HB 1033-1_ Filed 04/27/2009, 18:48
CONFERENCE COMMITTEE REPORT
DIGEST FOR EHB 1033
Citations Affected: IC 4-13.6-8-7; IC 8-1-8.8-14; IC 15-11-2-3; IC 36-1.
Synopsis: Renewable energy and energy savings contracts. Proposed conference committee
report for EHB 1033. Requires the state utility forecasting group, in formulating suggestions
concerning renewable energy resources for inclusion in its annual report, to evaluate potential
renewable energy generation opportunities from biomass and algae production systems. Requires
the department of agriculture, in its administration of economic development efforts for
agriculture, to facilitate the use of biomass and algae production systems to generate renewable
energy. Provides that the maximum term of a guaranteed energy cost savings contract or utility
efficiency program is 20 years. (Current law provides for maximum terms of 10 and 15 years,
respectively.) Amends the statute governing local public works projects to provide that a political
subdivision or its agencies may: (1) participate in a utility efficiency program; (2) enter into a
guaranteed savings contract; and (3) enter into a design-build contract instead of awarding a
public works contract. Provides that the term "conservation measure" includes the installation
of insulation in a political subdivision's facility. (Under current law, installing insulation is a
"conservation measure" only if the insulation is installed in a school facility.) (This conference
committee report: Changes the title of the act from energy to state and local
administration; removes the requirement that the state utility forecasting group consider
information provided by the federal AgSTAR program; includes algae production systems
as a potential source of renewable energy; and inserts the contents of EHB 1254 as printed
April 10, 2009, as follows: Provides that the maximum term of a guaranteed energy cost
savings contract or utility efficiency program is 20 years. (Current law provides for
maximum terms of 10 and 15 years, respectively.) Amends the statute governing local
public works projects to state that a political subdivision or its agencies may: (1)
participate in a utility efficiency program; (2) enter into a guaranteed savings contract; and
(3) enter into a design-build contract instead of awarding a public works contract. Provides
that "conservation measure" includes installation of insulation in a political subdivision's
facility. (Under current law, installing insulation is a "conservation measure" only if the
insulation is installed in school facilities.))
Effective: July 1, 2009.
Text Box
Adopted Rejected
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CONFERENCE COMMITTEE REPORT
MR. SPEAKER:
Your Conference Committee appointed to confer with a like committee from the Senate
upon Engrossed Senate Amendments to Engrossed House Bill No. 1033 respectfully reports
that said two committees have conferred and agreed as follows to wit:
that the House recede from its dissent from all Senate amendments and that
the House now concur in all Senate amendments to the bill and that the bill
be further amended as follows:
Delete the title and insert the following:
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
Delete everything after the enacting clause and insert the following:
SOURCE: IC 4-13.6-8-7; (09)CC103305.1. -->
SECTION 1. IC 4-13.6-8-7 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 7. (a) After reviewing
the proposals submitted and after receiving a recommendation from the
budget committee, the department may approve an energy cost savings
contract with a qualified provider that best meets the needs of the
governmental body if the department reasonably expects the cost of the
qualified energy savings project recommended in the proposal would
not exceed the amount to be saved in:
(1) energy costs;
(2) operational costs; or
(3) both energy and operational costs;
not later than ten (10) twenty (20) years after the date installation is
completed if the recommendations in the proposal are followed.
(b) An energy cost savings contract must include a guarantee from
the qualified provider to the state that:
(1) energy cost savings;
(2) operational cost savings; or
(3) both energy and operational cost savings;
will meet or exceed the cost of the qualified energy project not later
than ten (10) twenty (20) years after the date installation is completed.
SOURCE: IC 8-1-8.8-14; (09)CC103305.2. -->
SECTION 2. IC 8-1-8.8-14 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2009]: Sec. 14. The group shall
conduct an annual study on the use, availability, and economics of
using renewable energy resources in Indiana. Each year, the group shall
submit a report on the study to the commission for inclusion in the
commission's annual report to the regulatory flexibility committee
described in IC 8-1-2.5-9 and IC 8-1-2.6-4. The report must include
suggestions from the group to encourage the development and use of
renewable energy resources and technologies appropriate for use in
Indiana. In formulating the suggestions, the group shall evaluate
potential renewable energy generation opportunities from biomass
and algae production systems.
SOURCE: IC 15-11-2-3; (09)CC103305.3. -->
SECTION 3. IC 15-11-2-3, AS ADDED BY P.L.120-2008,
SECTION 27, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 3. The department shall do the following:
(1) Provide administrative and staff support for the following:
(A) The state fair board for purposes of carrying out the
director's duties under IC 15-13-5.
(B) The Indiana corn marketing council for purposes of
administering the duties of the director under IC 15-15-12.
(C) The Indiana organic peer review panel under IC 15-15-8.
(D) The Indiana dairy industry development board for
purposes of administering the duties of the director under
IC 15-18-5.
(E) The Indiana land resources council under IC 15-12-5.
(F) The Indiana grain buyers and warehouse licensing agency
under IC 26-3-7.
(G) The Indiana grain indemnity corporation under IC 26-4-3.
(H) The division.
(I) The E85 fueling station grant program under IC 15-11-11.
(2) Administer the election of state fair board members under
IC 15-13-5.
(3) Administer state programs and laws promoting agricultural
trade.
(4) Administer state livestock or agriculture marketing grant
programs.
(5) Administer economic development efforts for agriculture by
doing the following:
(A) Promoting value added agricultural resources.
(B) Marketing Indiana agriculture to businesses
internationally.
(C) Assisting Indiana agricultural businesses with developing
partnerships with the Indiana economic development
corporation.
(D) Soliciting private funding for selective economic
development and trade initiatives.
(E) Providing for the orderly economic development and
growth of Indiana's agricultural economy.
(F) Facilitating the use of biomass and algae production
systems to generate renewable energy.
SOURCE: IC 36-1-12-1; (09)CC103305.4. -->
SECTION 4. IC 36-1-12-1, AS AMENDED BY P.L.168-2006,
SECTION 2, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 1. (a) Except as provided in this section, this
chapter applies to all public work performed or contracted for by:
(1) political subdivisions; and
(2) their agencies;
regardless of whether it is performed on property owned or leased by
the political subdivision or agency.
(b) This chapter does not apply to an officer or agent who, on behalf
of a municipal utility, maintains, extends, and installs services of the
utility if the necessary work is done by the employees of the utility.
(c) This chapter does not apply to hospitals organized or operated
under IC 16-22-1 through IC 16-22-5 or IC 16-23-1, unless the public
work is financed in whole or in part with cumulative building fund
revenue.
(d) This chapter does not apply to tax exempt Indiana nonprofit
corporations leasing and operating a city market owned by a political
subdivision.
(e) As an alternative to this chapter, the governing body of a school
corporation political subdivision or its agencies may do the
following:
(1) Enter into a design-build contract as permitted under
IC 5-30.
(2) Participate in a utility efficiency program or may enter into a
guaranteed savings contract as permitted under IC 36-1-12.5.
(f) This chapter does not apply to a person that has entered into an
operating agreement with a political subdivision or an agency of a
political subdivision under IC 5-23.
SOURCE: IC 36-1-12.5-1; (09)CC103305.5. -->
SECTION 5. IC 36-1-12.5-1, AS AMENDED BY P.L.168-2006,
SECTION 5, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 1. (a) As used in this chapter, "conservation
measure":
(1) means:
(A) a
school facility alteration;
(B) an alteration of a structure (as defined in IC 36-1-10-2);
(C) a technology upgrade; or
(D) with respect to an installation described in subdivision
(2)(G) or (2)(H), an alteration of a structure or system;
designed to provide billable revenue increases or reduce energy
or water consumption costs, wastewater costs, or other operating
costs; and
(2) includes the following:
(A) Providing insulation of the
school facility or structure and
systems in the
school facility or structure.
(B) Installing or providing for window and door systems,
including:
(i) storm windows and storm doors;
(ii) caulking or weatherstripping;
(iii) multi-glazed windows and doors;
(iv) heat absorbing or heat reflective glazed and coated
windows and doors;
(v) additional glazing;
(vi) the reduction in glass area; and
(vii) other modifications that reduce energy consumption.
(C) Installing automatic energy control systems.
(D) Modifying or replacing heating, ventilating, or air
conditioning systems.
(E) Unless an increase in illumination is necessary to conform
to Indiana laws or rules or local ordinances, modifying or
replacing lighting fixtures to increase the energy efficiency of
the lighting system without increasing the overall illumination
of a facility or structure.
(F) Providing for other conservation measures that provide
billable revenue increases or reduce energy or water
consumption, reduce operating costs, or reduce wastewater
costs, including future:
(i) labor costs;
(ii) costs or revenues for contracted services; and
(iii) related capital expenditures.
(G) Installing equipment upgrades that improve accuracy of
billable revenue generating systems.
(H) Installing automated, electronic, or remotely controlled
systems or measures that reduce direct personnel costs.
(b) The term does not include an alteration of a water or wastewater
structure or system that increases the capacity of the structure or
system.
SOURCE: IC 36-1-12.5-5; (09)CC103305.6. -->
SECTION 6. IC 36-1-12.5-5, AS AMENDED BY P.L.168-2006,
SECTION 11, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 5. (a) The governing body may enter into an
agreement with a public utility to participate in a utility efficiency
program or enter into a guaranteed savings contract with a qualified
provider to increase the political subdivision's billable revenues or
reduce the school corporation's or the political subdivision's energy or
water consumption, wastewater usage costs, or operating costs if, after
review of the report described in section 6 of this chapter, the
governing body finds:
(1) in the case of conservation measures other than those that are
part of a project related to the alteration of a water or wastewater
structure or system, that the amount the governing body would
spend on the conservation measures under the contract and that
are recommended in the report is not likely to exceed the amount
to be saved in energy consumption costs and other operating costs
over
ten (10) twenty (20) years from the date of installation if the
recommendations in the report were followed;
(2) in the case of conservation measures that are part of a project
related to the alteration of a water or wastewater structure or
system, that the amount the governing body would spend on the
conservation measures under the contract and that are
recommended in the report is not likely to exceed the amount of
increased billable revenues or the amount to be saved in energy
and water consumption costs, wastewater usage costs, and other
operating costs over fifteen (15) twenty (20) years from the date
of installation if the recommendations in the report were
followed; and
(3) in the case of a guaranteed savings contract, the qualified
provider provides a written guarantee as described in subsection
(d)(3).
(b) Before entering into an agreement to participate in a utility
efficiency program or a guaranteed savings contract under this section,
the governing body must publish notice under subsection (c)
indicating:
(1) that the governing body is requesting public utilities or
qualified providers to propose conservation measures through:
(A) a utility efficiency program; or
(B) a guaranteed savings contract; and
(2) the date, the time, and the place where proposals must be
received.
(c) The notice required by subsection (b) must:
(1) be published in two (2) newspapers of general circulation in
the county where the school corporation or the political
subdivision is located;
(2) be published two (2) times with at least one (1) week between
publications and with the second publication made at least thirty
(30) days before the date by which proposals must be received;
and
(3) meet the requirements of IC 5-3-1-1.
(d) An agreement to participate in a utility efficiency program or
guaranteed savings contract under this section must provide that:
(1) in the case of conservation measures other than those that are
part of a project related to the alteration of a water or wastewater
structure or system, all payments, except obligations upon the
termination of the agreement or contract before the agreement or
contract expires, may be made to the public utility or qualified
provider (whichever applies) in installments, not to exceed the
lesser of ten (10) twenty (20) years or the average life of the
conservation measures installed from the date of final installation;
(2) in the case of conservation measures that are part of a project
related to the alteration of a water or wastewater structure or
system, all payments, except obligations upon the termination of
the agreement or contract before the agreement or contract
expires, may be made to the public utility or qualified provider
(whichever applies) in installments, not to exceed the lesser of
fifteen (15) twenty (20) years or the average life of the
conservation measures installed from the date of final installation;
(3) in the case of the guaranteed savings contract:
(A) the:
(i) savings in energy and water consumption costs,
wastewater usage costs, and other operating costs; and
(ii) increase in billable revenues;
due to the conservation measures are guaranteed to cover the
costs of the payments for the measures; and
(B) the qualified provider will reimburse the school
corporation or political subdivision for the difference between
the guaranteed savings and the actual savings; and
(4) payments are subject to annual appropriation by the fiscal
body of the school corporation or political subdivision and do not
constitute an indebtedness of the school corporation or political
subdivision within the meaning of a constitutional or statutory
debt limitation.
(e) An agreement or a contract under this chapter is subject to
IC 5-16-7.
SOURCE: IC 36-1-12.5-7; (09)CC103305.7. -->
SECTION 7. IC 36-1-12.5-7, AS AMENDED BY P.L.168-2006,
SECTION 15, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2009]: Sec. 7. (a) If the governing body enters into an
installment payment contract for the purchase and installation of
conservation measures under this chapter that are part of a project that
is not related to the alteration of a water or wastewater structure or
system, the balance of the payments must be paid in installments not
to exceed the lesser of
ten (10) twenty (20) years or the average life of
the conservation measure installed from the date of final installation.
Payments under an installment payment contract are subject to annual
appropriation by the fiscal body of the school corporation or political
subdivision and do not constitute an indebtedness of the school
corporation or political subdivision within the meaning of a
constitutional or statutory debt limitation.
(b) If the governing body enters into an installment payment
contract for the purchase and installation of conservation measures
under this chapter that are part of a project that is related to the
alteration of a water or wastewater structure or system, the balance of
the payments must be paid in installments not to exceed the lesser of
fifteen (15) twenty (20) years or the average life of the conservation
measure installed from the date of final installation. Payments under an
installment payment contract are subject to annual appropriation by the
fiscal body of the school corporation or political subdivision and do not
constitute an indebtedness of the school corporation or political
subdivision within the meaning of a constitutional or statutory debt
limitation.
(c) With respect to a conservation measure described in section
1(a)(2)(G) or 1(a)(2)(H) of this chapter, annual revenues or savings
from a guaranteed savings contract may be less than annual payments
on the contract if during the length of the contract total savings and
increased billable revenues occur as provided for by the contract.
(d) The financing of a guaranteed savings contract may be provided
by:
(1) the vendor under the guaranteed savings contract; or
(2) a third party financial institution or company.
(Reference is to EHB 1033 as printed April 8, 2009.)
Conference Committee Report
on
Engrossed House
Bill 1033
Text Box
S
igned by:
____________________________ ____________________________
Representative Grubb Senator Stutzman
Chairperson
____________________________ ____________________________
Representative Koch Senator Deig
House Conferees Senate Conferees