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 3241
Senate Bill 952
Sponsored by Senator AVAKIAN
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 as
introduced.
Requires authorized state agencies to meet LEED Green Building
Rating System standards and energy reduction mandates set forth
in State Department of Energy rules for renovations to state
facilities.
Requires authorized state agencies to conduct study by January
1, 2009, to determine feasibility of energy savings performance
contracts as method of meeting energy use reduction targets in
state facilities. Requires authorized state agencies to issue
requests for proposals for renovations by September 30, 2009, if
energy savings performance contract for renovation is feasible.
Requires authorized state agency to adopt rules to prequalify
persons that desire to submit proposals for renovations.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to energy use by state agencies; creating new
provisions; amending ORS 276.905 and 276.915; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. 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 - } { + that + } use
a renewable resource and are environmentally sound.
(2) 'Authorized state agency' means { - any - } { + a + }
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 - } { + the + } life
cycle { + of the energy resource, facility or conservation
measure + }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. { + A + } cost comparison { - shall - }
{ + between delivered power costs and the incremental cost of
an energy resource, facility or conservation measure must + }
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 systems' means all utilities, including but not
limited to heating, air conditioning, ventilating, lighting and
the supply of domestic hot water.
{ + (7) 'Facility' means a building owned by the state or
occupied by or under the control of an authorized state agency.
(8) 'LEED Green Building Rating System' means the Leadership in
Energy and Environmental Design rating system developed and
adopted by the United States Green Building Council for
measuring, evaluating and certifying a building's energy and
environmental performance. + }
{ - (7) - } { + (9) + } 'Major facility' means any
state-owned building having 10,000 square feet or more of usable
floor space.
{ - (8) - } { + (10) + } 'Renovation' means any addition
to, alteration of or repair of a facility { - which will
involve - } { + that involves + } 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 2. 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 { + and that the construction or renovation
contributes to the authorized state agency's meeting the mandates
set forth in rules adopted by the State Department of Energy
under subsection (3)(e) of this section + }. 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 licensed architect. 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 - }
{ + the department's + } review of energy consumption analyses
and facility designs and { - its - } { + the department's + }
reporting tasks. Such fees imposed { - shall - } { + may + }
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) Require an authorized state agency to { + :
(A) + } Reduce { + by June 30, 2020, + } the amount of use of
nonrenewable energy by at least { - 10 - } { + 20 + } percent
from the amount used by the { + authorized + } state agency in
the 2000 calendar year { - . The State Department of Energy
shall - } { + ; and + }
{ + (B) Establish standards for measuring, evaluating and
certifying a facility's energy and environmental performance that
are equivalent to or more stringent than LEED Green Building
Rating System standards and require the authorized state agency
to meet the established standards in constructing or renovating a
facility.
(f) + } Require state agencies that fail to achieve and
maintain a { - 10-percent - } { + 20 percent + } reduction on
and after June 30, { - 2003 - } { + 2020 + }, 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.
(4) 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.
SECTION 3. { + As used in sections 3 to 6 of this 2007 Act:
(1) 'Authorized state agency' has the meaning given that term
in ORS 276.905.
(2) 'Energy conservation measure' has the meaning given that
term in ORS 276.905.
(3) 'Energy savings performance contract' has the meaning given
that term in ORS 279A.010.
(4) 'Energy use reduction target' means a specific goal for
reducing consumption of nonrenewable energy resources in a
facility, expressed as a percentage reduction from energy
consumption in the facility during the year 2000.
(5) 'Facility' has the meaning given that term in ORS 276.905.
(6) 'Renovation' has the meaning given that term in ORS
276.905. + }
SECTION 4. { + Each authorized state agency shall conduct a
study by January 1, 2009, to determine the feasibility of using
energy savings performance contracts to finance renovations to
the authorized state agency's facilities. For purposes of this
section, an energy savings performance contract is feasible if
the contract will provide one or more of the following benefits
to the authorized state agency:
(1) The contract will help to reduce the need for an outlay of
public funds to finance the anticipated renovations. The study
may investigate the degree to which cost reimbursement pricing
mechanisms, phased project implementation and energy cost savings
may combine to reduce expenditures of public funds for
renovations.
(2) The contract will include an energy savings guarantee that
the reduction in energy consumption resulting from the renovation
will amount to 20 percent or more.
(3) The contract will enable the authorized state agency to
finance the cost of energy conservation measures installed in or
added to a facility during the renovation through energy savings
realized over the life cycle of the energy conservation measure.
(4) The contract will enable the authorized state agency to
meet or contribute significantly to the authorized state agency's
ability to meet an energy use reduction target of at least 20
percent.
(5) The contract reasonably may be anticipated to bring the
authorized state agency other benefits required by the model
rules adopted under ORS 279A.065 for energy savings performance
contracts. + }
SECTION 5. { + (1) Each authorized state agency shall issue a
request for proposals by September 30, 2009, for renovations to
one or more of the authorized state agency's existing facilities,
the combined effect of which will enable the authorized state
agency to meet an energy use reduction target of 20 percent by
June 30, 2020.
(2) Notwithstanding subsection (1) of this section, an
authorized state agency shall issue a request for proposals by
September 30, 2009, only in those instances when a study
conducted under section 4 of this 2007 Act has determined that
the authorized state agency may renovate a facility under the
terms of a feasible energy savings performance contract. + }
SECTION 6. { + (1) An authorized state agency by rule shall
prequalify persons that desire to submit proposals for
renovations conducted under ORS 276.900 to 276.915.
(2) Notwithstanding the requirement under ORS 279C.430 (2) that
the authorized state agency make a determination as to whether a
person is qualified only under applicable standards of
responsibility listed in ORS 279C.375 (3)(b), in determining a
person's qualifications for submitting a proposal in response to
a request for proposals issued under section 5 of this 2007 Act,
an authorized state agency may also make a determination on the
basis of the following criteria:
(a) The person must have experience with energy savings
performance contracts and must have the technical expertise
necessary to perform all elements and phases of work under an
energy savings performance contract;
(b) The person is not disqualified under ORS 279C.440;
(c) The person does not have any civil judgments pending
against the person; and
(d) The person has paid the prevailing wage rate determined
under ORS 279C.800 to 279C.870 for all public works contracts to
which the person has been a party in this state and has agreed to
pay the prevailing wage rate under any energy savings performance
contract for a public works that results from a successful
proposal in response to a request for proposals issued under
section 5 of this 2007 Act. + }
SECTION 7. { + (1) Sections 3 to 6 of this 2007 Act and the
amendments to ORS 276.905 and 276.915 by sections 1 and 2 of this
2007 Act apply to authorized state agencies on and after the
operative date of sections 3 to 6 of this 2007 Act.
(2) Sections 3 to 6 of this 2007 Act and the amendments to ORS
276.905 and 276.915 by sections 1 and 2 of this 2007 Act become
operative January 1, 2008.
(3) Notwithstanding subsection (1) of this section, sections 3
to 6 of this 2007 Act and the amendments to ORS 276.905 and
276.915 by sections 1 and 2 of this 2007 Act do not apply to
contracts first advertised or, if not advertised, entered into
before the operative date of sections 3 to 6 of this 2007
Act. + }
SECTION 8. { + This 2007 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2007 Act takes effect on its
passage. + }
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