As Introduced

127th General Assembly Regular Session 2007-2008

H. B. No. 295

Representative Wagoner 

Cosponsors: Representatives Ujvagi, Szollosi, Peterson, Latta, Stebelton, Brown, Uecker 

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A BILL

To amend sections 133.20 and 307.041 of the Revised

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Code to require that the amount spent by counties

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on energy conservation measures be unlikely to

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exceed the amount saved in energy and operating

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costs over the average system life of the

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measures, and to require that financed measures be

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paid for within their average system life.

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 133.20 and 307.041 of the Revised	8
Code be amended to read as follows:	9

Sec. 133.20.  (A) This section applies to bonds that are	10
general obligation Chapter 133. securities. If the bonds are	11
payable as to principal by provision for annual installments, the	12
period of limitations on their last maturity, referred to as their	13
maximum maturity, shall be measured from a date twelve months	14
prior to the first date on which provision for payment of	15
principal is made. If the bonds are payable as to principal by	16
provision for semiannual installments, the period of limitations	17
on their last maturity shall be measured from a date six months	18
prior to the first date on which provision for payment of	19
principal is made.	20

(B) Bonds issued for the following permanent improvements or	21
for permanent improvements for the following purposes shall have	22
maximum maturities not exceeding the number of years stated:	23

(1) Fifty years:

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(a) The clearance and preparation of real property for	25
redevelopment as an urban redevelopment project;	26

(b) Acquiring, constructing, widening, relocating, enlarging,	27
extending, and improving a publicly owned railroad or line of	28
railway or a light or heavy rail rapid transit system, including	29
related bridges, overpasses, underpasses, and tunnels, but not	30
including rolling stock or equipment;	31

(c) Pursuant to section 307.675 of the Revised Code,	32
constructing or repairing a bridge using long life expectancy	33
material for the bridge deck, and purchasing, installing, and	34
maintaining any performance equipment to monitor the physical	35
condition of a bridge so constructed or repaired. Additionally,	36
the average maturity of the bonds shall not exceed the expected	37
useful life of the bridge deck as determined by the county	38
engineer under that section.	39

(2) Forty years:

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(a) General waterworks or water system permanent	41
improvements, including buildings, water mains, or other	42
structures and facilities in connection therewith;	43

(b) Sewers or sewage treatment or disposal works or	44
facilities, including fireproof buildings or other structures in	45
connection therewith;	46

(c) Storm water drainage, surface water, and flood prevention	47
facilities.	48

(3) Thirty-five years:

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(a) An arena, a convention center, or a combination of an	50
arena and convention center under section 307.695 of the Revised	51
Code;	52

(b) Sports facilities.

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(4) Thirty years:

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(a) Municipal recreation, excluding recreational equipment;

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(b) Urban redevelopment projects;

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(c) Acquisition of real property;

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(d) Street or alley lighting purposes or relocating overhead	58
wires, cables, and appurtenant equipment underground.	59

(5) Twenty years: constructing, reconstructing, widening,	60
opening, improving, grading, draining, paving, extending, or	61
changing the line of roads, highways, expressways, freeways,	62
streets, sidewalks, alleys, or curbs and gutters, and related	63
bridges, viaducts, overpasses, underpasses, grade crossing	64
eliminations, service and access highways, and tunnels.	65

(6) Fifteen years:

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(a) Resurfacing roads, highways, streets, or alleys;

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(b) Alarm, telegraph, or other communications systems for	68
police or fire departments or other emergency services;	69

(c) Passenger buses used for mass transportation;

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(d) Energy conservation measures as authorized by section	71
133.06 of the Revised Code.	72

(7) Ten years:

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(a) Water meters;

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(b) Fire department apparatus and equipment;

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(c) Road rollers and other road construction and servicing	76
vehicles;	77

(d) Furniture, equipment, and furnishings;

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(e) Landscape planting and other site improvements;

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(f) Playground, athletic, and recreational equipment and	80
apparatus;	81

(g) Energy conservation measures as authorized by section	82
307.041, 505.264, or 717.02 of the Revised Code.	83

(8) Five years: New motor vehicles other than those described	84
in any other division of this section and those for which	85
provision is made in other provisions of the Revised Code.	86

(C) Bonds issued for any permanent improvements not within	87
the categories set forth in division (B) of this section shall	88
have maximum maturities of from five to thirty years as the fiscal	89
officer estimates is the estimated life or period of usefulness of	90
those permanent improvements. Bonds issued under section 133.51 of	91
the Revised Code for purposes other than permanent improvements	92
shall have the maturities, not to exceed forty years, that the	93
taxing authority shall specify. Bonds issued for energy	94
conservation measures under section 307.041 of the Revised Code	95
shall have maximum maturities not exceeding the average life of	96
the energy conservation measures as detailed in the energy	97
conservation report prepared under that section.	98

(D) Securities issued under section 505.265 or 717.07 of the	99
Revised Code shall mature not later than December 31, 2035.	100

(E) A securities issue for one purpose may include permanent	101
improvements within two or more categories under divisions (B) and	102
(C) of this section. The maximum maturity of such a bond issue	103
shall not exceed the average number of years of life or period of	104
usefulness of the permanent improvements as measured by the	105
weighted average of the amounts expended or proposed to be	106
expended for the categories of permanent improvements.	107

Sec. 307.041.  (A) As used in this section, "energy	108
conservation measure" means an installation or modification of an	109
installation in, or remodeling of, an existing building, to reduce	110
energy consumption. It"Energy conservation measure" includes the	111
following:	112

(1) Insulation of the building structure and of systems	113
within the building;	114

(2) Storm windows and doors, multiglazed windows and doors,	115
heat-absorbing or heat-reflective glazed and coated window and	116
door systems, additional glazing, reductions in glass area, and	117
other window and door system modifications that reduce energy	118
consumption;	119

(3) Automatic energy control systems;

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(4) Heating, ventilating, or air conditioning system	121
modifications or replacements;	122

(5) Caulking and weatherstripping;

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(6) Replacement or modification of lighting fixtures to	124
increase the energy efficiency of the system without increasing	125
the overall illumination of a facility, unless such an increase in	126
illumination is necessary to conform to the applicable state or	127
local building code for the proposed lighting system;	128

(7) Energy recovery systems;

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(8) Cogeneration systems that produce steam or forms of	130
energy such as heat, as well as electricity, for use primarily	131
within a building or complex of buildings;	132

(9) Acquiring, constructing, furnishing, equipping, improving	133
the site of, and otherwise improving a central utility plant to	134
provide heating and cooling services to a building or buildings	135
together with distribution piping and ancillary distribution	136
controls, equipment, and related facilities from the central	137
utility plant to the building or buildings;	138

(10) Any other modification, installation, or remodeling	139
approved by the board of county commissioners as an energy	140
conservation measure.	141

(B) For the purpose of evaluating county buildings for energy	142
conservation measures, a county may contract with an architect,	143
professional engineer, energy services company, contractor, or	144
other person experienced in the design and implementation of	145
energy conservation measures for aan energy conservation report	146
that analyzes. The report shall include all of the following:	147

(1) Analyses of the buildings' energy needs and presents	148
recommendations for building installations, modifications of	149
existing installations, or building remodeling that would	150
significantly reduce energy consumption in the buildings owned by	151
that county. The report shall include estimates;	152

(2) Estimates of all costs of suchthose installations, those	153
modifications, or that remodeling, including costs of design,	154
engineering, installation, maintenance, and repairs, and	155
estimates;	156

(3) Estimates of the amounts by which energy consumption	157
could be reduced;	158

(4) The interest rate used to estimate the costs of any	159
energy conservation measures that are to be financed;	160

(5) The average system life of the energy conservation	161
measures;	162

(6) Estimates of the likely savings that will result from the	163
reduction in energy consumption over the average system life of	164
the energy conservation measure, including the methods used to	165
estimate the savings;	166

(7) A certification under the seal of a registered	167
professional engineer that the energy conservation report uses	168
reasonable methods of analysis and estimation.	169

(C)(1) A county desiring to implement energy conservation	170
measures may proceed under either of the following methods:	171

(1)(a) Using a report or any part of aan energy conservation	172
report prepared under division (B) of this section, advertise for	173
bids and, except as otherwise provided in this section, comply	174
with sections 307.86 to 307.92 of the Revised Code;	175

(2)(b) Notwithstanding sections 307.86 to 307.92 of the	176
Revised Code, request proposals from at least three vendors for	177
the implementation of energy conservation measures. A request for	178
proposals shall require the installer that is awarded a contract	179
under division (C)(2)(b) of this section to prepare an energy	180
conservation report in accordance with division (B) of this	181
section. Prior to sending any installer of energy conservation	182
measures a copy of any such request for proposals, the county	183
shall advertise its intent to request proposals for the	184
installation of energy conservation measures in a newspaper of	185
general circulation in the county once a week for two consecutive	186
weeks. The notice shall state that the county intends to request	187
proposals for the installation of energy conservation measures;	188
indicate the date, which shall be at least ten days after the	189
second publication, on which the request for proposals will be	190
mailed to installers of energy conservation measures; and state	191
that any installer of energy conservation measures interested in	192
receiving the request for proposalproposals shall submit written	193
notice to the county not later than noon of the day on which the	194
request for proposalproposals will be mailed.	195

(2)(a) Upon receiving the proposalsbids under division	196
(C)(1)(a) of this section, the county shall analyze them and	197
select the proposal or proposalslowest and best bid or bids most	198
likely to result in the greatest energy savings considering the	199
cost of the project and the county's ability to pay for the	200
improvements with current revenues or by financing the	201
improvements. The	202

(b) Upon receiving proposals under division (C)(1)(b) of this	203
section, the county shall analyze the proposals and the	204
installers' qualifications and select the most qualified installer	205
to prepare an energy conservation report in accordance with	206
division (B) of this section. After receipt and review of the	207
energy conservation report, the county may award a contract to the	208
selected installer to install the energy conservation measures	209
that are most likely to result in the greatest energy savings	210
considering the cost of the project and the county's ability to	211
pay for the improvements with current revenues or by financing the	212
improvements.	213

(c) The awarding of a contract to install energy conservation	214
measures under division (C)(2)(a) or (b) of this section shall be	215
conditioned upon a finding by the contracting authority that the	216
amount of money spent on the energy savingsconservation measures	217
is not likely to exceed the amount of money the county would save	218
in energy and, operating, maintenance, and avoided capital costs	219
over ten years or a lesser period as determined by the contracting	220
authority or, in the case of contracts for cogeneration systems,	221
over five years or a lesser period as determined by the	222
contracting authorityaverage system life of the energy	223
conservation measures as specified in the energy conservation	224
report. In making such a finding, the contracting authority may	225
take into account increased costs due to inflation as shown in the	226
energy conservation report. Nothing in this sectiondivision	227
prohibits a county from rejecting all bids or proposals under	228
division (C)(1)(a) or (b) of this section or from selecting more	229
than one bid or proposal.	230

(D) A board of county commissioners may enter into an	231
installment payment contract for the purchase and installation of	232
energy conservation measures. Those provisionsProvisions of such	233
installment payment contracts that deal with interest charges and	234
financing terms shall not be subject to the competitive bidding	235
requirements of section 307.86 of the Revised Code, and shall be	236
on the following terms:	237

(1) Not less than one-tentha specified percentage, as	238
determined and approved by the board of county commissioners, of	239
the costs of the contract shall be paid within two years from the	240
date of purchase.	241

(2) The remaining balance of the costs of the contract shall	242
be paid within ten years from the date of purchase or, in the case	243
of contracts for cogeneration systems, within five years from the	244
date of purchaseaverage system life of the energy conservation	245
measures as specified in the energy conservation report.	246

Unless otherwise approved by a resolution of the board, an	247
installment payment contract entered into by a board of county	248
commissioners under this section shall require the board to	249
contract in accordance with section 307.86 of the Revised Code for	250
the installation, modification, or remodeling of energy	251
conservation measures pursuant to this section.	252

(E) The board of county commissioners may issue the notes of	253
the county specifying the terms of thea purchase of energy	254
conservation measures under this section and securing theany	255
deferred payments provided for in division (D) of this section,.	256
The notes shall be payable at the times provided and bearingbear	257
interest at a rate not exceeding the rate determined as provided	258
in section 9.95 of the Revised Code. The notes may contain an	259
option for prepayment and shall not be subject to Chapter 133. of	260
the Revised Code. Revenues derived from local taxes or otherwise,	261
for the purpose of conserving energy or for defraying the current	262
operating expenses of the county, may be pledged and applied to	263
the payment of interest and the retirement of suchthe notes. The	264
notes may be sold at private sale or given to the contractor under	265
thean installment payment contract authorized by division (D) of	266
this section.	267

(F) Debt incurred under this section shall not be included in	268
the calculation of the net indebtedness of a county under section	269
133.07 of the Revised Code.	270

Section 2.  That existing sections 133.20 and 307.041 of the	271
Revised Code are hereby repealed.	272

Section 3. The amendments to sections 133.20 and 307.041 of	273
the Revised Code by this act apply to any proceedings commenced	274
after the effective date of this act and, so far as the provisions	275
thereof support the actions taken, to any proceedings pending or	276
in progress on, or completed prior to, the effective date of this	277
act. The authority provided by sections 133.20 and 307.041 of the	278
Revised Code as amended by this act is supplemental to and not in	279
derogation of any similar authority provided by, derived from, or	280
implied by any law, the Constitution, or any charter, resolution,	281
or ordinance, and no inference shall be drawn to negate the	282
authority thereunder by reason of the express provisions contained	283
in sections 133.20 and 307.041 of the Revised Code as amended by	284
this act.	285