General Assembly Raised Bill No. 6542 January Session, 2011 LCO No. 4210 *04210_______ET_* Referred to Committee on Energy and Technology Introduced by: (ET) General Assembly Raised Bill No. 6542 January Session, 2011 LCO No. 4210 *04210_______ET_* Referred to Committee on Energy and Technology Introduced by: (ET) AN ACT ESTABLISHING A PILOT PROGRAM FOR THE DEVELOPMENT OF AN ENERGY EFFICIENT ECONOMY. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. (Effective July 1, 2011) (a) As used in this section: (1) "Cost effective" means that the savings resulting from an energy saving measure outweigh the costs of such measure; (2) "E-auditor" means a state certified energy auditor who may be hired by the program administrator to perform energy saving measures under the pilot program established pursuant to this section; (3) "E-auditor cert" means a certificate issued to an auditor by the program administrator signifying that such auditor has met the E-auditor criteria and may now advertise himself or herself as an E-auditor; (4) "E-auditor criteria" means the standards established by the program administrator for a person to meet to become an E-auditor; (5) "E-contractor" means a state certified energy contractor; (6) "E-contractor cert" means a certificate issued to a contractor by the program administrator signifying that such contractor has met the E-contractor criteria and may now advertise himself or herself as an E-contractor; (7) "E-contractor criteria" means the standards established by the program administrator for a person to meet to become an E-contractor; and (8) "Energy-saving measure" means any improvement to a facility or other energy-consuming system designed to reduce energy or water consumption and operating costs and increase the operating efficiency of facilities or systems for their appointed functions, including, but not limited to, one or more of the following: (A) Replacement or modification of lighting and electrical components, fixtures or systems; (B) Heating, ventilation or air conditioning system modifications or replacements; (C) Water-conserving fixtures, appliances and equipment or the substitution of nonwater-using fixtures, appliances and equipment; (D) Water-conserving landscape irrigation equipment; (E) Changes in operation and maintenance practices; (F) Replacement or modification of windows and doors; (G) Installation or addition of insulation; (H) Automated or computerized energy control systems; (I) Cogeneration systems that produce steam or forms of energy, such as heat or electricity, for use primarily within a building or complex of buildings; and (J) Class I renewable energy or solar thermal systems. (b) The Departments of Public Works, Environmental Protection and Public Utility Control shall jointly establish a three-year energy efficiency pilot program to increase energy efficiency improvements in state and municipal-owned buildings. The departments shall jointly choose one of the three to serve as the program administrator. As part of the pilot program established pursuant to this subsection, the program administrator shall establish E-auditor and E-contractor criteria on or before October 1, 2011. Such criteria shall include, but not be limited to: (1) A request-for-certification form for applicants seeking an E-auditor cert; (2) procedures for an E-auditor cert; (3) E-contractor criteria; (4) a request-for-certification form for applicants seeking an E-contractor cert; (5) an E-contractor cert; and (6) requirements for criminal and financial history checks for any potential E-auditor or E-contractor. The program administrator shall advertise the E-auditor certs and E-contractor certs created pursuant to this subsection in relevant trade journals, online, through community organizations and by other means deemed advisable to maximize the response. (c) On or before December 1, 2011, the program administrator shall compile an inventory of buildings to target with the pilot program established pursuant to this section. (d) (1) On or before January 1, 2012, the program administrator shall issue a request for proposals to create a pool of qualified E-auditors to conduct energy audits on each building identified in the inventory compiled pursuant to subsection (c) of this section within three years. (2) When choosing a winning proposal, the program administrator shall consider the respondent's experience with (A) comprehensive energy efficiency audits; (B) post-installation project monitoring, data collection and reporting of savings; (C) overall project management and qualifications; (D) management capability; (E) financial stability; (F) projects of similar size and scope; and (G) other factors determined by the program administrator to be relevant and appropriate. (e) (1) Within thirty days of receipt of the energy audit for a particular building, the program administrator shall review the recommendations of the E-auditor and the projected cost savings for the particular building and shall issue a request for proposals for cost-effective, energy-saving measures for such building. (2) The program administrator shall choose, from among those E-contractors responding to a request for proposals for a particular target building, one E-contractor to perform the cost-effective, energy-savings measures. In selecting the E-contractor, the program administrator shall consider (A) overall project experience and qualifications; (B) management capability; (C) financial stability; (D) experience with projects of similar size and scope; and (E) other factors determined by the project administrator to be relevant and appropriate and relate to the ability to perform the project, including the number of other target buildings such E-contractor has been selected to perform such cost-effective, energy-savings measures and the proximity of the E-contractor's employees to the target building. (f) If realized energy savings are less than projected, the E-auditor and E-contractor for the target building shall each remit the lesser of twenty-five per cent of the difference between the actual energy savings and the projected energy savings for the first two years or fifty per cent of the amount it was paid under the contract entered into with the program administrator. (g) The program administrator shall (1) in consultation with the Energy Conservation Management Board, use moneys from the Energy Conservation and Load Management Fund, and (2) issue bonds pursuant to section 2 of this act to finance projects in the pilot program established pursuant to this section. At least eighty per cent of the savings realized as a result of any money spent on energy-saving measures in state-owned target buildings shall be used to repay said fund or bonds. (h) The program administrator may adopt regulations in accordance with the provisions of chapter 54 of the general statutes to establish procedures to carry out the provisions of the pilot program established pursuant to this section. (i) (1) The program administrator shall monitor the work of the E-auditors and E-contractors and shall report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to public works, public utilities and the environment the results of the pilot program established pursuant to this section within one year of its commencement and every quarter thereafter until the pilot program is complete. Such reports shall include, but not be limited to, the results of customer satisfaction surveys developed by the program administrator, summaries of all energy savings measures implemented during the preceding twelve months in target buildings and year-over-year energy savings. (2) Upon completion of the pilot program established pursuant to this section, the program administrator shall report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to public works, public utilities and the environment its recommendations for a similar program for all individuals and businesses in the state. Sec. 2. (Effective July 1, 2011) (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power, from time to time, to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate ___ dollars. (b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the program administrator chosen pursuant to subsection (b) of section 1 of this act for the purpose of funding energy-saving measures as part of the pilot program established pursuant to said section 1. (c) All provisions of section 3-20 of the general statutes, or the exercise of any right or power granted thereby, which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due. This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2011 New section Sec. 2 July 1, 2011 New section This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2011 New section Sec. 2 July 1, 2011 New section Statement of Purpose: To establish a pilot program aimed at increasing energy efficiency in state and municipal buildings by establishing a precertified pool of energy auditors and contractors. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]