HB 3653
Defines "energy performance contract" and allows authorized state agencies to enter into energy performance contracts without requiring a competitive procurement if the authorized state agency follows rules that the Attorney General adopts, negotiates a performance guarantee and enters into the contract with a qualified energy service company that the State Department of Energy prequalifies and approves.
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Sign in to take actionPublic sentiment
Support
91%
Oppose
9%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill defines "energy performance contract" and allows authorized state agencies to enter into these contracts without a competitive procurement process, provided they follow specific rules adopted by the Attorney General, negotiate a performance guarantee, and work with a qualified energy service company prequalified by the State Department of Energy. The bill aims to streamline energy efficiency projects for state agencies, potentially leading to cost savings and improved energy performance. It takes effect 91 days after the session ends.
Key provisions
- Defines "energy performance contract" and outlines its requirements.
- Allows authorized state agencies to enter into energy performance contracts without competitive bidding under certain conditions.
- Requires the Attorney General to adopt rules governing energy performance contracts.
- Mandates the State Department of Energy to prequalify and approve qualified energy service companies.
- Establishes a performance guarantee requirement for energy performance contracts.
- Specifies criteria for determining cost-effectiveness of energy conservation measures.
- Requires authorized state agencies to reduce energy consumption by at least 20% from a baseline.
- Creates a process for exempting certain public improvement contracts from competitive bidding requirements.
Who is affected
- State Agencies
- Energy Service Companies
- Oregon Department of Energy
- Attorney General’s Office
- Taxpayers (through potential cost savings)
Sponsors
Official sponsors from legislative records.
Primary sponsors
Emerson Levy
Cosponsors
David Brock Smith
Arguments in favor
Reasons to support this legislation.
Here's a synthesized paragraph representing the Support position: Testifiers generally support modernizing Oregon's Energy Savings Performance Contracting (ESPC) statutes to align with industry standards, aiming to reduce energy consumption and operational costs. They argue that streamlining the ESPC process would make energy efficiency projects more accessible and scalable for public entities, allowing them to upgrade building systems without upfront capital investment. Proponents see this as a crucial tool for decarbonizing public buildings in Oregon, addressing energy use as the second-largest source of emissions, and promoting fair contribution from ratepayers with modest electricity demand. By simplifying the process and reducing administrative burden, supporters believe that HB 3653 would help reduce utility bills and save taxpayer dollars, ultimately benefiting cash-constrained public entities and promoting a more efficient energy market.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Several concerns that HB 3653 will be costly to implement, with estimates suggesting significant expenditures for construction and monitoring. They argue that the bill's lack of a specific budget allocation or identified funding source raises questions about its feasibility and potential impact on government size. Additionally, some testify that the bill's provisions may lead to increased bureaucratic red tape and unnecessary regulations, which could stifle innovation and economic growth.