SENATE BILL 580
49th legislature - STATE OF NEW MEXICO - first session, 2009
INTRODUCED BY
Pete Campos
AN ACT
RELATING TO ENERGY EFFICIENCY; AMENDING THE NAME OF THE PUBLIC FACILITIES ENERGY AND WATER CONSERVATION ACT; PROVIDING FOR THE LEASE PURCHASE OF ALTERNATIVE FUEL OPTION VEHICLES IN THE GOVERNMENTAL ENERGY EFFICIENCY AND WATER CONSERVATION ACT; MAKING A DISTRIBUTION FROM THE EXTRACTION TAXES SUSPENSE FUND TO THE PUBLIC SCHOOL UTILITY CONSERVATION FUND; MAKING AN APPROPRIATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 6-23-1 NMSA 1978 (being Laws 1993, Chapter 231, Section 1, as amended) is amended to read:
"6-23-1. SHORT TITLE.--Chapter 6, Article 23 NMSA 1978 may be cited as the "[Public Facility] Governmental Energy Efficiency and Water Conservation Act"."
Section 2. Section 6-23-2 NMSA 1978 (being Laws 1993, Chapter 231, Section 2, as amended) is amended to read:
"6-23-2. DEFINITIONS.--As used in the [Public Facility] Governmental Energy Efficiency and Water Conservation Act:
A. "conservation-related cost savings" means cost savings, other than utility cost savings, in the operating budget of a governmental unit that are a direct result of energy or water conservation measures implemented pursuant to a guaranteed utility savings contract or measures that are designed to reduce the adverse effect of the carbon footprint of buildings, equipment or vehicles on the environment. For the purposes of this subsection, "carbon footprint" means a measure of the amount of carbon dioxide produced by a building, a piece of equipment or a vehicle at a given time;
B. "energy conservation measure" means a training program or [a] the construction, purchase or modification [to] of a facility, including buildings, systems or vehicles that is designed to reduce energy consumption or conservation-related operating costs and may include:
(1) insulation of the building structure or systems within the building;
(2) storm windows or doors, caulking or weatherstripping, multiglazed windows or doors, heat absorbing or heat reflective glazed and coated window or door systems, additional glazing, reductions in glass area or other window and door system modifications that reduce energy consumption;
(3) automated or computerized energy control systems;
(4) heating, ventilating or air conditioning system modifications or replacements;
(5) replacement or modification of lighting fixtures to increase the energy efficiency of the 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 nationally accepted standards for the lighting system after the proposed modifications are made;
(6) energy recovery systems;
(7) solar heating and cooling systems or other renewable energy systems;
(8) cogeneration or combined heat and power systems that produce steam, chilled water or forms of energy such as heat, as well as electricity, for use primarily within a building or complex of buildings;
(9) energy conservation measures that provide long-term operating cost reductions;
(10) maintenance and operation management systems that provide long-term operating cost reductions;
(11) traffic control systems; [or]
(12) alternative fuel options or accessories for vehicles; or
(13) purchase or lease purchase of alternative fuel option fleet service vehicles, including school buses;
C. "governmental unit" means an agency, political subdivision, institution or instrumentality of the state, including two- and four-year institutions of higher education, a municipality, a county or a school district;
D. "guaranteed utility savings contract" means a contract for the evaluation and recommendation of energy or water conservation measures and for the implementation of one or more of those measures, and which contract provides that all payments, except obligations on termination of the contract before its expiration, are to be made over time and the savings are guaranteed to the extent necessary to make the payments for the conservation measures;
E. "qualified provider" means a person experienced in the design, implementation and installation or in the provision of energy or water conservation measures and who meets the experience qualifications developed by the energy, minerals and natural resources department for energy conservation measures or the office of the state engineer for water conservation measures;
F. "utility cost savings" means the amounts saved by a governmental unit in the purchase of energy or water that are a direct result of energy or water conservation measures implemented pursuant to a guaranteed utility savings contract; [and]
G. "vehicle lease purchase energy conservation contract" means an agreement for the financing or leasing of alternative fuel option fleet service vehicles, including school buses, with an option to purchase for a price that is reduced according to the payments made, which periodic lease payments composed of principal and interest components are to be paid to the holder of the agreement and pursuant to which the owner of the vehicles may retain title to or a security interest in the vehicles and may agree to release the security interest or transfer title to the vehicles to the governmental unit for nominal consideration after payment of the balance of the principal and accrued interest; and
[G.] H. "water conservation measures" means a training program, change in maintenance practices or facility or landscape alteration designed to reduce water consumption or conservation-related operating costs."
Section 3. A new section of the Governmental Energy Efficiency and Water Conservation Act is enacted to read:
"[NEW MATERIAL] VEHICLE LEASE PURCHASE ENERGY CONSERVATION CONTRACT.--A governmental unit may enter into a vehicle lease purchase energy conservation contract with a person for the purchase or lease purchase of alternative fuel option vehicles."
Section 4. Section 6-23-5 NMSA 1978 (being Laws 1993, Chapter 231, Section 5, as amended) is amended to read:
"6-23-5. CONTRACT APPROVAL REQUIRED.--
A. A governmental unit shall not enter into a guaranteed utility savings contract with a qualified provider or any installment payment contract or lease-purchase agreement pursuant to that contract or a vehicle lease purchase energy conservation contract unless the contracts and agreements are reviewed and approved as follows:
(1) for school districts, by the [superintendent of public instruction] secretary of public education;
(2) for state agencies:
(a) if the facilities, systems or vehicles are or are to be owned, leased or otherwise controlled by the general services department, by the secretary of general services; and
(b) if the facilities, systems or vehicles are not or are not to be owned, leased or otherwise controlled by the general services department, by the executive head of the state agency;
(3) for municipalities and counties, by the governing body of the municipality or county; and
(4) for all post-secondary educational institutions and the state educational institutions confirmed in Article 12, Section 11 of the constitution of New Mexico, by the [commission on] higher education department.
B. The approval required under this section shall be given upon:
(1) a determination that the contracts and agreements comply with the provisions of the [Public Facility] Governmental Energy Efficiency and Water Conservation Act and other applicable law;
(2) certification by the energy, minerals and natural resources department that the qualified provider of energy conservation measures meets the experience requirements set by the department and the guaranteed energy savings from the energy conservation measures proposed appear to be accurately estimated and reasonable; [and]
(3) certification by the office of the state engineer that the qualified provider of water conservation measures meets the experience requirements set by that office and the guaranteed water savings from the water conservation measures proposed appear to be accurately estimated and reasonable; and
(4) for school district vehicle lease purchase energy conservation contracts, a determination by the public education department that the contracts provide that:
(a) there is no legal obligation for the school district to continue the lease purchase arrangement from year to year or to purchase the vehicles; and
(b) the contracts shall be terminated by the school district if sufficient money is not available to meet current lease payments."
Section 5. Section 6-23-7 NMSA 1978 (being Laws 1993, Chapter 231, Section 7, as amended) is amended to read:
"6-23-7. PUBLIC SCHOOL UTILITY CONSERVATION FUND CREATED--USE.--
A. The "public school utility conservation fund" is created as a special fund in the state treasury. The fund shall consist of money transferred to the fund, from year to year, from the distribution of the permanent fund and land income of which the common schools are the beneficiary and from the distribution pursuant to Section 7-1-6.22 NMSA 1978. No other money from any school district or state source shall be deposited or paid into the public school utility conservation fund.
B. Annually, after the calculation of the state equalization guarantee distribution has been made, the [superintendent of public instruction] secretary of public education shall determine the sum of the deductions made in the state equalization guarantee distribution of school districts pursuant to Paragraph (7) of Subsection D of Section 22-8-25 NMSA 1978 and shall certify that amount to the secretary of finance and administration. Distributions from the permanent fund and land income of which the common schools are the beneficiary equal to that amount shall be transferred from the common school current fund to the public school utility conservation fund.
C. Money in the public school utility conservation fund is appropriated to the [state department of] public education department solely for the purpose of disbursing money to school districts to make payments pursuant to any guaranteed utility savings contract between the school district and a qualified provider or any installment contract or lease-purchase agreement for the purchase and installation of energy or water conservation measures pursuant to that guaranteed utility savings contract or any vehicle lease purchase energy conservation contract.
D. Disbursements from the public school utility conservation fund shall be made only to school districts and only upon certification by the [superintendent of public instruction] secretary of public education that the disbursement is for a payment authorized by the [Public Facility] Governmental Energy Efficiency and Water Conservation Act.
E. The [superintendent of public instruction] secretary of public education shall submit to the legislative finance committee prior to each regular legislative session a list of school districts proposing to enter into approved guaranteed utility savings contracts in the succeeding fiscal year. The list shall include information on the amount of the school district's proposed annual payments and specific amounts that utility and operational budget items are guaranteed to be reduced to achieve the savings to make the payments.
F. The secretary of public education shall submit to the legislative finance committee prior to each regular legislative session a list of school districts proposing to enter into approved vehicle lease purchase energy conservation contracts in the succeeding fiscal year. The list shall include information on the conservation-related cost savings associated with the contracts.
[F.] G. Any unexpended or unencumbered balance remaining in the public school utility conservation fund at the end of any fiscal year shall be transferred to the public school fund."
Section 6. Section 7-1-6.22 NMSA 1978 (being Laws 1985, Chapter 65, Section 8, as amended) is amended to read:
"7-1-6.22. DISTRIBUTIONS TO OIL AND GAS PRODUCTION TAX FUND, OIL AND GAS EQUIPMENT TAX FUND AND COPPER PRODUCTION TAX FUND AND PUBLIC SCHOOL UTILITY CONSERVATION FUND--CREATION OF FUNDS.--
A. A distribution pursuant to Section 7-1-6.20 NMSA 1978 shall be made to the "oil and gas production tax fund", hereby created in the state treasury, of the net receipts including advance payments, attributable to the Oil and Gas Ad Valorem Production Tax Act.
B. A distribution pursuant to Section 7-1-6.20 NMSA 1978 shall be made to the "oil and gas equipment tax fund", hereby created in the state treasury, of the net receipts attributable to the Oil and Gas Production Equipment Ad Valorem Tax Act.
C. A distribution pursuant to Section 7-1-6.20 NMSA 1978 shall be made to the "copper production tax fund", hereby created in the state treasury, of the net receipts attributable to the Copper Production Ad Valorem Tax Act.
D. A distribution pursuant to Section 7-1-6.20 NMSA 1978 shall be made to the public school utility conservation fund of one-fourth of one percent of the net receipts attributable to the Oil and Gas Emergency School Tax Act."
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