Relating to the creation and duties of the state energy savings performance contract advisory council.
The legislation will affect how state agencies and institutions of higher education engage in energy savings performance contracts. By mandating the establishment of this advisory council, SB1973 seeks to streamline processes and create a foundation for standard practices in measuring and verifying cost savings from energy conservation measures. It establishes guidelines that require independent engineering reviews of projected savings and stipulates that performance contracts must meet specific criteria to qualify, thereby enhancing accountability and transparency in energy expenditures.
SB1973 establishes the State Energy Savings Performance Contract Advisory Council aimed at improving energy and water conservation in state operations through performance contracts. The advisory council is tasked with creating uniform guidelines and procedures for these contracts, which are agreements between state agencies and service providers designed to guarantee energy and utility savings. The bill emphasizes the importance of these savings in the context of ongoing financial considerations for state entities, including institutions of higher education and local governments.
One notable area of contention in the discussions of this bill is the balance of oversight and flexibility in executing energy savings contracts. Supporters of the bill assert that robust guidelines and oversight create greater assurance of value for taxpayer funds while facilitating better conservation outcomes. However, critics argue that stringent guidelines may stifle innovation and discourage participation in the energy performance contract sector, potentially slowing the state’s progress towards energy efficiency goals.