Provides relative to the execution of performance based energy efficiency contracts. (8/1/17) (EN NO IMPACT See Note)
The impact of SB112 on state laws is significant, as it introduces more stringent requirements for amending performance-based energy efficiency contracts. By specifying that substantial modifications to the scope of work necessitate legislative approval, the bill aims to prevent potential losses in projected energy savings, thereby promoting responsible financial management of public funds. This change is particularly crucial for ensuring that energy efficiency programs deliver the intended economic and environmental benefits, aligning state actions with broader energy conservation goals.
Senate Bill 112 is a legislative measure designed to enhance the governance of performance-based energy efficiency contracts within the state of Louisiana. The bill mandates that if a state agency makes unilateral changes to a contract's scope, the associated annual energy cost savings must be recalibrated. Specifically, if such changes result in a reduction of energy savings by 20% or more, the adjustments require approval from the Joint Legislative Committee on the Budget before the contract can be amended. This provision ensures a level of legislative oversight and accountability for significant changes to energy contracts.
The general sentiment surrounding SB112 appears to be supportive, particularly among legislators concerned with fiscal responsibility and energy efficiency initiatives. By placing checks and balances on the modification of contracts, the bill has been viewed as a necessary step to uphold accountability in government spending. There has been a broad consensus in the legislature with a unanimous vote in favor of the bill, indicating strong support across party lines for its objectives.
While the bill has largely been received positively, potential contention may arise regarding the extent of oversight and bureaucratic processes that could affect the timely execution of energy projects. Some critics might argue that the requirement for legislative approval could slow down processes and hinder the responsiveness of state agencies in adapting to necessary changes in energy contracts. Regardless, the primary focus of SB112 is to enhance the integrity and effectiveness of Louisiana's energy efficiency initiatives, balancing oversight with the need for efficiency.