First Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 15-0757.01 Nicole Myers x4326 SENATE BILL 15-134 SENATE SPONSORSHIP Jones, HOUSE SPONSORSHIP Tyler, Senate Committees House Committees Agriculture, Natural Resources, & Energy A BILL FOR AN ACT Concerning energy cost-savings contracts entered into by governmental entities for vehicle fleets. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Current law allows a state agency or political subdivision to enter into a vehicle fleet operational and fuel cost-savings contract if the amount of actual savings for each year during the contract period exceeds the amount of annual contract payments, including maintenance costs. The bill clarifies that moneys included in annual contract payments for a cost-savings contract do not include moneys that would otherwise be allocated for vehicle purchases and vehicle operation and maintenance costs for the applicable fiscal year. The bill also clarifies that the expected total contract payments required under the cost-savings contract are expected to be equal to or less than total vehicle acquisition costs and operations, maintenance, and fuel costs over the lifetime of the contract, rather than in each year of the contract, if the agency did not implement the cost-saving measures. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 24-30-2001, amend (1.5) (b) and (9) as follows: 24-30-2001. Definitions. As used in this part 20, unless the context otherwise requires: (1.5) "Energy performance contract" means a contract for evaluations, recommendations, or implementation of one or more energy cost-savings measures designed to produce utility cost savings, operation and maintenance cost savings, or vehicle fleet operational and fuel cost savings, which contract: (b) Provides that the amount of actual savings for each year during the contract period shall exceed annual contract payments, including maintenance costs, to be made during such year by the state agency contracting for the energy cost-savings measures; except that, for the purposes of this part 20 only, the term "annual contract payments" does not include: (I) Moneys received by the state from rebates, gifts, grants, or donations specifically designated by the gifting, granting, or donating party for the design or implementation of an energy cost-savings measure; or (II) State moneys that have been specifically appropriated in a distinct line item, or, in the case of the department of transportation, otherwise set aside in the department's budget, for the design or implementation of an energy cost-savings measure that is wholly addressed within the scope of the energy cost-savings contract; or (III) In the case of vehicle fleet operational and fuel cost-savings measures, state moneys that would otherwise be allocated to vehicle purchases for the applicable fiscal year. (9) "Vehicle fleet operational and fuel cost-savings contract" means an energy performance contract or shared-savings contract or any other agreement in which vehicle fleet operational and fuel cost savings are used to pay for the cost a portion of the costs of the vehicle or associated capital investments. SECTION 2. In Colorado Revised Statutes, 24-30-2003, amend (1) (a) (II) and (5) as follows: 24-30-2003. Energy cost-savings contracts. (1) A state agency may enter into an energy cost-savings contract with any person or entity experienced in the design and implementation of utility cost-savings measures for buildings or other facilities, with any person or entity experienced in the calculation and analysis of vehicle fleet operational and fuel cost savings, or with the entity or person who performed the energy analysis and recommendations pursuant to section 24-30-2002 if: (a) (II) In the case of a vehicle fleet operational and fuel cost-savings contract, the energy analysis and recommendations made pursuant to section 24-30-2002 indicate that the expected annual total contract payments required under the vehicle fleet operational and fuel cost-savings contract over the lifetime of the contract for one or more vehicle fleet operational and fuel cost-savings measures are expected to be equal to or less than the sum of the vehicle fleet cost savings achieved by the implementation of such measures on an annual basis vehicle acquisition costs and operations, maintenance, and fuel costs if the agency did not implement the cost-savings measures; and (5) Payments by a state agency required under an energy cost-savings contract may be made from moneys appropriated to the state agency for operating expenses or utilities appropriations available to the state agency at the time the contract payments are due. In the case of vehicle fleet operational and fuel cost-savings measures, contract payments by a state agency may be made from moneys appropriated to the state agency for the acquisition of vehicles and for the operation, maintenance, and fuel costs of those vehicles. SECTION 3. In Colorado Revised Statutes, 29-12.5-101, amend (3) (b), (3) (e), and (11); and add (3) (b.5) as follows: 29-12.5-101. Definitions. As used in this article: (3) "Energy performance contract" means a contract for evaluations, recommendations, or implementation of one or more energy saving measures designed to produce utility costs savings, operation and maintenance cost savings, or vehicle fleet operational and fuel cost savings, which contract: (b) Provides that the amount of actual savings for each year during the contract period shall exceed annual contract payments, including maintenance costs, to be made during such year by the board contracting for energy utility cost-savings measures; (b.5) Provides that, in the case of a vehicle fleet operational and fuel cost-savings contract, the total contract payments required under the vehicle fleet operational and fuel cost-savings contract over the lifetime of the contract for one or more vehicle fleet operational and fuel cost-savings contract measures are expected to be equal to or less than the sum of the vehicle acquisition costs and operation, maintenance, and fuel costs if the agency did not implement the cost-savings measures. (e) Provides that, if all payments, except payments for maintenance and repairs and obligations on the termination of the contract prior to expiration, made by such board during any year subject to the guarantee in paragraph (c) of this subsection (3) exceed the sum of energy utility cost savings and operation and maintenance savings for that year, such party shall forfeit to such board that portion of such moneys equal to the amount by which such payments exceeded such savings; (11) "Vehicle fleet operational and fuel cost-savings contract" means an energy performance contract or shared-savings contract or any other agreement in which vehicle fleet operational and fuel cost savings are used to pay for the cost a portion of the costs of the vehicle or associated capital investments. SECTION 4. In Colorado Revised Statutes, 29-12.5-103, amend (1) introductory portion as follows: 29-12.5-103. Financing energy cost-savings measures - exception to debt limitations. (1) If the board, after receiving the analysis and recommendations pursuant to section 29-12.5-102, finds that the amount of money the political subdivision would spend on such energy saving measures is not likely to exceed the amount of money it would save in energy costs over the term of the contract, or, in the case of vehicle fleet operational and fuel cost-savings measures, that the amount of money that the political subdivision would spend on such energy savings is not likely to exceed the sum of vehicle acquisition costs and operation, maintenance, and fuel costs if the political subdivision did not implement these measures, the board may: SECTION 5. Act subject to petition - effective date - applicability. (1) This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 5, 2015, if adjournment sine die is on May 6, 2015); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2016 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor. (2) This act applies to vehicle fleet operational and fuel cost-savings contracts entered into by a state agency or political subdivision on or after the applicable effective date of this act.