This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h1139a.GOS
DATE: 1/27/2022
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 1139 Energy
SPONSOR(S): Government Operations Subcommittee, Drake
TIED BILLS: IDEN./SIM. BILLS: CS/SB 954
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Government Operations Subcommittee 16 Y, 0 N, As CS Skinner Toliver
2) State Administration & Technology
Appropriations Subcommittee
3) State Affairs Committee
SUMMARY ANALYSIS
Current law requires state agencies that wish to procure commodities or contractual services in excess of
$35,000 to use a competitive solicitation process. A competitive solicitation is the process of requesting and
receiving two or more sealed bids, proposals, or replies submitted by responsive vendors in accordance with
the terms of a competitive process. Depending on the type of contract and scope of work or goods sought, an
agency may use one of three procurement methods: invitation to bid, request for proposals, or invitation to
negotiate.
State agencies, in many circumstances, are required to take specified actions to promote energy efficiency and
other environmental benefits when conducting public business. When procuring new vehicles, state agencies,
state universities, community colleges, and local governments under a state purchasing plan must first define
the intended purpose for the vehicle and determine which statutorily listed use class applies. Vehicles must be
selected for the greatest fuel efficiency available for the determined class when fuel economy data is available.
Under the Florida Building Code, private providers may only perform building code inspection services that are
within the disciplines covered by their licensure or certification under specified law, including single-trade
inspections.
The bill revises the selection criteria that state agencies, state universities, community colleges, and local
governments must use when vehicles are being procured for purchase or leasing agreements. Under the bill,
these entities would be required to make selections based on the lowest lifetime ownership costs over five
years as determined by DMS, instead of greatest fuel efficiency available. The bill requires DMS to annually
publish a ranking of the vehicles on its website based on this criteria using available industry data. The bill also
requires sedans or light trucks purchased under a state purchasing plan to be ranked in the top five of the
department’s rankings, unless the Secretary of DMS approves an exception and states the reason. The bill
exempts law enforcement vehicles from this top five ranking requirement and removes the exception for
emergency response vehicles in certain circumstances.
The bill removes the requirement that all state agencies must use ethanol and biodiesel blended fuels when
available. It also removes the requirement that state agencies administering central fueling operations for
state-owned vehicles must procure biofuels for fleet needs to the greatest extent practicable.
The bill requires DMS to make recommendations to state agencies, including state colleges and universities,
and local governments regarding the procurement of electric and natural gas fuel vehicles and best practices
for integrating such vehicles into existing fleets before July 1, 2023.
Lastly, the bill amends the definition of “single-trade inspection” to include the installation of electric vehicle
charging stations, solar energy and energy storage installations or alterations. STORAGE NAME: h1139a.GOS PAGE: 2
DATE: 1/27/2022
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Procurement of Commodities or Contractual Services
Current law specifies the procedures for the procurement of commodities or contractual services.
1
The
Department of Management Services (DMS) provides uniform commodity and contractual service
procurement policies, rules, procedures, and forms for use by agencies and eligible users
2
, and
establishes purchasing agreements and procures state term contracts for commodities and contractual
services.
3
DMS is required to consider the life-cycle cost of commodities purchased by the state, when applicable
and feasible.
4
When calculating the life-cycle cost, the agency may consider the acquisition cost of the
product; the energy consumption and the projected cost of energy over the useful life of the product;
and the anticipated trade-in, resale, or salvage value of the product.
5
The agency is authorized to
establish by rule energy-efficiency standards for major energy-consuming products.
6
Florida law requires state agencies that wish to procure commodities or contractual services in excess
of $35,000
7
to use a competitive solicitation process.
8
A competitive solicitation is the process of
requesting and receiving two or more sealed bids, proposals, or replies submitted by responsive
vendors in accordance with the terms of a competitive process, regardless of procurement method.
9
Depending on the type of contract and scope of work or goods sought, an agency may use one of three
procurement methods:
Invitation to bid: When an agency is capable of defining the scope of work or specific commodity
sought, then an agency must use an invitation to bid (ITB). An ITB must include a detailed
description of the commodity or contractual service sought and whether the agency
contemplates renewal of the contract. If the agency contemplates renewal of the contract, then
each bid submitted in response to an ITB must include the price for each year for which the
contract may be renewed. Bid evaluations must include consideration of the total cost for each
year of the contract, including renewal years, and the contract must be awarded to the
responsible and responsive vendor who submits the lowest responsive bid.
10
Request for proposals: An agency must use a request for proposals (RFP) when the purposes
and uses for the contractual service or commodity sought can be specifically defined and the
agency is capable of identifying necessary deliverables. A vendor may respond with various
versions of services or commodities to meet the specification of the solicitation document.
Before issuing an RFP, the agency must specify in writing the reasons an ITB is not practicable.
An RFP must include a statement describing the commodities or contractual services sought,
the relative importance of price and other evaluation criteria, and whether the agency
contemplates renewal of the contract. The contract is awarded by written notice to the
responsible and responsive vendor whose proposal is most advantageous to the state;
11
or
Invitation to negotiate: An invitation to negotiate (ITN) is a solicitation used by an agency that is
intended to determine the best method for achieving a specific goal or solving a particular
problem. It identifies one or more responsive vendors with which the agency may negotiate in
1
Chapter 287, F.S.
2
Section 287.032, F.S.
3
Section 287.042(2)(a), F.S.
4
Section 287.083(1), F.S.
5
Section 287.083(5), F.S.
6
Section 287.083(3)(a), F.S.
7
Section 287.017(2), F.S.
8
Section 287.057(1), F.S.
9
Section 287.012(6), F.S.
10
Section 287.057(1)(a), F.S.
11
Section 287.057(1)(b), F.S. STORAGE NAME: h1139a.GOS PAGE: 3
DATE: 1/27/2022
order to receive the best value. Before issuing an ITN, the agency head must specify in writing
the reasons an ITB or an RFP are not practicable. An ITN must include questions being
explored, the facts being sought, and the specific goals of the solicitation. The agency may
select one or more vendors to begin negotiations and then award the contract to the responsible
and responsive vendor that the agency determines will provide the best value to the state.
12
Commodities or contractual services available only from a single source may be exempt from the
competitive solicitation requirement.
13
Current law specifies processes an agency must follow in this
circumstance.
14
Climate-friendly Public Business
Current law requires state agencies, in many circumstances, to take specified actions to promote
energy efficiency and other environmental benefits when conducting public business.
15
These actions
include:
Consulting the Florida Climate-Friendly Preferred Products List
16
when procuring products from
state term contracts
17
and procuring such products if the price is comparable;
18
Contracting for meeting and conference space only with facilities that have received a special
designation from the Department of Environmental Protection for best practices in water,
energy, and waste efficiency standards, absent a determination from the agency head no other
viable alternative exists;
19
Ensuring all maintained vehicles meet minimum maintenance schedules shown to reduce fuel
consumption and reporting compliance to DMS;
20
and
Using ethanol and biodiesel blended fuels when available. State agencies administering central
fueling operations for state-owned vehicles shall procure biofuels for fleet needs to the greatest
extent practicable.
21
Additionally, when procuring new vehicles, state agencies, state universities, community colleges, and
local governments that purchase vehicles under a state purchasing plan must first define the intended
purpose for the vehicle and determine which of the statutorily listed use class
22
the vehicle is being
procured for.
23
These vehicles must be selected for the greatest fuel efficiency available for the
determined given use class when fuel economy data is available.
24
Exceptions may be made for
emergency response vehicles in certain circumstances.
25
Florida Building Code
The Florida Building Codes Act
26
exists to provide a mechanism for the uniform adoption, updating,
amendment, interpretation, and enforcement of the Florida Building Code (Building Code).
27
The
Building Code consists of a single set of documents that apply to the design, construction, erection,
12
Section 287.057(1)(c), F.S.
13
Section 287.057(3)(c), F.S.
14
Id.
15
Section 286.29, F.S.
16
The Florida Climate-Friendly Preferred Products List is developed by DMS, which works with the Department of Environmental
Protection to continually assess the list. The list identifies specific products and vendors that offer energy efficiency or other
environmental benefits over competing products. See s. 286.29(1), F.S.
17
A state term contract is a contract for commodities or contractual services that is competitively procured by DMS and is used by
agencies and other eligible users. See ss. 287.012(28), F.S. and 287.042(2)(a), F.S.
18
Section 286.29(1), F.S.
19
Section 286.29(2), F.S.
20
Section 286.29(3), F.S.
21
Section 286.29(5), F.S.
22
Listed vehicle use classes are the following: state business travel, designated operator; state business travel, pool operators;
construction, agricultural, or maintenance work; conveyance of passengers; conveyance of building or maintenance materials and
supplies; off-road vehicle, motorcycle, or all-terrain vehicle; emergency response; or other. See s. 286.29(4), F.S.
23
Section 286.29(4), F.S.
24
Id.
25
Id.
26
Part IV, Chapter 553, F.S.
27
Section 553.72(1), F.S. STORAGE NAME: h1139a.GOS PAGE: 4
DATE: 1/27/2022
alteration, modification, repair, or demolition of public or private buildings, structures, or facilities in
Florida, and it must be applied, administered, and enforced uniformly and consistently throughout
jurisdictions.
28
Property owners or the property owner’s contractor may hire private providers
29
to provide building
code inspection services.
30
A private provider and any duly authorized representative may only perform
building code inspection services that are within the disciplines covered by that’s person’s licensure or
certification under specified law, including single-trade inspections.
31
A single-trade inspection is:
any inspection focused on a single construction trade, such as plumbing,
mechanical, or electrical. The term includes, but is not limited to, inspections of
door or window replacements; fences and block walls more than 6 feet high from
the top of the wall to the bottom of the footing; stucco or plastering; reroofing with
no structural alteration; HVAC replacements; ductwork or fan replacements;
alteration or installation of wiring, lighting, and service panels; water heater
changeouts; sink replacements; and repiping.
32
A private provider may not provide building code inspection services upon any building designed or
constructed by the private provider or the private provider’s firm.
33
Current law specifies the process
that a property owner or the property owner’s contractor must follow in notifying the local building
official when hiring a private provider to provide building code inspection services, including single-
trade inspections.
34
Effect of the Bill
The bill revises the selection criteria that state agencies, state universities, community colleges, and
local governments must use when vehicles are being procured for purchase or leasing agreements.
Under the bill, these entities would be required to make selections based on the lowest lifetime
ownerships costs over five years as determined by DMS, instead of greatest fuel efficiency available.
The bill requires DMS to annually publish a ranking of the vehicles on its website based on the lowest
cost of ownership over five years using available industry data. The bill also requires that any vehicle
that is a sedan or a light truck that is purchased under a state purchasing plan must be ranked in the
top five of the department’s rankings, unless the Secretary of DMS approves an exception and states
the reason. The bill exempts law enforcement vehicles from this top five ranking requirement and
removes the exception for emergency response vehicles in certain circumstances.
The bill removes the requirement that all state agencies must use ethanol and biodiesel blended fuels
when available. It also removes the requirement that state agencies administering central fueling
operations for state-owned vehicles must procure biofuels for fleet needs to the greatest extent
practicable.
Before July 1, 2023, the bill requires DMS to make recommendations to state agencies, including state
colleges and universities, and local governments regarding the procurement of electric and natural gas
fuel vehicles and best practices for integrating such vehicles into existing fleets.
Lastly, the bill amends the definition of “single-trade inspection” to include the installation of electric
vehicle charging stations, solar energy and energy storage installations or alterations, thus allowing
certain private providers of building code inspection services to inspect those fixtures.
28
Id.
29
A private provider is a person licensed as a building code administrator under part XII of chapter 468, as an engineer under chapter
471, or as an architect under chapter 481. It can also include a person who holds a standard certificate under part XII of chapter 468 in
certain circumstances. See s. 553.791(1)(n), F.S.
30
Section 553.791(2)(a), F.S.
31
Section 553.791(3), F.S.
32
Section 553.791(1)(p), F.S.
33
Section 553.791(3), F.S.
34
Section 553.791(4), F.S. STORAGE NAME: h1139a.GOS PAGE: 5
DATE: 1/27/2022
B. SECTION DIRECTORY:
Section 1 amends s. 286.29, F.S., relating to climate-friendly public business.
Section 2 creates an unnumbered section of law requiring DMS to make certain recommendations to
specified entities.
Section 3 amends s. 553.791, F.S., relating to alternative plans review and inspection.
Section 4 provides an effective date of July 1, 2022.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
None.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. This bill does not appear to require counties or municipalities to spend funds or take
action requiring the expenditures of funds; reduce the authority that counties or municipalities have
to raise revenues in the aggregate; or reduce the percentage of state tax shared with counties or
municipalities.
2. Other:
Article III, s. 6 of the Florida Constitution provides that “[e]very law shall embrace but one subject and
matter properly connected therewith, and the subject shall be briefly expressed in the title.” However, STORAGE NAME: h1139a.GOS PAGE: 6
DATE: 1/27/2022
an act “may be as broad as the Legislature chooses as long as the matters included in the act have
a natural or logical connection.”
35
B. RULE-MAKING AUTHORITY:
None.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On January 27, 2022, the Government Operations Subcommittee adopted a strike-all amendment and
reported the bill favorably as a committee substitute. The amendment changed the bill in the following
ways:
Specified that certain vehicles procured under a purchase or leasing agreement must be procured
based on the lowest lifetime ownership costs over five years as determined by DMS;
Required DMS to annually publish on its website vehicle rankings based on this criteria using
available industry data;
Required sedans and light trucks purchased under a state purchasing plan to be in the top five of
DMS’s rankings, unless the Secretary of DMS approves an exception and states the reason;
Exempted law enforcement vehicles from the top five ranking requirement;
Removed the exception for emergency response vehicles in certain circumstances; and
Required DMS’s recommendations to also include recommendations regarding procurement of
natural gas fuel vehicles and best practices for integrating such vehicles into existing fleets.
This analysis is drafted to the committee substitute as adopted by the Government Operations Subcommittee.
35
Chenoweth v. Kemp, 396 So. 2d 1122, 1124 (Fla. 1981).