in the design phase of the construction or
renovation a provision that requires an energy consumption
analysis identifying all reasonable cost-effective energy
conservation measures and alternative energy systems to be
prepared for the facility under the direction of a professional
engineer { + , + }   { - or - }  { +  a + } licensed
architect { +  or a person that is prequalified under subsection
(8) of this section + }. The authorized agency and the State
Department of Energy shall agree to the list of energy
conservation measures and alternative energy systems to be
analyzed. The analysis and facility design shall be delivered to
the State Department of Energy during the design development
phase of the facility design. The State Department of Energy
shall review the analysis and forward its findings to the
authorized state agency within 10 working days after receiving
the analysis, if practicable.
  (3) The State Department of Energy, in consultation with the
Oregon Department of Administrative Services and the Oregon
University System, shall adopt rules to carry out the provisions
of ORS 276.900 to 276.915. These rules shall:
  (a) Include a simplified and usable method for determining
which energy conservation measures and alternative energy systems
are cost-effective. The method shall reflect the energy costs of
the utility serving the facility.
  (b) Prescribe procedures for determining if a facility design
incorporates all reasonable cost-effective energy conservation
measures and alternative energy systems.
  (c) Establish fees through which an authorized state agency
will reimburse the State Department of Energy for its review of
energy consumption analyses and facility designs and its
reporting tasks. Such fees imposed shall not exceed 0.2 percent
of the capital construction cost of the facility. The fees shall
be included in the energy consumption analysis required in
subsection (2) of this section. The State Department of Energy
may provide for a waiver of fees and reviews if the authorized
state agency demonstrates that the facility will be designed and
constructed in a manner that incorporates only cost-effective
energy conservation measures or in a manner that exceeds the
energy conservation provisions of the state building code by 20
percent or more.
  (d) Periodically define highly efficient facilities. A facility
constructed or renovated after June 30, 2001, shall exceed the
energy conservation provisions of the state building code by 20
percent or more, unless otherwise required by rules adopted under
this section.
   { +  (e) Establish guidelines for preparing the plan required
under subsection (5) of this section. + }
    { - (e) - }  { +  (4) + }   { - Require an authorized state
agency to - }  { +  An authorized state agency by June 30, 2015,
shall + } reduce the amount of   { - use of nonrenewable - }
energy { +  the authorized state agency uses in a facility + } by
at least   { - 10 - }  { +  20 + } percent from the amount
 { - used by the state agency - }  { +  the authorized state
agency used + } in the 2000 calendar year.
   { +  (5) An authorized state agency by January 1, 2009, shall
prepare a plan for meeting the requirement of subsection (4) of
this section. The plan shall:
  (a) Establish a timeline, with interim goals, for meeting the
requirement set forth in subsection (4) of this section; and
  (b) Evaluate options for meeting the requirement set forth in
subsection (4) of this section. Options in the plan may include,
but are not limited to:
  (A) Energy audits;
  (B) Energy management services and control systems;
  (C) Capital improvements;
  (D) Operations and maintenance procedures;
  (E) Building commissioning; and
  (F) Energy savings performance contracts.
  (6) An authorized state agency shall report periodically to the
State Department of Energy concerning energy use in the
authorized state agency's facilities. The State Department of
Energy shall specify the form, content and frequency of the
reports.
  (7) + }   { - The State Department of Energy shall require
state agencies - }  { +  An authorized state agency + } that
 { - fail - }  { +  fails + } to achieve and maintain a
10-percent reduction { +  in energy use + } on and after June 30,
2003, { +  or a 20-percent reduction in energy use on and after
June 30, 2015, shall + }   { - to - }  submit biennial energy
conservation plans to the State Department of Energy. The State
Department of Energy shall specify the form and content of the
energy conservation plans.
   { +  (8) The State Department of Energy shall prequalify
prospective bidders or proposers to submit bids or proposals for
energy audits, energy management, building commissioning, energy
savings performance contracts or related services described in
subsection (5) of this section as options for an authorized state
agency to evaluate for meeting the requirement set forth in
subsection (4) of this section.
  (9) The State Department of Energy may recover from authorized
state agencies the costs associated with administering the
provisions of this section, including costs associated with
adopting rules, maintaining a state energy use database,
prequalifying bidders or proposers under subsection (8) of this
section and providing assistance with and review of plans
required under subsection (5) of this section. + }
    { - (4) - }  { +  (10) + } The State Department of Energy,
the Oregon Department of Administrative Services and the Oregon
University System shall jointly prepare a biennial report
summarizing the progress toward achieving the goals of this
section. The biennial report shall be made available to the
public.
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