SB-0482, As Passed Senate, October 22, 2003

SENATE BILL No. 482

May 14, 2003, Introduced by Senators KUIPERS and ALLEN and referred to the Committee on Education.

                                                                             A bill to amend 1976 PA 451, entitled                                             

"The revised school code,"                                                  

by amending section 1274a (MCL 380.1274a), as amended by 1990 PA            

227.                                                                        

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 1274a.  (1) The board of a school district,                            

2   intermediate school district, or local act school district may              

3   provide contract with a qualified provider for energy                     

4   conservation improvements  to be made  to school facilities.  and           

5   may pay for the improvements These improvements may be paid from           

6   operating funds of the school district or from the proceeds of              

7   bonds or notes issued for energy conservation improvements, or              

8   the board or intermediate school board may enter into contracts             

9   in which the cost of the energy conservation improvements is paid           

10  from a portion of the savings  which that result from the                  

Senate Bill No. 482 as amended October 21, 2003                             

1   improvements.  These contractual agreements may provide that the            

2   Costs of improvements will be paid only if the energy savings are           

3   sufficient to cover them.  Energy conservation improvements may             

4   include, but are not limited to, <<heating system improvements,

5   fenestration improvements, roof improvements, the installation of

6   any insulation, the installation or repair of heating or air

7   conditioning controls, and entrance or exit way closures building envelope improvements; heating and cooling upgrades; lighting retrofits; installing or upgrading an energy management system; motor, pump, or fan replacements; domestic water use reductions; and upgrading other energy consuming equipment or appliances>>.  As                                                               

8   used in this subsection, "qualified provider" means an individual           

9   or a business entity that is experienced in performing design,              

10  analysis, and installation of energy conservation improvements              

11  and facility <<energy>> management measures and that will provide these     

12 services under the contract <<with a guarantee or on a performance basis>>.

    <<(2) A school board or intermediate school board that contracts for energy conservation improvements under subsection (1) may require the qualified provider to furnish a bond that guarantees energy cost savings for a specified period of time.>>

13  <<(3) (2)>> The board of a school district, intermediate school             

14  district, or local act school district may provide for the                  

15  removal or treatment of asbestos or other material injurious to             

16  health for school facilities and may pay for the improvements               

17  from operating funds of the school district or from the proceeds            

18  of bonds or notes issued for  such that purpose.                           

19  <<(4) (3)>> Issuance of bonds for the purposes authorized by this           

20  section shall be considered as issued for capital expenditures              

21  for all purposes including section 16 of article IX of the state            

22  Constitution of 1963.                                                       

23  <<(5) (4)>> Energy conservation improvements or substance removal or        

24  treatment authorized by this section  shall be is subject to the           

25  Competitive bidding requirements of section 1267.                           

26  <<(6) (5)>> If energy conservation improvements are made by a school        

27  district, local act school district, or  an  intermediate school            

Senate Bill No. 482 as amended October 21, 2003                             

1   district as provided in this section, the school board  of the              

2   school district or an or intermediate school  district board

3   Shall report the following information to the Michigan public              

4   service commission state treasurer within 60 days after the                

5   completion of the improvements:                                             

6       (a) Name of each facility to which an improvement was made                  

7   and a description of the conservation improvements.                         

8       (b) Actual energy consumption during the 12-month period                    

9   before completion of the improvement.                                       

10      (c) Project costs and expenditures.                                         

11      (d) Estimated annual energy savings.                                        

12  <<(7) (6)>> If energy conservation improvements are made as provided        

13  in this section, the school board  of the school district or an

14  or intermediate school  district board shall report to the                 

15  Michigan public service commission state treasurer by July 1 of           

16  each of the 5 years after the improvements are completed the                

17  actual annual energy consumption of each facility to which                  

18  Improvements were made.  The forms for the reports required by              

19  this section shall be furnished by the Michigan public service             

20  commission state treasurer.