OK
Oklahoma House Bill HB2472

Oklahoma 2024 Regular Session

Oklahoma House Bill HB2472 Compare Versions

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334 BILL NO. 2472 By: Archer and Hill of the
435 House
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637 and
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839 Paxton of the Senate
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1645 An Act relating to public finance; amending 62 O.S.
1746 2021, Section 318, which relates to performance -based
1847 efficiency contracts; providing authorized method for
1948 initial payments; requiring certain savi ngs amount;
2049 and declaring an emergency .
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24-SUBJECT: Public finance
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2655 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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2856 SECTION 1. AMENDATORY 62 O.S. 202 1, Section 318, is
2957 amended to read as follows:
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3158 Section 318. A. For purposes of this section:
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3359 1. "Public entity" means any political subdivision of this
3460 state, or a public trust which has as a ben eficiary a political
3561 subdivision of this state, or any ins titution of higher education
3662 which is part of The Oklahoma State System of Higher Education;
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3863 2. "Performance-based efficiency contract" means a contract for
3964 the design, development, financing, inst allation and service of any
4065 improvement, repair, alteratio n or betterment of any building or
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4193 facility owned, operated or planned by a public entity; or any
4294 equipment, fixture or furnishing to be added to or used in any such
4395 building or facility; or any mai ntenance or operational strategy
4496 that is designed and impl emented that will reduce utility
4597 consumption or lower operating costs, result in annual operating
46-cost savings, generate additional revenues or avoid capital cost ENR. H. B. NO. 2472 Page 2
98+cost savings, generate additional revenues or avoid capital cost
4799 incurrence and may include, but is not limited to, one or more of
48100 the following:
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50101 a. utility services,
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52102 b. heating, ventilating or air conditioning system
53103 modifications or replacements and automated control
54104 systems,
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56105 c. replacement or modifications of lighting fixtures,
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58106 d. indoor air quality i mprovements to increase air
59107 quality that conform to the ap plicable state or local
60108 building code requirements when done in conjunction
61109 with other cost-saving measures,
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63110 e. any additional building infrastructure improvement,
64111 cost saving, life safety or any ot her improvement that
65112 provides long-term operating cost red uctions and is in
66113 compliance with state and local codes,
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68114 f. water-metering devices that increase efficiency or
69115 accuracy of water measurement and energy reduction, or
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71143 g. any facility operation and su pport programs that
72144 reduce operating cost;
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74145 3. "Qualified provider" means a person or business experienced
75146 or trained in the design, analysis and installation of energy
76147 conservation and facility management measures. A qualified provider
77148 must employ a professional engineer registered in the State of
78149 Oklahoma; and
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80150 4. "State governmental entity" means the State of Oklahoma or
81151 any agency, board, commission, authority, departme nt, public trust
82152 of which the state is the beneficiary or other instrumentality of
83153 state government, other than a public trust with the state as
84154 beneficiary whose jurisdiction is limited to one county, including,
85155 but not limited to, the following:
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87156 a. Oklahoma Municipal Power Authority,
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89157 b. Oklahoma Development Finance Authority,
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91-c. Oklahoma Industrial Finance Authority, ENR. H. B. NO. 2472 Page 3
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158+c. Oklahoma Industrial Finance Authority,
93159 d. Grand River Dam Authori ty,
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95160 e. Oklahoma Water Resources Board,
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97161 f. Northeast Oklahoma Public Facilities Authority,
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99162 g. Oklahoma Turnpike Aut hority,
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101163 h. Oklahoma Housing Finance Authority, and
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103164 i. Oklahoma Public, Industrial an d Cultural Facilities
104165 Authority.
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106193 B. In addition to any ot her legally permissible alternatives of
107194 entering into contracts, any public entity may enter into
108195 performance-based efficiency contracts with a qualified provider
109196 pursuant to the provisions of this section. The public entity may
110197 make an initial payment fr om any funds available. Further, any
111198 public entity may enter into an installment contract, lease purchase
112199 agreement or other contractual obligation for the purpose of
113200 financing performance -based efficiency projects for a term not to
114201 exceed the greater of twenty (20) years or the useful life of the
115202 project. A qualified provider to whom the contract is awarded shall
116203 be required to give a sufficient bond to the public entity for its
117204 faithful performance of the contract. In addition, the public
118205 entity may require performance bonds covering the annual amount of
119206 guaranteed savings over the contract term.
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121207 The contract's cost savings to the public entity must be
122208 guaranteed each year during the term of the agreement. The savings
123209 must be sufficient to offset the a nnual costs of the contract. Any
124210 initial payment from funds other than an installment agreement must
125211 also be offset by savings, as described herein, over the term of the
126212 agreement. In calculating cost savings, the public entity may
127213 consider capital cost avoidance and include additional revenue that
128214 is directly attributed to the performance -based efficiency contract.
129215 The contract shall provide for reimbursement to the public entity
130216 annually for any shortfall of guaranteed savings. Savings must be
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131244 measured, verified and documented during each year of the term and
132245 may be utilized to meet the annual debt service. This section shall
133246 constitute the sole authority necessary to enter into performance -
134247 based efficiency contracts, without regard to compliance with other
135248 laws which may specify additional procedural requirements for
136-execution of contracts. ENR. H. B. NO. 2472 Page 4
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249+execution of contracts.
138250 SECTION 2. It being immediately necessary for the preservation
139251 of the public peace, heal th or safety, an emergency is hereby
140252 declared to exist, by reason whereof this act shall take effect and
141-be in full force from and after its passage an d approval. ENR. H. B. NO. 2472 Page 5
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143-Passed the House of Representatives the 20th day of March, 2023
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147- Presiding Officer of the House
148- of Representatives
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153-Passed the Senate the 19th day of April, 2023.
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158- Presiding Officer of the Senate
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160-OFFICE OF THE GOVERNOR
161-Received by the Office of the Governor this ____________________
162-day of ___________________, 20_______, at _______ o'clock _______ M.
163-By: _________________________________
164-Approved by the Governor of the State of Oklahoma this _____ ____
165-day of ___________________, 20_______, at _______ o'clock _______ M.
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168- _________________________________
169- Governor of the State of Oklahoma
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171-OFFICE OF THE SECRETARY OF STATE
172-Received by the Office of the Secretary of State this __________
173-day of ___________________, 20_______, at _______ o'clock _______ M.
174-By: _________________________________
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253+be in full force from and after its passage an d approval.
254+COMMITTEE REPORT BY: COMMITTEE ON FINANCE
255+April 3, 2023 - DO PASS