To amend sections 123.011, 125.09, and 125.11 and to enact section 3345.69 of the Revised Code to specify certain energy efficiency and conservation standards relating to facility construction and leasing that the Office of Energy Services in the Department of Administrative Services must adopt and with which state agencies and public schools must comply unless they meet higher standards; require certain additional duties, and additional cooperation between the Office and the Office of Energy Efficiency of the Department of Development, relating to state purchasing; require the Department of Administrative Services to give preference to procuring products and services that meet federal energy efficiency guidelines; and require boards of trustees of state institutions of higher education to adopt rules to carry out on- and off-campus building, energy efficiency and conservation guidelines developed by a committee of those institutions in consultation with the Office of Energy Services.

Section 1.  That sections 123.011, 125.09, and 125.11 be amended and section 3345.69 of the Revised Code be enacted to read as follows:

Sec. 123.011.  (A) There As used in this section:

(1) "Construct" includes reconstruct, improve, renovate, enlarge, or otherwise alter.

(2) "Energy consumption analysis" means the evaluation of all energy consuming systems, components, and equipment by demand and type of energy, including the internal energy load imposed on a facility by its occupants and the external energy load imposed by climatic conditions.

(3) "Energy performance index" means a number describing the energy requirements of a facility per square foot of floor space or per cubic foot of occupied volume as appropriate under defined internal and external ambient conditions over an entire seasonal cycle.

(4) "Facility" means a building or other structure, or part of a building or other structure, that includes provision for a heating, refrigeration, ventilation, cooling, lighting, hot water, or other major energy consuming system, component, or equipment.

(5) "State funded" means funded in whole or in part through appropriation by the general assembly or through the use of any guarantee provided by this state.

(6) "State institution of higher education" has the same meaning as in section 3345.011 of the Revised Code.

(B) There is hereby created within the department of administrative services an office to be known as the office of energy services. The office shall be under the supervision of a manager, who shall be appointed by the director of administrative services. The director shall assign to the office a such number of employees and furnish such equipment and supplies that the director considers as are necessary for the proper full performance of the office's duties assigned to the office.

The office shall develop energy efficiency and conservation programs in each of the following areas:

(1) New construction design and review;

(2) Existing building audit and retrofit;

(3) Energy efficient procurement;

(4) Alternate fuel vehicles.

The office may accept and administer grants from public and private sources for carrying out any of its duties under this section.

(B) In addition to its duties under division (A) of this section, the office shall assist the department in its responsibility for state-owned, assisted, and leased facilities by ensuring that energy conservation goals are observed in the design, construction, renovation, and utilization of these facilities in a manner that will minimize the consumption of energy used in the operation and maintenance of such facilities. This process shall include the use of life-cycle costs, including construction, the costs of operation and maintenance of the facility as it affects energy consumption over the economic life of the facility, and energy consumption analyses of existing facilities in order to determine and require necessary changes in the operation and maintenance of such facilities.

As used in this section:

(1) "Facility" means a building or other structure that includes provision for a heating or cooling system, or both, or for a hot water system.

(2) "State-assisted facility" means a facility constructed or renovated in whole or in part with state or federal funds or with funds guaranteed or provided by or through a state agency.

(3) "Energy consumption analysis" means the evaluation of all energy consuming systems and components by demand and type of energy, including the internal energy load imposed on a facility by its occupants, equipment, and components and the external energy load imposed on a facility by climatic conditions.

(4) "Energy performance index" means a number describing the energy requirements of a facility per square foot of floor space or per cubic foot of occupied volume as appropriate under defined internal and external ambient conditions over an entire seasonal cycle.

(5) "Life-cycle costs" means the cost of owning, operating, and maintaining a facility over the life of the structure. This may be expressed as an annual cost for each year of the facility's use.

(C) No state agency, department, division, bureau, office, unit, board, commission, authority, quasi-governmental entity, or institution, including those agencies otherwise excluded from the jurisdiction of the department under division (A)(3) of section 123.01 of the Revised Code, and no public school shall lease, construct, or have cause to be leased or constructed, within the limits prescribed in this section, a state-funded facility, without having secured from the office a proper evaluation of life-cycle costs cost analysis or, in the case of a lease, an energy consumption analysis, as computed or prepared by a qualified architect or engineer in accordance with the rules required by division (D) of this section. Construction

Construction shall proceed only upon the disclosure to the office, for the facility chosen, of the life-cycle costs as determined in this section and the capitalization of the initial construction costs of the building. The results of life-cycle costs cost analysis shall be a primary consideration in the selection of a building design. Such That analysis shall be required only for construction of buildings with an area of five thousand square feet or greater. No such agency shall lease An energy consumption analysis for the term of a proposed lease shall be required only for the leasing of an area of twenty thousand square feet or greater within a given building boundary, without having secured from the office a proper evaluation of an energy consumption analysis for the term of the proposed lease. Such energy consumption That analysis shall be a primary consideration in the selection of a facility to be leased. Nothing

Nothing in this section shall deprive or limit any state agency or public school that has review authority over design or, construction, or leasing plans from requiring a life-cycle cost analysis or energy consumption analysis.

Whenever any state department, agency, department, division, bureau, office, unit, board, commission, authority, quasi-governmental entity, or institution requests release of capital improvement funds for any state-funded facility, it shall submit copies of all pertinent life-cycle cost analyses prepared pursuant to this section and in accordance with rules adopted under Chapters 3781. and 4101. of the Revised Code.

(D) The For the purposes of assisting the department in its responsibility for state-funded facilities pursuant to section 123.01 of the Revised Code and of cost-effectively reducing the energy consumption of those and any other state-funded facilities, thereby promoting fiscal, economic, and environmental benefits to this state, the office shall promulgate adopt rules and procedures, including energy conservation performance guidelines, for conducting a life-cycle cost analysis of alternative architectural and engineering designs and for developing energy performance indices to evaluate the efficiency of energy utilization of competing designs in the construction of state-financed and leased facilities. The rules and procedures shall take effect February 3, 1979.

The specifying cost-effective, energy efficiency and conservation standards that shall govern the lease, design, construction, operation, and maintenance of all state-funded facilities excepting facilities of state institutions of higher education. The office of energy efficiency in the department of development shall cooperate in providing information and technical expertise to the office of energy services to ensure adoption of rules of maximum effectiveness. Initial rules shall be adopted not later than nine months after the effective date of this amendment. The standards prescribed by rules adopted under this division may draw from or incorporate, by reference or otherwise and in whole or in part, standards already developed or implemented by any competent, public or private standards organization or program. However, the rules also shall include all of the following:

(1) Specification of an energy efficiency design standard for heating, refrigeration, and air conditioning systems, components, and equipment in state-funded facilities excepting facilities of state institutions of higher education, that is twenty per cent above the applicable standard specified in the American society of heating, refrigerating, and air-conditioning engineers handbook, as the ASHRAE standard varies from time to time, as well as a requirement that any such state-funded facility adhere to that standard;

(2) Specifications for a life-cycle cost analysis that shall determine the reasonably expected fuel costs over, for the economic life of the building that are required to maintain illumination, power, temperature, humidity, ventilation such state-funded facility, and all other energy consuming equipment in a facility and the reasonable reasonably expected costs of probable facility ownership, operation, and maintenance including labor, and materials, and building operation. The life-cycle cost analysis shall include, but not be limited Life-cycle cost may be expressed as an annual cost for each year of the facility's use. Further, the life-cycle cost analysis shall demonstrate for each design how the design contributes to energy efficiency and conservation with respect to, all of the following:

(1)(a) The coordination, orientation, and positioning of the facility on its physical site;

(2)(b) The amount and type of glass employed in the facility and the directions of exposure;

(3)(c) Thermal characteristics of materials, including the effect of insulation incorporated into facility design, including insulation;

(4)(d) Architectural features which that affect energy consumption, including the effect of solar utilization of the absorption and reflection properties of external surfaces;

(5)(e) The variable occupancy and operating conditions of the facility and subportions portions of the facility, including illumination levels;

(6) An (f) Any other pertinent, physical characteristics of the design.

A life-cycle cost analysis additionally shall include an energy consumption analysis that conforms to division (D)(3) of this section.

(3) Specifications for an energy consumption analysis of the facility's heating, refrigeration, ventilation, cooling, lighting, hot water, and other major equipment of the facility's heating, ventilating, and cooling system, lighting system, hot water system, and all other energy consuming systems, components, and equipment as appropriate. This analysis shall include both of the following:

(a) The comparison of two or more system alternatives, one of which may be a system using solar energy;

(b) The projection of the annual energy consumption of those major energy consuming systems, components, and equipment and systems, for a range of operation of the facility over the economic life of the facility;

(c) An evaluation of the energy consumption of component equipment in each system, and considering the their operation of such components at other than full or rated outputs.

The rules A life-cycle cost analysis and energy consumption analysis shall be based on the best currently available methods of analyses analysis, including those of the national bureau of standards, the department of housing and urban development, or other federal agencies and, professional societies, and materials directions developed by the department.

The office shall promulgate rules (4) Specifications for energy performance indices, as defined in division (B)(4) of this section, to be used to audit and evaluate competing design proposals submitted to the state.

(5) An application process by which a project manager, as to a specified state-funded facility excepting a facility of a state institution of higher education, may apply for a waiver of compliance with any provision of the rules required by divisions (D)(1) to (4) of this section, provided that the application shall be accompanied by a written explanation and documentation of how the facility will meet energy efficiency and conservation standards that exceed applicable standards prescribed in the rules. The office shall notify the applicant within thirty days after the date of the application's filing if more supporting information is desired. Unless, within thirty days after the date of the application's filing or thirty days after the date that a later information request is sent, the office notifies the applicant that the waiver is denied, the waiver shall be deemed approved.

(6) A requirement that, not later than two years after the effective date of this amendment, each state-funded facility excepting a facility of a state institution of higher education is managed by at least one building operator certified under the building operator certification program or any equivalent program or standards as shall be prescribed in the rules and considered reasonably equivalent. Nothing in division (D)(6) of this section precludes such a building operator from managing more than one state-funded facility.

(E) The office shall conduct studies of the state's purchase and use of supplies, automobiles, and equipment having a significant impact on energy use by government, in order to determine the potential for energy conservation. The department of development shall advise the office on the state of the art of energy efficiency, both generally and with reference to the cost of various levels of energy efficiency. The office of energy services shall promulgate adopt rules to ensure that energy efficiency and conservation will be considered in state purchasing the purchase of products and equipment, excepting motor vehicles, by any state agency, department, division, bureau, office, unit, board, commission, authority, quasi-governmental entity, or institution. Minimum energy efficiency standards on for purchased products and equipment shall be required, based on federal testing and labeling where available or on standards developed by the department office. Life-cycle cost analysis The rules shall apply to the competitive selection of energy consuming systems, components, and equipment and components shall be made part of the competitive selection procedures of under Chapter 125. of the Revised Code where possible.

Not later than January 1, 1979, the The office also shall take the initiative in implementing ensure energy efficient and energy conserving purchasing measures through practices by doing all of the following means:

(1) Identifying Cooperatively with the office of energy efficiency, identifying available energy efficiency and conservation opportunities available;

(2) Providing for interchange of information among state purchasing agencies;

(3) Identifying laws, policies, rules, and procedures which that need modification;

(4) Monitoring experience with energy conservation buying practices and the cost-effectiveness of, and also conducting studies on the energy efficiency and conservation potential of, this state's purchase and use of motor vehicles and of major energy-consuming systems, components, equipment, and products having a significant impact on energy consumption by government;

(5) Providing Cooperatively with the office of energy efficiency, providing technical assistance and training programs and workshops for to state employees involved in the purchasing process.

The department of development shall make recommendations to the office regarding planning and implementation of purchasing policies and procedures supportive of energy efficiency and conservation.

(F)(1) The office of energy services shall require all departments, state agencies, state institutions, universities, colleges departments, divisions, bureaus, offices, units, commissions, boards, authorities, commissions, boards, and quasi-governmental entities, institutions, and state institutions of higher education to implement procedures ensuring that all their passenger automobiles acquired in each fiscal year, except for those passenger automobiles acquired for use in law enforcement or emergency rescue work, achieve a fleet average fuel economy of not less than twenty miles per gallon in fiscal year 1979, not less than twenty-one miles per gallon in fiscal year 1980, and, in each fiscal year thereafter, not less than the fleet average fuel economy prescribed, by rule, by the office for that fiscal year in accordance with this division.

Prior as shall be prescribed by rule adopted by the office prior to the beginning of fiscal year 1981 and each the fiscal year thereafter, the office shall adopt rules prescribing the fleet average fuel economy all passenger automobiles acquired by all departments, agencies, state institutions, universities, colleges, authorities, commissions, boards, and quasi-governmental entities of state government during the fiscal year covered by the rules must achieve, except for those passenger automobiles acquired for use in law enforcement or emergency rescue work. These rules shall not be less stringent than the average fuel economy standards established pursuant to federal law for passenger automobiles manufactured during the model year that begins during the fiscal year.

(1)(2) Each department, state agency, state institution, university, college department, division, bureau, office, unit, commission, board, authority, commission, board, and quasi-governmental entity of state government, institution, and state institution of higher education shall determine its fleet average fuel economy by dividing:

(a) The total number of passenger vehicles acquired during the fiscal year, except for those passenger vehicles acquired for use in law enforcement or emergency rescue work, by

(b) A sum of terms, each of which is a fraction created by dividing:

(i) The number of passenger vehicles of a given make, model, and year, except for passenger vehicles acquired for use in law enforcement or emergency rescue work, acquired during the fiscal year, by

(ii) The fuel economy measured by the administrator of the United States environmental protection agency, for the given make, model, and year of vehicle, that constitutes an average fuel economy for combined city and highway driving.

(2) As used in division (F)(1)(2) of this section, "acquired" means leased for a period of sixty continuous days or more, or purchased.

(G) Each state agency, department, division, bureau, office, unit, board, commission, authority, quasi-governmental entity, institution, state institution of higher education, and public school shall comply with any applicable provision of this section or of a rule adopted pursuant to division (D) or (F) of this section.

Sec. 125.09.  (A) Pursuant to section 125.07 of the Revised Code, the department of administrative services may prescribe such conditions under which competitive sealed bids will be received and terms of the proposed purchase as it considers necessary; provided, that all such conditions and terms shall be reasonable and shall not unreasonably restrict competition, and bidders may bid upon all or any item of the supplies or services listed in such the notice. Those bidders claiming the preference for United States and Ohio products outlined in this chapter shall designate in their bids either that the product to be supplied is an Ohio product or that, under the rules established by the director of administrative services, they qualify as having a significant Ohio economic presence.

(B) The department may shall require that each bidder provide sufficient information about the energy efficiency or energy usage of the bidder's product or service, including whether the product or service meets the energy efficiency guidelines set by the United States environmental protection agency and department of energy.

(C) The director of administrative services shall, by rule adopted pursuant to Chapter 119. of the Revised Code, shall prescribe criteria and procedures for use by all state agencies in giving preference to United States and Ohio products as required by division (B) of section 125.11 of the Revised Code. The rules shall extend to all of the following:

(1) Criteria for determining that a product is produced or mined in the United States rather than in another country or territory;

(2) Criteria for determining that a product is produced or mined in Ohio;

(3) Information to be submitted by bidders as to the nature of a product and the location where it is produced or mined;

(4) Criteria and procedures to be used by the director to qualify bidders located in states bordering Ohio this state who might otherwise be excluded from being awarded a contract by operation of this section and section 125.11 of the Revised Code. The criteria and procedures shall recognize the level and regularity of interstate commerce between Ohio this state and the border states and provide that the non-Ohio businesses may qualify for award of a contract as long as they are located in a state that imposes no greater restrictions than are contained in this section and section 125.11 of the Revised Code upon persons located in Ohio this state who are selling products or services to agencies of that state. The criteria and procedures shall also shall provide that a non-Ohio business shall not bid on a contract for state printing in this state if the business is located in a state that excludes Ohio businesses from bidding on state printing contracts in that state.

(5) Criteria and procedures to be used to qualify bidders a bidder whose manufactured products, except for mined products, are produced in other states or in North America, but the bidders have bidder has a significant Ohio economic presence in terms of the number of employees or capital investment a the bidder has in this state. Bidders with a significant Ohio economic presence shall qualify for award of a contract on the same basis as if their products were produced in this state.

(6) Criteria and procedures for the director to grant waivers of the requirements of division (B) of section 125.11 of the Revised Code on a contract-by-contract basis where compliance with those requirements would result in the state agency paying an excessive price for the product or acquiring a disproportionately inferior product;

(7) Such other Other requirements or procedures reasonably necessary to implement the system of preferences established pursuant to division (B) of section 125.11 of the Revised Code.

In adopting the rules required under this division, the director shall, to the maximum extent possible, shall conform to the requirements of the federal "Buy America Act," 47 Stat. 1520, (1933), 41 U.S.C.A. 10a-10d, as amended, and to the regulations adopted thereunder under that act.

Sec. 125.11.  (A) Subject to division divisions (A)(1) and (2) and (B) of this section, contracts awarded pursuant to a reverse auction under section 125.072 of the Revised Code or pursuant to competitive sealed bidding, including contracts awarded under section 125.081 of the Revised Code, shall be awarded to the lowest responsive and responsible bidder on each item in accordance with section 9.312 of the Revised Code. When

(1) After applying division (B) of this section, when applicable, the department of administrative services shall give preference to lowest responsive and responsible bidders whose product or service meets the energy efficiency guidelines set by the United States environmental protection agency and department of energy. And, when the contract is for meat products as defined in section 918.01 of the Revised Code or poultry products as defined in section 918.21 of the Revised Code, only those bids received from vendors offering products from establishments on the current list of meat and poultry vendors established and maintained by the director of administrative services under section 125.17 of the Revised Code shall be eligible for acceptance. The

(2) The department of administrative services may accept or reject any or all bids in whole or by items, except that when the contract is for services or products available from a qualified nonprofit agency pursuant to sections 125.60 to 125.6012 or 4115.31 to 4115.35 of the Revised Code, the contract shall be awarded to that agency.

(B) Prior to awarding a contract for products under division (A) of this section, the department of administrative services or the state agency responsible for evaluating a contract for the purchase of products shall evaluate the bids received according to the criteria and procedures established pursuant to divisions (C)(1) and (2) of section 125.09 of the Revised Code for determining if a product is produced or mined in the United States and if a product is produced or mined in this state. The department or other state agency shall first remove bids that offer products that have not been or that will not be produced or mined in the United States. From among the remaining bids and subject to divisions (A)(1) and (2) of this section, the department or other state agency shall select the lowest responsive and responsible bid, in accordance with section 9.312 of the Revised Code, from among the bids that offer products that have been produced or mined in this state where sufficient competition can be generated within this state to ensure that compliance with these requirements will not result in an excessive price for the product or acquiring a disproportionately inferior product. If there are two or more qualified bids that offer products that have been produced or mined in this state, it shall be deemed that there is sufficient competition to prevent an excessive price for the product or the acquiring of a disproportionately inferior product.

(C) Division (B) of this section applies to contracts for which competitive bidding is waived by the controlling board.

(D) Division (B) of this section does not apply to the purchase by the division of liquor control of spirituous liquor.

(E) The director of administrative services shall publish in the form of a model act for use by counties, townships, municipal corporations, or any other political subdivision described in division (B) of section 125.04 of the Revised Code, a system of preferences for products mined and produced in this state and in the United States and for Ohio-based contractors. The model act shall reflect substantial equivalence to the system of preferences in purchasing and public improvement contracting procedures under which the state operates pursuant to this chapter and section 153.012 of the Revised Code. To the maximum extent possible, consistent with the Ohio system of preferences in purchasing and public improvement contracting procedures, the model act shall incorporate all of the requirements of the federal "Buy America Act," 47 Stat. 1520 (1933), 41 U.S.C. 10a to 10d, as amended, and the rules adopted under that act.

Before and during the development and promulgation of the model act, the director shall consult with appropriate statewide organizations representing counties, townships, and municipal corporations so as to identify the special requirements and concerns these political subdivisions have in their purchasing and public improvement contracting procedures. The director shall promulgate adopt the model act by rule adopted pursuant to Chapter 119. of the Revised Code and shall revise the act as necessary to reflect changes in this chapter or section 153.012 of the Revised Code.

The director shall make available copies of the model act, supporting information, and technical assistance to any township, county, or municipal corporation wishing to incorporate the provisions of the act into its purchasing or public improvement contracting procedure procedures.

Sec. 3345.69.  (A) As used in this section:

(1) "State institution of higher education" has the same meaning as in section 3345.011 of the Revised Code.

(2) "Board of trustees of a state institution of higher education" has the same meaning as in section 3345.61 of the Revised Code.

(B) The chairperson of the interuniversity council of Ohio shall assist in coordinating the organization and operation of a committee to carry out this section. The committee shall be comprised of the presidents of the state institutions of higher education or their designees. The committee, in consultation with the office of energy services of the department of administrative services, shall develop guidelines for the board of trustees of each state institution of higher education to use in ensuring energy efficiency and conservation in on- and off-campus buildings. Initial guidelines shall be adopted not later than March 31, 2006. At a minimum, guidelines under this section shall do all of the following:

(1) Include a goal to reduce on- and off-campus building energy expenditures by at least twenty per cent by 2014, using calendar year 2004 as the benchmark year, while recognizing the diverse nature and different energy demands and uses of such buildings and measures already taken to increase building energy efficiency and conservation;

(2) Prescribe minimum energy efficiency and conservation standards for any new, on- or off-campus capital improvement project with a construction cost of one hundred thousand dollars or more, which standards shall be based on general building type and cost-effectiveness;

(3) Prescribe minimum energy efficiency and conservation standards for the leasing of an off-campus space of at least twenty-thousand square feet;

(4) Incorporate best practices into energy efficiency and conservation standards and plans;

(5) Provide that each board develop its own fifteen-year plan for phasing-in energy efficiency and conservation projects;

(6) Provide that project impact assessments include the fiscal effects of energy efficiency and conservation recommendations and plans;

(7) Establish mechanisms for each board to report periodically to the committee on its progress relative to the guidelines.

(C) The board of trustees of a state institution of higher education shall adopt rules under section 111.15 of the Revised Code to carry out the guidelines established pursuant to division (B) of this section, including in the execution of the board's authority under sections 3345.62 to 3345.66 of the Revised Code.

Section 2.  That existing sections 123.011, 125.09, and 125.11 of the Revised Code are hereby repealed.

Section 3. Within 60 days after the effective date of this act, the Director of Administrative Services shall review the current operation of the Office of Energy Services and ensure that staffing levels and equipment and supplies are sufficient for the office to fully perform its duties under the act.