February 26, 1999

Mr. Speaker:

Your ENERGY AND NATURAL RESOURCES COMMITTEE, to whom has been referred

HOUSE BILL 425

has had it under consideration and reports same with recommendation that it DO PASS, amended as follows:

1. On page 3, between lines 9 and 10, insert the following new section:

"Section 2. 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 unless the contracts and agreements are reviewed and approved as follows:

(1) for school districts, by the superintendent of public instruction;

(2) for state agencies [institutions and instrumentalities of the state], by the secretary of general services; [and]

(3) for municipalities and counties, by the secretary of finance and administration; 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.

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 Building 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 state engineer's office 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."".

2. Renumber the succeeding sections accordingly.

3. On page 5, line 13, strike the period and underscored language and on line 14, strike the underscored language.

4. On page 5, line 21, after "both," insert "or for payment of guaranteed utility savings contracts".

5. On page 6, lines 21 and 22, strike "used to make such" and insert in lieu thereof "pledged for".,

and thence referred to the APPROPRIATIONS AND FINANCE COMMITTEE.

Respectfully submitted,

James Roger Madalena, Chairman

Adopted Not Adopted

(Chief Clerk) (Chief Clerk)

The roll call vote was 8 For 0 Against

Yes: 8

Excused: Picraux, Stewart

Absent: None

.127909.2

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