CS/HB 271

1
A bill to be entitled
2An act relating to contracting for efficiency or
3conservation measures by state agencies; amending s.
4471.003, F.S.; revising criteria for certain exemptions
5from qualifications to practice engineering in this state;
6providing a definition; amending s. 471.023, F.S.;
7exempting certain business organizations from obtaining a
8certification of authorization to provide engineering
9services to the public; amending s. 489.145, F.S.;
10including water and wastewater efficiency and conservation
11in the measures encouraged by the Legislature; revising
12definitions; providing for inclusion of water and
13wastewater efficiency and conservation measures in
14guaranteed performance savings contracts entered into by
15state agencies, municipalities, or political subdivisions;
16exempting guaranteed performance savings contractors from
17engineering certification requirements under certain
18circumstances; amending s. 1013.23, F.S.; exempting energy
19performance contractors from engineering certification
20requirements under certain circumstances; amending s.
21287.064, F.S., relating to consolidated financing of
22deferred-payment purchases, to conform; providing an
23effective date.
24
25Be It Enacted by the Legislature of the State of Florida:
26
27     Section 1.  Subsection (2) of section 471.003, Florida
28Statutes, is amended to read:
29     471.003  Qualifications for practice; exemptions.--
30     (2)  The following persons are not required to be licensed
31under the provisions of this chapter as a licensed engineer:
32     (a)  Any person practicing engineering for the improvement
33of, or otherwise affecting, property legally owned by her or
34him, unless such practice involves a public utility or the
35public health, safety, or welfare or the safety or health of
36employees. This paragraph shall not be construed as authorizing
37the practice of engineering through an agent or employee who is
38not duly licensed under the provisions of this chapter.
39     (b)1.  A person acting as a public officer employed by any
40state, county, municipal, or other governmental unit of this
41state when working on any project the total estimated cost of
42which is $10,000 or less.
43     2.  Persons who are employees of any state, county,
44municipal, or other governmental unit of this state and who are
45the subordinates of a person in responsible charge licensed
46under this chapter, to the extent that the supervision meets
47standards adopted by rule of the board.
48     (c)  Regular full-time employees of a corporation not
49engaged in the practice of engineering as such, whose practice
50of engineering for such corporation is limited to the design or
51fabrication of manufactured products and servicing of such
52products.
53     (d)  Regular full-time employees of a public utility or
54other entity subject to regulation by the Florida Public Service
55Commission, Federal Energy Regulatory Commission, or Federal
56Communications Commission.
57     (e)  Employees of a firm, corporation, or partnership who
58are the subordinates of a person in responsible charge, licensed
59under this chapter.
60     (f)  Any person as contractor in the execution of work
61designed by a professional engineer or in the supervision of the
62construction of work as a foreman or superintendent.
63     (g)  A licensed surveyor and mapper who takes, or contracts
64for, professional engineering services incidental to her or his
65practice of surveying and mapping and who delegates such
66engineering services to a licensed professional engineer
67qualified within her or his firm or contracts for such
68professional engineering services to be performed by others who
69are licensed professional engineers under the provisions of this
70chapter.
71     (h)  Any electrical, plumbing, air-conditioning, or
72mechanical contractor whose practice includes the design and
73fabrication of electrical, plumbing, air-conditioning, or
74mechanical systems, respectively, which she or he installs by
75virtue of a license issued under chapter 489, under part I of
76chapter 553, or under any special act or ordinance when working
77on any construction project which:
78     1.  Requires an electrical or plumbing or air-conditioning
79and refrigeration system with a value of $50,000 or less; and
80     2.a.  Requires an aggregate service capacity of 600 amperes
81(240 volts) or less on a residential electrical system or 800
82amperes (240 volts) or less on a commercial or industrial
83electrical system;
84     b.  Requires a plumbing system with fewer than 250 fixture
85units; or
86     c.  Requires a heating, ventilation, and air-conditioning
87system not to exceed a 15-ton-per-system capacity, or if the
88project is designed to accommodate 100 or fewer persons.
89     (i)  Any general contractor, certified, or registered, or
90possessing a certificate of authority pursuant to the provisions
91of chapter 489, when negotiating or performing services under a
92design-build contract as long as the engineering services
93offered or rendered in connection with the contract are offered
94and rendered by an engineer licensed in accordance with this
95chapter. For purposes of this paragraph, a "design-build
96contract" is a contract with a single individual or business
97organization for the design and construction of a project,
98including, but not limited to, construction, rehabilitation, and
99renovation activities.
100     (j)  Any defense, space, or aerospace company, whether a
101sole proprietorship, firm, limited liability company,
102partnership, joint venture, joint stock association,
103corporation, or other business entity, subsidiary, or affiliate,
104or any employee, contract worker, subcontractor, or independent
105contractor of the defense, space, or aerospace company who
106provides engineering for aircraft, space launch vehicles, launch
107services, satellites, satellite services, or other defense,
108space, or aerospace-related product or services, or components
109thereof.
110     Section 2.  Subsection (6) is added to section 471.023,
111Florida Statutes, to read:
112     471.023  Certification of business organizations.--
113     (6)  A business organization meeting the definition of a
114design-build firm under s. 287.055 is not required to obtain a
115certification of authorization under this section in order to
116negotiate, enter into, or perform a public or private design-
117build contract.
118     Section 3.  Section 489.145, Florida Statutes, is amended
119to read:
120     489.145  Guaranteed energy performance savings
121contracting.--
122     (1)  SHORT TITLE.--This section may be cited as the
123"Guaranteed Energy Performance Savings Contracting Act."
124     (2)  LEGISLATIVE FINDINGS.--The Legislature finds that
125investment in energy, water, and wastewater efficiency or
126conservation measures in agency facilities can reduce the amount
127of energy and water consumed and wastewater to be treated and
128produce immediate and long-term savings. It is the policy of
129this state to encourage each agency agencies to invest in
130energy, water, and wastewater efficiency or conservation
131measures that provide such reductions reduce energy consumption,
132produce a cost savings for the agency, and, for energy measures,
133improve the quality of indoor air in public facilities and to
134operate, maintain, and, when economically feasible, build or
135renovate existing agency facilities in such a manner as to
136minimize energy and water consumption and wastewater production
137and maximize energy, water, and wastewater savings. It is
138further the policy of this state to encourage each agency
139agencies to reinvest any energy savings resulting from energy,
140water, and wastewater efficiency or conservation measures in
141additional energy, water, and wastewater efficiency or
142conservation measures efforts.
143     (3)  DEFINITIONS.--As used in this section, the term:
144     (a)  "Agency" means the state, a municipality, or a
145political subdivision.
146     (b)  "Energy, water, or wastewater efficiency or
147conservation measure" means a training program, facility
148alteration, or equipment purchase to be used in new facilities
149or in retrofitting or adding to existing facilities or
150infrastructure that new construction, including an addition to
151an existing facility, which reduces energy, water, wastewater,
152or operating costs and includes, but is not limited to:
153     1.  Insulation of the facility structure and systems within
154the facility.
155     2.  Storm windows and doors, caulking or weatherstripping,
156multiglazed windows and doors, heat-absorbing, or heat-
157reflective, glazed and coated window and door systems,
158additional glazing, reductions in glass area, and other window
159and door system modifications that reduce energy consumption.
160     3.  Automatic energy control systems.
161     4.  Heating, ventilating, or air-conditioning system
162modifications or replacements.
163     5.  Replacement or modifications of lighting fixtures to
164increase the energy efficiency of the lighting system, which, at
165a minimum, must conform to the applicable state or local
166building code.
167     6.  Energy recovery systems.
168     7.  Cogeneration systems that produce steam or forms of
169energy such as heat, as well as electricity, for use primarily
170within a facility or complex of facilities.
171     8.  Energy conservation measures that provide long-term
172operating cost reductions or significantly reduce Btu consumed.
173     9.  Renewable energy systems, such as solar, biomass, or
174wind systems.
175     10.  Devices that reduce water consumption or wastewater
176sewer charges.
177     11.  Equipment upgrades that improve the accuracy of
178billable revenue-generating systems.
179     12.  Automated electronic or remotely controlled systems or
180measures that reduce direct personnel costs.
181     13.  Such other energy, water, or wastewater efficiency or
182conservation measures as may provide measurable operating cost
183reductions or billable revenue increases.
184     14.11.  Energy storage systems, such as fuel cells and
185thermal storage.
186     15.12.  Energy-generating generating technologies, such as
187microturbines.
188     16.  Cool roof coating.
189     17.13.  Any other repair, replacement, or upgrade of
190existing equipment.
191     (c)  "Energy, water, or wastewater cost savings" means a
192measured reduction in the cost of fuel, energy or water
193consumption, or wastewater production and stipulated improvement
194in the operation and maintenance created from the implementation
195of one or more energy, water, or wastewater efficiency or
196conservation measures when compared with an established baseline
197for the previous cost of fuel, energy or water consumption, or
198wastewater production and stipulated operation and maintenance.
199     (d)  "Guaranteed energy performance savings contract" means
200a contract for the evaluation, recommendation, and
201implementation of energy, water, or wastewater efficiency or
202conservation measures, which, at a minimum, shall include:
203     1.  The design and installation of equipment to implement
204one or more of such measures and, if applicable, operation and
205maintenance of such measures.
206     2.  The amount of any actual annual savings that meet or
207exceed total annual contract payments made by the agency for the
208contract.
209     3.  The finance charges incurred by the agency over the
210life of the contract.
211     (e)  "Guaranteed energy performance savings contractor"
212means a person or business that is licensed under chapter 471,
213chapter 481, or this chapter, and is experienced in the
214analysis, design, implementation, or installation of energy,
215water, or wastewater efficiency or conservation measures through
216energy performance contracts.
217     (4)  PROCEDURES.--
218     (a)  An agency may enter into a guaranteed energy
219performance savings contract with a guaranteed energy
220performance savings contractor to significantly reduce energy,
221water, or wastewater or operating costs of an agency facility
222through one or more energy, water, or wastewater efficiency or
223conservation measures.
224     (b)  Before design and installation of energy, water, or
225wastewater efficiency and conservation measures, the agency must
226obtain from a guaranteed energy performance savings contractor a
227report that summarizes the costs associated with the energy
228conservation measures and provides an estimate of the amount of
229the associated energy cost savings or operational improvements.
230The issuance of such report and the design and installation of
231energy, water, or wastewater efficiency and conservation
232measures pursuant to a guaranteed performance savings contract
233shall not subject the guaranteed performance savings contractor
234to the provisions of s. 471.023. The agency and the guaranteed
235energy performance savings contractor may enter into a separate
236agreement to pay for costs associated with the preparation and
237delivery of the report; however, payment to the contractor shall
238be contingent upon the report's projection of energy cost
239savings being equal to or greater than the total projected costs
240of the design and installation of the report's energy
241conservation or efficiency measures.
242     (c)  The agency may enter into a guaranteed energy
243performance savings contract with a guaranteed energy
244performance savings contractor if the agency finds that the
245amount the agency would spend on the energy conservation or
246efficiency measures will not likely exceed the amount of the
247associated energy cost savings for up to 20 years from the date
248of installation, based on the life cycle cost calculations
249provided in s. 255.255, if the recommendations in the report
250were followed and if the qualified provider or providers give a
251written guarantee that such the energy cost savings will meet or
252exceed the costs of the system. The contract may provide for
253installment payments for a period not to exceed 20 years.
254     (d)  A guaranteed energy performance savings contractor
255must be selected in compliance with s. 287.055; except that if
256fewer than three firms are qualified to perform the required
257services, the requirement for agency selection of three firms,
258as provided in s. 287.055(4)(b), and the bid requirements of s.
259287.057 do not apply.
260     (e)  Before entering into a guaranteed energy performance
261savings contract, an agency must provide published notice of the
262meeting in which it proposes to award the contract, the names of
263the parties to the proposed contract, and the contract's
264purpose.
265     (f)  A guaranteed energy performance savings contract may
266provide for financing, including tax-exempt tax exempt
267financing, by a third party. The contract for third-party third
268party financing may be separate from the energy performance
269savings contract. A separate contract for third-party third
270party financing must include a provision that the third-party
271third party financier must not be granted rights or privileges
272that exceed the rights and privileges available to the
273guaranteed energy performance savings contractor.
274     (g)  In determining the amount the agency will finance to
275acquire the efficiency or energy conservation measures, the
276agency may reduce such amount by the application of any grant
277moneys, rebates, or capital funding available to the agency for
278the purpose of buying down the cost of the guaranteed energy
279performance savings contract. However, in calculating the life
280cycle cost as required in paragraph (c), the agency shall not
281apply any grants, rebates, or capital funding.
282     (5)  CONTRACT PROVISIONS.--
283     (a)  A guaranteed energy performance savings contract must
284include a written guarantee that may include, but is not limited
285to the form of, a letter of credit, insurance policy, or
286corporate guarantee by the guaranteed energy performance savings
287contractor that annual associated energy cost savings will meet
288or exceed the amortized cost of the efficiency or energy
289conservation measures.
290     (b)  The guaranteed energy performance savings contract
291must provide that all payments, except obligations on
292termination of the contract before its expiration, may be made
293over time, but not to exceed 20 years from the date of complete
294installation and acceptance by the agency, and that the annual
295savings are guaranteed to the extent necessary to make annual
296payments to satisfy the guaranteed energy performance savings
297contract.
298     (c)  The guaranteed energy performance savings contract
299must require that the guaranteed energy performance savings
300contractor to whom the contract is awarded provide a 100-percent
301public construction bond to the agency for its faithful
302performance, as required by s. 255.05.
303     (d)  The guaranteed energy performance savings contract may
304contain a provision allocating to the parties to the contract
305any annual associated energy cost savings that exceed the amount
306of the associated energy cost savings guaranteed in the
307contract.
308     (e)  The guaranteed energy performance savings contract
309shall require the guaranteed energy performance savings
310contractor to provide to the agency an annual reconciliation of
311the guaranteed associated energy cost savings. If the
312reconciliation reveals a shortfall in such annual energy cost
313savings, the guaranteed energy performance savings contractor is
314liable for such shortfall. If the reconciliation reveals an
315excess in such annual energy cost savings, the excess savings
316may be allocated under paragraph (d) but may not be used to
317cover potential energy cost savings shortages in subsequent
318contract years.
319     (f)  The guaranteed energy performance savings contract
320must provide for payments of not less than one-twentieth of the
321price to be paid within 2 years from the date of the complete
322installation and acceptance by the agency, and the remaining
323costs to be paid at least quarterly, not to exceed a 20-year
324term, based on life cycle cost calculations.
325     (g)  The guaranteed energy performance savings contract may
326extend beyond the fiscal year in which it becomes effective;
327however, the term of any contract expires at the end of each
328fiscal year and may be automatically renewed annually for up to
32920 years, subject to the agency making sufficient annual
330appropriations based upon continued realized energy, water, or
331wastewater savings.
332     (h)  The guaranteed energy performance savings contract
333must stipulate that it does not constitute a debt, liability, or
334obligation of the state.
335     (6)  PROGRAM ADMINISTRATION AND CONTRACT REVIEW.--The
336Department of Management Services, with the assistance of the
337Office of the Chief Financial Officer, may, within available
338resources, provide technical assistance to state agencies
339contracting for energy, water, or wastewater efficiency or
340conservation measures and engage in other activities considered
341appropriate by the department for promoting and facilitating
342guaranteed energy performance contracting by state agencies. The
343Office of the Chief Financial Officer, with the assistance of
344the Department of Management Services, may, within available
345resources, develop model contractual and related documents for
346use by state agencies. Prior to entering into a guaranteed
347energy performance savings contract, any contract or lease for
348third-party financing, or any combination of such contracts, a
349state agency shall submit such proposed contract or lease to the
350Office of the Chief Financial Officer for review and approval.
351     Section 4.  Paragraph (d) of subsection (3) of section
3521013.23, Florida Statutes, is amended to read:
353     1013.23  Energy efficiency contracting.--
354     (3)  ENERGY PERFORMANCE-BASED CONTRACT PROCEDURES.--
355     (d)  Prior to the design and installation of the energy
356conservation measure, the district school board, community
357college board of trustees, or state university board of trustees
358must obtain from the energy performance contractor a report that
359discloses all costs associated with the energy conservation
360measure and provides an estimate of the amount of the energy
361cost savings. The report must be reviewed by either the
362Department of Education or the Department of Management Services
363or signed and sealed by a registered professional engineer. The
364issuance of such report and the design and installation of
365energy conservation measures pursuant to an energy performance-
366based contract shall not subject the energy performance
367contractor to the provisions of s. 471.023.
368     Section 5.  Subsection (10) of section 287.064, Florida
369Statutes, is amended to read:
370     287.064  Consolidated financing of deferred-payment
371purchases.--
372     (10)  Costs incurred pursuant to a guaranteed energy
373performance savings contract, including the cost of energy,
374water, or wastewater efficiency and conservation measures, each
375as defined in s. 489.145, may be financed pursuant to a master
376equipment financing agreement; however, the costs of training,
377operation, and maintenance may not be financed. The period of
378time for repayment of the funds drawn pursuant to the master
379equipment financing agreement under this subsection may exceed 5
380years but may not exceed 10 years.
381     Section 6.  This act shall take effect July 1, 2007.


CODING: Words stricken are deletions; words underlined are additions.