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.