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Senate education counsel warns adding 'addition' to energy-performance law could broaden eligible projects
Summary
Office counsel told the Senate Education Committee that inserting the word "addition" into the definition of energy performance contracting (H91) may expand what kinds of projects qualify, changing incentives for districts. Counsel urged caution; the committee agreed to add the language but recorded the warning.
Chair opened the meeting and flagged a narrow change in H91, a miscellaneous education bill, to the definition of energy performance contracting.
John Gr of the Office Counsel walked the committee through the statute’s existing definition: a performance contract ties payment to achieved energy or operational cost savings and requires a financial-grade audit, an RFP process and a measurement framework. "It's a contract for implementing a cost‑saving measure related to energy or operational costs and the payment of that contract is contingent on achieving those savings," Gr said, summarizing the statute’s safeguards.
Gr told senators the proposed insertion of the word "addition" could meaningfully change which projects are eligible. Under current law, measures are limited to "facility improvement, repair or alteration" or to construction/installation of equipment, fixtures or furnishings designed to cut energy use. "If you add the word addition then sort of obvious additions which would have needed to go the route of the standard application process to have even a chance for state aid could now have this option," Gr warned, adding, "it's not merely clarifying. It does expand what constitutes a cost savings measure, but that may be fine."
District representatives and staff pressed the practical questions: would small wings or storage additions that enable energy systems qualify, and would a new addition need to improve the entire building’s energy efficiency? A district speaker said additions would still need to be "designed to reduce energy consumption" across the building and noted the typical target payback for projects is about 20 years, achieved by stacking measures.
Committee members asked about safeguards; Gr pointed to the existing discretionary approval step by the secretary and the requirement for financial‑grade audit and argued those elements limit the risk of circumvention. After discussion, committee members signaled agreement to include the word "addition" in H91 while accepting counsel's cautionary explanation. The committee recorded the counsel's warning as part of the record.
What happens next: the committee will incorporate the language into the draft of H91 and proceed with the bill's other provisions; AOE and counsel will remain available for follow‑up questions on scope and rulemaking.
