BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          SB 467 (Pavley)
          
          Hearing Date: 5/26/2011         Amended: 5/3/2011
          Consultant: Bob Franzoia        Policy Vote: G O 11-1
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          BILL SUMMARY: SB 467 would require the Department of General 
          Services (department) to deem a contract for an energy 
          efficiency product or service to be a no cost or net neutral 
          cost contract when specified conditions are met.  This bill 
          would require the department to issue a non-mandatory master 
          services agreement permitting owners, operators, and tenants of 
          state facilities to procure energy efficiency products or 
          services according to specified criteria.
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                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           New energy efficiency                         
          contract bidding procedure                    
            - issuance of master Minimum $120 one time; up to $60          
               Special*          
              services agreement ongoing

            - pilot or demonstration        Up to $120 annually   Special*
              contracts

          * Service Revolving Fund (a cost recovery fund operated by the 
          department) 
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          STAFF COMMENTS: SUSPENSE FILE.   AS PROPOSED TO BE AMENDED.

          The department shall issue a master services agreement which 
          would enable owners, operators and tenants of stat facilities to 
          procure energy efficiency products or services from approved 
          companies included in the agreement.  

          Requiring the department to issue a master services agreement 
          that involves guidance from university centers determining that 
          the included companies have a record of providing those products 
          or services to governmental entities or private sector companies 








          SB 467 (Pavley)
          Page 1


          for at least two years prior to January 1, 2012, and developing 
          product and service specifications within six months of the 
          effective date of the bill is labor intensive and depends in 
          part on the amount of work already completed by university 
          centers.

          For example, for the master services agreement to include an 
          energy efficiency product or service, the department must 
          determine the cost savings to the state are projected to exceed 
          the compensation the state pays for the technology or service 
          within 12 months of the initial deployment of the product or 
          service.  Such a determination would likely require ongoing 
          review and revision.  
          
          The proposed amendments would require the department to issue a 
          master services agreement by January 1, 2013 and extend from 12 
          months to 36 months the time where energy savings to the state 
          are projected to exceed the cost of the technology.