SENATE BILL 237
50th legislature - STATE OF NEW MEXICO - first session, 2011
INTRODUCED BY
Timothy M. Keller
AN ACT
RELATING TO ENERGY; EXPANDING THE SCOPE OF THE ENERGY EFFICIENCY AND RENEWABLE ENERGY BONDING ACT TO INCLUDE PUBLIC POST-SECONDARY EDUCATIONAL INSTITUTIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 6-21D-2 NMSA 1978 (being Laws 2005, Chapter 176, Section 2) is amended to read:
"6-21D-2. DEFINITIONS.--As used in the Energy Efficiency and Renewable Energy Bonding Act:
A. "authority" means the New Mexico finance authority;
B. "bonds" means energy efficiency bonds;
C. "department" means the energy, minerals and natural resources department;
D. "energy efficiency measure" means a modification or improvement to a building or complex of buildings that is designed to reduce energy 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 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 recovery systems;
(7) on-site photovoltaics, solar heating and cooling systems or other renewable energy systems; or
(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;
E. "fund" means the energy efficiency and renewable energy bonding fund;
F. "post-secondary educational institution" means a public two- or four-year state institution of higher education;
[F.] G. "school district" means a political subdivision of the state established for the administration of public schools, segregated geographically for taxation and bonding purposes and governed by the Public School Code;
[G.] H. "school district building" means a building, the title to which is held by a school district; and
[H.] I. "state building" means a building, the title to which is held by the state or an agency of the state."
SECTION 2. Section 6-21D-3 NMSA 1978 (being Laws 2005, Chapter 176, Section 3, as amended) is amended to read:
"6-21D-3. BUILDING ASSESSMENTS FOR ENERGY EFFICIENCY MEASURES.--
A. Upon the request of a state agency, post-secondary educational institution or [a] school district, the department may perform an energy efficiency assessment of a state, post-secondary educational institution 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 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) post-secondary educational institution buildings, in conjunction with the higher education department; and
[(2)] (3) 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, post-secondary educational institutions 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, as amended) 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, post-secondary educational institution 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] twenty-five 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-5 NMSA 1978 (being Laws 2005, Chapter 176, Section 5) is amended to read:
"6-21D-5. ENERGY EFFICIENCY AND RENEWABLE ENERGY BONDING FUND--PLEDGE OF MONEY IN THE FUND.--
A. The "energy efficiency and renewable energy bonding fund" is created as a special fund within the authority. The fund shall be administered by the authority as a special account. The fund shall consist of gross receipts tax revenues distributed to the fund by law, money transferred to the fund pursuant to the provisions of the Energy Efficiency and Renewable Energy Bonding Act and other transfers and appropriations made to the fund. Earnings of the fund shall be credited to the fund. Any unexpended or unencumbered balance in the energy efficiency and renewable energy bonding fund shall revert to the general fund at the end of a fiscal year.
B. Money in the fund shall be pledged irrevocably by the authority for the payment of principal and interest on all bonds issued pursuant to the Energy Efficiency and Renewable Energy Bonding Act. Money in the fund is appropriated to the authority for the purpose of paying debt service, including redemption premiums, on the bonds and the expenses incurred in the issuance, payment and administration of the bonds.
C. On the last day of January and July of each year, the authority shall estimate the amount needed to make debt service payments on the bonds issued pursuant to the Energy Efficiency and Renewable Energy Bonding Act plus the amount that may be needed for any required reserves, administrative expenses or the obligations coming due during the next twelve months from the fund. Amounts that revert to the general fund from the energy efficiency and renewable energy bonding fund may be appropriated by the legislature to the department for the purposes of carrying out the provisions of the Energy Efficiency and Renewable Energy Bonding Act.
D. Upon payment or defeasance of all principal, interest and other expenses or obligations related to the bonds, the authority shall certify to the public education department, the higher education department, the department of finance and administration and the secretary of taxation and revenue that all obligations for the bonds issued pursuant to the Energy Efficiency and Renewable Energy Bonding Act have been discharged and shall direct that distributions cease to the fund pursuant to that act and the Tax Administration Act. E. The bonds issued pursuant to the Energy Efficiency and Renewable Energy Bonding Act shall be payable solely from the fund or such other special funds as may be provided by law and do not create an obligation or indebtedness of the state within the meaning of any constitutional provision. A breach of any contractual obligation incurred pursuant to that act shall not impose a pecuniary liability or a charge upon the general credit or taxing power of the state, and the bonds are not general obligations for which the state's full faith and credit is pledged.
F. The state does hereby pledge that the fund shall be used only for the purposes specified in this section and pledged first to pay the debt service on the bonds issued pursuant to the Energy Efficiency and Renewable Energy Bonding Act. The state further pledges that any law authorizing the distribution of taxes or other revenues to the fund or authorizing expenditures from the fund shall not be amended or repealed or otherwise modified so as to impair the bonds to which the fund is dedicated as provided in this section."
SECTION 5. Section 6-21D-6 NMSA 1978 (being Laws 2005, Chapter 176, Section 6) is amended to read:
"6-21D-6. CALCULATION OF COST SAVINGS--TRANSFERS TO ENERGY EFFICIENCY AND RENEWABLE ENERGY BONDING FUND.--
A. Upon the installation of energy efficiency measures in a state building, post-secondary educational institution building or school district building, the department shall calculate the estimated energy cost savings, in the form of lower utility payments by the school district, the post-secondary educational institution or the state, that will be annually realized as a result of the installation of the energy efficiency measures. The department shall certify the estimate to the department of finance and administration and the:
(1) general services department or other state agency with jurisdiction, in the case of state buildings;
(2) higher education department and the post-secondary educational institution, in the case of post-secondary educational institution buildings; and [to the department of finance and administration, the]
(3) public education department and the school district, in the case of school district buildings.
B. In the case of a school district building, when calculating the state equalization guarantee distribution pursuant to Section 22-8-25 NMSA 1978, the public education department shall deduct ninety percent of the amount certified for the school district by the department.
C. Reduction of a school district's state equalization guarantee distribution shall cease when the school district's cumulative reductions equal its proportional share of the cumulative debt service payments necessary to service the bonds issued pursuant to the Energy Efficiency and Renewable Energy Bonding Act.
[D. Prior to June 30 of each year, the total amount deducted for all school districts pursuant to Subsection B of this section shall be transferred to the fund.
E.] D. In the case of a state building, the department of finance and administration shall deduct from the operating budget of the agency responsible for paying the utilities of the state building ninety percent of the amount certified for the agency by the department.
[F.] E. Deduction from the operating budget of the agency responsible for paying the utilities of the state building shall cease when the agency's cumulative deductions equal its proportional share of the cumulative debt service payments necessary to service the bonds issued pursuant to the Energy Efficiency and Renewable Energy Bonding Act.
[G. Prior to June 30 of each year, the total amount deducted for all agencies and all state buildings pursuant to Subsection D of this section shall be transferred from the appropriate funds to the energy efficiency and renewable energy bonding fund.]
F. In the case of a post-secondary educational institution building, the post-secondary educational institution shall deduct from the operating budget of the department responsible for paying the utilities of the post-secondary educational institution ninety percent of the amount certified for the post-secondary educational institution by the energy, minerals and natural resources department.
G. Deduction from the operating budget of the department responsible for paying the utilities of the post-secondary educational institution building shall cease when the cumulative deductions equal the post-secondary educational institution's proportional share of the cumulative debt service payments necessary to service the bonds issued pursuant to the Energy Efficiency and Renewable Energy Bonding Act.
H. Prior to June 30 of each year, the total amount deducted for all school district, state agency and all post-secondary educational institution buildings pursuant to Subsections B, D and F of this section shall be transferred from the appropriate funds to the energy efficiency and renewable energy bonding fund."
SECTION 6. Section 6-21D-7 NMSA 1978 (being Laws 2005, Chapter 176, Section 7, as amended) 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.
B. The net proceeds from the bonds are appropriated to the authority for the purpose of making distributions to one or more state agencies, post-secondary educational institutions 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, post-secondary educational institution 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, post-secondary educational institution 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 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 7. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.
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