0001| HOUSE BILL 736
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| RAYMOND G. SANCHEZ
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO PUBLIC FINANCES; AMENDING THE PUBLIC BUILDING
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0012| ENERGY EFFICIENCY ACT TO INCLUDE WATER CONSERVATION MEASURES
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0013| AND TO PROVIDE THAT STATE AGENCIES MAY CARRY OVER UTILITY
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0014| SAVINGS REALIZED THROUGH GUARANTEED UTILITY SAVINGS CONTRACTS.
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0015|
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0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017| Section 1. Section 6-23-1 NMSA 1978 (being Laws 1993,
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0018| Chapter 231, Section 1) is amended to read:
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0019| "6-23-1. SHORT TITLE. [Sections 1 through 10 of this
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act] Chapter 6, Article 23 NMSA 1978 may be cited as the
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0021| "Public Building Energy Efficiency and Water Conservation
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0022| Act"."
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0023| Section 2. Section 6-23-2 NMSA 1978 (being Laws 1993,
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0024| Chapter 231, Section 2) is amended to read:
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0025| "6-23-2. DEFINITIONS.--As used in the Public Building
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0001| Energy Efficiency and Water Conservation Act:
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0002| A. "energy conservation measure" means a training
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0003| program or facility alteration designed to reduce energy
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0004| consumption or operating costs and may include:
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0005| (1) insulation of the building structure or
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0006| systems within the building;
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0007| (2) storm windows or doors, caulking or
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0008| weatherstripping, multiglazed windows or doors, heat absorbing
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0009| or heat reflective glazed and coated window or door systems,
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0010| additional glazing, reductions in glass area or other window
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0011| and door system modifications that reduce energy consumption;
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0012| (3) automated or computerized energy control
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0013| systems;
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0014| (4) heating, ventilating or air conditioning
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0015| system modifications or replacements;
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0016| (5) replacement or modification of lighting
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0017| fixtures to increase the energy efficiency of the lighting
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0018| system without increasing the overall illumination of a
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0019| facility, unless an increase in illumination is necessary to
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0020| conform to the applicable state or local building code for the
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0021| lighting system after the proposed modifications are made;
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0022| (6) energy recovery systems;
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0023| (7) solar heating and cooling systems or other
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0024| renewable energy systems;
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0025| (8) cogeneration systems that produce steam or
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0001| forms of energy such as heat, as well as electricity, for use
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0002| primarily within a building or complex of buildings; or
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0003| (9) energy conservation measures that provide
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0004| long-term operating cost reductions;
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0005| B. "governmental unit" means an agency, institution
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0006| or instrumentality of the state, a municipality, a county or a
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0007| school district;
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0008| C. "guaranteed [energy] utility savings
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0009| contract" means a contract for the evaluation and
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0010| recommendation of energy or water conservation measures, or
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0011| both, and for the implementation of one or more of those
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0012| measures, and which contract provides that all payments, except
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0013| obligations on termination of the contract before its
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0014| expiration, are to be made over time and the savings are
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0015| guaranteed to the extent necessary to make the payments for the
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0016| energy or water conservation measures, or both;
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0017| D. "qualified provider" means a person or business
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0018| experienced in the design, implementation and installation of
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0019| energy or water conservation measures, or both, and who
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0020| meets the experience qualifications developed by the energy,
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0021| minerals and natural resources department for energy
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0022| conservation measures or the state engineer's office for water
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0023| conservation measures; and
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0024| E. "water conservation measures" means a training
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0025| program, change in maintenance practices or facility or
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0001| landscape alteration designed to reduce water consumption or
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0002| operating costs."
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0003| Section 3. Section 6-23-3 NMSA 1978 (being Laws 1993,
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0004| Chapter 231, Section 3) is amended to read:
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0005| "6-23-3. ENERGY EFFICIENCY AND WATER CONSERVATION
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0006| CONTRACTS AUTHORIZED--ENERGY OR WATER SAVINGS GUARANTEE
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0007| REQUIRED.--
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0008| A. A governmental unit may enter into a guaranteed
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0009| [energy] utility savings contract with a qualified provider
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0010| to reduce energy, water or operating costs if, after review
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0011| of the [energy] utility efficiency proposal from the
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0012| qualified provider, the governmental unit finds that:
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0013| (1) the amount the governmental unit would
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0014| spend on the energy or water conservation measures, or
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0015| both, recommended in the proposal is not likely to exceed the
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0016| amount to be saved in energy and operational costs over ten
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0017| years from the date of installation if the recommendations in
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0018| the proposal were followed; and
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0019| (2) the qualified provider can provide a
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0020| written guarantee that the energy, water or operating cost
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0021| savings will meet or exceed the costs of the system.
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0022| B. A guaranteed [energy] utility savings
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0023| contract shall include a written guarantee from the qualified
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0024| provider that annual savings shall meet or exceed the cost of
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0025| the energy or water conservation measures, or both.
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0001| C. A guaranteed [energy] utility savings
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0002| contract may extend beyond the fiscal year in which it becomes
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0003| effective and may provide for payments over a period of time
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0004| not to exceed ten years; provided, however, such payments
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0005| shall be made only from special funds authorized for that
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0006| purpose pursuant to the Public Building Energy Efficiency and
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0007| Water Conservation Act or other law.
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0008| D. A governmental unit may enter into an
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0009| installment payment contract or lease-purchase agreement for
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0010| the purchase and installation of energy or water conservation
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0011| measures, or both, pursuant to a guaranteed [energy]
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0012| utility savings contract, but only in accordance with the
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0013| provisions of the Public Building Energy Efficiency and Water
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0014| Conservation Act."
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0015| Section 4. Section 6-23-4 NMSA 1978 (being Laws 1993,
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0016| Chapter 231, Section 4) is amended to read:
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0017| "6-23-4. GUARANTEED [ENERGY] UTILITY SAVINGS
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0018| CONTRACT--PERFORMANCE BOND REQUIRED. [No] A governmental
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0019| unit shall not enter into a guaranteed [energy] utility
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0020| savings contract unless a performance bond that meets the
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0021| requirements of this section is delivered by the qualified
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0022| provider to the governmental unit and that bond becomes binding
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0023| on the parties upon the execution of the guaranteed utility
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0024| savings contract. The qualified provider shall provide a
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0025| performance bond satisfactory to the governmental unit and its
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0001| approving agency executed by a surety company authorized to do
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0002| business in this state and approved in federal circular 570
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0003| published by the United States treasury department or by the
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0004| state board of finance. The bond shall be in an amount equal
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0005| to the amount of the guarantee given by the qualified provider
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0006| in the guaranteed [energy] utility savings contract."
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0007| Section 5. Section 6-23-5 NMSA 1978 (being Laws 1993,
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0008| Chapter 231, Section 5) is amended to read:
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0009| "6-23-5. CONTRACT APPROVAL REQUIRED.--
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0010| A. [No] A governmental unit shall not enter
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0011| into a guaranteed [energy] utility savings contract with a
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0012| qualified provider or any installment payment contract or
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0013| lease-purchase agreement pursuant to that contract unless the
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0014| contracts and agreements are reviewed and approved as follows:
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0015| (1) for school districts, by the
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0016| superintendent of public instruction;
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0017| (2) for agencies, institutions and
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0018| instrumentalities of the state, by the secretary of general
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0019| services; and
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0020| (3) for municipalities and counties, by the
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0021| secretary of finance and administration.
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0022| B. The approval required under this section shall
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0023| be given upon:
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0024| (1) a determination that the contracts and
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0025| agreements comply with the provisions of the Public Building
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0001| Energy Efficiency and Water Conservation Act and other
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0002| applicable law; [and]
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0003| (2) certification by the energy, minerals and
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0004| natural resources department that the qualified provider of
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0005| energy conservation measures meets the experience requirements
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0006| set by the department and the guaranteed energy savings from
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0007| the energy conservation measures proposed appear to be
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0008| accurately estimated and reasonable; and
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0009| (3) certification by the state engineer's
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0010| office that the qualified provider of water conservation
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0011| measures meets the experience requirements set by that office
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0012| and the guaranteed water savings from the water conservation
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0013| measures proposed appear to be accurately estimated and
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0014| reasonable."
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0015| Section 6. Section 6-23-6 NMSA 1978 (being Laws 1993,
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0016| Chapter 231, Section 6) is amended to read:
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0017| "6-23-6. CONTRACTS AND AGREEMENTS NOT A GENERAL
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0018| OBLIGATION OF THE GOVERNMENTAL UNIT.--Payment obligations of a
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0019| governmental unit pursuant to a guaranteed [energy] utility
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0020| savings contract with a qualified provider and any installment
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0021| payment contract or lease-purchase agreement pursuant to a
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0022| guaranteed [energy] utility savings contract are not
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0023| general obligations of the governmental unit and are
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0024| collectible only from revenues pledged for that purpose in
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0025| accordance with the Public Building Energy Efficiency and
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0001| Water Conservation Act."
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0002| Section 7. A new Section 6-23-6.1 NMSA 1978 is enacted
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0003| read:
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0004| "6-23-6.1. [NEW MATERIAL] REPORTING AND RETENTION OF
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0005| UTILITY COST SAVINGS FOR STATE AGENCIES.--
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0006| A. A state agency entering into a guaranteed
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0007| utility savings contract with a qualified provider shall, no
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0008| later than thirty days after the close of the fiscal year,
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0009| furnish the energy, minerals and natural resources department a
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0010| consumption and savings report, in a format established jointly
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0011| by that department and the department of finance and
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0012| administration, which estimates any cost savings resulting from
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0013| the implementation of the guaranteed utility savings contract
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0014| during the fiscal year. The report shall include:
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0015| (1) the name or description of each facility
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0016| or major utility system covered by the report;
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0017| (2) utility account numbers;
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0018| (3) a record of monthly consumption of water,
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0019| energy by fuel type, or both; and
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0020| (4) a record of monthly per-unit cost of
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0021| water, energy by fuel type, or both.
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0022| B. If the consumption and savings report for a
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0023| state agency shows a utility or operating cost savings at the
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0024| end of the fiscal year that resulted from implementation of a
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0025| guaranteed utility savings contract and causes an unexpended
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0001| and unencumbered balance in the agency's utility line item, the
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0002| department of finance and administration shall carry forward
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0003| the dollar amount of the energy, water or operating cost
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0004| savings as a reserved designated fund balance to the subsequent
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0005| fiscal year.
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0006| C. Beginning the year after the utility cost
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0007| savings measures are implemented, and until any alternative
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0008| financing for a guaranteed utility savings contract is repaid,
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0009| or for a period of no more than five years, whichever is less,
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0010| all utility budgets and appropriations for the state agency
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0011| shall be based on:
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0012| (1) the energy or water consumption levels, or
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0013| both, before the energy or water conservation measures were
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0014| implemented;
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0015| (2) the same allowance for escalation or
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0016| decrease of utility costs given state agencies that did not
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0017| participate in a guaranteed utility savings contract; and
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0018| (3) any adjustments for acquisitions,
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0019| expansions, sale or disposition of state agency facilities.
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0020| D. At the end of the repayment period for the
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0021| guaranteed utility savings contract, or five years, whichever
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0022| is less, new budgets or appropriations for utilities shall
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0023| again be based upon actual utility consumption.
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0024| E. Upon carryover of the dollar amount of energy,
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0025| water or operating cost savings as a reserved designated fund
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0001| balance to the subsequent fiscal year, state agencies may
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0002| submit a budget adjustment request to use those funds for the
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0003| following purposes:
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0004| (1) up to one hundred percent of the funds may
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0005| be used for additional energy or water conservation measures,
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0006| or both; and
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0007| (2) after encumbrances for additional energy
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0008| or water conservation measures, or both, have been made, up to
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0009| fifty percent of the remaining funds may be used for purposes
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0010| consistent with the duties and responsibilities assigned to the
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0011| state agency, while the remaining funds shall revert to the
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0012| general fund.
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0013| F. For the purposes of this section, "state agency"
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0014| means an agency, institution or instrumentality of the state of
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0015| New Mexico eligible to receive income from lands granted for
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0016| the use of certain institutions and deposited in income funds
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0017| pursuant to Section 19-1-17 NMSA 1978. "State agency" does not
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0018| include a municipality, county or school district."
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0019| Section 8. Section 6-23-7 NMSA 1978 (being Laws 1993,
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0020| Chapter 231, Section 7) is amended to read:
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0021| "6-23-7. PUBLIC SCHOOL [ENERGY EFFICIENCY] UTILITY
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0022| CONSERVATION FUND CREATED--USE.--
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0023| A. The "public school [energy efficiency]
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0024| utility conservation fund" is created as a special fund in
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0025| the state treasury. The fund shall consist of money
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0001| transferred to the fund, from year to year, from the income of
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0002| the permanent fund and land income of which the common schools
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0003| are the beneficiary. No other money from any school district
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0004| or state source shall be deposited or paid into the public
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0005| school [energy efficiency] utility conservation fund.
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0006| B. Annually, after the calculation of the state
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0007| equalization guarantee [distributions] distribution has
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0008| been made, the superintendent of public instruction shall
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0009| determine the sum of the deductions made in the state
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0010| equalization guarantee [distributions] distribution of
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0011| school districts pursuant to Paragraph (6) of Subsection D of
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0012| Section 22-8-25 NMSA 1978 and shall certify that amount to the
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0013| secretary of finance and administration. Income from the
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0014| permanent fund and land income of which the common schools are
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0015| the beneficiary equal to that amount shall be transferred from
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0016| the common school current fund to the public school [energy
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efficiency] utility conservation fund.
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0018| C. Money in the public school [energy efficiency]
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0019| utility conservation fund is appropriated to the state
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0020| department of public education solely for the purpose of
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0021| disbursing money to school districts to make payments pursuant
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0022| to any guaranteed [energy] utility savings contract between
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0023| the school district and a qualified provider or any installment
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0024| contract or lease-purchase agreement for the purchase and
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0025| installation of energy or water conservation measures, or
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0001| both pursuant to that guaranteed [energy] utility savings
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0002| contract.
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0003| D. Disbursements from the public school [energy
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efficiency] utility conservation fund shall be made only to
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0005| school districts and only upon certification by the
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0006| superintendent of public instruction that the disbursement is
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0007| for a payment authorized by the Public Building Energy
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0008| Efficiency and Water Conservation Act.
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0009| E. The superintendent of public instruction shall
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0010| submit to the legislative finance committee prior to each
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0011| regular legislative session a list of school districts
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0012| proposing to enter into approved guaranteed [energy]
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0013| utility savings contracts in the succeeding fiscal year. The
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0014| list shall include information on the amount of the school
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0015| district's proposed annual payments and specific amounts that
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0016| utility and operational budget items are guaranteed to be
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0017| reduced to achieve the savings to make the payments.
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0018| F. Any unexpended or unencumbered balance remaining
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0019| in the public school [energy efficiency] utility
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0020| conservation fund at the end of any fiscal year shall be
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0021| transferred to the public school fund."
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0022| Section 9. Section 6-23-8 NMSA 1978 (being Laws 1993,
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0023| Chapter 231, Section 8) is amended to read:
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0024| "6-23-8. MUNICIPALITIES--USE OF CERTAIN REVENUES
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0025| AUTHORIZED.--Upon adoption of an ordinance by an affirmative
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0001| vote of a majority of the members of the governing body at any
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0002| regular or special meeting of the governing body called for
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0003| this purpose, a municipality may pledge any or all revenues not
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0004| otherwise pledged or obligated from gross receipts taxes
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0005| received by the municipality pursuant to Section 7-1-6.4 NMSA
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0006| 1978 and [Subsections A and E of] Section 7-1-6.12 NMSA 1978
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0007| for payments pursuant to a guaranteed [energy] utility
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0008| savings contract with a qualified provider and any installment
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0009| payment contract or lease-purchase agreement pursuant to that
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0010| guaranteed [energy] utility savings contract. The
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0011| ordinance shall declare the necessity for the guaranteed
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0012| [energy] utility savings contract and related contracts or
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0013| agreements and shall designate the source of the pledged
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0014| revenues. Any revenues pledged for such contract payments
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0015| shall be deposited in a special fund, and the municipality
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0016| shall not use any other revenues to make such payments. At the
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0017| end of each fiscal year, any money remaining in the special
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0018| fund after payment obligations are met may be transferred to
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0019| any other fund of the municipality."
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0020| Section 10. Section 6-23-9 NMSA 1978 (being Laws 1993,
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0021| Chapter 231, Section 9) is amended to read:
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0022| "6-23-9. COUNTIES--USE OF CERTAIN REVENUES AUTHORIZED.--
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0023| Upon adoption of an ordinance by an affirmative vote of a
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0024| majority of the members of the board of county commissioners at
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0025| any regular or special meeting of the board called for this
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0001| purpose, a county may pledge any or all of the revenue not
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0002| otherwise pledged or obligated from the first one-eighth of one
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0003| percent increment and of one-half of the revenue from the third
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0004| one-eighth of one percent increment of the county gross
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0005| receipts tax transferred to the county pursuant to [Subsection
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B of] Section 7-1-6.13 NMSA 1978 and any or all of the revenue
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0007| from the distribution related to the first one-eighth of one
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0008| percent increment made pursuant to Section 7-1-6.16 NMSA 1978
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0009| for the purpose of making payments pursuant to a guaranteed
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0010| [energy] utility savings contract with a qualified provider
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0011| or any installment payment contract or lease-purchase agreement
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0012| pursuant to that guaranteed [energy] utility savings
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0013| contract. The ordinance shall declare the necessity for the
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0014| guaranteed [energy] utility savings contract and related
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0015| contracts or agreements and shall designate the source of the
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0016| pledged revenues. Any revenues pledged for such contract
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0017| payments shall be deposited in a special fund and the county
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0018| shall not use any other county or state revenue to make such
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0019| payments. At the end of each fiscal year, any money remaining
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0020| in the special fund after the payment obligations are met may
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0021| be transferred to any other fund of the county."
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0022| Section 11. Section 6-23-10 NMSA 1978 (being Laws 1993,
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0023| Chapter 231, Section 10) is amended to read:
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0024| "6-23-10. STATE INSTITUTIONS AND BUILDINGS--USE OF
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0025| CERTAIN REVENUES AUTHORIZED.--Income from lands granted for the
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0001| use of certain institutions and public buildings and deposited
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0002| in income funds for such institutions and buildings pursuant to
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0003| Section 19-1-17 NMSA 1978 may be appropriated and pledged for
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0004| payments pursuant to any guaranteed [energy] utility
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0005| savings contract or related lease-purchase agreement or
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0006| installment payment contract pursuant to the Public Building
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0007| Energy Efficiency and Water Conservation Act. Any money so
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0008| appropriated shall be deposited in a special fund or account of
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0009| the institution or fund and that revenue and no other revenue
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0010| shall be used to make such payments pursuant to the Public
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0011| Building Energy Efficiency and Water Conservation Act."
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0012|
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0013| State of New Mexico
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0014| House of Representatives
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0015|
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0016| FORTY-THIRD LEGISLATURE
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0017| FIRST SESSION, 1997
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0018|
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0019|
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0020| February 17, 1997
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0021|
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0022|
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0023| Mr. Speaker:
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0024|
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0025| Your ENERGY AND NATURAL RESOURCES COMMITTEE, to
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0001| whom has been referred
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0002|
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0003| HOUSE BILL 736
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0004|
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0005| has had it under consideration and reports same with
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0006| recommendation that it DO PASS, amended as follows:
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0007|
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0008| 1. On page 5, after line 12, insert the following new
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0009| subsection:
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0010|
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0011| "E. A governmental unit may enter into a utility savings
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0012| contract pursuant to Section 13-1-129 NMSA 1978 in accordance
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0013| with the provisions of the Public Building Energy and Water
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0014| Conservation Efficiency Act.",
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0015|
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0016| and thence referred to the APPROPRIATIONS AND FINANCE
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0017| COMMITTEE.
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0018|
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0019| Respectfully submitted,
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0020|
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0021|
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0022|
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0023|
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0024|
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0025| James Roger Madalena, Chairman
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0001|
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0002|
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0003| Adopted Not Adopted
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0004|
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0005| (Chief Clerk) (Chief Clerk)
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0006|
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0007| Date
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0008|
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0009| The roll call vote was 7 For 0 Against
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0010| Yes: 7
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0011| Excused: M.P. Garcia, Getty, Picraux, Stewart, Salazar
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0012| Absent: None
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0013|
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0014|
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0015|
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0016| G:\BILLTEXT\BILLW_97\H0736 State of New Mexico
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0017| House of Representatives
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0018|
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0019| FORTY-THIRD LEGISLATURE
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0020| FIRST SESSION, 1997
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0021|
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0022|
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0023| March 1, 1997
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0024|
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0025|
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0001| Mr. Speaker:
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0002|
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0003| Your APPROPRIATIONS AND FINANCE COMMITTEE, to
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0004| whom has been referred
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0005|
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0006| HOUSE BILL 736, as amended
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0007|
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0008| has had it under consideration and reports same with
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0009| recommendation that it DO PASS, amended as follows:
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0010|
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0011| 1. On page 1, line 13, after "SAVINGS" insert "AND
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0012| CONSERVATION-RELATED OPERATING COST SAVINGS".
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0013|
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0014| 2. On page 2, line 3, after "or" insert "conservation-
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0015| related".
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0016|
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0017| 3. On page 4, line 1, before "operating" insert
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0018| "conservation-related".
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0019|
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0020| 4. On page 4, line 9, before "operating" insert
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0021| "conservation-
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0022| related".
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0023|
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0024| 5. On page 4, line 15, before "operational" insert
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0025| "conservation-related".
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0001|
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0002| 6. On page 4, line 19, before "operating" insert
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0003| "conservation-related".
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0004|
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0005| 7. On page 8, line 20, before "operating" insert
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0006| "conservation-related".
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0007|
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0008| 8. On page 8, line 25, before "operating" insert
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0009| "conservation-related".
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0010|
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0011| 9. On page 9, line 3, after "savings" insert "and
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0012| conservation-related operating cost savings".
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0013|
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0014| 10. On page 9, line 22, before "operating" insert
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0015| "conservation-related".
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0016|
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0017|
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0018|
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0019| .
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0020|
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0021| Respectfully submitted,
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0022|
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0023|
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0024|
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0025|
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0001|
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0002| Max Coll, Chairman
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0003|
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0004|
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0005| Adopted Not Adopted
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0006|
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0007| (Chief Clerk) (Chief Clerk)
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0008|
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0009| Date
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0010|
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0011| The roll call vote was 10 For 0 Against
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0012| Yes: 10
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0013| Excused: Heaton, Knowles, Pearce, Salazar, Taylor, Wallace,
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0014| Watchman
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0015| Absent: None
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0016|
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0017|
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0018| .117970.1
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0019| G:\BILLTEXT\BILLW_97\H0736
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0020|
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0021| FORTY-THIRD LEGISLATURE HB 736/a
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0022| FIRST SESSION, 1997
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0023|
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0024|
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0025| March 10, 1997
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0001|
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0002| Mr. President:
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0003|
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0004| Your CONSERVATION COMMITTEE, to whom has been referred
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0005|
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0006| HOUSE BILL 736, as amended
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0007|
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0008| has had it under consideration and reports same with
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0009| recommendation that it DO PASS, amended as follows:
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0010|
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0011| 1. On page 3, line 5, after "state," insert "including two-
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0012| and four-year institutions of higher education,".
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0013|
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0014| 2. On page 9, line 6, strike "five" and insert in lieu
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0015| thereof "ten".
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0016|
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0017| 3. On page 9, line 18, strike "five" and insert in lieu
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0018| thereof "ten".
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0019|
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0020| Respectfully submitted,
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0021|
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0022|
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0023|
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0024|
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0025| __________________________________
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0001| Michael S. Sanchez, Chairman
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0002|
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0003|
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0004|
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0005| Adopted_______________________ Not
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0006| Adopted_______________________
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0007| (Chief Clerk) (Chief Clerk)
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0008|
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0009|
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0010| Date ________________________
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0011|
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0012|
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0013| The roll call vote was 7 For 0 Against
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0014| Yes: 7
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0015| No: None
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0016| Excused: Davis, Macias, Payne
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0017| Absent: None
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0018|
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0019|
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0020| H0736C01 .118502.1
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