STATE GOVERNMENT
AND STATE AFFAIRS
CHAPTER 57
DEPARTMENT OF ADMINISTRATION
67-5711D.Energy savings performance contracts. (1) Definitions. As used in
this section:
(a) "Cost-savings
measure" means any facility improvement, repair or alteration
to an existing facility, or any equipment, fixture or furnishing to
be added or used in any existing facility that is designed to reduce
energy consumption and energy operating costs or increase the energy
efficiency of facilities for their appointed functions that are cost
effective. "Cost-savings measure" includes, but is not limited
to, one (1) or more of the following:
(i) Procurement
of low-cost energy supplies of all types, including electricity, natural
gas and water;
(ii) Insulating
the building structure or systems in the building;
(iii) Storm
windows or doors, caulking or weather stripping, multiglazed windows
or door systems, heat-absorbing or heat-reflective glazed and coated
window and door systems, additional glazing, reductions in glass area
or other window and door system modifications that reduce energy consumption;
(iv) Automated
or computerized energy control systems;
(v) Heating,
ventilation or air conditioning system modifications or replacements;
(vi) Replacing
or modifying lighting fixtures to increase the energy efficiency of
the lighting system;
(vii) Energy
recovery systems;
(viii) 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;
(ix) Installing
new or modifying existing day lighting systems;
(x) Installing
or modifying renewable energy and alternate energy technologies;
(xi) Building
operation programs that reduce energy costs including, but not limited
to, computerized programs, training and other similar activities;
(xii) Steam
trap improvement programs that reduce energy costs;
(xiii) Devices
that reduce water consumption; and
(xiv) Any
additional building infrastructure improvements that produce energy
cost savings, significantly reduce energy consumption or increase
the energy efficiency of the facilities for their appointed functions
and are in compliance with all applicable state building codes.
(b) "Director"
means the director of the department of administration or the director’s
designee.
(c) "Energy
cost savings" means any expenses that are eliminated or avoided
on a long-term basis as a result of equipment installed or modified,
or services performed by a qualified energy service company or a qualified
provider, but does not include merely shifting personnel costs or
similar short-term cost savings.
(d) "Financial
grade energy audit" means a comprehensive building energy systems
audit performed by a professional engineer licensed in the state of
Idaho for the purpose of identifying and documenting feasible energy
and resource conservation measures and cost-savings factors.
(e) "Performance
contract" means a contract between the director or the public
entity and a qualified provider or a qualified energy service company
for evaluation, recommendation and implementation of one (1) or more
cost-savings measures. A performance contract may be structured as
either:
(i) A
guaranteed energy savings performance contract, which shall include,
at a minimum, the design and installation of equipment and, if applicable,
operation and maintenance of any of the measures implemented. Guaranteed
annual savings must meet or exceed the total annual contract payments
made by the director or the user agency or the public entity for such
contract, including financing charges to be incurred over the life
of the contract; or
(ii) A shared
savings contract, which shall include provisions mutually agreed upon
by the director and the qualified provider or qualified energy service
company as to the rate of payments based upon energy cost savings
and a stipulated maximum energy consumption level over the life of
the contract.
(f) "Person"
means an individual, corporation, partnership, firm, association,
limited liability company, limited liability partnership or other
such entity as recognized by the state of Idaho.
(g) "Public
entity" means the cities, counties and school districts or any
political subdivision within the state of Idaho.
(h) "Qualified
energy service company" means a person with a record of established
projects or with demonstrated technical, operational, financial and
managerial capabilities to implement performance contracts and who
currently holds an Idaho public works contractor license appropriate
for the work being performed.
(i) "Qualified
provider" means a person who is experienced in the design, implementation
and installation of energy efficiency and facility improvement measures,
who has the ability to secure necessary financial measures to support
energy savings guarantees and the technical capabilities to ensure
such measures generate energy cost savings, and who currently holds
an Idaho public works contractor license appropriate for the work
being performed.
(2) Performance
contracts. The director of the department of administration, subject
to the approval of the permanent building fund advisory council, or
any Idaho public entity may enter into a performance contract with
a qualified provider or qualified energy service company to reduce
energy consumption or energy operating costs. Cost-savings measures
implemented under such contracts shall comply with all applicable
state and local building codes.
(3) Requests
for qualifications. The director of the department of administration
or the public entity shall request qualifications from qualified providers
and qualified energy service companies inviting them to submit information
describing their capabilities in the areas of:
(a) Design,
engineering, installation, maintenance and repairs associated with
performance contracts;
(b) Experience
in conversions to a different energy or fuel source, so long as it
is associated with a comprehensive energy efficiency retrofit;
(c) Postinstallation
project monitoring, data collection and reporting of savings;
(d) Overall
project experience and qualifications;
(e) Management
capability;
(f) Ability
to assess the availability of long-term financing;
(g) Experience
with projects of similar size and scope; and
(h) Other
factors determined by the director or the public entity to be relevant
and appropriate relating to the ability of the qualified provider
or qualified energy service company to perform the project.
(4) Notice.
Adequate public notice of the request for qualifications shall be
given at least fourteen (14) days prior to the date set forth therein
for the opening of the responses to the request for qualifications.
Such notice may be provided electronically or by publication in a
newspaper of general circulation in the area where the work is located.
(5) Public
inspection. All records of the department or an agency or the public
entity relating to the award of a performance contract shall be open
to public inspection in accordance with the provisions of sections 9-337 through 9-347 and 67-5725, Idaho
Code. (6) Award
of performance contract.
(a) The
director or public entity shall select up to three (3) qualified providers
or qualified energy service companies who have responded to the request
for qualifications. Factors to be considered in selecting the successful
qualified provider or qualified energy service company shall include,
but not be limited to:
(i) Fee
structure;
(ii) Contract
terms;
(iii) Comprehensiveness
of the proposal and cost-savings measures;
(iv) Experience
of the qualified provider or qualified energy service company;
(v) Quality
of the technical approach of the qualified provider or qualified energy
service company; and
(vi) Overall
benefits to the state or the public entity.
(b) Notwithstanding
the provisions of section 67-5711C, Idaho
Code, the director or the public entity may, following the request
for qualifications and the expiration of the specified notice period,
award the performance contract to the qualified provider or qualified
energy service company which best meets the needs of the project and
whose proposal may or may not represent the lowest cost among the
proposals submitted pursuant to this section. (c) Upon
award of the performance contract, the successful qualified provider
or qualified energy service company shall prepare a financial grade
energy audit which, upon acceptance by the director or the public
entity, shall become a part of the final performance contract.
(7) Installment
payment and lease-purchase agreements. Pursuant to this section, the
director or the public entity may enter into a performance contract,
payments for which shall be made by the user agency or public entity.
Such performance contracts may be financed as installment payment
contracts or lease-purchase agreements for the purchase and installation
of cost-savings measures. Financing implemented through another person
other than the qualified provider or qualified energy service company
is authorized.
(8) Terms
of performance contract.
(a) Each
performance contract shall provide that all payments between parties,
except obligations upon termination of the contract before its expiration,
shall be made over time and that the objective of such performance
contract is the implementation of cost-savings measures and energy
cost savings.
(b) A performance
contract, and payments provided thereunder, may extend beyond the
fiscal year in which the performance contract becomes effective, subject
to appropriation by the legislature or by the public entity, for costs
incurred in future fiscal years. The performance contract may extend
for a term not to exceed twenty-five (25) years. The permissible length
of the contract may also reflect the useful life of the cost-savings
measures.
(c) Performance
contracts may provide for payments over a period of time not to exceed
deadlines specified in the performance contract from the date of the
final installation of the cost-savings measures.
(d) Performance
contracts entered pursuant to this section may be amended or modified,
upon agreement by the director or the public entity and the qualified
provider or qualified energy service company, on an annual basis.
(9) Monitoring
and reports. During the term of each performance contract, the qualified
provider or qualified energy service company shall monitor the reductions
in energy consumption and cost savings attributable to the cost-savings
measures installed pursuant to the performance contract and shall
annually prepare and provide a report to the director or the public
entity documenting the performance of the cost-savings measures.
Idaho Statutes