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Staff member says adding "addition" would broaden school energy performance contracting eligibility
Summary
A staff presenter told an education meeting that inserting the word "addition" into the energy performance contracting definition would make certain expansions (for example, boiler-room additions or replacement of modular classrooms) explicitly eligible for state aid, while officials noted audits, required savings, and discretionary approval could limit misuse.
A staff member explained at an education meeting that a proposed one-word change to the state's energy performance contracting statute would broaden which school projects qualify for state aid.
The staff member said the amendment would insert the word "addition" into the definition of cost-saving measures in the energy performance contracting section, which is separate from the standard school construction aid statute and has its own application and prioritization process. He said the change was requested by EEI and would make it clearer that certain expansions — such as enlarging a boiler room or replacing modular classrooms with a new addition — fall within the energy-contracting program.
Why it matters: The energy performance contracting program funds projects whose costs are paid, in whole or in part, by the energy and operational cost savings they produce. Under existing law, the program covers narrowly defined facility improvements, repairs, alterations or installed equipment designed to reduce energy use; payment under performance contracts is contingent on achieving the predicted savings, which are verified by an audit.
"Is to add the word addition to cost saving measures," the staff member said when asked to point to the specific language change. He later cautioned that "you're not gonna be able to do an addition that doesn't achieve energy costs. Right? It has to be something that is designed to reduce energy consumption and operating costs or increase the operating efficiency of facilities for their appointed functions." (Staff member John.)
The staff member acknowledged a trade-off: whereas the change would relieve applicants from having to shape arguments that an expansion is an "improvement, repair or alteration," it could also be used improperly. "If I was responding to this, I wanted to get something built in easier way. Could I use the energy performance contracting section to get state aid where I previously couldn't?" he asked, noting he did not know all the ways actors might use the expanded language.
Those concerns, he said, are tempered by several safeguards in the statute and practice: projects still must demonstrate energy- or operational-cost savings, must be supported by a financial audit that predicts savings, must meet state board rule definitions, and ultimately approval of aid is discretionary for the secretary of education.
Meeting participants discussed example projects that prompted the amendment, including replacing modular classrooms and targeted expansions to accommodate equipment such as boilers. The staff member characterized the change as more than a clarification: "It's a change," he said, though he added it does offer clarifying benefits for projects that proponents say already fit under current law.
Procedural update: the staff member said a new draft of the bill will be posted when drafters finish work. The chair noted the bill "continues to sit in... education" and that other sections (including a statewide health-care negotiation provision) remained under discussion elsewhere. The item closed with plans to post a revised draft and continue deliberations.
The meeting did not record a formal vote on the amendment; participants said they were awaiting a new draft and further discussion.
