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Florida Senate - 2008 PROPOSED COMMITTEE SUBSTITUTE

Bill No. SB 316

565944

585-04473-08

Proposed Committee Substitute by the Committee on Governmental

Operations.

1

A bill to be entitled

2

An act relating to energy use; amending s. 255.251, F.S.;

3

revising a short title; amending s. 255.252, F.S.;

4

revising criteria for energy conservation and

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sustainability for state-owned buildings; requiring

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buildings constructed and financed by the state to meet

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certain environmental standards approved by the Department

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of Management Services; requiring state agencies to

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identify state-owned buildings that are suitable for

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guaranteed energy performance savings contracts; providing

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requirements and procedures therefor; requiring the

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Department of Management Services to evaluate identified

13

facilities and develop an energy efficiency project

14

schedule; providing criteria for such schedule;

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establishing standards for the purchase of biodiesel

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diesel fuel for use in state-owned diesel vehicles and

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equipment; amending s. 255.253, F.S.; defining the terms

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"sustainable building" and "sustainable building rating";

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amending s. 255.254, F.S.; revising provisions relating to

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the analysis of the life-cycle costs of state facilities;

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requiring an energy performance analysis of leased

22

facilities; amending s. 255.255, F.S.; revising energy

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conservation performance guidelines to be used in life-

24

cycle cost analyses; amending s. 287.063, F.S.;

25

prohibiting the term of payment for consolidated equipment

26

finance contracts from extending beyond the anticipated

27

useful life of the equipment financed; deleting the

28

requirement that the Chief Financial Officer establish

29

criteria that prohibits a state agency from obligating an

30

annualized amount of payments for certain deferred payment

31

purchases; amending s. 287.064, F.S.; extending the period

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of time allowed for the repayment of funds for certain

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purchases relating to energy conservation measures;

34

requiring guaranteed energy performance savings

35

contractors to provide for the replacement or the

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extension of the useful life of the equipment during the

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term of a contract; amending s. 287.16, F.S.; providing

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additional duties for the Department of Management

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Services relating to the energy efficiency of state

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vehicles; creating s. 377.907, F.S.; requiring the Florida

41

Energy Commission to develop Lead-by-Example initiatives

42

to help defray energy costs and to develop recommendations

43

to promote energy efficiency and clean energy

44

technologies; requiring a report to the Legislature by

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December 31, 2009, and periodically thereafter; amending

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s. 489.145, F.S.; revising provisions relating to

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guaranteed energy performance savings contracting by state

48

agencies to address energy-related operational savings;

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revising definitions; revising criteria for proposed

50

contracts; specifying documentation that must be submitted

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for contract review by the Chief Financial Officer;

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creating s. 1013.441, F.S.; establishing the Green Schools

53

Pilot Project; providing Legislative intent; providing for

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the selection of three school districts by the State Board

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of Education; providing for the payment of additional

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costs associated with meeting specified building

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construction standards that maximize energy efficiency and

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minimize adverse environmental effects; providing for the

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distribution of funding for the project; providing for a

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report to the Legislature and the Commissioner of

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Education; establishing standards for the purchase of

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ethanol for use in state-owned flex-fuel vehicles;

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providing for administration by the Department of

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Management Services; requiring that the department

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annually report to the Legislature the extent of biodiesel

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and ethanol use in state-owned vehicles; establishing

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standards for the purchase of biodiesel fuel by school

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district transportation services; providing an effective

69

date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Section 255.251, Florida Statutes, is amended to

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read:

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     255.251 Energy Conservation and Sustainable in Buildings

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Act; short title.--This act may shall be cited as the "Florida

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Energy Conservation and Sustainable in Buildings Act of 1974."

78

     Section 2.  Section 255.252, Florida Statutes, is amended to

79

read:

80

     255.252  Findings and intent.--

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     (1)  Operating and maintenance expenditures associated with

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energy equipment and with energy consumed in state-financed and

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leased buildings represent a significant cost over the life of a

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building. Energy conserved by appropriate building design not

85

only reduces the demand for energy but also reduces costs for

86

b

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estimated to use from 20 to 80 percent more energy than would be

88

required if energy-conserving designs were used. The size,

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design, orientation, and operability of windows, the ratio of

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ventilating air to air heated or cooled air, the level of

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lighting consonant with space-use requirements, the handling of

92

occupancy loads, and the ability to zone off areas not requiring

93

equivalent levels of heating or cooling are but a few of the

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factors considerations necessary to consider when conserving

95

energy.

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     (2) Significant efforts are needed to build energy-

97

efficient state-owned buildings that meet environmental standards

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underway by the General Services Administration, the National

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Institute of Standards and Technology, and others to detail the

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considerations and practices for energy conservation in

101

buildings. Most important is that energy-efficient designs

102

provide energy savings over the life of the building structure.

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Conversely, energy-inefficient designs cause excess and wasteful

104

energy use and high costs over that life. With buildings lasting

105

many decades and with energy costs escalating rapidly, it is

106

essential that the costs of operation and maintenance for energy-

107

using equipment and sustainable materials be included in all

108

design proposals for state-owned state buildings.

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     (3) In order for that such energy-efficiency and

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sustainable materials considerations to become a function of

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building design, and also a model for future application in the

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private sector, it shall be the policy of the state that

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buildings constructed and financed by the state be designed and

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constructed to meet the United States Green Building Council

115

(USGBC) Leadership in Energy and Environmental Design (LEED)

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rating system, Green Building Initiative's Green Globes rating

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system, Florida Green Building Coalition standards, or a

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nationally recognized, high-performance green building rating

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system as approved by the department in a manner which will

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minimize the consumption of energy used in the operation and

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maintenance of such buildings. It is further the policy of the

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state, when economically feasible, to retrofit existing state-

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owned buildings in a manner that which will minimize the

124

consumption of energy used in the operation and maintenance of

125

such buildings.

126

     (4)  In addition to designing and constructing new buildings

127

to be energy efficient energy-efficient, it shall be the policy

128

of the state to operate, maintain, and renovate existing state-

129

owned state facilities, or provide for their renovation, in a

130

manner that which will minimize energy consumption and maximize

131

their sustainability as well as ensure that facilities leased by

132

the state are operated so as to minimize energy use. Agencies are

133

encouraged to consider shared savings financing of such energy

134

projects, using contracts that which split the resulting savings

135

for a specified period of time between the agency and the private

136

firm or cogeneration contracts which otherwise permit the state

137

to lower its energy costs. Such energy contracts may be funded

138

from the operating budget.

139

     (5) Each state agency must identify and compile a list of

140

all state-owned buildings within its inventory that it determines

141

are suitable for a guaranteed energy performance savings contract

142

pursuant to s. 489.145. The list shall be submitted to the

143

Department of Management Services by December 31, 2008, and shall

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include any criteria used to determine suitability. The list of

145

suitable buildings shall be developed from the list of state-

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owned facilities that are more than 5,000 square feet in area and

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for which the agency is responsible for paying the expenses of

148

utilities and other operating expenses related to energy use. In

149

consultation with each department secretary or director, by March

150

1, 2009, the Department of Management Services shall evaluate

151

each agency's facilities that are suitable for energy

152

conservation projects and shall develop an energy efficiency

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project schedule based on factors such as project magnitude,

154

efficiency and effectiveness of energy conservation measures to

155

be implemented, and other factors that may prove to be

156

advantageous to pursue. The schedule shall provide a deadline for

157

guaranteed energy performance savings contract improvements to be

158

made to the state-owned buildings.

159

     Section 3.  Subsections (6) and (7) are added to section

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255.253, Florida Statutes, to read:

161

     255.253  Definitions; ss. 255.251-255.258.--

162

     (6) "Sustainable building" means a building that is healthy

163

and comfortable for its occupants and is economical to operate

164

while conserving resources, including energy, water, raw

165

materials, and land, and minimizing the generation of toxic

166

materials and waste in its design, construction, landscaping, and

167

operation.

168

     (7) "Sustainable building rating" means a rating

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established by the United States Green Building Council (USGBC)

170

Leadership in Energy and Environmental Design (LEED) rating

171

system, Green Building Initiative's Green Globes rating system,

172

the Florida Green Building Coalition standards, or a nationally

173

recognized, high-performance green building rating system

174

approved by the department.

175

     Section 4.  Section 255.254, Florida Statutes, is amended to

176

read:

177

     255.254 No Facility constructed or leased without life-

178

cycle costs analysis.--

179

     (1) A No state agency may not shall lease, construct, or

180

have constructed, within limits prescribed herein, a facility

181

without having secured from the department an a proper evaluation

182

of the proposed facility's life-cycle costs based on sustainable

183

building ratings, as computed by an architect or engineer.

184

Furthermore, construction shall proceed only upon disclosing, for

185

the facility chosen, the facility's life-cycle costs as

186

determined in s. 255.255, its sustainable building rating goal,

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and the capitalization of the initial construction costs of the

188

building. In addition to its sustainable building rating goal,

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the life-cycle costs shall be a primary consideration in the

190

selection of a building design. Such analysis shall be required

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only for construction of buildings with an area of 5,000 square

192

feet or greater. For leased buildings of 5,000 areas of 20,000

193

square feet or greater within a given building boundary, an

194

energy performance a life-cycle analysis shall be performed, and

195

a lease may shall only be made only if where there is a showing

196

that the energy life-cycle costs incurred by the state are

197

minimal compared to those of available like facilities.

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     (2) A On and after January 1, 1979, no state agency may not

199

shall initiate construction or have construction initiated, prior

200

to obtaining approval thereof by the department, on a facility or

201

self-contained unit of any facility, the design and construction

202

of which incorporates or contemplates the use of an energy system

203

other than a solar energy system, if when the life-cycle costs

204

analysis prepared by the department has determined that a solar

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energy system is the most cost-efficient energy system for the

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facility or unit.

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     (3) If a After September 30, 1985, when any state agency

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must replace or supplement major items of energy-consuming

209

equipment in an existing state-owned facility or leased

210

facilities or any self-contained unit of a any facility with

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other major items of energy-consuming equipment, the selection of

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such items shall be made on the basis of a life-cycle cost

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analysis of alternatives in accordance with rules adopted

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promulgated by the department under s. 255.255.

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     Section 5.  Subsection (1) of section 255.255, Florida

216

Statutes, is amended to read:

217

     255.255  Life-cycle costs.--

218

     (1) The department shall adopt promulgate rules and

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procedures, including energy conservation performance guidelines

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based on sustainable building ratings, for conducting a life-

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cycle cost analysis of alternative architectural and engineering

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designs and alternative major items of energy-consuming equipment

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to be retrofitted in existing state-owned or leased facilities

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and for developing energy performance indices to evaluate the

225

efficiency of energy utilization for competing designs in the

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construction of state-owned state-financed and leased facilities.

227

     Section 6.  Paragraph (b) of subsection (2) and subsection

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(5) of section 287.063, Florida Statutes, are amended to read:

229

     287.063  Deferred-payment commodity contracts; preaudit

230

review.--

231

     (2)

232

     (b)  The Chief Financial Officer shall establish, by rule,

233

criteria for approving purchases made under deferred-payment

234

contracts which require the payment of interest. Criteria shall

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include, but not be limited to, the following provisions:

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     1. A No contract may not shall be approved in which

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interest exceeds the statutory ceiling contained in this section.

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However, the interest component of any master equipment financing

239

agreement entered into for the purpose of consolidated financing

240

of a deferred-payment, installment sale, or lease-purchase shall

241

be deemed to comply with the interest rate limitation of this

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section if so long as the interest component of every interagency

243

agreement under such master equipment financing agreement

244

complies with the interest rate limitation of this section.

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     2. A No deferred-payment purchase for less than $30,000 may

246

not shall be approved, unless it can be satisfactorily

247

demonstrated and documented to the Chief Financial Officer that

248

failure to make such deferred-payment purchase would adversely

249

affect an agency in the performance of its duties. However, the

250

Chief Financial Officer may approve any deferred-payment purchase

251

if the Chief Financial Officer determines that such purchase is

252

economically beneficial to the state.

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     3. No agency shall obligate an annualized amount of

254

payments for deferred-payment purchases in excess of current

255

operating capital outlay appropriations, unless specifically

256

authorized by law or unless it can be satisfactorily demonstrated

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and documented to the Chief Financial Officer that failure to

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make such deferred-payment purchase would adversely affect an

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agency in the performance of its duties.

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     3.4. A No contract may not shall be approved which extends

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payment beyond 5 years, unless it can be satisfactorily

262

demonstrated and documented to the Chief Financial Officer that

263

failure to make such deferred-payment purchase would adversely

264

affect an agency in the performance of its duties. The payment

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term may not exceed the useful life of the equipment unless the

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contract provides for the replacement or the extension of the

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useful life of the equipment during the term of the loan.

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     (5) For purposes of this section, the annualized amount of

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any such deferred payment commodity contract must be supported

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from available recurring funds appropriated to the agency in an

271

appropriation category, other than the expense appropriation

272

category as defined in chapter 216, which that the Chief

273

Financial Officer has determined is appropriate or which that the

274

Legislature has designated for payment of the obligation incurred

275

under this section.

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     Section 7.  Subsections (10) and (11) of section 287.064,

277

Florida Statutes, are amended to read:

278

     287.064  Consolidated financing of deferred-payment

279

purchases.--

280

     (10)  Costs incurred pursuant to a guaranteed energy

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performance savings contract, including the cost of energy

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conservation measures, each as defined in s. 489.145, may be

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financed pursuant to a master equipment financing agreement;

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however, the costs of training, operation, and maintenance may

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not be financed. The period of time for repayment of the funds

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drawn pursuant to the master equipment financing agreement under

287

this subsection may exceed 5 years but may not exceed 20 10 years

288

for energy conservation measures pursuant to s. 489.145,

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excluding the costs of training, operation, and maintenance. The

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guaranteed energy performance savings contractor shall provide

291

for the replacement or the extension of the useful life of the

292

equipment during the term of the contract.

293

     (11)  For purposes of consolidated financing of deferred

294

payment commodity contracts under this section by a state agency,

295

the annualized amount of any such contract must be supported from

296

available recurring funds appropriated to the agency in an

297

appropriation category, other than the expense appropriation

298

category as defined in chapter 216, which that the Chief

299

Financial Officer has determined is appropriate or that the

300

Legislature has designated for payment of the obligation incurred

301

under this section.

302

     Section 8.  Subsections (12), (13), (14), and (15) are added

303

to section 287.16, Florida Statutes, to read:

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     287.16  Powers and duties of department.--The Department of

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Management Services shall have the following powers, duties, and

306

responsibilities:

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     (12) To assess the transportation-related energy use of

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state agencies, including a fleet fuel analysis of motor vehicles

309

and light trucks by class.

310

     (13) To require scheduled vehicle maintenance on all agency

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and state fleet motor vehicles. Compliance shall be measured

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through the department's Equipment Management Information System

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with annual reports to the Legislature.

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     (14) To require the use of ethanol and biodiesel when

315

locally available and to encourage the development of renewable

316

fuel fueling facilities for both public and private-sector motor

317

vehicles.

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     (15) To conduct an inventory and determine the percentage

319

of motor vehicles in use purchased with state funds which are

320

flexible motor fuel vehicles or hybrid motor vehicles.

321

Notwithstanding s. 287.151, the department shall purchase over

322

the next 3 years only vehicles that have the greatest fuel

323

efficiency in a given class. In implementing this provision, the

324

department may exempt special purpose, law enforcement, and heavy

325

duty vehicles.

326

     Section 9.  Section 377.907, Florida Statutes, is created to

327

read:

328

     377.907 Lead-by-Example initiatives.--

329

     (1) The Florida Energy Commission shall develop Lead-by-

330

Example initiatives to help state, county, and local governments

331

save money on energy costs. The commission shall also develop

332

recommendations to promote energy efficiency and clean energy

333

technologies by the public and private sectors.

334

     (a) Recommendations by the commission shall, at a minimum,

335

include a requirement that all new state buildings be built in

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compliance with Leadership in Energy and Environmental Design

337

(LEED) standards, Green Globes standards, Florida Green Building

338

Coalition standards, or any other nationally recognized and

339

verified energy efficiency building standard.

340

     (b) The commission shall recommend energy efficient

341

operating policies for state buildings to be implemented by the

342

Florida Energy Office or appropriate state agency.

343

     (2) The commission shall submit its first recommendations

344

in its annual report to the Legislature by December 31, 2009.

345

Periodically thereafter, the commission shall submit

346

recommendations for Lead-by-Example initiatives to the

347

Legislature.

348

     Section 10.  Section 489.145, Florida Statutes, is amended

349

to read:

350

     489.145  Guaranteed energy performance savings

351

contracting.--

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     (1)  SHORT TITLE.--This section may be cited as the

353

"Guaranteed Energy Performance Savings Contracting Act."

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     (2)  LEGISLATIVE FINDINGS.--The Legislature finds that

355

i

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can reduce the amount of energy consumed and produce immediate

357

and long-term savings. It is therefore the policy of this state

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to encourage agencies to invest in energy conservation measures

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in order that reduce energy consumption, produce a cost savings

360

for the agency, and improve the quality of indoor air in public

361

facilities and to operate, maintain, and, when economically

362

feasible, build or renovate existing agency facilities in such a

363

manner as to minimize energy consumption and maximize energy

364

savings. It is further the policy of this state to encourage

365

agencies to reinvest any energy savings resulting from energy

366

conservation measures in additional energy conservation efforts.

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     (3)  DEFINITIONS.--As used in this section, the term:

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     (a)  "Agency" means the state, a municipality, or a

369

political subdivision.

370

     (b) "Energy conservation measure" means a training program,

371

facility alteration, or an equipment purchase to be used in new

372

construction, including an addition to an existing facility,

373

which reduces energy or energy-related operating costs and

374

includes, but is not limited to:

375

     1.  Insulation of the facility structure and systems within

376

the facility.

377

     2.  Storm windows and doors, caulking or weatherstripping,

378

multiglazed windows and doors, heat-absorbing, or heat-

379

reflective, glazed and coated window and door systems, additional

380

glazing, reductions in glass area, and other window and door

381

system modifications that reduce energy consumption.

382

     3.  Automatic energy control systems.

383

     4.  Heating, ventilating, or air-conditioning system

384

modifications or replacements.

385

     5.  Replacement or modifications of lighting fixtures to

386

increase the energy efficiency of the lighting system, which, at

387

a minimum, conforms must conform to the applicable state or local

388

building code.

389

     6.  Energy recovery systems.

390

     7.  Cogeneration systems that produce steam or forms of

391

energy such as heat, as well as electricity, for use primarily

392

within a facility or complex of facilities.

393

     8. Energy conservation measures that reduce Btu, kW, or kWh

394

consumed or provide long-term operating cost reductions or

395

significantly reduce Btu consumed.

396

     9.  Renewable energy systems, such as solar, biomass, or

397

wind systems.

398

     10.  Devices that reduce water consumption or sewer charges.

399

     11.  Storage systems, such as fuel cells and thermal

400

storage.

401

     12.  Generating technologies, such as microturbines.

402

     13.  Any other repair, replacement, or upgrade of existing

403

equipment.

404

     (c)  "Energy cost savings" means a measured reduction in the

405

cost of fuel, energy consumption, and stipulated operation and

406

maintenance created from the implementation of one or more energy

407

conservation measures when compared with an established baseline

408

for the previous cost of fuel, energy consumption, and stipulated

409

operation and maintenance.

410

     (d)  "Guaranteed energy performance savings contract" means

411

a contract for the evaluation, recommendation, and implementation

412

of energy conservation measures or energy-related operational

413

savings measures, which, at a minimum, shall include:

414

     1.  The design and installation of equipment to implement

415

one or more of such measures and, if applicable, operation and

416

maintenance of such measures.

417

     2.  The amount of any actual annual savings that meet or

418

exceed total annual contract payments made by the agency for the

419

contract and may include allowable cost avoidance. As used in

420

this section, allowable cost-avoidance calculations include

421

avoided provable budgeted costs contained in a capital

422

replacement plan less the current undepreciated value of replaced

423

equipment and the replacement cost of the new equipment.

424

     3.  The finance charges incurred by the agency over the life

425

of the contract.

426

     (e)  "Guaranteed energy performance savings contractor"

427

means a person or business that is licensed under chapter 471,

428

chapter 481, or this chapter, and is experienced in the analysis,

429

design, implementation, or installation of energy conservation

430

measures through energy performance contracts.

431

     (4)  PROCEDURES.--

432

     (a)  An agency may enter into a guaranteed energy

433

performance savings contract with a guaranteed energy performance

434

savings contractor to significantly reduce energy consumption or

435

energy-related operating costs of an agency facility through one

436

or more energy conservation measures.

437

     (b)  Before design and installation of energy conservation

438

measures, the agency must obtain from a guaranteed energy

439

performance savings contractor a report that summarizes the costs

440

associated with the energy conservation or energy-related

441

operational-cost-savings measures and provides an estimate of the

442

amount of the energy cost savings. The agency and the guaranteed

443

energy performance savings contractor may enter into a separate

444

agreement to pay for costs associated with the preparation and

445

delivery of the report; however, payment to the contractor shall

446

be contingent upon the report's projection of energy or

447

operational cost savings being equal to or greater than the total

448

projected costs of the design and installation of the report's

449

energy conservation measures.

450

     (c)  The agency may enter into a guaranteed energy

451

performance savings contract with a guaranteed energy performance

452

savings contractor if the agency finds that the amount the agency

453

would spend on the energy conservation or energy-related cost-

454

savings measures are will not likely to exceed the amount of the

455

energy or energy-related cost savings for up to 20 years after

456

from the date of installation, based on the life cycle cost

457

calculations provided in s. 255.255, if the recommendations in

458

the report are were followed and if the qualified provider or

459

providers give a written guarantee that the energy or energy-

460

related cost savings will meet or exceed the costs of the system.

461

However, actual computed cost savings must meet or exceed the

462

estimated cost savings provided during program approval. Baseline

463

adjustments used in the calculations must be specified in the

464

contract. The contract may provide for installment payments for

465

up to a period not to exceed 20 years.

466

     (d)  A guaranteed energy performance savings contractor must

467

be selected in compliance with s. 287.055; except that if fewer

468

than three firms are qualified to perform the required services,

469

the requirement for agency selection of three firms, as provided

470

in s. 287.055(4)(b), and the bid requirements of s. 287.057 do

471

not apply.

472

     (e)  Before entering into a guaranteed energy performance

473

savings contract, an agency must provide published notice of the

474

meeting in which it proposes to award the contract, the names of

475

the parties to the proposed contract, and the contract's purpose.

476

     (f)  A guaranteed energy performance savings contract may

477

provide for financing, including tax-exempt financing, by a third

478

party. The contract for third party financing may be separate

479

from the energy performance contract. A separate contract for

480

third party financing must include a provision that the third

481

party financier may must not be granted rights or privileges that

482

exceed the rights and privileges available to the guaranteed

483

energy performance savings contractor.

484

     (g) Financing for guaranteed energy performance savings

485

contracts may be provided under the authority of s. 287.064.

486

     (h) The Chief Financial Officer shall review proposals to

487

ensure that the most effective financing is being used.

488

     (i)(g) In determining the amount the agency will finance to

489

acquire the energy conservation measures, the agency may reduce

490

s

491

capital funding available to the agency for the purpose of buying

492

down the cost of the guaranteed energy performance savings

493

contract. However, in calculating the life cycle cost as required

494

in paragraph (c), the agency may shall not apply any grants,

495

rebates, or capital funding.

496

     (5)  CONTRACT PROVISIONS.--

497

     (a)  A guaranteed energy performance savings contract must

498

include a written guarantee that may include, but is not limited

499

to the form of, a letter of credit, insurance policy, or

500

corporate guarantee by the guaranteed energy performance savings

501

contractor that annual energy cost savings shall will meet or

502

exceed the amortized cost of energy conservation measures.

503

     (b)  The guaranteed energy performance savings contract must

504

provide that all payments, except obligations on termination of

505

the contract before its expiration, may be made over time, but

506

not to exceed 20 years after from the date of complete

507

installation and acceptance by the agency, and that the annual

508

savings are guaranteed to the extent necessary to make annual

509

payments to satisfy the guaranteed energy performance savings

510

contract.

511

     (c)  The guaranteed energy performance savings contract must

512

require that the guaranteed energy performance savings contractor

513

to whom the contract is awarded provide a 100-percent public

514

construction bond to the agency for its faithful performance, as

515

required by s. 255.05.

516

     (d)  The guaranteed energy performance savings contract may

517

contain a provision allocating to the parties to the contract any

518

annual energy cost savings that exceed the amount of the energy

519

cost savings guaranteed in the contract.

520

     (e) The guaranteed energy performance savings contract must

521

shall require the guaranteed energy performance savings

522

contractor to provide to the agency an annual reconciliation of

523

the guaranteed energy or energy-related cost savings. If the

524

reconciliation reveals a shortfall in annual energy cost savings,

525

the guaranteed energy performance savings contractor is liable

526

for such shortfall. If the reconciliation reveals an excess in

527

annual energy cost savings, the excess savings may be allocated

528

under paragraph (d) but may not be used to cover potential energy

529

or energy-related cost savings shortages in subsequent contract

530

years.

531

     (f)  The guaranteed energy performance savings contract must

532

provide for payments of not less than one-twentieth of the price

533

to be paid within 2 years after from the date of the complete

534

installation and acceptance by the agency using straight-line

535

amortization for the term of the loan, and the remaining costs to

536

be paid at least quarterly, not to exceed a 20-year term, based

537

on life cycle cost calculations.

538

     (g)  The guaranteed energy performance savings contract may

539

extend beyond the fiscal year in which it becomes effective;

540

however, the term of any contract expires at the end of each

541

f

542

20 years, subject to the agency making sufficient annual

543

appropriations based upon continued realized energy savings.

544

     (h)  The guaranteed energy performance savings contract must

545

stipulate that it does not constitute a debt, liability, or

546

obligation of the state.

547

     (6)  PROGRAM ADMINISTRATION AND CONTRACT REVIEW.--The

548

Department of Management Services, with the assistance of the

549

Office of the Chief Financial Officer, shall may, within

550

available resources, provide technical content assistance to

551

state agencies contracting for energy conservation measures and

552

engage in other activities considered appropriate by the

553

department for promoting and facilitating guaranteed energy

554

performance contracting by state agencies. The Office of the

555

Chief Financial Officer, with the assistance of the Department of

556

Management Services, shall may, within available resources,

557

develop model contractual and related documents for use by state

558

agencies. Prior to entering into a guaranteed energy performance

559

savings contract, any proposed contract or lease for third-party

560

financing, or any combination of such contracts must be submitted

561

by the agency, a state agency shall submit such proposed contract

562

or lease to the Office of the Chief Financial Officer for review

563

and approval. The proposed contract or lease submitted must

564

include:

565

     (a) The supporting information required by s.

566

216.023(4)(a)9.

567

     (b) Documentation demonstrating the availability of

568

recurring funds as required by ss. 287.063(5) and 287.064(11).

569

     (c) Approval by the agency head or designee.

570

     (d) An agency measurement and verification plan to monitor

571

cost savings.

572

     (7) FUNDING SUPPORT.--For purposes of consolidated

573

financing of deferred payment commodity contracts under this

574

section by a state agency, the contract must be supported from

575

available recurring funds appropriated to the agency in an

576

appropriation category, as defined in chapter 216, which the

577

Chief Financial Officer has determined is appropriate or which

578

the Legislature has designated for payment of the obligation

579

incurred. The Chief Financial Officer may not approve any

580

contract that does not meet the requirements of this section.

581

     Section 11.  Section 1013.441, Florida Statutes, is created

582

to read:

583

     1013.441 Green Schools Pilot Project.--

584

     (1) The Legislature finds that it is cost-effective and

585

healthy for the public and the environment to build schools that

586

maximize low-water usage and incorporate energy efficiencies,

587

renewable energy, and recycling technologies into the school's

588

construction. Therefore, the Legislature establishes the Green

589

Schools Pilot Project in selected school districts for the

590

purpose of incorporating Leadership in Energy and Environmental

591

Design (LEED) silver-level or the Green Globes two-globe rating

592

or better building-certification standards into every new

593

educational building construction project and, when feasible,

594

every educational building renovation project.

595

     (2) LEED building certification standards are defined by

596

the United States Green Building Council and the Green Globes

597

certification standards are defined by the Green Building

598

Initiative. Both standards address the total effect that new

599

buildings have on the environment in order to maximize energy

600

efficiency and to minimize adverse effects on the environment.

601

     (3) For purposes of this section, the term "additional

602

costs" means the expenditures that are necessary to build a

603

complete school to LEED silver-level or Green Globes two-globe

604

or better building-certification standards but that exceed the

605

expenditures necessary to build a complete school otherwise in

606

compliance with this chapter. Such additional costs may include,

607

but are not limited to, registration and certification fees

608

charged for certifying the school as meeting LEED silver-level or

609

Green Globes two-globe or better building-certification

610

standards.

611

     (4) The Department of Education, in consultation with the

612

Florida Energy Office, shall develop by August 1, 2008, an

613

application process for school districts to participate in the

614

pilot project.

615

     (a) Three school districts shall be selected for

616

participation by the State Board of Education by January 1, 2009.

617

One school district shall be in a county having a population of 1

618

million or more residents; one school district shall be in a

619

county having a population of 250,000 to 999,999 residents; and

620

one school district shall be in a county having a population of

621

fewer than 250,000 residents. School districts selected to

622

participate shall, to the greatest extent possible, represent

623

geographically different regions of the state.

624

     (b) At a minimum, each school district selected must:

625

     1. Demonstrate that it implements sound financial

626

management practices by producing documentation that indicates

627

that for the preceding 3 years the school district has had no

628

material weaknesses or instances of material noncompliance noted

629

in its annual audits required under s. 218.39.

630

     2. Engage a design team that has demonstrated knowledge and

631

experience in high-performance green building construction.

632

     3. Commit to building at least one complete school to LEED

633

silver-level or Green Globes two-globe or better building-

634

certification standards. A school built to such building-

635

certification standards shall be designated as a "Green School."

636

     (c) When selecting school districts to participate in the

637

pilot project, evaluation criteria established by the State Board

638

of Education may include, but need not be limited to, the

639

selection of school districts that demonstrate a high percentage

640

of environmentally inefficient schools or school districts that

641

propose innovative methods for improving water savings, energy

642

efficiency, or indoor environmental quality.

643

     (5) From funds appropriated for the Green Schools Pilot

644

Program, the department shall distribute to each participating

645

school district an amount sufficient to fund the additional costs

646

required to build one complete school to LEED silver-level or

647

Green Globes two-globe or better building-certification

648

standards.

649

     (a) If appropriated funds are insufficient to fund the

650

total of additional costs required to build three complete

651

schools to LEED silver-level or Green Globes two-globe or better

652

building-certification standards, the department shall prorate

653

funds available and make distributions based on the ratio of each

654

school's additional costs relative to the total of additional

655

costs for the three schools.

656

     (b) If appropriated funds remain after the distribution,

657

such funds may be distributed by the department to one or more of

658

the participating school districts to fund the additional costs

659

required to build other new schools or to renovate existing

660

schools to LEED silver-level or Green Globes two-globe or better

661

building-certification standards.

662

     (c) Participating school districts must annually report to

663

the department the expenditure of funds received under this

664

subsection. The reports must be open to inspection and

665

examination by the Auditor General. A participating school

666

district must return to the department:

667

     1. Any funds found by the Auditor General to have been

668

improperly expended.

669

     2. Funds received for the construction or renovation of a

670

school if LEED silver-level or Green Globes two-globe

671

certification or better is not obtained for the school within 1

672

year after its completion.

673

     (6) Each participating school district shall prepare and

674

submit to the Governor, the President of the Senate, the Speaker

675

of the House of Representatives, and the Commissioner of

676

Education a report on the effects Green Schools have had on

677

student performance and health, operational costs, energy

678

consumption, and the environment in the district by July 1 of the

679

year after a Green school has been in full operation for 3 years.

680

     Section 12. State fleet biodiesel usage.--

681

     (1) By July 1, 2009, a minimum of 5 percent, by January 1,

682

2010, a minimum of 10 percent, and by January 1, 2011, a minimum

683

of 20 percent of total diesel fuel purchases for use in state-

684

owned diesel vehicles and equipment shall be biodiesel fuel

685

(B20), subject to availability.

686

     (2) By July 1, 2009, a minimum of 5 percent, by January 1,

687

2010, a minimum of 10 percent, and by January 1, 2011, a minimum

688

of 20 percent of total fuel purchases for use by state-owned

689

flex-fuel vehicles shall be ethanol, subject to availability.

690

     (3) The Department of Management Services shall administer

691

this section.

692

     (4) The Department of Management Services shall report to

693

the Legislature on or before March 1, 2009, and annually

694

thereafter on the extent of biodiesel and ethanol use in the

695

state fleet. The report must contain the number of gallons

696

purchased since July 1, 2008, the average price of biodiesel and

697

ethanol, and a description of fleet performance.

698

     Section 13. School district biodiesel usage.--

699

     (1) By January 1, 2009, a minimum of 20 percent of total

700

diesel fuel purchases for use by school districts shall be

701

biodiesel fuel (B20), subject to availability.

702

     (2) If a school district contracts with another government

703

entity or private entity to provide transportation services for

704

any of its pupils, the biodiesel fuel requirement established

705

under subsection (1) shall be part of that contract. However,

706

this requirement applies only to contracts entered into on or

707

after July 1, 2008.

708

     Section 14.  This act shall take effect July 1, 2008.

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