HB0145

HOUSE BILL 145

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Mimi Stewart

AN ACT

RELATING TO PUBLIC SCHOOLS; ENACTING THE HIGH PERFORMANCE SCHOOL BUILDINGS ACT; PROVIDING A GRANT PROGRAM TO INSTALL HIGH PERFORMANCE TECHNOLOGIES IN PUBLIC SCHOOL FACILITIES; CREATING A FUND; MAKING AN APPROPRIATION.

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

SECTION 1. SHORT TITLE.--This act may be cited as the "High Performance School Buildings Act".

SECTION 2. FINDINGS AND PURPOSE.--

A. The legislature finds that:

(1) the development of high performance technologies has advanced to the point that operating costs can be significantly reduced by installing those technologies in existing buildings;

(2) a program to expend state resources on the acquisition and installation of high performance technologies in existing schools would create jobs throughout the state and have a tremendous impact on improving student performance and health, while decreasing operational costs and protecting the environment; and

(3) high performance schools would lower utility costs, reduce waste, conserve resources and preserve surrounding habitats, as well as showcase a community's commitment to its children and their future.

B. The purpose of the High Performance School Buildings Act is to provide a framework for the funding and installation of cost-effective high performance technologies in existing school facilities.

SECTION 3. DEFINITIONS.--As used in the High Performance School Buildings Act:

A. "authority" means the public school facilities authority;

B. "cost-effectiveness ratio" means the present value of the energy cost savings reasonably expected to be realized by the installation and use of high performance technology over its anticipated useful life divided by the present value of the costs of implementing, maintaining and operating the high performance technology over its anticipated useful life;

C. "council" means the public school capital outlay council;

D. "department" means the energy, minerals and natural resources department;

E. "energy cost savings" means savings realized in the costs of energy or water and the costs associated with water, wastewater or solid waste systems;

F. "fund" means the green schools initiative grant fund;

G. "high performance technology" means a modification or improvement to a building or complex of buildings that is designed to reduce energy or water consumption or operating costs or that provides a renewable energy source 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 or water 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;

(6) energy or water recovery systems;

(7) on-site photovoltaics, 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; or

(9) any other measure that would lead to a silver rating or higher according to the United States green building council's leadership in energy and environmental design green building rating system; and

H. "school district" may include a locally chartered or state-chartered charter school, the New Mexico school for the blind and visually impaired or the New Mexico school for the deaf.

SECTION 4. HIGH PERFORMANCE SCHOOLS INITIATIVE.--

A. The council shall establish a high performance schools initiative pursuant to the provisions of this section.

B. A school district desiring a grant for the purpose of acquiring and installing high performance technology in one or more of its existing facilities shall submit an application to the council. The application shall include:

(1) a description of its existing facilities and the amounts and costs of energy and water currently consumed;

(2) a description of the proposed high performance technology for which the school district desires the grant;

(3) a description of the amount and source of any additional funds that will be available to the school district for the acquisition and installation of the proposed high performance technology;

(4) the school district's estimates of the energy cost savings and the cost-effectiveness ratio that will result from the proposed high performance technology as well as a detailed explanation of the methodology used to calculate the estimates;

(5) a time line showing the school district's estimate of the time period between the award of the grant and the date that energy cost savings will begin to be realized; and

(6) such other information as is required by rule of the council.

C. The department shall verify the school district's estimates of energy cost savings and the cost- effectiveness ratio or, if it is unable to verify the estimates of the school district, shall calculate its own estimates and submit those to the authority and the council.

D. The authority shall assess each application and rank it with similar applications pursuant to a methodology established by rule of the council pursuant to Subsection E of this section.

E. The council shall adopt a methodology for assessing and ranking applications; provided that the methodology shall:

(1) include the consideration of the following components:

(a) the estimated energy cost savings that will be realized by the implementation of high performance technology;

(b) the estimated cost-effectiveness ratio of high performance technology; provided that no grant shall be given for the implementation of a high performance technology unless the estimated cost-effectiveness ratio is equal to or greater than one;

(d) the time frame within which a high performance technology will be installed and operational;

(2) ensure that small school districts will have the same opportunity to apply for and receive a grant as the larger school districts;

(3) ensure that grants will be awarded to school districts in all geographic areas of the state; and

(4) ensure that grant awards will not conflict with school districts' five-year facilities plans.

F. After a public hearing and to the extent that money is available in the fund for such purposes, the council shall make grants to school districts on the established priority basis.

SECTION 5. HIGH PERFORMANCE SCHOOLS INITIATIVE GRANT FUND.--

A. The "high performance schools initiative grant fund" is created in the state treasury.

B. The fund shall consist of:

(1) money that is appropriated to the fund;

(2) income from investment of the fund;

(3) proceeds from the sale of severance tax bonds that are appropriated to the fund;

(4) proceeds from the sale of general obligation bonds that are appropriated to the fund; and

(5) gifts, bequests, federal grants and any other money accruing to the fund.

C. Except for severance tax bond proceeds required to revert to the severance tax bonding fund and general obligation bond proceeds required to revert to a bond retirement fund, balances in the fund at the end of a fiscal year shall not revert to any other fund.

D. The fund may consist of subaccounts as determined to be necessary by the council.

E. Expenditures from the fund shall be by warrants of the secretary of finance and administration upon vouchers signed by the director of the authority.

F. Except as provided in Subsection G of this section, money in the fund is appropriated to the council for the purpose of making grants to school districts to acquire and install high performance technologies pursuant to the High Performance School Buildings Act.

G. Balances in the fund may be annually appropriated to the authority and the department for expenditures necessary to administer the provisions of the High Performance School Buildings Act; provided that any unexpended or unencumbered balance remaining at the end of a fiscal year from the appropriations authorized in this subsection shall revert to the fund.

SECTION 6. GRANT EXCLUDED FROM CAPITAL OUTLAY SETOFF AMOUNT.--A grant received by a school district pursuant to the High Performance School Buildings Act shall not reduce the amount of a grant award pursuant to the Public School Capital Outlay Act and, therefore, shall be excluded when calculating a setoff amount pursuant to Subparagraph (a) of Paragraph (6) of Subsection B of Section 22-24-5 NMSA 1978.

SECTION 7. AUDITS.--

A. The department shall conduct such audits as are necessary to accurately measure the energy cost savings realized from high performance technologies acquired and installed with grants awarded pursuant to the High Performance School Buildings Act.

B. The authority shall conduct such audits as are needed to ensure that grants are expended only for the purposes for which they were given.

SECTION 8. RULES.--The council shall promulgate such rules as are necessary to carry out the provisions of the High Performance School Buildings Act.

SECTION 9. REPORT.--No later than December 1 of each year, the council shall submit a report to the governor and to the legislature summarizing activities conducted pursuant to the High Performance School Buildings Act during the preceding fiscal year. The report shall include the amount, recipient and purpose of all grants awarded; the amount, recipient and purpose of all other expenditures from the fund; the results of all audits conducted; and the total of all energy cost savings realized.

SECTION 10. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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