CSSB 121(RES): "An Act relating to energy audits of public facilities and to energy efficiency for public facilities with the intent of reducing state operating costs."

00 CS FOR SENATE BILL NO. 121(RES) 01 "An Act relating to energy audits of public facilities and to energy efficiency for public 02 facilities with the intent of reducing state operating costs." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 PURPOSE. The purpose of this Act is to reduce the amount of energy consumed by 07 public facilities by 20 percent not later than 15 years after the completion of the energy use 08 index database, thereby reducing costs to the state and increasing jobs in energy efficiency 09 industries. 10 * Sec. 2. AS 44.42.065 is amended to read: 11 Sec. 44.42.065. Energy use index database maintenance; energy audit 12 [CONSERVATION OF ENERGY IN PUBLIC BUILDINGS]. (a) The department 13 shall 14 (1) update the energy use index database established in

01 AS 44.83.955 not later than December 31 of each year; and 02 (2) conduct [, AT LEAST ONCE EVERY SEVEN YEARS, 03 PERFORM] an energy audit of each public facility whenever, in updating the 04 energy use index under (1) of this subsection, the department determines there is 05 substantial energy inefficiency for the public facility [BUILDING]. 06 (b) The department shall include in each energy audit required by (a)(2) [(a)] 07 of this section recommendations for corrective measures to improve the energy 08 efficiency and to minimize the life-cycle cost of the public facility [BUILDING] 09 surveyed. These measures may include (1) energy conservation measures, (2) 10 measures involving solar technology and other renewable [ALTERNATIVE] energy 11 systems, (3) energy management, and (4) maintenance and operating procedures and 12 energy-related modifications. In recommending the corrective measures, the 13 department shall give priority to changes in maintenance and operating procedures 14 over measures requiring substantial structural modification or installation of 15 equipment. 16 (c) In this section, "energy audit" means a determination of 17 (1) the energy consumption characteristics of a public facility 18 [BUILDING], including the size, type, and rate of energy consumption of major 19 energy-consuming systems of the public facility [BUILDING] and the climate 20 characterizing the region where the public facility [BUILDING] is located; and 21 (2) a determination of the energy conservation and cost savings likely 22 to result from appropriate energy-conserving maintenance and operating procedures 23 and modifications, including the purchase and installation of energy-related fixtures. 24 * Sec. 3. AS 44.42 is amended by adding a new section to read: 25 Sec. 44.42.067. Retrofits; performance contracting for energy efficiency. 26 (a) In addition to its obligation under AS 44.42.065, the department shall 27 (1) retrofit all public facilities listed in the energy use index described 28 in AS 44.83.955; and 29 (2) retrofit, replace, or redesign inefficient lighting fixtures to be as 30 efficient as possible while meeting federal guidelines. 31 (b) In carrying out the duty under (a) of this section, the department may, if no

01 other funding or partial funding for a project is available, 02 (1) enter into an energy performance contract; and 03 (2) administer a performance contract for a public facility by 04 contracting with an energy service company that is a member of the National 05 Association of Energy Service Companies. 06 (c) If the department uses an energy performance contract under (b) of this 07 section for a project retrofitting a public facility, the contract may also include 08 renewable energy projects and capital improvements not related to energy retrofitting. 09 (d) The department shall manage its duties under (a) of this section so that the 10 retrofitting of public facilities identified in the energy use index database described in 11 AS 44.83.955 shall be completed not later than 15 years after completion of the energy 12 use index database. 13 (e) If the department determines that an energy retrofit described under (a) of 14 this section is not cost-effective, the department may postpone the retrofit until it is 15 determined to be cost-effective or additional capital improvements are required. In 16 making the determination under this subsection, the department may consider if the 17 energy retrofit will be able to meet a return on investment within 15 years after the 18 project is completed. 19 (f) Any retrofit, new construction, or deferred maintenance of a public facility 20 performed under this section must meet or exceed the most recently published edition 21 of the ASHRAE/IESNA Standard 90.1, Energy Standard for Buildings Except for 22 Low-Rise Residential Buildings, as published by the American Society of Heating, 23 Refrigerating and Air-Conditioning Engineers. 24 (g) In this section, 25 (1) "performance contract" means an agreement for the provision of 26 energy services and equipment in which a private entity or qualified third party agrees 27 to finance, design, construct, install, maintain, operate, or manage energy systems or 28 equipment to improve the energy efficiency of, or produce energy for, a facility in 29 exchange for a portion of the cost savings, lease payments, or specified revenue, and 30 by which the level of payments is made contingent on verified energy savings, energy 31 production, avoided maintenance, avoided energy equipment replacement, or any

01 combination of verified energy savings, energy production, avoided maintenance, or 02 avoided energy equipment replacement; 03 (2) "public facility" means a facility owned or controlled and held by 04 the state for government or public use. 05 * Sec. 4. AS 44.83 is amended by adding a new section to read: 06 Sec. 44.83.955. Energy use index. (a) The authority shall 07 (1) develop an energy use index for public facilities to measure 08 baseline energy consumption; 09 (2) establish an energy use index database to include baseline energy 10 use data for all public facilities evaluated in (1) of this subsection; and 11 (3) adopt regulations establishing the methodology to be used in 12 determining the energy use index described in (1) of this subsection. 13 (b) In this section, "public facility" means a facility owned or controlled and 14 held by the state for government or public use. 15 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 16 read: 17 ENERGY USE INDEX DATABASE. The Alaska Energy Authority shall establish 18 the energy use index database described in AS 44.83.955, added by sec. 4 of this Act, not later 19 than six months after the effective date of this Act. 20 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 ENERGY PERFORMANCE REPORT. Not later than January 31 of each of the three 23 years following the completion of an energy retrofit project, the Department of Transportation 24 and Public Facilities shall submit to the legislature an energy performance report detailing the 25 effectiveness of the energy efficiency measures provided for in this Act.