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AN ACT

RELATING TO ENERGY EFFICIENCY; AMENDING THE ENERGY EFFICIENCY

AND RENEWABLE ENERGY BONDING ACT TO PROVIDE FOR ASSESSMENTS,

CREATE A REVOLVING FUND, INCREASE THE DURATION OF INSTALLATION

CONTRACTS AND REMOVE THE REQUIREMENT FOR A STATE PLAN; MAKING

AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 6-21D-1 NMSA 1978 (being Laws 2005,

Chapter 176, Section 1) is amended to read:

"6-21D-1. SHORT TITLE.--Chapter 6, Article 21D NMSA

1978 may be cited as the "Energy Efficiency and Renewable

Energy Bonding Act"."

Section 2. Section 6-21D-3 NMSA 1978 (being Laws 2005,

Chapter 176, Section 3) is amended to read:

"6-21D-3. BUILDING ASSESSMENTS FOR ENERGY EFFICIENCY

MEASURES.--

A. Upon the request of a state agency or a school

district, the department may perform an energy efficiency

assessment of a state or school district building to identify

the energy efficiency measures that can be installed and

operated at a total price that is less than the energy cost

savings realized. In addition, the assessment shall include a

schedule for funding and installing the energy efficiency

measures that will realize significant energy cost savings in

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the shortest time frame. The department shall develop the

assessment of:

(1) state buildings in conjunction with the

property control division of the general services department,

the staff architect of the division, the capitol buildings

planning commission and other state agencies with control and

management over buildings; and

(2) school district buildings, in

conjunction with the public education department, the public

school capital outlay council and the public school facilities

authority.

B. State agencies and school districts shall

cooperate with the department in the assessment performed

pursuant to Subsection A of this section."

Section 3. Section 6-21D-4 NMSA 1978 (being Laws 2005,

Chapter 176, Section 4) is amended to read:

"6-21D-4. CONTRACTS FOR THE INSTALLATION OF ENERGY

EFFICIENCY MEASURES.--Pursuant to an energy efficiency

assessment performed under Section 6-21D-3 NMSA 1978 and with

the approval of the department, a state agency or school

district may install or enter into contracts for the

installation of energy efficiency measures on the building

identified in the assessment. An installation contract shall

be entered into pursuant to the Procurement Code, except that

the contract may be entered into for a term of up to ten

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years. The installation or contracts shall address provisions

concerning payment schedules, monitoring, inspecting,

measuring and warranties as are necessary to ensure that the

energy efficiency measures will be installed and the energy

cost savings realized in the manner most beneficial to the

state; provided that bonds shall not be issued pursuant to the

Energy Efficiency and Renewable Energy Bonding Act without a

finding by the department that the energy cost savings

realized from the energy efficiency measures will be greater

than the debt service due on the bonds issued to finance the

energy efficiency measures."

Section 4. Section 6-21D-7 NMSA 1978 (being Laws 2005,

Chapter 176, Section 7) is amended to read:

"6-21D-7. ENERGY EFFICIENCY BONDS AUTHORIZED--

CONDITIONS--PROCEDURE.--

A. The authority is authorized to issue and sell

from time to time revenue bonds, known as "energy efficiency

bonds", in an amount outstanding at any one time not to exceed

twenty million dollars ($20,000,000), payable solely from the

fund, in compliance with the Energy Efficiency and Renewable

Energy Bonding Act and the New Mexico Finance Authority Act

for the purpose of installing energy efficiency measures when

the department has certified the need for the bonds and the

conditions of Subsection C of this section have been

satisfied.

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B. The net proceeds from the bonds are

appropriated to the authority for the purpose of making

distributions to one or more state agencies or school

districts that, pursuant to an energy efficiency assessment by

the department, have committed to install energy efficiency

measures or entered into contracts for the installation of the

measures. Upon receipt of a distribution, the state agency or

school district shall deposit into the energy efficiency

assessment revolving fund the cost incurred by the department

to make the energy efficiency assessment on the building and

shall use the remainder for the installation of energy

efficiency measures pursuant to the Energy Efficiency and

Renewable Energy Bonding Act, provided that, after the

installation of the energy efficiency measures, any unexpended

balance of the bond proceeds shall revert to the energy

efficiency and renewable energy bonding fund.

C. Bonds shall not be issued pursuant to this

section unless:

(1) a state agency or school district has

committed to install or has entered into one or more contracts

pursuant to Section 6-21D-4 NMSA 1978 for the installation of

energy efficiency measures and the department has certified

that the resulting energy cost savings will be realized within

a reasonable time;

(2) considering the timeliness and amount of

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energy cost savings estimated to be realized from the energy

efficiency measures, the department has certified the

approximate date when the energy cost savings are most likely

to equal or exceed the debt service due on the bonds to be

issued to fund the energy efficiency measures;

(3) the life of energy efficiency measures

meets or exceeds the life of the bonds allocable to those

energy efficiency measures as determined by the department and

the authority; and

(4) based on the department's certification,

the debt service on the bonds has been structured by the

authority to preclude the annual debt service payments due

until the date that the cost savings equal or exceed the debt

service.

D. Each series of bonds shall be issued pursuant

to the provisions of the New Mexico Finance Authority Act,

except as otherwise provided in the Energy Efficiency and

Renewable Energy Bonding Act."

Section 5. Section 6-21D-10 NMSA 1978 (being Laws 2005,

Chapter 176, Section 10) is amended to read:

"6-21D-10. ANNUAL REPORT REQUIRED.--No later than

December 1 of each year, the department shall report to the

legislature and to the governor on its activities during the

previous fiscal year in administering the provisions of the

Energy Efficiency and Renewable Energy Bonding Act. The

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report shall include:

A. details concerning all payments made for the

installation of energy efficiency measures;

B. details concerning all expenditures made in

administering the provisions of the Energy Efficiency and

Renewable Energy Bonding Act;

C. a list of all buildings on which an energy

efficiency assessment has been performed and the buildings in

which energy efficiency measures were installed;

D. details showing how the energy cost savings

were calculated;

E. an analysis of whether the program has been

cost-effective;

F. a summary of activities being conducted during

the present fiscal year; and

G. any additional information that will assist the

legislature and the governor in evaluating the program."

Section 6. A new section of the Energy Efficiency and

Renewable Energy Bonding Act is enacted to read:

"ENERGY EFFICIENCY ASSESSMENT REVOLVING FUND.--The

"energy efficiency assessment revolving fund" is created in

the state treasury. The fund shall consist of appropriations,

gifts, grants, donations and bequests made to the fund and

reimbursements of costs incurred by the department in

performing energy efficiency assessments pursuant to the

Energy Efficiency and Renewable Energy Bonding Act. Income

from the fund shall be credited to the fund, and money in the

fund shall not revert or be transferred to any other fund at

the end of a fiscal year. Money in the fund is appropriated

to the department for the purposes of performing energy

efficiency assessments. Expenditures from the fund shall be

made on warrant of the secretary of finance and administration

pursuant to vouchers signed by the secretary of energy,

minerals and natural resources."

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