1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
A bill for an act
relating to local government; extending and changing the terms of guaranteed
energy savings contracts under the uniform municipal contracting law; amending
Minnesota Statutes 2007 Supplement, section 471.345, subdivision 13.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Minnesota Statutes 2007 Supplement, section 471.345, subdivision 13,
is amended to read:
The following definitions apply to this
(a) "Energy conservation measure" means a training program or facility alteration
designed to reduce energy consumption or operating costs and includes:
(1) insulation of the building structure and systems within the building;
(2) storm windows and doors, caulking or weatherstripping, multiglazed windows
and doors, heat absorbing or heat reflective glazed and coated window and door
systems, additional glazing, reductions in glass area, and other window and door system
modifications that reduce energy consumption;
(3) automatic energy control systems;
(4) heating, ventilating, or air conditioning system modifications or replacements;
(5) replacement or modifications of lighting fixtures to increase the energy efficiency
of the lighting system without increasing the overall illumination of a facility, unless an
increase in illumination is necessary to conform to the applicable state or local building
code for the lighting system after the proposed modifications are made;
(6) energy recovery systems;
(7) cogeneration systems that produce steam or forms of energy such as heat, as well
as electricity, for use primarily within a building or complex of buildings;
(8) energy conservation measures that provide long-term operating cost reductions.
(b) "Guaranteed energy savings contract" means a contract for the evaluation
and recommendations of energy conservation measures, and for one or more energy
conservation measures. The contract must provide that all payments, except obligations
on termination of the contract before its expiration, are to be made over time, but not to
exceed deleted text begin15deleted text end new text beginnew text endyears from the date of final installation, and the savings are guaranteed to
the extent necessary to make payments for the systems.
(c) "Qualified provider" means a person or business experienced in the design,
implementation, and installation of energy conservation measures. A qualified provider
to whom the contract is awarded shall give a sufficient bond to the municipality for its
Notwithstanding any law to the contrary, a municipality may enter into a guaranteed
energy savings contract with a qualified provider to significantly reduce energy or
Before entering into a contract under this subdivision, the municipality shall provide
published notice of the meeting in which it proposes to award the contract, the names of
the parties to the proposed contract, and the contract's purpose.
Before installation of equipment, modification, or remodeling, the qualified provider
shall first issue a report, summarizing estimates of all costs of installations, modifications,
or remodeling, including costs of design, engineering, installation, maintenance, repairs,
or debt service, and estimates of the amounts by which energy or operating costs will be
A guaranteed energy savings contract that includes a written guarantee that savings
will meet or exceed the cost of energy conservation measures is not subject to competitive
bidding requirements of section 471.345 or other law or city charter. The contract is
not subject to section 123B.52.
A municipality may enter into a guaranteed energy savings contract with a qualified
provider if, after review of the report, it finds that the amount it would spend on the energy
conservation measures recommended in the report is not likely to exceed the amount to be
saved in energy and operation costs over deleted text begin15deleted text end new text beginnew text endyears from the date of new text beginnew text end installation if
the recommendations in the report were followed, and the qualified provider provides a
written guarantee that the energy or operating cost savings will meet or exceed the costs
of the system. The guaranteed energy savings contract may provide for payments over a
period of time, not to exceed deleted text begin15deleted text end new text beginnew text endyears.
A municipality may enter into an installment payment contract for the purchase and
installation of energy conservation measures. The contract must provide for payments of
not less than deleted text begin1/15deleted text end new text beginnew text endof the price to be paid within two years from the date of the first
operation, and the remaining costs to be paid monthly, not to exceed a deleted text begin15-yeardeleted text end new text beginnew text endterm from the date of deleted text beginthe first operationdeleted text endnew text beginnew text end.
A municipality entering into a guaranteed energy savings contract shall provide a
copy of the contract and the report from the qualified provider to the commissioner of
commerce within 30 days of the effective date of the contract.
Guaranteed energy savings contracts may extend beyond the fiscal year in which
they become effective. The municipality shall include in its annual appropriations measure
for each later fiscal year any amounts payable under guaranteed energy savings contracts
during the year. Failure of a municipality to make such an appropriation does not affect
the validity of the guaranteed energy savings contract or the municipality's obligations
under the contracts.