Date: 04/30/2014

Final
BILL SUMMARY for SB14-186

HOUSE COMMITTEE ON TRANSPORTATION & ENERGY

Votes: View--> Action Taken:
Refer Senate Bill 14-186 to the Committee of the WPASS



01:32 PM -- SB 14-186

Representative Tyler, chair, called the meeting to order. A quorum was present. Representatives Tyler and Hamner, co-prime sponsors, presented Senate Bill 14-186. This bill is intended to facilitate the financing and development of energy efficiency projects in rural Colorado. The bill defines efficiency projects as projects of a community entity (a school district, special district, county, or municipality in a small or rural community) that results in the more efficient use of energy or resources. Such projects could include:

The bill authorizes the Colorado Energy Office (CEO) to collaborate with pre-qualified energy service companies (ESCOs) to identify a portfolio of projects that will attract private sector investment. The bill specifies that if a portfolio of projects is financed, financing terms must include a fee not to exceed one percent of the cost of issuance. The fee is payable to the Department of Local Affairs (DOLA) and is to be credited to the newly created Efficient Schools and Communities Performance Contracting Fund. Money in the fund is subject to annual appropriation by the General Assembly to the DOLA, and is exempted from the existing statutory limitations on uncommitted reserves in cash funds. Once sufficient fee revenue has been accumulated in the fund, the DOLA in collaboration with the CEO, may award grants to reimburse either: 1) a portion of the costs of the technical energy audit completed by the community entity whose project was not financed, or 2) a portion of the energy service company's costs if the project was not financed. All grants must be prioritized by need, and may not exceed the available fee revenue. The DOLA will administer the grant program, and may spend up to five percent of fee revenue to cover administrative costs.

Representative Hamner discussed the provisions of the bill. Representative Tyler commented on the intent of the legislation and 2010 legislation addressing energy performance contracting. He discussed the fiscal impact of the bill and responded to questions from the committee concerning the use of projects in urban areas.

The following people testified on the bill:

01:40 PM -- Lauren Smith, representing the Southwest Energy Efficiency Project (SWEEP), testified in support of the bill.

01:41 PM -- Neal Kemkar and Christian Lewis, representing the CEO, testified on the bill. A handout was distributed to the committee (Attachment A). Mr. Kemkar said that the CEO is neutral on the bill and commented on its administration of the program. Mr. Lewis said that the CEO will continue to administer the program and support Colorado communities impacted by the bill. Discussion ensued concerning performance contracting. Representative Lawrence why DOLA is administering the program but not financing it.

140430 AttachA.pdf140430 AttachA.pdf

01:58 PM

Representative Scott asked for more information about current projects. Discussion ensued concerning energy efficiency performance contracts in smaller towns.

02:09 PM -- Rod Vanderwall, representing the Office of the State Architect, responded to questions from the committee concerning ESCOs. Discussion ensued concerning ESCO qualifications, how many ESCOs are operating in the state, and the range of related contract values.

02:17 PM -- Bruce Eisenhower, representing DOLA, testified on the bill. A handout was distributed to the committee (Attachment B). Representative Kraft-Tharp asked about DOLA's role in implementing and administering the grant program. Discussion ensued concerning language in the bill.

140430 AttachB.pdf140430 AttachB.pdf
BILL:SB14-186
TIME: 02:28:17 PM
MOVED:Tyler
MOTION:Refer Senate Bill 14-186 to the Committee of the Whole. The motion passed on a vote of 8-5.
SECONDED:Mitsch Bush
VOTE
Buck
No
Coram
No
Everett
No
Fischer
Yes
Ginal
Yes
Kraft-Tharp
Yes
Lawrence
No
Lee
Yes
Mitsch Bush
Yes
Peniston
Yes
Scott
No
Moreno
Yes
Tyler
Yes
Final YES: 8 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS




02:33 PM

The committee adjourned.