Brief (1)
HB 2603, as amended, authorizes local units of government and state agencies to enter into contracts or lease purchase agreements for energy conservation measures. Any such conservation measures financed under the provisions of the bill must have a cost recovery period of not more than 20 years, as estimated by an engineer licensed to do business in Kansas. The Secretary of Administration must review and approve all projects proposed for state agencies. Under the bill, the Secretary of Administration is authorized to charge and collect reasonable fees for services provided by the Department of Administration.
The bill also authorizes the State Corporation Commission to provide grants for engineering studies and energy conservation measures for municipalities and state agencies, within the limits of appropriations for such grants.
Background
As one way of financing energy conservation projects, a contractor or service provider may agree to install the energy conservation measure or provide the financing necessary to install the measure based on a percentage of the projected energy operational savings. HB 2603, as amended, clarifies that state agencies and local units of government have the authority to enter into such contracts.
Representatives of the State Conservation Commission, the Department of Administration, the Kansas Consulting Engineers Association, the University of Kansas, and Custom Energy, LLC, provided testimony in support of the bill. There were no opponents to the bill.
The House Committee amendments clarify that any proposed improvements are to be based on estimated savings, as opposed to guaranteed savings, and that the Secretary of Administration may charge fees to cover services provided by the Department.
The fiscal note prepared by the Division of the Budget on the bill as introduced states that the bill would have no fiscal impact other than what is appropriated by the Legislature to the State Corporation Commission for grants.
1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html