As Reported by the Senate Energy and Public Utilities Committee

127th General Assembly Regular Session 2007-2008

Am. H. B. No. 295

Representative Wagoner 

Cosponsors: Representatives Ujvagi, Szollosi, Peterson, Latta, Stebelton, Brown, Uecker, Chandler, McGregor, J., Combs, Celeste, Yuko, Fende, Mallory, Bolon, Bacon, Collier, Dyer, Evans, Flowers, Foley, Gardner, Garrison, Goyal, Hagan, R., Harwood, Hughes, Letson, Lundy, Otterman, J., Patton, Sayre, Setzer, Stewart, J., Williams, B., Williams, S., Zehringer 

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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 the lesser of their average system

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life or thirty years.

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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	9
Code be amended to read as follows:	10

Sec. 133.20.  (A) This section applies to bonds that are	11
general obligation Chapter 133. securities. If the bonds are	12
payable as to principal by provision for annual installments, the	13
period of limitations on their last maturity, referred to as their	14
maximum maturity, shall be measured from a date twelve months	15
prior to the first date on which provision for payment of	16
principal is made. If the bonds are payable as to principal by	17
provision for semiannual installments, the period of limitations	18
on their last maturity shall be measured from a date six months	19
prior to the first date on which provision for payment of	20
principal is made.	21

(B) Bonds issued for the following permanent improvements or	22
for permanent improvements for the following purposes shall have	23
maximum maturities not exceeding the number of years stated:	24

(1) Fifty years:

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(a) The clearance and preparation of real property for	26
redevelopment as an urban redevelopment project;	27

(b) Acquiring, constructing, widening, relocating, enlarging,	28
extending, and improving a publicly owned railroad or line of	29
railway or a light or heavy rail rapid transit system, including	30
related bridges, overpasses, underpasses, and tunnels, but not	31
including rolling stock or equipment;	32

(c) Pursuant to section 307.675 of the Revised Code,	33
constructing or repairing a bridge using long life expectancy	34
material for the bridge deck, and purchasing, installing, and	35
maintaining any performance equipment to monitor the physical	36
condition of a bridge so constructed or repaired. Additionally,	37
the average maturity of the bonds shall not exceed the expected	38
useful life of the bridge deck as determined by the county	39
engineer under that section.	40

(2) Forty years:

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(a) General waterworks or water system permanent	42
improvements, including buildings, water mains, or other	43
structures and facilities in connection therewith;	44

(b) Sewers or sewage treatment or disposal works or	45
facilities, including fireproof buildings or other structures in	46
connection therewith;	47

(c) Storm water drainage, surface water, and flood prevention	48
facilities.	49

(3) Thirty-five years:

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(a) An arena, a convention center, or a combination of an	51
arena and convention center under section 307.695 of the Revised	52
Code;	53

(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	59
wires, cables, and appurtenant equipment underground.	60

(5) Twenty years: constructing, reconstructing, widening,	61
opening, improving, grading, draining, paving, extending, or	62
changing the line of roads, highways, expressways, freeways,	63
streets, sidewalks, alleys, or curbs and gutters, and related	64
bridges, viaducts, overpasses, underpasses, grade crossing	65
eliminations, service and access highways, and tunnels.	66

(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	69
police or fire departments or other emergency services;	70

(c) Passenger buses used for mass transportation;

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(d) Energy conservation measures as authorized by section	72
133.06 of the Revised Code.	73

(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	77
vehicles;	78

(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	81
apparatus;	82

(g) Energy conservation measures as authorized by section	83
307.041, 505.264, or 717.02 of the Revised Code.	84

(8) Five years: New motor vehicles other than those described	85
in any other division of this section and those for which	86
provision is made in other provisions of the Revised Code.	87

(C) Bonds issued for any permanent improvements not within	88
the categories set forth in division (B) of this section shall	89
have maximum maturities of from five to thirty years as the fiscal	90
officer estimates is the estimated life or period of usefulness of	91
those permanent improvements. Bonds issued under section 133.51 of	92
the Revised Code for purposes other than permanent improvements	93
shall have the maturities, not to exceed forty years, that the	94
taxing authority shall specify. Bonds issued for energy	95
conservation measures under section 307.041 of the Revised Code	96
shall have maximum maturities not exceeding the lesser of the	97
average life of the energy conservation measures as detailed in	98
the energy conservation report prepared under that section or	99
thirty years.	100

(D) Securities issued under section 505.265 or 717.07 of the	101
Revised Code shall mature not later than December 31, 2035.	102

(E) A securities issue for one purpose may include permanent	103
improvements within two or more categories under divisions (B) and	104
(C) of this section. The maximum maturity of such a bond issue	105
shall not exceed the average number of years of life or period of	106
usefulness of the permanent improvements as measured by the	107
weighted average of the amounts expended or proposed to be	108
expended for the categories of permanent improvements.	109

Sec. 307.041.  (A) As used in this section, "energy	110
conservation measure" means an installation or modification of an	111
installation in, or remodeling of, an existing building, to reduce	112
energy consumption. It"Energy conservation measure" includes the	113
following:	114

(1) Insulation of the building structure and of systems	115
within the building;	116

(2) Storm windows and doors, multiglazed windows and doors,	117
heat-absorbing or heat-reflective glazed and coated window and	118
door systems, additional glazing, reductions in glass area, and	119
other window and door system modifications that reduce energy	120
consumption;	121

(3) Automatic energy control systems;

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(4) Heating, ventilating, or air conditioning system	123
modifications or replacements;	124

(5) Caulking and weatherstripping;

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(6) Replacement or modification of lighting fixtures to	126
increase the energy efficiency of the system without increasing	127
the overall illumination of a facility, unless such an increase in	128
illumination is necessary to conform to the applicable state or	129
local building code for the proposed lighting system;	130

(7) Energy recovery systems;

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(8) Cogeneration systems that produce steam or forms of	132
energy such as heat, as well as electricity, for use primarily	133
within a building or complex of buildings;	134

(9) Acquiring, constructing, furnishing, equipping, improving	135
the site of, and otherwise improving a central utility plant to	136
provide heating and cooling services to a building or buildings	137
together with distribution piping and ancillary distribution	138
controls, equipment, and related facilities from the central	139
utility plant to the building or buildings;	140

(10) Any other modification, installation, or remodeling	141
approved by the board of county commissioners as an energy	142
conservation measure.	143

(B) For the purpose of evaluating county buildings for energy	144
conservation measures, a county may contract with an architect,	145
professional engineer, energy services company, contractor, or	146
other person experienced in the design and implementation of	147
energy conservation measures for aan energy conservation report	148
that analyzes. The report shall include all of the following:	149

(1) Analyses of the buildings' energy needs and presents	150
recommendations for building installations, modifications of	151
existing installations, or building remodeling that would	152
significantly reduce energy consumption in the buildings owned by	153
that county. The report shall include estimates;	154

(2) Estimates of all costs of suchthose installations, those	155
modifications, or that remodeling, including costs of design,	156
engineering, installation, maintenance, and repairs, and	157
estimates;	158

(3) Estimates of the amounts by which energy consumption	159
could be reduced;	160

(4) The interest rate used to estimate the costs of any	161
energy conservation measures that are to be financed;	162

(5) The average system life of the energy conservation	163
measures;	164

(6) Estimates of the likely savings that will result from the	165
reduction in energy consumption over the average system life of	166
the energy conservation measure, including the methods used to	167
estimate the savings;	168

(7) A certification under the seal of a registered	169
professional engineer that the energy conservation report uses	170
reasonable methods of analysis and estimation.	171

(C)(1) A county desiring to implement energy conservation	172
measures may proceed under either of the following methods:	173

(1)(a) Using a report or any part of aan energy conservation	174
report prepared under division (B) of this section, advertise for	175
bids and, except as otherwise provided in this section, comply	176
with sections 307.86 to 307.92 of the Revised Code;	177

(2)(b) Notwithstanding sections 307.86 to 307.92 of the	178
Revised Code, request proposals from at least three vendors for	179
the implementation of energy conservation measures. A request for	180
proposals shall require the installer that is awarded a contract	181
under division (C)(2)(b) of this section to prepare an energy	182
conservation report in accordance with division (B) of this	183
section. Prior to sending any installer of energy conservation	184
measures a copy of any such request for proposals, the county	185
shall advertise its intent to request proposals for the	186
installation of energy conservation measures in a newspaper of	187
general circulation in the county once a week for two consecutive	188
weeks. The notice shall state that the county intends to request	189
proposals for the installation of energy conservation measures;	190
indicate the date, which shall be at least ten days after the	191
second publication, on which the request for proposals will be	192
mailed to installers of energy conservation measures; and state	193
that any installer of energy conservation measures interested in	194
receiving the request for proposalproposals shall submit written	195
notice to the county not later than noon of the day on which the	196
request for proposalproposals will be mailed.	197

(2)(a) Upon receiving the proposalsbids under division	198
(C)(1)(a) of this section, the county shall analyze them and	199
select the proposal or proposalslowest and best bid or bids most	200
likely to result in the greatest energy savings considering the	201
cost of the project and the county's ability to pay for the	202
improvements with current revenues or by financing the	203
improvements. The	204

(b) Upon receiving proposals under division (C)(1)(b) of this	205
section, the county shall analyze the proposals and the	206
installers' qualifications and select the most qualified installer	207
to prepare an energy conservation report in accordance with	208
division (B) of this section. After receipt and review of the	209
energy conservation report, the county may award a contract to the	210
selected installer to install the energy conservation measures	211
that are most likely to result in the greatest energy savings	212
considering the cost of the project and the county's ability to	213
pay for the improvements with current revenues or by financing the	214
improvements.	215

(c) The awarding of a contract to install energy conservation	216
measures under division (C)(2)(a) or (b) of this section shall be	217
conditioned upon a finding by the contracting authority that the	218
amount of money spent on the energy savingsconservation measures	219
is not likely to exceed the amount of money the county would save	220
in energy and, operating, maintenance, and avoided capital costs	221
over ten years or a lesser period as determined by the contracting	222
authority or, in the case of contracts for cogeneration systems,	223
over five years or a lesser period as determined by the	224
contracting authorityaverage system life of the energy	225
conservation measures as specified in the energy conservation	226
report. In making such a finding, the contracting authority may	227
take into account increased costs due to inflation as shown in the	228
energy conservation report. Nothing in this sectiondivision	229
prohibits a county from rejecting all bids or proposals under	230
division (C)(1)(a) or (b) of this section or from selecting more	231
than one bid or proposal.	232

(D) A board of county commissioners may enter into an	233
installment payment contract for the purchase and installation of	234
energy conservation measures. Those provisionsProvisions of such	235
installment payment contracts that deal with interest charges and	236
financing terms shall not be subject to the competitive bidding	237
requirements of section 307.86 of the Revised Code, and shall be	238
on the following terms:	239

(1) Not less than one-tentha specified percentage, as	240
determined and approved by the board of county commissioners, of	241
the costs of the contract shall be paid within two years from the	242
date of purchase.	243

(2) The remaining balance of the costs of the contract shall	244
be paid within ten years from the date of purchase or, in the case	245
of contracts for cogeneration systems, within five years fromthe	246
lesser of the date of purchaseaverage system life of the energy	247
conservation measures as specified in the energy conservation	248
report or thirty years.	249

Unless otherwise approved by a resolution of the board, an	250
installment payment contract entered into by a board of county	251
commissioners under this section shall require the board to	252
contract in accordance with section 307.86 of the Revised Code for	253
the installation, modification, or remodeling of energy	254
conservation measures pursuant to this section.	255

(E) The board of county commissioners may issue the notes of	256
the county specifying the terms of thea purchase of energy	257
conservation measures under this section and securing theany	258
deferred payments provided for in division (D) of this section,.	259
The notes shall be payable at the times provided and bearingbear	260
interest at a rate not exceeding the rate determined as provided	261
in section 9.95 of the Revised Code. The notes may contain an	262
option for prepayment and shall not be subject to Chapter 133. of	263
the Revised Code. Revenues derived from local taxes or otherwise,	264
for the purpose of conserving energy or for defraying the current	265
operating expenses of the county, may be pledged and applied to	266
the payment of interest and the retirement of suchthe notes. The	267
notes may be sold at private sale or given to the contractor under	268
thean installment payment contract authorized by division (D) of	269
this section.	270

(F) Debt incurred under this section shall not be included in	271
the calculation of the net indebtedness of a county under section	272
133.07 of the Revised Code.	273

Section 2.  That existing sections 133.20 and 307.041 of the	274
Revised Code are hereby repealed.	275

Section 3. The amendments to sections 133.20 and 307.041 of	276
the Revised Code by this act apply to any proceedings commenced	277
after the effective date of this act and, so far as the provisions	278
thereof support the actions taken, to any proceedings pending or	279
in progress on, or completed prior to, the effective date of this	280
act. The authority provided by sections 133.20 and 307.041 of the	281
Revised Code as amended by this act is supplemental to and not in	282
derogation of any similar authority provided by, derived from, or	283
implied by any law, the Constitution, or any charter, resolution,	284
or ordinance, and no inference shall be drawn to negate the	285
authority thereunder by reason of the express provisions contained	286
in sections 133.20 and 307.041 of the Revised Code as amended by	287
this act.	288