California Senate Bill SB467 Amended / Bill

 BILL NUMBER: SB 467AMENDED BILL TEXT AMENDED IN ASSEMBLY JUNE 11, 2012 AMENDED IN SENATE MAY 31, 2011 AMENDED IN SENATE MAY 3, 2011 AMENDED IN SENATE APRIL 12, 2011 INTRODUCED BY Senator Pavley FEBRUARY 17, 2011 An act to add Section 15814.37 to the Government Code, relating to state buildings. LEGISLATIVE COUNSEL'S DIGEST SB 467, as amended, Pavley. Department of General Services: contracts for energy efficiency  information technology  products or services. The State Building Construction Act of 1955 requires that all new public buildings  , as specified,  be equipped with all energy efficiency measures, materials, and devices that are feasible and cost-effective, as defined, over the life of the building or the life of the energy efficiency measure, whichever is less, and sets forth the duties of the Department of General Services in this regard. This bill would additionally require the department to deem a contract for  the purchase of  an energy efficiency  information technology  product or service to be a no-cost or net-neutral cost contract when specified conditions are met. It would require the department to issue a nonmandatory master services agreement permitting owners, operators, and tenants of state facilities to procure a wide range of energy efficiency  information technology  products  or   and  services according to specified criteria.  It would require the department to post on its Internet Web site, as specified, a link to a document entitled "Record of Energy-Saving Projects" that contains specified information.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares as follows: (a) The state urgently needs to save state funds and in so doing needs to take cost-effective steps to improve energy efficiency. (b) These goals should not be impeded simply because there is no particular contracting method specifically permitting the state to purchase energy saving products or services where the state does not have to pay out-of-pocket for those technologies or services but nevertheless enjoys the monetary savings from those purchases. SEC. 2. Section 15814.37 is added to the Government Code, to read: 15814.37. (a) The Department of General Services shall deem a contract for  the purchase of  an energy efficiency  information technology  product or service to be a no-cost or net-neutral cost contract where funding for the contract is provided through either of the following methods: (1) The state is required, for the life of the contract, to pay the vendor in monthly or other scheduled increments where those payments are less than the difference between the amount the state was paying for energy, including the cost of maintaining the electrical and mechanical energy systems providing that facility's energy, for a facility or facilities prior to entering into the contract and what the state is paying for the same energy after entering into the contract. (2) The contract requires the vendor to pay the state a single sum at the execution of the contract to provide its  information  technology  products  or services, at a calculated net present value figure, in exchange for the state paying the vendor monthly or other scheduled increments in amounts equal to the difference between what the state was paying for energy for a facility or facilities prior to execution of the contract and for the same energy after execution of the contract, for the life of the contract. (b)  (1)    No later than  January   April  1, 2013, the department shall issue a nonmandatory master services agreement permitting owners, operators, and tenants of state facilities to procure a wide range of energy efficiency  information technology  products  or   and  services from a wide range of approved companies included in the agreement. The companies included in the agreement shall have a record of providing those products or services to governmental entities or private sector companies for at least two years  prior to   before  January 1,  2012   2013  . The department shall begin to work with relevant university centers no later than January 1,  2012   2013  , for guidance in the development of product and service specifications for the agreement.  (2) At a minimum, the master service agreement shall require the owner, operator, or tenant to submit to the department, 10 days before the purchase of the energy efficiency information technology product or service, all of the following:   (A) A document demonstrating that the owner, operator, or tenant has obtained at least two bids from companies on the master service agreement.   (B) A document forecasting the projected savings of purchasing the solution.   (C) A document describing how the owner, operator, or tenant will track, record, and retain a record of the savings achieved.  (c) Notwithstanding subdivision (b), the agreement shall include, among other things, a provision to permit pilot or demonstration contracts for energy efficiency  information technology  products or services. An energy efficiency  information technology  product or service shall not be excluded from this portion of the agreement because the companies included have been in business for less than two years, or it is an emerging technology or service that has been demonstrated to be effective in prototypical or limited production, that could become commercially viable and successful with appropriate market development efforts. The department shall begin to work with relevant university centers no later than January 1,  2012   2013  , for guidance in the development of product and service specifications for the pilot or demonstration portion of the agreement. (d) For purposes of this section, an "energy efficiency  information technology  product or service" means a  software- or hardware-   based  technology  product  or  technology  service  where the   that analyzes the energy use of buildings and related facilities. The energy efficiency information technology product or service must result in  energy cost savings to the state  that  are projected to exceed the compensation the state pays for the  energy efficiency information  technology  product  or service within  36   48  months of the initial deployment of the product or service.  The energy efficiency information technology product or service shall not be considered to be conservation measures or services pursuant to Section 4217.11.  (e) For purposes of this section, the difference between the amount the state would have paid for energy and the cost of maintaining energy consuming devices  prior to entering into the contract   before purchasing the energy efficiency information technology product or service  and what it is paying for the same energy and maintenance of energy consuming devices after  entering into the contract   purchasing the product or service  shall be based upon either of the following: (1) The amount the state paid to  a  utility  and maintenance service contractors for a kind of   for  energy at a particular facility in the  36   48  months prior to entering the contract, divided by month or another increment of time. (2) Another amount calculated by an outside third party selected by the state and agreed to by the vendor in the contract. (f)  Nothing in this   This  section shall  not  be construed to do any of the following: (1) Limit the department's ability to determine  if  a vendor is in breach of contract. (2) Prevent the state from requiring other terms and conditions, provided that those terms and conditions are not duplicative of, or in conflict with, and do not frustrate the intent of, this section. (3) Prevent the department from reasonably apportioning administrative or consulting costs required to implement the contracting methods set forth in this section over as many contracts as required to ensure both that the state does not lose the opportunity to achieve energy savings and the department is able to be fully reimbursed for those reasonable costs exclusively from savings. (4) Require the creation of a General Fund obligation in contravention of Section 1 of Article XVI of the California Constitution.  (5) Limit the application of the state's prevailing wage laws.   (g) No later than January 1, 2014, and annually thereafter, the department shall post a link on its Internet Web site, located on the Real Estate Services Division Web page, to a document entitled "Record of Energy-Saving Projects" that lists the projects that have achieved energy and fiscal savings to the state since the issuance of Executive Order No. B-18-12, and the estimated amount of energy and funds saved.   (h) This section shall not be construed to conflict with Section 1720.6 of the Labor Code.