Appendix A1 States With LEED® and/or Sustainable Design Laws (2014) [NOTE: click on State name to link to the applicable law] Red Letter Edition for each use of “LEED” 1. Alaska. ALASKA STAT. § 44.42.067. The Department of Transportation and Public Facilities shall work to get at least 25% of all public facilities to an ASHRAE/IESNA standard 90.1. All newly constructed public facilities must meet the most recently published edition of the ASHRAE/IESNA standard 90.1. Web-link: Ariz. Rev. Stat. § 34-451 et seq. 2. Arizona. ARIZ. REV. STAT. §§ 34-451 et seq. Encourages energy conservation standards for new capital projects and directs the governor’s energy office to develop and implement a program to enter into performance contracts solely for the purpose of achieving energy savings. Web-link: Ariz. Rev. Stat. § 34-451 et seq. ARIZ. REV. STAT. § 41-111. Establishes a solar energy advisory council to assist, advise and encourage on matters relating to the development and use of solar energy and other renewable resources. Web-link: Ariz. Rev. Stat. § 41-111 ARIZ. REV. STAT. § 41,1510.01. Establishes procedures for identifying commercial solar energy projects that qualify for the purposes of the commercial solar energy income tax credits under sections 43-1085 and 43-1164. Web-link: Ariz. Rev. Stat. § 41-1510.01 1 To the best of the author’s knowledge, Appendix A is complete as of May 2014. The scope of Appendix A covers State statutes related to sustainable design and LEED requirements. Appendix A does not cover all state laws and regulations pertaining to energy savings. While this Appendix A focuses only on State-level statutes, Federal laws may also apply. Readers should note that the information in this Appendix A was compiled from individual State sources that are created by each State and which are maintained and updated with varying frequencies. Readers should consult the source information provided for each Sate directly in order to check for updates to that State’s laws and regulations or conduct further research. 12096859.2 ARIZ. REV. STAT. § 43-1083. Provides a credit against taxes for the installation of a solar energy device on the taxpayer's residence. Web-link: Ariz. Rev. Stat. § 43-1083 ARIZ. REV. STAT. § 43-1083.01. Provides a credit against taxes for investing in renewable energy manufacturing. Web-link: Ariz. Rev. Stat. § 43-1083.01 ARIZ. REV. STAT. § 43-1083.02. Definitions for renewable energy production tax credit. Web-link: Ariz. Rev. Stat. § 43-1083.02 ARIZ. REV. STAT. § 43-1085. Provides a credit against taxes for the installation of a solar energy device in a commercial or industrial application. Web-link: Ariz. Rev. Stat. § 43-1085 ARIZ. REV. STAT. § 43-1085.01. Provides a credit against taxes solar liquid fuel research and development, production and delivery. Web-link: Ariz. Rev. Stat. § 43-1085.01 ARIZ. REV. STAT. § 43-1090. Provides a credit against taxes for costs incurred in the installation of solar hot water heating stub outs and electric vehicle recharge outlets in the construction of residences. Web-link: Ariz. Rev. Stat. § 43-1090 ARIZ. REV. STAT. § 43-1164. Provides a credit against taxes for the installation of a solar energy device in a commercial or industrial application. Web-link: Ariz. Rev. Stat. § 43-1164 ARIZ. REV. STAT. § 43-1176. Provides a credit against taxes for costs incurred in the installation of solar hot water heating stub outs and electric vehicle recharge outlets in the construction of residences. Web-link: Ariz. Rev. Stat. § 43-1176 Arkansas. ARK. CODE ANN. § 22-3-1801, et. seq. Entitled, “Arkansas Energy and Natural Resource Conservation Act,” under this Statute State agencies conducting or funding a public building project are encouraged to utilize LEED® or Green Globes rating 3. 12096859.2 systems. The Statute also establishes a Legislative Task Force on Sustainable Building Design and Practices. Web-link: ARK. CODE ANN. § 22-3-1801, et. seq. ARK. CODE ANN. § 22-3-2001, et. seq. Entitled, “Sustainable Energy- Efficient Buildings Program”. This statute is to promote energy conservation in buildings owned by public agencies and buildings owned by institutions of higher education. Web-link: ARK. CODE ANN. § 22-3-2001, et. seq. California. CAL. GOV'T CODE §§ 15814.30, et. seq. Entitled “Energy Efficiency in Public Buildings”, the statutes apply to buildings that exceed 10,000 dollars per year in energy costs. Existing buildings will be renovated and new buildings will be models of energy efficiency. 4. Web-link: CAL. GOV’T CODE §§ 15814.30, et. seq. CAL. EDUC. CODE §§ 81620-24. Entitled the, "Statewide Energy Management Program," the California Board of Governors shall support the goal of moving California Community Colleges toward energy independence. Web-link: CAL. EDUC. CODE §§ 81620-24. Executive Order S-20-04. On December 14, 2004, Governor Schwarzenegger singed Executive Order S-20-04 requiring the design, construction and operation of all new and renovated state-owned facilities to be LEED® Silver. Web-link: Executive Order S-20-04. 5. Colorado. COLO. REV. STAT. §§ 24-30-1301, 24-30-1304, 24-30-1305. Directs state agencies to insure life-cycle cost analyses and energy conservation practices are considered in the design and construction of state facilities. Web-link: COLO. REV. STAT. §§ 24-30-1301, 24-30-1304, 24-30-1305 COLO. REV. STAT. §§ 24-38.5-201, et. seq. Entitled “Green Building Incentive Pilot Program”. A program to provide incentive for new residential construction that meets energy efficiency standards. Web-link: COLO. REV. STAT. §§ 24-38.5-201, et seq. COLO. REV. STAT. § 30-28-211. Legislative intent to have energy efficient buildings codes. 12096859.2 Web-link: COLO. REV. STAT. § 30-28-211. Executive Order D005 05. Governor Owens signed Executive Order # D005 05 adopting LEED® for Existing Buildings and incorporating LEED® for New Construction practices for all state buildings. The order also creates a Colorado Greening Government Coordinating Council to develop and implement conservation policies. Web-link: Executive Order D 005 05 Connecticut. CONN. GEN. STAT. § 16a-38k. Under this Statute any new construction of a State facility over five million dollars shall exceed the LEED® silver building rating system for new commercial construction and major renovation projects or equivalent standard. 6. Web-link: CONN. GEN. STAT. § 16a-38k. CONN. GEN. STAT. § 12-217mm. This statute gives a tax credit for a real estate development project that is designed to meet LEED® gold building rating system. Web-link: CONN. GEN. STAT. § 12-217mm. 7. Delaware. DEL. CODE ANN. tit. 29 § 8057. Provides for the State Energy Office to administer moneys in the Green Energy Fund through a program of environmental incentive grants and loans for the development, promotion and support of energy efficiency programs and renewable or alternative energy technology in the State. Web-link: DEL. CODE ANN. tit. 29 § 8057 Executive Order 10-18. On February 17th, 2010, Governor Markell signed Executive Order 18 adopting LEED® for Existing Buildings and incorporating LEED® for New Construction practices for all state buildings. The order requires all state agencies to work with architects and engineers on meeting or exceeding LEED® Silver standards. Web-link: Executive Order 10-18 District of Columbia. D.C. CODE ANN. §§ 6-1412. The Mayor shall revise the construction codes to incorporate as may significant green building practices as practicable for the District of Columbia area. The mayor will provide a written report on the progress. 8. Web-link: D.C. CODE ANN. § 6-1412. 12096859.2 D.C. CODE ANN. §§ 2-1226.32, 2-1226.34, 2-1226.35 Environmental building regulations for any development around the Anacostia Waterfront. All projects must meet a LEED® Gold Standard. Web-link: D.C. CODE ANN. § 2-1226.32. Web-link: D.C. CODE ANN. § 2-1226.34. Web-link: D.C. CODE ANN. § 2-1226.35. D.C. CODE ANN. §§ 6-1451.01 et. seq. All city-owned or funded projects, including public housing, over 10,000 square feet must meet LEED® Gold Level and/or must be designed to achieve certain energy efficiency targets. Beginning in 2009 new private commercial projects of 50,000 square feet must submit a "green building checklist" as part of a building permit application. Finally, beginning in 2012 applications for permits of new commercial construction or substantial improvements over 50,000 square feet must exceed or fulfill certain LEED® standards and post a performance bond. Web-link: D.C. CODE ANN. §§ 6-1451.01 et. seq. D.C. CODE ANN. § 1-1601.05. The National's new baseball stadium shall be designed and constructed in a manner to promote the minimization of waste production taking into account applicable criteria of LEED-NC. Web-link: D.C. CODE ANN. § 1-1601.05 9. Florida. Executive Order 07-126. Governor Crist issued Executive Order #07126 adopting LEED-NC for any new building constructed for or by the State. New construction projects must strive for Platinum certification, the highest level possible. The Executive Order also required the Department of Management Services to implement LEED-EB across all buildings currently owned and operated by the department on behalf of client agencies. In addition, agencies and departments were instructed to only enter into new leasing agreements for office space that meets Energy Star building standards, unless no other viable alternative exists. Web-link: Executive Order 07-126 Executive Order 07-127. Governor Crist issued Executive Order 07-127 directing the adoption of maximum emission levels of greenhouse gases for electric utilities. The standard will require a reduction of emissions to 2000 levels by 2017, to 1990 levels by 2025, and by 80 percent of 1990 levels by 2050. Florida will also adopt the California motor vehicle emission standards, pending approval of the U.S. Environmental Protection Agency waiver. The standard is a 22-percent reduction in vehicle emissions by 2012 and a 30-percent reduction by 2016. Additionally, Florida will require energy-efficient consumer appliances to increase efficiency by 15 percent of current standards. Finally, Governor Crist requested that the Public Service 12096859.2 Commission adopt a 20 percent Renewable Portfolio Standard by 2020, with a strong focus on solar and wind energy. Web-link: Executive Order 07-127 Executive Order 07-128. Governor Crist signed Executive Order 07-128 which will allow for the appointment of diverse stakeholders to a Governor’s Action Team on Energy and Climate Change. Team members will create a Florida Climate Change Action Plan that will include strategies beyond today’s Executive Orders to reduce emissions, including recommendations for proposed legislation for consideration during the 2008 Legislative Session and beyond. Web-link: Executive Order 07-128 10. Georgia. GA. CODE ANN. § 50-8-18 All major state funded projects must be performed by a professional engineer, design professional, or commissioning agent using methodology approved by the Department of Energy, current ASHRAE standards, or other similar methodology. To achieve sustainable building standards, construction projects may utilize nationally recognized high performance energy rating system however it cannot be to the detriment of materials manufactured in Georgia. Web-link: GA. CODE ANN. § 50-8-18 11. Hawaii. HAW. REV. STAT. § 46-19.6. Under this Statute any county agency that issues a building related permit shall establish a priority processing procedure for permit applications of private entities for a construction project that incorporate energy and environmental design building standards (LEED® Silver) into its project design. Web-link: HAW. REV. STAT. § 46-19.6 HAW. REV. STAT. §§ 196-1 et seq. Directs state agencies to: design and construct buildings meeting LEED® Silver standard; incorporate energy-efficiency measures to prevent heat gain in residential facilities; install solar water heating systems; and other energy efficiency and environmental standards for state facilities, motor vehicles and transportation fuel. Web-link: HAW. REV. STAT. § 196-1 et seq. HAW. REV. STAT. §§ 196-61 et seq. These statutes titled “Green Infrastructure Loans” establish a loan program for private entities that provide green infrastructure equipment to utility customers. Web-link: HAW. REV. STAT. § 196-61 et seq. 12096859.2 12. Idaho. IDAHO CODE ANN. § 33-356. A new school buildings must use an integrated design practice, which entails making sure the project team and owner stick to the planned energy goals. Web-link: IDAHO CODE ANN. § 33-356. Illinois. ILL. COMP. STAT. §§ 20 ILCS 3105/10.04. Under 20 ILCS 3105/10/04 a series of training workshops shall be created to increase awareness and understanding of green building techniques and green building rating systems. Additionally, no less than 3 construction projects shall be identified to serve as case studies for achieving certification using nationally recognized and accepted green building guidelines with findings reported to the Generally Assembly no later than December 31, 2008. 13. Web-link: ILL. COMP. STAT. §§ 20 ILCS 3105/10.04. ILL. COMP. STAT. § 20 ILCS 3130/15. Under 20 ILCS 3130/15 All new state funded buildings must seek LEED®, Green Globes, or equivalent certification. New buildings under 10,000 square feet must meet the highest standard. New buildings greater than 10,000 square feet must establish a silver LEED® rating. Web-link: ILL. COMP. STAT. §§ 20 ILCS 3130/15 ILL. COMP. STAT. § 20 ILCS 605/605-981. Under 20 ILCS 605 green cities grant programs are established for municipalities and private developments which meet certain LEED® certification standards. Web-link: ILL. COMP. STAT. §§ 20 ILCS 605/605-981 ILL. COMP. STAT. §§ 30 ILCS 737/1 et seq. Entitled the "Green Neighborhood Grant Act" this provides for the establishment of grants to private developments who achieve certification under LEED-ND standard. Web-link: ILL. COMP. STAT. §§ 30 ILCS 737/1 et seq. ILL. COMP. STAT. § 105 ILCS 230/5-40. With respect to school construction projects for which a school district applies for a grant after July 1, 2007, the project must receive LEED® certification or an equivalent standard. Web-link: ILL. COMP. STAT. §§ 105 ILCS 230/5-40 Executive Order 09-07. Governor Quinn signed an executive order on Apr. 1, 2009, ordering the Department of Central Management Services to instate a program to increase energy efficiency and track the progress for all state owned and leased buildings. 12096859.2 Web-link: Executive Order 09-07 14. Indiana. Executive Order 08-14. New state buildings must meet LEED® Silver certification standard, a two-globe rating under the Green Globe rating system, Energy Star certification, or another nationally recognized rating system. Web-link: Executive Order 08-14 15. Kansas. KAN. STAT. ANN. § 75-37,129a. The Secretary of Administration shall adopt energy efficiency performance standards required of all newly built and newly renovated state buildings. Web-link: KAN. STAT. ANN. § 75-37,129a KAN. STAT. ANN. § 66-1227. The statute adopts the International Energy Conservation code for state buildings but the state corporation commission has no authority to adopt or enforce energy efficiency standards for residential, commercial or industrial structures. Web-link: KAN. STAT. ANN. § 66-1227. 16. Kentucky. KY. REV. STAT. ANN. §§ 56.770 - .784 et seq. Instructs the Finance and Administration Cabinet to administer an energy efficiency program known as the Energy Efficiency Program for State Government Buildings. The Program provides for the implementation of low cost/no cost energy conservation measures, energy efficiency measures, building improvements and monitoring of results for state-owned buildings. Web-link: KY. REV. STAT. ANN. §§ 56.770 - .784 et seq. KY. REV. STAT. ANN. §§ 141.435 et. seq. The following statutes are tax credits for energy efficiency products and homes. There is an $800 tax credit for building a new ENERGY STAR home, as well as a tax credit for installing energy efficient products in residential and commercial property. Web-link: KY. REV. STAT. ANN. §§ 141.435 et. seq. Louisiana. LA. REV. STAT. ANN. § 40:1730.49. Under this Statute state funded new construction building projects and renovation projects meeting specific criteria as defined by Statute must be designed, constructed and certified to exceed the requirements of the Louisiana state energy code by at least 30 percent. 17. Web-link: LA. REV. STAT. ANN. § 40:1730.49 12096859.2 18. Maine. ME. RE. STAT. ANN. tit 5, § 1764. Under the "Energy Conservation in Buildings Act" the Bureau of General Services shall adopt rules and guidelines for conducting an energy-related life-cycle costs analysis of alternative architectural or engineering designs and shall evaluate the efficiency of energy utilization for designs in the construction and lease of public improvements and public school facilities. Web-link: ME. RE. STAT. ANN. tit 5, § 1764 ME. RE. STAT. ANN. tit 20-A, § 1764-A. The state board shall require, as a condition for state funding for construction, that all planning and design for new or substantially renovated state owned or state leased buildings take into consideration life-cycle cost analysis and include an energy-use target that exceeds at least 20% energy efficiency. Web-link: ME. RE. STAT. ANN. tit 5. § 1764-A ME. RE. STAT. ANN. tit 20-A, § 15908-A. The state board shall require, as a condition for state funding for construction, that all planning and design for new or substantially renovated school buildings take into consideration life-cycle cost analysis and include an energy-use target that exceeds at least 20% energy efficiency. Web-link: ME. RE. STAT. ANN. tit 20-A, § 15908-A Executive Order 07-128. Governor LePage superseded 2003 Executive Order 07-128 which incorporated LEED® guidelines and now directed state buildings to use materials certified under the Sustainable Forestry Initiative, Forest Stewardship Council, American Tree Farm System and Programme for the Endorsement of Forest Certification systems. Web-link: Executive Order 27 FY 11/12 19. Maryland. MD. CODE ANN. STATE FIN. & PROC. § 4-809. Establishes the Maryland Green Building Council and the Task Force on Green Building to evaluate and make recommendations regarding methods of facilitating public demand for environmentally sensitive communities and improving low-impact sustainable developments. Web-link: MD. CODE ANN. State Fin. & Proc. § 4-809 MD. CODE ANN. TAX-GEN. § 10-722. Allows for individuals and corporations to claim state tax credits for green buildings, green building components and high-performance buildings as defined by Statute. Web-link: MD. CODE ANN. TAX-GEN. § 10-722 12096859.2 MD. PUB. SAFETY § 12-509. Encourages the construction of new residential structures that meet or exceed silver LEED® standard. Web-link: MD. PUB. SAFETY § 12-509. MD. CODE ANN. TAX-PROP. § 9-242. Awards a tax credit against the county or municipal corporation property tax imposed on a high-performance building. Web-link: MD. CODE ANN. TAX-PROP. § 9-242 MD. PUB. UTIL. COS. § 21-104. Any capital project should use green building technologies in order to build a high performance building. Any building over 7,500 square feet should meet an LEED® silver standard. Web-link: MD. PUB. UTIL. COS. § 21-104 20. Massachusetts. MASS. GEN. LAWS ch. 7C, §§ 30, 31. Allows for an evaluation of the energy consumption of each building through energy audits. The director of facilities management shall recommend standards and guidelines governing energy conservation. The division of capital asset management and maintenance shall evaluate the potential for increasing the energy efficiency in each building owned or leased by the state. Web-link: MASS. GEN. LAWS ch. 7C, §§ 30-31. Executive Order 484. In 2007 Governor Patrick issued Executive Order 484 entitled “Leading by Example - Clean Energy and Efficient Buildings.” The Order instructed all agencies involved in the construction and major renovation projects of over 20,000 square feet to meet LEED® certification as well as energy performance 20% better than the Massachusetts Energy Code. Web-link: Executive Order 484 Executive Order 515. In 2009 Governor Patrick issued Executive Order 484 entitled “Establishing an Environmental Purchasing Policy.” The Order instructed that the Environmentally Preferable Products program shall, when appropriate, utilize independent, third party standards and certifications, including but not limited to Green Seal, EcoLogo, ENERGY STAR, BioPreferredSM, Leadership in Energy and Environmental Design (LEED), GREENGUARD, Forest Stewardship Council (FSC) and others, to verify the environmental claims of products or services. Web-link: Executive Order 515 12096859.2 21. Michigan. MICH. COMP. LAWS § 207.821 et. seq. Establishes the Michigan next energy authority to promote alternative energy technology and economic growth in the state. Web-link: MICH. COMP. LAWS § 207.821 et seq. MICH. COMP. LAWS § 460.1133. Directs the department of management and budget to establish a program for energy analyses of each state building. The analysis must be conducted every 5 years. Web-link: MICH. COMP. LAWS § 460.1133. Executive Directive 2007-22. On November 14, 2007 Governor Granholm signed Executive Directive 2007-22 requiring that life-cycle cost and energy efficiency be included in the consideration of the purchase of goods or services for the state and requiring that all statefunded new construction and major renovation projects over $1,000,000 be built in accordance with LEED® guidelines. Web-link: Executive Directive 2007-22 Minnesota. MINN. STAT. ANN. § 16B.32. Plans prepared for a new public building or for a renovation of 50 percent or more of an existing building or its energy systems must include designs which use active and passive solar energy systems, earth sheltered construction, and other alternative energy sources where feasible. 22. Web-link: MINN. STAT. ANN. §§ 16B.32 et seq. MINN. STAT. ANN. § 473.759. If the Minnesota ballpark authority obtains grants sufficient to cover the increased costs, the authority must ensure that the design of the new Minnesota Twins stadium receives LEED® certification and shall, to the extent possible, follow sustainable building guidelines. Web-link: MINN. STAT. ANN. § 473.759 MINN. STAT. ANN. § 469.1655. Establishes the criteria for a municipality or redevelopment agency issuing revenue bonds to a qualified green building. At least 75% of the square footage must be registered with a recognized green building rating. Web-link: MINN. STAT. ANN. § 469.1655 MINN. STAT. ANN. §§ 216C.414, 216C.416. Allows the commissioner of commerce to set a solar energy production incentive for “Made in Minnesota” modules. Outlines the criteria 12096859.2 for determining the incentive amount. Also requires the commissioner to operate a program that provides rebates for the installation of a “Made in Minnesota” solar thermal system. Web-link: MINN. STAT. ANN. §§ 216C.414, 216C.416 23. Mississippi. MISS. CODE ANN. § 31-11-35. Each qualifying state building must be designed and constructed to achieve sustainable building standards which may be based on a nationally recognized high performance environmental building rating system. Web-link: MISS. CODE ANN. § 31-11-35 24. Missouri. MO. ANN. STAT. § 8.800 et. seq. Missouri requires life-cycle cost analysis for all new construction of state buildings and substantial renovations of existing state buildings when major energy systems are involved. Substantial renovations involve projects that will affect at least 50% of the building's square footage or cost at least 50% of its market value. Web-link: MO. ANN. STAT §§ 8.800 et. seq. Executive Order 09-18. Governor Nixon in April 2009 issued an executive order requiring the reduction in energy consumption by 2% each year for the next 10 years. Web-link: Executive Order 09-18 25. Montana. MONT. CODE ANN. § 17-7-213. New buildings and major renovations must be built as high-performance buildings and exceed the International Energy Conservation Code by 20%. Web-link: MONT. CODE ANN. § 17-7-213 26. Nevada. NEV. REV. STAT. § 278.02521. Encourages local and regional governmental entities to construct public facilities in accordance with the LEED® Green Building System or its equivalent. Web-link: NEV. REV. STAT. § 278.02521 NEV. REV. STAT. § 396.514. Instruction within the Nevada System of Higher Education must be given in the essentials of green building construction and design to assist students in preparing for the LEED® Professional Accreditation Exam or its equivalent. Web-link: NEV. REV. STAT. § 396.514 NEV. REV. STAT. §§ 701.010 et. seq. Nevada’s chapter on energy policy including definitions, the organization and powers of the Office of Energy, and the organization and powers of the Energy Efficiency Authority. 12096859.2 Web-link: NEV. REV. STAT. §§ 701.010 et. seq NEV. REV. STAT. §§ 701A.100 et. seq. Nevada’s statutes on energy related tax incentives. The director of the Office of Energy must adopt a green building rating system for purposes of determining tax abatement. Depending on what green building rating received, partial abatement of 25% to 35% is available. Web-link: NEV. REV. STAT. §§ 701A.100 et. seq 27. New Jersey. N.J. STAT. ANN. § 52:27D-130.6. The Commissioner of Community Affairs is authorized to prepare and make available to the public, a green building manual for the purpose of ensuring that standards are available for those owners and builders who participate in any program that encourages or requires the construction of green buildings. Web-link: N.J. STAT. ANN. § 52:27D-130.6 N.J. STAT. ANN. § 52:32-5.3, 5.4. Any new State building over 15,000 square feet must be a high performance green building, which is defined as a LEED® silver rating. Web-link: N.J. STAT. ANN. § 52:32-5.3, 5.4 Executive Order 24-2002. Governor McGreevey signed Executive Order No. 24 in July 2002 requiring all new school designs to incorporate LEED® guidelines. The New Jersey Economic Schools Construction Corporation is encouraging the use of LEED® but not requiring certification of new projects built under its $12 billion public school construction program. Web-link: Executive Order 24-2002 28. New Mexico. N.M. STAT. ANN. § 7-2-18.19. Provides a "sustainable building tax credit" for the construction of a sustainable building or the renovation of an exiting building into a sustainable building. Web-link: N.M. STAT. ANN. § 7-2-18.19 N.M. STAT. ANN. § 7-2A-21. Provides a "sustainable building tax credit" for the construction of a sustainable building or the renovation of an exiting building into a sustainable building. Web-link: N.M. STAT. ANN. § 7-2A-21 12096859.2 N.M. STAT. ANN. § 15-3-36. Provides that any new building or renovation that is financed with legislative appropriations must be designed and constructed to attain the energy star qualification of the EPA or equivalent specified rule of the department. Web-link: N.M. STAT. ANN. § 15-3-36 Executive Order 06-001. On January 16, 2006, Governor Bill Richardson signed Executive Order #06-001 requiring all public buildings over 15,000 sq. ft. to be LEED® Silver certified. Web-link: Executive Order 06-001 New York. N.Y. EDUC. LAW § 6509. Provides for the revocation of an architect's or engineer's license, upon a hearing and a finding of willful misconduct, in the making of a certification under the green building tax credit. 29. Web-link: N.Y. EDUC. LAW § 6509 N.Y. TAX LAW § 19. Entitled "Green building tax credit," this program provides an income tax incentive to commercial developments incorporating specific green strategies informed by LEED®. Web-link: N.Y. TAX LAW § 19 N.Y. TAX LAW § 187-d. Entitled "Green building credit," this program provides an income tax incentive to corporations incorporating specific green strategies informed by LEED®. Web-link: N.Y. EDUC. LAW § 187-d N.Y. PUB. BLDGS. LAW § 83. Entitled "Agency greed building construction requirements”, the statute calls for the construction of new buildings and the renovation of existing buildings to comply with green standards. Web-link: N.Y. PUB BLDGS. LAW § 83 N.Y. REAL PROP. TAX LAW § 470. This statute provides for a range of tax exemptions depending on the LEED® certification. Web-link: N.Y. REAL PROP. TAX LAW § 470 Executive Order 111. Governor Pataki issued Executive Order #111 in June 2001 encouraging, but not requiring, state projects to incorporate LEED® Criteria and seek LEED® Certification where possible. New York State Energy Research and Development Authority 12096859.2 (NYSERDA) awards incentives and technical assistance to help state agencies achieve the Executive Order objective. Web-link: Executive Order 111 30. North Carolina. N.C. GEN. STAT. § 153A-340. To encourage construction utilizing sustainable design principles and to improve energy efficiency in buildings, a county may charge reduced building permit fees or provide partial rebates of building permit fees for buildings that are constructed or renovated using design principles that conform to or exceed LEED® certification. Web-link: N.C. GEN. STAT. § 153A-340 N.C. GEN. STAT. § 160A-381. To encourage construction utilizing sustainable design principles and to improve energy efficiency in buildings, a city may charge reduced building permit fees or provide partial rebates of building permit fees for buildings that are constructed or renovated using design principles that conform to or exceed LEED® certification. Web-link: N.C. GEN. STAT. § 160A-381 Enacted under the “Performance Standards for Sustainable, Energy-Efficient Public Buildings”, the statute calls for any new public building to be designed so that energy consumption is 30% less. Any public building renovation must be at 20% less energy consumption. N.C. GEN. STAT. § 143-153.37. Web-link: N.C. GEN. STAT. § 143-153.37 31. Ohio. OHIO REV. CODE ANN. § 125.15. Provides that all state agencies required to secure equipment, materials, supplies or services from the department of administrative services shall reimburse the department a reasonable sum to cover the department's costs relating to energy efficiency and conservation programs. Web-link: OHIO REV. CODE ANN. § 125.15 OHIO REV. CODE ANN. § 3345.69. Establishes a committee within the interuniversity council of Ohio to 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. Web-link: OHIO REV. CODE ANN. § 3345.69 OHIO REV. CODE ANN. §§ 4928.61-.63. Establishes the advanced energy, into which shall be deposited all advanced energy revenues for the exclusive purposes of funding the advanced energy program. 12096859.2 Web-link: OHIO REV. CODE ANN. § 4928.61 Web-link: OHIO REV. CODE ANN. § 4928.62 Web-link: OHIO REV. CODE ANN. § 4928.63 Oklahoma. OKLA. STAT. TIT. 61, § 213. The statute seeks to promote highperformance buildings by pursuing an ENERGY STAR designation. 32. Web-link: OKLA. STAT. TIT. 61, § 213 33. Oregon. OR. REV. STAT. § 315.331. Creates a tax credit for new construction projects or total renovations that achieve a LEED® Platinum certification, a four globes rating from Green Globes, or equivalent. Web-link: OR. REV. STAT. § 315.331 Rhode Island. R.I. GEN. LAWS § 37-24-1 et. seq. Entitled “The Green Buildings Act” requires all public projects to be designed and constructed to at least LEED® certified. 34. Web-link: R.I. GEN. LAWS § 37-24-1 et. seq. Executive Order 05-14. On August 22, 2005, Governor Donald Carcieri signed Executive Order #05-14 requiring all new constructions and renovations of public buildings to meet LEED® Silver certification or higher. Web-link: Executive Order 05-14 35. South Carolina. S.C. CODE ANN. § 48-52-800 et seq. Requires all stateowned and state-funded construction greater than 10,000 square feet and any major renovation projects of greater than 50% of the total building space or value achieve LEED-NC Silver certification or comparable standard. Web-link: S.C. CODE ANN. §§ 48-52-800 et seq. South Dakota. S.D. CODIFIED LAWS § 5-14-32 et. seq. Entitled “Public Building and Improvement” the following statutes require any state building project to meet or exceed a LEED® Silver standard, a two glob rating, or a comparable result. 36. Web-link: S.D. CODIFIED LAWS §§ 5-14-32 et seq. 12096859.2 37. Tennessee. TENN. CODE ANN. § 13-20-202. The statute allows the housing authority to pay for additional investments into green building, such as certification fees for LEED® and Green Globes. Web-link: TENN. CODE ANN. § 13-20-202. Vermont. VT. STAT. ANN. TIT. 30, § 53. Any local building permit application must be in compliance with the standards contained in the 2005 Vermont Guidelines for Energy Efficient Commercial Construction. The revision of these standards must comply with ANSI/ASHRAE/IESNA standard 90.1. 38. Web-link: VT. STAT. ANN. TIT. 30, § 53. 39. Virginia. VA. CODE ANN. § 58.1-3221.2. Declared that energy efficient buildings are a separate class of property for tax purposes. Among other possible qualifying factors, an energy efficient building is one that meets or exceeds meets or exceeds the standards of LEED® Green Building Rating System. Web-link: VA. CODE ANN. §58.1-3221.2. VA. CODE ANN. § 2.2-1182 et seq. Entitled the “High Performance Buildings Act”, the act declaring that any new building over 5,000 square feet or renovation where the cost exceeds 50% of the building’s value shall conform to VEES (Virgina’s high performance building certification program the considers LEED® standards and Green Globes). Web-link: VA. CODE ANN. §2.2-1182 et seq. Washington. WASH. REV. CODE §§ 39.35D.010 et seq. State funded projects over 5,000 square feet, including school district buildings, must be designed, constructed and certified to at least the LEED® Silver Standard. Additionally, all K-12 schools shall be certified to the LEED® Silver standard or built to comply with the Washington Sustainable Schools Protocol as of July 1, 2007. In addition, the code required all affordable homes receiving money from the state's Housing Trust Fund after July 1, 2008, to be built in compliance with the Evergreen Standard for Affordable Housing. By 2009, all new construction projects and major renovations receiving Washington State funds will be built to a green standard. 40. Web-link: WASH. REV. CODE §§ 39.35D.010 et seq. WASH. REV. CODE § 47.01.078. Provides for the Department of Transportation to consider engineers and architects to design environmentally sustainable transportation systems. Web-link: WASH. REV. CODE § 47.01.078 12096859.2 41. West Virginia. W. VA. CODE § 22-29-1 et. seq. All public buildings will be designed and constructed to comply with the ICC International Energy Conservation Code vand the ANSI/ASHRAE/IESNA Standard 90.1. Web-link: W. VA. CODE § 22-29-1 et. seq. Wisconsin. Executive Order 145. On April 11, 2006, Governor Jim Doyle signed Executive Order 145 Relating to Conserve Wisconsin and the Creation of High Performance Green Building Standards and Energy Conservation for State Facilities and Operations. The Executive Order directs the Department of Administration to establish and adopt guidelines based on LEED® for New Construction and LEED® for Existing Buildings within 6 months. Any project that requests LEED® certification as part of the initial project request will be supported by Department of Administration. 42. Web-link: Executive Order 145 12096859.2 Alaska (back to top) § 44.42.067. Retrofits and new construction for energy efficiency; energy efficiency report (a) Not later than January 1, 2020, the department shall work with other state agencies to retrofit at least 25 percent of all public facilities, starting with those it determines are the least energy efficient, if the department determines that retrofitting the public facilities will result in a net savings in energy costs to the state within 15 years after completion of the retrofits for a public facility and if funding for the retrofits is available. (b) A retrofit or deferred maintenance of a public facility performed under this section, to the extent feasible, shall meet or exceed the most recently published edition of the ASHRAE/IESNA Standard 90.1, Energy Standard for Buildings Except for Low-Rise Residential Buildings, as published by the American Society of Heating, Refrigerating and Air-Conditioning Engineers. (c) New construction of a public facility under this section shall meet or exceed the most recently published edition of the ASHRAE/IESNA Standard 90.1, Energy Standard for Buildings Except for Low-Rise Residential Buildings, as published by the American Society of Heating, Refrigerating and Air-Conditioning Engineers. (d) Not later than January 1 of each year, the department, in consultation with the Department of Administration, shall submit a report to the legislature detailing the department's progress in meeting the requirements of this section to reduce state energy consumption and costs and carrying out the duties listed in AS 44.42.020 as they relate to energy use. The department shall include in the report an analysis of the consumption and expense data recorded by the office of management and budget under AS 37.07.040, comparing energy consumption levels in each year with past years to determine if reductions are being achieved. (e) In this section, “public facility” means a facility owned and controlled by the state for government or public use that is 10,000 square feet or more and is not a legislative building or court building. 12096859.2 Arizona (back to top) 34-451. Energy conservation standards for public buildings A. The governor's energy office in consultation with persons responsible for building systems shall adopt and publish energy conservation standards for construction of all new capital projects as defined in § 41-790, including buildings designed and constructed by school districts, community college districts and universities. These standards shall be consistent with the recommended energy conservation standards of the American society of heating, refrigerating and air conditioning engineers and the international energy conservation code. B. The standards shall be adopted to achieve energy conservation and shall allow for design flexibility. C. The following state agencies shall reduce energy use in public buildings that they administer by ten percent per square foot of floor area on or before July 1, 2008 and by fifteen per cent per square foot of floor area on or before July 1, 2011, using July 1, 2001 through June 30, 2002 as the baseline year: 1. The department of administration for its building systems. 2. The Arizona board of regents for its building systems. 3. The department of transportation for its building systems. D. The governor's energy office shall provide technical assistance to the state agencies prescribed in subsection C of this section. On or before July 1 of each year, the energy office shall measure compliance with subsection C of this section, compile the results of that monitoring and report to the speaker of the house of representatives and the president of the senate as to the progress of attaining the goals prescribed in subsection C of this section. The energy office shall include in its report an explanation of the reasons for any failure to achieve energy reductions in specific building systems as prescribed in subsection C of this section. E. All state agencies shall procure energy efficient products that are certified by the United States department of energy or the United States environmental protection agency as energy star or that are certified under the federal energy management program in all categories that are available unless the products are shown not to be cost-effective on a life cycle cost basis. 34-452. Solar design standards for state buildings; energy life cycle costing A. Capital projects as defined in § 41-790 including buildings designed and constructed by the department of administration, school districts and universities and containing over six thousand square feet shall include a written evaluation of the following solar energy features: 1. 12096859.2 Proper site orientation. 2. Utilization of active and passive solar energy systems for space heating. 3. Utilization of solar water heating. 4. Utilization of solar daylighting devices as defined in section 44-1761. B. Energy life cycle costing shall be used to evaluate all solar energy and energy conservation design, equipment and materials that are considered for constructing new state buildings and in the scheduled remodeling of existing state buildings. 34-453. Energy performance goals for state buildings A. The department of administration shall apply energy conservation measures to and shall improve the design for the construction of capital projects so that the energy consumption per gross square foot in use during fiscal year 1992-1993 is at least ten per cent less than the energy consumption per gross square foot in use during fiscal year 1985-1986. B. The department of administration may exclude from the requirements of subsection A any capital project or portion of a capital project in which energy intensive activities are carried out. The department of administration shall identify and list those exclusions. C. The department of administration shall report on energy conservation related activities in the annual state capital improvement plan. 34-454. Establishment and use of life cycle cost methods and procedures; definition A. The director of the department of administration, in consultation with the Arizona commerce authority, shall establish practical and effective present value methods for estimating and comparing life cycle costs for state capital projects, using the sum of all capital and operating expenses associated with the energy system of the building involved over the expected life of the system or during a period of twenty-five years, whichever is shorter, and using average fuel costs and a discount rate determined by the director. The director shall develop and prescribe the procedures to be followed in applying and implementing the methods and procedures established by this subsection. B. The design of new capital projects and the application of energy conservation measures to existing capital projects shall be made using life cycle cost methods and procedures established pursuant to subsection A. C. cycle costs. In leasing buildings preference shall be given to buildings which minimize life D. For the purposes of this section, “life cycle cost” means the total cost of owning, operating and maintaining a building over its useful life, including such costs as fuel, energy, 12096859.2 labor and replacement components determined on the basis of a systematic evaluation and comparison of alternative building systems, except that in the case of leased buildings, the life cycle costs shall be calculated over the effective remaining term of the lease. 34-455. Performance contracting; definitions A. The department of administration shall develop and implement a program to enter into performance contracts solely for the purpose of achieving energy savings as measured in dollars and benefits ancillary to that purpose. Each contract may be for a period of not more than the expected life of the energy savings measures implemented or twenty-five years, whichever is shorter. The contract shall provide that the energy and operational savings generated cover all costs, after accounting for any financial incentives or assistance provided by utilities, associated with implementation of energy conservation measures to include audits, design equipment, purchase and installation, metering, interest on monies borrowed and training, and the contract shall include contractor profit. The contractor shall recover an amount not to exceed the summation of these costs and the agreed upon profit. Energy dollar savings realized as a result of a performance contract under this section shall be shared at a negotiated rate between the state and the contractor, until such time as the contractor has recovered the amount specified in the contract, at which time all savings shall accrue to the state. Interest rates charged on each contract shall be mutually agreed upon by the department of administration and the contractor. Contracts shall contain contingency provisions agreed upon by the department and the contractor for cases where measured energy dollar savings do not meet predicted energy dollar savings. B. For the purposes of this section: 1. "Combined heat and power" means any system that simultaneously or sequentially generates both electric or mechanical energy and useful thermal energy using the same unit of fuel. 2. "Energy dollar savings" means a reduction in the cost of energy, from a base energy cost established through a methodology set forth in the contract, utilized in an existing or new state owned or leased building as a result of either: (a) The lease or purchase of operating equipment by the state or contractor, improvements made, altered operation and maintenance, technical services provided or renewable energy sources utilized. (b) The increased efficient use of existing energy sources by cogeneration or combined heat and power. 34-456. Use of energy savings; definitions A. Fifty per cent of the amount of after-contract cost savings realized by the department of administration for that year from contracts entered into pursuant to section 34-455 12096859.2 shall remain available without further appropriation to undertake additional energy conservation measures. Funds generated as a result of these contracts shall be known as "energy conservation funds". The department shall use the energy conservation funds to implement additional energy conservation measures in state facilities. The department shall keep a separate accounting of these after-contract cost savings and provide an annual report to the speaker of the house of representatives, the president of the senate and the governor detailing account balances, amounts spent on additional conservation measures, energy and dollar savings accrued as a result of expenditures from the fund and projected utilization of the funds. These funds shall not be subject to the provisions of section 35-190. B. For the purposes of this section: 1. "After-contract cost savings" means the portion of energy dollar savings for that year that remains after all performance contract costs are paid for that year. 2. "combined heat and power" has the same meaning prescribed in section 34-455. 3. "Energy conservation measures" means measures that are applied to a state building that improve energy efficiency and are life cycle cost effective and involve energy conservation, cogeneration, renewable energy sources, improvements in operations, combined heat and power and maintenance efficiencies or retrofit activities. 41-111. Solar energy advisory council; definition A. members: 12096859.2 There is established a solar energy advisory council consisting of the following 1. The chairman of the Arizona power authority. 2. A member of the faculty at Arizona state university, who shall be appointed by the governor. 3. A member of the faculty at the university of Arizona, who shall be appointed by the governor. 4. A member of the faculty at northern Arizona university, who shall be appointed by the governor. 5. Eleven additional persons who are appointed by the governor and who shall either be knowledgeable of specific solar energy technologies or representatives of private industry involved in the application of solar energy to commercial, industrial or residential use. 6. The president of the senate and the speaker of the house of representatives or their representatives shall be advisory members. B. Appointments shall be made for terms of three years. Members appointed pursuant to subsection A, paragraphs 2 through 5 of this section shall serve at the pleasure of the governor. C. Members of the council serving by virtue of their office shall serve without compensation. Appointed members are eligible to receive compensation as determined pursuant to section 38-611 for each day of attendance at meetings. D. members. The chairman of the council shall be selected by the governor from among the E. The council shall meet upon call of the chairman. F. The council shall: 12096859.2 1. Assist and advise the governor's energy office on matters relating to the development and use of solar energy and other renewable energy resources including recommendations for the utilization or disbursement of federal and state funds for solar purposes. 2. Encourage efforts by research institutions, local government institutions and home builders in obtaining technical and financial support from the federal government for their activities in solar and advanced alternate energy systems. 3. Identify and describe the solar energy technologies that are feasible and practical in terms of short-term application of retrofit, new construction and conservation projects within five years. 4. Identify and describe long-range programs that are feasible and require significant technological development. Programs having similar technological gradients shall be formulated to encompass the period of time through the year 2020. 5. Encourage the cooperation and direct involvement of academic, business, professional and industrial sectors that are determined to have special expertise or knowledge of solar energy technology. 6. Make recommendations to the governor's energy office on standards, codes, certifications and other programs necessary for the orderly and rapid commercialization and growth of solar energy use in this state for consideration by the appropriate jurisdictional bodies. G. No member of the council shall obtain any pecuniary or proprietary interest from any decision of the council, either direct or indirect, except a remote interest as defined in § 38502, paragraph 10. H. For the purposes of this section, “advisory member” means a member who gives advice to the other members of the council at meetings of the council but who is not eligible to vote and is not a member for purposes of determining whether a quorum is present. 41-1510.01. Solar energy tax incentives; qualification A. The authority shall establish a procedure for identifying commercial solar energy projects that qualify for the purposes of the commercial solar energy income tax credits under §§ 43-1085 and 43-1164. B. To qualify for the tax credits, a business must apply in a form prescribed by the authority, including: 1. The name, address and telephone number of the business purchasing the solar energy device or system. 2. The name, address and telephone number of a contact person with the business. 3. The projected date that the installation of the solar energy device or system will begin and the projected finish date. 4. The location where the solar energy device or system will be installed. 5. The type of solar energy device or system, its total cost, excluding financing costs, and the estimated annual performance level. 6. The projected amount of the credit against state income taxes. C. Applications to the department under this section are confidential and are not subject to disclosure under title 39 for eighteen months after the date of application. D. 12096859.2 The authority shall: 1. Establish a preapproval process for the certification of applications. 2. Review and evaluate each submitted application. 3. Determine within thirty days after receiving the application whether the application meets the criteria for the purposes of the commercial solar energy income tax credits. 4. E. Provide its initial certification of a project to the applicant and to the department of revenue. The initial certification shall include a unique identifying number for each certified installation. On the completion of each certified installation: 1. The business must: (a) Certify that the installed solar energy device or system is operational. (b) Provide the total amount of income tax credits to be claimed. 2. The authority shall review the installation expenses and issue a credit certificate to the business. The credit certificate shall include the assigned identifying number. 3. The authority shall transmit the credit information and certificate number to the department of revenue. F. The authority shall not certify tax credits under this section in any calendar year that exceed a total of one million dollars. The total allowed under this section shall be reserved for the taxpayer based on preapproval under subsection D of this section. The final credit certificate issued under subsection E of this section shall not exceed the amount reserved. A taxpayer whose taxable year overlaps two calendar years may request approval from the second calendar year's cap if the first year's cap is exhausted and the application under subsection B of this section is submitted before the end of the taxpayer's taxable year. Nothing in this section shall be construed as allowing the taxpayer to claim credits under §§ 43-1085 and 43-1164 in any taxable year other than the taxable year the solar energy device was installed.. G. The authority and the department of revenue shall collaborate in adopting rules that are necessary to accomplish the intent and purpose of this section. 43-1083. Credit for solar energy devices A. A credit is allowed against the taxes imposed by this title for each resident who is not a dependent of another taxpayer for installing a solar energy device, as defined in section 425001, during the taxable year in the taxpayer's residence located in this state. The credit is equal to twenty-five per cent of the cost of the device. B. The maximum credit in a taxable year may not exceed one thousand dollars. The person who provides the solar energy device shall furnish the taxpayer with an accounting of the cost to the taxpayer. A taxpayer may claim the credit under this section only once in a tax year and may not cumulate over different tax years tax credits under this section exceeding, in the aggregate, one thousand dollars for the same residence. 12096859.2 C. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the amount of the claim not used to offset taxes under this title may be carried forward for not more than five consecutive taxable years as a credit against subsequent years' income tax liability. D. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the tax credit that would have been allowed for a joint return. E. The credit allowed under this section is in lieu of any allowance for state tax purposes for exhaustion, wear and tear of the solar energy device under section 167 of the internal revenue code. F. To qualify for the credit under this section the solar energy device and its installation shall meet the requirements of title 44, chapter 11, article 11. G. A solar hot water heater plumbing stub out that was installed by the builder of a house or dwelling unit before title was conveyed to the taxpayer does not qualify for a credit under this section, but the taxpayer may claim a credit for the device under section 43-1090 or 43-1176 under the circumstances, conditions and limitations prescribed by section 43-1090, subsection C or 43-1176, subsection C, as applicable. 43-1083.01 Credit for renewable energy industry A. For taxable years beginning from and after December 31, 2009 through December 31, 2019, a credit is allowed against the taxes imposed by this title for qualified investment and employment in expanding or locating qualified renewable energy operations in this state. To qualify for the credit, the taxpayer must invest in renewable energy manufacturing, or in new regional, national or global renewable energy business headquarters, in this state and produce new full-time employment positions where the job duties are performed at the location of the qualifying investment. The taxpayer must meet the employee compensation and employee health benefit requirements prescribed by § 41-1511. B. The amount of the credit is computed as follows: 1. Ten per cent of the taxpayer's total capital investment in projects meeting the following minimum employment requirements: (a) For qualifying renewable energy manufacturing operations, at least one and one-half new full-time employment positions for each five hundred thousand dollar increment of capital investment. (b) For qualifying renewable energy business headquarters, at least one new full-time employment position for each two hundred thousand dollar increment of capital investment. 12096859.2 2. For other qualifying renewable energy investment, ten per cent of the amount computed as follows: (a) Five hundred thousand dollars for each one and one-half new full-time employment positions in new renewable energy manufacturing operations. (b) Two hundred thousand dollars for each new full-time employment position at a new renewable energy business headquarters. (c) The amount of credit under this paragraph shall not exceed ten per cent of the amount of the taxpayer's total capital investment. 3. The amount of the credit shall not exceed the postapproval amount determined by the Arizona commerce authority under § 41-1511, subsection P. 4. The credit amount computed under paragraph 1 or 2 of this subsection is apportioned, and the taxpayer shall claim the credit in five equal annual installments in each of five consecutive taxable years. C. To claim the credit the taxpayer must: 1. Conduct a business that qualifies under § 41-1511. 2. Receive preapproval and postapproval from the Arizona commerce authority pursuant to § 41-1511. 3. Submit a copy of a current and valid certification of qualification issued to the taxpayer by the Arizona commerce authority. D. To be counted for the purposes of the credit, an employee must have been employed at the qualifying facility for at least ninety days during the taxable year in a permanent fulltime employment position of at least one thousand seven hundred fifty hours per year. An employee who is hired during the last ninety days of the taxable year shall be considered a new employee during the next taxable year. To be counted for the purposes of the credit during the first taxable year of employment, the employee must not have been previously employed by the taxpayer within twelve months before the current date of hire. The terms of employment must comply in all cases with the requirements of § 41-1511 and certification by the Arizona commerce authority. E. Co-owners of a business, including partners in a partnership, members of a limited liability company and shareholders of an S corporation, as defined in § 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all owners of 12096859.2 the business may not exceed the amount that would have been allowed for a sole owner of the business. F. If the allowable tax credit for a taxable year exceeds the income taxes otherwise due on the claimant's income, or if there are no state income taxes due on the claimant's income, the amount of the claim not used as an offset against income taxes shall be paid to the taxpayer in the same manner as a refund under § 42-1118. Refunds made pursuant to this subsection are subject to setoff under § 42-1122. If the department determines that a refund is incorrect or invalid, the excess refund may be treated as a tax deficiency pursuant to § 42-1108. G. Except as provided by subsection H of this section, if, within five taxable years after first receiving a credit pursuant to this section, the certification of qualification of a business is terminated or revoked under § 41-1511, other than for reasons beyond the control of the business as determined by the Arizona commerce authority, the taxpayer is disqualified from credits under this section in subsequent taxable years. On a determination that the taxpayer has committed fraud or relocated outside of this state within five taxable years of first receiving a credit pursuant to this section, the credits allowed the taxpayer in all taxable years pursuant to this section are subject to recapture pursuant to this subsection. This subsection applies only in the case of the termination or revocation of a certification of qualification under § 41-1511. This subsection does not apply if, in any taxable year, a taxpayer otherwise does not qualify for or fails to claim the credit under this section. The recapture of credits is computed by increasing the amount of taxes imposed in the year following the year of termination or revocation by the full amount of all credits previously allowed under this section. H. A taxpayer who claims a credit under § 43-1074 or 43-1079 may not claim a credit under this section with respect to the same full-time employment positions. I. The department of revenue shall adopt rules and prescribe forms and procedures as necessary for the purposes of this section. The department of revenue and the Arizona commerce authority shall collaborate in adopting rules as necessary to avoid duplication and contradictory requirements while accomplishing the intent and purposes of this section. J. For the purposes of this section, renewable energy operations are limited to manufacturers of, and headquarters for, systems and components that are used or useful in manufacturing renewable energy equipment for the generation, storage, testing and research and development, transmission or distribution of electricity from renewable resources, including specialized crates necessary to package the renewable energy equipment manufactured at the facility. § 43-1083.02. Renewable energy production tax credit; definitions A. A credit is allowed against the taxes imposed by this title for the production of electricity using renewable energy resources. 12096859.2 B. The taxpayer is eligible for the credit: 1. If the taxpayer holds title to a qualified energy generator that first produces electricity from and after December 31, 2010 and before January 1, 2021. 2. For ten consecutive calendar years beginning with the calendar year in which the qualified energy generator begins producing electricity that is transmitted through a transmission facility to a grid connection with a public or private electric transmission or distribution utility system. That same date applies with respect to that generator until the expiration of the ten-year period regardless of whether the generator is sold to another taxpayer or goes out of production before the expiration of the ten-year period. C. The credit authorized by this section is based on the electricity that is generated by a qualified energy generator during a calendar year. For a taxpayer that files on a fiscal year basis, the credit shall be claimed on the return for the taxable year in which the calendar year ends. D. Subject to subsection G of this section, the amount of the credit is: 1. One cent per kilowatt-hour of the first two hundred thousand megawatt-hours of electricity produced by a qualified energy generator in the calendar year using a wind or biomass derived qualified energy resource. 2. The following amounts for electricity produced by a qualified energy generator using a solar light derived or solar heat derived qualified energy resource: (a) Four cents per kilowatt-hour in the first calendar year in which the qualified energy generator produces electricity. (b) Four cents per kilowatt-hour in the second calendar year in which the qualified energy generator produces electricity. (c) Three and one-half cents per kilowatt-hour in the third calendar year in which the qualified energy generator produces electricity. (d) Three and one-half cents per kilowatt-hour in the fourth calendar year in which the qualified energy generator produces electricity. (e) Three cents per kilowatt-hour in the fifth calendar year in which the qualified energy generator produces electricity. (f) Three cents per kilowatt-hour in the sixth calendar year in which the qualified energy generator produces electricity. 12096859.2 (g) Two cents per kilowatt-hour in the seventh calendar year in which the qualified energy generator produces electricity. (h) Two cents per kilowatt-hour in the eighth calendar year in which the qualified energy generator produces electricity. (i) One and one-half cents per kilowatt-hour in the ninth calendar year in which the qualified energy generator produces electricity. (j) One cent per kilowatt-hour in the tenth calendar year in which the qualified energy generator produces electricity. E. To qualify for the purposes of this section, an energy generator may be located within one mile of an existing qualified energy generator only if the owner of the energy generator or the owner's corporate affiliates are not the owner of or the corporate affiliate of the owner of the existing qualified energy generator. F. To be eligible for the credit under this section, the taxpayer must apply to the department, on a form prescribed by the department, for certification of the credit. The department shall only accept applications beginning January 2 through January 31 of the year following the calendar year for which the credit is being requested. The application shall include: 1. The name, address and social security number or federal employer identification number of the applicant. 2. The location of the taxpayer's facility that produces electricity using renewable energy resources for which the credit is claimed. 3. The amount of the credit that is claimed. 4. The date the qualified energy generator began producing commercially marketable amounts of electricity. 5. Any additional information that the department requires. G. The department shall review each application under subsection F of this section and certify to the taxpayer the amount of the credit that is authorized. The amount of the credit for any calendar year shall not exceed two million dollars per facility that produces electricity using renewable energy resources. Credits are allowed under this section and § 43-1164.03 on a first come, first served basis. The department shall not authorize tax credits under this section and § 43-1164.03 that exceed in the aggregate a total of twenty million dollars for any calendar year. The first time that a taxpayer submits a qualified application for a qualified energy generator under subsection F of this section, the department shall add the taxpayer's name to a credit authorization list 12096859.2 that is maintained in the order in which qualified applications are first received by the department on behalf of the qualified energy generator. A taxpayer's position on the credit authorization list shall be determined in the first year the taxpayer submits an application under subsection F of this section for the qualified energy generator. The taxpayer's position on the credit authorization list for a particular qualified energy generator shall remain unchanged for the ten years that are specified in subsection B, paragraph 2 of this section or until a year in which the taxpayer fails to submit a timely application under subsection F of this section or otherwise fails to comply with this section. If a taxpayer is removed from the credit authorization list for a qualified energy generator, the taxpayer may establish a new position on the credit authorization list in a subsequent year by filing a timely application for a qualified energy generator that qualifies for the credit. If an application is received that, if authorized, would require the department to exceed the twenty million dollar limit, the department shall grant the applicant only the remaining credit amount that would not exceed the twenty million dollar limit. After the department authorizes twenty million dollars in tax credits, the department shall deny any subsequent applications that are received for that calendar year. The department shall not authorize any additional tax credits that exceed the twenty million dollar limit even if the amounts that have been certified to any taxpayer were not claimed or a taxpayer otherwise fails to meet the requirements to claim the additional credit. H. Co-owners of a qualified energy generator, including partners in a partnership, members of a limited liability company and shareholders of an S corporation as defined in section 1361 of the internal revenue code,1 may each claim the pro rata share of the credit allowed under this section based on ownership interest. The total of the credits allowed all such owners of the qualified energy generator may not exceed the amount that would have been allowed for a sole owner of the generator. I. If the allowable tax credit for a taxpayer exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the amount of the claim not used to offset taxes under this title may be carried forward for not more than five consecutive taxable years as a credit against subsequent years' income tax liability. J. The department shall adopt rules and publish and prescribe forms and procedures as necessary to effectuate the purposes of this section. K. For the purposes of this section: 1. “Biomass” means organic material that is available on a renewable or recurring basis, including: (a) Forest-related materials, including mill residues, logging residues, forest thinnings, slash, brush, low-commercial value materials or undesirable species, salt cedar and other phreatophyte or woody vegetation removed from river basins or watersheds and woody 12096859.2 material harvested for the purpose of forest fire fuel reduction or forest health and watershed improvement. (b) Agricultural-related materials, including orchard trees, vineyard, grain or crop residues, including straws and stover, aquatic plants and agricultural processed coproducts and waste products, including fats, oils, greases, whey and lactose. (c) Animal waste, including manure and slaughterhouse and other processing waste. (d) Solid woody waste materials, including landscape or right-of-way tree trimmings, rangeland maintenance residues, waste pallets, crates and manufacturing, construction and demolition wood wastes, excluding pressure-treated, chemically-treated or painted wood wastes and wood contaminated with plastic. (e) Crops and trees planted for the purpose of being used to produce energy. (f) Landfill gas, wastewater treatment gas and biosolids, including organic waste byproducts generated during the wastewater treatment process. 2. “Qualified energy generator” means a facility that has at least five megawatts generating capacity, that is located on land in this state owned or leased by the taxpayer, that produces electricity using a qualified energy resource and that sells that electricity to an unrelated entity, unless the electricity is sold to a public service corporation. 3. “Qualified energy resource” means a resource that generates electricity through the use of only the following energy sources: (a) Solar light. (b) Solar heat. (c) Wind. (d) Biomass. 43-1085. Credit for solar energy devices; commercial and industrial applications A. For taxable years beginning from and after December 31, 2005 through December 31, 2018, a credit is allowed against the taxes imposed by this title for a taxpayer who is either: 12096859.2 B. 1. Installing one or more solar energy devices, as defined in § 42-5001 and certified pursuant to § 41-1510.01, during the taxable year for commercial, industrial or any other nonresidential application in the taxpayer's facility located in this state. 2. The third party organization that financed, installed or manufactured the solar energy device that qualifies for the credit under paragraph 1 of this subsection if the taxpayer or an entity exempt from taxation under chapter 12 of this title who otherwise would qualify for this credit transfers the credit on a form prescribed by the department to the third party organization. The amount of the credit is equal to ten per cent of the installed cost of the device. C. The person who provides or installs the device shall furnish the taxpayer with an accounting of the cost to the taxpayer. D. The taxpayer may not cumulate total tax credits under this section exceeding twenty-five thousand dollars with respect to the same building in the same year or fifty thousand dollars in total credits in any year.. E. If the allowable credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the amount of the claim not used to offset taxes under this title may be carried forward for not more than five consecutive taxable years as a credit against subsequent years' income tax liability. F. Co-owners of a business, including partners in a partnership and shareholders of an S corporation, as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest or financial investment in the system. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner. § 43-1085.01. Credit for solar liquid fuel; research and development; production; delivery systems; definitions A. Credits are allowed against the taxes imposed by this title for research and development, production and delivery system costs associated with solar liquid fuel as provided by this section. B. For taxable years beginning from and after December 31, 2010 through December 31, 2021, a credit is allowed for increased research and development activity related to solar liquid fuel as provided by section 41 of the internal revenue code,1 except that the amount of the credit is equal to forty per cent of the amount exceeding the excess, if any, of the qualified research expenses for the taxable year over the base amount as defined in section 41(c) of the internal revenue code. Qualified research includes only research 12096859.2 conducted in this state, including research conducted at a university in this state and paid for by the taxpayer. C. For taxable years beginning from and after December 31, 2015 through December 31, 2026, a credit is allowed for the production of solar liquid fuel in this state in commercial quantities. The amount of the credit is equal to eleven cents per one hundred thousand British thermal units of fuel produced in this state during the taxable year. D. For taxable years beginning from and after December 31, 2015 through December 31, 2026, a credit is allowed for costs incurred during the taxable year to convert or modify existing motor vehicle fuel service stations for the retail sale of solar liquid fuel to customers. The amount of the credit is equal to thirty per cent of the cost of conversion or modification, but not more than twenty thousand dollars per taxable year per service station. E. Co-owners of a business, including partners in a partnership and shareholders of an S corporation, as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed for the sole owner of the business. F. A taxpayer that claims a credit for increased research and development activity under subsection B of this section shall not claim a credit under § 43-1074.01 for the same expenses. G. For the purposes of this section: 1. “Commercial quantities” means an amount of fuel that can be produced and sold by an incorporated entity in the wholesale or retail trade. 2. “Production” means the production of infrastructure compatible fuels derived from sunlight, carbon dioxide and water that are converted into intermediary chemicals and gases that are used to produce hydrocarbon fuels. 3. “Solar liquid fuel” means liquid fuel that is generated through processes that use sunlight, carbon dioxide and water to produce infrastructure compatible liquid hydrocarbon fuels. 43-1090. Credit for solar hot water heater plumbing stub outs and electric vehicle recharge outlets installed in houses constructed by taxpayer A. A credit is allowed against the taxes imposed by this title for costs incurred during the taxable year of installing or including in one or more houses or dwelling units located in this state and constructed by the taxpayer one or more: 12096859.2 1. 2. Solar hot water plumbing stub outs. To qualify for the credit, the stub out must: (a) Include two insulated three-fourths inch copper pipes and at least two pairs of wires for monitoring and control purposes that project from the dwelling roof or other suitable location and that are connected to the domestic hot water transport and storage system. (b) Be located and configured to allow sufficient solar access and exposure and to allow ready installation of solar water heating devices without further expense or effort to reach, use or serve the domestic hot water system of the house or dwelling. Electric vehicle recharge outlets. To qualify for the credit, the outlet must be connected to the utility system by a dedicated line that: (a) Is capable of operating at normal secondary voltages. (b) Meets applicable local building safety codes. (c) Is commensurate and consistent with electric vehicle recharging needs and methods. B. The credit shall not exceed seventy-five dollars for each installation for each separate house or dwelling unit. C. The taxpayer may elect to transfer a credit under this section to a purchaser or transferee of the house or dwelling unit. If the taxpayer elects to transfer the credit, the taxpayer shall deliver to the purchaser or transferee a written statement that the taxpayer has elected not to claim the credit and that the purchaser or transferee may claim the credit, subject to the conditions and limitations prescribed by this section. D. If the allowable credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the amount of the credit not used to offset taxes under this title may be carried forward to the next five consecutive taxable years as a credit against subsequent years' income tax liability. E. Co-owners of a business, including partners in a partnership and shareholders of an S corporation, as defined in section 1361 of the internal revenue code, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner. F. The credit allowed under this section is in lieu of any expenses taken for installing solar stub outs or electric vehicle recharge outlets to reach Arizona taxable income. 12096859.2 43-1164. Credit for solar energy devices; commercial and industrial applications A. For taxable years beginning from and after December 31, 2005 through December 31, 2018, a credit is allowed against the taxes imposed by this title for a taxpayer that is either: B. 1. Installing one or more solar energy devices, as defined in § 42-5001 and certified pursuant to § 41-1510.01, during the taxable year for commercial, industrial or any other nonresidential application in the taxpayer's facility located in this state. 2. The third party organization that financed, installed or manufactured the solar energy device that qualifies for the credit under paragraph 1 of this subsection if the taxpayer or an entity exempt from taxation under chapter 12 of this title who otherwise would qualify for this credit transfers the credit on a form prescribed by the department to the third party organization. The amount of the credit is equal to ten per cent of the installed cost of the device. C. The person who provides or installs the device shall furnish the taxpayer with an accounting of the cost to the taxpayer. D. The taxpayer may not cumulate total tax credits under this section exceeding twenty-five thousand dollars with respect to the same building in the same year or fifty thousand dollars in total credits in any year. E. If the allowable credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the amount of the claim not used to offset taxes under this title may be carried forward for not more than five consecutive taxable years as a credit against subsequent years' income tax liability. F. Co-owners of a business, including corporate partners in a partnership, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest or financial investment in the system. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner. 43-1176. Credit for solar hot water heater plumbing stub outs and electric vehicle recharge outlets installed in houses constructed by taxpayer A. A credit is allowed against the taxes imposed by this title for costs incurred during the taxable year of installing or including in one or more houses or dwelling units located in this state and constructed by the taxpayer one or more: 1. 12096859.2 Solar hot water plumbing stub outs. To qualify for the credit the stub out must: 2. (a) Include two insulated three-fourths inch copper pipes and at least two pairs of wires for monitoring and control purposes that project from the dwelling roof or other suitable location and that are connected to the domestic hot water transport and storage system. (b) Be located and configured to allow sufficient solar access and exposure and to allow ready installation of solar water heating devices without further expense or effort to reach, use or serve the domestic hot water system of the house or dwelling. Electric vehicle recharge outlets. To qualify for the credit, the outlet must be connected to the utility system by a dedicated line that: (a) Is capable of operating at normal secondary voltages. (b) Meets applicable local building safety codes. (c) Is commensurate and consistent with electric vehicle recharging needs and methods. B. The credit shall not exceed seventy-five dollars for each installation for each separate house or dwelling unit. C. The taxpayer may elect to transfer a credit under this section to a purchaser or transferee of the house or dwelling unit. If the taxpayer elects to transfer the credit, the taxpayer shall deliver to the purchaser or transferee a written statement that the taxpayer has elected not to claim the credit and that the purchaser or transferee may claim the credit, subject to the conditions and limitations prescribed by this section. D. If the allowable credit exceeds the taxes otherwise due under this title on the claimant's income or if there are no taxes due under this title, the amount of the credit not used to offset taxes under this title may be carried forward to the next five consecutive taxable years as a credit against subsequent years' income tax liability. E. Co-owners of a business, including corporate partners in a partnership, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all such owners may not exceed the amount that would have been allowed a sole owner. F. The credit allowed under this section is in lieu of any expenses taken for installing solar stub outs or electric vehicle recharge outlets to reach Arizona taxable income. 12096859.2 Arkansas (back to top) 22-3-1801. Title. This subchapter shall be known and may be referred to as the “Arkansas Energy and Natural Resource Conservation Act”. 22-3-1802. Findings and purpose. It is found and determined by the General Assembly that: State-funded building projects have a significant impact on the environment of our Natural State, the economy, and the health and productivity of building inhabitants; State government currently spends approximately seventy million dollars ($70,000,000) annually for electricity and natural gas consumed in state buildings, and energy expenditures have been increasing at nearly four percent (4%) per year over the last ten (10) years; It is incumbent upon Arkansas state government to lead by example to minimize energy use and environmental impact in state buildings; Innovations in building science, technology, and operations are available to maximize the economic utility of state-funded building projects and reduce energy costs, while achieving the best environmental performance and reducing adverse impacts on the environment; and Incorporating principles of sustainability in building design will enhance efficient management of material resources and waste, protect health and indoor environmental quality, reduce the longer-term costs of construction and operation of state-funded buildings, and promote the use of appropriate Arkansas products in the buildings. In recognition of the economic, energy conservation, and environmental benefits of sustainable building design, it is in the best interest of the State of Arkansas to initiate a process to encourage improved building practices, to provide support and information to assist state agencies in carrying out the purposes of this subchapter, and to continue development of the best building practices through a legislative task force to evaluate and report to the General Assembly the progress being made under this subchapter. 22-3-1803. Definitions. As used in this subchapter: “Adaptive reuse” means the modification to accommodate a function other than its original intent of any building site and existing inhabited structure; (A) “Building project” means any inhabited physical structure and project building site. The phrase includes any structure in which any individual spends more than an hour of time within the structure such as residences, offices, visitors centers, classrooms, administration buildings, etc. 12096859.2 “Building project” does not include ancillary structures or buildings with temporary occupancy such as park restrooms, pavilions, storage facilities, or similar structures; “Grant applicant” means any individual, institution, governmental jurisdiction, or other organization recognized by the granting department or agency as qualified to apply for financial assistance from any state department, agency, or office for the purpose of planning, designing, or constructing a new or rehabilitated building; (A) “Green Globes” means the online environmental assessment tool developed by the Green Building Initiative as of December 2004. “Green Globes” allows designers, property owners, and managers to evaluate and rate buildings against best sustainable building design and practices and integrate principles of sustainable architecture at every stage of project delivery in order to design and construct buildings that will be energy-efficient and resource-efficient, achieve operational savings, and provide healthier environments in which to live and work; (A) “Leadership in Energy and Environmental Design” means the following building rating systems developed by the United States Green Building Council: LEED -NC 2.1, as it exists on January 1, 2005; LEED -EB, as it exists on January 1, 2005; or LEED -CI, as it exists on January 1, 2005. “Leadership in Energy and Environmental Design” allows designers, property owners, and managers to evaluate and rate buildings against best sustainable building design and practices and to integrate principles of sustainable architecture at every stage of project delivery in order to design and construct buildings that will be energy-efficient and resource-efficient, achieve operational savings, and provide healthier environments in which to live and work; “Newly designed construction project” means any building and its building site for which a contract has been entered into beginning July 1, 2005, to construct a building and building site improvements as outlined in Leadership in Energy and Environmental Design or Green Globes rating systems; “Project building site” means all property associated with a building, including the defined legal description of the property or the defined project limits; (A) “Project limits” means the physical boundaries of a construction project within which all construction activity must occur. “Project limits” includes material and equipment storage space, lay-down or prefabrication space, clearing, grubbing, and drainage improvements; 12096859.2 “Project team” means the persons or individuals representing the state agency or owner, professional design consultants, and building contractor, if a contractor is determined prior to design; “Proposed construction project” means all building construction projects in the conceptual planning stages for which a design contract has been executed after July 1, 2005; “Public and private partnerships” means any private development that uses state money to assist in the planning, design, or construction of a building project, such as a building project providing economic incentives for development; “Public funding” means federal or state funds that are allocated for a state building project; “Rehabilitation project” means any building project involving the modification or adaptive reuse of an existing facility in which twenty-five percent (25%) or more of the physical structure, facade, or interior space of a facility is being changed or modified; “State agency” means all departments, offices, boards, commissions, and institutions of the state, including the state-supported institutions of higher education; “State building project” means any inhabited physical structure and project building site in which: A state agency secures the design or construction contract; and Public funding is used in whole or in part to design or construct the project; and “Sustainable” means that: A building integrates building materials and methods that promote environmental quality, energy conservation, economic vitality, and social benefit through the design, construction, and operation of the built environment; A building merges sound, environmentally responsible practices into one (1) discipline that looks at the environmental, economic, and social effects of a building or built project as a whole; and The design encompasses the following broad topics: Efficient management of energy and water resources; Management of material resources and waste; Protection of environmental quality; Protection of health and indoor environmental quality; Reinforcement of natural systems; and 12096859.2 Integrating the design approach. 22-3-1804. Standards for Arkansas. If a state agency decides to pursue either the Leadership in Energy and Environmental Design certification or the Green Globes certification, the standards of this section shall apply for the purpose of state building projects. (1) Use of the Leadership in Energy and Environmental Design rating system shall be with the following supplemental provisions specific to state building projects: Under LEED EQ Credit 4.4, one (1) point shall be awarded for the use of composite wood and agrifiber products if the architect or responsible party provides appropriate documentation that the products are third-party certified as meeting the American National Standards Institute standard requirements, ANSI A208.1 for Particleboard Standard, ANSI A 208.2 for MDF, for formaldehyde emissions, or contain no added urea-formaldehyde; Under LEED MR Credit 4, one (1) point shall be awarded when the sum of postconsumer recycled content plus one-half (½) of the preconsumer recycled content constitutes at least ten percent (10%) of the total value of the materials in the project. A second point shall be awarded if the sum of postconsumer recycled content plus one-half (½) of the preconsumer content constitutes at least twenty percent (20%) of the total value of the materials in the project. The valuation is to be determined by using the LEED -NC letter template; Under LEED MR Credit 6, one (1) point shall also be awarded for the use of renewable, bio-based materials for five percent (5%) of the total value of all the products used in the project that are either residuals of or products grown or harvested under a recognized sustainable management system such as the Forest Stewardship Council, the Sustainable Forestry Initiative Program, the American Tree Farm System, the Canadian Standards Association, the Organic Trade Association, and the Association for Bamboo in Construction. The applicable vendor's or manufacturer's certification documentation must be provided; Under LEED MR Credit 7, one (1) point shall also be awarded for the use of renewable, bio-based raw materials certified in accordance with one (1) or more premier certification programs for environmental management for fifty percent (50%) of the total value of all biobased materials and products used in the project. Certification programs include, but are not limited to, the Forest Stewardship Council, the Sustainable Forestry Initiative, the American Tree Farm System, the Canadian Standards Association, the Organic Trade Association, and the Association for Bamboo in Construction. The applicable vendor's or manufacturer's certification documentation must be provided; Under LEED ID Credit 1.1, one (1) point will be awarded if five percent (5%) or more of the mass of all building materials used are carbon-sequestering bio-based products managed under a recognized sustainable management plan; and 12096859.2 Under LEED ID Credit 1.2, one (1) point will be awarded for the use of bio-based materials derived from multiple credible certified sources supported by an environmental management system certified under the International Organization for Standardization standard ISO 14001, including the Forest Stewardship Council, the Sustainable Forestry Initiative, the American Tree Farm System, the Canadian Standards Association, the Organic Trade Association, and the Association for Bamboo in Construction. The applicable vendor's or manufacturer's certification documentation must be provided. Use of the Green Globes rating system shall be with the following supplemental provision specific to state building projects: An additional fifteen (15) points shall be awarded if five percent (5%) or more of the mass of all building materials used are carbon-sequestering wood bio-based products; and Fifteen (15) points will be awarded for the use of bio-based materials derived from multiple credible certified sources supported by an environmental management system certified under the International Organization for Standardization standard ISO 14001, including the Forest Stewardship Council, the Sustainable Forestry Initiative, the American Tree Farm System, the Canadian Standards Association, the Organic Trade Association, and the Association for Bamboo in Construction. The applicable vendor's or manufacturer's certification documentation must be provided. 22-3-1805. Application to state building projects. State agencies conducting or funding a public building project or rehabilitation project are encouraged to refer to and should utilize, whenever possible and appropriate, the Leadership in Energy and Environmental Design or Green Globes rating systems referred to in this subchapter. 22-3-1806. Legislative Task Force on Sustainable Building Design and Practices. The Legislative Task Force on Sustainable Building Design and Practices is established to: Continue to review, discuss, and advise on issues related to sustainable design and practices for buildings; Monitor case-study projects and evaluate performance and outcomes relevant to highperformance building strategies; Serve as a reference for educational resources; Ask for a review of sustainable building design and practices performed by state agencies; Develop goals and strategies to promote energy efficiency in state buildings; and Identify and promote new and innovative air conditioning and heating products or services that conserve energy and reduce energy usage. 12096859.2 (1) The task force shall be composed of no more than twenty (20) members. The number of members shall be determined by agreement between the Chair of the Senate Interim Committee on Public Health, Welfare, and Labor and the Chair of the House Interim Committee on Public Health, Welfare, and Labor. The Chair of the Senate Interim Committee on Public Health, Welfare, and Labor and the Chair of the House Interim Committee on Public Health, Welfare, and Labor shall appoint the membership pursuant to procedure agreed upon by the chairs. The task force shall include members of the General Assembly and members of the public. The cochairs of the task force shall be members of the General Assembly. One (1) cochair shall be a member of the Senate and one (1) cochair shall be a member of the House of Representatives. The legislative members of the task force shall be entitled to mileage and per diem at the same rate as for attending other legislative committees. The task force shall receive staff support from the Bureau of Legislative Research. The task force shall expire on July 1, 2009, unless continued by an act of the General Assembly. § 22-3-2001. Legislative findings The General Assembly finds that: (1) (A) Public buildings can be built and renovated using sustainable, energy-efficient methods that save money, reduce negative environmental impacts, improve employee and student performance, and make employees and students more productive. (B) The main objectives of sustainable, energy-efficient designs are to: (i) Avoid resource depletion of energy, water, and raw materials; (ii) Prevent environmental degradation caused by facilities and infrastructure throughout their life cycle; and (iii) Create buildings that are livable, comfortable, safe, and productive; and (2) State-owned buildings and buildings owned by an institution of higher education can be improved by establishing specific performance criteria and goals for sustainable, 12096859.2 energy-efficient public buildings that are based on recognized, consensual standards with a scientifically proven basis and a history of successful performance. § 22-3-2002. Definitions As used in this subchapter: (1) “Institution of higher education” means a state-supported university or college; (2) “Life-cycle cost analysis” means an analytical technique that considers the costs of owning, using, and operating a facility over its economic life including without limitation: (A) Initial costs; (B) System repair and replacement costs; (C) Maintenance costs; (D) Operating costs, including energy costs; and (E) Salvage value; (3)(A) “Major facility” means a construction project larger than twenty thousand (20,000) gross square feet of occupied or conditioned space. (B) “Major facility” does not include a transmitter building or a pumping station; (4) “Major renovation” means a building renovation project that: (A) Costs more than fifty percent (50%) of its current replacement value; (B) Is larger than twenty thousand (20,000) gross square feet of occupied or conditioned space; and (C) Is funded in whole or in part by the state; (5) “Public agency” means a state agency, office, officer, board, department, or commission; and (6) “Sustainable, energy-efficient public building” means a public building that, by complying with this subchapter, has the most economical energy and water efficiency for that type of building. § 22-3-2003. The Sustainable Energy-Efficient Buildings Program (a) The Sustainable Energy-Efficient Buildings Program is established to promote energy conservation in buildings owned by public agencies and buildings owned by institutions of higher education. (b) Under the Sustainable Energy-Efficient Buildings Program: 12096859.2 (1) For public agencies, the Arkansas Energy Office shall develop and: (A) Issue policies and technical guidelines to establish procedures and methods for compliance with the criteria and the performance standards for a major facility or a major renovation under § 22-3-2004; and (B) Administer an energy management program designed to achieve compliance with the requirements of § 22-3-2006 through the implementation of energy conservation measures; and (2) For the institutions of higher education, each institution of higher education: (A) Shall develop and issue policies and technical guidelines to establish procedures and methods for compliance with the criteria and the performance standards for a major facility or a major renovation under § 22-3-2004; and (B) May administer an energy management program designed to achieve compliance with the requirements of § 22-3-2006 through the implementation of energy conservation measures. § 22-3-2004. Standards for a major facility or a major renovation (a) The following minimum standards apply to a major facility: (1) A major facility of a public agency or an institution of higher education shall be designed, constructed, and certified to at least ten percent (10%) reduction below the baseline energy consumption determined in accordance with the Performance Rating Method of Appendix G of the American Society of Heating, Refrigerating, and AirConditioning Engineers, Standard 90.1-2007, as it existed on January 1, 2009; (2) Subdivision (a)(1) of this section applies to a major facility project that has not entered the schematic design phase before July 31, 2009; and (3) An exception or a special standard for a specific type of building or building facility that is found in the American Society of Heating, Refrigerating, and Air-Conditioning Engineers, Standard 90.1-2007, is included in the American Society of Heating, Refrigerating, and Air-Conditioning Engineers, Standard 90.1-2007, under subdivision (a)(1) of this section. (b)(1) A major renovation of a public agency or an institution of higher education shall be certified to at least ten percent (10%) reduction below the baseline energy consumption determined in accordance with the Performance Rating Method of Appendix G of the American Society of Heating, Refrigerating, and Air-Conditioning Engineers, Standard 90.1-2007, as it existed on January 1, 2009. (2) Subdivision (b)(1) of this section applies to a major renovation that has not entered the schematic design phase before July 31, 2009. 12096859.2 (c) For new construction under either subsection (a) or (b) of this section: (1) The indoor water system shall be designed and constructed to use at least twenty percent (20%) less potable water than the indoor water use baseline calculated for the building after satisfying the fixture performance requirement, if any, under the Arkansas Plumbing Code; and (2) Outdoor potable water or harvested groundwater consumption shall use water-useefficient landscape materials and irrigation strategies, including without limitation water reuse and recycling, to reduce conventional consumption by at least fifty percent (50%) of the water that would have been consumed otherwise. (d) If the Arkansas Energy Office or the institution of higher education determines the American Society of Heating, Refrigerating, and Air-Conditioning Engineers, Standard 90.1-2007 is not practicable for a major facility or major renovation, the Arkansas Energy Office or the institution of higher education shall determine a practicable alternative standard for the design and construction for that major facility or major renovation. (e) To verify the performance of a building component or system and ensure that design requirements are met upon completion of construction, building or system commissioning practices that are tailored to the size and complexity of the building and its system components shall be employed. (f) To measure and verify a major facility's performance under this section's standards: (1) A building level owner's meter for electricity, natural gas, fuel oil, and water shall be installed in accordance with the guidelines issued by the United States Department of Energy under § 103 of the Energy Policy Act of 2005, Pub. L. No. 109-58; and (2)(A) The public agency or institution of higher education and the building designers shall: (i) Compare metered data from the first twelve (12) months of the building's operation with the energy design target; and (ii) Report the performance results of that comparison to the Arkansas Energy Office or to the governing board of the institution of higher education. (B) If the report under subdivision (f)(2)(A)(ii) of this section shows that the building's average energy or water consumption over the one-year period after the date of beneficial occupancy is more than the baseline consumption determined in accordance with the Performance Rating Method of Appendix G of the American Society of Heating, Refrigerating, and Air-Conditioning Engineers, Standard 90.1-2007, as it existed on January 1, 2009, the designer, the owner public agency or the owner institution of higher education, the contractor, the contract manager at risk, and the commissioning agent shall: (i) Investigate; 12096859.2 (ii) Determine the cause for the failure to achieve this section's performance standards; and (iii) Recommend corrections or modifications to meet this section's performance standards. § 22-3-2005. Purchase of a constructed or renovated building (a) A public agency shall not purchase a building that: (1) Did not meet the design and construction standards that were applicable for a comparable building at the time of its construction; or (2) Had a major renovation that did not meet the standard for energy and water efficiency that was applicable for a comparable building at the time of the major renovation. (b) This section does not apply to: (1) The purchase of a building that has historic, architectural, or cultural significance; (2) A building that is acquired by devise or gift; or (3) A building that is purchased for demolition. § 22-3-2006. Program to manage energy usage of public agencies (a) The Arkansas Energy Office shall: (1) Develop an energy program to manage energy, water, and other utility uses for public agencies that will reduce total energy consumption per gross square foot for all existing state buildings by twenty percent (20%) by 2014 and thirty percent (30%) by 2017 based on energy consumption for the 2007-2008 fiscal year if the savings can be justified by a life-cycle cost analysis; and (2) Update this program annually. (b) To implement its plan, the Arkansas Energy Office shall to the extent funds are available: (1) Develop and implement policies, procedures, and standards to ensure that a public agency's purchasing practices: (A) Improve the efficiency of energy, water, and other utility uses; and (B) Consider the cost of the product over its economic life; (2)(A) Adopt and implement building energy design guidelines for public agencies that include without limitation: (i) Energy-use goals and standards; 12096859.2 (ii) Economic assumptions for life-cycle cost analysis; and (iii) Other criteria for building systems and technologies. (B) The Arkansas Energy Office shall modify the design criteria for the construction or the renovation of the facilities of a public facility to require the conducting of a life-cycle cost analysis; (3) Identify and recommend energy conservation maintenance and operating procedures that: (A) Are designed to reduce energy consumption within the public facility; and (B) Require no significant expenditure of funds; (4) Require the maximum interchangeability and compatibility of equipment components when energy management equipment is proposed for any facility of a public agency; and (5)(A) Develop an energy audit and a procedure for conducting an energy audit. (B)(i) Within five (5) years after June 30, 2011, each public agency occupying a stateowned building shall complete an energy audit using American Society of Heating, Refrigerating and Air-Conditioning Engineers audit procedures and report the findings to the Arkansas Energy Office. (ii) The level of the energy audit in subdivision (b)(5)(B)(i) of this section shall be consistent with the condition of each public facility. (C) When conducting an energy audit under this subdivision (b)(5), the Arkansas Energy Office shall identify and recommend any public facility that is suitable for: (i) Building commissioning to reduce energy consumption within the facility; or (ii) Installing an energy savings measure under a guaranteed energy savings contract. (c) The Arkansas Energy Office may adopt architectural and engineering standards to implement this section. (d) A public agency shall: (1) Develop and implement, to the extent funds are available, an energy management plan to manage its energy, water, and other utility uses that is consistent with the Arkansas Energy Office's energy management program developed under this section; (2) Update its management plan annually, including without limitation strategies for supporting the energy consumption reduction requirements under subsection (a) of this section; 12096859.2 (3) Submit annually by October 31 to the Arkansas Energy Office a written report of the public agency's utility consumption and costs by fuel; (4) Carry out the construction and renovation of a facility in a manner that: (A) Furthers the goals under this section; and (B) Ensures the use of life-cycle cost analyses and practices to conserve energy, water, and other utilities; and (5) Implement the Arkansas Energy Office's recommendations made under subdivision (b)(1) of this section, to the extent funds are available. § 22-3-2007. Application to historic and unique buildings This subchapter does not apply if the implementation of a measure to conserve energy, water, or other utility use conflicts with the requirements for: (1) A property to be eligible for, nominated to, or entered on the National Register of Historic Places under the National Historic Preservation Act of 1966, Pub. L. No. 89-665; (2) An historic building located within an historic district; (3) An historic building listed, owned, or under the jurisdiction of an historic properties commission; or (4) A building that the Arkansas Energy Office has exempted from this subchapter because of its unique architectural characteristics or usage. § 22-3-2008. Advisory committee for the Arkansas Energy Office of the Arkansas Economic Development Commission (a)(1) The Director of the Arkansas Energy Office shall create a sustainable, energy-efficient building advisory committee composed of: (A) Representatives from the design and construction industry who are involved in public works contracting; (B) Persons from public agencies who are responsible for overseeing public works projects or for developing energy efficiency programs and policies; and (C) Other persons that the director considers to have useful information. (2) Advisory committee members shall serve at the pleasure of the director. (b) The committee shall provide advice on the implementation of this subchapter, including without limitation recommendations regarding: 12096859.2 (1) An education and training process for persons who are involved in the implementation of this subchapter; (2) An ongoing evaluation or feedback process to help the Arkansas Energy Office to implement this section; and (3) Water-deficiency requirements and energy-efficiency requirements. § 22-3-2009. Rules (a) The Arkansas Energy Office shall: (1) Adopt rules for the implementation of operation and maintenance energy conservation measures in a public building; and (2) Develop or revise the Arkansas Energy Office's architectural and engineering standards to provide assistance in determining: (A) Which energy conservation measures are best suited to the unique characteristics of each building; and (B) The specifications for the energy conservation measures under this subchapter; and (3) Adopt rules for the development of education and training requirements for the various personnel that may be involved in a major facility or a major renovation under this subchapter. (b) The Arkansas Energy Office may adopt: (1) Rules to implement this subchapter; and (2) Architectural or engineering standards as needed to implement this section. § 22-3-2010. Performance review—Report (a) The Arkansas Energy Office, to the extent funds are available, shall conduct a performance review of the Sustainable Energy-Efficient Buildings Program that includes at least the following: (1) An identification of the costs of implementing energy-efficient and water-efficient building standards in the design and construction of a major facility or major renovation; (2) An identification of the operating savings attributable to the implementation of energyefficient and water-efficient building standards, including without limitation savings in energy, water, utility, and maintenance costs; (3) An identification of any impact on employee productivity from the application of the standards under this subchapter; and 12096859.2 (4) An evaluation of the effectiveness of the application of the standards under this subchapter. (b) No later than December 1, 2010, and each year thereafter, the Arkansas Energy Office and each institution of higher education shall report to the cochairs of the Legislative Council its: (1) Findings under subsection (a) of this section; and (2) Recommended changes, if any. § 22-3-2011. Applicability (a) The boards of trustees for the University of Arkansas, Arkansas State University, the University of Central Arkansas, Henderson State University, Arkansas Tech University, and Southern Arkansas University are exempt from the provisions of this subchapter if those institutions develop policies and procedures to meet the specific performance criteria and goals for a major facility or major renovation. (b)(1) The board of trustees of any institution of higher education that is not included under subsection (a) of this section may be exempted from the provisions of this subchapter by the Department of Higher Education. (2) Before granting an exemption to a board of trustees of an institution of higher education under subdivision (b)(1) of this section, the department shall review and approve the policies and procedures to meet the specific performance criteria and goals for a major facility or major renovation. (c) This subchapter does not: (1) Preclude an institution of higher education from adopting the policies and technical guidelines for a major facility or a major renovation that are established by the Arkansas Energy Office under § 22-3-2003(b)(1); or (2) Affect the processes or exemptions under § 22-6-601. 12096859.2 California (back to top) § 15814.30. New buildings; cost-effective energy efficiency measures, materials and devices (a) All new public buildings for which construction begins after January 1, 1993, shall be models of energy efficiency and shall be designed, constructed, and equipped with all energy efficiency measures, materials, and devices that are feasible and cost-effective over the life of the building or the life of the energy efficiency measure, whichever is less. (b) In determining which energy efficiency measures, materials, and devices are feasible and cost-effective over the life of the building, the State Architect and the Department of General Services shall consult with the State Energy Resources Conservation and Development Commission. (c) For purposes of this section, “cost-effective” means that savings generated over the life of the building or the life of the energy efficiency measure, whichever is less, shall exceed the cost of purchasing and installing the energy efficiency measures, materials, or devices by not less than 10 percent. § 15814.31. Retrofitting to meet minimum standards All existing public buildings, when renovated or remodeled, shall be retrofitted to meet the minimum standards, consistent with subdivision (d) of Section 2-5301 of Title 24 of the California Code of Regulations (California Building Code), established pursuant to Division 15 (commencing with Section 25000) of the Public Resources Code applicable to the building. § 15814.32. Meters and technologies to measure energy use (a) Any new public building for which construction begins after January 1, 1992, shall include meters or other technologies to measure the energy used at the building. (b) The Department of General Services shall develop and submit to the Legislature on or before December 1, 1992, a plan under which energy use at existing individual public buildings can be identified accurately. § 15814.33. Leases; review; report On or before July 1, 1992, the Department of General Services, in conjunction with the State Energy Resources Conservation and Development Commission, shall do the following: (a) Review the standard leases used by the state and shall adopt revisions to the standard leases which are designed to maximize energy savings in buildings leased by the state. (b) Submit to the appropriate policy committees of the Legislature a report that identifies ways to improve energy efficiency in buildings leased by the state. The report shall assess the 12096859.2 prevalence of revisions to state building leases during lease negotiations, which result in reduced energy savings or increased energy use and shall recommend ways to minimize these revisions. § 15814.34. Findings and declarations; duties of department; identification and purchase of commodities with lowest life-cycle costs (a) The Legislature finds and declares all of the following: (1) The state purchases a number of commodities, including, but not limited to, lighting fixtures, heating, ventilation and air-conditioning units, and copiers, that cumulatively account for a significant portion of the energy consumed by state operations. (2) The state can realize significant energy savings and reduced energy costs by purchasing brands or models of commonly used commodities with low life cycle costs. (3) Commodities necessary for state operations may be purchased directly by the state department or agency using the commodity, or may be purchased by the Department of General Services on behalf of other state departments or agencies. (4) In order to increase energy efficiency and reduce costs to the taxpayers of the state, the state should make every reasonable effort to identify and purchase those commodities that have the lowest life cycle cost and meet the operational requirements of the state. (b) The Department of General Services shall, on an ongoing basis, do all of the following: (1) Identify commodities purchased by the department that, individually or on a statewide basis, consume a significant amount of energy. (2) For each commodity identified pursuant to paragraph (1), determine the life cycle cost of the following: (A) The brand or model of the commodity purchased by the department. (B) The brand or model of the commodity that has the lowest life cycle cost, provided it is available for purchase by the state and meets all operational specifications of the state. (3) Consult with the Energy Resources Conservation and Development Commission in the development and revision of one or more methods of determining the life cycle costs of commodities. (c) In order to assist other agencies and departments in identifying commodities with the lowest life cycle costs, the Department of General Services shall distribute the following to all state agencies and departments: (1) A list of those commodities with the lowest life cycle costs, as determined pursuant to paragraph (2) of subdivision (b). 12096859.2 (2) The method or methods used by the Department of General Services to determine the life cycle costs of commodities. (d) The method or methods used by the Department of General Services to calculate the life cycle costs of commodities shall be designed to be easily understood and used by purchasing agents and other personnel in making purchasing decisions. (e) Notwithstanding any other provision of law, all state agencies and departments shall purchase those commodities identified pursuant to subdivision (b) that have the lowest life cycle costs and that meet the applicable specifications, and shall make every reasonable effort to identify and purchase other commodities with the lowest life cycle costs. (f) “Life cycle cost” for the purposes of this section, means the total cost of purchasing, installing, maintaining, and operating a device or system during its reasonably expected life. It includes, but is not necessarily limited to, capital costs, labor costs, energy costs, and operating and maintenance costs. § 15814.35. Application of chapter; minimum costs The energy efficiency provisions of this chapter apply only to those public buildings in which energy costs exceed ten thousand dollars ($10,000) per year. § 15814.40. Use of life cycle cost analysis model in evaluating cost-effectiveness of state building design and construction decisions and impact over a facility's life cycle; financing and project delivery mechanisms (a) The Department of General Services shall define a life cycle cost analysis model that shall be used to evaluate the cost-effectiveness of state building design and construction decisions and their impact over a facility's life cycle, no later than July 1, 2007. (b)(1) The State Energy Resources Conservation and Development Commission, in consultation with the Department of General Services and the Treasurer's office, shall identify and develop appropriate financing and project delivery mechanisms to facilitate state building energy and resource efficient projects. These mechanisms shall include the use of the life cycle cost analysis model as described in subdivision (a), and shall maximize the use of outside financing, including, but not limited to, loan programs, revenue bonds, municipal tax-exempt leases, and other financial instruments supported by project savings, and minimize the use of General Fund moneys for these purposes. In addition, the commission, in consultation with these entities and with representatives from the commercial building construction industry, shall do both of the following: (A) Identify obstacles to private sector commercial building energy and resource efficient projects. 12096859.2 (B) Identify and recommend financial or other incentives to facilitate private sector commercial building energy and resource efficient projects. (2) The commission shall report its findings and recommendations made pursuant to paragraph (1) to the Green Action Team by January 1, 2008. (c) For purposes of this section, the “Green Action Team” means the interagency team established to further the goals of Executive Order S-20-04. EDUCATION CODE SECTION 81620-81624 81620. This article shall be known, and may be cited, as the Statewide Energy Management Program. 81621. The definitions set forth in this section govern the construction of this article: "Commission" means the State Energy Resources Conservation and Development Commission. "Energy independence" means the utilization of existing and developing technologies to meet energy needs onsite, including, but not necessarily limited to, the utilization of solar, fuel cells, and other renewable and clean onsite energy sources, the optimization of the use of daylighting, the use of passive solar orientation, and the use of construction techniques that minimize energy loss, such as appropriate insulation and lighting fixtures. "Energy management plans" means the plans that community colleges develop with guidance from the Statewide Energy Management Program to implement energy efficiency projects such as sustainable green buildings, renovations, and wind or solar farms that will move the community colleges toward energy independence. "Program" means the Statewide Energy Management Program, established under this article, which is a state program modeledafter the Federal Energy Management Program. "Renewable or other distributed energy systems" means alternative efficient sources of energy such as daylighting, photovoltaic panels (rooftops or solar farms), passive solar heating, fuel cells, and steam. Diesel-fueled electric generating systems are not included in this definition. "Sustainable green building" means a building that has been designed to reduce both direct and indirect environmental consequences associated with construction, occupancy, operation, maintenance, and eventual decommissioning, and whose design is evaluated for cost, quality of life, future flexibility, ease of maintenance, energy and resource efficiency, and overall environmental impact, with an emphasis on life-cycle cost analysis. 12096859.2 81622. (1) In Executive Order D-16-00, issued August 2, 2000, Governor Davis directed state agencies to design and construct buildings that incorporate energy efficiency, resource conservation, and renewable technologies. In his State of the State Address delivered on January 8, 2001, Governor Davis expressed his support for the goal of moving the California Community Colleges toward energy independence. The Federal Energy Management Program, upon which the State Energy Management Program is modeled, has resulted in approximately four dollars ($4) in savings for every one dollar ($1) spent. The federal investment of two billion dollars ($2,000,000,000) in energy efficiency has resulted in savings of six billion three hundred million dollars ($6,300,000,000) on energy bills. In consultation with the commission, the Board of Governors of the California Community Colleges shall further develop and refine certain guidelines for a Statewide Energy Management Program that have been established under an ongoing joint effort of the commission and DeAnza College. This statewide effort shall allow community college districts to achieve energy independence through the development of energy management plans, the construction of sustainable green buildings, the use of renewable or other distributed energy systems, and the expansion of statewide energy education programs and services. By 2010, the program shall, at a minimum, facilitate the completion of 20 district energy management plans, 15 renewable or other distributed energy systems, and three sustainable green buildings on community college campuses statewide. In consultation with the commission, the board of governors shall accomplish all of the following: Review and comment on academic, occupational, and vocational education materials developed by the commission, the Electric Power Research Institute, public utilities, and the community colleges to improve energy education programs and services. Review and recommend actions regarding successful energy education programs and services that can be identified for replication, personnel exchanges, or implementation of successful practices. Review and recommend actions regarding program resources for use by the community colleges or state agencies in improving energy education programs and services. Review exemplary programs and facilities, and recommend activities for adoption, replication, or policy advice. Review, comment, and recommend actions regarding services that will effect energy conservation. 12096859.2 Review and comment on funding requests received to improve or enhance energy education. Review and comment on occupational and vocational training programs and services to meet current employment standards in energy occupations. 81623. The board of governors shall encourage the construction of community college sustainable green buildings that implement energy efficiency, sustainable building concepts, and solar electric, fuel cell, and other technologies. On the effective date of this article, the board of governors shall immediately seek a prototype sustainable green community college instructional building that can be a model for all new construction and retrofit projects statewide. 81624. The Chancellor of the California Community Colleges shall establish an advisory committee for the Statewide Energy Management Program, and determine the membership of that committee. The advisory committee, with technical assistance from the commission, shall make recommendations to the chancellor regarding overall program development, resource development and deployment, and strategies for implementation and coordination of the program. A leadership role on this committee shall initially be provided by the staff of the commission and DeAnza College who have been involved since 1992 in a joint effort to promote training, energy efficiency, and energy independence in the California Community Colleges. This leadership role shall rotate to other community colleges as they complete their own district energy management plans. EXECUTIVE ORDER EXECUTIVE ORDER S-20-04 by the Governor of the State of California WHEREAS, the Energy Action Plan adopted by the state’s energy agencies places conservation and energy efficiency first in the loading order of energy resources because they are the least expensive and most environmentally protective resources; and WHEREAS, commercial buildings use 36 percent of the state’s electricity and account for a large percentage of greenhouse gas emissions, raw materials use and waste; and WHEREAS, the U.S. Green Building Council’s Leadership in Energy and Environmental Design (LEED), the nation’s leading green building rating system, promotes “high performance” building practices; energy, water and materials conservation; environmentally preferred products and practices; improvements in employee health, comfort and productivity; and reductions in facility operation costs and environmental impacts; and WHEREAS, electricity costs for California’s commercial and institutional buildings exceed $12 billion per year, and cost-effective efficiency practices outlined in this Order can save more than $2 billion per year; and 12096859.2 WHEREAS, the state’s own buildings consume over $500 million of electricity per year, and the measures outlined in this Order can save California taxpayers $100 million per year; and WHEREAS, high-performance schools also reduce energy and resource consumption, while creating safer and healthier learning environments; and WHEREAS, investments in energy efficiency measures provide high returns on investment and boost California’s economy, creating more jobs, local spending and tax revenue. NOW, THEREFORE, I, ARNOLD SCHWARZENEGGER, Governor of the State of California, by virtue of the power vested in me by the Constitution and statutes of the State of California, do hereby order effective immediately: 1. That the state commit to retrofitting, building and taking all cost-effective facilities owned, funded schools to do the same. aggressive action to reduce state building electricity usage by operating the most energy and resource efficient buildings by measures described in the Green Building Action Plan for or leased by the state and to encourage cities, counties and 2. That state agencies, departments, and other entities under the direct executive authority of the Governor cooperate in taking measures to reduce grid-based energy purchases for state-owned buildings by 20% by 2015, through cost-effective efficiency measures and distributed generation technologies; these measures should include but not be limited to: 2.1. Designing, constructing and operating all new and renovated state-owned facilities paid for with state funds as “LEED Silver” or higher certified buildings; and 2.2. Identifying the most appropriate financing and project delivery mechanisms to achieve these goals; and 2.3. Seeking out office space leases in buildings with a U.S. EPA Energy Star rating; and 2.4. Purchasing or operating Energy Star electrical equipment whenever costeffective. 3. The Division of the State Architect in the Department of General Services should adopt guidelines by December 31, 2005, to enable and encourage schools built with state funds to be resource and energy efficient. 4. That the California Public Utilities Commission (CPUC) is urged to apply its energy efficiency authority to support a campaign to inform building owners and operators about the compelling economic benefits of energy efficiency measures; improve commercial building efficiency programs to help achieve the 20% goal; and submit a biennial report 12096859.2 to the Governor commencing in September 2005, on progress toward meeting these goals. 5. That the California Energy Commission (CEC) propose by July 2005, a benchmarking methodology and building commissioning guidelines to increase energy efficiency in government and private commercial buildings. 6. That the CEC undertake all actions within its authority to increase efficiency by 20% by 2015, compared to Titles 20 and 24 non-residential standards adopted in 2003; collaborate with the building and construction industry state licensing boards to ensure building and contractor compliance; and promptly submit its report as per Assembly Bill 549 (Statutes of 2001) on strategies for greater energy and peak demand savings in existing buildings. 7. The California Public Employees Retirement System and State Teachers Retirement System are requested to target resource efficient buildings for real estate investments and commit clean technology funds to advanced sustainable and efficiency technologies. 8. Other entities of state government not under the Governor’s direct executive authority, including the University of California, California State University, California Community Colleges, constitutional officers, legislative and judicial branches, and CPUC, are requested to actively participate in this effort. 9. Nothing in this Order shall be construed to confer upon any state agency decision-making authority over substantive matters within another agency’s jurisdiction, including any informational and public hearing requirements needed to make regulatory and permitting decisions. 10. Commercial building owners are also encouraged to take aggressive action to reduce electricity usage by retrofitting, building and operating the most energy and resource efficient buildings by taking measures described in the Green Building Action Plan. 11. This Order is not intended to, and does not create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its departments, agencies, or other entities, its officers or employees, or any other person. 12. That as soon as hereafter possible, this Order shall be filed with the Office of the Secretary of State and that widespread publicity and notice shall be given to this Order. 12096859.2 IN WITNESS WHEREOF I have here unto set my hand and caused the Great Seal of the State of California to be affixed this the fourteenth day of December 2004. /s/ Arnold Schwarzenegger Governor of California 12096859.2 Colorado (back to top) 24-30-1301. Definitions. As used in this part 13, unless the context otherwise requires: (1)(a) “Capital asset” means: (I) Real property; (II) Fixed equipment; (III) Movable equipment; or (IV) Instructional or scientific equipment with a cost that exceeds fifty thousand dollars; except that “capital asset” does not include instructional or scientific equipment purchased by a state institution of higher education if the institution uses moneys other than those appropriated pursuant to section 24-75-303. Instructional or scientific equipment does not include information technology. (b) “Capital asset” does not mean information technology. All information technology budget requests must be presented as set forth in section 2-3-1704(11), C.R.S. (2) “Capital construction” means: (a) Acquisition of a capital asset or disposition of real property; (b) Construction, demolition, remodeling, or renovation of real property necessitated by changes in the program, to meet standards required by applicable codes, to correct other conditions hazardous to the health and safety of persons which are not covered by codes, to effect conservation of energy resources, to effect cost savings for staffing, operations, or maintenance of the facility, or to improve appearance; (c) Site improvement or development of real property; (d) Installation of the fixed or movable equipment necessary for the operation of new, remodeled, or renovated real property, if the fixed or movable equipment is initially housed in or on the real property upon completion of the new construction, remodeling, or renovation; (e) Installation of the fixed or movable equipment necessary for the conduct of programs in or on real property upon completion of the new construction, remodeling, or renovation; (f) Contracting for the services of architects, engineers, and other consultants to prepare plans, program documents, life-cycle cost studies, energy analyses, and other studies associated with capital construction and to supervise the construction or execution of such capital construction; or (g) Deleted by Laws 2014, Ch. 309, § 6, eff. June 6, 2014. (3) “Capital renewal” means a controlled maintenance project of real property or more than one integrated controlled maintenance projects of real property with costs exceeding two million dollars in a fiscal year and that is more cost effective or better addressed by corrective repairs or replacement to the real property rather than by limited fixed equipment repair, replacement, or smaller individual controlled maintenance projects. 12096859.2 (4) “Controlled maintenance” means: (a) Corrective repairs or replacement, including improvements for health, life safety, and code requirements, used for existing real property; and (b) Corrective repairs or replacement, including improvements for health, life safety, and code requirements, of the fixed equipment necessary for the operation of real property, when such work is not funded in a state agency's or state institution of higher education's operating budget. (c) “Controlled maintenance” may include contracting for the services of architects, engineers, and other consultants to investigate conditions and prepare recommendations for the correction thereof, to prepare plans and specifications, and to supervise the execution of such controlled maintenance projects as provided through an appropriation by the general assembly. (5) “Department” means the department of personnel. (6) “Economic life” means the projected or anticipated useful life of real property. (7) “Executive director” means the executive director of the department of personnel. (8) “Facility” means a state-owned building or utility. “Facility” does not include highways or publicly assisted housing projects as defined in section 24-32-718. (9) “Fixed equipment” includes, but is not limited to, mechanical, electrical, or plumbing components built into real property that are necessary for the operation of the real property. (10) Deleted by Laws 2014, Ch. 309, § 6, eff. June 6, 2014. (11) “Initial cost” means the required cost necessary to construct or renovate a facility. (12) “Life-cycle cost” means the cost alternatives, over the economic life of a facility, including its initial cost, replacement costs, and the cost of operation and maintenance of the facility, such as energy and water. (13) “Movable equipment” means: (a) All equipment that is not defined as fixed equipment that is necessary for the conduct of a program in or on real property; (b) The rolling stock and fixed stock necessary for running a state-owned railway; and (c) Aircraft as defined in section 43-10-102(1), C.R.S., that is used for state purposes. (14) “Principal representative” means the governing board of a state agency or state institution of higher education, or the governing board's designee, or, if there is no governing board, the executive head of a state agency or state institution of higher education, as designated by the governor or the general assembly, or such executive head's designee. (15)(a) “Real property” means a facility, state-owned grounds around a facility, a campus of more than one facility and the grounds around such facilities, state-owned fixtures and improvements on land, and every state-owned estate, interest, privilege, tenement, easement, right-of-way, and other right in land, legal or equitable, but not including leasehold interests. (b) “Real property” does not include: (I) Land or any interest therein acquired by the department of transportation and used, or intended to be used, for right-of-way purposes; 12096859.2 (II) Land or any interest therein held by the division of parks and wildlife and the parks and wildlife commission in the department of natural resources; and (III) Public lands of the state or any interest therein that are subject to the jurisdiction of the state board of land commissioners. (16) “State” means the government of this state, every state agency, and every state institution of higher education. “State” does not include a county, municipality, city and county, school district, special district, or any other kind of local government organized pursuant to law. (17) “State agency” means any department, commission, council, board, bureau, committee, office, agency, or other governmental unit of the state. (18) “State institution of higher education” means a state institution of higher education as defined in section 23-18-102(10), C.R.S., and the Auraria higher education center created in article 70 of title 23, C.R.S. 24-30-1304. Life-cycle cost - legislative findings and declaration. (1) The general assembly hereby finds: (a) That state-owned real property has a significant impact on the state's consumption of energy; (b) That energy conservation practices adopted for the design, construction, and utilization of this real property will have a beneficial effect on the state's overall supply of energy; (c) That the cost of the energy consumed by this real property over the life of the real property must be considered, in addition to the initial cost of constructing such real property; and (d) That the cost of energy is significant, and facility designs must take into consideration the total life-cycle cost, including the initial construction cost, the cost, over the economic life of the real property, of the energy consumed, replacement costs, and the cost of operation and maintenance of the real property, including energy consumption. (2) The general assembly declares that it is the policy of this state to insure that energy conservation practices are employed in the design of state-owned real property. To this end the general assembly requires all state agencies and state institutions of higher education to analyze the life-cycle cost of all real property constructed or renovated, over its economic life, in addition to the initial construction or renovation cost. 24-30-1305. Life-cycle cost - application - high performance standards - report. (1) The general assembly authorizes and directs that state agencies and state institutions of higher education shall employ design and construction methods for real property under their jurisdiction, in such a manner as to further the policy declared in section 24-30-1304, insuring that life-cycle cost analyses and energy conservation practices are employed in new or renovated real property. 12096859.2 (2) The life-cycle cost analysis must include but not be limited to such elements as: (a) The coordination, orientation, and positioning of the facility on its physical site; (b) The amount and type of fenestration employed in the facility; (c) Thermal performance and efficiency characteristics of materials incorporated into the facility design; (d) The variable occupancy and operating conditions of the facility, including illumination levels; and (e) Architectural features which affect energy consumption. (3) The life-cycle cost analysis performed for real property with a facility of twenty thousand or more gross square feet with significant energy demands must provide but not be limited to the following information: (a) The initial estimated cost of each energy-consuming system being compared and evaluated; (b) The estimated annual operating cost of all utility requirements, including consideration of possible escalating costs of energy. The department may rely on any national or locally appropriate fuel escalating methodology approved by the department in performing life-cycle cost analyses. (c) The estimated annual cost of maintaining each energy-consuming system; (d) The average estimated replacement cost for each system expressed in annual terms for the economic life of the facility; (e) The use of biofuel to provide supplemental or exclusive heating, power, or both for the facility. For a renovation of such a facility, the cost analysis regarding the use of biofuel must consider any stranded utility costs; and (f) An energy consumption analysis of such real property's heating, ventilating, and air conditioning system, lighting system, and all other energy-consuming systems. The energy consumption analysis of the operation of energy-consuming systems in the real property should include but not be limited to: (I) The comparison of two or more system alternatives; (II) The simulation or engineering evaluation of each system over the entire range of operation of the real property for a year's operating period; and (III) The engineering evaluation of the energy consumption of component equipment in each system considering the operation of such components at other than full or rated outputs. (4) The life-cycle cost analysis shall be certified by a licensed architect or professional engineer, or by both architect and engineer, particularly qualified by training and experience for the type of work involved. (5) In order to protect the integrity of historic buildings, no provision of section 24-30-1304 or this section should be interpreted to require such analysis with respect to any real property eligible for, nominated to, or entered in the national register of historic places, designated by statute, or included in an established list of places compiled by the state historical society. 12096859.2 (6) Selection of the optimum system or combination of systems to be incorporated into the design of real property must be based on the life-cycle cost analysis over the economic life of the real property, unless a request for an alternative system is made and approved by the department prior to beginning construction. (7) The principal representatives of all state agencies and state institutions of higher education are responsible for implementing the provisions of this section and the policy established in section 24-30-1304. (8) The provisions of section 24-30-1304 and this section shall not apply to municipalities or counties nor to any agency or department of any municipality or county. (9) Repealed by Laws 2014, Ch. 378, § 71, eff. June 6, 2014. (10) As used in this section, unless the context otherwise requires: (a) “Biofuel” means nontoxic plant matter consisting of agricultural or silvicultural crops or their byproducts, urban wood waste, mill residue, slash, or brush. (b) “Energy consumption analysis” means the evaluation of all energyconsuming systems and components by demand and type of energy, including the internal energy load imposed on real property by its occupants, equipment, and components and the external energy load imposed on the real property by climatic conditions. § 24-38.5-201. Legislative declaration (1) The general assembly hereby finds and declares that: (a) An incentive-based green building pilot program will strive to reduce electricity, gas, and water use in older homes while providing an incentive for homebuyers to purchase new residential construction that meets stringent energy efficiency standards; (b) Providing incentives for new residential construction that meets stringent energy efficiency standards and improving energy efficiency in existing residences can stimulate local and state economies and provide opportunities for job growth in green jobs and industries that are focused on improving energy efficiency of both new and existing residences; and (c) An incentive-based green building pilot program will benefit homebuyers who are attempting to purchase highly energy efficient new residential construction and retrofit existing homes in an attempt to reduce energy and water consumption. § 24-38.5-202. Definitions As used in this part 2, unless the context otherwise requires: (1) “Energy code” means the 2006 international energy conservation code, or any successor edition, published by the international code council or any state or local energy code that has more recent or more stringent requirements. (2) “Energy efficiency improvement” means: 12096859.2 (a) An upgrade to a structure, appliance, fixture, plumbing, heating or cooling system, or water heater in any existing residence that is intended to reduce the consumption of electricity, natural gas, water, or any other fuel or energy source; and (b) The installation or upgrade of building insulation, air sealing measures, and duct sealing in any existing residence. (3) “Existing residence” means a residence, either single-family detached or multi-family, that: (a) Is located in Colorado; (b) Is used as the qualified homebuyer's primary residence; and (c) Has a current home energy rating, as determined by a recognized green building rating system, that is below minimum standards, as determined by the energy code. (4) “Green building incentive pilot program” or “pilot program” means the green building incentive pilot program described in section 24-38.5-203. (5) “Highly efficient new residential construction” means a new single-family detached residence or new multi-family residence located in Colorado that is designed and constructed to be at least twenty-five percent more efficient than the energy code's requirements, as documented by a recognized green building rating system. (6) “Home energy audit” means an inspection, survey, and analysis of a home's structure and systems in order to quantify the building's projected energy consumption. (7) “Home energy rating” means an objective and standard measurement of a home's energy efficiency relative to standards contained in an energy code, such as those developed by the residential energy services network or any successor organization. (8) “Qualified homebuyer” means a person that has entered into a sales contract to purchase highly efficient new residential construction and will be selling the person's existing residence in order to purchase the highly efficient new residential construction as the person's primary residence. (9) “Recognized green building rating system” means a system of rules for comparing the performance of a whole building or building system to the energy code, to a problem, or to a test case that serves as a basis for evaluation or comparison. “Recognized green building rating system” includes, but is not limited to: (a) The federal energy star program, jointly operated by the United States environmental protection agency and the United States department of energy, or its successor program; (b) The January 2008 version, or any successor standard, of the “LEED for Homes Rating System” administered by the United States green building council or its successor organization; (c) The national green building standard, commonly cited as ANSI/ICC 700-2008, established by the national association of home builders and the international council code, or any successor standard; and (d) Energy audits that are performed by the electric utility, or its designee, providing service to the residence. § 24-38.5-203. Green building incentive pilot program (1) Except as provided in paragraph (b) of subsection (9) of this section, the Colorado energy office shall establish and administer a green building incentive pilot program in accordance with the requirements established in this part 2. 12096859.2 (2)(a) A qualified homebuyer may submit an application, provided by the Colorado energy office, to the Colorado energy office for a grant to make energy efficiency improvements to the homebuyer's existing residence that the homebuyer is selling in preparation for purchasing a highly efficient new residential construction. (b) The Colorado energy office shall award a larger grant to a qualified homebuyer with an existing residence that has a home energy rating or home energy audit showing greater inefficiency. (3) The energy efficiency improvements shall be performed by contractors approved by the Colorado energy office as specified in subsection (6) of this section. (4) The Colorado energy office shall require the qualified homebuyer to submit documentation: (a) That the home energy rating of the qualified homebuyer's existing residence is below the energy code's requirements; (b) That the qualified homebuyer has entered into a sales contract to purchase a highly efficient new residential construction; (c) Of the estimated completion date of the qualified homebuyer's highly efficient new residential construction; (d) Of the name or names of the contractors that will perform the energy efficiency improvements on the existing residence; and (e) That the highly efficient new residential construction meets the definition specified in section 24-38.5-202(5). The qualified homebuyer may seek such documentation from the home builder, who may then submit the documentation on behalf of the qualified homebuyer. (5) Energy efficiency improvements made to an existing residence shall be completed in a manner that is consistent with a home energy rating or a home energy audit, and shall result in improved energy efficiency. Retrofits and upgrades to improve the energy efficiency of a qualified homebuyer's existing residence shall be completed before the closing of the sale of the residence. (6) The Colorado energy office shall create a list of contractors eligible to perform energy efficiency improvements to a qualified homebuyer's existing residence. (7) In order to confirm that the qualified homebuyer met the requirements of the pilot program, the qualified homebuyer shall submit to the Colorado energy office copies of closing documentation for the highly efficient new residential construction no later than thirty days after the construction is complete. If construction is delayed and not completed by the estimated completion date, the Colorado energy office may grant a waiver or extension for submission of this documentation. (8) If the purchase of the highly efficient new residential construction is not finalized for any reason, including but not limited to the cancellation of the sale by the qualified homebuyer or the failure of the qualified homebuyer to secure financing, the qualified homebuyer shall reimburse the total amount of the grant to the Colorado energy office within thirty days after such cancellation or failure. (9)(a) Funding for the pilot program shall be provided from federal funds transferred to the Colorado energy office that the Colorado energy office has already received prior to August 10, 2011, or may receive after August 10, 2011. The Colorado energy office may require additional documentation or information from the qualified homebuyer as required to secure any additional federal funds. 12096859.2 (b) The Colorado energy office shall not establish the pilot program set forth in this part 2 if federal funds are not available. § 30-28-211. Energy efficient building codes--legislative declaration--definitions (1) The general assembly hereby finds and declares that there is statewide interest in requiring an effective energy efficient building code for the following reasons: (a) Excessive energy consumption creates effects beyond the boundaries of the local government within which the energy is consumed because the production of power occurs in centralized locations. (b) Air pollutant emissions from energy consumption affect the health of the citizens throughout Colorado. (c) The strain on the grid from peak electric power demands is not confined to jurisdictional boundaries. (d) There is statewide interest in the reliability of the electrical grid and an adequate supply of heating oil and natural gas. (e) Controlling energy costs for residents and businesses furthers a statewide interest in a strong economy and reducing the cost of housing in Colorado. (2) As used in this section, unless the context otherwise requires: (a) “Building code” means regulations related to energy performance, electrical systems, mechanical systems, plumbing systems, or other elements of residential or commercial buildings. (b) “Energy code” means, at a minimum, the 2003 international energy conservation code, or any successor edition, published by the international code council or any other code determined by the Colorado energy office created in section 24-38.5-101, C.R.S., to be more appropriate for local conditions. (c) “Office” means the Colorado energy office created in section 24-38.5-101, C.R.S. (3) Within one year of July 1, 2007, every board of county commissioners that has enacted a building code pursuant to section 30-28-201 shall adopt an energy code that shall apply to the construction of, and renovations and additions to, all commercial and residential buildings in the county to which the building code applies. (4) The energy code shall apply to any commercial or residential building in the county for which a building permit application is received subsequent to the adoption of the energy code. (5) The following buildings are exempt from the provisions of subsection (4) of this section: (a) Any building that is otherwise exempt from the provisions of the building code adopted by the board of county commissioners of the county in which the building is located and buildings that do not contain a conditioned space; (b) Any building that does not use either electricity or fossil fuels for comfort heating. A building will be presumed to be heated by electricity even in the absence of equipment used for electric comfort heating if the building is provided with electrical service in excess of one hundred amps, unless the code enforcement official of the county determines that the electrical service is necessary for a purpose other than for providing electric comfort heating. 12096859.2 (c) Historic buildings that are listed on the national register of historic places or Colorado state register of historic properties and buildings that have been designated as historically significant or that have been deemed eligible for designation by a local governing body that is authorized to make such designations; and (d) Any building that is exempt pursuant to the energy code. (6) Notwithstanding any other provision of this section, the board of county commissioners of a county that is required to adopt an energy code may make any amendments to the energy code that the board deems appropriate for local conditions, so long as the amendments do not decrease the effectiveness of the energy code. (7)(a) The office shall ensure that information explaining the requirements of the energy code and describing acceptable methods of compliance is available to builders, designers, engineers, and architects. (b) The office shall provide boards of county commissioners with technical assistance concerning the implementation and enforcement of the energy code. D 005 05 EXECUTIVE ORDER GREENING OF STATE GOVERNMENT Pursuant to the authority vested in the Office of the Governor of the State of Colorado, I, Bill Owens, Governor of the State of Colorado, hereby issue this Executive Order concerning enhancing the efficiency and greening of state government. 1. Background and Need State government needs to operate as efficiently as possible, but at the same time it is important to set an example through efforts to reduce the use of limited resources, increase the cost effectiveness of state government, and improve Colorado’s environment and the health of our children and future generations. Accordingly, the State of Colorado is committed to business practices that contribute to the mutually compatible goals of economic vitality, a healthy environment and strong communities. The State has already taken significant steps in this direction, particularly under Executive Order D 014 03, Energy Performance Contracting to Improve State Facilities. The Department of Corrections through its Energy Management Program avoids $1.8 million in annual costs (10 percent of its utility budget) and is planning additional facility improvements that could result in avoided annual costs exceeding $1 million. The Department of Human Services through its aggressive program to manage its $5.3 million annual utility budget achieved a 10 percent level of cost avoidance and is implementing projects through performance contracts that will avoid an additional $1,000,000 in annual utility costs. The Department of Personnel and Administration, with the Judicial Department and the Department of Labor & Employment, is using performance contracting for a large-scale, comprehensive effort that captures $800,000 in annual reductions to pay for $14 million in facility upgrades. Other state agencies including the Department of Military Affairs, Colorado School for the Deaf and the Blind, Department of Public Health and Environment, and Department of Natural Resources are implementing similar projects. 12096859.2 Within state government, such sustainable practices require decisions based on a systematic evaluation of the costs and long-term impacts of an activity or product on health and safety, communities, and the environment and economy of the State of Colorado. State agencies, through changes in daily operations, ongoing programs, and long-range planning, are able to simultaneously have a significant positive impact on the environment, economic efficiency of state government, and the character of our communities. Government can also foster markets for emerging environmental technologies and products. Finally, state government can be a model for environmental leadership by implementing pollution prevention and resource conservation programs that not only enhance environmental protection, but also save taxpayers’ money through reduced costs, including reduced material costs, waste disposal costs and utility bills. The most effective manner for state government to implement such programs is through the establishment of systems and procedures to evaluate costs and manage environmental impacts. This system should be developed and implemented consistently across state government with the assistance of the Governor’s Office of Energy Management and Conservation, Department of Public Health and Environment and Department of Personnel and Administration. 2. Directive A. B. 12096859.2 I hereby direct the Executive Directors of all state agencies and departments to evaluate their current business operations in accordance with the goals of this Order and develop and implement policies and procedures to promote environmentally sustainable and economically efficient practices, including, but not limited to: i. Adopting the United States Green Buildings Council’s Leadership in Energy and Environmental Design Green Building Rating System for Existing Buildings (LEED -EB) in operating, maintaining and managing existing buildings, to the extent applicable and practicable. ii. Incorporating LEED for New Construction (LEED-NC) practices to design energy and resource efficient new buildings, to the extent that this is deemed cost effective. iii. Initiating an energy management program to monitor and manage utility usage and costs, as resources become available. I hereby direct the Executive Directors of the Governor’s Office of Energy Management and Conservation, Department of Public Health and Environment, and Department of Personnel and Administration, to establish a Colorado Greening Government Coordinating Council (Council) to include representatives from each state agency and department. C. I hereby direct the Council to develop, implement, and augment programs, plans and policies that save money, prevent pollution and conserve natural resources throughout state government management and operations, including but not limited to source and waste reduction, energy efficiency, water conservation, recycling, fleet operations, environmental preferable purchasing, and establishing state-wide goals to save taxpayers’ money and reduce environmental impacts. D. I hereby direct State agencies and departments to provide all reasonable assistance and cooperation requested by the Council for the purpose of carrying out this order. E. I hereby direct each State agency or department to annually submit to the Council a list of all projects implemented in accordance with this Executive Order in the previous calendar year and the resultant environmental benefits and cost savings. To assist agencies in this effort, the Governor’s Office of Energy Management and Conservation offers technical services to all State departments and agencies. 3. Duration This Executive Order shall remain in force until further modification or rescission by the Governor. GIVEN under my hand and the Executive Seal of the State of Colorado, this 15th day of July, 2005. Bill Owens Governor 12096859.2 Connecticut (back to top) Sec. 16a-38k. Building construction standards for new construction of certain state facilities. (a) Notwithstanding any provision of the general statutes, any (1) new construction of a state facility that is projected to cost five million dollars, or more, and for which all budgeted project bond funds are allocated by the State Bond Commission on or after January 1, 2008, (2) renovation of a state facility that is projected to cost two million dollars or more, of which two million dollars or more is state funding, approved and funded on or after January 1, 2008, (3) new construction of a facility that is projected to cost five million dollars, or more, of which two million dollars or more is state funding, and is authorized by the General Assembly pursuant to chapter 1731 on or after January 1, 2009, and (4) renovation of a public school facility as defined in subdivision (18) of section 10–282 that is projected to cost two million dollars or more, of which two million dollars or more is state funding, and is authorized by the General Assembly pursuant to chapter 173 on or after January 1, 2009, shall comply with or exceed compliance with the silver building rating of the Leadership in Energy and Environmental Design's rating system for new commercial construction and major renovation projects, as established by the United States Green Building Council, or an equivalent standard, including, but not limited to, a two-globe rating in the Green Globes USA design program the regulations described in subsection (b) of this section until the regulations described in subsection (b) (c) of this section are adopted. The Commissioner of Energy and Environmental Protection, in consultation with the Commissioner of Administrative Services and the Institute for Sustainable Energy, shall exempt any facility from complying with said the regulations adopted pursuant to subsection (b) or (c) of this section if the Commissioner of Energy and Environmental Protection, in consultation with the Secretary of the Office of Policy and Management, finds, in a written analysis, that the cost of such compliance significantly outweighs the benefits the measures needed to comply with the building construction standards are not cost effective, as defined in subdivision (8) of subsection (a) of section 16a–38. Nothing in this section shall be construed to require the redesign of any new construction of a state facility that is designed in accordance with the silver building rating of the Leadership in Energy and Environmental Design's rating system for new commercial construction and major renovation projects, as established by the United States Green Building Council, or an equivalent standard, including, but not limited to, a two-globe rating in the Green Globes USA design program, provided the design for such facility was initiated or completed prior to the adoption of the regulations described in subsection (b) of this section. (b) Not later than January 1, 2007, the Commissioner of Energy and Environmental Protection, in consultation with the Commissioner of Administrative Services, shall adopt regulations, in accordance with the provisions of chapter 54,2 to adopt state building construction standards that are consistent with or exceed the silver building rating of the Leadership in Energy and Environmental Design's rating system for new commercial construction and major renovation projects, as established by the United States Green Building Council, including energy standards that exceed those set forth in the 2004 edition of the American Society of Heating, Ventilating and Air Conditioning Engineers (ASHRAE) Standard 90. 1 by no not less than twenty per cent, or an equivalent standard, including, but not limited to, a two-globe rating in the Green Globes 12096859.2 USA design program, and thereafter update such regulations as the Commissioner of Energy and Environmental Protection deems necessary. (c) Not later than January 1, 2015, the Commissioner of Energy and Environmental Protection, in consultation with the Commissioner of Administrative Services, shall adopt regulations, in accordance with chapter 54, to adopt state building construction standards for facilities described in subsection (a) of this section that achieve at least seventy-five points on the United States Environmental Protection Agency's national energy performance rating system, as determined by said agency's Energy Star Target Finder tool. Such regulations shall include a standard for inclusion of electric vehicle charging stations. The Commissioner of Energy and Environmental Protection may update such regulations as the commissioner deems necessary. (d) The Commissioner of Energy and Environmental Protection, in consultation with the Commissioner of Administrative Services and the Institute for Sustainable Energy, shall exempt any facility from complying with the regulations adopted pursuant to subsection (c) of this section if such facility cannot be defined as an eligible building type, as determined by the Energy Star Target Finder tool. Any such exempt facility shall exceed the energy building construction standards set forth in the 2007 edition of the American Society of Heating, Ventilating and Air Conditioning Engineers (ASHRAE) Standard 90.1 by not less than twenty per cent, or adhere to the current State Building Code, whichever is more stringent. § 12-217mm. Tax credit for green buildings. Regulations. (a) As used in this section: (1) “Allowable costs” means the amounts chargeable to a capital account, including, but not limited to: (A) Construction or rehabilitation costs; (B) commissioning costs; (C) architectural and engineering fees allocable to construction or rehabilitation, including energy modeling; (D) site costs, such as temporary electric wiring, scaffolding, demolition costs and fencing and security facilities; and (E) costs of carpeting, partitions, walls and wall coverings, ceilings, lighting, plumbing, electrical wiring, mechanical, heating, cooling and ventilation but “allowable costs” does not include the purchase of land, any remediation costs or the cost of telephone systems or computers; (2) “Brownfield” has the same meaning as in section 32-760; (3) “Eligible project” means a real estate development project that is designed to meet or exceed the applicable LEED Green Building Rating System gold certification or other certification determined by the Commissioner of Energy and Environmental Protection to be equivalent, but if a single project has more than one building, “eligible project” means only the building or buildings within such project that is designed to meet or exceed the applicable LEED Green Building Rating System gold certification or other certification determined by the Commissioner of Energy and Environmental Protection to be equivalent; (4) “Energy Star” means the voluntary labeling program administered by the United States Environmental Protection Agency designed to identify and promote energy-efficient products, equipment and buildings; 12096859.2 (5) “Enterprise zone” means an area in a municipality designated by the Commissioner of Economic and Community Development as an enterprise zone in accordance with the provisions of section 32-70; (6) “LEED Accredited Professional Program” means the professional accreditation program for architects, engineers and other building professionals as administered by the United States Green Building Council; (7) “LEED Green Building Rating System” means the Leadership in Energy and Environmental Design green building rating system developed by the United States Green Building Council as of the date that the project is registered with the United States Green Building Council; (8) “Mixed-use development” means a development consisting of one or more buildings that includes residential use and in which no more than seventy-five per cent of the interior square footage has at least one of the following uses: (A) Commercial use; (B) office use; (C) retail use; or (D) any other nonresidential use that the Secretary of the Office of Policy and Management determines does not pose a public health threat or nuisance to nearby residential areas; (9) “Secretary” means the Secretary of the Office of Policy and Management; and (10) “Site improvements” means any construction work on, or improvement to, streets, roads, parking facilities, sidewalks, drainage structures and utilities. (b) For income years commencing on and after January 1, 2012, there may be allowed a credit for all taxpayers against any tax due under the provisions of this chapter for the construction or renovation of an eligible project that meets the requirements of subsection (c) of this section, and, in the case of a newly constructed building, for which a certificate of occupancy has been issued not earlier than January 1, 2010. (c) (1) To be eligible for a tax credit under this section a project shall: (A) Not have energy use that exceeds (i) seventy per cent of the energy use permitted by the state building code for new construction, or (ii) eighty per cent of the energy use permitted by the state energy code for renovation or rehabilitation of a building; and (B) use equipment and appliances that meet Energy Star standards, if applicable, including, but not limited to, refrigerators, dishwashers and washing machines. (2) The credit shall be equivalent to a base credit as follows: (A) For new construction or major renovation of a building but not other site improvements certified by the LEED Green Building Rating System or other system determined by the Commissioner of Energy and Environmental Protection to be equivalent, (i) eight per cent of allowable costs for a gold rating or other rating determined by the Commissioner of Energy and Environmental Protection to be equivalent, and (ii) ten and one-half per cent of allowable costs for a platinum rating or other rating determined by the Commissioner of Energy and Environmental Protection to be equivalent; and (B) for core and shell or commercial interior projects, (i) five per cent of allowable costs for a gold rating or other rating determined by the Commissioner of Energy and Environmental Protection to be equivalent, and (ii) seven per cent of allowable costs for a platinum rating or other rating determined by the Commissioner of Energy and Environmental Protection to be equivalent. There shall be added to the base credit one-half of one per cent of allowable costs for a development project that is (I) a mixed-use development, (II) located in a 12096859.2 brownfield or enterprise zone, (III) does not require a sewer extension of more than one-eighth of a mile, or (IV) located within one-quarter of a mile walking distance of publicly available bus transit service or within one-half of a mile walking distance of adequate rail, light rail, streetcar or ferry transit service, provided, if a single project has more than one building, at least one building shall be located within either such distance. Allowable costs shall not exceed two hundred fifty dollars per square foot for new construction or one hundred fifty dollars per square foot for renovation or rehabilitation of a building. (d) (1) The Secretary of the Office of Policy and Management may issue an initial credit voucher upon determination that the applicant is likely, within a reasonable time, to place in service property qualifying for a credit under this section. Such voucher shall state: (A) The first income year for which the credit may be claimed, (B) the maximum amount of credit allowable, and (C) the expiration date by which such property shall be placed in service. The expiration date may be extended at the discretion of the secretary. Such voucher shall reserve the credit allowable for the applicant named in the application until the expiration date. If the expiration date is extended, the reservation of the tax credit may also be extended at the discretion of the secretary. (2) The aggregate amount of all tax credits in initial credit vouchers issued by the secretary shall not exceed twenty-five million dollars. (3) For each income year for which a taxpayer claims a credit under this section, the taxpayer shall obtain an eligibility certificate from an architect or professional engineer licensed to practice in this state and accredited through the LEED Accredited Professional Program or other program determined by the Commissioner of Energy and Environmental Protection to be equivalent. Such certificate shall consist of a certification, under the seal of such architect or engineer, that the building, base building or tenant space with respect to which the credit is claimed, meets or exceeds the applicable LEED Green Building Rating System gold certification, or other certification determined by the Commissioner of Energy and Environmental Protection to be equivalent in effect at the time such certification is made. Such certification shall set forth the specific findings upon which the certification is based and shall state that the architect or engineer is accredited through the LEED Accredited Professional Program or other program determined by the Commissioner of Energy and Environmental Protection to be equivalent. (4) To obtain the credit, the taxpayer shall file the initial credit voucher described in subdivision (1) of this subsection, the eligibility certificate described in subdivision (3) of this subsection and an application to claim the credit with the Commissioner of Revenue Services. The commissioner shall approve the claim upon determination that the taxpayer has submitted the voucher and certification required under this subdivision. The applicant shall send a copy of all such documents to the secretary. (e) (1) A taxpayer may claim not more than a total of twenty-five per cent of allowable costs in any income year, and any percentage of tax credit that the taxpayer would otherwise be entitled to in accordance with subsection (c) of this section may be carried forward for a period of not more than five years. 12096859.2 (2) Tax credits are fully assignable and transferable. A project owner, including, but not limited to, a nonprofit or institutional project organization, may transfer a tax credit to a pass-through partner in return for a lump sum cash payment. (f) Notwithstanding any provision of the general statutes, any subsequent successor in interest to the property that is eligible for a credit in accordance with subsection (c) of this section may claim such credit if the deed transferring the property assigns the subsequent successor such right, unless the deed specifies that the seller shall retain the right to claim such credit. Any subsequent tenant of a building for which a credit was granted to a taxpayer pursuant to this section may claim the credit for the period after the termination of the previous tenancy that such credit would have been allowable to the previous tenant. (g) The Secretary of the Office of Policy and Management shall establish a uniform application fee, in an amount not to exceed ten thousand dollars, which shall cover all direct costs of administering the tax credit program established pursuant to this section. Said secretary may hire a private consultant or outside firm to administer and review applications for said program. (h) On or before July 1, 2013, the secretary, in consultation with the Commissioner of Revenue Services, shall prepare and submit to the Governor and the joint standing committees of the General Assembly having cognizance of matters relating to planning and development and finance, revenue and bonding, a written report containing (1) the number of taxpayers applying for the credits provided in this section; (2) the amount of such credits granted; (3) the geographical distribution of such credits granted; and (4) any other information the secretary deems appropriate. A preliminary draft of the report shall be submitted on or before July 1, 2012, to the Governor and the joint standing committees of the General Assembly having cognizance of matters relating to planning and development and finance, revenue and bonding. Such reports shall be submitted in accordance with the provisions of section 11-4a. (i) Not later than January 1, 2011, the secretary, in consultation with the Commissioner of Revenue Services, shall adopt regulations, in accordance with the provisions of chapter 541, as necessary to implement the provisions of this section. 12096859.2 Delaware (back to top) TITLE 29, CHAPTER 80., Subchapter II. The Delaware Energy Act § 8057. Green Energy Fund. The State Energy Office shall administer moneys in the Green Energy Fund, in consultation with other offices within Department of Natural Resources and Environmental Control (DNREC), the Delaware Economic Development Office and the Division of the Public Advocate, through a program of environmental incentive grants and loans for the development, promotion and support of energy efficiency programs and renewable or alternative energy technology in the State. The State Energy Office shall establish standards, procedures and regulations governing the administration of the Green Energy Fund which are not inconsistent with this subchapter. Up to 7.5% of the moneys deposited in the Green Energy Fund each year may be used for administration of the Fund, and an additional 2.5% of the moneys may be used for outreach activities including marketing, advertising and workshops. The goals which shall guide use of the Green Energy Fund include: Fostering use of energy efficient, renewable and environmentally friendly energy technologies throughout the State in the residential, commercial, industrial, public and agricultural sectors; Promoting research, development and demonstration projects in the fields of energy efficiency and renewable energy technologies; Advocating green public policy initiatives; Establishing and supporting education and public awareness programs; Pursuing community outreach programs; Supporting the development of green industries and generators in the State; Encouraging the construction, maintenance and operation of green buildings, schools and residential developments; and Creating market incentives for the pursuit of renewable energy resources by energy providers in the State. The Green Energy Fund shall be used for programs in Delaware including, but not limited to: 12096859.2 The Green Energy Endowment Program: The Green Energy Endowment Program shall provide cash grants from the Green Energy Fund to customers that have constructed, purchased, leased or who have executed a power purchase agreement for renewable energy technology and have placed such renewable energy technology in service. Any 1 cash grant for any 1 project shall be no more than is necessary to promote deployment of renewable energy technologies. The level of incentive shall be set by the Secretary, in consultation with the Sustainable Energy Utility Oversight Board, and may be amended from time to time to respond to market conditions. Persons eligible for cash grants under the Green Energy Endowment Program shall include: Persons in Delaware receiving services from Conectiv, or its successor, after the adoption of a restructuring plan pursuant to § 1005(a) of Title 26; and Persons in Delaware receiving services from a nonregulated electric supplier which is contributing to the Green Energy Fund. Grants made under the Green Energy Endowment Program shall not exceed 65% of all expenditures from the Green Energy Fund on an annual basis. Funds available for grants under the Green Energy Endowment Program will be allocated into a residential pool and a nonresidential pool on an annual basis. Sixty percent of the funds available for grants under the Green Energy Incentive Program will be allocated to the residential pool and 40% of the funds available for grants under the Green Energy Endowment Program will be allocated to the nonresidential pool. For all new Green Energy Endowment Program applicants who have not, as of July 28, 2010, received a commitment of funding from DNREC, must first, before applying for a grant under this program, conduct a home performance with Energy Star audit, using a Building Performance Institute or equivalent certification program trained professional, and identify costeffective energy efficiency projects. Newly constructed homes and commercial buildings must receive Energy Star certification or an equivalent third-party green building certification in order to receive funding under this program. The Technology Demonstration Program: The Technology Demonstration Program shall provide cash grants equal to 25% of the cost of a project which demonstrates the market potential of Renewable Energy Technology in Delaware, with no 1 grant for any 1 project to exceed $200,000. Grants made under the Technology Demonstration Program shall not exceed 25% of all expenditures from the Green Energy Fund on an annual basis. The Research and Development Programs: 12096859.2 Under the Research and Development Programs monies will be expended from the Green Energy Fund: To support qualifying research and graduate studies in Delaware in energy efficiency and renewable energy technologies; and To provide grants equal to no greater than 35% of the cost of project for the development of a product in Delaware directly related to Renewable Energy Technology, including but not limited to any product improving the engineering of, adapting or developing Renewable Energy Technology either as an independent piece of Renewable Energy Technology or as a component thereof, with no 1 grant for any one project to exceed $250,000. Grants made under the Research and Development Programs, in the aggregate, shall not exceed 10% of all expenditures from the Green Energy Fund on an annual basis. Solar Energy Curriculum Program. --The Solar Energy Curriculum Program shall provide cash grants from the Green Energy Fund to high schools in Delaware that are Delmarva Power customers and that create a course, or curriculum, that teaches the science, economics, policy, and hands-on installation of solar photovoltaic technology. Grants made under this program shall provide 100% funding for the installation of a solar photovoltaic system to be used as part of the qualifying school's solar energy curriculum. Total funding may not exceed $10,000 per school for solar equipment only, and shall not prevent the school from participating in the Green Energy Endowment Program. Green Energy Fund dollars committed to such installations shall not exceed $100,000 per year total. The Energy Office shall establish appropriate curriculum eligibility criteria before awarding any such grants. Unexpended Funds.- Any amount allocated to the Green Energy Endowment Program, the Technology Demonstration Program and the Research and Development Programs and not expended during a particular year shall be considered as part of the Green Energy Fund and available for allocation and expenditure in subsequent years. Provided the Controller General approves, annual funds collected and unused during 1 fiscal year that have been apportioned to the commercial sector in the Green Energy Endowment Program may be moved for use in the residential sector in following years to allow the Energy Office to satisfy application queues should they develop. The Secretary may, in the event the Endowment program described in paragraph (d)(1) of this section above is unable to keep pace with demand, indefinitely suspend the Technology Demonstration and Research and Development programs defined in paragraphs (d)(2) and (3) of this section and direct all available funds to the Green Energy Endowment Program until such time as any queue is eliminated and all applicants have received their authorized payment. Upon a finding by the Secretary, in consultation with the Sustainable Energy Utility Oversight Board, that the incentives provided for renewable energy technologies through the operation of the Delaware Renewable Energy Portfolio Standard as authorized under subchapter III-A, of Chapter 1, of Title 26, are substantially equivalent to or exceed those allowed under this chapter, the Secretary may, providing that all approved applicants receive payments offered under the Green Energy Endowment Program, suspend in part or in full, the Green Energy 12096859.2 Endowment Program, the Technology and Demonstration Program and/or the Research and Development Program under paragraphs (d)(1)-(3) of this section and reallocate revenues authorized under § 1014(a) of Title 26 to alternative incentive programs to promote energy efficiency and green building programs, renewable energy loan programs and incentive programs for nonprofit organizations. In the event the Secretary makes such a finding in consultation with the Sustainable Energy Utility Oversight Board, the Secretary shall provide to the Chairs of the House and Senate Energy Committees the Secretary's rationale for such a finding and a full description of the new program to be implemented. Incentives provided through the Green Energy Fund shall be exempt from taxation by the State and by the counties and municipalities of the State. Executive Order Eighteen - Leading By Example Towards A Clean Energy Economy & Sustainable Natural Environment February 17, 2010 TO: HEADS OF ALL STATE DEPARTMENTS AND AGENCIES RE: LEADING BY EXAMPLE TOWARDS A CLEAN ENERGY ECONOMY & SUSTAINABLE NATURAL ENVIRONMENT For more information, please see: Fact Sheet and Press Release WHEREAS, the transition to a cleaner energy, low-carbon economy and the importance of addressing climate change present Delaware with unprecedented challenges and opportunities to strengthen the State's economic competitiveness, create thousands of well-paying jobs, improve public health, protect the environment, and enhance the quality of life; and WHEREAS, an important part of the State's economic development strategy is advancing climate prosperity, through which companies and individuals can become more prosperous by seizing market opportunities in the State's emerging clean energy economy and using resources more efficiently; and WHEREAS, State government must lead by example as it works towards transforming Delaware into a national model clean energy economy built on economic growth, environmental protection, energy conservation and efficiency, renewable energy, cleaner transportation options, and sustainable buildings and operations; and WHEREAS, the State government faces significant budget challenges that require creative solutions to reduce and stabilize operating expenses, including reducing the more than $35 million expended annually on energy; and WHEREAS, the Governor's Energy Advisory Council has made numerous recommendations worthy of adoption, including the State of Delaware focusing on leading by example; and 12096859.2 WHEREAS, the steps identified in this order have the potential to reduce greenhouse gas emissions from State government operations and demonstrate that the adoption of responsible policies to minimize our impact on the environment can simultaneously reduce operating expenses and create a more efficient government; NOW, THEREFORE, I, JACK A. MARKELL, by virtue of the authority vested in me as Governor of the State of Delaware, do hereby DECLARE and ORDER that: Energy Conservation and Efficiency 1. All State executive branch agencies, departments and offices shall achieve, subject to funding opportunities and constraints, an overall collective reduction, from fiscal year 2008 levels, in energy consumption of at least 10% by the end of fiscal year 2011, 20% by the end of fiscal year 2013, and 30% by the end of fiscal year 2015. (a) All State executive branch agencies, departments and offices shall, as appropriate in both state-owned and state-leased buildings, reduce operating expenses through energy conservation practices, including but not limited to: Energy Conservation from Lighting, Appliances, and Computer Equipment (i.) Eliminating unnecessary lighting by turning off unused lights, reducing lighting in common areas, eliminating non-essential outdoor lighting taking into consideration safety and protection of individuals; (ii.) Eliminating the use of portable appliances* unless approved by a Cabinet Secretary or an agency's Sustainability Manager, as defined in Section 11 of this Order; (iii.) Following Green Computing Practices as outlined by the Department of Technology and Information ("DTI"), including but not limited to: 1. Enabling the power management tools on all personal computers in accordance with DTI guidelines; 2. Enabling, where possible, duplex printing (printing front and back of all pages) as the default for network printers; 3. Acquiring printers and copiers capable of duplex printing when appropriate; and 4. Formatting documents to reduce the number of printed pages when possible. (iv.) Evaluating additional activities that consume large amounts of energy and implement conservation measures to reduce consumption. Thermostat Controls (i.) Operating heating systems with temperature settings not to exceed 68 — 70 degrees during normal working hours. Lobby, corridor and restroom areas shall be kept at a temperature setting of 65 — 67 degrees during working hours if possible. Building entrances and storage areas shall be kept at a temperature setting of 60 — 62 degrees if possible. Temperature settings shall also not exceed 55 degrees in those facilities that are 12096859.2 unoccupied during the non-business hours of 6:00 p.m. to 7:00 a.m. workdays, as well as weekends and holidays. (ii.) Operating air conditioning no more than is necessary to maintain a temperature setting of 75 - 78 degrees during normal working hours. Lobby, corridor and restroom areas shall be kept at a temperature setting of 78 — 80 degrees during working hours if possible. In facilities that are unoccupied during non-business hours, weekends and holidays, the air conditioning temperature should be no less than is required to maintain the integrity and operation of the system. (iii.) Agencies can exempt specific facilities from these restrictions if such temperatures threaten life, health, or safety; however conservation measures shall be applied wherever systems permit. Additionally, any area that houses equipment requiring precise climate controlled conditions in order to operate efficiently shall also be exempt. (b) All State executive branch agencies, departments and offices shall pursue opportunities to reduce operating expenses further through energy efficiency or other measures: (i.) The Office of Management and Budget ("OMB"), in collaboration with the Department of Natural Resources and Environmental Control ("DNREC"), is directed to establish a system and procedures to benchmark, monitor and track the energy use and carbon emissions of all State-owned and State-leased facilities, and to make such data and tools available to agencies for their use in promoting energy conservation and greenhouse gas emission monitoring and reporting. The benchmarking system shall: 1. Require all State executive branch agencies, departments and offices that own or operate facilities to enter energy and utility usage and cost data into a tool or system provided by OMB and DNREC; 2. Require historic energy usage and cost data for the last two fiscal years to be compiled for all state-owned and state-leased facilities. The information will be used to rank each facility's energy usage and enable benchmarking against facilities of a similar age, size, construction and function; 3. Target facilities with the highest energy use and identify no or low-cost operational changes that can reduce consumption without capital investment; 4. Be used to prioritize energy efficiency and distributed renewable energy projects based on energy savings, cost savings and environmental benefit; 5. Quantify, on a facility-by-facility basis, the estimated cost and work necessary to reduce energy consumption by 10%, 20% and 30%; and 6. Evaluate the feasibility of installing on-site wind, photovoltaic, co-generation or other cleaner energy systems that can be 12096859.2 implemented using a simple payback period not to exceed 20 years. (ii.) OMB is further directed to work with DNREC, the Agency Sustainability Managers designated pursuant to Section 11 below, and in consultation with the Sustainable Energy Utility ("SEU"), in preparation of a plan to audit State facilities for energy efficiency opportunities. Said plan shall include a timetable for such audits and identify appropriate funding for energy efficiency projects, including resources from the American Recovery and Reinvestment Act, Regional Greenhouse Gas Initiative auction proceeds, and tax-exempt financing and other programs administered by the SEU. A preliminary plan is to be delivered to the Cabinet Committee on Energy by May 31, 2010. (iii.) Larger State facilities that utilize 50% or more of the aggregate energy used in State buildings shall be benchmarked by December 31, 2010, with the remainder completed by December 31, 2011. All reasonably available efficiency upgrades must be implemented before or coincident with investment in renewable energy technologies. Use of Clean, Renewable Energy 2. For buildings owned or operated by State executive branch agencies, the State shall target at least 20% of its overall annual electric energy demand from clean, renewable sources by the end of fiscal year 2012, and 30% of its overall annual electric energy demand from clean, renewable sources by the end of fiscal year 2013. (a) OMB, through statewide procurement of energy services, shall utilize procurement strategies that maximize clean and renewable energy purchases and minimize costs over the long term to achieve the targets within the limits of appropriations. OMB is further directed to maximize stabilization of energy costs through utilization of offshore wind energy as the resource is being developed. (b) All State executive branch agencies, departments and offices, in cooperation with OMB and DNREC, are further directed to maximize the use of local distributed renewable energy generation or other clean energy solutions at State facilities in helping to achieve the targets. OMB shall work with DNREC to assess State facilities and appropriate public lands for potential distributed generation sites and evaluate a wide-range of funding sources and mechanisms that maximize the State's return on investment. Environmentally Responsible and Energy Conscious Construction 3. The State shall integrate the U.S. Green Building Council's Leadership in Energy and Environmental Design ("LEED") practices into all new construction, renovation and the operation of state facilities, with a particular focus on integrating technologies and design/material/construction elements that generate lower long-term operating expenses. Throughout the project planning, building design, construction and operation phases of a project, state agencies, departments and offices shall incorporate best practices to reduce the environmental effects associated with capital improvements. State agencies, departments and offices shall work with architects and engineers working on the design 12096859.2 and construction of capital projects to design projects to meet or exceed LEED Silver standards. All projects will pursue that standard and third party certification unless it is determined that such certification cannot be done at a reasonable cost. To meet this goal, architects and engineers working on the design and construction of capital projects shall consider incorporation of the following goals into each project: (a) Maximize the incorporation of design elements and technologies to increase energy efficiency, improve indoor air quality, and reduce potable water usage. (b) Maximize the integration of renewable resources, as geothermal, solar, and wind, into new construction. (c) Manage stormwater on-site through green infrastructure best practices to prevent flooding, reduce water pollution, and promote aquifer recharge. (d) Reduce solid waste generation during construction and integrate recycled content materials. (e) Protect and enhance biodiversity, restore and preserve natural habitats, wetlands and agricultural lands, and withstand and adapt to climate change effects, including sea-level rise. (f) Integrate best land use practices into project design by modeling smart growth approaches to development, including supporting walkable and cyclable communities, prioritizing infill development close to existing infrastructure, ensuring access to public transit, and reducing urban heat island effects. Recycling 4. All State executive branch agencies, departments and offices shall reduce, reuse, and recycle materials to achieve a 50% rate of diverted waste from landfills by the end of fiscal year 2011, and a 75% rate of diverted waste from landfills by the end of fiscal year 2012, for office, construction and demolition debris and other state activities or wastes. Insofar as achievement of this standard is subject to current contractual obligations and funding constraints, it should be integrated into all future contractual arrangements. (a) The Agency Sustainability Managers designated pursuant to Section 11 below, with the aid of other staff as appropriate, shall jointly determine the appropriate base year and current diversion rates for achievement of these standards and shall report that information to the Cabinet Committee on Energy on or before May 31, 2010. Clean Transportation 5. All agencies shall improve air quality and reduce the operating expenses from State vehicle use with the goal of reducing, from fiscal year 2008 levels, petroleum consumption by 25%, vehicle emissions by 25%, and vehicle miles traveled by 15% by the end of fiscal year 2012. (a) To reduce energy consumption and air pollution, particularly ground-level ozone, resulting from State fleet vehicle usage, it shall be a priority of the State that, on and after March 1, 2010, new or replacement light duty cars and trucks purchased by State executive branch agencies, departments and offices shall be 12096859.2 hybrid vehicles, alternative fuel vehicles, high fuel economy or low-emission vehicles, except if such goal compromises public health, safety, or law enforcement needs. OMB shall annually prepare a life cycle cost analysis for fleet vehicle purchases, and that analysis shall take into consideration the external costs of fossil-fueled vehicles. (b) Develop procedures for diesel vehicles in the State fleet to use biodiesel of the highest percentage content practical. (c) State executive branch agencies, departments and offices shall implement measures to reduce the number of vehicle miles traveled and emissions from idling by State employees, to the extent feasible, in personal and fleet vehicles resulting from job-related travel. (d) State executive branch agencies shall also foster a work environment, to the extent feasible, which enables a voluntary reduction in employee commuting miles, including the promotion of car-pooling, van-pooling, telecommuting, and public transportation incentives. Environmentally Sensitive Procurement 6. OMB shall work with DNREC, DTI and the Department of Health and Social Services to develop an environmentally sensitive procurement policy for State executive branch agencies, departments and offices. The policy shall encourage such agencies, to the extent permitted by relevant law, to give appropriate consideration to use of environmentally preferable products and services, especially those that will improve the health and productivity of State employees. These products shall include, but not be limited to, goods that consist of fewer toxic substances, reduce the amount of toxic substances disposed or consumed, improve indoor air quality, contain recycled content, minimize waste, lessen the impact to public health, conserve energy, and/or conserve water. Examples include Energy Star rated appliances and technology equipment capable of utilizing recycled paper and duplex printing. OMB shall implement procurement preference programs favoring the purchase of these products and services. The policy shall be completed on or before August 30, 2010 and implemented as existing state contracts expire. Implementation 7. The Secretary of DNREC shall lead and direct the implementation of the Governor's energy agenda. In this capacity, the Secretary will lead the efforts of the Cabinet Committee on Energy as Chair, review, and implement as appropriate, the recommendations of the Governor's Energy Advisory Council, and oversee the State's involvement in the SEU. Further, all energy-related programs will be coordinated by DNREC, including the Weatherization Assistance Program and the Low-Income Home Energy Assistance Program, unless otherwise required by Delaware law. 8. The Cabinet Committee on Energy, established pursuant to 29 Del. C. § 8054, shall review the progress towards achieving the six goals and standards in this Order, identify and address any barriers to achievement of these goals and standards, and recommend any new goals for future years as may be necessary and desirable. 12096859.2 9. OMB, in coordination with DNREC and the Agency Sustainability Managers designated pursuant to Section 11 below, shall develop a program to educate State employees about strategies and tactics to achieve the six goals. The program shall emphasize the benefits to managing energy consumption in both the workplace and at home and shall be provided to the Cabinet Committee on Energy. 10. Each Cabinet Secretary shall report on a quarterly basis on the progress his or her agency has made towards the goals in this executive order. 11. Each Cabinet Secretary shall designate, by February 28, 2010, a sustainability manager tasked with coordinating with DNREC and OMB on program implementation and reporting. Agency Sustainability Managers shall coordinate their agency's activities in the areas described in this Order. 12. The progress of each executive branch agency, department and office shall be measured and top performers shall be considered for recognition by the Cabinet Committee on Energy. 13. The Agency Sustainability Managers shall collectively develop implementation guidelines for review by the Cabinet Committee on Energy, including recommendations to maximize the financial savings associated with the measures in this order. Said guidelines shall be developed by May 31, 2010. 14. Executive Order No. Eighty-Four, issued by Governor Michael N. Castle, is hereby rescinded. APPROVED this 17th day of February, 2010 12096859.2 District of Columbia (back to top) Division I. Government of District. Title 6. Housing and Building Restrictions and Regulations. (Refs & Annos) Chapter 14. Construction Codes. § 6-1412. Construction codes revisions for green building practices. By June 1, 2013, and at least once every 3 years thereafter, the Mayor, in consultation with the Green Building Advisory Council, shall submit to the Council, for approval, revisions to the Construction Codes that shall incorporate as many significant green building practices as practicable for the District of Columbia urban environment. The Mayor shall include as many green building provisions as practicable from the current versions of codes and standards published by the International Code Council. The Mayor may exclude provisions that are not practicable for the District of Columbia urban environment but shall provide evidence of cost or implementation impracticality for the excluded provisions; provided, that the Mayor is not required to consider codes or standards issued by the International Code Council within one year of the submittal date. Every 6 months after March 8, 2007, the Mayor shall provide a written report on the progress of the current round of Construction Codes revisions to the chairperson of the committee of the Council that oversees the District agency charged with the building permit function. The report accompanying the final Construction Codes revisions shall include a listing and description of each green building practice considered and why each practice was, or was not included, in the respective Construction Codes revision. By June 1, 2013, and after at least every 3 years by June 1 of the relevant year, the Mayor shall submit to the Council for approval Construction Codes revisions that are consistent with the requirements of this section, and that incorporate green building practices developed since the previous Construction Codes revisions. Division I. Government of District. Title 2. Government Administration. (Refs & Annos) Chapter 12. Business and Economic Development. Subchapter XIV. Economic Development Along the Anacostia Waterfront. Part B. Anacostia Waterfront Environmental Standards. § 2-1226.32. Definitions. (a) For the purposes of this part, the term: (1) “Applicant” shall have the same meaning as set forth in § 6-1451.01(2). (1A) “Complete stormwater management plan” means a plan, with required supporting documentation, that demonstrates compliance with each applicable stormwater management requirement, as determined by DDOE. (1B) “Current edition” shall have the same meaning as provided in § 6-1451.01 (8A) . (1C) “DDOE” means the District Department of the Environment. 12096859.2 (1D) “District-financed” or “District instrumentality-financed” shall have the same meaning as provided in § 6-1451.01(10A). (1E) “First building permit” shall have the same meaning as provided in § 6-1451.01(14A). (2) “Green Building Act” means chapter 14A of Title 6. (3) “LEED” shall have the same meaning as provided in § 6-1451.01 (26). (3A) “LEED standard for commercial and institutional buildings” shall have the same meaning as provided in § 6-1451.01 (31A). (4) “New construction” shall have the same meaning as set forth in § 6-1451.01(33). (5) “Project” shall have the same meaning as set forth in § 6-1451.01(35). (6) Repealed. (7) “Substantial improvement” shall have the same meaning as set forth in § 6-1451.01(40). Division I. Government of District. Title 2. Government Administration. (Refs & Annos) Chapter 12. Business and Economic Development. Subchapter XIV. Economic Development Along the Anacostia Waterfront. Part B. Anacostia Waterfront Environmental Standards. § 2-1226.34. Integrated environmental design standards. All projects subject to this part shall comply with the following integrated environmental design standards: (1) The applicant for the project shall engage in pre-development and on-going consultation with appropriate District officials to review the plans of the applicant to ensure compliance with the standards imposed by this part. (2) The applicant for the project shall retain a LEED-accredited professional or maintain an experienced LEED-accredited member on-staff. (3) The applicant for the project shall prepare and submit to the Mayor a sustainability plan as a component of the concept design package, which shall identify the project approach and elements used to satisfy the requirements of this part. The sustainability plan shall include an analysis of energy use, green building, site planning and preservation, and stormwater management. (4) The applicant for the project shall submit to the Mayor any draft or final checklists and other materials submitted to demonstrate LEED, Green Communities, and ENERGY STAR compliance. 12096859.2 Division I. Government of District. Title 2. Government Administration. (Refs & Annos) Chapter 12. Business and Economic Development. Subchapter XIV. Economic Development Along the Anacostia Waterfront. Part B. Anacostia Waterfront Environmental Standards. § 2-1226.35. Green building standards. (a) All projects subject to this section shall comply with the following green building standards: (1) Non-residential new construction or substantial improvement projects shall: (A) Fulfill or exceed the current edition of the LEED standard for commercial and institutional buildings at the gold level; (B) Fulfill or exceed the current edition of the LEED standard for commercial and institutional buildings at the gold level for improvements to interiors of new or existing non-residential buildings; (C) Comply with the ENERGY STAR requirements of the Green Building Act and, in addition: (i) Achieve 85 points on the Environmental Protection Agency national energy performance rating system; and (ii) Be designed to be 30% more energy efficient than required by ASHRAE 90.1 2004, or a later standard adopted by the Mayor pursuant to § 2-1226.41; and (D) Provide ENERGY STAR Benchmark and Target Finder scores and ENERGY STAR statements to the DDOE and the Department of Consumer and Regulatory Affairs “(DCRA”) within 60 days after the scores are generated; and (2)(A) Residential new construction and substantial improvement projects shall: (i) Fulfill or exceed the current edition of the LEED standard for commercial and institutional buildings at the silver level; and (ii) Achieve the ENERGY STAR label and be 30% more energy efficient than required by ASHRAE 90.1 2004, or such later standard adopted by the Mayor pursuant to § 2-1226.41; and (B) Residential new construction and substantial improvement projects may, if the project is a District-financed project that receives public financing for the purpose of assisting in the new construction or substantial rehabilitation of affordable housing, apply the Green Communities standards as an alternative to LEED for the affordable units within the project; provided, that the project shall achieve the ENERGY STAR label and be 30% more energy efficient than required by ASHRAE 90.1 2004, or a later standard adopted by the Mayor pursuant to § 2-1226.41. 12096859.2 (b) The Mayor shall encourage developers to seek to align the project design with the greenhouse gas reduction goals in the “2030 Challenge” as adopted by the American Institute of Architects and United States Conference of Mayors. (c) The DDOE, in coordination with the DCRA and other appropriate agencies shall, to the greatest extent practical, coordinate the implementation of the standards established by this section with implementation of the Green Building Act. Division I. Government of District. Title 6. Housing and Building Restrictions and Regulations. (Refs & Annos) Chapter 14A. Green Building Requirements. § 6-1451.01. Definitions. For the purposes of this chapter, the term: "Addition" has the same meaning as in § 6-1410(a)(1). “Applicant" means any individual, firm, limited liability company, association, partnership, government agency, public or private corporation, or other entity that submits construction documents for a building construction permit or verification. (2A) “Bond” means a financial instrument posted by an applicant, the proceeds of which shall be paid to the District in its entirety or in part, and deposited in the Green Building Fund, if the project fails to meet the standards required by §§ 6-1451.03 and 6-1451.06. "Building" means any structure used or intended for supporting or sheltering any use or occupancy. Repealed. "Building systems monitoring method" means the specifications for a methodology of collecting information and providing feedback about installed equipment that provide data for the comparison, management, and optimization of actual, as compared to estimated, energy performance. 12096859.2 (5A) “Certificate of occupancy” means the first certificate of occupancy issued for a usable, habitable space at grade or above grade. (5B) “Common space” means gross floor area within a project shared or available for common use by various occupancies within a project that includes both residential and nonresidential occupancies, including lobbies, corridors, stairways, amenity areas, laundry rooms, boiler rooms, furnace rooms, generator rooms, elevator hoistways, mechanical duct shafts, elevator machine rooms, off-street loading facilities, and off-street parking facilities at or above grade. "Construction Codes" means the standards and requirements adopted pursuant to Chapter 14 of this title. "Construction documents" has the same meaning as in § 6-1405.02(a)(1). "Construction permit application" has the same meaning as in § 6- 1410(a)(4). (8A) “Current edition” means the most recent and currently operative edition of a green building standard approved under § 6-1451.11(b). “DCRA” means the Department of Consumer and Regulatory Affairs."Director" means the Director of the Department of Consumer and Regulatory Affairs. (9A) “DDOE” means the District Department of the Environment. “Director” means the Director of the Department of Consumer and Regulatory Affairs. (10A) “District-financed” or “District instrumentality-financed” means: (A) Financing of a project or contract where funds or resources to be used for construction and development costs, excluding ongoing operational costs, are received from the District, or funds or resources which, in accordance with a federal grant or otherwise, the District administers, including a contract, grant, loan, tax abatement or exemption, land transfer, land disposition and development agreement, or tax increment financing, or any combination thereof; provided, that federal funds may be applied to the financing percentage only if permitted by federal law and grant conditions; or (B) Financing whose stated purpose is, in whole or in part, to provide for the new construction or substantial rehabilitation of affordable housing. "Educational facility" means any building that has the provision of education as its primary use. "ENERGY STAR Portfolio Manager" means the tool developed by EPA ENERGY STAR that rates the performance of a qualifying building, relative to similar buildings nationwide, accounting for the impacts of year-to-year weather variations, building size, location, and several operating characteristics, using the Environmental Protection Agency's national energy performance rating system. "ENERGY STAR Target Finder" means the tool developed by EPA ENERGY STAR that helps set performance goals and energy ratings for building projects during their design phase. "Existing building" has the same meaning as in § 6-1410(a)(8). (14A) “First building permit” means the first permit intended to cover the primary scope of work for a project; provided, that this shall not include 12096859.2 permit applications for raze, sheeting and shoring, foundation, or specialty, miscellaneous, or supplemental permits. "Full-building commissioning" means the process of verification that a building's energy related systems are installed, calibrated, and perform according to project requirements, design basis, and construction documents. The systems that require commissioning include mechanical and passive heating, ventilation, air conditioning, and refrigeration systems, and associated controls such as lighting, domestic hot water systems, and renewable energy systems. "GBAC" means the Green Building Advisory Council established by § 6- 1451.09. "Green building" means an integrated, whole-building approach to the planning, design, construction, operation, and maintenance of buildings and their surrounding landscapes that help mitigate the environmental, economic, and social impacts of buildings, so that they are energy efficient, sustainable, safe, cost-effective, accessible, healthy, and productive. "Green building checklist" means a scorecard developed by the USGBC for the purpose of calculating a score on the appropriate LEED rating system. Repealed. "Green Building Fund" or "Fund" means the Green Building Fund established by § 61451.07. "Green Communities" means the national green building program designed by Enterprise Community Partners that provides criteria for the design, development, and operation of affordable housing. "Gross floor area" has the same definition as found in section 199.1 of Title 11 of the District of Columbia Municipal Regulations (11 DCMR § 199.1). "HVAC&R" means mechanical and passive heating, ventilation, air conditioning, and refrigeration systems. "ICC" means the International Code Council, a nonprofit organization. "IECC" means the International Energy Conservation Code developed by the ICC. " LEED" means the series of Leadership in Energy and Environmental Design green building rating systems designed by the USGBC. Repealed. Repealed. " LEED-H" means the LEED for New Homes (LEED-H) green building rating system being designed by the USGBC. Repealed. 12096859.2 Repealed. (31A) “LEED standard for commercial and institutional buildings” means the green building rating system designed by the USGBC for Core & Shell, New Construction, Schools, and Retail: New Construction & Major Renovations. “Maintenance accountability method” means a system for maintaining building performance standards, including annual building performance reporting that publicly compares actual energy consumption to benchmarks using the ENERGY STAR Portfolio Manager tool for all building types for which it is available; the description of changes to operations and maintenance arrangements and procedures for major energy-consuming equipment; the maintenance of manuals, manufacturer's literature, model numbers, methods of operation, and maintenance practices for installed building systems; the records of metering systems and mechanisms for the monitoring and control of energy consumption; and the collection of complete “as-built” drawing sets and information on best practices for building maintenance, housekeeping, pest management, and mold prevention. (32A) “Mixed-use space” means demised space in any residential project that contains at least 50,000 contiguous square feet of gross floor area, exclusive of common space, that is or would be occupied for a nonresidential use. "New construction" means the construction of any building whether as a stand-alone building or an addition to an existing building. The term "new construction" includes new buildings and additions or enlargements of existing buildings, exclusive of any alterations or repairs to any existing portion of a building. (33A) “Nonresidential” means any project in which at least 50% of the gross floor area of the project, subject to allocation of area for common space, has nonresidential purposes. Repealed. "Project" means the construction of single or multiple buildings that are part of one development scheme, built at one time or in phases. "Property disposition by lease" means a lease, inclusive of options, of real property, as defined in § 10-801.01, for a period of greater than 20 years. "Property disposition by sale" means a sale of real property, as defined in § 10-801.01, in whole or in part, to the highest bidder for real property 10,000 square feet or more. Repealed. “Public school” means schools owned, operated, or maintained by the District of Columbia Public Schools (“DCPS”), or a public charter school, and those schools' educational facilities. 12096859.2 (39A) “Residential” means any project in which more than 50% of the gross floor area of the project, subject to allocation for common space, is used for residential purposes. “Substantial improvement” means any repair, alteration, addition, or improvement of a building or structure, the cost of which equals or exceeds 50% of the market value of the structure before the improvement or repair is started. "Total project cost" means the total of: Hard construction costs; Site acquisition costs; provided, that a site was acquired within 2 years of first building permit application; and Soft costs; provided, that the soft costs shall not exceed 25% of the hard construction costs. "USGBC" means the United States Green Building Council. "Verification" or "verified" means confirmation by an entity described in § 6-1451.04 that the green building requirements of this chapter have been fulfilled. Division I. Government of District. Title 6. Housing and Building Restrictions and Regulations. (Refs & Annos) Chapter 14A. Green Building Requirements. § 6-1451.02. Publicly-owned, leased, and financed buildings and projects. (1) This subsection shall apply to all new construction and substantial improvement of: Projects that are District-owned or District instrumentality-owned; and Projects where at least 15% of the total cost is District-financed or District instrumentality-financed. A nonresidential project shall: (i) Within 2 years after the receipt of a certificate of occupancy, be verified as having fulfilled or exceeded the current edition of the LEED standard for commercial and institutional buildings, at the silver level; provided, that a public school shall be verified as having fulfilled or exceeded the current edition of the LEED standard for commercial and institutional buildings, at the certification level; Notwithstanding sub-subparagraph (i) of this subparagraph, a public school shall be verified as having fulfilled or exceeded the current edition of the LEED standard for commercial and institutional buildings at the gold level or higher if sufficient funding for the construction or renovation is provided. 12096859.2 If the project is new construction of 10,000 square feet or more of gross floor area, and is a building type for which Energy Star® tools are available: Be designed to achieve 75 points on the EPA national energy performance rating system, as determined by the Energy Star® Target Finder Tool; Be annually benchmarked using the Energy Star® Portfolio Manager benchmarking tool; and (I) Make benchmark and Energy Star® statements of energy performance available to DDOE within 60 days of being generated. (II) Upon receipt, DDOE shall make the benchmark and Energy Star® statements available to the public via an online database accessible through the DDOE website; and Institute building systems monitoring and maintenance accountability methods upon receipt of a certificate of occupancy. If a residential project includes 10,000 square feet of gross floor area or more, the residential project shall: Fulfill or exceed the current edition of the Green Communities standard, or a substantially similar standard; and Submit to DCRA a copy of the standard's self-certification checklist and a verification of meeting the standard's requirements for energy efficiency, as part of the application for a certificate of occupancy. The requirements of this subsection shall apply: On or after October 1, 2007, for a District-owned or District instrumentality-owned project that was initially funded in the Fiscal Year 2008 District budget or later; On or after October 1, 2008, for a project on District-owned or District instrumentalityowned property, leased by a private entity as a result of a property disposition by lease, in Fiscal Year 2009 or later; and On or after October 1, 2008, for a privately-owned project if 15% or more of a project's total project cost was financed by the District or a District instrumentality in Fiscal Year 2009 or later. The Mayor shall, as a condition of the financing of a District-financed or District instrumentality-financed project governed by this subsection, include a penalty that will be levied upon an applicant for failure to fulfill the requirements of this chapter. The penalties may include: 12096859.2 Prohibiting the applicant from receiving additional District or District instrumentality financing for a period of up to 5 years; Assessing a fine as set forth in § 6-1451.05(f); or Imposing an alternative penalty commensurate with the seriousness of the applicant's failure to fulfill requirements of this chapter, as determined by the Mayor. An applicant for new construction or substantial improvement of a mixed-use space shall fulfill or exceed the current edition of the LEED standard for commercial and institutional buildings at the certified level for the mixed-use space of the project. Any requirements of § 61451.05 shall apply to the mixed-use space of the project. For the purposes of mixed-use space in this paragraph, the term: “LEED” also includes LEED for Commercial Interiors and LEED for Retail: Commercial Interiors; and “Certificate of occupancy” refers to the first certificate of occupancy issued for a usable, habitable space at grade or above grade for the mixed-use space of the project. (1) This subsection shall apply to all tenant improvements of District-owned or instrumentality-owned buildings. District On or after October 1, 2008, all tenants of District-owned or District instrumentalityowned building space shall obtain verification that the improved building space fulfills or exceeds the current edition of the LEED standard for commercial and institutional buildings, LEED for Commercial Interiors, or LEED for Retail: Commercial Interiors, at the certification level, if: The tenant improves at least 30,000 square feet gross floor area or more; The improvements involve a comprehensive construction or alteration of partitions, electrical systems, HVAC & R, and finishes; and The building space has a certificate of occupancy for a commercial use. (1) This subsection shall apply to all District, and District instrumentality, operated buildings. owned or Beginning January 20, 2009, the District shall benchmark 10 buildings owned or operated by the District using the Energy Star® Portfolio Manager benchmarking tool. Beginning October 22, 2009, the District shall annually benchmark all District, and District instrumentality, owned or operated buildings, using the Energy Star® Portfolio Manager benchmarking tool, if the building: Has at least 10,000 square feet of gross floor area; and 12096859.2 Is a building type for which Energy Star® benchmarking tools are available. Benchmark and Energy Star® statements of energy performance for each building shall be made available to DDOE within 60 days of being generated. Upon receipt, DDOE shall make the benchmark and Energy Star® statements available to the public via an online database accessible through the DDOE website. Division I. Government of District. Title 6. Housing and Building Restrictions and Regulations. (Refs & Annos) Chapter 14A. Green Building Requirements. § 6-1451.03. Privately-owned buildings. This section shall apply to all privately-owned buildings and projects with at least 50,000 square feet of gross floor area. (1) All new construction and substantial improvement of nonresidential projects, including projects involving real property acquired by a real property disposition by sale from the District or a District instrumentality to a private entity, and projects if less than 15% the project's total project cost was financed by the District or a District instrumentality, shall: Beginning January 1, 2009, as part of any building permit application, submit to DCRA a green building checklist documenting the green building elements to be pursued in the respective building's permit; and Be verified by an entity described in § 6-1451.04 as having fulfilled or exceeded the current edition of the LEED standard for commercial and institutional buildings at the certification level within 2 years of the receipt of a certificate of occupancy; provided, that a public school shall be verified as having fulfilled or exceeded the current edition of the LEED standard for commercial and institutional buildings at the gold level or higher if sufficient funding for the construction or renovation is provided. This subsection shall apply as of: January 1, 2010, for a project involving real property acquired by a real property disposition by sale, from the District or a District instrumentality to a private entity, that has submitted an application for the first building permit on or after January 1, 2010; and January 1, 2012, for a project that has submitted an application for the first building permit on or after January 1, 2012. The area of common space in a project shall be allocated to either residential or nonresidential square footage of a project based upon the percentage of gross floor area of the project occupied by each of the residential and nonresidential occupancies calculated after excluding the area of common space. 12096859.2 An applicant for new construction or substantial improvement of a mixed-use space shall fulfill or exceed the current edition of the LEED standard for commercial and institutional buildings at the certified level for the nonresidential portion of the project. Any requirements set forth in § 6-1451.05 shall apply to the mixed-use space of the project. For the purposes of mixeduse space in this paragraph, the term: “LEED” also includes LEED for Commercial Interiors and LEED for Retail: Commercial Interiors; and “Certificate of occupancy” refers to the first certificate of occupancy issued for a usable, habitable space at grade or above grade for the mixed-use space of the project. (1) This subsection shall apply to all buildings and projects that are of a for which Energy Star® tools are available. (A) The requirements for existing privately-owned buildings shall be building type as follows:. The owner or a designee of the owner shall annually benchmark the building using the Energy Star® Portfolio Manager benchmarking tool; and (I) Benchmark and Energy Star® statements of energy performance for each building shall be made available to DDOE by April 1 of the respective following year. In 2011 only, the scores and statements shall be made available to DDOE no later than July 1. (II) Upon receipt, DDOE shall make the benchmark and Energy Star® statements available to the public via an online database accessible through the DDOE website, beginning with the 2nd annual benchmarking data for each building. This paragraph shall apply as of: January 1, 2010, for a building with over 200,000 square feet of gross floor area; January 1, 2011, for a building with over 150,000 square feet of gross floor area; January 1, 2012, for a building with over 100,000 square feet of gross floor area; and January 1, 2013, for a building with over 50,000 square feet of gross floor area, or more. Benchmarking data required in this paragraph shall include water consumption data as incorporated in the Portfolio Manager Benchmarking Tool. A building owner or tenant who fails to timely, accurately, and completely submit the benchmarking information required by this paragraph to DDOE or to the building owner shall be assessed a penalty by DDOE of no more than $100 for each day during which the required submission has not been made. Civil infraction fines, penalties, and fees may be imposed as alternative sanctions for such failure, pursuant to Chapter 18 of Title 2. Adjudication of an 12096859.2 infraction shall be pursuant to Chapter 18 of Title 2. An applicant for new construction or substantial improvement of a project who submits the first building permit after January 1, 2012, shall, prior to construction, estimate the project's energy performance using the Energy Star® Target Finder Tool. Division I. Government of District. Title 6. Housing and Building Restrictions and Regulations. (Refs & Annos) Chapter 14A. Green Building Requirements. § 6-1451.04. Compliance review. The Mayor shall verify compliance with the requirements of this chapter as specified in §§ 61451.02 and 6-1451.03 through: An agency of the District government; or Third-party entities which meet criteria to be established by the Mayor by rulemaking within 180 days of March 8, 2007. The Mayor shall review the qualifications of each third-party entity approved under subsection (a)(2) of this section at least every 2 years to determine if the entity shall remain eligible to conduct the verifications required in §§ 6-1451.02 and 6-1451.03. Notwithstanding Chapter 5 of Title 2, for the purposes of establishing compliance with §§ 61451.02 and 6-1451.03, verification of a project shall be based upon the standards in effect one year prior to the applicant's first of the following interactions with the District: The approval of a land disposition agreement; The submission of an application to the Board of Zoning Adjustment for a variance or special exception relief; The submission of an application to the Zoning Commission for a planned unit development or other approval requiring Zoning Commission action; The submission of an application to the Historic Preservation Review Board or the Mayor's Agent for the Historic Preservation Review Board; or Other substantial land-use interactions with the District as defined through rulemaking by the Mayor. Verification that a project has complied with the requirements of this chapter shall not relieve an applicant of any obligations or liabilities otherwise existing under law and shall not relieve the District of its obligation to review all construction documents in the manner otherwise prescribed by law. An applicant may apply for verification of a project by the Mayor at any time. 12096859.2 Verification decisions by the Mayor shall be considered official interpretations of the requirements of this chapter and may be appealed by an applicant pursuant to subsection 112.1 of Title 12 of the District of Columbia Municipal Regulations (12 DCMR § 112.1). Division I. Government of District. Title 6. Housing and Building Restrictions and Regulations. (Refs & Annos) Chapter 14A. Green Building Requirements. § 6-1451.05. Financial Security. Beginning January 1, 2012, an applicant governed by § 6-1451.03(a) shall provide a financial security, which shall be due prior to receipt of a certificate of occupancy. (1) The financial security requirement of subsection (a) of this section may be fulfilled by: Evidence of cash deposited in an escrow account in a financial institution in the District in the name of the licensee and the District; An irrevocable letter of credit from a financial institution authorized to do business in the District; A bond secured by the applicant to ensure compliance with this section; or A binding pledge that within 2 years of receipt of the certificate of occupancy the applicant will fulfill or exceed the current edition of the LEED standard for commercial and institutional buildings at the certified level. (A) A binding pledge pursuant to paragraph (1)(D) of this subsection shall be recorded as a covenant in the land records of the District between the applicant and the District in a form that is satisfactory to the District's Attorney General or the Attorney General's delegate. The covenant shall bind the applicant and any successors in title to pay any fines levied pursuant to this section. If, within 2 years of receipt of the certificate of occupancy, the project provides evidence that it has fulfilled or exceeded the current edition of the LEED standard for commercial and institutional buildings at the certified level, a financial security previously provided by the applicant in the form of cash, an irrevocable letter of credit, or a bond shall be returned to the applicant. If, within 2 years of receipt of the certificate of occupancy, the project does not provide evidence that it has fulfilled or exceeded the current edition of the LEED standard for commercial and institutional buildings at the certified level, the Mayor shall, as applicable, either: Draw down on a financial security provided in the form of cash, an irrevocable letter of credit, or a bond, in whole, or in part; or 12096859.2 Levy a fine against an applicant that provided a financial security in the form of a binding pledge as set forth in subsection (f) of this subsection. A financial security in the form of cash, an irrevocable letter of credit, or a bond shall be calculated by square foot as set forth in subsection (f) of this section but shall be discounted by 20% of the amount of the fine described in subsection (f) of this section. A fine issued pursuant to subsection (d)(2) of this section shall be calculated as follows: In the amount of $7.50 per square foot of gross floor space if the project is less than 100,000 square feet of gross floor space. In the amount of $10 per square foot, if the project is at least 100,000 square feet of gross floor space. Beginning 4 years after receipt of the certificate of occupancy, the applicant shall pay a monthly fine of $0.02 per square foot to the District for failure to provide evidence that it has fulfilled or exceeded either the current edition of the LEED standard for commercial and institutional buildings at the certified level or the current edition of the LEED standard for Existing Buildings: Operations & Maintenance at the certified level. The monthly fines shall accumulate but shall be assessed annually. The fine described in paragraphs (1) and (2) of this subsection shall not exceed $3 million; provided, that an annual fine issued pursuant to paragraph (3) of this subsection shall not count toward the $3 million limit. The Mayor, for good cause, may issue time extensions to a project; provided, that the Mayor shall not grant more than 3, one-year extensions. Fines issued under this section shall be civil penalties. Substantial improvements shall be subject to the requirements of this section; provided, that only square feet included in a substantial improvement project shall be calculated for the purposes of a fine. The financial security option provided in subsection (b)(1)(C) of this section shall become effective upon the issuance of rules by the Mayor. Any payment made to the District for failure to meet the standards required by §§ 6-1451.02 and 6-1451.03 shall be deposited in the Green Building Fund. Division I. Government of District. Title 6. Housing and Building Restrictions and Regulations. (Refs & Annos) Chapter 14A. Green Building Requirements. § 6-1451.07. Green Building Fund. There is established a fund designated as the Green Building Fund, which shall be separate from the General Fund of the District of Columbia. All additional monies obtained pursuant to §§ 12096859.2 6-1451.05 and 6-1451.08, and all interest earned on those funds, shall be deposited into the Fund without regard to fiscal year limitation pursuant to an act of Congress, and used solely to pay the costs of operating and maintaining the Fund and for the purposes stated in subsection (c) of this section. All funds, interest, and other amounts deposited into the Fund shall not be transferred or revert to the General Fund of the District of Columbia at the end of any fiscal year or at any other time, but shall continually be available for the uses and purposes set forth in this section, subject to authorization by Congress in an appropriations act. The Mayor shall administer the monies deposited in the Fund. (1) The purpose of the Fund is to streamline administrative green building processes, improve sustainability performance outcomes, build capacity of development and administrative oversight professionals in green building skills and knowledge, institutionalize innovation, overcome barriers to achieving high-performance buildings, and continuously promote the sustainability of green building practices in the District. The Fund shall be used as follows: costs for at least 3 full-time employees at DCRA, or elsewhere as assigned by the Mayor, whose primary job duties are devoted to technical assistance, plan review, and inspections and monitoring of green buildings; Additional staff and operating costs to provide training, technical assistance, plan review, inspections and monitoring of green buildings, and green codes development; Research and development of green building practices; Education, training, outreach, and other market transformation initiatives; and Seed support for demonstration projects, their evaluation, and when successful, their institutionalization. The Mayor may receive and administer grants for the purpose of carrying out the goals of this chapter. Division I. Government of District. Title 6. Housing and Building Restrictions and Regulations. (Refs & Annos) Chapter 14A. Green Building Requirements. § 6-1451.08. Green building fee. A green building fee is established to fund the implementation of this chapter and the Green Building Fund. Upon March 8, 2007, the green building fee shall be established by increasing the building permit fees in effect at the time in accordance with the following schedule of additional fees: New construction--an additional $0.0020 per square foot. 12096859.2 Alterations and repairs exceeding $1,000 but not exceeding $1 million--an additional 0.13% of construction value; and Alterations and repairs exceeding $1 million--an additional 0.065% of construction value. Division I. Government of District. Title 6. Housing and Building Restrictions and Regulations. (Refs & Annos) Chapter 14A. Green Building Requirements. § 6-1451.09. Establishment of the Green Building Advisory Council. DDOE shall provide the central coordination and technical assistance to District agencies and instrumentalities in the implementation of the provisions of this chapter. Within 90 days after March 8, 2007, the Mayor shall establish a Green Building Advisory Council to monitor the District's compliance with the requirements of this chapter and to make policy recommendations designed to continually improve and update the chapter. (1) The GBAC shall consist of the following 13 members: The Director of DDOE, or the Director's designee; The Director of the Office of Planning, or the Director's designee; The Director of the Department of General Services, or the Director's designee; The Director of the Department of Consumer and Regulatory Affairs, or the Director's designee; The Director of the Department of Housing and Community Development, or the Director's designee; Six members appointed by the Mayor comprised in equal number of representatives from the private and nonprofit sectors; One member appointed by the chairperson of the committee of the Council that oversees the building permit function in the District of Columbia; and One member appointed by the chairperson of the Committee of the Council that oversees DDOE.. Members of the GBAC who are not ex officio members shall have expertise in building construction, development, engineering, natural resources conservation, energy conservation, green building practices, environmental protection, environmental law, or other similar green building expertise. The Chairperson of the GBAC shall be the Director of DDOE. 12096859.2 All members of the GBAC shall either work in, or be residents of the District, and shall serve without compensation. The members shall serve a 2-year term. A member appointed to fill a vacancy or after a term has begun, shall serve only for the remainder of the term or until a successor is appointed. The GBAC shall advise the Mayor on: The development, adoption, and revisions of this chapter, including suggestions for additional incentives to promote green building practices; The evaluation of the effectiveness of the District's green building policies and their impact on the District's environmental health, including the relation of the development of the District's green building policies to the specific environmental challenges facing the District; The green building practices to be included in the triennial revisions of the Construction Codes; and The promotion of green building education, including educating relevant District employees, the building community, and the public regarding the benefits and techniques of high-performance building standards. The GBAC shall meet at least 6 times each year. GBAC shall issue an annual report of its recommendations. The report shall include recommended updates of green building standards, building systems monitoring and data compiled from District-owned or District instrumentality-owned and operated buildings, and an analysis of the building projects exempted by the Mayor under § 6-1451.10. The report shall be distributed to all members of the Council and the Mayor and made available to the general public within 30 days after its issuance. The Mayor shall provide GBAC with the following to be included in the annual report required by subsection (f) of this section: An accounting of funds deposited into the Green Building Fund during the past fiscal year, separated by category; An accounting of funds spent from the Green Building Fund during the past fiscal year, referencing that year's annual green plan's goals; and A 2-year District Green Building Plan updated annually, with goals and associated projections of expenditures for the upcoming fiscal year, produced in consultation with the GBAC. Division I. Government of District. 12096859.2 Title 6. Housing and Building Restrictions and Regulations. (Refs & Annos) Chapter 14A. Green Building Requirements. § 6-1451.10. Exemptions and extensions. (1) The Mayor may, in unusual circumstances and only upon a showing of good cause, grant an exemption from any of the requirements of this chapter based on: Substantial evidence of a practical infeasibility or hardship of meeting a required green building standard; A determination that the public interest would not be served by complying with such requirements; or Other compelling circumstances as determined by the Mayor by rulemaking. The burden shall be on the applicant to show circumstances to establish hardship or infeasibility under this section. If the Mayor determines that the required verification requirement is not practicable for a project, the Mayor shall determine if another green building standard is practicable before exempting the project from all green building requirements. The Mayor shall promulgate rules to establish requirements for the exemption process within 180 days of March 8, 2007. Notwithstanding any other provision of this chapter, construction encompassed by building permits applied for within 6 months of March 8, 2007, shall be exempt from the verification requirements of this chapter. Notwithstanding any other provision of this chapter, construction encompassed by a contract for a disposition agreement with the District or an instrumentality of the District for a property disposition for which a request for proposals was released prior to March 8, 2007, shall be exempt from the relevant current edition of the LEED standard for commercial and institutional buildings verification requirements, unless the disposition agreement is executed more than 12 months after March 8, 2007. Notwithstanding any other provision of this chapter, the Mayor, upon a finding of reasonable grounds, may extend the period for green building verifications required in §§ 6-1451.02 and 61451.03, for 3 successive 4-month periods. Division I. Government of District. Title 6. Housing and Building Restrictions and Regulations. (Refs & Annos) Chapter 14A. Green Building Requirements. § 6-1451.11. Rules. 12096859.2 The Mayor, pursuant to subchapter I of Chapter 5 of Title 2, may issue rules to implement the provisions of this chapter. The Mayor may issue proposed rules to adopt another rating system, in whole or in part. Proposed rules to adopt another rating system shall be submitted to the Council for a 45-day period of review, excluding Saturdays, Sundays, legal holidays, and days of Council recess. If the Council does not approve the proposed rules, in whole or in part, by resolution within this 45-day review period, the proposed rules shall be deemed disapproved. Notwithstanding the requirements of § 2-552(c), where the Mayor chooses to adopt a LEED or Green Communities standard as the District's standard under this chapter, DDOE may do so by incorporating the LEED or Green Communities standard by reference in a Notice of Intent to take rulemaking action. When incorporating the LEED or Green Communities standard by reference, the notice shall include a specific indication of how and where a paper or electronic copy of such document may be inspected or obtained. Any amendments, supplements, or future editions to the LEED or Green Communities Standard shall be deemed to be included in the District's standard; provided, that DDOE shall annually issue a Notice of Intent to adopt any amendments, supplements, or future editions to the LEED or Green Communities, in whole, or in part, or announce an intent to adopt a different standard. Division I. Government of District. Title 10. Parks, Public Buildings, Grounds, and Space. (Refs & Annos) Subtitle IV. Specific Locales. Chapter 16. Ballpark Development. Subchapter I. Construction of Ballpark. Part A. General. § 10-1601.05. Ballpark development and construction. For the purposes of this section, the term: "Ballpark" means a baseball-specific stadium owned by the District and constructed on the ballpark site. “Ballpark site” means the site bounded by N Street, S.E., Potomac Avenue, S.E., South Capitol Street, S.E., and 1st Street, S.E., or such other site as determined in accordance with subsection (b)(2) of this section if this primary site shall be unavailable to be acquired by the Mayor. “Baseball Stadium Agreement” means the Baseball Stadium Agreement dated as of September 29, 2004 by and among the Government of the District of Columbia, the Sports and Entertainment Commission, and Baseball Expos, L.P., a Delaware limited partnership. "MLB Team" means the entity that owns the Major League Baseball franchise that will play its home games in the ballpark. (1) For purposes of this subsection, the term: 12096859.2 "Ballpark" shall have the meaning specified in § 47-2002.05(a)(1)(A). "Baseball Stadium Agreement" shall have the meaning specified in subsection (a)(3) of this section. The Mayor, subject to such conditions as the Mayor shall determine, shall: Acquire and convey to the Anacostia Waterfront Corporation, for use by the Sports and Entertainment Commission to satisfy its responsibilities under this subchapter, all necessary real property, including rights-of-way or other easements, that shall be required to develop, construct, and complete a ballpark within the site bounded by N Street, S.E., Potomac Avenue, S.E., South Capitol Street, S.E., and 1st Street, S.E.; provided, that if this site shall be unavailable or infeasible for the timely completion of a ballpark on or prior to March 1, 2008 relying only on the funding authority provided in this subchapter, any designated alternative site in the District of Columbia, including the site for Robert F. Kennedy Stadium, as defined in § 3-1402(4), that the Mayor determines, subject to the approvals required in section 4.01 of the Baseball Stadium Agreement, will be available and feasible for the timely completion of a ballpark relying only on the funding authority provided in this subchapter; provided further, that if the designated alternative site is not within the Anacostia Waterfront, as that term is defined in subchapter XII of Chapter 12 of Title 2, the alternative site shall be conveyed directly to the Sports and Entertainment Commission; and Provide to the Sports and Entertainment Commission all funds from the Ballpark Revenue Fund or from the issuance of bonds secured by the Ballpark Revenue Fund as shall be required by the Sports and Entertainment Commission for the development, construction, completion, and leasing of the ballpark on the ballpark site in accordance with this section. The Mayor shall provide the Council with the following information associated with the ballpark: A copy of any term sheet, loan commitment, or any other material obligation executed by the District or any District government agency or instrumentality to finance the District government's costs associated with the development of the ballpark; A copy of each material contract executed by the District or any District government agency or instrumentality for goods or services associated with the development of the ballpark; and On or before July 1, 2005, and every 6 months thereafter, a semiannual report which provides an accounting and itemization of all financial obligations and expenditures of the District government and all revenues generated to the District government associated with the development of the ballpark. Sports and Entertainment Commission shall develop and construct a ballpark on the ballpark site in accordance with the following requirements: The ballpark shall be a first-class, open air baseball stadium to be constructed on the ballpark site, having a natural grass playing field, a capacity of approximately 41,000 seats, and 12096859.2 market-appropriate concession, entertainment, and retail areas, fixtures, furnishings, equipment, features, and amenities. The ballpark shall be designed to comply with all public safety, accessibility, and urban planning requirements generally applicable to buildings of such scale, purpose, and location in the District of Columbia. (A) The Sports and Entertainment Commission shall enter into a Construction Administration Agreement with the Mayor and the MLB Team. The Construction Administration Agreement shall require the Sports and Entertainment Commission, the Mayor, and the MLB Team to form a Project Coordination Team to perform the following functions: Make non-binding recommendations to the Sports and Entertainment Commission and the MLB Team with respect to the retention of various design, engineering, construction, consulting, and construction management firms that will assist in the development and construction of the ballpark; Receive reports from such firms pertaining to schedule, budget and other aspects of the development and construction of the ballpark; and Make or provide the consents, authorizations, approvals, decisions, and other actions expressly required of the Project Coordination Team, to the extent legally permitted, under the Construction Administration Agreement. The Construction Administration Agreement shall provide for periodic regular meetings of the Project Coordination Team and for special meetings upon reasonable prior notice. The Sports and Entertainment Commission and the Mayor together shall have one vote and the MLB Team shall have one vote on the Project Coordination Team, and each will have the right to appoint and replace its voting representative by written notice to the other party. The voting representative who represents the Sports and Entertainment Commission and the Mayor shall be chosen jointly by the Sports and Entertainment Commission and the Mayor. Each voting member of the Project Coordination Team may act on behalf of the party or parties it represents, and in connection with the development and construction of the ballpark, may sign documents, authorize action, and otherwise bind the party or parties that it represents in connection with matters properly before the Project Coordination Team. The Project Coordination Team shall take action only by unanimous vote of its voting members. The Sports and Entertainment Commission shall use a competitive procurement process in accordance with its procurement regulations to select and engage the design, engineering, construction, consulting, and construction management firms and shall require such firms to comply with subchapter X of Chapter 2 of Title 2. The ballpark shall be designed and constructed in a manner to promote the minimization of: 12096859.2 The life cycle cost and environmental impact of the facility and dependence on petroleum-based fuels by utilizing energy efficiency, water conservation, or solar or other renewable energy technologies; and Waste production, water pollution, and storm water runoff from the facility, taking into account applicable criteria in effect, on April 8, 2005, of the Leadership in Energy and Environmental Design Green Building Rating System for New Construction and Major Renovation, LEED-NC version 2.1, as defined by the U.S. Green Building Council. The Sports and Entertainment Commission shall comply with the expenditure limitations set forth in §§ 10-1601.32 and 10-1601.33. The Sports and Entertainment Commission shall submit a monthly report of expenditures to the Council no later than the 15th of each month. The Sports and Entertainment Commission shall lease the ballpark, on behalf of the District, to the MLB Team pursuant to a lease agreement that has an initial term of at least 30 consecutive years, plus 5 2-year renewal options, and that is otherwise in accordance with the terms of the Baseball Stadium Agreement. (1) The Sports and Entertainment Commission and the Anacostia Waterfront Corporation shall promptly enter into a memorandum of understanding which shall address these agencies' shared responsibilities for developing the master urban site plan and exterior design guidelines for the ballpark and parcels adjacent to the ballpark site within the Anacostia Waterfront. (2) Parts F and G of subchapter XII of Chapter 12 of Title 2, shall not apply to the ballpark or the Robert F. Kennedy Stadium. Except as provided in §§ 10-1601.32 and 10-1601.33, no funds in the General Fund of the District of Columbia shall be spent on the hard and soft costs (as the terms are defined in part B of this subchapter) for construction of the ballpark. References in this section to the Sports and Entertainment Commission shall be deemed to refer to the Washington Convention and Sports Authority, as successor to the Sports and Entertainment Commission, unless the context clearly indicates otherwise. 12096859.2 Florida (back to top) EXECUTIVE ORDER NUMBER 07-126 Establishing Climate Change Leadership by Example: Immediate Actions to Reduce Greenhouse Gas Emissions from Florida State Government WHEREAS, with nearly 1,350 miles of coastline and a majority of citizens living near that coastline, Florida is more vulnerable to rising ocean levels and violent weather than any other state; and WHEREAS, global climate change is one of the most important issues facing the State of Florida this century; and WHEREAS, Florida has committed to becoming a leader in reducing emissions of greenhouse gases which are changing Earth's climate; and WHEREAS, immediate actions are available and required to reduce emissions of greenhouse gases within Florida; and WHEREAS, Florida's state government is the largest employer within the State of Florida with 114,756 authorized employees, more than $1 billion in annual commodity purchases, and 16.8 million square feet of office space statewide; and WHEREAS, Florida's state government must lead by example in the fight against global climate change by reducing emissions of greenhouse gases and demonstrating the economic value of such reductions; and WHEREAS, reductions in carbon emissions associated with state government operations will result in returns to the taxpayers of Florida through reduced energy costs; and WHEREAS, such savings can fund strategic investments elsewhere in Florida's economy that further reduce emissions of greenhouse gases while boosting green industries in Florida. NOW, THEREFORE, I, CHARLIE CRIST, as Governor of Florida, in obedience to my solemn constitutional duty to take care that the laws be faithfully executed, and pursuant to the Constitution and laws of the State of Florida, do hereby promulgate the following Executive Order, to take immediate effect: Section 1. I hereby establish greenhouse gas emission reduction targets for state agencies and departments under the direction of the Governor as follows: a 10 percent reduction from current emission levels by 2012, a 25 percent reduction from current emission levels by 2017, and a 40 percent reduction from current emission levels by 2025. Section 2. The Executive Office of the Governor shall track and report the resulting financial savings and emission reductions associated with this Executive Order with a Florida Governmental Carbon Scorecard. All state agencies and departments under the direction of the 12096859.2 Governor are hereby directed to designate an individual responsible for coordinating implementation. Section 3. I hereby direct the following actions to improve the climate performance of state government facilities: 1. Each state agency and department under the direction of the Governor is hereby directed to conduct an immediate assessment of energy used by agency facilities during FY 2006-2007 and to quantify the associated greenhouse gas emissions using the GHG Protocol Corporate Standard templates as developed by the World Business Council for Sustainable Development. The baseline assessment will be posted on Florida's Governmental Carbon Scorecard no later than October 1, 2007 and updated quarterly; 2. The Department of Management Services shall adopt the United States Green Building Council's Leadership in Energy and Environmental Design for New Construction (LEED-NC) standards for all new buildings. The Department is directed to strive for Platinum Level certification, the highest possible certification, for any new building constructed for or by the State of Florida; 3. The Department of Management Services shall immediately implement the United States Green Building Council's Leadership in Energy and Environmental Design for Existing Buildings (LEED-EB) for all buildings currently owned and operated by the Department on behalf of client agencies. The Department may prioritize implementation of LEED-EB standards in order to gain the greatest environmental benefit within the Department's existing budget for property management; 4. All state agencies and departments under the direction of the Governor are hereby precluded from entering into new leasing agreements for office space that does not meet Energy Star building standards, except when certified by the responsible agency head that no other viable alternative exists. 5. The Department of Management Services is hereby directed to develop energy conservation measures and guidelines for new and existing office space where state agencies occupy more than 20,000 square feet. These conservation measures shall focus on programs that may reduce energy consumption and when established, provide a net reduction in occupancy costs. The Department shall develop and implement a model solar project for state-owned office buildings for future expansion. Section 4. I hereby direct the following actions to improve the climate performance of state government procurement practices: 1. 12096859.2 The Council for Efficient Government shall incorporate energy consumption and greenhouse gas emissions as performance criteria for all business cases evaluated by the Council in determining whether outsourcing projects are fiscally prudent for the State of Florida; 2. The Department of Management Services shall develop the "Florida Climate Friendly Preferred Products List." In developing the recommended list, the Department shall assess products currently available for purchase under State Term Contracts to identify specific products and vendors that have clear energy efficiency or other environmental benefit over competing products. The proposed list shall be provided to the Governor's Office no later than October 1, 2007; 3. Effective January 1, 2008 state agencies and departments under the direction of the Governor may not contract for meeting and conference space with hotels or conference facilities that have not received the DEP "Green Lodging" certification for best practices in water, energy, and waste efficiency standards, except when certified to the Governor by the responsible agency head that no other viable alternative exists. 4. The Department of Management Services, with assistance from the Department of Environmental Protection, shall develop bid criteria for the 2009 State Term Contract for Rental Vehicles that incorporate best possible energy efficiency and environmental performance. The Department shall seek to negotiate with the current vendor(s) to amend the contract(s) to incorporate these efficiencies. Section 5. I hereby direct the following actions to improve the climate performance of state government fleets: 1. Each state agency and department under the direction of the Governor shall conduct an immediate assessment of transportation-related energy use and greenhouse gas emissions associated with agency operations. The assessment must include an analysis of the average fuel economy of each agency's automobiles and light trucks, by vehicle class. The results of this baseline assessment shall be posted on Florida's Governmental Carbon Scorecard, by agency, no later than October 1, 2007 and updated quarterly. 2. Each state agency and department under the direction of the Governor shall assure that within 30 days from the date of this order, all vehicles are meeting minimum maintenance schedules shown to reduce fuel consumption which includes assuring appropriate tire pressures and tread; fuel filters and emission filters replaced at recommended intervals; proper motor oil; and timely motor tune-ups. The Department of Management Services shall measure and report compliance with this directive through the Equipment Management Information System database and reported to the Executive Office of the Governor on a semi-annual basis thereafter. 3. When procuring new vehicles, the Department of Management Services, through all state agencies and departments under the direction of the Governor, is directed 12096859.2 to approve only those vehicles with the greatest fuel efficiency in a given class as required for that vehicle to minimize emissions of greenhouse gases. The Department shall consider any specific circumstances of law enforcement agencies in processing vehicle purchases and leasing agreements. 4. All state agencies and departments under the direction of the Governor shall use ethanol and biodiesel fuels when locally available. The Department of Management Services shall assess biofuel fueling potential by state government vehicles within each metropolitan statistical area to demonstrate demand for biofuels to industry. Agencies administering central fueling operations for stateowned vehicles are directed to procure biofuels for fleet needs to the greatest extent practicable. 5. The Department of Management Services, with assistance from the Department of Environmental Protection, shall document the extent of all alternative motor vehicle fueling facilities used by state government vehicles, including but not limited to hydrogen, compressed natural gas, biofuels, and electrically-charged batteries to determine the feasibility of opening current alternative fueling facilities to private sector fleets and the general public or developing such facilities in the future to increase public access to alternative vehicle fuels. The alternative motor vehicle fueling facility inventory shall be transmitted to the Governor's Office no later than October 1, 2007; Section 6. The Department of Agriculture and Consumer Services, the Department of Financial Services, the Office of the Attorney General, all Governor and Cabinet agencies, the Florida Senate, the Florida House of Representatives, the Florida State Court System, the State University System, the Community College System, and other agencies of the state and[ commissions not under the jurisdiction of the Governor are encouraged to implement these and other actions to reduce State Government's overall emissions of greenhouse gases. Section 7. All state agencies and departments under the direction of the Governor are hereby directed, and all other state agencies are hereby requested, to assist those carrying out the directions in this Executive Order. IN TESTIMONY WHEREOF, I have hereunto set my hand and have caused the Great Seal of the State of Florida to be affixed at Miami, this 13th day of July, 2007. EXECUTIVE ORDER NUMBER 07-127 Establishing Immediate Actions to Reduce Greenhouse Gas Emissions within Florida WHEREAS, with nearly 1,350 miles of coastline and a majority of citizens living near that coastline, Florida is more vulnerable to rising ocean levels and violent weather than any other state; and WHEREAS, global climate change is one of the most important issues facing the State of Florida this century; and 12096859.2 WHEREAS, Florida is the second fastest growing state in the union with respect to the annual increase of new greenhouse gas emissions; and WHEREAS, immediate actions are available and required to reduce emissions of greenhouse gases within Florida; and WHEREAS, efforts are underway at the national level to begin addressing greenhouse gas emissions; and WHEREAS, Florida has committed to becoming a leader in reducing emissions of greenhouse gases which are causing changing Earth's climate; and WHEREAS, Florida, together with international leaders and experts, is hosting the Serve to Conserve Climate Change Summit on July 12 and 13, 2007 in Miami, Florida; NOW, THEREFORE, I, CHARLIE CRIST, as Governor of Florida, in obedience to my solemn constitutional duty to take care that the laws be faithfully executed, and pursuant to the Constitution and laws of the State of Florida, do hereby promulgate the following Executive Order, to take immediate effect: Section 1. I hereby establish greenhouse gas emission reduction targets for the State of Florida as follows: by 2017, reduce greenhouse gas emissions to 2000 levels; by 2025, reduce greenhouse gas emissions to 1990 levels; by 2050, reduce greenhouse gas emissions by 80% of 1990 levels. Section 2. I hereby direct the following actions by members of my Administration in order to produce immediate reductions in greenhouse gas emissions within Florida; 1. The Secretary of Environmental Protection shall immediately develop rules as authorized under Chapter 403, Florida Statutes, to achieve the following: • Adoption of a maximum allowable emissions level of greenhouse gases for electric utilities in the State of Florida. The standard will require at minimum, three reduction milestones as follows: by 2017, emissions not greater than Year 2000 utility sector emissions; by 2025, emissions not greater than Year 1990 utility sector emissions; by 2050, emissions not greater than 20% of Year 1990 utility sector emissions (i.e., 80% reduction of 199 emissions by 2050); • Adoption of the California motor vehicle emission standards in Title 13 of the California Code of Regulations, effective January 1, 2005, upon approval by the U.S. Environmental Protection Agency of the pending waiver, which includes emission standards for greenhouse gases, submitted by the California Air Resources Board; and • Adoption of a statewide diesel engine idle reduction standard. 12096859.2 2. The Secretary of Community Affairs shall immediately: • Convene the Florida Building Commission for the purpose of revising the Florida Energy Code for Building Construction to increase the energy performance of new construction in Florida by at least 15% from the 2007 Energy Code. The Commission should consider incorporating standards for appliances and standard lighting in the Florida Energy Code. Target implementation date for the revised Florida Energy Code for Building Construction is January 1, 2009; Initiate rulemaking of the Florida Energy Conservation Standards, Chapter 9B-44, Florida Administrative Code, with an objective to increase the efficiency of applicable consumer products authorized under s. 5 53.957, Florida Statutes, by 15% from current standards for implementation by July 1, 2009. Section 3. I hereby request the Florida Public Service Commission to take the following actions for the electric utility sector in order to open the market to clean, renewable energy technologies, thus avoiding future greenhouse gas emissions: • Not later than September 1, 2007, initiate rulemaking to require that utilities produce at least 20% of their electricity from renewable sources (Renewable Portfolio Standard) with a strong focus on solar and wind energy; • Not later than September 1, 2007., initiate rulemaking to reduce the cost of connecting solar and other renewable energy technologies to Florida's power grid by adopting the Institute of Electrical and Electronics Engineers (IEEE) Standard 1547 for Interconnecting Distributed Resources with Electric Power Systems as the uniform statewide interconnection standard for all utilities; and • Not later than September 1, 2007, initiate rulemaking to authorize a uniform, statewide method to enable residential and commercial customers who generate electricity from on-site renewable technologies of up to 1 megawatt in capacity to offset their consumption over a billing period by allowing their electric meters to turn backwards when they generate electricity (net metering). Section 4. All state agencies departments under the direction of the Governor are hereby directed, and all other state agencies are hereby requested, to assist those carrying out the directions in this Executive Order. EXECUTIVE ORDER NUMBER 07-128 Establishing the Florida Governor's Action Team on Energy and Climate Change WHEREAS, Florida has one of the nation's fastest growing populations with an average of 980 new residents arriving per day and approximately 84.6 million visitors per year; and WHEREAS, as the fourth most populous state, Florida ranks third nationally in total energy consumption; and 12096859.2 WHEREAS, more than 70 percent of Florida's electricity is generated by fossil fuels which contribute to the state's carbon emissions; and WHEREAS, Florida is encouraging alternative energy generation to promote energy diversity and reduce pollution; and WHEREAS, with nearly 1,350 miles of coastline and a majority of citizens living near that coastline, Florida is more vulnerable to rising ocean levels and violent weather than any other state; and WHEREAS, the potential impacts of climate change could significantly impact Florida's businesses, public infrastructure and disturb the way of life enjoyed by millions of Floridians; and WHEREAS, global climate change is one of the most important issues facing Florida this century; and WHEREAS, the actions Florida takes to reduce greenhouse gas emissions, in concert with actions taken elsewhere in the United States and the world, could significantly reduce the potential for adverse impacts in Florida; and WHEREAS, Florida, together with international leaders and experts, is hosting the Serve to Conserve Climate Change Summit on July 12 and 13, 2007 in Miami, Florida; NOW, THEREFORE, I, CHARLIE CRIST, as Governor of Florida, in obedience to my solemn constitutional duty to take care that the laws be faithfully executed, and pursuant to the Constitution and laws of the State of Florida, do hereby promulgate the following Executive Order, to take immediate effect: Section 1. I hereby create the Florida Governor's Action Team on Energy and Climate Change to develop a comprehensive Energy and Climate Change Action Plan that will fully achieve or surpass Executive Order targets for statewide greenhouse gas reductions specified in Executive Order 07-127. Action Team members shall be gubernatorial appointees representing diverse expertise and stakeholder interests including, but not limited to, consumers, environment, business, industry, energy, state and local government, and academia. The Action Team shall hold its first meeting within 30 days of appointment. Section 2. I hereby order the preparation of the Florida Energy and Climate Change Action Plan be guided by an evaluation of the possible consequences to Florida's environment, economy, and society from global climate change. The Florida Energy and Climate Change Action Plan shall include policy recommendations and necessary changes to existing law. The Florida Energy and Climate Change Action Plan shall be completed in two phases. Phase I: 12096859.2 By November 1, 2007, the Action Team shall issue recommendations including any necessary legislative initiatives to address the following: Phase II: 1. Strategies and mechanisms for the consolidation and coordination of energy policy in Florida; 2. Additional greenhouse gas emission reduction strategies beyond those directed in Executive Order 07-127 , as well as an overall blueprint for development of actions; 3. Policies to enhance energy efficiency and conservation, including statewide targets; 4. Market-based regulatory mechanisms, such as cap and trade programs, for use in efficiently reducing greenhouse gas emissions; 5. Strategies to diversify Florida's electric generation fuels to reduce greenhouse gas emissions and protect Florida's consumers from fuel price volatility; 6. Policies for emission reporting and registry that measure and document emission reductions; 7. Strategies for reducing the greenhouse gas emissions from motor vehicles; 8. Strategies for increasing the amount of renewable transportation fuels and for reducing the carbon content of fuels, such as a low carbon fuel standard; 9. Policies to reduce greenhouse gas emissions from state and local governments not addressed in Executive Order 07-126; 10. Policies to reward early emission reductions in advance of statewide or national greenhouse gas regulatory programs; and 11. Other policies for efficiently reducing emissions in Florida in conjunction with, or independent of regional, national, or international agreements. By October 1, 2008, the Action Team shall issue recommendations including any necessary legislative initiatives to address the following: 1. 12096859.2 Adaptation strategies to combat adverse impacts to society, public health, the economy, and natural communities in Florida; 2. Policies to reduce the increases in greenhouse gas emissions from new growth; 3. Carbon capture and storage technologies; 4. Land use and management policies that improve the long-term storage of carbon in Florida's biomass; 5. Strategic investments and public-private partnerships in Florida to spur economic development around climate-friendly industries and economic activity that reduces emissions in Florida; and 6. Strategies and mechanisms for the long-term coordination of Florida's public policy in the areas of economic development, university-based research and technology development, energy, environmental protection, natural resource management, growth management, transportation, and other areas as needed to assure a future of prosperity for Floridians in reducing greenhouse gas emissions. Section 3. The Secretary of the Department of Environmental Protection shall direct the professional staffing and assistance required by the Action Team in completing the Florida Energy and Climate Action Plan. The Department of Environmental Protection, the Department of Community Affairs, and the Department of Transportation shall provide staff and consultants, as required by the Secretary of the Department of Environmental Protection. The Public Service Commission and the Fish and Wildlife Conservation Commission are requested to provide assistance as required by the Secretary of the Department of Environmental Protection. Section 4. Action Team members shall not be compensated for their services or reimbursed for travel or per diem expenses. Public officers and employees shall be reimbursed by their respective agencies in accordance with chapter 112, Florida Statutes. Section 5. Public access to records generated by the Action Team and any technical advisory committees deemed necessary in furtherance of this order shall be governed by the Public Records Laws of Chapter 119, Florida Statutes. All meetings of the Action Team shall be governed by the Open Meetings Laws of Chapter 286, Florida Statutes. Section 6. The Department of Environmental Protection shall provide administrative support necessary to implement the provisions of this Executive Order. All state agencies under the direction of the Governor are hereby directed, and all other state agencies are hereby requested to assist those carrying out the directions in this Executive Order. 12096859.2 Georgia (back to top) § 50-8-18. Energy Efficiency and Sustainable Construction Act of 2008 (a) This Code section shall be known and may be cited as the “Energy Efficiency and Sustainable Construction Act of 2008.” (b) The General Assembly finds that the welfare of this state is enhanced by the promotion of effective energy and environmental standards for construction, rehabilitation, and maintenance of state-funded facilities and that such standards in turn improve this state's capacity to design, build, and operate high-performance buildings, contributing to economic growth, promoting job development, and increasing energy conservation. (c) For purposes of this Code section, “major facility project” means a state-funded: (1) New construction building project of a building exceeding 10,000 square feet; (2) A renovation project that is more than 50 percent of the replacement value, as determined by the Department of Administrative Services Risk Management Division, of the facility, a change in occupancy, or any roof replacement project exceeding 10,000 square feet; or (3) A commercial interior tenant fit-out project exceeding 10,000 square feet of leasable area where the state is intended to be the lessor of such property. A major facility project shall not include a building, regardless of size, that does not have conditioned space as defined by the American Society of Heating, Refrigerating, and AirConditioning Engineers (ASHRAE) and shall not include a state owned building that is on the historical registry or any local, county, or municipal building. (d) Consistent with the intent of this Code section, the department, in consultation with the Georgia State Financing and Investment Commission, shall adopt policies and procedures as recommended standards for all buildings owned or managed by this state that: (1) Optimize the energy performance; (2) Increase the demand for construction materials and furnishings produced in Georgia; (3) Improve the environmental quality in this state by decreasing the discharge of pollutants from such state buildings; (4) Conserve energy and utilize local and renewable energy sources; (5) Protect and restore this state's natural resources by avoiding the development of inappropriate building sites; 12096859.2 (6) Reduce the burden on municipal water supply and treatment by reducing potable water consumption; (7) Establish life cycle assessments as the appropriate and most efficient analysis to determine a building project's environmental performance level; and (8) Encourage obtaining Energy Star designation from the United States Environmental Protection Agency to further demonstrate a building project's energy independence. (e) All major facility projects may be designed, constructed, and commissioned or modeled to exceed the standards set forth in ASHRAE 90.1.2004 by 30 percent where it is determined by the department that such 30 percent efficiency is cost effective based on a life cycle cost analysis with a payback at no more than ten years. Commissioning or modeling must be performed by a professional engineer, design professional, or commissioning agent using software methodology approved by the Internal Revenue Service, the Department of Energy, current ASHRAE standards, or other similar methodology. For all major renovation projects, such requirements shall apply to the specific building assemblies, envelope components, and equipment involved in the project. (f) All major facility projects shall be designed, constructed, and commissioned or modeled to achieve a 15 percent reduction in water use when compared to water use based on plumbing fixture selection in accordance with the Energy Policy Act of 1992. (g) To achieve sustainable building standards, construction projects may utilize a nationally recognized high performance energy modeling and environmental building rating system; provided, however, that any such rating system that uses a material or product based credit system that operates to the detriment of materials or products manufactured or produced in Georgia shall not be utilized. The department shall designate rating systems that meet these criteria and is authorized to establish its own alternative rating system. All major facility projects shall include Georgia products such that not less than 10 percent of all building materials used in a project are harvested, extracted, or manufactured in the State of Georgia where such products are commercially available in a manner consistent with the purposes of this Code section. (h) A professional engineer, design professional, or commissioning agent shall certify that the building project's systems for heating, ventilating, air conditioning, energy conservation, and water conservation are installed and working properly to ensure that each building project performs according to the building's overall environmental design intent and operational objectives. 12096859.2 Hawaii (back to top) §46-19.6 County building permits; incorporation of energy and environmental design building standards in project design; priority processing. Each county agency that issues building, construction, or development-related permits shall establish a procedure for the priority processing of a permit application submitted by a private entity for a construction project that incorporates energy and environmental design building standards into its project design. The permit processing procedure shall give priority to private sector permit applicants at no additional cost to the applicant. Any priority permit processing procedure established by a county pursuant to this section shall not imply or provide that any permit application filed under the priority processing procedure shall be automatically approved. For the purposes of this section: "Energy and environmental design building standards" means the leadership in energy and environmental design silver or two green globes rating system or another comparable state‑approved, nationally recognized, and consensus‑based guideline, standard, or system. "Private entity" means any permit applicant that is not the State, a county, the federal government, or any political subdivision thereof. §196-1 Findings and declaration of necessity. The legislature finds that: (1) The global demand for petroleum and its derivatives has resulted in a significant and fundamental market escalation in oil prices, has caused severe economic hardships throughout the State, and threatens to impair the public health, safety, and welfare. The State of Hawaii, with its near total dependence on imported fossil fuel, is particularly vulnerable to dislocations in the global energy market. This situation can be changed, as there are few places in the world so generously endowed with natural energy: geothermal, solar radiation, ocean temperature differential, wind, biomass, waves, and currents, which are all potential nonpolluting power sources; (2) There is a real need for comprehensive strategic planning in the effort towards achieving full use of Hawaii's energy resources and the most effective allocation of energy resources throughout the State. Planning is necessary and desirable in order that the State may recognize and declare the major problems and opportunities in the field of energy resources. Both short-range and long-range planning will permit the articulation of: (A) 12096859.2 Broad policies, goals, and objectives; (B) Criteria for measuring and evaluating accomplishments of objectives; (C) Identification and implementation of programs that will carry out such objectives; and (D) A determination of requirements necessary for the optimum development of Hawaii's energy resources. Such planning efforts will identify present conditions and major problems relating to energy resources, their exploration, development, production, and distribution. It will show the projected nature of the situation and rate of change, present conditions for the foreseeable future based on a projection of current trends in the development of energy resources in Hawaii, and include initiatives designed to fundamentally change how Hawaii consumes energy by accelerating the production of renewable and alternative energy, increasing energy efficiency, developing and adopting new technologies, and ensuring the State's energy security; (3) The State requires an in-depth understanding of the causes and effects of any transitional issues and trends related to changes in the State's energy resources, systems, and markets; (4) There are many agencies of the federal, state, and county governments in Hawaii, as well as many private agencies and a broad set of non-governmental entities, engaged in, or expressing an interest in, various aspects of the exploration, research, distribution, transportation, storage, conservation, and production of all forms of energy resources in Hawaii. Some of these agencies include the University of Hawaii; the department of land and natural resources; the department of business, economic development, and tourism; the division of consumer advocacy; the public utilities commission; the state civil defense agency; the federal energy office; and various county agencies, as well as Hawaii's energy and energy-related companies; and (5) There is an ongoing need in this State to coordinate the efforts of statewide industry and government energy interests; maintain the technical capability and adequate capacity to quantitatively and qualitatively evaluate, analyze, develop, and coordinate implementation of private and public sector energy planning efforts; recommend market-based policies to develop Hawaii's energy resources, systems, and markets; establish and coordinate programs to preserve and protect the State's energy security, maintain a robust energy emergency preparedness program, and effectuate the conservation of energy resources to provide for the equitable distribution thereof; and to formulate plans for the development and use of alternative energy sources. There is a need for coordination, capability, and capacity, so that there will be maximum conservation and use of energy resources in the State. §196-1.5 Priority permitting process for renewable energy projects. All agencies shall provide priority handling and processing for all state permits required for renewable energy projects. 12096859.2 For purposes of this section, "agencies" means any executive department, independent commission, board, bureau, office, or other establishment of the State, or any quasi-public institution that is supported in whole or in part by state funds. §196-2 Definitions. As used in this chapter, unless the context requires otherwise: “Commission” means the public utilities commission. “Coordinator” means the energy resources coordinator. “Distributor” means: (1) Every person who refines, manufactures, produces, or compounds fuel in the State and sells it at wholesale or retail, or who uses it directly in the manufacture of products or for the generation of power; (2) Every person who imports or causes to be imported into the State, or exports or causes to be exported from the State, any fuel; (3) Every person who acquires fuel through exchanges with another distributor; and (4) Every person who purchases fuel for resale at wholesale or retail rates from any person described in paragraph (1), (2), or (3). “Electricity” means all electrical energy produced by combustion of any fuel, or generated or produced using wind, the sun, geothermal heat, ocean water, falling water, currents, and waves, or any other source. “Energy” means work or heat that is, or may be, produced from any fuel or source whatsoever. “Energy resources” means fuel, and also includes all electrical or thermal energy produced by combustion of any fuel, or generated or produced using wind, the sun, geothermal heat, ocean water, falling water, currents, waves, or any other source. “Fuel” means fuels, whether liquid, solid, or gaseous, commercially usable for energy needs, power generation, and fuels manufacture, that may be manufactured, grown, produced, or imported into the State or that may be exported therefrom, including petroleum and petroleum products and gases to include all fossil fuel-based gases, coal tar, vegetable ferments, biomass, municipal solid waste, biofuels, hydrogen, agricultural products used as fuels and as feedstock to produce fuels, and all fuel alcohols. 12096859.2 “Townhouse” means a series of individual houses, having architectural unity and a common wall between each unit. §196-3 Energy resources coordinator. The director of business, economic development, and tourism shall serve as energy resources coordinator. §196-4 Powers and duties. Subject to the approval of the governor, the coordinator shall: Formulate plans, including objectives, criteria to measure accomplishment of objectives, programs through which the objectives are to be attained, and financial requirements for the optimum development of Hawaii's energy resources; Conduct systematic analysis of existing and proposed energy resource programs, evaluate the analysis conducted by government agencies and other organizations and recommend programs that represent the most effective allocation of resources for the development of energy resources; Formulate and recommend specific proposals, as necessary, for conserving energy resources, including the allocation and distribution thereof; Assist public and private agencies in implementing energy conservation and efficiency programs, the development of indigenous energy resources, and related measures; Coordinate the State's energy programs with those of the federal government, other state governments, governments of nations with interest in common energy resources, and the political subdivisions of the State; Develop programs to encourage private and public exploration, research, and development of indigenous energy resources that will benefit the State; Conduct public education programs to inform the public of the energy resources situation, as it may exist, from time to time and of the government actions taken; Serve as consultant to the governor, public agencies, and private industry on energy-related matters; Contract for services when required for the implementation of this chapter; Review proposed state actions that the coordinator finds to have significant effect on the State's energy objectives and report to the governor their effect on the 12096859.2 energy program, and perform other services as may be required by the governor and the legislature; Prepare and submit an annual report and other reports as may be requested to the governor and to the legislature on the implementation of this chapter and all matters related to energy resources; Formulate a systematic process, including the development of requirements, to identify geographic areas that are rich with renewable energy resource potential that can be developed in a cost-effective and environmentally benign manner and designate these areas as renewable energy zones; Develop and recommend incentives, plans, and programs to encourage the development of renewable energy resource projects within the renewable energy zones; Assist public and private agencies in identifying utility transmission projects or infrastructure required to accommodate and facilitate the development of renewable energy resources; Assist public and private agencies, in coordination with the department of budget and finance, in accessing the use of special purpose revenue bonds to finance the engineering, design, and construction of transmission projects and infrastructure that are deemed critical to the development of renewable energy resources; Develop the criteria or requirements for identifying and qualifying specific transmission projects and infrastructure that are critical to the development of renewable energy resources, including providing assistance in accessing the use of special purpose revenue bonds to finance the projects or infrastructure; Develop and maintain a comprehensive and systematic quantitative and qualitative capacity to analyze the status of energy resources, systems, and markets, both in-state and those to which Hawaii is directly tied, particularly in relation to the State's economy, and to recommend, develop proposals for, and assess the effectiveness of policy and regulatory decisions, and conduct energy emergency planning; and Adopt rules for the administration of this chapter pursuant to chapter 91. §196-5 Gas appliances with pilot light prohibited; exemptions. (a) No new residential type gas appliance that is equipped with a pilot light shall be sold or installed in the State after June 30, 1980. Gas appliances sold after June 30, 1980, shall be equipped with an intermittent ignition system or other ignition devices in lieu of gas pilot lights. 12096859.2 (b) Beginning ninety days after May 30, 1978, the energy resources coordinator or its successor entity shall notify, in writing, all retail sellers of gas appliances doing business in the State of the provisions of this section. (c) The provisions of this section shall not apply to any hot water heaters with pilot lights or to any gas appliance which can be conclusively demonstrated by the equipment manufacturer, to the satisfaction of the energy resources coordinator or its successor entity, that the gas pilot device in the appliance: (1) Has a substantial lower life cycle cost than an electric ignition or other alternate ignition system; (2) Is more energy efficient than available alternatives; or (3) Is necessary to safeguard public health and safety. (d) The provisions of this section shall not apply to people living in areas that are served with unreliable electric service or where it is not available. (e) 12096859.2 As used in this section: (1) "Gas appliance" includes any new residential type heater, refrigerator, stove, range, dishwasher, dryer, air conditioner, decorative fireplace, or other similar devices; (2) "Intermittent ignition device" means an ignition device which is activated only when the gas appliance is in operation; and (3) "Pilot light" means any gas operated device that remains continually operated or lighted in order to ignite a gas appliance to normal operation. §196-6 Energy efficient storage hot water heaters. (a) No new storage hot water heater which is not certified as meeting the energy efficiency standards of the American Society of Heating, Refrigerating and Air Conditioning Engineers, Inc., as set forth as the current ASHRAE 90 Standard, shall be sold or installed in the State after June 1, 1985; provided, however, that nothing contained herein shall prevent sales from being made in the State for use outside the State. (b) Any violation of subsection (a) shall be a misdemeanor; provided a fine of not less than $50 nor more than $500 shall be imposed, and all fines shall be imposed consecutively. Each storage hot water heater sold in violation of this section shall constitute a separate offense. §196-6.5 Solar water heater system required for new single-family residential construction. On or after January 1, 2010, no building permit shall be issued for a new single-family dwelling that does not include a solar water heater system that meets the standards established pursuant to section 269-44, unless the coordinator approves a variance. A variance application shall only be accepted if submitted by an architect or mechanical engineer licensed under chapter 464, who attests that: Installation is impracticable due to poor solar resource; Installation is cost-prohibitive based upon a life cycle cost-benefit analysis that incorporates the average residential utility bill and the cost of the new solar water heater system with a life cycle that does not exceed fifteen years; A renewable energy technology system, as defined in section 235-12.5, is substituted for use as the primary energy source for heating water; or A demand water heater device approved by Underwriters Laboratories, Inc., is installed; provided that at least one other gas appliance is installed in the dwelling. For the purposes of this paragraph, “demand water heater” means a gas-tankless instantaneous water heater that provides hot water only as it is needed. A request for a variance shall be submitted to the coordinator on an application prescribed by the coordinator and shall include a description of the location of the property and justification for the approval of a variance using the criteria established in subsection (a). A variance shall be deemed approved if not denied within thirty working days after receipt of the variance application. The coordinator shall publicize: All applications for a variance within seven days after receipt of the variance application; and The disposition of all applications for a variance within seven days of the determination of the variance application. 12096859.2 The director of business, economic development, and tourism may adopt rules pursuant to chapter 91 to impose and collect fees to cover the costs of administering variances under this section. The fees, if any, shall be deposited into the energy security special fund established under section 201-12.8. Nothing in this section shall preclude any county from establishing procedures and standards required to implement this section. Nothing in this section shall preclude participation in any utility demand-side management program or public benefits fee program under part VII of chapter 269 §196-7 Placement of solar energy devices. (a) Notwithstanding any law to the contrary, no person shall be prevented by any covenant, declaration, bylaws, restriction, deed, lease, term, provision, condition, codicil, contract, or similar binding agreement, however worded, from installing a solar energy device on any single-family residential dwelling or townhouse that the person owns. Any provision in any lease, instrument, or contract contrary to the intent of this section shall be void and unenforceable. (b) Text of subsec. (b) effective until June 30, 2015. Every private entity shall adopt rules by December 31, 2006, that provide for the placement of solar energy devices, and revise those rules as necessary by July 1, 2011. The rules shall facilitate the placement of solar energy devices and shall not impose conditions or restrictions that render the device more than twenty-five per cent less efficient or increase the cost of installation, maintenance, and removal of the device by more than fifteen per cent. No private entity shall assess or charge any homeowner any fees or require an encumbrance on title for the placement of any solar energy device. (b) Text of subsec. (b) effective June 30, 2015. Every private entity shall adopt rules by December 31, 2006, that provide for the placement of solar energy devices, and revise those rules as necessary by July 1, 2011. The rules shall facilitate the placement of solar energy devices and shall not impose conditions or restrictions that render the device more than twenty-five per cent less efficient or increase the cost of installation, maintenance, and removal of the device by more than fifteen per cent. No private entity shall assess or charge any homeowner any fees for the placement of any solar energy device. (c) Any person may place a solar energy device on any single-family residential dwelling or townhouse unit owned by that person, provided that: The device is in compliance with the rules and specifications adopted pursuant to subsection (b); 12096859.2 The device is registered with the private entity of record within thirty days of installation; and (3) (d) If the device is placed on a common element or limited common element as defined by a project's declaration, the homeowner shall first obtain the consent of the private entity; provided further that such consent shall be given if the homeowner agrees in writing to: (A) Comply with the private entity's design specification for the installation of the device; (B) Engage a duly licensed contractor to install the device; and (C) Within fourteen days of approval of the solar device by the private entity, provide a certificate of insurance naming the private entity as an additional insured on the homeowner's insurance policy. If a solar energy device is placed on a common element or limited common element: (1) The owner and each successive owner of the single-family residential dwelling or townhouse unit on which the device is placed shall be responsible for any costs for damages to the device, the common elements, limited common elements, and any adjacent units, arising or resulting from the installation, maintenance, repair, removal, or replacement of the device. The repair, maintenance, removal, and replacement responsibilities shall be assumed by each successive owner until the solar energy device has been removed from the common elements or limited common elements. The owner and each successive owner shall at all times have and maintain a policy of insurance covering the obligations of the owner under this paragraph and shall name the private entity as an additional insured under said policy; and (2) The owner and any successive owner of the single-family residential dwelling or townhouse unit on which the device is placed shall be responsible for removing the solar energy device if reasonably necessary or convenient for the repair, maintenance, or replacement of the common elements or limited common elements. (e) If a material or labor roof warranty exists at the time a solar energy device is installed on a roof that is a common element or limited common element, the homeowner shall obtain confirmation in writing from the company that issued the warranty that the installation of the solar energy device will not void the roof warranty. The homeowner shall provide the private entity with a copy of the confirmation. (f) For the purposes of this section: 12096859.2 “Private entity” means any association of homeowners, community association, condominium association, cooperative, or any other non-governmental entity with covenants, bylaws, and administrative provisions with which the homeowner's compliance is required. “Solar energy device” means any identifiable facility, equipment, apparatus, or the like, including a photovoltaic cell application, that is applicable to a singlefamily residential dwelling or townhouse and makes use of solar energy for heating, cooling, or reducing the use of other types of energy dependent upon fossil fuel for generation; provided that “solar energy device” shall not include skylights or windows. §196-7.5 Placement of electric vehicle charging system. Notwithstanding any law to the contrary, no person shall be prevented by any covenant, declaration, bylaw, restriction, deed, lease, term, provision, condition, codicil, contract, or similar agreement, however worded, from installing an electric vehicle charging system on or near the parking stall of any multi-family residential dwelling or townhouse that the person owns. Any provision in any lease, instrument, or contract contrary to the intent of this section shall be void and unenforceable. Every private entity may adopt rules that reasonably restrict the placement and use of electric vehicle charging systems for the purpose of charging electrical vehicles in the parking stalls of any multi-family residential dwelling or townhouse; provided that those restrictions shall not prohibit the placement or use of electric vehicle charging systems altogether. No private entity shall assess or charge any homeowner any fees for the placement of any electric vehicle charging system; provided that the private entity may require reimbursement for the cost of electricity used by such electric vehicle charging system. Any person may place an electric vehicle charging system on or near the parking stall of any multi-family residential dwelling or townhouse unit owned by that person; provided that: The system is in compliance with any rules and specifications adopted pursuant to subsection (b); The system is registered with the private entity of record within thirty days of installation; If the system is placed on a common element or limited common element as defined by a project's declaration, the homeowner shall first obtain the consent of the private entity; provided further that such consent shall be given if the homeowner agrees in writing to: Comply with the private entity's design specification for the installation of the system; Engage a duly licensed contractor to install the system; and 12096859.2 Within fourteen days of approval of the system by the private entity, provide a certificate of insurance naming the private entity as an additional insured on the homeowner's insurance policy. If an electric vehicle charging system is placed on a common element or limited common element: The owner and each successive owner of the parking stall on which or near where the system is placed shall be responsible for any costs for damages to the system, common elements, limited common elements, and any adjacent units, arising or resulting from the installation, maintenance, repair, removal, or replacement of the system. The repair, maintenance, removal, and replacement responsibilities shall be assumed by each successive owner until the electric vehicle charging system has been removed from the common elements or limited common elements. The owner and each successive owner shall at all times have and maintain a policy of insurance covering the obligations of the owner under this paragraph and shall name the private entity as an additional insured under the policy; and The owner and any successive owner of the parking stall on which or near where the system is placed shall be responsible for removing the electric vehicle charging system if reasonably necessary or convenient for the repair, maintenance, or replacement of the common elements or limited common elements. For the purpose of this section: “Electric vehicle charging system” means a system that is designed in compliance with Article 625 of the National Electrical Code and delivers electricity from a source outside an electric vehicle into one or more electric vehicles. An electric vehicle charging system may include several charge points simultaneously connecting several electric vehicles to the system. “Private entity” means any association of homeowners, community association, condominium association, cooperative, or any other nongovernmental entity with covenants, bylaws, and administrative provisions with which a homeowner's compliance is required. §196-8.5 Placement of clotheslines (a) Notwithstanding any law to the contrary, no person shall be prevented by any covenant, declaration, bylaws, restriction, deed, lease, term, provision, condition, codicil, contract, or similar binding agreement, however worded, from installing a clothesline on any single-family residential dwelling or townhouse that the person owns. Any provision in 12096859.2 any lease, instrument, or contract contrary to the intent of this section shall be void and unenforceable. (b) Every private entity may adopt rules that reasonably restrict the placement and use of clotheslines for the purpose of drying clothes on the premises of any single-family residential dwelling or townhouse; provided that those restrictions do not prohibit the use of clotheslines altogether. No private entity shall assess or charge any homeowner any fees for the placement of any clothesline. (c) For the purposes of this section: “Clothesline” means a rope, cord, wire, or similar device on which laundry is hung to dry. “Private entity” means any association of homeowners, community association, condominium association, cooperative, or any other nongovernmental entity with covenants, bylaws, and administrative provisions with which the homeowner's compliance is required. §196-9 Energy efficiency and environmental standards for state facilities, motor vehicles, and transportation fuel. Each agency is directed to implement, to the extent possible, the following goals during planning and budget preparation and program implementation. With regard to buildings and facilities, each agency shall: Design and construct buildings meeting the Leadership in Energy and Environmental Design silver or two green globes rating system or another comparable state‑approved, nationally recognized, and consensus‑based guideline, standard, or system, except when the guideline, standard, or system interferes or conflicts with the use of the building or facility as an emergency shelter; Incorporate energy‑efficiency measures to prevent heat gain in residential facilities up to three stories in height to provide R-19 or equivalent on roofs, R-ll or equivalent in walls, and high-performance windows to minimize heat gain and, if air conditioned, minimize cool air loss. R-value is the constant time rate resistance to heat flow through a unit area of a body induced by a unit temperature difference between the surfaces. R-values measure the thermal resistance of building envelope components such as roof and walls. The higher the R-value, the greater the resistance to heat flow. Where possible, buildings shall be oriented to maximize natural ventilation and day-lighting without heat gain and to optimize solar for water heating. This provision shall apply to new residential facilities built using any portion of state funds or located on state lands; Install solar water heating systems where it is cost-effective, based on a comparative analysis to determine the cost-benefit of using a conventional water heating system or a solar water heating system. The analysis shall be based on the projected life cycle costs to purchase and operate the water heating system. If the life cycle analysis is positive, the facility shall 12096859.2 incorporate solar water heating. If water heating entirely by solar is not cost-effective, the analysis shall evaluate the life cycle, cost-benefit of solar water heating for preheating water. If a multi-story building is centrally air conditioned, heat recovery shall be employed as the primary water heating system. Single family residential clients of the department of Hawaiian home lands and any agency or program that can take advantage of utility rebates shall be exempted from the requirements of this paragraph so they may continue to qualify for utility rebates for solar water heating; Implement water and energy efficiency practices in operations to reduce waste and increase conservation; Incorporate principles of waste minimization and pollution prevention, such as reducing, revising, and recycling as a standard operating practice in programs, including programs for waste management in construction and demolition projects and office paper and packaging recycling programs; Use life cycle cost-benefit analysis to purchase energy efficient equipment such as ENERGY STAR products and use utility rebates where available to reduce purchase and installation costs; and Procure environmentally preferable products, including recycled and recycled-content, bio-based, and other resource-efficient products and materials. With regard to motor vehicles and transportation fuel, each agency shall: Comply with Title 10, Code of Federal Regulations, Part 490, Subpart C, "Mandatory State Fleet Program", if applicable; Comply with all applicable state laws regarding vehicle purchases; Once federal and state vehicle purchase mandates have been satisfied, purchase the most fuel-efficient vehicles that meet the needs of their programs; provided that life cycle cost-benefit analysis of vehicle purchases shall include projected fuel costs; Purchase alternative fuels and ethanol blended gasoline when available; Evaluate a purchase preference for biodiesel blends, as applicable to agencies with diesel fuel purchases; Promote efficient operation of vehicles; Use the most appropriate minimum octane fuel; provided that vehicles shall use 87octane fuel unless the owner's manual for the vehicle states otherwise or the engine experiences knocking or pinging; Beginning with fiscal year 2005-2006 as the baseline, collect and maintain, for the life of each vehicle acquired, the following data: 12096859.2 Vehicle acquisition cost; United States Environmental Protection Agency rated fuel economy; Vehicle fuel configuration, such as gasoline, diesel, flex-fuel gasoline/E85, and dedicated propane; Actual in-use vehicle mileage; Actual in-use vehicle fuel consumption; and Actual in-use annual average vehicle fuel economy; and Beginning with fiscal year 2005-2006 as the baseline with respect to each agency that operates a fleet of thirty or more vehicles, collect and maintain, in addition to the data in paragraph (8), the following: Information on the vehicles in the fleet, including vehicle year, make, model, gross vehicle weight rating, and vehicle fuel configuration; Fleet fuel usage, by fuel; Fleet mileage; and Overall annual average fleet fuel economy and average miles per gallon of gasoline and diesel. §196-10 Hawaii renewable hydrogen program. There is established, within the department of business, economic development, and tourism, a Hawaii renewable hydrogen program to manage the State's transition to a renewable hydrogen economy. The program shall design, implement, and administer activities that include: (1) Strategic partnerships for the research, development, testing, and deployment of renewable hydrogen technologies; (2) Engineering and economic evaluations of Hawaii's potential for renewable hydrogen use and near-term project opportunities for the State's renewable energy resources; (3) Electric grid reliability and security projects that will enable the integration of a substantial increase of electricity from renewable energy resources on the island of Hawaii; (4) Hydrogen demonstration projects, including infrastructure for the production, storage, and refueling of hydrogen vehicles; 12096859.2 (5) A statewide hydrogen economy public education and outreach plan focusing on the island of Hawaii, to be developed in coordination with Hawaii's public education institutions; (6) Promotion of Hawaii's renewable hydrogen resources to potential partners and investors; (7) A plan, for implementation during the years 2007 to 2010, to more fully deploy hydrogen technologies and infrastructure capable of supporting the island of Hawaii's energy needs, including: (A) Expanded installation of hydrogen production facilities; (B) Development of integrated energy systems, including hydrogen vehicles; (C) Construction of additional hydrogen refueling stations; and (D) Promotion of building design and construction that fully incorporates clean energy assets, including reliance on hydrogen-fueled energy generation; (8) A plan, for implementation during the years 2010 to 2020, to transition the island of Hawaii to a hydrogen-fueled economy and to extend the application of the plan throughout the State; and (9) Evaluation of policy recommendations to: (A) Encourage the adoption of hydrogen-fueled vehicles; (B) Continually fund the hydrogen investment capital special fund; and (C) Support investment in hydrogen infrastructure, including production, storage, and dispensing facilities. §196-10.5 Hawaii clean energy initiative program (a) There is established within the department of business, economic development, and tourism, a Hawaii clean energy initiative program to manage the State's transition to a clean energy economy. The clean energy program shall design, implement, and administer activities that include: Strategic partnerships for the research, development, testing, deployment, and permitting of clean and renewable technologies; 12096859.2 Engineering and economic evaluations of Hawaii's potential for near-term project opportunities for the State's renewable energy resources; Electric grid reliability and security projects that will enable the integration of a substantial increase of electricity from renewableenergy resources; A statewide clean energy public education and outreach plan to be developed in coordination with Hawaii's institutions of public education; Promotion of Hawaii's clean and renewable resources to potential partners and investors; A plan, to be implemented from 2011 to 2030, to transition the State to a clean energy economy; and A plan, to be implemented from 2011 to 2030, to assist each county in transitioning to a clean energy economy. (b) (c) Prior to the initiation of any activities authorized under subsection (a), the department of business, economic development, and tourism shall develop a plan of action with the intent of promoting effective prioritization and focusing of efforts consistent with the State's energy programs and objectives. The department of business, economic development, and tourism shall submit a report to the legislature no later than twenty days prior to the convening of each regular session on the status and progress of new and existing clean energy initiatives. The report shall also include: (1) The spending plan of the Hawaii clean energy initiative program; (2) All expenditures of energy security special fund moneys; and (3) The targeted markets of the expenditures, including reasons for selecting those markets, the persons to be served, specific objectives of the program, and program expenditures, including measurable outcomes. §196-11 Definitions. As used in this part: "Acquisition" means acquiring by contract supplies or services, including construction, by and for the use of the State through purchase or lease, whether the supplies or services are already in existence or must be created, developed, demonstrated, or evaluated. 12096859.2 Acquisition begins at the point when agency needs are established and includes the description of requirements to satisfy agency needs, solicitation and selection of sources, award of contracts, contract financing, contract performance, contract administration, and those technical and management functions directly related to the process of fulfilling agency needs by contract. "Agency" means any executive department, independent commission, board, bureau, office, or other establishment of the State, or any quasi-public institution that is supported in whole or in part by state funds. "Commissioning" means a quality-oriented process, which takes place during design and construction, for achieving, verifying, and documenting that the performance of facilities, systems, and assemblies meets defined objectives and criteria with regards to energy conservation design strategies and the energy performance of buildings. "Energy performance contract" shall have the same meaning as in section 36-41(d), and shall additionally include commissioning and retro-commissioning. "ENERGY STAR" means a labeling program introduced by the United States Environmental Protection Agency in 1992 as a voluntary labeling program designed to identify and promote energy-efficient products, in order to reduce carbon dioxide emissions. "Exempt facility" or "exempt mobile equipment" means a facility or mobile equipment for which an agency utilizes criteria established by the energy resources coordinator to determine that compliance with this part is not practical. "Facility" means a building or buildings or similar structure owned or leased by, or otherwise under the jurisdiction of, an agency. "Life-cycle cost-effective" means the life-cycle costs of a product, project, or measure that are estimated to be equal to or less than the base case, i.e., current or standard practice or product. "Life-cycle costs" means the sum of the present values of investment costs, capital costs, installation costs, energy costs, operating costs, maintenance costs, and disposal costs, over the lifetime of the project, product, or measure. "Mobile equipment" means any state-owned vessel, aircraft, or off-road vehicle. "Renewable energy" means energy produced by solar, energy conserved by passive solar design/daylighting, ocean thermal, wind, wave, geothermal, waste-to-energy, or biomass power. "Renewable energy technology" means technology that uses renewable energy to provide light, heat, cooling, or mechanical or electrical energy for use in facilities or other 12096859.2 activities. The term includes the use of integrated whole-building designs that rely upon renewable energy resources, including passive solar design/daylighting. "Retro-commissioning" means a quality-oriented process, which takes place after systems have been placed in operation, for achieving, verifying, and documenting that the performance of facilities, systems, and assemblies perform as closely as possible to defined performance criteria, with regards to energy conservation design strategies and the energy performance of buildings. "Source energy" means the energy that is used at a site and consumed in producing and delivering energy to a site, including power generation, transmission, and distribution losses, and that is used to perform a specific function, such as space conditioning, lighting, or water heating. "Utility" means a public utility as defined in section 269-1. Utility includes federally owned nonprofit producers, county organizations, and investor or privately owned producers regulated by the state or federal government, cooperatives owned by members and providing services mostly to their members, and other nonprofit state and county agencies serving in this capacity. "Utility energy-efficiency service" means demand-side management services provided by a utility to improve the efficiency of use of the commodity, such as electricity and gas being distributed. Services may include energy efficiency and renewable energy project auditing, financing, design, installation, operation, maintenance, and monitoring. §196-19 Life-cycle cost analysis. Agencies shall use life-cycle cost analysis in making decisions about their investments in products, services, construction, and other projects to lower the State's costs and to reduce energy and water consumption. Where appropriate, agencies shall consider the life-cycle costs of combinations of projects, particularly to encourage bundling of energy efficiency projects with renewable energy projects. Agencies shall retire inefficient equipment on an accelerated basis where replacement results in lower life-cycle costs. Agencies that minimize life-cycle costs with efficiency measures shall be recognized in their scorecard evaluations established under section 196-17(a). §196-20 REPEALED. 12096859.2 §196-21 Financing mechanisms. (a) Agencies shall maximize their use of available alternative financing contracting mechanisms, including energy-savings contracts, when life-cycle cost-effective, to reduce energy use and cost in their facilities and operations. Energy-savings contracts shall include: (1) Energy performance contracts; (2) Municipal lease and purchase financing; and (3) Utility energy‑efficiency service contracts. Energy-savings contracts shall provide significant opportunities for making state facilities more energy efficient at no net cost to taxpayers. (b) Agencies that perform energy efficiency and renewable energy system retrofitting may continue to receive budget appropriations for energy expenditures at an amount that will not fall below the pre-retrofitting energy budget but will rise in proportion to any increase in the agency's overall budget for the duration of the performance contract or project payment term. A portion of the moneys saved through efficiency and renewable energy system retrofitting shall be set aside to pay for any costs directly associated with administering energy efficiency and renewable energy system retrofitting programs incurred by the agency. (c) Notwithstanding any law to the contrary relating to the award of public contracts, any agency desiring to enter into an energy performance contract shall do so in accordance with the following provisions: 12096859.2 (1) The agency shall issue a public request for proposals, advertised in the same manner as provided in chapter 103D, concerning the provision of energy‑efficiency services or the design, installation, operation, and maintenance of energy equipment. The request for proposals shall contain terms and conditions relating to submission of proposals, evaluation, and selection of proposals, financial terms, legal responsibilities, and other matters as may be required by law and as the agency determines appropriate; (2) Upon receiving responses to the request for proposals, the agency shall select the most qualified proposal or proposals and may base its determination on the basis of the experience and qualifications of the proposers, the technical approach, the financial arrangements, the overall benefits to the agency, or other factors determined by the agency to be relevant and appropriate; (3) The agency thereafter may negotiate and enter into an energy performance contract with the person or company whose proposal is selected as the most qualified based on the criteria established by the agency; (4) The term of any energy performance contract entered into pursuant to this section shall not exceed twenty years; (5) Any energy performance contract may provide that the agency ultimately shall receive title to the energy system being financed under the contract; and (6) Any energy performance contract shall provide that total payments shall not exceed total savings. §196-22 State energy projects. State energy projects may be implemented under this chapter with the approval of the comptroller and the director of finance or their designees. In addition, this section shall be construed to provide the greatest possible flexibility to agencies in structuring agreements so that economic benefits and existing energy incentives may be used and maximized, and financing and other costs to agencies may be minimized. The specific terms of energy performance contracting under section 36-41 may be altered if deemed advantageous to the agency and approved by the director of finance and the comptroller. §196-23 Energy efficient products. (a) Agencies shall select, when life-cycle cost-effective, ENERGY STAR and other energy efficient products when acquiring energy‑using products. For product groups where ENERGY STAR labels are not yet available, agencies may select products that are in the upper twenty-five per cent of energy efficiency as designated by the United States Department of Energy, Office of Energy Efficiency and Renewable Energy, federal energy management program. (b) Agencies shall incorporate energy‑efficient criteria consistent with designated energy‑efficiency levels into product specification language developed for all purchasing procedures. (c) The State shall consider the creation of financing agreements with private sector suppliers to provide private funding to offset higher up-front costs of efficient products. (d) Agencies entering into leases, including the renegotiation or extension of existing leases, shall: (1) 12096859.2 Incorporate lease provisions that encourage energy and water efficiency wherever life-cycle cost-effective. Build-to-suit lease solicitations shall contain criteria encouraging sustainable design and development, energy efficiency, and verification of facility performance; (2) Include a preference for facilities having an ENERGY STAR building label in their selection criteria for acquiring leased facilities; and (3) Encourage lessors to apply for an ENERGY STAR building label and to explore and implement projects that will reduce costs to the State, including projects carried out through the lessors' energy-savings contracts. §196-30 Public buildings; benchmarks; retro-commissioning guidelines; energy savings performance contracts. By December 31, 2010, each state department with responsibilities for the design and construction of public buildings and facilities shall benchmark every existing public building that is either larger than five thousand square feet or uses more than eight thousand kilowatt-hours of electricity or energy per year and shall use the benchmark as a basis for determining the State's investment in improving the efficiency of its own building stock. Benchmarking shall be conducted using the ENERGY STAR portfolio management or equivalent tool. The energy resources coordinator shall provide training to affected departments on the ENERGY STAR portfolio management or equivalent tool. Public buildings shall be retro-commissioned no less often than every five years. The energy resources coordinator shall establish retro-commissioning guidelines by January 1, 2010. Departments may enter into energy savings performance contracts with a third party to cover the capital costs of energy-efficiency measures and distributed generation provided the terms of the energy savings performance contracts conform to the benchmark standard. The comptroller may review and exempt specific projects as appropriate to take into account cost-effectiveness. (d) Energy savings performance contracts shall be executed according to state guidelines issued by the comptroller, and the contracts shall be reviewed by the comptroller. To expedite energy savings performance contracting for public buildings, the department of accounting and general services shall develop a master energy savings performance contracts agreement that any department may use to contract with an energy savings performance contracts provider for energyefficiency and renewable energy services. For existing public buildings that undergo a major retrofit or renovation, the department or departments responsible for design and construction shall make investments in efficiency; provided that the cost of the measures shall be recouped within twenty years. 12096859.2 §196-41 State support for achieving renewable portfolio standards. (a) The department of land and natural resources and department of business, economic development, and tourism shall facilitate the private sector's development of renewable energy projects by supporting the private sector's attainment of the renewable portfolio standards in section 269-92. Both departments shall provide meaningful support in areas relevant to the mission and functions of each department as provided in this section, as well as in other areas the directors of each department may deem appropriate. (b) The department of land and natural resources shall: (c) (1) Develop and publish a catalog by December 31, 2006, and every five years thereafter, of potential sites for the development of renewable energy; and (2) Work with electric utility companies and with other renewable energy developers on all applicable planning and permitting processes to expedite the development of renewable energy resources. The department of business, economic development, and tourism shall: (1) Develop a program to maximize the use of renewable energy and costeffective conservation measures by state government agencies; (2) Work with federal agencies to develop as much research, development and demonstration funding, and technical assistance as possible to support Hawaii in its efforts to achieve its renewable portfolio standards; and (3) Biennially, beginning in January 2006, issue a progress report to the governor and legislature. §196-42 State support for achieving alternate fuels standards. The State shall facilitate the development of alternate fuels and support the attainment of a statewide alternate fuels standard of ten per cent of highway fuel demand to be provided by alternate fuels by 2010, fifteen per cent by 2015, twenty per cent by 2020, and thirty per cent by 2030. For purposes of the alternate fuels standard, ethanol produced from cellulosic materials shall be considered the equivalent of two and one-half gallons of noncellulosic ethanol. “Alternate fuels” shall have the same meaning as contained in 10 Code of Federal Regulations Part 490; provided that it shall also include liquid or gaseous fuels produced from renewable feedstocks such as organic wastes, or from water using electricity from renewable energy sources. 12096859.2 §196-61 Definitions As used in this part: “Authority” means the Hawaii green infrastructure authority as established under section 196-63. “Bond” means any bond, note, and other evidence of indebtedness that is issued by the State pursuant to part X of chapter 269. “Clean energy technology” means any technology as defined in section 269-121(b). “Department” means the department of business, economic development, and tourism, or any successor by law. “Director” means the director of business, economic development, and tourism, or the director's designee. “Financing order” means the same as defined in section 269-161. “Financing party” means the same as defined in section 269-161. “Green infrastructure bond fund” means the special fund created pursuant to section 196-67. “Green infrastructure charge” means the on-bill charges for the use and services of the loan program, including the repayment of loans made under the loan program, as authorized by the public utilities commission to be imposed on electric utility customers. “Green infrastructure costs” means costs incurred or to be incurred by the electric utility customers to pay for clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure including, without limitation, the purchase or installation of green infrastructure equipment, programs, and services authorized by the loan program. “Green infrastructure equipment” means infrastructure improvements, equipment, and personal property to be installed to deploy clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure. “Green infrastructure fee” means the same as defined in section 269-161. “Green infrastructure loan program order” means the same as defined in section 269-161. “Green infrastructure property” means the same as defined in section 269-161. “Green infrastructure special fund” means the special fund created pursuant to section 196-65. 12096859.2 “Loan program” and “green infrastructure loans” means the program established by this part and loans made to finance the purchase or installation of green infrastructure equipment for clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure, programs, and services as authorized by the public utilities commission using the proceeds of bonds or other proceeds. § 196-62 Hawaii green infrastructure loan program. There is established a Hawaii green infrastructure loan program, which shall be a loan program as defined under section 39-51. The program shall be administered by the authority on behalf of the department in a manner consistent with chapter 39, part III. This loan program may include loans made to private entities, whether corporations, partnerships, limited liability companies, or other persons, which entities may lease or provide green infrastructure equipment to electric utility customers, as well as direct loans to electric utility customers, on terms approved by the authority. § 196-63 Hawaii green infrastructure authority. There is established the Hawaii green infrastructure authority as an instrumentality of the State comprising five members. The director, the director of finance, and the energy program administrator of the department shall be members of the authority. The governor shall appoint the other two members, pursuant to section 26-34. The director shall be the chairperson of the authority. The authority shall be placed within the department for administrative purposes, pursuant to section 26-35; provided that until the authority is duly constituted, the department may exercise all powers reserved to the authority and shall perform all responsibilities of the authority. § 196-64 Functions, powers, and duties of the authority. (a) In the performance of, and with respect to the functions, powers, and duties vested in the authority by this part, the authority, as directed by the director and in accordance with a green infrastructure loan program order or orders under section 269-171 or an annual plan submitted by the authority pursuant to this section, as approved by the public utilities commission may: (1) Make loans and expend funds to finance the purchase or installation of green infrastructure equipment for clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure, programs, and services; (2) Hold and invest moneys in the green infrastructure special fund in investments as permitted by law and in accordance with approved investment guidelines established in one or more orders issued by the public utilities commission pursuant to section 269-171; 12096859.2 (3) Hire employees necessary to perform its duties, including an executive director. The executive director shall be appointed by the authority, and the employees' positions, including the executive director's position, shall be exempt from chapter 76; (4) Enter into contracts for the service of consultants for rendering professional and technical assistance and advice, and any other contracts that are necessary and proper for the implementation of the loan program; (5) Enter into contracts for the administration of the loan program, without the necessity of complying with chapter 103D; (6) Establish loan program guidelines to be approved in one or more orders issued by the public utilities commission pursuant to section 269-171 to carry out the purposes of this part; (7) Be audited at least annually by a firm of independent certified public accountants selected by the authority, and provide the results of this audit to the department and the public utilities commission; and (8) Perform all functions necessary to effectuate the purposes of this part. (b) The authority shall submit to the public utilities commission an annual plan for review and approval no later than ninety days prior to the start of each fiscal year. The annual plan submitted by the authority shall include the authority's projected operational budget for the succeeding fiscal year. § 196-65 Hawaii green infrastructure special fund. (a) There is established the Hawaii green infrastructure special fund into which shall be deposited: (1) The proceeds of bonds net of issuance costs and reserves or overcollateralization amounts; (2) Green infrastructure charges received for the use and services of the loan program, including the repayment of loans made under the loan program; (3) All other funds received by the department or the authority and legally available for the purposes of the green infrastructure special fund; 12096859.2 (4) Interest earnings on all amounts in the green infrastructure special fund; and (5) Such other moneys as shall be permitted by an order of the public utilities commission. The Hawaii green infrastructure special fund shall not be subject to section 37-53. Any amounts received from green infrastructure charges or any other net proceeds earned from the allocation, use, expenditure, or other disposition of amounts approved by the public utilities commission and deposited or held in the Hawaii green infrastructure special fund in excess of amounts necessary for the purposes of subsection (b) shall be credited to electric utility customers as provided in a green infrastructure loan program order or orders. Funds that are transferred back to the electric utility in order to credit electric utility customers under this subsection shall not be considered revenue of the electric utility and shall not be subject to state or county taxes. Moneys in the Hawaii green infrastructure special fund may be used, subject to the approval of the public utilities commission, for the purposes of: Making green infrastructure loans; Paying administrative costs of the Hawaii green infrastructure loan program; Paying any other costs related to the Hawaii green infrastructure loan program; or Paying financing costs, as defined in section 269-161, to the extent permitted by the public utilities commission in a financing order issued pursuant to section 269-163. The authority may invest funds held in the Hawaii green infrastructure special fund in investments as permitted by law, and in accordance with approved investment guidelines established in one or more orders issued by the public utilities commission pursuant to section 269-171. All amounts in the Hawaii green infrastructure special fund shall be exempt from all taxes and surcharges imposed by the State or the counties. § 196-66 Use of Hawaii green infrastructure special fund; application. (a) The authority shall apply to the public utilities commission for one or more orders to effectuate the Hawaii green infrastructure loan program, pursuant to section 269-170. Nothing herein shall preclude the department from applying for a financing order, pursuant to section 269-162, prior to the issuance of an order or orders to effectuate the Hawaii green infrastructure loan program under section 269-171, nor from requesting consolidation of the proceeding for a financing order with such a loan program implementation order. 12096859.2 (b) An application shall be submitted by the authority to the public utilities commission in accordance with section 269-170. (c) In accordance with an approved green infrastructure loan program order or orders, the authority shall utilize the proceeds of bonds and other amounts deposited in the Hawaii green infrastructure special fund pursuant to 196-65, or to the extent permitted by a financing order, to pay financing costs, as defined in section 269-161. (d) Within the order or orders issued by the public utilities commission under section 269-171, the authority shall obtain approval from the public utilities commission requiring the electric utilities to serve as agents to bill and collect the green infrastructure charge imposed to repay green infrastructure costs and transfer all green infrastructure charges collected to the authority on behalf of the department. Notwithstanding anything to the contrary, electric utilities shall not be obligated to bill, collect, or remit green infrastructure charges from nonutility customers. § 196-67 Hawaii green infrastructure bond fund. (a) There is established the Hawaii green infrastructure bond fund as a special fund into which all proceeds of the green infrastructure fee established pursuant to section 269-166 and any other proceeds of green infrastructure property shall be paid. The Hawaii green infrastructure bond fund may also receive other moneys as the department may determine and as provided in a financing order, including, without limitation, green infrastructure charges. (b) Moneys in the Hawaii green infrastructure bond fund shall be impressed with the lien created by, and shall be used solely for purposes set forth in, section 269-164. Upon payment or defeasance of all bonds and financing costs, moneys in the fund, at the direction of the department, may be transferred into the Hawaii green infrastructure special fund established pursuant to section 196-65 or other purpose as the department shall specify. (c) The Hawaii green infrastructure bond fund shall be audited at least annually by a firm of independent certified public accountants selected by the department, and the results of this audit shall be provided to the department and the public utilities commission. (d) Pursuant to section 39-68, the department shall appoint a trustee to receive, hold, and disburse all amounts required to be held in the Hawaii green infrastructure bond fund upon terms and conditions as set forth in a certificate, indenture, or trust agreement. The Hawaii green infrastructure bond fund shall not be subject to section 37-53. § 196-68 Compliance with revenue bond law. 12096859.2 For purposes of assuring conformity of and compliance with part III of chapter 39, it is determined as follows: For purposes of section 39-51, “revenues” shall include the green infrastructure fee and the proceeds of green infrastructure property; “loan program” shall include the loan program authorized under section 196-62; and “undertaking” shall include financing of the loan program through the issuance of green infrastructure revenue bonds; In addition and supplemental to any covenants recognized under section 39-60, any resolution, certificate, or indenture approved by the department may have additional or alternative covenants as may be consistent with this chapter, and the department may enter into a trust indenture, servicing agreement, or other financing documents having terms and conditions consistent with the financing order issued under section 269-163; In addition and supplemental to the power to impose rates, rentals, fees, or charges required under section 39-61, the department shall impose, adjust, and collect the green infrastructure fee as provided in section 269-166 and the financing order issued pursuant thereto; and In addition and supplemental to the uses specified in section 39-62, the green infrastructure fee shall be applied as provided in this chapter, the financing order, the certificate issued by the department, and any financing documents executed by the department in connection with the bonds. § 196-69 Reporting; annual report. The authority shall submit a report to the legislature on the authority's activities in administering the loan program no later than twenty days prior to the convening of each regular session beginning with the regular session of 2015. The report shall include a description and uses of the loan program; summary information and analytical data concerning the implementation of the loan program; summary information and analytical data concerning deployment of clean energy technology, demand response technology, and energy use reduction and demand side management infrastructure, programs, and services; and repayments made or credits provided to electric utility customers under this part or chapter 269, part X. § 196-70 Severability. If any provision of this part is held to be invalid or is superseded, replaced, repealed, or expires for any reason: (1) 12096859.2 That occurrence shall not affect any action allowed under this part that is taken prior to that occurrence by the public utilities commission, an electric utility, the department, the authority, a bondholder, or any financing party, and any such action shall remain in full force and effect; and (2) 12096859.2 The validity and enforceability of the rest of this part shall remain unaffected. Idaho (back to top) § 33-356. School building design and energy efficiency (1) (a) School districts may seek to qualify for a reduction in building replacement value calculation for qualified, newly constructed public school buildings pursuant to section 331019(4), Idaho Code. (b) Each school district that seeks to qualify a newly constructed building for the building replacement value calculation provided for in section 33-1019(4), Idaho Code, shall use integrated design practices and fundamental commissioning in the design and construction of such building. (c) Following the first year of operations of a building that was certified in accordance with the provisions of subsection (5)(a) of this section, the germane school district shall perform or cause to be performed an annual optimization review of the qualifying building. Such annual optimization review shall be performed in a manner that is consistent with rules promulgated pursuant to this section. Such school district shall thereafter perform or cause to be performed an annual optimization review each year it seeks to qualify such building for the building replacement value calculation provided in section 33-1019(4), Idaho Code. (2) For purposes of this section, the following terms shall have the following meanings: (a) “Fundamental commissioning” means the use of a third party to review building design, building system specifications and to specify and monitor preoccupancy system testing to ensure functional integration of specified systems and functional operation of systems at the completion of a project. (b) “Integrated design” means a process to develop consensus among the project team and owner as to the energy savings and building performance goals of the project and to identify design strategies to achieve those goals, including documentation strategies for design decisions to ensure accurate implementation of design through construction. (3) It shall be the duty and responsibility of the administrator of the division of building safety to provide assistance to school districts to ensure school districts can access the technical and educational support needed to implement the processes of integrated design and fundamental commissioning. It shall further be the duty and responsibility of the administrator of the division of building safety to compile and cause to be made available to school districts a list of all third party building commissioning agents in Idaho and contiguous states. The administrator shall ensure that all commissioning agents that appear on such list are certified by the building commissioning association or other similar certifying entity. The administrator shall ensure that such list is updated annually 12096859.2 (4) The administrator of the division of building safety is hereby authorized and directed to promulgate rules in accordance with the provisions of chapter 52, title 67, Idaho Code, that provide the guidance, education and technical information necessary for school districts to implement the processes of integrated design and fundamental commissioning. The administrator is authorized to expand upon the terms defined in subsection (2) of this section, and to provide additional definitions as needed. In addition, the administrator shall promulgate rules governing annual optimization review and evaluation of germane building systems to ensure optimal performance of such systems and maximum energy savings and building performance. Such rules shall include, but not be limited to, a definition for the minimum scope of work required for annual optimization. (5) (a) The administrator of the division of building safety shall certify to the state department of education when a building has qualified for school building replacement value calculation exclusions as provided for in section 33-1019(4), Idaho Code. As part of such certification, the administrator shall state specifically the school building(s) and the square footage thereof that shall be excluded from the school building replacement value calculations. (b) Following the first year of operations of a building that was certified in accordance with the provisions of subsection (5)(a) of this section, the administrator of the division of building safety shall certify to the state department of education when such building has undergone an annual optimization review as provided in subsection (1)(c) of this section. Such certification shall ensure that the qualifying building meets or exceeds the requirements of annual optimization review rules promulgated pursuant to subsection (4) of this section. 12096859.2 Illinois (back to top) 20 ILCS 3105/ Capital Development Board Act. 20 ILCS 3105/10 The Board has the duties and responsibilities enumerated in Sections 10.01 through 10.20. 20 ILCS 3105/10.04 Construction and repair of buildings; green building. To construct and repair, or contract for and supervise the construction and repair of, buildings under the control of or for the use of any State agency, as authorized by the General Assembly. To the maximum extent feasible, any construction or repair work shall utilize the best available technologies for minimizing building energy costs as determined through consultation with the Department of Commerce and Economic Opportunity. 3130/15. Green Buildings Standards (a) All new State-funded building construction and major renovations of existing State-owned facilities are required to seek LEED, Green Globes, or equivalent certification. (b) All construction and major renovation projects, regardless of size, must achieve the highest level of certification practical within the project budget. (1) New buildings and major renovations of less than 10,000 square feet must meet the highest standard of the Leadership in Energy and Environmental Design's rating system for new commercial construction and major renovation projects, as established by the United States Green Building Council, or an equivalent standard, including, but not limited to, the Green Building Initiative's Green Globes USA design program. USGBC LEED, GBI Green Globes, or the equivalent certification is not required. (2) New buildings and major renovations of 10,000 square feet or more must achieve the silver building rating of the Leadership in Energy and Environmental Design's rating system for new commercial construction and major renovation projects, as established by the United States Green Building Council, or an equivalent standard, including, but not limited to, a two-globe rating in the Green Globes USA design program. USGBC LEED, GBI Green Globes, or the equivalent certification is required. (c) Exemptions to these standards are buildings that are not “comfort” conditioned as determined by the Board. However, the project design team must document and incorporate all appropriate sustainable building methods, strategies, and technologies in the final design. (d) State agencies and the project design team may apply to the Board for a waiver from these standards. 12096859.2 (e) Waivers shall be granted by the Board or an appropriate agency when the applicant can demonstrate and document: (1) An unreasonable financial burden, taking into account the operating and construction costs over the life of the building and the total cost of ownership of the building. (2) An unreasonable impediment to construction. (3) The standards would impair the principal function of the building. (4) The standards would compromise the historic nature of the structure. Documentation on the submittal must include at a minimum: (1) Life cycle cost analysis. (2) Energy modeling. The design team must provide the documentation for the new project to confirm that LEED, Green Globes, or the equivalent construction standards have been followed. (f) In addition to any required LEED, Green Globes, or the equivalent criteria, the Board shall require that all projects referenced in subsection (a) implement at least one LEED alternative transportation criterion for public transportation or bicycle access. (g) The green building standards contained in this Act shall be analyzed and evaluated by the Board 5 years after the effective date of this Act or upon the completion of 10 Board green projects, whichever comes first. 20 ILCS 605/605‑981 Green cities grant program. Subject to appropriation, the Department may establish and administer a program to make grants to municipalities whose buildings conform with nationally recognized and accepted green building guidelines, standards, or systems. Grants may be used for new construction, existing buildings, commercial interiors, core and shell development, homes, schools, or neighborhood development. The grant program shall be permissive and subject to appropriation by the General Assembly. Municipalities receiving grant moneys under this Section are encouraged to use local small businesses within the municipality whenever possible. 30 ILCS 737/ Green Neighborhood Grant Act. 30 ILCS 737/1 Short title. This Act may be cited as the Green Neighborhood Grant Act. 12096859.2 30 ILCS 737/5 Eligibility. A private development is eligible for a Green Neighborhood Award Grant if the private development: (1) achieves certification under nationally recognized and accepted Leadership in Energy and Environmental Design for Neighborhood Development ("LEED‑ND") green building and sensible growth guidelines, standards, or systems; and (2) is selected under Section 10 by the Department of Commerce and Economic Opportunity. 30 ILCS 737/10 Grant proposals. By December 31, 2008, and each December 31 thereafter, the Department of Commerce and Economic Opportunity may, subject to appropriation, issue a request for proposals from model private developments that have been designated by the U.S. Green Building Council, the Congress for the New Urbanism, and the National Resources Defense Council as achieving LEED‑ND certification. Subject to appropriation, the Department may offer no more than 3 Green Neighborhood Award Grants for the reimbursement of up to 1.5% of the total development cost of the selected projects. No more than one of the 3 eligible Green Neighborhood Award Grants may be set aside for an applicant from a municipality with a residential population greater than 1,000,000. 30 ILCS 737/15 Implementing rules. The Department of Commerce and Economic Opportunity shall have the authority to adopt rules to implement this Act. 30 ILCS 737/99 Effective date. This Act takes effect upon becoming law. 105 ILCS 230/ School Construction Law. 105 ILCS 230/5‑40 Supervision of school construction projects; green projects. The Capital Development Board shall exercise general supervision over school construction projects financed pursuant to this Article. School districts, however, must be allowed to choose the architect and engineer for their school construction projects, and no project may be disapproved by the State Board of Education or the Capital Development Board solely due to a school district's selection of an architect or engineer. 12096859.2 With respect to those school construction projects for which a school district first applies for a grant on or after July 1, 2007, the school construction project must receive certification from the United States Green Building Council's Leadership in Energy and Environmental Design Green Building Rating System or the Green Building Initiative's Green Globes Green Building Rating System or must meet green building standards of the Capital Development Board and its Green Building Advisory Committee. With respect to those school construction projects for which a school district applies for a grant on or after July 1, 2009, the school construction project must receive silver certification from the United States Green Building Council's Leadership in Energy and Environmental Design Green Building Rating System unless all of the following are met: the application submitted can be categorized as a capital need prioritized under item (1) of Section 5-30 of this Law; the renovation or replacement school construction project is less than 40% replacement cost, or the project has been granted a waiver by the Capital Development Board in consultation with the State Board of Education in accordance with rules promulgated pursuant to this Law; the school construction project is located in a county that borders the Mississippi River with a population of more than 33,000 and less than 34,000, according to the 2010 decennial census; the school district for which the school construction grant will be issued has no more than 1,100 students, with the relevant school facility housing no more than 700 students; the facilities for which the school construction grant will be used have been condemned as of July 23, 2012; and the application for the school construction grant has been approved prior to the effective date of this amendatory Act of the 98th General Assembly. Executive Order to Reduce Energy Consumption in State Facilities WHEREAS, it is critical to use energy in the most efficient way possible to save taxpayer money and to protect our climate and natural resources; and WHEREAS, it is vital to reduce energy consumption and produce cost savings in the operations of all agencies, offices, divisions, departments, bureaus, boards and commissions directly responsible to the Governor (hereinafter “agencies”); and WHEREAS, agencies control hundreds of buildings throughout the State and spend nearly 120 million dollars a year on energy for their facilities; and WHEREAS, improved energy efficiency is the most cost effective and fastest option for the State to lower its energy bills; and 12096859.2 WHEREAS, there is currently no statewide agency coordinating energy savings activities and thus the State does not implement consistent facilities management policies and procedures to reduce energy consumption or to take full advantage of available energy efficiency incentives and economies of scale that would produce further cost savings; and WHEREAS, there is currently no statewide agency compiling energy and utility usage data and thus the State does not have a comprehensive and standardized platform with which to benchmark its historic and current usage patterns, identify and prioritize locations for energy efficiency upgrades, or document the impact of ongoing energy efficiency and cost control policies and practices; and WHEREAS, Article V, Section 11 of the Constitution of the State of Illinois authorizes the Governor to reassign functions among or reorganize executive agencies, which are directly responsible to him by means of an Executive Order; and WHEREAS, Section 3.2 of the Executive Reorganization Implementation Act, 15 ILCS 15/3.2, provides that “Reorganization” includes the “transfer of . . . functions” from one agency to another and “the abolition of the whole or any part of any agency which does not have, or upon the taking effect of reorganization will not have, any functions”; THEREFORE, pursuant to the powers vested in me by Article V, Section 11 of the Illinois Constitution, I hereby order: I. TRANSFER OF FUNCTIONS A. The Department of Central Management Services shall be responsible for implementing a program to increase energy efficiency, track and reduce energy usage, and improve the procurement of energy for all State-owned and Stateleased facilities for all agencies. Specifically, the Director of the Department of Central Management Services or his or her designee shall: 1. 12096859.2 Chair an Energy Efficiency Committee, consisting of the Directors of the Department of Central Management Services and the Department of Commerce and Economic Opportunity and the Executive Director of the Capital Development Board and/or their designees, that shall meet monthly to identify energy efficiency projects for State-owned or Stateleased facilities and oversee the procurement and completion of those projects. The Energy Efficiency Committee shall: a. Oversee energy audits to be conducted at State-owned or Stateleased facilities. b. Oversee the subsequent implementation of the recommendations contained in the energy audits in the most cost-effective manner available. c. Enter into contracts for equipment or services designed to decrease energy consumption in State-owned or State-leased facilities or equipment, with preference given to contracts that can be costeffectively implemented with a maximum 10-year payback period. d. B. Coordinate with the Office of Management and Budget to ensure that State agencies establish individual budget line items for acceptance of energy efficiency incentives and to ensure that State agencies leverage the maximum amount of energy efficiency incentives available through State and private programs. 2. Provide an annual report to the Governor, outlining the environmental results, reduction in consumption and cost savings to the State. 3. Develop and maintain such data management systems as are necessary to document energy usage in a manner consistent with the need to purchase supplies in the most cost-effective manner and to support the development of strategies to maximize the operational efficiency of the State’s facilities. 4. Take the action necessary to enable the State to take advantage of bulk purchases of energy to maximize the State's purchasing power. 5. Obtain from all agencies a comprehensive listing of all electricity, natural gas, water and sewer accounts, along with other site-identifying information, and work directly with the appropriate utility companies to arrange for ongoing monthly electronic download or dual distribution to both the agencies and the Energy Efficiency Committee of the account data, including the necessary usage and rate. 6. At the sole discretion and direction of the Director of the Department of Central Management Services, effective July 1, 2009, initiate and receive annual appropriations for and pay all utility bills for State-owned and State-leased facilities for all agencies from the Facilities Management Revolving Fund and bill agencies for reimbursement. The statutory powers, duties, rights, responsibilities and liabilities regarding facilities management and decreasing energy consumption, contained in this Executive Order, derive from the following named statutory provisions: Department on Aging: 20 ILCS 405/405-300. Department of Agriculture: 20 ILCS 205/205-405; 20 ILCS 210/2; 510 ILCS 10/1(a). Arts Council: 20 ILCS 3915/6; 20 ILCS 405/405-300. Capital Development Board: 20 ILCS 3105/9.01. Department of Central Management Services: 20 ILCS 405/405-295, 300, 315; 30 ILCS 605/1 et seq. 12096859.2 Department of Children and Family Services: 20 ILCS 505/1 et seq. Department of Commerce and Economic Opportunity: 20 ILCS 605/605-55. Department of Corrections: 730 ILCS 5/3-2-2(1)(c). Criminal Justice Information Authority: 20 ILCS 405/405-300. Illinois Council on Developmental Disabilities: 20 ILCS 405/405-300. Illinois Deaf and Hard of Hearing Commission: 20 ILCS 405/405-300. Illinois Educational Labor Relations Board: 20 ILCS 405/405-300. Illinois Emergency Management Agency: 20 ILCS 3305/6(c)(3), 7(a)(4), 19; 20 ILCS 3310; 420 ILCS 20/5; 420 ILCS 35/4, 5. Illinois Department of Employment Security: 20 ILCS 5/5-630; 20 ILCS 1005/1005-115, 1005-150; 20 ILCS 1010/2; 20 ILCS 1015/1, 3; 820 ILCS 405/802, 1705. Illinois Environmental Protection Agency: 415 ILCS 5/3.105; 20 ILCS 405/405300. Illinois Finance Authority: 20 ILCS 405/405-300. Department of Financial and Professional Regulation: 20 ILCS 1205; 20 ILCS 2105/2105-15(a)(6); 20 ILCS 1405/1405-5(5); 20 ILCS 3205; 20 ILCS 405/405300. Governor's Office of Management and Budget: 20 ILCS 3005; 20 ILCS 405/405300. Guardianship and Advocacy Commission: 20 ILCS 405/405-300. Department of Healthcare and Family Services: 20 ILCS 2205; 20 ICLS 405/405300. Housing Development Authority: 20 ILCS 405/405-300. Historic Preservation Agency: 20 ILCS 3405 et seq.; 20 ILCS 3430; 5 ILCS 412/5. Department of Human Rights: 775 ILCS 5/7-101; 20 ILCS 405/405- 300. Human Rights Commission: 20 ILCS 405/405-300. Department of Human Services: 20 ILCS 1705/4, 14; 20 ILCS 2405/10, 11; 20 ILCS 1305. Interagency Energy Conservation Committee: 20 ILCS 3953/20(b), (d), and (f) Department of Juvenile Justice: 20 ILCS 405/405-300. Department of Labor: 20 ILCS 1505; 20 ILCS 405/405-300. Labor Relations Board: 20 ILCS 405/405-300. 12096859.2 Illinois Law Enforcement Training and Standards Board: 50 ILCS 705; 50 ILCS 720/2; 20 ILCS 405/405-300 Liquor Control Commission: 20 ILCS 405/405-300. Illinois Lottery Board: 20 ILCS 1605. Illinois Medical District Commission: 70 ILCS 915/2; 20 ILCS 405/405-300. Department of Military Affairs: 20 ILCS 1805/22-2, 22-5, 65; 20 ILCS 1810/1 et seq. Department of Natural Resources: 20 ILCS 801/1-15(c), 5-5; 20 ILCS 805/805210, 805-230, 805-300, 805-305, 805- 500; 20 ILCS 835; 20 ILCS 860; 20 ILCS 862; 20 ILCS 870. Illinois Power Agency: 20 ILCS 405/405-300. Illinois Prisoner Review Board: 20 ILCS 405/405-300. Property Tax Appeal Board: 20 ILCS 405/405-300. Department of Public Health: 20 ILCS 2305/2(f); 20 ILCS 2310/2310-90; 410 ILCS 47/15; 410 ILCS 535/2. Illinois Racing Board: 230 ILCS 5/9; 20 ILCS 405/405-300. Department of Revenue: 20 ILCS 2505/2505-730. Illinois State Board of Investment: 20 ILCS 405/405-300. Office of the State Fire Marshal: 20 ILCS 2905; 20 ILCS 405/405-300. Illinois State Police: 20 ILCS 2605; 20 ILCS 405/405-300. State Retirement Systems: 20 ILCS 405/405-300. Illinois Toll Highway Authority: 605 ILCS 10/1; 605 ILCS 10/8. Department of Transportation: 20 ILCS 2705; 20 ILCS 5/5-630. Department of Veteran Affairs: 20 ILCS 2805/2(2). II. ABOLITIONS As detailed above, in Part I.B.26., certain powers and duties previously held by the Interagency Energy Conservation Committee are contained in this Executive Order. The Interagency Energy Conservation Committee’s remaining powers and duties are duplicative of those handled by other agencies, including but not limited to the Capital Development Board and the Department of Economic Opportunity and Commerce. As such, the Interagency Energy Conservation Committee is abolished and its affairs terminated. III. EFFECT OF TRANSFERS 12096859.2 IV. A. At the sole discretion and direction of the Director of the Department of Central Management Services and in consultation with the Governor’s Office and affected agencies, personnel who are employed by agencies who are assigned to work involving utility payments shall be transferred to the Department of Central Management Services. The rights of the employees, the State and its agencies under the Personnel Code and applicable collective bargaining agreements or under any pension retirement or annuity plan shall not be affected by the Executive Order. B. All books, records, papers, documents, property (real and personal), contracts, and pending business pertaining to the powers, duties, rights and responsibilities transferred by this Executive Order to the Department of Central Management Services shall be delivered to the Department of Central Management Services pursuant to the direction of the Director of the Department of Central Management Services. C. All unexpended appropriations and balances and other funds available for use in connection to the powers, duties, rights, and responsibilities transferred by this Executive Order shall be transferred for use by the Department of Central Management Systems pursuant to the direction of the Governor. Unexpended balances so transferred shall be expended only for the purpose for which the appropriations were originally made. SAVINGS CLAUSE 12096859.2 A. The rights, powers, duties and functions transferred to the Department of Central Management Services by this Executive Order shall be vested in and shall be exercised by the Department of Central Management Services. Each act done in exercise of such rights, powers, duties and functions shall have the same legal effect as if done by the agencies, offices, divisions, departments, bureaus, boards and commissions from which they were transferred. B. Every person or corporation shall be subject to the same obligations and duties and any penalties, civil or criminal, arising therefrom, and shall have the same rights arising from the exercise of such rights, powers and duties as had been exercised by the agencies, offices, divisions, departments, bureaus, boards and commissions from which they were transferred. C. Whenever reports or notices were previously required to be made or given or papers or documents furnished or served by any person with respect to the functions that are being transferred, pursuant to this Executive Order, from other agencies, offices, divisions, departments, bureaus, boards and commissions to the Department of Central Management Services, the same shall be made, given, furnished or served in the same manner to or upon the Department of Central Management Services. V. D. This Executive Order shall not affect any act done, ratified or canceled or any right occurring or established or any action or proceeding had or commenced in an administrative, civil or criminal cause regarding the functions transferred, but such proceedings may be continued by the Department of Central Management Services. E. This Executive Order shall not affect the legality of any rules in the Illinois Administrative Code regarding the functions transferred in this Executive Order that are in force on the effective date of this Executive Order. If necessary, however, the affected agencies shall propose, adopt, or repeal rules, rule amendments, and rule recodifications as appropriate to effectuate this Executive Order. SEVERABILITY If any provision of this Executive Order or its application to any person or circumstance is held invalid by any court of competent jurisdiction, this invalidity does not affect any other provision or application of this Executive Order which can be given effect without the invalid provision or application. To achieve this purpose, the provisions of this Executive Order are declared to be severable. VI. EFFECTIVE DATE This Executive Order shall become effective on the 61st day after its delivery to the General Assembly. 12096859.2 Indiana (back to top) EXECUTIVE ORDER: 08-14 FOR: ESTABLISHMENT OF ENERGY EFFICIENT STATE BUILDING INITIATIVE TO ALL TO WHOM THESE PRESENTS MAY COME, GREETINGS. WHEREAS, The cost of energy continues to increase dramatically and consumers, businesses, and the public sector must all continue to improve energy use and identify opportunities to reduce demand through energy-efficient practices; WHEREAS, state government should set an example through efforts to increase the costeffectiveness of government and its efficient use of resources; WHEREAS, the construction and renovation of buildings utilizing energy efficient design and materials can serve the needs of citizens and promote the health, productivity, and safety of employees while reducing the operating costs of government; WHEREAS, the use of local materials minimizes the transportation costs of raw materials and finished products while supporting the regional economy; and WHEREAS, the Department of Administration (DOA) has demonstrated that new state buildings can be built cost effectively utilizing energy efficient design, having constructed five new buildings since 2005 which were certified by the U.S. Green Building Council as meeting Leadership in Energy and Environmental Design (LEED) standards; NOW, THEREFORE, I, Mitchell E. Daniels, Jr., by virtue of the authority vested in me as Governor of the State of Indiana do hereby order that: 1. All new state buildings, including all state agencies, departments, offices, boards, commissions, and public universities, shall henceforth be designed, constructed, operated, and maintained to achieve maximum energy efficiency to the extent this can be accomplished on a cost effective basis, considering construction and operating costs over the life cycle of the building. 2. The DOA shall develop design standards for all new state buildings which require the analysis of the cost effectiveness of building with the goal of achieving energy efficiency. "Efficiency" may be demonstrated through design which achieves: (1) The silver rating under the LEED rating system; (2) The two globes rating under the Green Globes rating system; (3) Environmental Protection Agency's ENERGY STAR®; or (4) Equivalent under a rating system that is accredited by the American National Standards Institute. 3. Repair or renovation of all existing state buildings shall be designed to achieve maximum energy efficiency to the extent this can be accomplished on a cost effective basis, considering 12096859.2 construction and operating costs over the life cycle of the building. Such design may be based on LEED, Green Globes, and/or other comparable guidelines and rating systems. Historic aesthetic and local sourced materials shall be afforded value in the cost analysis. 4. Indiana hardwood lumber, further, should be considered for use in all projects, where practicable, as a local source material. The 2006 study "Sustainability of Indiana's Forest Resources" indicates that Indiana timberland acreage and volume has steadily increased since 1967. IN TESTIMONY WHEREOF, I, Mitchell E. Daniels, Jr., have hereunto set my hand and caused to be affixed the Great Seal of the State of Indiana on this 24th day of June, 2008. Mitchell E. Daniels, Jr. Governor of Indiana 12096859.2 Kansas (back to top) 75-37,129a. Rules and regulations relating to energy efficiency performance standards for state-owned buildings Within 18 months after the effective date of this act, the secretary of administration shall adopt rules and regulations prescribing energy efficiency performance standards requiring that all new construction and, to the extent possible, renovated state-owned buildings, be designed and constructed to achieve energy consumption levels that meet the levels established under the ASHRAE standard or the IECC, as appropriate, if such levels of energy consumption are lifecycle cost-effective for such buildings and also recommend that new and, to the extent possible, renovated school and municipal buildings meet the same requirements. 66-1227. Energy efficiency of buildings; standards (a) The International Energy Conservation Code 2006 (IECC 2006) is hereby adopted as the applicable energy efficiency standard for new commercial and industrial structures in this state. (b) The state corporation commission has no authority to adopt or enforce energy efficiency standards for residential, commercial or industrial structures. (c) Nothing in this section shall be construed to preclude a city or county from adopting or enforcing energy efficiency standards for structures within the jurisdiction of such city or county. 12096859.2 Kentucky (back to top) 56.770 Definitions for KRS 56.770 to 56.784. As used in KRS 56.770 to 56.784, unless the context requires otherwise: (1) “Aggregate simple payback period” means the simple payback period of a set of energy efficiency measures taken together for a building; (2) “Building” means all contiguous improvements that use energy; (3) “Cabinet” means the Finance and Administration Cabinet; (4) “Energy audit” means examination of a building's energy-using systems, energy consumption and costs, occupancy patterns, and operation and maintenance procedures; (6) “Energy efficiency measure” means any construction, improvement, repair, alteration, or betterment of a building that is intended to reduce energy consumption; or any equipment, fixture, or furnishing to be added to or used in a building that will be a cost-effective energy-related project that is intended to reduce energy consumption; (7) “Guaranteed energy savings performance contract” means an agreement for the provision of energy services or equipment, including energy efficiency measures, energy conservation measures and alternate energy technologies for state government buildings, in which a person agrees to design, construct, install, maintain, operate, or manage energy systems or equipment to improve energy efficiency of, or produce energy in connection with, a state government building. Payments for a guaranteed energy savings performance contract shall be made from measured and verified savings generated from implementation of the energy efficiency measures financed by the contract. The term of a guaranteed energy savings performance contract shall not exceed the life of the energy savings generated from implementation of the energy efficiency measures financed by the contract. If the measured and verified savings are not sufficient to pay the financial obligations under the contract, the contractor is liable for the contract payments; (8) “High-performance building” means a public building that is designed, constructed, and capable of being operated in a manner that: 12096859.2 land, structures, appurtenances, (a) Increases environmental performance and economic value over time; (b) Safeguards the health of occupants; and (c) Enhances satisfaction and productivity of workers through energyefficient systems; (d) Incorporates environmentally friendly materials and products; and (e) Reduces waste; (9) “High-performance building standards” means a set of standards developed by the cabinet pursuant to KRS 56.777; (10) “Engineering analysis” means a detailed cost-benefit analysis of energy efficiency investments including a review of potential cost savings through operation and maintenance changes; (11) “Life-cycle cost analysis” means a method for estimating the total cost of an energy-using component or building over its useful life, including cost factors such as purchase price or construction, renovation, or leasing costs, energy use, maintenance, interest, and inflation; (12) “Low cost/no cost energy conservation measures” means those energy saving practices and energy efficiency measures, usually involving operation and maintenance practices, that can be accomplished by existing personnel within existing operating budgets; (13) “Simple payback period” means the number of years it takes to pay back, from estimated savings, the initial cost of an energy efficiency measure with the simple payback period equal to the initial cost divided by the estimated annual savings; (14) “Savings” means the reduction in expenditures, excluding any state government and post-secondary education personnel expenditures, that are measured and verified, including but not limited to energy usage, operating costs, and capital cost avoidance that occur as a result of the implementation of energy efficiency measures; (15) “Capital cost avoidance” means savings generated when expenditures of appropriated capital construction or appropriated capital outlay funds are avoided because the budgeted capital improvements or items of equipment are contained within the energy efficiency measures provided by a guaranteed energy savings performance contract; (16) “Operating costs” means expenditures associated with operating and maintaining a properly functioning building and its systems including but not limited to the heating, ventilation, cooling, lighting, plumbing, water heating, electrical, and laundry systems and their controls; (17) “Public building” has the same meaning as in KRS 318.010; 12096859.2 (18) “ENERGY STAR” means the voluntary program administered by the United States Environmental Protection Agency and the United States Department of Energy that is designed to protect the environment through the promotion of energy-efficient products and practices; (19) “Green Globes rating system” means the on-line environmental assessment tool developed by the Green Building Initiative as of December, 2004, that allows designers, property owners, and managers to evaluate and rate buildings against best sustainable building design practices and integrate principles of sustainable architecture at every stage of project delivery in order to design and construct buildings that will be energy-efficient and resource-efficient, achieve operational savings, and provide healthier environments in which to live and work; and (20) “LEED” means the building rating systems developed on or after January 1, 2005, by the United States Green Building Council that allow designers, property owners, and managers to evaluate and rate buildings against best sustainable building design and practices and to integrate principles of sustainable architecture at every stage of project delivery in order to design and construct buildings that will be energy-efficient and resource-efficient using a wholebuilding approach in five (5) key areas of human and environmental health: (a) Sustainable site development; (b) Water savings; (c) Energy efficiency; (d) Material selection; and (e) Environmental quality. 56.772 Legislative intent; Energy Efficiency Program for State Government Buildings. The General Assembly finds and declares it to be the public policy of the Commonwealth to maximize the use of energy efficiency measures in the construction, renovation, and maintenance of buildings owned or leased by the Commonwealth. In furtherance of this policy, the cabinet shall administer an energy efficiency program, to be known as the Energy Efficiency Program for State Government Buildings. 56.774 Purpose of program; engineering analysis; methods of finance; documentation of savings. 12096859.2 (1) The Energy Efficiency Program for State Government Buildings shall provide for implementation of low cost/no cost energy conservation measures, engineering analyses, energy efficiency measures, building improvements, and monitoring of results for state-owned or state-leased buildings. (2) Any engineering analysis conducted on a state-owned building shall assess the energy efficiency of the building and make recommendations for improving the efficient use of energy within the building. The analyses shall be performed by qualified engineers, architects, or other persons trained in energy efficiency who may be employees of the cabinet or employed pursuant to KRS Chapter 45A, except that any engineers, architects or other persons trained in energy efficiency and retained under a guaranteed energy savings performance contract, shall not be subject to the provisions of KRS 45A.800 to 45A.835. (3) Except as provided in subsection (5) of this section, measures to improve the energy efficiency of a state-owned building, which have an aggregate simple payback period of five (5) years or less, shall be implemented as general fund appropriations become available. No more than five percent (5%) of the cost of energy efficiency measures for a building may be utilized for monitoring the results. (4) If general fund appropriations are available for energy efficiency improvements, the cabinet shall prioritize projects among the various state-owned buildings to determine which projects shall be implemented to best utilize the available funding. (5) If general fund appropriations are unavailable, energy efficiency measures for a state-owned building may be financed by other means. These other means include but are not limited to guaranteed energy savings performance contracts as defined under KRS 56.770 entered into pursuant to KRS 45A.085 and KRS 45A.045(10). Guaranteed energy savings performance contracts shall not be subject to the provisions of KRS 45A.800 to 45A.835. These energy efficiency measures shall not be limited to those that have an aggregate simple payback period of five (5) years or less, but shall result in reasonable economic benefit to the Commonwealth. Ownership of the energy efficiency measures shall be transferred to the Commonwealth upon completion of the guaranteed energy savings performance contract or as otherwise agreed upon in the contract. Savings from the implementation of the energy efficiency measures under the guaranteed energy savings performance contract shall be used to satisfy the obligations under the guaranteed energy savings performance contract and to repay the cost of the other means used to finance the energy efficiency measures, and may be used to repay expenses incurred by the cabinet to reimburse the cabinet for expenses related to the guaranteed energy savings performance contract, including but not limited to staff time for monitoring, overseeing, and managing the project. Notwithstanding KRS 45.229, remaining savings shall remain in the state agency 12096859.2 account and shall not lapse. All savings projected under a guaranteed energy savings performance contract shall be guaranteed to the Commonwealth. (6) The savings in reduced expenditures that are specified as payment sources shall be documented in the guaranteed energy savings performance contract. Savings shall be determined by using one (1) of the measurement and verification methodologies listed in the United States Department of Energy's “International Performance Measurement and Verification Protocol.” If specific data limitations or documented unique characteristics of the project prevent use of the “International Performance Measurement and Verification Protocol,” an alternative method that is compatible shall be adopted upon documentation and approval of the secretary of the cabinet. 56.775 Required high-performance building standards; use of energy-efficiency products. To improve energy efficiency throughout state government, the cabinet and universities that manage their own capital construction projects under KRS 164A.580 shall: (1) Beginning July 1, 2009, require that all construction or renovation of public buildings for which fifty percent (50%) or more of the total capital cost is paid by the Commonwealth shall be designed and constructed, or renovated, to meet the high-performance building standards established in KRS 56.777. This subsection applies to all projects that have not entered the design phase prior to January 1, 2009; (2) Require that all building leases entered into by the Commonwealth or any of its agencies on and after July 1, 2018, shall meet the high-performance building standards. From July 15, 2008 and prior to July 1, 2018, a building that meets the high-performance building standards established in this section shall be given a preference in the state leasing process over other buildings that do not meet the high-performance building standards; and (3) Incorporate ENERGY STAR-qualified products in state agency procurements to the extent economically feasible using a life-cycle cost analysis. 12096859.2 56.776 Energy audit training program; additional programs on energy awareness. The cabinet, with the assistance of the Department for Energy Development and Independence, shall institute an energy audit training program to identify energy saving techniques for state-owned building maintenance staff. Additional programs shall be developed to educate state employees and other building occupants on energy awareness and practices to reduce energy use in state-owned buildings. Local government employees may be included in training and educational programs 56.777 High-Performance Buildings Advisory administrative regulations; resource utilization Committee; membership; duties; (1) A High-Performance Buildings Advisory Committee is hereby created and shall be administratively staffed by the cabinet. (2) The committee shall consist of fifteen (15) members and shall include: (a) A representative of the cabinet designated by the secretary; (b) A representative of the Tourism, Arts and Heritage Cabinet designated by the secretary; (c) A representative of the Department of Education designated by the commissioner; (d) A representative of the Council on Postsecondary Education designated by the president; (e) A representative of the Department for Energy Development and Independence designated by the commissioner; and (f) A representative appointed by the Governor from each of the following: 1. The design and construction industry involved in public works contracting; 2. The Kentucky Chapter of the U. S. Green Building Council; 3. The University of Kentucky College of Design; 4. The Kentucky Forest Industries Association; 5. The Kentucky Society of the American Institute of Architects; 6. The American Society of Heating, Refrigerating, and Air-Conditioning Engineers; and 12096859.2 7. The Home Builders Association of Kentucky; 8. The Associated General Contractors of Kentucky; 9. The West Kentucky Construction Association; and 10. The Kentucky Manufactured Housing Institute. (3) The representative of the cabinet shall serve as the chairperson of the committee. All appointments shall be for a term of two (2) years. Committee members shall serve until their successors are appointed and shall be eligible for reappointment. (4) The committee shall meet at least monthly or as convened by the chairperson. (5) The members of the committee shall receive reimbursement for the cost of travel to and from the meetings and any costs necessarily incurred in carrying out their duties. (6) The committee shall: (a) Consult with architects, engineers, builders, energy and conservation organizations, and other interested stakeholders, and make recommendations to the cabinet regarding: 1. Standards and benchmarks developed under existing high-performance building programs, including the ENERGY STAR rating system, Green Globes rating system, and Leadership in Energy and Environmental Design (LEED) Green Building rating system; and 2. Standards and guidelines developed and adopted by the U.S. Green Building Council, the American Society of Heating, Refrigerating and Air-Conditioning Engineers, and the Illuminating Engineering Society of North America partnership concerning the design of sustainable buildings to balance environmental responsibility, resource efficiency, occupant comfort and well-being, and community sensitivity; (b) Assist the cabinet in the review of state building projects to ensure that building performance and efficiency are maximized to the extent economically feasible using a life-cycle cost analysis; (c) Assist the cabinet in developing a process of documentation of the attainment of high-performance building standards; and (d) Assist the cabinet in conducting an ongoing professional development program for state and local building designers, construction companies, school 12096859.2 districts, building managers, and the general public on high-performance building design, construction, maintenance, and operation. (7) Prior to the implementation of KRS 56.770 to 56.784, the cabinet shall promulgate administrative regulations pursuant to KRS Chapter 13A necessary to implement this section. The cabinet shall consider the recommendations made by the HighPerformance Buildings Advisory Committee pursuant to subsection (6) of this section and shall establish the criteria for the high-performance building standards and the benchmarks by which the high-performance building standards will be measured. At a minimum, the cabinet shall: (a) Include the standards for site selection and management, water efficiency, energy conservation, waste reduction, material and resource use, and indoor air quality; and (b) Require that each high-performance building be designed, constructed, or renovated so that it is capable of being rated as an ENERGY STAR building in accordance with the criteria and rating system adopted by the United States Environmental Protection Agency and in effect at the time the building is designed or, in the case of leased buildings, at the time the lease is entered into on or after July 1, 2018. (8) In developing the criteria for the high-performance building standards, the cabinet shall consider and encourage the use of: (a) Locally grown lumber from forest lands implementing sustainable practices established by the American Tree Farm System's Sustainable Forest Initiative or the Kentucky Forest Stewardship Program established under KRS 149.330 to 149.355; (b) Building materials manufactured with recycled content within Commonwealth; and the (c) Renewable energy sources. 56.778 Inclusion of life-cycle energy cost analyses in bids or plans to construct or renovate state-owned buildings. The cabinet shall require persons submitting bids or plans for state-owned buildings to be constructed or substantially renovated after July 15, 1996, to include within those bids or plans life-cycle energy cost analyses. The cabinet shall consider those life-cycle cost analyses when evaluating competing bids or plans. 56.780 Evaluation for cost-effective energy use and energy efficiency of buildings prior to lease or purchase -- Structure of leases. 12096859.2 (1) Any building which the Finance and Administration Cabinet considers for leasing or purchase shall be evaluated for cost-effective energy use and energy efficiency. This evaluation shall be considered in choosing between competing leases or building purchases. The cabinet shall consider the energy costs of operating a building to ensure the selection of a cost-effective lease, and the cabinet shall compare life-cycle energy cost analyses for competing leases. (2) A lease may be structured so that both the lessor and the state agency as lessee may share energy cost savings that can be accomplished by energy-efficient lease arrangements. The lease may incorporate financial incentives to make energy efficiency improvements that are cost effective in reducing the operating cost of the building. The lease may provide for the state agency to make lease payments which may be used to help fund the costs of energy efficiency measures in the building, if the costs are amortized and returned to the state agency over a period of years not to exceed the useful life of the energy efficiency measures. Thereafter, the state agency shall be entitled to a reduction in the lease amount based on any continued savings resulting from the energy efficiency measures. The amount of reduction shall be negotiated between the lessor and the state agency. 56.782 Report on use of energy-efficiency measures in state government; Contents. The cabinet shall report on or before October 15, 2008, and on or before every October 15 thereafter to the Legislative Research Commission on progress made to maximize the use of energy-efficiency measures in state government. The Legislative Research Commission shall transmit the report to the appropriate interim joint committees and to the General Assembly when it convenes. The report shall include but not be limited to: (1) A summary of initiatives undertaken by the cabinet during the reporting period to promote adoption of low cost/no cost energy-efficiency measures, including employee training efforts; (2) A summary of energy-efficiency measures installed and energy improvements made during the reporting period; (3) Energy consumption and expenditure data for facilities owned or leased by state government and any documented savings made as a result of energy-efficiency measures and improvements; (4) Status report on the number of buildings newly constructed, renovated, or leased in accordance with the high-performance building standards required under KRS 56.777 and the amount of savings realized based upon a life-cycle cost analysis; (5) Any efforts made during the reporting period to promote acquisition of energyefficient products pursuant to KRS 45A.045(12) and the amount of savings 12096859.2 expected to be realized in the first year of operation from the purchase of ENERGY STAR-qualified products pursuant to KRS 56.775; (6) Any recommendations for future funding of energy improvements or other measures needed to assure energy efficiency in state government; and (7) Any improvements in energy efficiency planned or realized through the use of the LEED rating system, the Green Globes rating system, ENERGY STAR-qualified products, and guaranteed energy savings performance contracts. 56.783 Energy efficiency in state government buildings revolving loan fund. (1) A special fund in the State Treasury is hereby created which shall be known as the energy efficiency in state government buildings revolving loan fund. The fund shall be used to provide financial assistance to state government agencies for the purposes of KRS 56.770 to 56.784. (2) The fund may receive state appropriations, gifts, grants, and federal funds and shall include earnings from the investment of moneys in the fund. Any fund balance at the close of the fiscal year shall not lapse but shall carry forward to the next fiscal year and shall remain available solely for the purposes of this section. (3) Administration of this fund shall be the responsibility of the cabinet. The cabinet shall establish terms and conditions for loans from the fund including the application and repayment process. The cabinet shall establish and implement fiscal controls and accounting periods for payments received and disbursements made by the fund and for fund balances at the beginning and end of each accounting period. (4) All repayments of loans made under this section shall be paid into the fund. Balances, or portions thereof, in the fund shall not revert to the general fund. 56.784 Guaranteed energy savings performance contracts; authority for administrative regulations. (1) Each agency responsible for managing state-owned property shall review the utility usage of the property and shall cooperate with the cabinet to determine which properties are good candidates for guaranteed energy savings performance contracts. The responsible agency is encouraged to implement guaranteed energy savings performance contracts where appropriate. (2) The cabinet may implement the provisions of KRS 56.770 to 56.784 through the promulgation of administrative regulations pursuant to KRS Chapter 13A. (3) The secretary of the cabinet shall promulgate administrative regulations in accordance with the provisions of KRS Chapter 13A establishing a process for procurement of energy savings performance contracts, including required contract 12096859.2 language. The following entities shall adhere to these regulations when procuring services under a guaranteed energy savings performance contract: (a) Any governing body of a postsecondary institution that manages its capital construction program under KRS 164A.580; or (b) Any public corporation as defined by KRS 45.750(2)(c) or as created under the Kentucky Revised Statutes as a governmental agency and instrumentality of the Commonwealth that manages its capital construction program. (5) All state agencies, including those identified in subsection (3) of this section, shall submit proposed guaranteed energy savings performance contracts to the Office of Financial Management within the Office of the Controller for review and approval prior to contract execution. (6) The secretary shall report all authorized guaranteed energy savings performance contracts to the Capital Projects and Bond Oversight Committee for its review. § 141.435 Definitions for KRS 141.435 to 141.437 (1) “Active solar space-heating system” means a system that: (a) Consists of solar energy collectors that collect and absorb solar radiation combined with electric fans or pumps to transfer and distribute that solar heat; (b) May include an energy storage space-heating system to provide heat when the sun is not shining; and (c) Is installed by a certified installer; (2) “Certified installer” means an installer who has satisfied the professional certification standards established by the North American Board of Certified Energy Practitioners (NABCEP) and who has been certified as a NABCEP Certified Solar PV Installer or a NABCEP Certified Solar Thermal Installer; (3) “Combined active solar space-heating and water-heating system” means a system that meets the requirements of both an active solar space-heating system and a solar water-heating system and is installed by a certified installer; (4) “Commonwealth” means the Commonwealth of Kentucky; (5) “Dwelling unit” includes a manufactured home as defined in KRS 100.348; 12096859.2 (6) “Energy-efficient interior lighting system” means an interior lighting system that meets the maximum reduction in lighting power density requirements for the federal energy efficient commercial building deduction under 26 U.S.C. sec. 179D, as in effect December 31, 2007; (7) “Energy-efficient heating, cooling, ventilation, or hot water system” means a heating, cooling, ventilation, or hot water system that meets the requirements for the federal energyefficient commercial building deduction under 26 U.S.C. sec. 179D, as in effect December 31, 2007; (8) “Energy-efficient windows and storm doors” means windows and storm doors that are: (a) ENERGY STAR-labeled; and (b) Certified by the National Fenestration Rating Council as meeting the North-Central U.S. climate zone performance standards for U-factor (nonsolar heat conductance), solar heat gain coefficient, air leakage, visible-light transmittance, and condensation resistance; (9) “ENERGY STAR” shall have the same meaning as in KRS 56.770; (10) “Installed cost” means the following, less any discounts, rebates, sales tax, installationassistance credits, name-referral allowances, or other similar reductions: (a) The purchase cost of equipment, components, and associated design; and (b) Labor costs properly allocable to the on-site preparation, assembly, and original installation of the property, including piping or wiring to interconnect such property to the dwelling unit or commercial property; (11) “Passive solar space-heating system” means a system that: (a) Takes advantage of the warmth of the sun through the use of design features such as large south-facing windows and materials in the floors or walls that absorb warmth during the day and release that warmth at night; (b) Includes one (1) or more of the following designs: 1. Direct gain which stores and slowly releases heat energy collected from the sun shining directly into the building and warming materials such as tile or concrete; 2. Indirect gain which uses materials that are located between the sun and the living space such as a wall to hold, store, and release heat; or 3. Isolated gain which collects warmer air from an area that is remote from the living space, such as a sunroom attached to a house, and the warmer air flows naturally to the rest of the house; and 12096859.2 (c) Meets the guidelines and technical requirements for passive solar design established by administrative regulation pursuant to KRS 141.436(7); (12) “Qualified energy property” means the following property that meets the performance, quality, and certification standards of and that would have been eligible for the federal tax credit for residential energy property expenditures under 26 U.S.C. sec. 25C, as it existed on December 31, 2007: (a) An electric heat pump water heater; (b) An electric heat pump; (c) A closed loop geothermal heat pump; (d) An open loop geothermal heat pump; (e) A direct expansion (DX) geothermal heat pump; (f) A central air conditioner; (g) A natural gas, propane, or oil furnace or hot water heater; (h) A hot water boiler including outdoor wood-fired boiler units; or (i) An advanced main air circulating fan; (13) “Solar photovoltaic system” means a system for electricity generation that: (a) Includes solar photovoltaic panels, structural attachments, electrical wiring, inverters for converting direct current output to alternating current, and appropriate controls and safety measures for output monitoring; (b) Meets the requirements of Article 690 of the National Electrical Code; (c) Uses solar photovoltaic panels and inverters that are rated and listed by Underwriters Laboratories; and (d) Is installed by a certified installer; (14) “Solar water-heating system” means a system that: (a) Uses solar-thermal energy to heat water; (b) 1. Is an indirect pressurized glycol system that uses propylene glycol; or 2. Is an indirect drainback system that uses distilled water or propylene glycol; 12096859.2 (c) Uses OG-100 solar thermal collectors that are: 1. Certified by the Solar Rating and Certification Corporation; and 2. Covered by a manufacturer's warranty of not less than five (5) years; (d) Is installed by a certified installer; and (e) Is warranted by the certified installer for a period of not less than two (2) years; (15) “Upgraded insulation” means insulation with the following R-value ratings: (a) Attic insulation rated R-38 or higher; (b) Exterior wall, crawl space, and basement exterior wall insulation rated R-13 or higher; and (c) Floor insulation rated R-19 or higher; and (16) “Wind turbine” or “wind machine” means a turbine or machine used for generating electricity that: (a) Is certified as meeting the United States Wind Industry Consensus Standards developed by the American Wind Energy Association in partnership with the United States Department of Energy; (b) Is covered by a manufacturer's warranty of not less than five (5) years; (c) Is in compliance with all relevant building codes, height restriction variances, other special code requirements, and zoning ordinances; (d) Has been installed in accordance with all building codes and all permits were received prior to the start of construction and installation; (e) Is in compliance with all applicable Federal Aviation Administration regulations; (f) Meets all requirements of Article 705 of the National Electrical Code for electrical components and installations; and (g) Is rated and listed by Underwriters Laboratories. 141.436 Tax credit for installation of energy efficiency products for residential and commercial property; administrative regulations; reports 12096859.2 (1) (a) For taxable periods beginning after December 31, 2008, and beginning before January 1, 2016, there is hereby created a nonrefundable credit against the tax imposed under KRS 141.020 or 141.040, and KRS 141.0401, with the ordering of credits as provided in KRS 141.0205. The credit shall apply if one (1) or more of the items listed in paragraph (b) of this subsection is installed during the taxable year in a dwelling unit located in the Commonwealth that is owned by the taxpayer and used by the taxpayer as: 1. The taxpayer's principal place of residence; or 2. A single-family or multifamily residential rental unit. (b) The tax credit shall equal thirty percent (30%) of the installed costs of: 1. Upgraded insulation, not to exceed one hundred dollars ($100); 2. Energy-efficient windows and storm doors, not to exceed two hundred fifty dollars ($250); or 3. Qualified energy property, not to exceed two hundred fifty dollars ($250). (c) In no case shall the total credits provided under this subsection exceed five hundred dollars ($500) per taxpayer. (2) (a) For taxable years beginning after December 31, 2008, and beginning before January 1, 2016, there is hereby created a nonrefundable credit against the tax imposed under KRS 141.020 or 141.040, and KRS 141.0401, with the ordering of credits as provided in KRS 141.0205, if one (1) or more of the items listed in paragraph (b) of this subsection is installed during the taxable year on a dwelling unit located in the Commonwealth, or on property located in the Commonwealth that is owned and used by the taxpayer as commercial property. (b) The tax credit shall equal: 1. Thirty percent (30%) of the installed costs of: a. An active solar space-heating system; b. A passive solar space-heating system; c. A combined active solar space-heating and water-heating system; d. A solar water-heating system; and e. A wind turbine or wind machine; or 2. Three dollars ($3) per watt direct current (DC) of rated capacity of a solar photovoltaic system. 12096859.2 (c) In no case shall the total tax credits provided in this subsection exceed: 1. Five hundred dollars ($500) per taxpayer if installed on a dwelling unit located in the Commonwealth that is owned by the taxpayer and used by the taxpayer as: a. The taxpayer's principal place of residence; or b. A single-family residential rental unit; or 2. One thousand dollars ($1,000) per taxpayer if installed on property located in the Commonwealth that is owned and used by the taxpayer as: a. A multifamily residential rental unit; or b. Commercial property; (3) (a) For taxable years beginning after December 31, 2008, and beginning before January 1, 2016, there is hereby created a nonrefundable credit against the tax imposed under KRS 141.020 or 141.040, and KRS 141.0401, with the ordering of credits as provided in KRS 141.0205, if one (1) or more of the following is installed during the taxable year on property located in the Commonwealth that is owned and used by the taxpayer as commercial property: 1. An energy-efficient interior lighting system; and 2. An energy-efficient heating, cooling, ventilation, or hot water system. (b) The tax credit shall equal thirty percent (30%) of the installed costs of: 1. An energy-efficient interior lighting system, not to exceed five hundred dollars ($500) per taxpayer; and 2. An energy-efficient heating, cooling, ventilation, or hot water system, not to exceed five hundred dollars ($500) per taxpayer. (c) In no case shall the total tax credits provided in this subsection exceed one thousand dollars ($1,000) per taxpayer. (d) For purposes of the tax credit provided by this subsection, “commercial property” shall not include single-family or multifamily residential units. (4) The tax credits provided under this section shall apply in the tax year in which the installation is completed. If the credit cannot be taken in full in the year in which the installation is completed, the tax credit may be carried forward one (1) year. 12096859.2 (5) The department may request copies of invoices, purchase receipts, installation contracts, proof of installer's NABCEP certification, and any other information that the department determines necessary to verify credits taken. (6) If the taxpayer has taken the ENERGY STAR home or the ENERGY STAR manufactured home tax credit provided under KRS 141.437, the tax credits provided under this section shall not apply. (7) The department shall establish, by administrative regulation, the guidelines and technical requirements for items that are eligible for the tax credits provided under subsection (2) of this section, including but not limited to requirements for capacity, siting, plumbing, collector mountings, and pressurization. The department shall enlist the assistance, cooperation, and recommendations of the Department for Energy Development and Independence and the Kentucky Pollution Prevention Center at the University of Louisville in determining those guidelines and technical requirements and may enlist their assistance in evaluating the eligibility of credits taken under this section. (8) On or before December 1, 2010, and on or before every December 1 thereafter, the department shall report to the Legislative Research Commission the total number and gross amount of each type of tax credit claimed on returns processed during the fiscal year ending prior to the December reporting date. 141.437 Tax credit for construction of ENERGY STAR home or sale of ENERGY STAR manufactured home; required verification; reports (1) As used in this section: (a) “ENERGY STAR home” means any single-family residence that qualifies for and receives the ENERGY STAR label under the ENERGY STAR Program administered by the United States Environmental Protection Agency; and (b) “ENERGY STAR manufactured home” means a manufactured home as defined in KRS 100.348 that meets the ENERGY STAR label under the ENERGY STAR Program administered by the United States Environmental Protection Agency. (2) For taxable years beginning after December 31, 2008, and before January 1, 2016, there is hereby created a nonrefundable credit against the tax imposed by KRS 141.040, and KRS 141.0401, with the ordering of credits as provided in KRS 141.0205 if a taxpayer: (a) Builds a new ENERGY STAR home located in the Commonwealth for use as a principal place of residence; or (b) Sells a new ENERGY STAR manufactured home to a buyer who uses that home as a principal place of residence in the Commonwealth. (3) The tax credit shall equal: 12096859.2 (a) Eight hundred dollars ($800) if the taxpayer builds an ENERGY STAR home; or (b) Four hundred dollars ($400) if the taxpayer sells an ENERGY STAR manufactured home. (4) The tax credit provided under this section shall apply in the tax year in which the taxpayer completes construction of the ENERGY STAR home or sells the ENERGY STAR manufactured home. (5) The tax credit provided in this section shall not apply if: (a) The tax credit has been previously taken by another taxpayer on the same ENERGY STAR home or ENERGY STAR manufactured home; or (b) The taxpayer has taken the energy efficiency tax credits provided in KRS 141.436. (6) The department may request verification of the ENERGY STAR label placed on the home, documentation that the buyer is using the home as a principal place of residence, and any other information that the department determines is necessary to verify the tax credits taken. (7) On or before December 1, 2010, and on or before every December 1 thereafter, the department shall report to the Legislative Research Commission the total number and gross amount of each type of credit claimed on returns processed during the fiscal year ending prior to the December reporting period. 12096859.2 Louisiana (back to top) 40 §1730.49. requirements A. Louisiana major facility project; energy efficiency and conservation; The office of facility planning and control of the division of administration shall adopt rules and regulations which: Optimize the energy performance of state-funded buildings throughout the state. Increase the demand for building and construction materials, finishes, furnishings, and other products made in or incorporating materials produced in Louisiana. Improve environmental quality in this state by decreasing the discharge of pollutants from state-funded buildings and their manufacture. Conserve energy and utilize local and renewable energy sources. Protect and restore this state's natural resources by avoiding development of inappropriate state-funded building sites. Reduce the burden on public water supply and treatment by reducing potable water consumption. Establish life cycle assessment as the appropriate and most efficient analysis to determine a state-funded building project's environmental performance level. Encourage obtaining ENERGY STAR designation from the United States Environmental Protection Agency to further demonstrate a building project's energy independence. B. Each major facility project must be designed, constructed, and certified to exceed the requirements of the state energy code by at least thirty percent where it is determined by the office of facility planning and control that such thirty percent efficiency is cost effective based on a life cycle cost analysis with a payback at no more than thirty years. Certification shall be performed by a professional engineer using IRS/DOE approved software methodology. C. In order to achieve sustainable building standards, construction projects may utilize a nationally recognized high performance environmental building rating system, provided, however, that any such rating system that uses a material or product-based credit system which is disadvantageous to materials or products manufactured or produced in Louisiana shall not be utilized. The office of facility planning and control of the division of administration shall designate rating systems which meet these criteria and may establish its own rating system. D. A professional engineer shall certify that the major facility project's systems for heating, ventilation, air conditioning, energy conservation and water conservation 12096859.2 are installed and working properly to ensure that each major facility project performs according to the major facility project's overall environmental design intent and operational objectives. E. (1) For purposes of this Section, a major facility project shall mean either: (a) (b) (2) 12096859.2 A state-funded new construction building project which is: (i) From the effective date of this Section through December 31, 2008, the project shall be larger than twenty thousand gross square feet. (ii) From January 1, 2009 through December 31, 2009, the project shall be larger than fifteen thousand gross square feet. (iii) From January 1, 2010 through December 31, 2010, the project shall be larger than ten thousand gross square feet. (iv) From January 1, 2011 and thereafter, the project shall be larger than five thousand gross square feet. A state-funded renovation project which involves more than fifty percent of the replacement value of the facility or a change in occupancy. A major facility project shall not mean a building, regardless of size, which does not have conditioned space as defined by Standard 90.1 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers. Maine (back to top) Title 5: ADMINISTRATIVE PROCEDURES AND SERVICES Part 4: FINANCE Chapter 153: PUBLIC IMPROVEMENTS Subchapter 1-A: ENERGY CONSERVATION IN BUILDINGS ACT 1764. Life-cycle costs 1. Bureau of General Services to adopt rules and procedures. The Bureau of General Services shall adopt rules, including energy conservation guidelines that conform as a minimum to the energy efficiency building performance standards adopted by the Department of Economic and Community Development for conducting an energy-related life-cycle costs analysis of alternative architectural or engineering designs, or both, and shall evaluate the efficiency of energy utilization for designs in the construction and lease of public improvements and public school facilities. Any rules adopted take effect 90 days after the enactment of this subchapter. 2. Life-cycle costs. Any life-cycle costs must include: 3. 12096859.2 A. The reasonably expected energy costs over the life of the building, as determined by the designer, that are required to maintain illumination, power, temperature, humidity and ventilation and all other energyconsuming equipment in a facility; B. The reasonable energy-related costs of probable maintenance, including labor and materials and operation of the building, replacement costs over the expected life of the facility and any other ownership cost issues identified by the Bureau of General Services; and C. A comparison of energy-related and economic-related design alternatives. The Bureau of General Services may direct the designer to select, include and develop life-cycle costs for any viable alternatives that should be considered. Determination of life-cycle costs. To determine the life-cycle costs, the Bureau of General Services shall adopt rules that include but are not limited to: A. The orientation and integration of the facility with respect to its physical site; B. The amount and type of glass employed in the facility and the directions of exposure; C. The effect of insulation incorporated into the facility design and the effect on solar utilization to the properties of external surfaces; D. The variable occupancy and operating conditions of the facility and subportions of the facility; E. Energy consumption analysis of the major equipment of the facility's heating, ventilating and cooling system, lighting system, hot water system and all other major energy-consuming equipment and systems as appropriate. This analysis must include: F. 4. (1) The comparison of alternative systems; (2) A projection of the annual energy consumption of major energyconsuming equipment and systems for a range of operations of the facility over the life of the facility; and (3) The evaluation of the energy consumption of component equipment in each system, considering operation of the components at other than full or rated outputs. The cost-effectiveness of integrating wind or solar electricity generating equipment into the design and construction of the facility. Annual updating of rules. Rules must be based on the best currently available methods of analysis and provisions must be made for an annual updating of rules and standards as required. Title 5. Administrative Procedures and Services Part 4. Finance Chapter 153. Public Improvements (Refs & Annos) Subchapter 1-A. Energy Conservation in Buildings Act (Refs & Annos) § 1764-A. Improvement of energy efficiency in state-funded construction 1. Definition. For purposes of this section, “substantially renovated” means any renovation for which the cost exceeds 50% of the building's current value prior to renovation. 2. Rules. The Bureau of General Services, in consultation with the Public Utilities Commission, shall by rule require that all planning and design for the construction of new or substantially renovated state-owned or state-leased buildings and buildings built with state funds, including buildings funded through state bonds or the Maine Municipal Bond Bank: A. Involve consideration of architectural designs and energy systems that show the greatest net benefit over the life of the building by minimizing long-term energy and operating costs; 12096859.2 B. Include an energy-use target that exceeds by at least 20% the energy efficiency standards in effect for commercial and institutional buildings pursuant to Title 10, section 1415-D; and C. Include a life-cycle cost analysis that explicitly considers cost and benefits over a minimum of 30 years and that explicitly includes the public health and environmental benefits associated with energy-efficient building design and construction, to the extent they can be reasonably quantified. Rules adopted pursuant to this section apply to all new or substantially renovated state-owned or state-leased buildings and buildings built with state funds, including buildings funded through state bonds or the Maine Municipal Bond Bank, regardless of whether the planning and design for construction is subject to approval by the department. Rules adopted pursuant to this section may provide for exemptions, waivers or other appropriate consideration for buildings with little or no energy usage, such as unheated sheds or warehouses. The Bureau of General Services shall adopt rules pursuant to this section by July 1, 2004. Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.1 3. Approval. A state agency responsible for approving the construction of a new or substantially renovated state-owned or state-leased building and buildings built with state funds, including buildings funded through state bonds or the Maine Municipal Bond Bank, may not grant such approval unless the agency or other entity or organization proposing the construction can show that it has duly considered the most energy-efficient and environmentally efficient designs suitable in accordance with rules adopted pursuant to this section. Title 20-A: EDUCATION Part 7: SCHOOL FINANCE Chapter 609: SCHOOL CONSTRUCTION 15908-A. School energy efficiency standards rules 1. Definition. For purposes of this section, “substantially renovated” means any renovation for which the cost exceeds 50% of the building's current value prior to renovation. 2. Rules. The state board, in consultation with the Department of Administrative and Financial Services and the Public Utilities Commission, shall by rule require as a condition for state funding for construction that, except as provided in subsection 4, all planning and design for new or substantially renovated schools or school buildings subject to state board approval: A. 12096859.2 Involve consideration of architectural designs and energy systems that show the greatest net benefit over the life of the building by minimizing long-term energy and operating costs; B. Include an energy-use target that exceeds by at least 20% the energy efficiency standards in effect for commercial and institutional buildings pursuant to Title 10, section 1415-D; and C. Include a life-cycle cost analysis that explicitly considers cost and benefits over a minimum of 30 years and that explicitly includes the public health and environmental benefits associated with energy-efficient building design and construction, to the extent they can be reasonably quantified. The state board shall adopt rules pursuant to this section by July 1, 2004. Rules adopted pursuant to this section are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. 3. Requirements for approval. Except as provided in subsection 4, the state board shall withhold approval of a state-funded new or substantially renovated school or school building if the local school authority proposing the project can not show that it has duly considered the most energy-efficient and environmentally efficient designs suitable in accordance with rules adopted pursuant to this section. 4. Renovation of historic school buildings; waiver. The state board may, in consultation with the Public Utilities Commission and the Executive Director of the State Historic Preservation Commission, grant a waiver from the requirements of this section on a case-by-case basis for instances of substantial renovation of a historic school building. For the purposes of this subsection, “historic school building” means a school building that is on the National Register of Historic Places, eligible for nomination to the national register or designated as a historic building by a certified municipal historic preservation ordinance. A. The state board shall grant a waiver request if, in the board's opinion, the local school authority proposing the renovation project has demonstrated that renovation of the historic school building would not compromise the public health and safety requirements of this chapter and that 2 or more of the following circumstances exist: (1) Renovation of the historic school building is in substantial compliance with the energy efficiency standards required under this section as determined by the Public Utilities Commission; (2) Renovation of the historic school building provides substantial energy efficiency as determined by the Public Utilities Commission and also provides education, social or environmental benefits as determined by the department over alternative proposals, including, but not limited to, any proposals to construct a new school on an alternative site; and 12096859.2 (3) Adherence to the energy building standards would result in irreparable damage to the historic character of a historic school building as determined by the Executive Director of the State Historic Preservation Commission. B. An application for a waiver from the requirements of this section must be submitted to the state board in accordance with requirements established by the state board by rule pursuant to paragraph D. The waiver application must include documentation to substantiate the conditions of this subsection. If the request is denied, the state board shall communicate the reasons for denying the request to the applicant. C. The state board shall render a decision on an application for a waiver from the requirements of this section within 60 days of the receipt by the state board of a complete application for a waiver. In rendering a decision, the state board may place conditions upon the granting of a waiver. Failure on the part of the state board to render a decision within the 60-day period constitutes approval of the request for the waiver. D. The state board shall adopt or amend rules to implement the requirements of this subsection. Rules adopted under this paragraph are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A. An Order Regarding the Use of Green Building Standards in State Buildings December 8, 2011 27 FY 11/12 December 7, 2011 AN ORDER REGARDING THE USE OF GREEN BUILDING STANDARDS IN STATE BUILDINGS WHEREAS, the State of Maine is dedicated to the goals of energy efficiency, environmental protection, and economic growth; WHEREAS, the State should undertake initiatives that foster cost efficient and ecologically responsible buildings; WHEREAS, reducing long-term operations and maintenance costs is essential to the economic health of our State; WHEREAS, so-called “Green Building” standards have the potential to reduce waste in building; 12096859.2 WHEREAS, said standards have certain requirements on the harvest of natural construction materials, some of which recognize equally several forest certifications systems currently utilized in Maine and North America; WHEREAS, Maine is a national leader in the processing and availability of construction materials that are certified under the Sustainable Forestry Initiative, Forest Stewardship Council, American Tree Farm System, and Programme for the Endorsement of Forest Certification systems; and WHEREAS, recognizing all of these certifications equally will help promote sustainable forestry in the State of Maine and help protect and develop thousands of good jobs while maintaining our strong outdoor heritage; NOW, THEREFORE, I, Paul R. LePage, Governor of the State of Maine, hereby order as follows: 1. The design, construction, operation and maintenance of any new or expanded state building shall incorporate “Green Building” standards that give certification credits equally to forest products grown, manufactured, and certified under the Sustainable Forestry Initiative, Forest Stewardship Council, American Tree Farm System and Programme for the Endorsement of Forest Certification systems. 2. The design, construction, operation and maintenance of any existing state building to be renovated shall incorporate “green building” standards that achieve significant energy efficiency and environmental sustainability relevant to the scope of the renovation, provided this can be accomplished on a cost-effective basis, considering construction and operating costs over the life cycle of the improvement. 3. The Department of Administrative and Financial Services, through the Bureau of General Services, is authorized to call upon any department, office, board, commission or agency of state government to provide such information, resources or other assistance deemed necessary to discharge its responsibilities under this Order. Each department, office, board, commission, and agency of this state is required to cooperate with the Bureau of General Services and to furnish it with assistance necessary to accomplish the purposes of this Order. Such assistance may include sharing of information, the assignment of staff, and the provision of support services. 4. Each department, office, board, commission or agency of state government is directed to identify any policies not in conformance with this Executive Order, bring them into conformance and submit them to the Governor’s Office by March 1, 2012. 5. For the purposes of this order, a “state building” includes any building owned, constructed, or acquired by the State of Maine or any department, office, board, commission, or agency thereof, including state-supported institutions of higher learning. School administrative districts and municipalities are not subject to the requirements of this Order. The effective date of this Executive Order is December 7, 2011. This Executive Order supersedes Executive Order 08 FY 04/05. 12096859.2 Paul R. LePage, Governor 12096859.2 Maryland (back to top) State Finance and Procurement Division I. State Finance [Titles 1-10] Title 4. Department of General Services Subtitle 8. Energy Part II. Guidelines, Standards, and Procedures § 4-809. Maryland Green Building Council In general (a) There is a Maryland Green Building Council. Members, composition (b) The Council shall include: (1) the Secretary of General Services, or the Secretary's designee; (2) the Secretary of Budget and Management, or the Secretary's designee; (3) the Secretary of the Environment, or the Secretary's designee; (4) the Secretary of Housing and Community Development, or the Secretary's designee; (5) the Secretary of Natural Resources, or the Secretary's designee; (6) the Secretary of Planning, or the Secretary's designee; (7) the Secretary of Transportation, or the Secretary's designee; (8) the Director of the Maryland Energy Administration, or the Director's designee; (9) the Director of the Interagency Committee on Public School Construction, or the Director's designee; (10) the Chancellor of the University System of Maryland, or the Chancellor's designee; and (11) six members appointed by the Governor to represent environmental, business, and citizen interests, one of whom has expertise in energy conservation or green building design standards. Term (c)(1) The term of a member appointed by the Governor is 2 years. (2) The terms of appointed members are staggered. (3) At the end of a term, a member continues to serve until a successor is appointed and qualifies. (4) A member who is appointed after a term has begun serves only for the remainder of that term and until a successor is appointed and qualifies. (5) The Governor may remove an appointed member for incompetence, misconduct, or failure to perform the duties of the position. (6) A member appointed by the Governor may not receive compensation, but is entitled to reimbursement for expenses under the Standard State Travel Regulations,1 as provided in the State budget. Chair (d)(1) The Governor shall appoint a chair from among the Council members. (2) The Council may act with an affirmative vote of nine members. 12096859.2 Staff (e) Staff support to the Council shall be provided by the Department of General Services, with assistance as necessary to be furnished by other involved agencies and units of State government. Powers and duties (f) The Maryland Green Building Council shall: (1) evaluate current high performance building technologies; (2) provide recommendations concerning the most cost-effective green building technologies that the State might consider requiring in the construction of State facilities, including consideration of the additional cost associated with the various technologies; (3) provide recommendations concerning how to expand green building in the State; and (4) develop a list of building types for which green building technologies should not be applied, taking into consideration the operational aspects of facilities evaluated, and the utility of a waiver process where appropriate; and (5) establish a process for receiving public input.Reporting requirements (g) On or before November 1 of each year, the Council shall report to the Governor and the General Assembly, in accordance with § 2-1246 of the State Government Article, as to recommendations for the implementation plan for a higher performance building program in the State and any progress that has been made during the preceding year. TAX - GENERAL TITLE 10. INCOME TAX SUBTITLE 7. INCOME TAX CREDITS § 10-722. Green buildings. Definitions (a)(1) In this section the following words have the meanings indicated. (2) “Administration” means the Maryland Energy Administration. (3)(i) “Allowable costs” means amounts properly chargeable to capital account, other than for land, that are paid or incurred on or after July 1, 2001, for: 1. construction or rehabilitation; 2. commissioning costs; 3. interest paid or incurred during the construction or rehabilitation period; 4. architectural, engineering, and other professional fees allocable to construction or rehabilitation; 5. closing costs for construction, rehabilitation, or mortgage loans; 6. recording taxes and filing fees incurred with respect to construction or rehabilitation; and 7. finishes and furnishings consistent with the regulations adopted by the Administration under this section, lighting, plumbing, electrical wiring, and ventilation. (ii) “Allowable costs” does not include: 1. the cost of telephone systems and computers, other than electrical wiring costs; 2. legal fees allocable to construction or rehabilitation; 12096859.2 3. site costs, including temporary electric wiring, scaffolding, demolition costs, and fencing and security facilities; 4. finishes or furnishings that are not consistent with the regulations adopted by the Administration under this section; or 5. the cost of purchasing or installing fuel cells, wind turbines, or photovoltaic modules. (4) “Applicable energy efficiency standards” means ASHRAE/IESNA Standard 90.1-1999, Energy Standard for Buildings Except Low-Rise Residential Buildings, published by the American Society of Heating, Refrigerating and Air-Conditioning Engineers. (5) “Base building” means all areas of a building not intended for occupancy by a tenant or owner, including the structural components of the building, exterior walls, floors, windows, roofs, foundations, chimneys and stacks, parking areas, mechanical rooms and mechanical systems, and owner-controlled or operated service spaces, sidewalks, main lobby, shafts and vertical transportation mechanisms, stairways, and corridors. (6) “Commissioning” means: (i) the testing and fine-tuning of heat, ventilating, and air-conditioning systems and other systems to assure proper functioning and adherence to design criteria; and (ii) the preparation of system operation manuals and instruction of maintenance personnel. (7) “Credit allowance year” means the later of: (i) the taxable year during which: 1. the property, construction, completion, or rehabilitation on which the credit allowed under this section is based is originally placed in service; or 2. a fuel cell, wind turbine, or photovoltaic module constitutes a qualifying alternate energy source and is fully operational; or (ii) the earliest taxable year for which the credit may be claimed under the initial credit certificate issued under subsection (k) of this section. (8) “Eligible building” means a building located in the State that: (i) 1. is a building used primarily for nonresidential purposes if the building contains at least 20,000 square feet of interior space; 2. is a residential multifamily building with at least 12 dwelling units that contains at least 20,000 square feet of interior space; or 3. is any combination of buildings described in item 1 or 2 of this item; (ii) in the case of a newly constructed building for which a certificate of occupancy was not issued before July 1, 2001: 1. is located on a qualified brownfields site, as defined under § 5-301 of the Economic Development Article; or 2. A. is located in a priority funding area under § 5-7B-02 of the State Finance and Procurement Article; and B. is not located on wetlands, the alteration of which requires a permit under § 404 of the federal Clean Water Act, 33 U.S.C. § 1344; and (iii) in the case of a rehabilitation of a building: 1. is located in a priority funding area under § 5-7B-02 of the State Finance and Procurement Article or on a qualified brownfields site as defined under § 5-301 of the Economic Development Article; or 2. is not an increase of more than 25% in the square footage of the building. (9) “Fuel cell” means a device that produces electricity directly from hydrogen or hydrocarbon fuel through a noncombustive electrochemical process. 12096859.2 (10) “Green base building” means a base building that is part of an eligible building and meets the requirements set out in subsection (i) of this section. (11) “Green whole building” means a building for which the base building is a green base building and all tenant space is green tenant space. (12) “Green tenant space” means tenant space in a building if the building is an eligible building and the tenant space meets the requirements of subsection (j) of this section. (13) “Incremental cost of building-integrated photovoltaic modules” means: (i) the cost of building-integrated photovoltaic modules and any associated inverter, additional wiring or other electrical equipment for the photovoltaic modules, or additional mounting or structural materials, less the cost of spandrel glass or other building material that would have been used if building-integrated photovoltaic modules were not installed; (ii) incremental labor costs properly allocable to on-site preparation, assembly, and original installation of photovoltaic modules; and (iii) incremental costs of architectural and engineering services and designs and plans directly related to the construction or installation of photovoltaic modules. (14) “Qualifying alternate energy sources” means building-integrated and nonbuildingintegrated photovoltaic modules, wind turbines, and fuel cells installed to serve the base building or tenant space that: (i) have the capability to monitor their actual power output; (ii) are fully commissioned upon installation, and annually thereafter, to ensure that the systems meet their design specifications; and (iii) in the case of wind turbines, meet any applicable noise ordinances. (15) “Tenant improvements” means improvements that are necessary or appropriate to support or conduct the business of a tenant or occupying owner. (16) “Tenant space” means the portion of a building intended for occupancy by a tenant or occupying owner. Credit allowed, conditions and limitations (b)(1) An individual or a corporation may claim a credit against the State income tax as provided under this section for green buildings and green building components. (2) If the credit allowed under this section exceeds the State income tax, any unused credit may be carried forward and applied for succeeding taxable years until the earlier of: (i) the full amount of the credit is used; or (ii) the expiration of the 10th year after the taxable year for which the credit was allowed. (3) For each of the credits under subsections (c) through (h) of this section, the credit may not be allowed for any taxable year unless: (i) the taxpayer has obtained and filed an initial credit certificate and an eligibility certificate issued under subsection (k) of this section; (ii) a certificate of occupancy for the building has been issued; and (iii) the property with respect to which the credit is claimed is in service during the taxable year. (4) The total amount allowed in the aggregate for all credits under this section may not exceed the maximum set forth in the initial credit certificate obtained under subsection (k) of this section. 12096859.2 (5) In determining the amount of the credits under this section, a cost paid or incurred may not be the basis for more than one credit. Green whole building (c)(1) For the taxable year that is the credit allowance year, an owner or tenant may claim a credit in an amount equal to 8% of the allowable costs paid or incurred by the owner or tenant for the construction of a green whole building or the rehabilitation of a building that is not a green whole building to be a green whole building. (2) The allowable costs used to determine the credit amount allowed under this subsection for a green whole building may not exceed in the aggregate: (i) $120 per square foot for that portion of the building that comprises the base building; and (ii) $60 per square foot for that portion of the building that comprises the tenant space. Green base building (d)(1) For the taxable year that is the credit allowance year, an owner may claim a credit in an amount equal to 6% of the allowable costs paid or incurred by the owner for the construction of a green base building or the rehabilitation of a building that is not a green base building to be a green base building. (2) The allowable costs used to determine the credit amount allowed under this subsection for a green base building may not exceed, in the aggregate, $120 per square foot. Green tenant space (e)(1) For the taxable year that is the credit allowance year, an owner or tenant may claim a credit in an amount equal to 6% of the allowable costs for tenant improvements paid or incurred by the owner or tenant in the construction or completion of green tenant space or the rehabilitation of tenant space that is not green tenant space to be green tenant space. (2)(i) The allowable costs used to determine the credit amount allowed under this subsection for green tenant space may not exceed, in the aggregate, $60 per square foot. (ii) If an owner and tenant both incur allowable costs for tenant improvements under this subsection and the costs exceed $60 per square foot in the aggregate, the owner has priority as to costs constituting the basis for the green tenant space credit under this subsection. (3) The credit under this subsection for green tenant space may not be claimed by an owner of a building that occupies fewer than 10,000 square feet of the building. (4) The credit under this subsection for green tenant space may not be claimed by a tenant that occupies fewer than 5,000 square feet. Installation of a fuel cell (f)(1) For the taxable year that is the credit allowance year, an owner or tenant may claim a credit in the amount determined under this subsection for the installation of a fuel cell that is a qualifying alternate energy source and is installed to serve a green whole building, green base building, or green tenant space. (2) The amount of the credit allowed under this subsection is 30% of the sum of the capitalized costs paid or incurred by an owner or tenant with respect to each fuel cell installed, including the cost of the foundation or platform and the labor costs associated with installation. 12096859.2 (3) The costs used to determine the credit amount allowed under this subsection for installation of a fuel cell: (i) may not exceed $1,000 per kilowatt of installed DC rated capacity of the fuel cell; and (ii) shall be reduced by the amount of any federal, State, or local grant: 1. received by the taxpayer and used for the purchase or installation of the fuel cell; and 2. not included in the federal gross income of the taxpayer. Installation of photovoltaic modules (g)(1) For the taxable year that is the credit allowance year, an owner or tenant may claim a credit in the amount determined under this subsection for the installation of photovoltaic modules that constitute a qualifying alternate energy source and are installed to serve a green whole building, green base building, or green tenant space. (2) The amount of the credit allowed under this subsection is: (i) 20% of the incremental cost paid or incurred by an owner or tenant for building-integrated photovoltaic modules; and (ii) 25% of the cost of nonbuilding-integrated photovoltaic modules, including the cost of the foundation or platform and the labor costs associated with installation. (3) The costs used to determine the credit amount allowed under this subsection for installation of photovoltaic modules: (i) may not exceed the product obtained by multiplying $3 times the number of watts included in the DC rated capacity of the photovoltaic modules; and (ii) shall be reduced by the amount of any federal, State, or local grant: 1. received by the taxpayer and used for the purchase or installation of the photovoltaic equipment; and 2. not included in the federal gross income of the taxpayer. Installation of a wind turbine (h)(1) For the taxable year that is the credit allowance year, an owner or tenant may claim a credit in the amount determined under paragraph (2) of this subsection for the installation of a wind turbine that is a qualifying alternate energy source and is installed to serve a green whole building, green base building, or green tenant space. (2) The amount of the credit allowed under this subsection is 25% of the sum of the capitalized costs paid or incurred by an owner or tenant with respect to each wind turbine installed, including the cost of the foundation or platform and the labor costs associated with installation. Standards for green base building (i)(1) By regulation, the Administration shall adopt standards for a building to qualify as a green base building eligible for the tax credits under this section that are consistent with the criteria for green base buildings set forth by the United States Green Building Council or other similar criteria. (2) The regulations adopted under this subsection shall provide that the energy use shall be no more than 65% for new construction of a base building, or 75% in the case of rehabilitation of a base building, of the energy use attributable to a reference building that meets the requirements of applicable energy efficiency standards. 12096859.2 Standards for green tenant space (j)(1) By regulation, the Administration shall adopt standards for tenant space to qualify as green tenant space eligible for the tax credits under this section that are consistent with the criteria for green tenant space set forth by the United States Green Building Council or other similar criteria. (2) The regulations adopted under this subsection shall provide that the energy use shall be no more than 65% for new construction, or 75% in the case of rehabilitation, of the energy use attributable to a reference building that meets the requirements of applicable energy efficiency standards. Initial credit certificate (k)(1)(i) On application by a taxpayer, the Administration shall issue an initial credit certificate if the taxpayer has made a showing that the taxpayer is likely within a reasonable time to place in service property for which a credit under this section would be allowed. (ii) The initial credit certificate issued under this paragraph: 1. shall state the earliest taxable year for which the credit may be claimed and an expiration date; and 2. shall apply only to property placed in service on or before the expiration date. (iii) To avoid unwarranted hardship, the Administration at its discretion may extend the expiration date stated under an initial credit certificate. (iv) The initial credit certificate shall state the maximum amount of credit allowable in the aggregate for all credits allowed under this section. (v) The Administration may not issue initial credit certificates, in the aggregate, for more than $25,000,000 worth of credits. (vi) Except as provided in subparagraph (vii) of this paragraph, initial credit certificates shall be limited in their applicability, as follows: Credits in the aggregate may With respect to taxable not be allowed for more than: years beginning: $1 million 2003 $2 million 2004 $3 million 2005 $4 million 2006 $5 million 2007 $4 million 2008 $3 million 2009 $2 million 2010 $1 million 2011 (vii) As of the end of a calendar year, if certificates for credit amounts totaling less than the amount permitted with respect to taxable years beginning in that calendar year have been issued, the maximum amount that may be allowed for taxable years beginning in the subsequent calendar year shall be increased by the amount of the preceding year's shortfall. (viii) The Administration may not issue an initial credit certificate after December 31, 2011. 12096859.2 (ix) On January 1, 2004, and each year thereafter, the Administration shall provide to the Comptroller a list of all taxpayers in the prior taxable year that have been issued an initial credit certificate and shall specify for each taxpayer the earliest taxable year for which the credit may be claimed and the maximum amount of the credit allowable in the aggregate for all credits allowed under this section. (2)(i) For each taxable year for which a taxpayer claims a credit under this section with respect to a green whole building, green base building, green tenant space, fuel cell, photovoltaic module, or wind turbine, the taxpayer shall obtain an eligibility certificate from an architect or professional engineer licensed to practice in this State. (ii) An eligibility certificate issued under this paragraph shall consist of a certification, under the seal of the architect or engineer, that the property that is the basis for the credit that is claimed is in service and that: 1. the building, base building, or tenant space with respect to which the credit is claimed is a green whole building, green base building, or green tenant space; and 2. any fuel cell, photovoltaic module, or wind turbine with respect to which the credit is claimed constitutes a qualifying alternate energy source and is fully operational. (iii) The certification under subparagraph (ii) of this paragraph: 1. shall be made in accordance with the regulations adopted by the Administration under this section specifying the standards and guidelines for each credit under this section; and 2. shall set forth the specific findings on which the certification was based. (iv) The taxpayer shall file the eligibility certificate and the associated initial credit certificate with the taxpayer's income tax return and shall file duplicate copies of the eligibility certificate with the Administration. (v) The eligibility certificate shall include: 1. sufficient information to identify each building or space; and 2. any other information that the Administration or the Comptroller requires by regulation. (3) If the Administration has reason to believe that an architect or professional engineer, in making any certification under this subsection, engaged in professional misconduct, the Administration shall inform the appropriate professional board of the suspected misconduct. (4)(i) The Comptroller and the Administration may adopt regulations necessary to carry out the provisions of this section. (ii) Regulations adopted under this section shall construe the provisions of this section in such a manner as to encourage the development of green whole buildings, green base buildings, and green tenant space and to maintain high, but commercially reasonable, standards for obtaining tax credits under this section. (5) On or before April 1, 2005, the Comptroller and the Administration, jointly and in consultation with the Department of the Environment, shall submit to the Governor and, subject to § 2-1246 of the State Government Article, to the General Assembly, a written report regarding: (i) the number of certifications and taxpayers claiming the credit under this section; (ii) the amount of the credits claimed; (iii) the geographical distribution of the credits claimed; and (iv) any other available information the Administration determines to be meaningful and appropriate. 12096859.2 (6) The Comptroller shall ensure that the information is presented and classified in a manner consistent with the confidentiality of tax return information. Regulations (l) On or before July 1, 2002, the Administration, in consultation with the Department of the Environment and the Department of Natural Resources, shall adopt regulations with respect to the certification of green whole buildings, green base buildings, and green tenant space that are consistent with criteria set forth by the State's Green Buildings Council or other similar criteria for: (1) energy use; (2) appliance and heating, cooling, and hot water equipment standards; (3) air conditioning equipment, including chillers; (4) building materials, finishes, and furnishings; (5) stormwater runoff for new construction; (6) water conservation and efficiency; and (7) indoor air quality, in consultation with the Department of Health and Mental Hygiene. Public Safety Title 12. Building and Material Codes; Other Safety Provisions Subtitle 5. Maryland Building Performance Standards § 12-509. Construction of high-performance homes encouraged High-performance home defined (a) In this section, “high-performance home” means a new residential structure that meets or exceeds the current version of: (1) the Silver rating of the International Code Council's 700 National Green Building Standards; or (2) the Silver rating of the U.S. Green Building Council's LEED (Leadership in Energy and Environmental Design) for Homes Rating System. Encouragement from Department (b) The Department shall encourage the construction of new residential structures in the State that are high-performance homes. TAX - PROPERTY TITLE 9. PROPERTY TAX CREDITS AND PROPERTY TAX RELIEF SUBTITLE 2. STATEWIDE OPTIONAL § 9-242. High performance buildings. (a)(1) Subject to paragraph (2) of this subsection, in this section, “high performance building” means a building that: 12096859.2 (i) achieves at least a silver rating according to the U.S. Green Building Council's LEED (Leadership in Energy and Environmental Design) green building rating system as adopted by the Maryland Green Building Council; (ii) is a residential building that achieves at least a silver rating according to the International Code Council's 700 National Green Building Standards; (iii) achieves at least a comparable rating according to any other appropriate rating system; or (iv) meets comparable green building guidelines or standards approved by the State. (2) For purposes of paragraph (1) of this subsection, under LEED Credit MR7 or a similar criterion in a comparable rating system, credit may be awarded for the use of wood-based materials derived from all credible sources, including the Sustainable Forestry Initiative Program, the Canadian Standards Association, the American Tree Farm System, and other credible certified sources programs. (b) The Mayor and City Council of Baltimore City or the governing body of a county or of a municipal corporation may grant, by law, a tax credit against the county or municipal corporation property tax imposed on a high performance building. (c) A county or municipal corporation may provide, by law, for: (1) the amount of a property tax credit under this section; (2) the duration of a property tax credit under this section; (3) the criteria and qualifications necessary to receive the credit; and (4) any other provision necessary to carry out this section. Public Utilities (Refs & Annos) Division II. Washington Suburban Sanitary Commission Title 21. Property and Land Use Matters Subtitle 1. Acquisition and Disposition of Property § 21-104. Use of green building technologies with capital projects Definitions (a)(1) In this section the following words have the meanings indicated. (2) “High performance building” means a building that: (i) meets or exceeds the current version of the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) Green Building Rating System Silver rating; or (ii) achieves at least a comparable numeric rating according to a nationally recognized, accepted, and appropriate numeric sustainable development rating system, guideline, or 12096859.2 standard approved by the Secretary of Budget and Management and the Secretary of General Services. (3) “Major renovation” means the renovation of a building where: (i) the building shell is to be reused for the new construction; (ii) the heating, ventilating, and air-conditioning (HVAC), electrical, and plumbing systems are to be replaced; and (iii) the scope of the renovation is 7,500 square feet or greater. Legislative intent (b) It is the intent of the General Assembly that, to the extent practicable: (1) the Commission shall employ green building technologies when constructing or renovating a Commission-owned building not subject to this section; and (2) high performance buildings shall meet the criteria and standards established under the “High Efficiency Green Building Program” adopted by the Maryland Green Building Council. Buildings 7,500 square feet or greater (c) Except as provided in subsections (d) and (e) of this section, if a capital project includes the construction or major renovation of a building that is 7,500 square feet or greater, the building shall be constructed or renovated to be a high performance building. Unoccupied buildings not required to be high performance (d) The following types of unoccupied buildings are not required to be constructed or renovated to be high performance buildings: (1) warehouse and storage facilities; (2) garages; (3) maintenance facilities; (4) transmitter buildings; (5) pumping stations; and (6) other similar types of buildings, as determined by the Commission. Request for waivers from compliance (e)(1) The Commission may request from the county where the proposed capital project is located a waiver from complying with subsection (c) of this section. (2) On receipt of a written request of a waiver under this subsection, with approval of the county executive, the county council of the county where the proposed capital project is located may issue a waiver under this subsection if the county council determines that the use of a high performance building in a proposed capital project is not practicable. 12096859.2 Massachusetts (back to top) § 30. Evaluation of energy consumption of buildings and their major energy using systems The director of facilities management shall make provision, as part of development of an inventory of buildings owned or otherwise occupied by state agencies or building authorities pursuant to section 24, for evaluation of the energy consumption of each building and its major energy using systems. The director may, with the approval of the commissioner and subject to appropriation or allocation, hire consultants for the purpose of performing energy audits designed to determine the need for energy conservation projects. The director shall recommend to the commissioner standards and guidelines governing energy conservation maintenance and operating procedures. The director shall in conjunction with the commissioner of energy resources set priorities and energy efficiency standards for all state buildings and conduct energy audits of said buildings. The bureau may contract with professional consulting firms to perform the energy audits. All energy conservation projects within the jurisdiction of the division) of capital asset management and maintenance as defined by section 4, including projects funded out of any lump-sum energy conservation fund or account, shall be fully subject to this chapter except that alternative energy property program projects authorized pursuant to section 11 of chapter 25A shall not be subject to sections 11 and 12, sections 13 to 28, inclusive, or this section. § 31. Evaluation of potential for increasing energy efficiency in buildings owned or leased by an authority or state agency The division of capital asset management and maintenance shall evaluate the potential for increasing the energy efficiency in each building owned by an authority or state agency, or leased by such authority or agency for at least a 10 year period. Energy efficiency measures, as used in this section shall include, but not be limited to, heating, air-conditioning, lighting, water, and electric systems powered by coal, electricity, natural gas, oil. The annual energy cost savings realized by each authority or agency shall be retained in that the authority or agency utility account and applied to additional energy efficiency measures in subsequent years. Actions taken by the division of capital asset management and maintenance in accordance with this section shall be coordinated with ongoing energy conservation projects in state-owned or leased buildings. Utility programs offering energy auditing services shall be used whenever appropriate. The term “authority” used in this section shall not include authorities of cities or towns, such as local housing projects. 12096859.2 EXECUTIVE ORDER NO. 484 LEADING BY EXAMPLE—CLEAN ENERGY AND EFFICIENT BUILDINGS WHEREAS, buildings are significant users of energy, water and natural resources, consuming 39% of U.S. energy, 70% of U.S electricity, 12% of U.S. potable water, and 40% of raw materials globally; WHEREAS, the Commonwealth of Massachusetts manages over 64 million square feet of buildings at hundreds of facilities, which annually consume over 1 billion kilowatt hours of electricity, 22 million gallons of heating oil, and 46 million therms of natural gas; WHEREAS, such energy consumption results in greenhouse gas emissions totaling more than 1.1 million tons per year, equivalent to the emissions generated by more than 200,000 cars driven for one year; WHEREAS, environmental and health issues related to energy consumption, such as global climate change, regional mercury contamination, and urban asthma rates are critical issues that need to be addressed immediately and comprehensively; WHEREAS, state government has an obligation to lead by example and demonstrate that large entities such as state colleges and universities, prisons, hospitals and others can make significant progress in reducing their environmental impacts, thereby providing a model for businesses and private citizens; WHEREAS, by setting clean energy targets and developing clean energy practices, state agencies can play an important role in the development and support of new and local technologies, fostering innovation and benefiting the Massachusetts economy; WHEREAS, leading-by-example programs can not only reduce environmental and health impacts but can also lead to significant cost savings; WHEREAS, the Commonwealth is already committed to environmental protection and resource conservation through a variety of regional and state commitments, including, but not limited to, the Clean State Initiative, the Massachusetts Beyond 2000 Solid Waste Master Plan, the New England Governors/Eastern Canadian Premiers 2001 Climate Change Action Plan, the Commonwealth’s Climate Protection Plan, the Toxics Use Reduction Reform Act of 2006, the Massachusetts Zero Mercury Strategy, and the Mass. LEED Plus green building standards for state construction; WHEREAS, all the clean energy and environmental efforts under way within state government operations should be coordinated to ensure that programs are developed and implemented as effectively and efficiently as possible; WHEREAS, this Administration intends to send a clear message to all state agencies that practicing what we preach is a priority and that agencies should integrate clean energy, 12096859.2 environmental protection, and resource conservation programs, policies and procedures into all appropriate aspects of governing; NOW, THEREFORE, I, Deval L. Patrick, Governor of the Commonwealth of Massachusetts, by virtue of the authority vested in me by the Constitution, Part 2, c. 2, § I, Art. I, order as follows: I affirm that state agencies shall prioritize practices and programs that address resource use at state facilities, including a reduction in energy consumption derived from fossil fuels and emissions associated with such consumption. Furthermore, I direct the Executive Offices of Energy and Environmental Affairs (EOEEA) and Administration and Finance (A&F) to establish and direct a Leading by Example Program (the Program), the purpose of which shall be to oversee and coordinate efforts at state agencies, including all UMass campuses and all state and community colleges, to reduce their environmental impact. Such efforts shall include, but not be limited to, the provisions of this Order to promote energy conservation and clean energy practices, as well as waste reduction and recycling, environmentally preferable procurement, toxics use reduction, water conservation, sustainable transportation, open space and natural resource protection, and improved compliance practices. The Secretaries of EOEEA and A&F or their designees shall co-chair the Leading by Example Council (Council), which shall consist of members from each of the Commonwealth Executive Offices, with specific additional membership to be determined by the co-chairs. The purposes of the Council shall be to provide advice and feedback to the Program to facilitate the implementation of key initiatives that will result in reduced environmental impacts at state agencies. The Council shall coordinate efforts with all agencies, who shall appoint program coordinators to act as liaisons between the Council and agency staff and support Program efforts. Furthermore, the Program shall direct all efforts across state government to track and measure progress toward clean energy and environmental goals, develop long-term programs at state facilities to identify and implement cost-effective initiatives that will result in environmental improvement, and offer educational and training efforts necessary to carry out the provisions of this Order and other related directives. Agencies shall provide all necessary support to the Council and Program and agency staff shall serve, as appropriate, on the Council or other internal committees as requested by the Secretaries of EOEEA and A&F. Agencies shall also provide all requested data related to facility operations and energy use at least annually or on an alternative schedule determined by the Council. I. Energy Targets for Agency Buildings All Commonwealth agencies as a whole and, to the greatest extent feasible individually, shall meet the following targets: ï‚· 12096859.2 Reduce greenhouse gas emissions that result from state government operations by 25% by Fiscal Year 2012, 40% by 2020 and 80% by 2050. In calculating emissions, agencies shall use Fiscal Year 2002 as the baseline, and emissions reductions shall be measured on an absolute basis and not adjusted for facility expansion, load growth, or weather. ï‚· Reduce overall energy consumption at state owned and leased (at which the state pays directly for energy) buildings by 20% by Fiscal Year 2012 and 35% by 2020. Such reductions shall be based on a Fiscal Year 2004 baseline and measured on a BTU per square foot basis. ï‚· Procure 15% of agency annual electricity consumption from renewable sources by 2012 and 30% by 2020. This mandate may be achieved through procurement of renewable energy supply, purchase of renewable energy certificates (RECs) in accordance with EOEEA guidance and/or through the production of on-site renewable power. Only renewable sources that qualify for the Massachusetts Renewable Portfolio Standard (RPS) shall be eligible. Alternative compliance payments under 225 CMR 14.08 shall not be required under this Order. ï‚· Utilize bio heat products with a minimum blend of 3% bio based materials for all heating applications that use #2 fuel starting with the winter of 2007-2008, and 10% bio heat blend by 2012. ï‚· All new construction and major renovations, effective immediately, must meet the Mass. LEED Plus green building standard established by the Commonwealth of Massachusetts Sustainable Design Roundtable. ï‚· Reduce potable water use, as compared to 2006, by 10% by 2012 and 15% by 2020. Where appropriate, EOEEA, A&F and the Council shall establish alternative baselines and guidelines for meeting the above targets. II. Clean Energy Committee A Clean Energy Committee, to be chaired by Secretary of the Executive Office of Energy and Environmental Affairs and the Commissioner of the Division of Capital Asset Management (DCAM), or their designees, shall be established to facilitate implementation of this Order and to assist agencies in their efforts to meet the targets and requirements herein. The Committee shall consist of representatives of the Division of Energy Resources (DOER), the Operational Services Division (OSD), and other agencies as determined by the chairs. The Committee shall meet regularly and shall communicate with agencies through designated Program Coordinators, who shall be responsible for disseminating all applicable information from the Committee to agency staff, coordinating agency energy activities, and tracking and reporting all requested energy consumption data to the Committee and Council. The Committee shall, by February 1st of each year, submit to the Governor an annual report on the results of energy conservation actions taken by agencies during the prior fiscal year, the environmental and economic impacts of such actions, and recommendations for future 12096859.2 energy reductions. The Committee shall also solicit advice on energy reduction goals from experts outside of state government, including, but not limited to, federal agencies, other states, and not-for-profit organizations. The Committee shall also consider and propose longer-term energy conservation strategies for state government and submit such proposals to the Governor. III. Energy Measures and Strategies To meet the above targets, agencies may utilize a variety of energy conservation, energy efficiency and renewable energy strategies, including but not limited to: ï‚· Comprehensive on-site energy efficiency programs ï‚· Installation of energy efficient HVAC equipment ï‚· Fuel switching ï‚· Purchase of energy efficient products ï‚· Increased energy conservation by employees ï‚· Installation of on-site renewable energy and combined heat and power systems ï‚· Procurement of renewable energy ï‚· Use of bio-based and other alternative fuels ï‚· Purchase of Renewable Energy Certificates To meet the goals of this Order, all agencies shall adopt, where applicable, specific measures including but not limited to: Energy Conservation ï‚· Develop and disseminate an agency-wide policy that encourages employees to reduce energy use by turning off lights in rooms when not in use, shutting down computers when leaving work, minimizing use of personal appliances, and other actions that will lead to a reduction in energy consumption and costs. ï‚· Run dishwashers and laundry equipment only when fully loaded. ï‚· Set thermostats 2 degrees lower than usual during the winter and 2 degrees higher than usual during the summer. ï‚· Reduce lighting in common areas without compromising safety. ï‚· Minimize energy use at facilities during non-work hours. 12096859.2 Energy Efficient Products I direct the Environmentally Preferable Products (EPP) Program of OSD to continue to make energy efficient products available on statewide contracts that meet the needs of state agencies and the requirements of this Order. Agencies shall also adopt, where applicable, specific energy efficiency measures including but not limited to the following: ï‚· Use only efficient lights such as compact fluorescent lamps, LED lighting, or other similar products. Until further notice, agencies shall be prohibited from purchasing incandescent lights unless absolutely necessary to meet a specific and unique agency need. ï‚· Install LED and/or photoluminescent exit signs to replace those with incandescent or fluorescent lighting wherever cost effective. ï‚· Install programmable thermostats. ï‚· Install motion sensors or timing devices in rooms that are used only intermittently, such as conference rooms, bathrooms, etc. ï‚· Procure only computers, monitors, copiers, printers, and other office equipment that are EnergyStar qualified, enable all EnergyStar features upon installation, and establish policies and procedures to ensure that such equipment continues to operate efficiently during its life. Energy Efficiency Programs I direct the Division of Capital Asset Management, in collaboration with EOEEA, to maximize the number and scope of energy efficiency efforts at state facilities. DCAM and EOEEA shall, in consultation with A&F, identify and recommend appropriate changes to construction laws and financing mechanisms necessary to ensure that the following goals are achieved by the end of Fiscal Year 2012: ï‚· Comprehensive, large-scale energy efficiency projects at all appropriate facilities over 100,000 square feet. ï‚· Implementation of energy efficiency programs such as installation of new equipment, agency coordinated performance contracts, and lighting retrofits at all facilities where the cost of such programs is less than $1 million. ï‚· Completion of smaller energy efficiency projects at all appropriate smaller state facilities where the cost of such projects is less than $100,000, and electric and gas utility incentive programs cover a significant portion of the project cost. Furthermore, DCAM and EOEEA shall coordinate efforts to ensure that: 12096859.2 ï‚· All renovation and new construction projects identify and utilize all available utility rebates. ï‚· All applicable buildings over 50,000 square feet undergo a “retro-commissioning” process to identify and implement low-cost and no-cost energy and water conservation measures with short payback periods. ï‚· Changes to building processes, funding mechanisms and regulations that are necessary to meet the goals of this Order are developed and implemented. In addition, DCAM is directed to ensure that site selection for leased space considers energy performance. Energy Training and Maintenance DCAM’s Office of Facilities Maintenance shall, in coordination with agencies: IV. ï‚· Develop and implement a facility maintenance program and schedule for lighting and HVAC systems, including but not limited to, lubricating, balancing, aligning, vacuuming, cleaning, and checking seals, to ensure optimum efficiency. ï‚· Ensure that all appropriate staff receive regular training on proper facility management and maintenance practices. Renewable Energy To achieve the renewable energy goals of this Order and obtain 15% of agency electricity from renewable resources by 2012 and 30% by 2020, agencies shall make every effort to power their facilities with clean, renewable energy resources (e.g. wind, solar PV, solar thermal, biomass, landfill gas, anaerobic digestion) that are RPS eligible. Such efforts may include the installation of on-site distributed generation, the purchase of renewable power from energy suppliers, and/or the use of Renewable Energy Certificates (RECs) in compliance with the REC guidance established by EOEEA. EOEEA, DCAM, OSD and DOER shall continue to assist agencies in meeting these goals through bundled clean electricity contracts, technical and financial assistance, project management and policy initiatives. These entities shall continue to monitor and evaluate options for increasing the renewable energy portfolio of state government’s electricity use. V. Biofuels To achieve the 3% bioheat goal of this Order, agencies shall commence the purchase of this fuel as of October 1, 2007 for all facilities that use #2 heating oil, or as soon as available through statewide contracts. To facilitate agency use of this fuel, EOEEA and OSD shall conduct informational and training sessions prior to October 1, 2007 to address any questions and report on the result of the bioheat pilot conducted during the winter of 2006-2007. 12096859.2 Additionally, OSD is hereby directed to establish a heating fuel contract that specifies biofuel for oil heating products specified by this Order. Furthermore, I direct EOEEA and OSD to work with cities and towns to inform them of this new policy and encourage them to utilize bioheat. Pending availability, performance and cost, EOEEA and OSD shall review annually the use of bioheat and develop recommendations for increasing the bioheat goals in this Order to a minimum of 10% by 2012. VI. Building Design and Construction DCAM and all agencies involved in the construction and renovation of state facilities shall ensure that all new construction and major renovation projects are energy and water efficient, conserve the use of resources, and provide healthy and productive spaces for employees, clients, and visitors. To achieve these goals, I endorse the recommendations of the Commonwealth of Massachusetts Sustainable Design Roundtable (Roundtable), which require all new construction at state agencies and significant renovation projects over 20,000 square feet to meet a Mass. LEED Plus building standard. For projects smaller than 20,000 square feet, all projects shall at least meet the minimum energy performance standards established by the Roundtable. The Mass. LEED Plus standard includes: ï‚· Certification by the U.S. Green Building Council Leadership in Energy and Environmental Design (LEED) program for all new construction and major renovation projects over 20,000 square feet; ï‚· Energy Performance 20% better than the Massachusetts Energy Code; ï‚· Independent 3rd party commissioning; ï‚· Reduction of outdoor water consumption by 50% and indoor water consumption by 20% relative to standard baseline projections; and ï‚· Conformance with at least 1 of 4 identified smart growth criteria. The Mass. LEED Plus standard shall apply to all projects overseen by DCAM and any other executive agency, as well as those that are built for use by state agencies on state land. In addition, EOEEA shall coordinate efforts to incorporate the Mass. LEED Plus standard into all non-executive branch agencies involved in construction. EOEEA and DCAM shall report each year on progress made with regard to integration of this standard into state building projects. Furthermore, whenever DCAM requires the construction of a new building to be leased by DCAM, DCAM shall establish and incorporate energy performance criteria consistent with the energy goals of this Order. 12096859.2 Additionally, I direct EOEEA and DCAM to support education and training programs for agency personnel and periodically consult with design and construction practitioners to review progress in meeting green building standards, develop strategies to improve communication of the benefits of green buildings, and identify new opportunities for expanded green building efforts. VII. Distributed Generation In order to facilitate the installation of on-site renewable energy and Combined Heat and Power projects, within 6 months of the date of this Order, the DOER shall provide an analysis of the barriers to distributed generation that impede the successful completion of such projects at state facilities and, through collaboration with DCAM, OSD, and the Comptroller’s office, shall develop recommendations on addressing identified barriers. Forward Capacity Market In order to take advantage of the new ISO-New England Forward Capacity Market (FCM) Program, including the Demand Response Program, which allocate payments for new electric generation capacity, and measurable reductions in electricity use, agencies shall identify and submit all applicable projects for inclusion in the FCM program. DCAM shall coordinate this effort and, in collaboration with EOEEA and OSD, establish the necessary vehicles to facilitate agency participation in this program as well as ensure that payments received are allocated to agencies for additional energy reduction activities. DCAM may elect to allocate portions of FCM payments in order to manage this program as well as other related energy efforts. IX. Energy Tracking The EOEEA is hereby charged with development and implementation of an Energy Information System (EIS) that shall facilitate the tracking of agency energy use and prioritization of energy efficiency programs and projects at state facilities. Such a system will allow facilities to compare building energy consumption and rate energy performance of Commonwealth buildings. DOER and DCAM shall collaborate in the development of the EIS and shall work to ensure that DCAM information systems, such as CAMIS, are effectively linked with any new energy tracking systems. EOEEA and DCAM shall annually track all energy use at state facilities to determine compliance with the goals of this Order and, as appropriate, share this data with other state agencies to further the purposes of this Order. The development of the EIS shall not eliminate the need for agencies to track other energy and water use and submit annual data to EOEEA as directed by the Council. X. Water Conservation Agencies shall make every effort to reduce overall water use and increase water use efficiency to the maximum extent possible. Toward this end, all state agencies shall reduce water use through the following indoor and outdoor measures: 12096859.2 Indoor Water Consumption ï‚· Conduct periodic water audits and system-wide leak detection programs. ï‚· Work toward metering all significant water uses. ï‚· Strictly apply plumbing codes, and actively promote waterless plumbing fixtures, where appropriate. ï‚· Replace and retrofit older water consuming equipment, such as toilets, faucets and showerheads, with modern, more efficient devices as quickly as possible. ï‚· Implementation of energy efficiency programs such as installation of new equipment, agency coordinated performance contracts, and lighting retrofits at all facilities where the cost of such programs is less than $1 million. Outdoor Water Consumption XI. ï‚· Minimize, and wherever possible eliminate, use of potable water and groundwater for outdoor watering purposes, street cleaning, and building washing. ï‚· Lower watering frequency. ï‚· Improve watering efficiency by watering lawns and plants only when necessary through use of moisture sensors and/or drip irrigation techniques. ï‚· Incorporate Low Impact Development (LID) techniques wherever possible, including use of natural landscaping, permeable pavement, and native and drought resistant vegetation to prevent run-off and ensure rainwater infiltration into the groundwater. ï‚· When procuring services for lawn and landscape maintenance, require contractors to minimize water use wherever possible through incorporation of the above techniques. Technology Agencies are hereby directed to analyze and consider use of innovative technologies wherever possible, either on a pilot- or long-term basis, when such technologies can demonstrate environmental and fiscal benefits. Where possible, and to the extent permitted by law, agencies shall work to identify technologies developed and/or manufactured in Massachusetts. XII. Financing In order to facilitate the above efforts, EOEEA and A&F shall, within 6 months of the effective date of this Order, submit to me recommendations concerning financing options that 12096859.2 will result in energy and water improvements at state facilities without requiring significant infusion of state funding. XIII. Resources and Commitment All agencies shall provide the necessary resources and commitment to meet the goals of this Order. XIV. Effective Date This Order shall take effect immediately and shall continue in effect until amended, superseded, or revoked by subsequent Executive Order. This Order shall supersede Executive Order No. 438 and all provisions contained in Administration Bulletin #11 and #12. Given at the Executive Chamber in Boston this 18th day of April in the year of our Lord two thousand and seven, and of the Independence of the United States of America two hundred and thirty-one. EXECUTIVE ORDER NO. 515 - ESTABLISHING AN ENVIRONMENTAL PURCHASING POLICY WHEREAS, the Commonwealth of Massachusetts purchases an estimated $600 million of goods and non-construction services per year, resulting in environmental and public health impacts related to the production, transport, use, and disposal of the products it consumes; WHEREAS, it is now widely recognized that, through the procurement of environmentally preferable products and services, large institutions such as the Commonwealth of Massachusetts can directly reduce the environmental and health-related impacts of its consumption, lower lifecycle costs, promote local economic development, and serve as a model for businesses, institutions, and individual residents; WHEREAS, by focusing on environmentally preferable products and services, the Commonwealth can encourage manufacturers and service providers to incorporate environmental and sustainability considerations into their products and operations locally, nationally, and even globally; WHEREAS, Massachusetts has taken a leadership role toward a green energy future with the passage of the Green Communities Act, Global Warming Solutions Act, Clean Energy Biofuels Act, and Green Jobs Bill, all of which are designed to facilitate energy reduction, increase the use of renewable energy, reduce Commonwealth greenhouse gas emissions, and stimulate the clean energy economy throughout the Commonwealth; 12096859.2 WHEREAS, the Commonwealth is an established leader in a wide number of environmental initiatives, including its Leading by Example Program established by Executive Order No. 484, which directs state agencies to reduce the environmental impacts of their operations through aggressive reduction targets for greenhouse gas emission and energy use and through goals for the increased use of renewable power and biofuels; WHEREAS, the Commonwealth's Operational Services Division and its Environmentally Preferable Products Procurement Program have already made progress in integrating environmental and sustainability considerations into the many statewide contracts used by Commonwealth agencies to procure the majority of products and services, as well as by many other public entities; and, WHEREAS, the Commonwealth is poised to build upon its current national leadership role by significantly expanding its ability to leverage its purchasing power to reduce the impact its purchases will have on the Commonwealth's natural resources and public health and on current and future generations of Massachusetts residents; NOW, THEREFORE, I, Deval L. Patrick, Governor of the Commonwealth of Massachusetts, by virtue of the authority vested in me by the Constitution, Part 2, c. 2, § I, Art. I, do hereby order as follows: Section 1: Applicability This Executive Order shall apply to all state agencies in the Executive Department. As used in this Order, "state agencies" (or "agencies") shall include all executive offices, boards, commissions, agencies, departments, divisions, councils, bureaus, and offices, now existing and hereafter established. Section 2: Declaration of Policy As part of the Commonwealth's overall goals of conserving natural resources, reducing waste, protecting public health and the environment, and promoting the use of clean technologies, recycled materials, and less toxic products, it shall be the policy of the Executive Department of the Commonwealth of Massachusetts and its agencies to reduce their impact on the environment and enhance public health by procuring Environmentally Preferable Products and services (EPPs) whenever such products and services are readily available, perform to satisfactory standards, and represent best value, consistent with 801 CMR 21.00. 12096859.2 Environmentally Preferable Products shall include, but not be limited to products and services that: contain recycled materials; conserve energy or water; minimize waste; are less toxic and hazardous; reduce the generation, release, or disposal of toxic substances; protect open space; and/or otherwise lessen the impact of such products or services on public health and the environment. When purchasing goods and services, agencies shall consider the total cost of ownership, including all costs associated with the production, purchase, transportation, use, operation, and disposal of such products or services. Agencies shall also take into account any significant environmental and health impacts resulting from their purchasing decisions and incorporate those impacts into their best value considerations. Agencies shall also strive to incorporate the directives in this Order into all applicable grant and funding programs. Section 3: Program Coordination, Implementation, and Oversight The Secretary of the Executive Office for Administration and Finance (ANF) or designee, shall work in collaboration with the Secretary of the Executive Office of Energy and Environmental Affairs (EEA) or designee, to ensure that products and services purchased by state agencies meet the standards and mandates of this directive. The Operational Services Division (OSD), through its Environmentally Preferable Products Procurement Program (the EPP Program), shall provide overall program management, oversee efforts to institute minimum standards for the procurement of EPPs, and establish environmental procurement goals where appropriate. Within this role, the EPP Program shall, in collaboration with EEA's Leading by Example Program (LBE Program), work to develop an increasing number of statewide contracts for EPPs, issue agency guidance, monitor compliance, promote the benefits and increased use of EPPs, cooperate on a national level to expand EPP opportunities, and identify appropriate staff resources necessary to meet the needs of this Executive Order. The EPP Program shall consult with state and federal agencies, colleges and universities, municipalities, and non-governmental and private institutions to solicit feedback and advice on products, contracts, vendor outreach, and other relevant issues related to the EPP Program. The EPP Program shall, when appropriate, utilize independent, third party standards and certifications, including but not limited to Green Seal, EcoLogo, ENERGY STAR, (U.S. Department of Agriculture's) BioPreferredSM, Leadership in Energy and Environmental Design (LEED), GREENGUARD, Forest Stewardship Council (FSC) and others, to verify the environmental claims of products or services. 12096859.2 Each Secretary and Agency head shall designate and identify to the EPP Program an individual charged with the management and coordination of this program. Such individual may be the LBE Coordinator and/or other personnel deemed necessary to support the implementation and enforcement of the program. It is the intention of this Executive Order that the principles underlying the Environmental Purchasing Policy be incorporated into general procurement practices throughout the Commonwealth. Section 4: Environmental Purchasing Advisory Committee The Secretary of ANF in consultation with the Secretary of EEA shall appoint an Environmental Purchasing Advisory Committee (the Committee) for the purpose of serving in an advisory capacity to provide guidance and information to the Commonwealth on EPP markets and industry trends, review new product information, define terms, and, in general, to assist ANF and EEA in the implementation of this Executive Order. The Committee shall be chaired by the EPP Program Director and shall not exceed fifteen members. The Committee may include a representative from the LBE Program, the Department of Environmental Protection, and other appropriate agencies, as well as local manufacturers, non-profit organizations that are knowledgeable about sustainable purchasing and EPP initiatives, and individuals from private institutions and businesses with related expertise. Committee members shall serve without compensation and at the pleasure of the Secretary of ANF for two-year terms, up to a maximum of three full terms. The Committee shall have the authority to designate issue-specific Task Forces to examine specific areas of environmental procurement and provide targeted technical assistance and guidance to agencies as needed. One such Task Force shall be a Toxic Reduction Task Force to be overseen by EEA's Office of Technical Assistance (OTA) in coordination with OSD. OSD shall 1) provide the Toxic Reduction Task Force with relevant information on what chemicals and products are procured, and the amounts used and by whom, in the Commonwealth, and 2) will work with OTA and other stakeholders to implement the Task Force recommendations. Within 90 days of this Order, OTA shall consult with OSD in establishing said Task Force, which shall meet periodically, but not less than two times per year, to provide guidance on and assist agencies with identifying and eliminating purchases of products that contain toxic chemicals. Task Force members shall include, but not be limited to OSD, Department of Environmental Protection, Department of Public Health, Division of Occupational Safety, and the Toxics Use Reduction Institute, and each shall appoint representatives to the Task Force within 30 days of their notification by OTA. The Task Force shall periodically consult with the Advisory Committee and any other appropriate non-governmental stakeholders, federal agencies, 12096859.2 the Department of Elementary and Secondary Education, Executive Office of Health and Human Services (EOHHS), Division of Capital Asset Management, the Massachusetts Department of Transportation (MassDOT), and higher education research centers to identify opportunities for the integration of less toxic products into public schools, healthcare facilities, construction projects, and throughout state and local government. Members of other Task Forces shall be appointed by the Chair of the Committee in consultation with the members of the Committee. By February 1st of each year, OTA shall report to the Advisory Committee on the progress made by the Task Force in the prior fiscal year toward meeting the goals set forth in this Executive Order. Section 5: EPP Program The EPP Program shall: • Establish minimum environmental standards for products and services procured by agencies wherever feasible and practicable; • Provide guidance to agencies on how to ensure that their procurements are in compliance with these standards and encourage agencies to establish annual EPP procurement goals; • Include EPPs in statewide contracts and limit contract awards to EPPs exclusively, consistent with 801 CMR 21.00 and EPP procurement goals and standards; • Facilitate the purchase, demonstration and use of new and innovative EPPs, technologies and services; • Encourage state contractors to incorporate EPPs and sustainable practices in their operations; • Consider an EPP Certification program for agency and other public purchasers and/or work with partners within and outside the state to develop such a Certification on a national level; and • Support development of appropriate training and outreach on procuring EPPs and identification of their fiscal, environmental, and health benefits. By March 1st of each year, the EPP Program shall report to ANF and EEA on the progress made in the prior fiscal year toward meeting the goals set forth in this Executive Order as well as provide available data on actual EPP purchases and their associated environmental, health, and fiscal benefits, wherever possible. All OSD and agency staff shall cooperate with the EPP Program in these efforts and incorporate environmental goals into the performance measurements of procurement officers and other appropriate staff. Furthermore, the State Purchasing Agent shall direct OSD's Quality Assurance, Outreach and Training Program to periodically monitor compliance with this Executive Order as part of their regular reviews of state agency procurements and include EPP contract information in all appropriate training sessions. 12096859.2 In addition, in order to strengthen the impact of this Executive Order, inform municipal and public school officials, and reduce the impact of local government procurements on the environment and public health, the EPP Program shall work to develop and conduct outreach programs for municipalities and, in collaboration with the Department of Elementary and Secondary Education, public elementary and secondary schools. In addition, independent authorities are encouraged to adopt the EPP policies and programs consistent with this Executive Order. Section 6: Agency Responsibilities Where agencies have the responsibility and opportunity to conduct procurements and to purchase products and services either through statewide contracts or department procurements and contracts, including consultants, service providers, and/or lease agreements, they shall incorporate EPPs into those activities to the greatest extent feasible. Additionally, agencies shall: • Work with their contractors and agency personnel to provide all necessary and appropriate support to the EPP Program in an effort to ensure that annual fiscal year purchasing data is reported to OSD within 90 days of the close of each fiscal year, or by September 30; • Examine the benefits of establishing annual EPP procurement goals and consult with the EPP and LBE programs to target appropriate procurement areas; • Ensure that Leading by Example Program Coordinators, or other designated staff, act as liaisons with the EPP Program for issues related to EPP program implementation; • Support and encourage key agency staff participation in EPP procurement training, such as the annual EPP Vendor Fair and Conference; and • Work to incorporate the use of EPPs in health and human service contracts, construction, renovation and maintenance contracts, food service contracts, disposal contracts, lease agreements, grant programs, and other contracts overseen by agencies. Section 7: Environmental Procurement Initiatives A. Energy Efficient Products When procuring products that consume energy, all statewide contracts and agency procurements shall follow the directives set forth in Executive Order No. 484 and take into account, in the procurement's specifications, the lifetime energy costs necessary to operate energy consuming products and equipment. The EPP Program shall establish minimum energy performance standards, taking into account initial and operating costs, and agencies shall adhere to said standards. At a minimum, unless otherwise set forth in the minimum energy performance standards, agencies shall: 12096859.2 • Procure only ENERGY STAR rated office equipment, appliances, HVAC equipment, and other ENERGY STAR rated products unless such products can be demonstrated to be cost prohibitive over their life; • Ensure that all ENERGY STAR equipment has the power saving mode enabled at the time of installation and that all staff are aware of these functions and their benefits; • Purchase only energy efficient light bulbs, such as, but not limited to, compact fluorescent lamps (CFLs) or light emitting diodes (LEDs) unless the purchase of a standard bulb, such as an incandescent, is necessary for a specific purpose or function that can only be served by said bulb; • Procure the most efficient and cost-effective linear lights possible that will meet agency needs and, wherever possible, replace older lamp ballasts with newer more efficient electronic ballasts; • Ensure that all new street lights utilize the most efficient light sources possible and that all traffic lights installed or replaced by Commonwealth agencies utilize only LEDs or similarly efficient technology; and • Support the procurement of other energy efficient products wherever possible, including but not limited to high efficiency motors, tankless water heaters, programmable thermostats, heating, ventilation and air conditioning units/systems, and food service equipment. B. Toxics Reduction The EPP Program and agencies shall, wherever feasible, eliminate products procured by the Commonwealth that contain toxic chemicals in concentrations that pose a significant threat to the environment and/or public health. When less toxic or non-toxic alternatives are readily available, meet agency performance requirements, and are cost competitive, the EPP Program shall move promptly to make these alternatives available through Statewide Contracts. Agencies shall purchase only these less toxic or non-toxic alternatives unless it can be demonstrated that such alternatives do not meet the essential needs of the agency. Through both statewide and/or departmental contracts, agencies shall: • Purchase and use only those cleaning products, including floor finishes, that meet the environmental specifications established by the EPP Program; • Within one year of the date of this Executive Order, require cleaning service contractors to utilize cleaning products that meet the same or better EPP standards; • Require pest control firms or licensed Commonwealth staff to employ an integrated pest management (IPM) approach in Commonwealth facilities; • Ensure adherence to the Massachusetts Mercury Management Bill, prohibiting the purchase of any product containing mercury when non-mercury alternatives exist (not applicable to fluorescent lights); • Procure products that contain no or low amounts of Volatile Organic Compounds (VOC) 12096859.2 wherever feasible, including but not limited to office equipment, furniture, flooring, paint, and construction materials; and • Purchase computers, monitors, laptops, and other relevant equipment that have achieved a minimum silver rating from the Electronic Products Environmental Assessment Tool (EPEAT). Additionally, the EPP Program shall work with agencies to develop best management practices and specifications with the intent of increasing the procurement of: • Less toxic water treatment chemicals and processes; • Paper products processed without elemental chlorine; • Organic and/or less toxic fertilizers, pesticides, and other landscaping products; • Vehicle tires with lead-free wheel weights; • Packaging in conformance with the specifications developed by the Coalition of Northeastern Governors designed to reduce heavy metals and toxics; • Furnishings, clothing, and other products that meet required flammability standards without the use of toxic flame retardants known as PBDEs; and • Other products identified by a Task Force established by the Oversight Committee pursuant to Section 4 of this Order. C. Recycled Content and Waste Minimization The EPP Program shall develop and expand minimum recycled content and remanufactured standards for all appropriate products and materials. The EPP Program shall utilize, wherever applicable, the minimum standards established by the U.S. Environmental Protection Agency's Comprehensive Procurement Guidelines (CPG) or develop standards that the EPP Program deems appropriate. Additionally, the EPP Program shall consider the ultimate disposal of products and their packaging when developing contract specifications and making contract awards. Agencies shall procure products that comply with all recycled content and waste reduction standards established by the EPP Program. The EPP Program shall ensure that the following product categories contain minimum recycled content standards and are included on statewide contracts: • office paper, printed materials, office supplies, packaging, and storage boxes; • office panels and interior and exterior furniture and equipment; • janitorial paper products and trash liners; • transportation products such as antifreeze, motor oil, retread tires, and traffic control devices; • carpeting and flooring; • compost and mulch; and • plastic containers such as recycling containers and compost bins. The EPP Program shall also work to develop standards and contracts for additional recycled 12096859.2 content products identified by the CPG, as well as water and waste minimizing products such as double-sided copiers and printers, waterless and low-flow plumbing devices, and composting toilets. Additionally, the EPP Program shall encourage vendor responsibility for the reuse or recycling of packaging and/or products at the end of their useful life. In addition, agencies shall ensure that they integrate increased recycling practices in the disposal of their own waste materials, including but not limited to paper, glass, cans, plastic bottles, containers, and electronic equipment. This effort shall include the positioning of recycling bins in their offices and the contracting for recycling services to pick up and recycle these materials. D. Sustainable Materials In developing standards and specifications for environmentally preferable products, the EPP Program shall encourage and prioritize the procurement of goods that are grown, manufactured, transported, and handled in a sustainable manner using, to the greatest extent feasible, a lifecycle analysis of materials and other inputs into the production of the final product. Such goods shall include, but not be limited to: • Lumber and building materials; • Organic and locally grown foods; • Compostable food service products; and • Bio-based products such as lubricants, food-service ware, fuels, plastics and coatings. Section 8: Business Development and Guidance A goal of this Executive Order shall be to support businesses in Massachusetts that offer and/or seek to offer environmentally preferable products and services, as well as to encourage the business community to adopt broader sustainable practices that reduce environmental impacts. To this end, the EPP Program shall collaborate with relevant agencies to promote EPPs and sustainable business solutions to companies already in Massachusetts as well as those looking to relocate to the Commonwealth. Such efforts may include guidance on how sustainable practices and environmental purchasing can result in a competitive edge when bidding on statewide contracts, and how the use of EPPs can reduce environmental impacts while minimizing operating costs. Section 9: Effective Date This Executive Order shall take effect immediately and shall continue in effect until amended, superseded, or revoked by subsequent Executive Order. 12096859.2 Given at the Executive Chamber in Boston this 27th day of October in the year two thousand and nine and of the Independence Of the United States, two hundred and thirty-four. DEVAL L. PATRICK GOVERNOR Commonwealth of Massachusetts WILLIAM FRANCIS GALVIN Secretary of the Commonwealth GOD SAVE THE COMMONWEALTH OF MASSACHUSETTS 12096859.2 Michigan (back to top) 207.821 Short title. Sec. 1. This act shall be known and may be cited as the “Michigan next energy authority act.” 207.822 Definitions. Sec. 2. As used in this act: (a) “Advanced battery cell” means a rechargeable battery cell with a specific energy of not less than 80 watt hours per kilogram. (b) “Alternative energy marine propulsion system” means an onboard propulsion system or detachable outboard propulsion system for a watercraft that is powered by an alternative energy system and that is the singular propulsion system for the watercraft. Alternative energy marine propulsion system does not include battery powered motors designed to assist in the propulsion of the watercraft during fishing or other recreational use. (c) “Alternative energy system” means the small-scale generation or release of energy from 1 or any combination of the following types of energy systems: (i) A fuel cell energy system. (ii) A photovoltaic energy system. (iii) A solar-thermal energy system. (iv) A wind energy system. (v) A CHP energy system. (vi) A microturbine energy system. (vii) A miniturbine energy system. (viii) A Stirling cycle energy system. 12096859.2 (ix) A battery cell energy system. (x) A clean fuel energy system. (xi) An electricity storage system. (xii) A biomass energy system. (xiii) A thermoelectric energy system. (d) “Alternative energy technology” means equipment, component parts, materials, electronic devices, testing equipment, and related systems that are specifically designed, specifically fabricated, and used primarily for 1 or more of the following: (i) The storage, generation, reformation, or distribution of clean fuels integrated within an alternative energy system or alternative energy vehicle, not including an anaerobic digester energy system or a hydroelectric energy system, for use within the alternative energy system or alternative energy vehicle. (ii) The process of generating and putting into a usable form the energy generated by an alternative energy system. Alternative energy technology does not include those component parts of an alternative energy system that are required regardless of the energy source. (iii) A microgrid. As used in this subparagraph, "microgrid" means the lines, wires, fuel lines and fuel reformers, and controls to connect 2 or more alternative energy systems. (iv) Research and development of an alternative energy vehicle. (v) Research, development, and manufacturing of an alternative energy system. (vi) Research, development, and manufacturing of an anaerobic digester energy system. (vii) Research, development, and manufacturing of a hydroelectric energy system. (e) "Alternative energy technology business" means a business engaged solely in the research, development, or manufacturing of alternative energy technology. (f) “Alternative energy vehicle” means a motor vehicle manufactured by an original equipment manufacturer that fully warrants and certifies that the motor vehicle meets federal motor vehicle safety standards for its class of vehicles as defined by the Michigan vehicle code, 1949 PA 300, MCL 257.1 to 257.923, and certifies that the motor vehicle meets local emissions standards, that is propelled by an alternative energy system. Alternative energy vehicle includes the following: 12096859.2 (i) An alternative fueled vehicle. As used in this subparagraph, "alternative fueled vehicle" means a motor vehicle that can only be powered by a clean fuel energy system and can only be fueled by a clean fuel. (ii) A fuel cell vehicle. As used in this subparagraph, "fuel cell vehicle" means a motor vehicle powered solely by a fuel cell energy system. (iii) An electric vehicle. As used in this subparagraph, "electric vehicle" means a motor vehicle powered solely by a battery cell energy system. (iv) A hybrid vehicle. As used in this subparagraph, "hybrid vehicle" means a motor vehicle that can only be powered by an internal combustion engine and 1 or more alternative energy systems. (v) A solar vehicle. As used in this subparagraph, "solar vehicle" means a motor vehicle powered solely by a photovoltaic energy system. (vi) A hybrid electric vehicle. As used in this subparagraph, “hybrid electric vehicle” means a motor vehicle powered by an integrated propulsion system consisting of an electric motor and combustion engine. Hybrid electric vehicle does not include a retrofitted conventional diesel or gasoline engine. A hybrid electric vehicle obtains the power necessary to propel the motor vehicle from a combustion engine and 1 of the following: (vii) (A) A battery cell energy system. (B) A fuel cell energy system. (C) A photovoltaic energy system. A hydraulic hybrid vehicle. As used in this subparagraph, "hydraulic hybrid vehicle" means a motor vehicle powered by a regenerative hydraulic drive system or powered by an internal combustion engine assisted by a regenerative hydraulic drive system. (g) "Alternative energy zone" means a renaissance zone designated as an alternative energy zone by the board of the Michigan strategic fund under section 8a of the Michigan renaissance zone act, 1996 PA 376, MCL 125.2688a. (h) "Anaerobic digester energy system" means a device or system of devices for optimizing the anaerobic digestion of biomass for the purpose of recovering biofuel for energy production. (i) "Authority" means the Michigan next energy authority created under section 3. 12096859.2 (j) "Battery cell" means a closed electrochemical system that converts chemical energy from oxidation and reduction reactions directly into electric energy without combustion and without external fuel and consists of an anode, a cathode, and an electrolyte. (k) "Battery cell energy system" means 1 or more battery cells and an inverter or other power conditioning unit used to perform 1 or more of the following functions: (i) Propel a motor vehicle or an alternative energy marine propulsion system. (ii) Provide electricity that is distributed within a dwelling or other structure. (iii) Provide electricity to operate a portable electronic device including, but not limited to, a laptop computer, a personal digital assistant, or a cell phone. For purposes of this subparagraph only, a battery cell energy system shall only use advanced battery cells. (l) "Biomass energy system" means a system that generates energy from a process using residues from wood and paper products industries, food production and processing, trees and grasses grown specifically to be used as energy crops, and gaseous fuels produced from solid biomass, animal waste, municipal wastes, or landfills. (m) "Board" means the governing body of an authority under section 4. (n) "CHP energy system" means an integrated unit that generates power and either cools, heats, or controls humidity in a building or provides heating, drying, or chilling for an industrial process that includes and is limited to both of the following: (o) 12096859.2 (i) An absorption chiller, a desiccant dehumidifier, or heat recovery equipment. (ii) One of the following: (A) An internal combustion engine, an external combustion engine, a microturbine, or a miniturbine, fueled solely by a clean fuel. (B) A fuel cell energy system. "Clean fuel" means 1 or more of the following: (i) Methane. (ii) Natural gas. (iii) Methanol neat or methanol blends containing at least 85% methanol. (iv) Denatured ethanol neat or ethanol blends containing at least 85% ethanol. (v) Compressed natural gas. (vi) Liquefied natural gas. (vii) Liquefied petroleum gas. (viii) Hydrogen. (ix) Renewable fuels. (p) "Clean fuel energy system" means a device that is designed and used solely for the purpose of generating power from a clean fuel. Clean fuel energy system does not include a conventional gasoline or diesel fuel engine or a retrofitted conventional diesel or gasoline engine. (q) "Department" means the department of management and budget. (r) "Electricity storage device" means a device, including a capacitor, that directly stores electrical energy without conversion to an intermediary medium. (s) "Electricity storage system" means 1 or more electricity storage devices and inverters or other power conditioning equipment. (t) "Fuel cell energy system" means 1 or more fuel cells or fuel cell stacks and an inverter or other power conditioning unit. A fuel cell energy system may also include a fuel processor. As used in this subdivision: (u) 12096859.2 (i) "Fuel cell" means an electrochemical device that uses an external fuel and continuously converts the energy released from the oxidation of fuel by oxygen directly into electricity without combustion and consists of an anode, a cathode, and an electrolyte. (ii) "Fuel cell stack" means an assembly of fuel cells. (iii) "Fuel processor" means a device that converts a fuel, including, but not limited to, methanol, natural gas, or gasoline, into a hydrogen rich gas, without combustion for use in a fuel cell. "Hydroelectric energy system" means a system related to the process of generating or putting into usable form the energy produced solely from flowing or falling water. The system may consist of a turbine, generator, alternator, electronic devices, or other directly related component parts. (v) "Microturbine energy system" means a system that generates electricity, composed of a compressor, combustor, turbine, and generator, fueled solely by a clean fuel with a capacity of not more than 250 kilowatts. A microturbine energy system may include an alternator and shall include a recuperator if the use of the recuperator increases the efficiency of the energy system. (w) "Miniturbine energy system" means a system that generates electricity, composed of a compressor, combustor, turbine, and generator, fueled solely by a clean fuel with a capacity of not more than 2 megawatts. A miniturbine energy system may also include an alternator and a recuperator. (x) "Person" means an individual, partnership, corporation, limited liability company, association, governmental entity, or other legal entity. (y) "Photovoltaic energy system" means a solar energy device composed of 1 or more photovoltaic cells or photovoltaic modules and an inverter or other power conditioning unit. A photovoltaic system may also include batteries for power storage or an electricity storage device. As used in this subdivision: (i) "Photovoltaic cell" means an integrated device consisting of layers of semiconductor materials and electrical contacts capable of converting incident light directly into electricity. (ii) "Photovoltaic module" means an assembly of photovoltaic cells. (z) "Regenerative hydraulic drive system" means a system that captures energy from nonparasitic vehicle sources or energy wasted by a vehicle's brakes or suspension to be released to directly assist vehicle propulsion or directly propel the vehicle. (aa) "Renewable fuels" means 1 or more of the following: (bb) 12096859.2 (i) Biodiesel or biodiesel blends containing at least 20% biodiesel. As used in this subparagraph, "biodiesel" means a diesel fuel substitute consisting of methyl or ethyl esters produced from the transesterification of animal or vegetable fats with methanol or ethanol. (ii) Biomass. As used in this subparagraph, "biomass" means wood and paper products industries, food production and processing, trees and grasses grown specifically to be used as energy crops, and gaseous fuels produced from solid biomass, animal waste, municipal wastes, or landfills. "Small-scale" means 1 or more of the following: (i) A single energy system with a generating capacity of not more than 2 megawatts or an integrated energy system with a generating capacity of not more than 10 megawatts. (ii) A single energy system or an integrated energy system with any generating capacity that is 1 or more of the following: (A) A fuel cell energy system. (B) A photovoltaic energy system. (C) A wind energy system. (cc) "Solar thermal energy system" means an integrated unit consisting of a sunlight collection device, a system containing a heat transfer fluid to receive the collected sunlight, and heat exchangers to transfer the solar energy to a thermal storage tank to heat or cool spaces or fluids or to generate electricity. (dd) "Stirling cycle energy system" means a closed-cycle, regenerative heat engine that is fueled solely by a clean fuel and uses an external combustion process, heat exchangers, pistons, a regenerator, and a confined working gas, such as hydrogen or helium, to convert heat into mechanical energy. A Stirling cycle energy system may also include a generator to generate electricity. (ee) "Thermoelectric energy system" means a system that generates energy by converting thermal energy into electrical energy using direct heat from a clean fuel energy system or waste heat from any source. A thermoelectric energy system also includes an energy system that utilizes alkali metal thermal-to-electric conversion technology. (ff) "Wind energy system" means an integrated unit consisting of a wind turbine composed of a rotor, an electrical generator, a control system, an inverter or other power conditioning unit, and a tower, which uses moving air to produce power. 207.823 Michigan next energy authority; creation; powers and duties; contract; records and accounts. Sec. 3. (1) There is created by this act a public body corporate and politic known as the Michigan next energy authority. The authority shall be located within the department. (2) The authority shall exercise its prescribed statutory powers, duties, and functions independently of the director of the department. The budgeting, procurement, and related administrative functions of the authority shall be performed under the direction and supervision of the director of the department. 12096859.2 (3) The authority may contract with the department for the purpose of maintaining the rights and interests of the authority. (4) The accounts of the authority may be subject to annual financial audits by the state auditor general. Records of the authority shall be maintained according to generally accepted accounting principles. 207.824 Powers and duties of board. Sec. 4. (1) An authority created under this act is governed by a board consisting of the members of the authority under the Michigan economic growth authority act, 1995 PA 24, MCL 207.801 to 207.810. (2) The board shall organize and adopt its own policies, procedures, schedule of regular meetings, and a regular meeting date, place, and time. The board shall conduct all business at public meetings held in compliance with the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public notice of the time, date, and place of each meeting shall be given in the manner required by the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. (3) A writing prepared, owned, used, in the possession of, or retained by the board in the performance of an official function shall be made available to the public in compliance with the freedom of information act, 1976 PA 442, MCL 15.231 to 15.246. (4) A board may act only by resolution. A majority of the members of the board then in office, or of any committee of the board, shall constitute a quorum for the transaction of business. (5) The board may employ legal and technical experts, private consultants, accountants, and other agents or employees for rendering professional and technical assistance and advice as may be necessary. The authority shall determine the qualifications, duties, and compensation of those it employs. 207.825 Michigan next energy authority; powers and duties. Sec. 5. (1) Except as otherwise provided in this act, the authority may do all things necessary to implement the purposes of this act, including, but not limited to, all of the following: (a) Adopt, amend, and repeal bylaws for the regulation of its affairs and the conduct of its business. (b) Adopt an official seal and alter the seal at the pleasure of the board. (c) Sue and be sued in its own name and plead and be impleaded. 12096859.2 (2) (d) Solicit and accept gifts, grants, loans, and other assistance from any person or the federal, the state, or a local government or any agency of the federal, the state, or a local government or participate in any other way in any federal, state, or local government program. (e) Research and publish studies, investigations, surveys, and findings on the development and use of alternative energy technology. (f) Promote the research, development, and manufacturing of alternative energy technology. (g) Do all other things necessary to promote and increase the research, development, and manufacturing of alternative energy technology and to otherwise achieve the objectives and purposes of the authority. The authority shall certify all of the following personal property and shall provide proof of certification to the assessor of the local tax collecting unit in which the following personal property is located: (a) (b) (c) 12096859.2 Alternative energy marine propulsion systems, alternative energy systems, and alternative energy vehicles that meet both of the following requirements: (i) Were not previously subject to the collection of taxes under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155. (ii) Were not previously exempt from the collection of taxes under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, except for personal property exempt under section 9c or 9i of the general property tax act, 1893 PA 206, MCL 211.9c and 211.9i. Tangible personal property of a business that is an alternative energy technology business that meets both of the following requirements: (i) Was not previously subject to the collection of taxes under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155. (ii) Was not previously exempt from the collection of taxes under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, except for personal property exempt under section 9c or 9i of the general property tax act, 1893 PA 206, MCL 211.9c and 211.9i. Tangible personal property of a business that is not an alternative energy technology business that is used solely for the purpose of researching, developing, or manufacturing an alternative energy technology that meets both of the following requirements: (3) (i) Was not previously subject to the collection of taxes under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155. (ii) Was not previously exempt from the collection of taxes under the general property tax act, 1893 PA 206, MCL 211.1 to 211.155, except for personal property exempt under section 9c or 9i of the general property tax act, 1893 PA 206, MCL 211.9c and 211.9i. The authority shall certify and provide proof of certification of the following business entities: (a) An alternative energy technology business. The authority shall provide proof of certification to the assessor of the local tax collecting unit in which the alternative energy technology business is located. (b) A taxpayer as an eligible taxpayer for the purposes of claiming the credit under section 39e(2) of the former single business tax act, 1975 PA 228, or under section 429 of the Michigan business tax act, 2007 PA 36, MCL 208.1429. (4) The authority shall certify and provide proof of certification of the qualified business activity of a taxpayer eligible under subsection (3)(b). As used in this subsection, “qualified business activity” means that term as defined in section 39e of the former single business tax act, 1975 PA 228, or in section 429 of the Michigan business tax act, 2007 PA 36, MCL 208.1429. (5) The authority shall not operate an alternative energy technology business or otherwise engage in the manufacturing of any commercial products. 207.826 Michigan next energy authority; exemption from taxation. Sec. 6. The authority created under this act shall be exempt from and shall not be required to pay taxes on property, both real and personal, belonging to the authority, which is used for a public purpose. Property of the authority is public property devoted to an essential public and governmental function and purpose. 207.827 Construction of act. Sec. 7. This act shall be construed liberally to effectuate the legislative intent and its purposes. All powers granted shall be cumulative and not exclusive and shall be broadly interpreted to effectuate the intent and purposes and not as a limitation of powers. 12096859.2 460.1133. Powers and duties of department of management and budget Sec. 133. The department of management and budget, after consultation with the energy office in the department of labor and economic growth, shall do all of the following: (a) Establish a program for energy analyses of each state building that identifies opportunities for reduced energy use, including the cost and energy savings for each such opportunity, and includes a completion schedule. Under the program, the energy star assessment and rating program shall be extended to all buildings owned or leased by this state. An energy analysis of each such building shall be conducted at least every 5 years. Within 1 year after the effective date of this act, an energy analysis shall be conducted of any such building for which an energy analysis was not conducted within 5 years before the effective date of this act. If building or facility modifications are allowed under the terms of a lease, the state shall undertake any recommendations resulting from an energy audit to those facilities if the recommendations will save money. (b) Examine the cost and benefit of using LEED building code standards when constructing or remodeling a state building. (c) Before the state leases a building, examine the cost and benefit of leasing a building that meets LEED building codes standards, or remodeling a building to meet such standards. The state shall take into consideration whether a building has historical, architectural, or cultural significance that could be harmed by a lease not being renewed solely based on the building's failure to meet LEED criteria. (d) Assist each state department in appointing an energy reduction coordinator to work with the department of management and budget and the state energy office to reduce state energy use. (e) Ensure that, during any renovation or construction of a state building, energy efficient products are used whenever possible and that the state purchases energy efficient products whenever possible. (f) Implement a program to educate state employees on how to conserve energy. The energy office and the department of management and budget shall update the program every 3 years. (g) Use more cost-effective lighting technologies, geothermal heat pumps, and other costeffective technologies to conserve energy. (h) Reduce state government energy use during peak summer energy use seasons with the goal of achieving reductions beginning in 2010. (i) Create a web-based system for tracking energy efficiency and energy conservation projects occurring within state government. 12096859.2 EXECUTIVE DIRECTIVE No. 2007 - 22 ENHANCED ENERGY EFFICIENCY AND CONSERVATION BY STATE DEPARTMENTS AND AGENCIES WHEREAS, Section 1 of Article V of the Michigan Constitution of 1963 vests the executive power of the State of Michigan in the Governor; WHEREAS, under Section 8 of Article V of the Michigan Constitution of 1963 each principal department of state government is under the supervision of the Governor unless otherwise provided by the Constitution; WHEREAS, under Section 8 of Article V of the Michigan Constitution of 1963, the Governor is responsible to take care that the laws be faithfully executed; WHEREAS, under Executive Order 2002-20, MCL 18.321, all of the authority, powers, functions, duties, and responsibilities pertaining to the planning, management and operation, capital renewal, and acquisition of buildings and facilities of Executive Branch agencies, excluding the Department of Transportation, the Department of Military and Veterans Affairs and the Department of Natural Resources, were transferred to the Department of Management and Budget; WHEREAS, under Section 551 of The Management and Budget Act, 1984 PA 431, MCL 18.1551, the Governor shall inquire into the administration of The Management and Budget Act; WHEREAS, under Section 261 of The Management and Budget Act, 1984 PA 431, MCL 18.1261, the Department of Management and Budget must provide for the purchase of, the contracting for, and the providing of supplies, materials, services, insurance, utilities, third party financing, equipment, printing, and all other items as needed by state agencies for which the Legislature has not otherwise expressly provided; WHEREAS, under Section 241b of The Management and Budget Act, 1984 PA 431, MCL 18.1241b, the Department of Management and Budget must consider the energy efficiency of all materials used in the construction, alteration, repair, or rebuilding of a building or facility owned or operated by this state; WHEREAS, under Section 253 of The Management and Budget Act, 1984 PA 431, MCL 18.1253, a state agency may enter into a multi-year contract for energy conservation improvements to state facilities to be paid for from the avoided operating costs for utility service or fuel produced by the improvements; WHEREAS, under Section 213 of The Management and Budget Act, 1984 PA 431, MCL 18.1213, the Department of Management and Budget may issue directives relative to motor vehicles used by all state agencies, except for motor vehicles under the jurisdiction of the Department of Transportation; 12096859.2 WHEREAS, under Section 131 of The Management and Budget Act, 1984 PA 431, MCL 18.1131, the Director of the Department of Management and Budget may issue, alter, or rescind administrative and procedural directives as determined to be necessary for the effective administration of the Act; WHEREAS, the State of Michigan, in the operation of state facilities and use of state motor vehicles, consumes significant amounts of electricity, natural gas, petroleum, fuel oil, chilled water, steam, gasoline, and other resources; WHEREAS, the cost of energy continues to rise and traditional sources of non-renewable energy continue to be depleted at a rapid pace; WHEREAS, the State of Michigan is a leading consumer of energy throughout Michigan; WHEREAS, products or processes that use less energy provide an environmental and a fiscal benefit and can reduce greenhouse gas emissions and have a positive impact on climate change; WHEREAS, state departments and agencies will benefit from interagency communication and joint problem solving to reduce energy consumption and achieve new energy efficiencies; WHEREAS, significant improvements in energy efficiency and conservation by state departments and agencies have been realized based on actions taken in response to the issuance of Executive Directives 2005-4 and 2007-6; WHEREAS, state government can act to reduce greenhouse gas emissions and respond to climate change by improving energy efficiency, conserving natural resources, and using renewable energy sources; WHEREAS, Michigan taxpayers will benefit from the cost savings delivered and an improved environment with less pollution through greater energy efficiency and conservation; NOW, THEREFORE, I, Jennifer M. Granholm, Governor of the State of Michigan, by virtue of the power vested in the Governor by the Michigan Constitution of 1963 and Michigan law, direct: I. DEFINITIONS As used in this Directive: A. 12096859.2 "Alternative fuel" includes a "clean fuel" as defined under Section 2 of the Michigan Next Energy Authority Act, 2002 PA 593, MCL 207.822. B. "Carbon footprint" means a measure of the exclusive total amount of carbon dioxide emissions directly and indirectly caused by an activity or accumulated over the life stages of a product. C. "Climate change" refers to any significant change in measures of climate, such as temperature, precipitation, or wind, lasting for an extended period of time of a decade or longer. D. "Department of Environmental Quality" means the principal department of state government created under Executive Order 1995-18, MCL 324.99903. E. "Department of Labor and Economic Growth" means the principal department of state government created by section 225 of the Executive Organization Act of 1965, 1965 PA 380, MCL 16.325, and renamed by Executive Order No. 1996-2, MCL 445.2001, and by Executive Order No. 2003-18, MCL 445.2011. F. "Department of Management and Budget" means the principal department of state government established under Section 121 of The Management and Budget Act, 1984 PA 431, MCL 18.1121. G. "Energy conservation measure" means improvement of a building structurally or the installation of equipment or materials in a building for the purpose of reducing energy consumption or cost, increasing energy efficiency, or allowing the use of a renewable resource for fuel. H. "Energy Star®" means the voluntary partnership among the United States Department of Energy, the United States Environmental Protection Agency, product manufacturers, local utilities, and retailers to help promote energy efficient products by labeling with the Energy Star® logo, educate consumers about the benefits of energy efficiency, and help promote energy efficiency in buildings by benchmarking and rating energy performance. I. "Greenhouse gas" means a gas from human-generated activities that traps heat within the atmosphere of the Earth causing climate change, including but not limited to, carbon dioxide, methane, nitrous oxide, ozone, and fluorinated gases. J. "Hybrid vehicle" includes a "hybrid vehicle" or a "hybrid electric vehicle" as defined under Section 2 of the Michigan Next Energy Authority Act, 2002 PA 593, MCL 207.822. K. " LEED" means the Leadership in Energy and Environmental Design Green Building Rating System developed by the United States Green Building Council. LEED is recognized as the nation's leading green building rating system and promotes high-performance building practices; energy, water, and materials conservation; environmentally preferred products and practices; improvements in 12096859.2 employee health, comfort, and productivity; and reductions in facility operation costs and environmental impacts. II. L. "Renewable energy source" means that term as defined under Section 10g of 1939 PA 3, MCL 460.10g. M. "State Energy Office" means the entity within the Department of Labor and Economic Growth that promotes energy efficiency and renewable energy resource development to Michigan residents, businesses, and public institutions. CONTINUING REDUCTIONS IN STATE ENERGY CONSUMPTION A. The Department of Management and Budget shall maintain the energy efficiency savings target established by Section II.A of Executive Directive 2005-4 for all state buildings managed by the Department or another department or agency within the Executive Branch of state government. The goal shall continue to be attainment of a 10% reduction in energy use by December 31, 2008 and a 20% reduction in grid-based energy purchases by December 31, 2015, when compared to energy use and energy purchases for the state fiscal year ending September 30, 2002. B. The Department of Management and Budget shall maintain the energy conservation measures and best management practices to improve energy efficiency adopted under Section II.B of Executive Directive 2005-4. C. The Department of Management and Budget shall continue to implement the plan presented by the Department as required by Executive Directive 2007-6 to further reduce energy use by departments and agencies within the executive branch of state government by at least 10% from the level of energy use during the fiscal year ending September 30, 2006. D. In addition to on-going efforts, the Department of Management and Budget, in consultation with the Department of Environmental Quality and the State Energy Office, shall develop by July 1, 2008, a process for measuring energy consumption to be used by all state departments and agencies to track energy use in a common and consistent manner. The process shall include a mechanism to calculate each principal department's carbon footprint. E. State departments and agencies are directed to take all necessary steps to conserve energy and enhance energy efficiency consistent with this Directive, including, but not limited to, use of energy performance contracting and education of state employees to reduce energy use. 12096859.2 III. ENERGY USE REDUCTION COORDINATORS A. IV. Each principal department director shall designate an Energy Use Reduction Coordinator for the department. Each Energy Use Reduction Coordinator shall have the following responsibilities: 1. Comprehensive review, in consultation with the Department of Management and Budget and the State Energy Office, of his or her department's energy consumption and carbon footprint. 2. Preparation, in consultation with the Department of Management and Budget and the State Energy Office, of a departmental plan to meet the energy consumption goals identified in Section II.A and II.C for submission by the principal department director to the Director of the Department of Environmental Quality and the Director of the Department of Management and Budget. 3. Consultation with the Department of Management and Budget and the State Energy Office on programs to qualify buildings occupied by state departments and agencies for Energy Star® designation under Section III.B. ENERGY EFFICIENCY AND THE STATE MOTOR VEHICLE FLEET A. 12096859.2 In managing the State of Michigan's reduced fleet of motor vehicles, the Department of Management and Budget shall continue to: 1. Comply with the requirements of the federal Energy Policy Act of 1992, as amended (EPAct), which is intended to reduce the United States' dependence on foreign oil by requiring certain fleets, including motor vehicle fleets operated by state governments, to acquire alternative fuel vehicles capable of operating on non-petroleum fuels or on blended fuels with lower petroleum content. 2. Include hybrid vehicles within the state's fleet, if analysis by the Department of Management and Budget determines the hybrid vehicles to be cost effective and capable of meeting the state's transportation needs. 3. As the public alternative fuel infrastructure continues to develop, require the users of motor vehicles within the state fleet to refuel with alternative fuels to the extent feasible. 4. Develop procedures to encourage or require the use of diesel fuel with the highest percentage of biodiesel content available, when biodiesel fuel is available to a user of a diesel fuel vehicle in the state fleet. 5. B. V. Administer the Flexible Fuel Fleet Awareness program. The Department of Management and Budget shall explore opportunities to enter into agreements with other governmental entities for the joint use of alternative fuel distribution facilities used by governmental entities for alternative fuel vehicles. ENERGY EFFICIENCY AND ENERGY STAR® PURCHASING A. State purchasing policies and procedures issued by the Department of Management and Budget shall continue to do all of the following: 1. Include energy efficiency considerations and life-cycle costs when determining whether the purchase of or contracting for goods or supplies represents the best value for the State of Michigan, including, but not limited to, equipment purchased for state facilities such as lighting equipment, heating systems, ventilation systems, air conditioning systems, and water heating systems. As used in this paragraph, "life-cycle costs" means the purchase price for goods or supplies plus the estimated operating costs for the goods or supplies over the useful life of the goods or supplies. 2. Specify that any of the following purchased by state departments or agencies shall be Energy Star® compliant: a. New electronic office equipment purchased by state departments or agencies, to the extent Energy Star® certified equipment is available. b. Major appliances purchased for state-owned or operated facilities, including residential facilities, to the extent Energy Star® certified equipment is available. B. The Department of Management and Budget, in cooperation with departmental Energy Use Reduction Coordinators designated under Section III.A and the State Energy Office, shall seek to qualify buildings occupied by state departments and agencies for Energy Star® designation. C. The Department of Management and Budget, after consultation with the State Energy Office, shall establish procedures to require that when the state is entering into a lease agreement for a state department or agency to occupy a portion or all of a building leased by this state at a new location, the building qualifies for Energy Star® designation whenever feasible. 12096859.2 VI. D. The Department of Management and Budget shall encourage state institutions of higher education and public community and junior colleges in this state to also seek to qualify buildings for Energy Star® designation. E. The Department of Management and Budget shall pursue, on behalf of the State of Michigan, designation as an Energy Star® Leader. STATE LEADERSHIP IN ENERGY AND ENVIRONMENTAL DESIGN FOR NEW CONSTRUCTION (LEED) A. The Department of Management and Budget, after consultation with the State Energy Office, shall implement procedures to require that all state-supported capital outlay projects, whether for state departments or agencies, universities, or community colleges, be designed and constructed in accordance with the Leadership in Energy and Environmental Design (LEED) Green Building Rating System developed by the United States Green Building Council to assure that new buildings or major renovations of existing buildings costing $1 million or more in total renovation project costs are energy efficient and environmentally sustainable. B. The Department of Management and Budget, after consultation with the State Energy Office, shall implement procedures to assure that all new state-owned buildings and all newly constructed buildings leased by the state are designed and constructed in accordance with the Leadership in Energy and Environmental Design (LEED) Green Building Rating System developed by the United States Green Building Council. C. In complying with the requirements of this Section VI, the Department of Management and Budget, after consultation with the State Energy Office, shall do all of the following: 12096859.2 1. Assure that the design and construction of new state-owned or leased buildings is accomplished consistent with LEED guidelines. When determined by the Department of Management and Budget to be attainable, the Department shall strive to obtain a score for the building of Platinum Level on the LEED New Construction scorecard. 2. Assure that the design and construction of building renovation projects costing $1 million or more in total renovation project costs are accomplished consistent with LEED guidelines. When determined by the Department of Management and Budget to be attainable, the Department shall strive to obtain a score for the renovation of Platinum Level on the LEED Existing Building scorecard and of Platinum Level on the LEED Commercial Interiors scorecard. This paragraph shall not be interpreted to require an entire building to be renovated to obtain LEED points when the building renovation project is for a portion of a building. VII. Assure that the design and construction of facilities maintenance and minor renovation projects are accomplished consistent with LEED guidelines. This paragraph shall not be interpreted to mandate the use of a LEED scoring system. 4. Join, along with other principal state departments as the Department of Management and Budget deems necessary, the United States Green Building Council. USE OF GREEN LODGING MICHIGAN PROGRAM A. VIII 3. Departments and agencies are encouraged whenever practical and cost-efficient to utilize meeting or conference facilities and lodging facilities participating in the Green Lodging Michigan Program jointly administered by the Department of Environmental Quality and the State Energy Office. MATERIALS MANAGEMENT PLAN A. 12096859.2 By July 1, 2008, the Department of Management and Budget, in cooperation with the Department of Environmental Quality, shall develop and implement a state materials management plan to promote, whenever feasible, environmentallysound purchasing, use, reuse, and recycling of materials by state departments and agencies. The plan shall provide for all of the following: 1. An inventory of existing efforts in state government related to environmentally-sound purchasing, use, reuse, and recycling of materials. 2. Recommendations to expand the use of environmentally-sound purchasing, use, reuse, and recycling of materials by state departments and agencies. 3. Review of waste stream management to enhance reuse and recycling efforts and maximize return to the state. 4. A pollution prevention and recycling guidance document for departments and agencies to assist employees in maximizing the effectiveness of environmentally-sound purchasing, use, reuse, and recycling of materials. 5. Implementation of an education and information program to assist state employees in the practice of recycling and pollution prevention, including, but not limited to environmentally-preferred procurement options, reduction in the use of products and materials, and increased opportunities for reuse and recycling as provided under Section 16502 of the Natural Resources and Environmental Protection Act, 1994 PA 451, MCL 324.16502. IX. RECOGNITION OF EFFORTS TO IMPROVE STATE ENERGY EFFICIENCY A. X. The Department of Environmental Quality, in cooperation with the Department of Management and Budget and the State Energy Office, shall establish an annual award program to be known as the Governor's Award for Excellence in Energy Efficiency to annually recognize and reward state department or agency progress in implementing cost-effective energy efficiency and Energy Conservation Measures and for achieving energy savings consistent with this Directive. IMPLEMENTATION AND ENFORCEMENT A. The Department of Environmental Quality, the Department of Management and Budget, the State Energy Office and the Michigan Public Service Commission shall provide technical assistance to state departments and agencies in implementing this Directive. B. The Department of Environmental Quality and the Department of Management and Budget shall adopt policies and procedures to require all principal departments to prepare an annual report describing steps taken to comply with this Directive, including, but not limited to, department progress in employing strategies to improve energy efficiency, implementation of energy conservation measures, and savings achieved. C. All departments and agencies shall assist the Department of Environmental Quality and the Department of Management and Budget, as necessary, in implementing the requirements of this Directive. D. The Department of Environmental Quality and the Department of Management and Budget shall enforce the requirements of this Directive and any policies, procedures, or department directives issued to implement this Directive pursuant to The Management and Budget Act, 1984 PA 431, MCL 18.1101 to 18.1594. E. Reports of violation of the requirements of this Directive shall be transmitted to the Director of the Department of Environmental Quality and the Director of the Department of Management and Budget. F. This Directive supersedes Executive Directives 2005-4 and 2007-6. Executive Directives 2005-4 and 2007-6 are rescinded in their entirety. This Directive is effective immediately. 12096859.2 Minnesota (back to top) CHAPTER 16B DEPARTMENT OF ADMINISTRATION 16B.32 ENERGY USE. Subdivision 1. Alternative energy sources.Plans prepared by the commissioner for a new building or for a renovation of 50 percent or more of an existing building or its energy systems must include designs which use active and passive solar energy systems, earth sheltered construction, and other alternative energy sources where feasible. Subdivision 1a. Onsite energy generation from renewable sources. A state agency that prepares a predesign for a new building must consider meeting at least two percent of the energy needs of the building from renewable sources located on the building site. For purposes of this subdivision, "renewable sources" are limited to wind and the sun. The predesign must include an explicit cost and price analysis of complying with the two-percent requirement compared with the present and future costs of energy supplied by a public utility from a location away from the building site and the present and future costs of controlling carbon emissions. If the analysis concludes that the building should not meet at least two percent of its energy needs from renewable sources located on the building site, the analysis must provide explicit reasons why not. The building may not receive further state appropriations for design or construction unless at least two percent of its energy needs are designed to be met from renewable sources, unless the commissioner finds that the reasons given by the agency for not meeting the two-percent requirement were supported by evidence in the record. Subdivision 2. Energy conservation goals. The commissioner of administration in consultation with the commissioner of commerce, in cooperation with one or more public utilities or comprehensive energy services providers, may conduct a shared-savings program involving energy conservation expenditures on state-owned and wholly state-leased buildings. The public utility or energy services provider shall contract with appropriate state agencies to implement energy efficiency improvements in the selected buildings. A contract must require the public utility or energy services provider to include all energy efficiency improvements in selected buildings that are calculated to achieve a cost payback within ten years. The contract must require that the public utility or energy services provider be repaid solely from energy cost savings and only to the extent of energy cost savings. Repayments must be interest-free. The goal of the program in this paragraph is to demonstrate that through effective energy conservation the total energy consumption per square foot of state-owned and wholly stateleased buildings could exceed existing energy code by at least 30 percent. All agencies must report to the commissioner of administration their monthly energy usage, building schedules, inventory of energy-consuming equipment, and other information as needed by the commissioner to manage and evaluate the program. Subdivision 3. Gifts. The commissioner may accept gifts for energy efficiency improvements in state-owned and wholly leased buildings. Energy cost savings from these improvements, up to the cost of these improvements, shall be deposited in a special revenue fund established in the 12096859.2 state treasury. Money in the special revenue fund is appropriated to the commissioner to implement further energy efficiency improvements in state-owned or wholly leased buildings. 16B.321 DEFINITIONS. Subdivision 1. Scope. For the purpose of this section and section 16B.322, the terms defined in this section have the meanings given them. Subdivision 2. Energy improvement project. "Energy improvement project" means: (1) a project to improve energy efficiency in a building or facility, including the design, acquisition, installation, construction, and commissioning of equipment or improvements to a building or facility owned or operated by a state agency, and training of building or facility staff necessary to properly operate and maintain the equipment or improvements; or (2) a project to design, acquire, install, construct, and commission equipment or products to utilize solar, wind, geothermal, biomass, or other alternative energy sources in heating, cooling, or providing electricity for a building or facility owned or operated by a state agency and training of building or facility staff necessary to properly operate and maintain the equipment or improvements. Subdivision 3. Energy project study. "Energy project study" means a technical and financial study of one or more energy improvement projects, including: (1) an analysis of historical energy consumption and cost data; (2) a description of existing equipment, structural elements, operating characteristics, and other conditions affecting energy use; (3) a description of the proposed energy improvement projects; (4) a detailed budget for the proposed project; and (5) calculations sufficient to demonstrate the expected energy and operational cost savings and reduction in fossil-fuel use. Subdivision 4. Financing agreement. "Financing agreement" means a tax-exempt leasepurchase agreement entered into by the commissioner of administration and a financial institution under a standard project financing agreement offered under section 16B.322, subdivision 4. Subdivision 5.State agency. "State agency" means any office, board, commission, authority, department, or other agency of the executive branch of state government. 16B.322 STATE ENERGY IMPROVEMENT FINANCING PROGRAM. 12096859.2 Subdivision 1. Commissioner's authority and duties; state agency authority. The commissioner shall administer the energy improvement financing program created by this section. A state agency may enter into contracts for the purposes of this section with the commissioner and participating financial institutions. All technical services and construction contracts shall be executed through the appropriate procurement procedure in this chapter, chapter 16C, and other applicable law. Subdivision 2. Program eligibility; voluntary program participation; targeted technical services. A state agency may elect to participate in the program. The commissioner may prioritize and target technical services offered under subdivision 3 to state agencies with state buildings or facilities that the commissioner determines offer the greatest potential to improve energy efficiency or reduce use of fossil-fuel energy. Subdivision 3. Targeted technical services. The commissioner may require full or partial reimbursement of costs for technical services provided to a state agency, subject to terms and conditions specified and agreed to by contract prior to the delivery of technical services. Subdivision 4. Financing agreement. The commissioner shall solicit proposals from private financial institutions on an individual project or line of credit basis and may enter into a financing agreement with one or more financial institutions. If a financing agreement is for an individual project, the term of the financing agreement shall not exceed 15 years from the date of final completion of the energy improvement project and a financing agreement is assignable to the state agency operating or managing the state building or facility improved by the energy improvement project. The term of a financing agreement on an individual project basis must be less than the average expected useful life of the energy saving measures implemented under the project. The proceeds from the financing agreement are appropriated to the commissioner and may be used for the purposes of this section and are available until spent. Subdivision 4a. Follow customary terms. The commissioner of administration may, in connection with a financing agreement, covenant that the state will abide by the terms and provisions that are customary in net lease or lease-purchase transactions including, but not limited to, covenants providing that the state: (1) will maintain insurance as required under the terms of the lease agreement; (2) is responsible to the lessor for any public liability or property damage claims or costs related to the selection, use, or maintenance of the leased equipment, to the extent of insurance or selfinsurance maintained by the lessee, and for costs and expenses incurred by the lessor as a result of any default by the lessee; (3) authorizes the lessor to exercise the rights of a secured party with respect to the equipment subject to the lease in the event of default by the lessee and, in addition, for the present recovery of lease rentals due during the current term of the lease as liquidated damages. Subdivision 4b. Master lease-purchase agreements not debt. A financing agreement under this section does not constitute or create a general or moral obligation or indebtedness of the state 12096859.2 in excess of the money from time to time appropriated or otherwise available for the payment of rent coming due under the lease, and the state has no continuing obligation to appropriate money for the payment of rent or other obligations under the agreement. Rent due under a financing agreement under this section during a current term for which money has been appropriated is a current expense of the state. Subdivision 4c. Budget offset. The commissioner shall require a state agency that uses the state energy improvement program to certify that the agency will budget, allocate, and commit agency funds sufficient to make rent payments under a financing agreement until all rent obligations are paid in full. In the event a participating agency fails to make a rent payment, the commissioner of management and budget shall reduce the operating budget of the state agency. The amount of the reduction is the amount sufficient to make the actual payments. Subdivision 5. Qualifying energy improvement projects. The commissioner may approve an energy improvement project for a financing agreement if the commissioner determines that: (1) the project and project financing agreement have been approved by the governing body or head of the state agency that operates or manages the state building or facility to be improved; (2) the project is technically and economically feasible; (3) the state agency that operates or manages the state building or facility has made adequate provision for the operation and maintenance of the project; (4) if an energy efficiency improvement, the project is calculated to result in a positive cash flow in each year the financing agreement is in effect; (5) the project proposer has fully explored the use of conservation investment plan opportunities under section 216B.241 with the utilities providing gas and electric service to the energy improvement project; (6) if a renewable energy improvement, the project is calculated to reduce use of fossil-fuel energy; and (7) if a geothermal energy improvement, the project is calculated to produce savings in terms of nongeothermal energy and costs. For the purpose of clause (6), "renewable energy" is energy produced by an eligible energy technology as defined in section 216B.1691, subdivision 1, paragraph (a), clause (1). Subd. 6.Program costs. Program costs incurred by the commissioner or a state agency that are not reimbursed or paid directly under a financing agreement may be paid with money made available to the commissioner under section 216C.43, subdivision 10. 12096859.2 Subdivision 7. Conservation investment plan savings goals. A utility or association may count toward its energy-savings goals under section 216B.241, subdivision 1c, the energy savings resulting from its investment in an energy improvement project. Subdivision 8. Report. Beginning January 15, 2009, and each year thereafter, the commissioner of administration shall submit to the chairs and ranking minority members of the senate and house of representatives committees on energy finance a report containing, at a minimum, the following information regarding projects implemented under this section: (1) the total number of projects; (2) the amount of calculated and, if available, actual energy savings for each project; (3) the cost of each project; and (4) the total amount paid for technical services provided under subdivision 3 for each project. 16B.323 SOLAR ENERGY IN STATE BUILDINGS.. Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given. (b) "Made in Minnesota" means the manufacture in this state of: (i) components of a solar thermal system certified by the Solar Rating and Certification Corporation; or (ii) solar photovoltaic modules that: (1) are manufactured at a manufacturing facility in Minnesota that is registered and authorized to manufacture those solar photovoltaic modules by Underwriters Laboratory, CSA International, Intertek, or an equivalent independent testing agency; (2) bear certification marks from Underwriters Laboratory, CSA International, Intertek, or an equivalent independent testing agency; and (3) meet the requirements of section 116C.7791, subdivision 3, paragraph (a), clauses (1), (5), and (6). For the purposes of clause (ii), "manufactured" has the meaning given in section 116C.7791, subdivision 1, paragraph (b), clauses (1) and (2). (c) "Major renovation" means a substantial addition to an existing building, or a substantial change to the interior configuration or the energy system of an existing building. 12096859.2 (d) "Solar energy system" means solar photovoltaic modules alone or installed in conjunction with a solar thermal system. (e) "Solar photovoltaic module" has the meaning given in section 116C.7791, subdivision 1, paragraph (e). (f) "Solar thermal system" has the meaning given "qualifying solar thermal project" in section 216B.2411, subdivision 2, paragraph (e). (g) "State building" means a building whose construction or renovation is paid wholly or in part by the state from the bond proceeds fund. Subdivision 2. Solar energy system. (a) As provided in paragraphs (b) and (c), a project for the construction or major renovation of a state building, after the completion of a cost-benefit analysis, may include installation of "Made in Minnesota" solar energy systems of 40 kilowatts capacity on, adjacent, or in proximity to the state building. (b) The capacity of a solar system must be less than 40 kilowatts to the extent necessary to match the electrical load of the building or to the extent necessary to keep the costs for the installation below the five percent maximum set by paragraph (c). (c) The cost of the solar system must not exceed five percent of the appropriations from the bond proceeds fund for the construction or renovation of the state building. Purchase and installation of a solar thermal system may account for no more than 25 percent of the cost of a solar system installation. (d) A project subject to this section is ineligible to receive a rebate for the installation of a solar energy system under section 116C.7791 or from any utility. 16B.325 SUSTAINABLE BUILDING GUIDELINES. Subdivision 1. Development of sustainable building guidelines. The Department of Administration and the Department of Commerce, with the assistance of other agencies, shall develop sustainable building design guidelines for all new state buildings by January 15, 2003, and for all major renovations of state buildings by February 1, 2009. The primary objectives of these guidelines are to ensure that all new state buildings, and major renovations of state buildings, initially exceed the state energy code, as established in Minnesota Rules, chapter 7676, by at least 30 percent. Subd. 2. Lowest possible cost; energy conservation. The guidelines must focus on achieving the lowest possible lifetime cost for new buildings and major renovations, and allow for changes in the guidelines that encourage continual energy conservation improvements in new buildings and major renovations. The guidelines shall define “major renovations” for purposes of this section. The definition may not allow “major renovations” to encompass less than 10,000 square feet or to encompass less than the replacement of the mechanical, ventilation, or cooling system of the building or a section of the building. The design guidelines must establish 12096859.2 sustainability guidelines that include air quality and lighting standards and that create and maintain a healthy environment and facilitate productivity improvements; specify ways to reduce material costs; and must consider the long-term operating costs of the building, including the use of renewable energy sources and distributed electric energy generation that uses a renewable source or natural gas or a fuel that is as clean or cleaner than natural gas. Subd. 3. Development of guidelines; applicability. In developing the guidelines, the departments shall use an open process, including providing the opportunity for public comment. The guidelines established under this section are mandatory for all new buildings receiving funding from the bond proceeds fund after January 1, 2004, and for all major renovations receiving funding from the bond proceeds fund after January 1, 2009. Subd. 4. Guideline revisions. The commissioners of administration and commerce shall review the guidelines periodically and as soon as practicable revise the guidelines to incorporate performance standards developed under section 216B.241, subdivision 9. 16B.326 HEATING AND COOLING SYSTEMS; STATE-FUNDED BUILDINGS. The commissioner must review project proposer's study for geothermal and solar thermal applications as possible uses for heating or cooling for all building projects subject to a predesign review under section 16B.335 that receive any state funding for replacement of heating or cooling systems. When practicable, geothermal and solar thermal heating and cooling systems must be considered when designing, planning, or letting bids for necessary replacement or initial installation of cooling or heating systems in new or existing buildings that are constructed or maintained with state funds. The predesign review must include a written plan for compliance with this section from a project proposer. For the purposes of this section, "solar thermal" means a flat plate or evacuated tube with a fixed orientation that collects the sun's radiant energy and transfers it to a storage medium for distribution as energy for heating and cooling. 16B.327 RECYCLING CONSTRUCTION AND DEMOLITION WASTE FROM STATE BUILDINGS; REQUIREMENT. The commissioner shall require in contracts for the construction, renovation, or demolition of a state building that the contractor and any subcontractor must divert from deposit in a landfill and must recycle at least 50 percent of the nonhazardous construction and demolition waste, measured by tonnage or volume, produced by the project or demonstrate that the waste was delivered to construction and demolition waste recycling facilities that maintain a 50 percent annual recycling rate. This requirement applies to a project to construct, renovate, or demolish a state building that receives funding from the bond proceeds fund after January 1, 2011, provided that: 12096859.2 (1) the project is located within 40 miles of a construction and demolition waste recycling facility that meets the requirements of this section and can process the applicable building materials; and (2) for construction and renovation projects, funding from the bond proceeds fund is $5,000,000 or more. For the purposes of this section, "state building" means a building wholly owned or leased by a state agency, the Minnesota State Colleges and Universities, or the University of Minnesota. 16B.328 OUTDOOR LIGHTING FIXTURES MODEL ORDINANCE. Subdivision 1. Definitions. For purposes of this section, the following terms have the meanings given: (1) "energy conservation" means reducing energy use and includes: (i) using a light with lower wattage; and (ii) using devices such as time controls, motion detectors, or on and off switches that limit unnecessary use of lighting; (2) "cutoff luminaire" means a luminaire in which 2.5 percent or less of the lamp lumens are emitted above a horizontal plane through the luminaire's lowest part and ten percent or less of the lamp lumens are emitted at a vertical angle 80 degrees above the luminaire's lowest point; (3) "light pollution" means the shining of light produced by a luminaire above the height of the luminaire and into the sky; (4) "lumen" means a unit of luminous flux. One footcandle is one lumen per square foot. For purposes of this section, the lumen-output values are the initial lumen-output rating of the lamp; (5) "luminaire" means a complete lighting unit consisting of a light source and all necessary mechanical, electrical, and decorative parts; and (6) "outdoor lighting fixture" means any type of fixed or movable lighting equipment that is designed or used for illumination outdoors. The term includes billboard lighting, streetlights, searchlights, and other lighting used for advertising purposes and area lighting. The term does not include lighting equipment that is required by law to be installed on motor vehicles or lighting required for the safe operation of aircraft. Subd. 2. Model ordinance. The commissioner of administration, in consultation with the commissioner of commerce, associations for local governments, and any other interested person, shall develop a model ordinance that can be adapted for use by cities, counties, and towns, governing outdoor lighting to reduce light pollution. The model ordinance must address: (1) standards for lighting on private property; outdoor advertising; lighting on commercial, industrial, or institutional property; canopies covering fueling stations; and public streets, sidewalks, and alleys; 12096859.2 (2) how illumination levels should be measured; (3) possible exemptions, such as for temporary emergency or hazard lighting; (4) recommended elements for an exterior lighting plan for a development; (5) treatment of nonconforming lighting; (6) lighting standards that might apply in special subdistricts; (7) light pole maximum heights; and (8) light trespass. Subd. 3.Standards for state-funded outdoor lighting fixtures. (a) An outdoor lighting fixture may be installed or replaced using state funds only if: (1) the new or replacement outdoor lighting fixture is a cutoff luminaire if the rated output of the outdoor lighting fixture is greater than 1,800 lumens; (2) the minimum illuminance adequate for the intended purpose is used with consideration given to nationally recognized standards; (3) for lighting of a designated highway of the state highway system, the Department of Transportation determines that the purpose of the outdoor lighting fixture cannot be achieved by the installation of reflective road markers, lines, warning or informational signs, or other effective passive methods; and (4) full consideration has been given to energy conservation and savings, reducing glare, minimizing light pollution, and preserving the natural night environment. (b) Paragraph (a) does not apply if: (1) a federal law, rule, or regulation preempts state law; (2) the outdoor lighting fixture is used on a temporary basis because emergency personnel require additional illumination for emergency procedures; (3) the outdoor lighting fixture is used on a temporary basis for nighttime work; (4) special events or situations require additional illumination, provided that the illumination installed shields the outdoor lighting fixtures from direct view and minimizes upward lighting and light pollution; 12096859.2 (5) the outdoor lighting fixture is used solely to highlight the aesthetic aspects of a single object or distinctive building; or (6) a compelling safety interest exists that cannot be addressed by another method. (c) This subdivision does not apply to the operation and maintenance of lights or lighting systems purchased or installed, or for which design work is completed, before August 1, 2008. (d) This section does not apply if a state agency or local unit of government determines that compliance with this section would: (1) require an increased use of electricity; (2) increase the construction cost of a lighting system more than 15 percent over the construction cost of a lighting system that does not comply with this section; (3) increase the cost of operation and maintenance of the lighting system more than ten percent over the cost of operating and maintaining the existing lighting system over the life of the lighting system; or (4) result in a negative safety impact. CHAPTER 473 METROPOLITAN GOVERNMENT 473.759. CRITERIA AND CONDITIONS Subdivision 1. Binding and enforceable. In developing the ballpark and entering into related contracts, the authority must follow and enforce the criteria and conditions in subdivisions 2 to 15, provided that a determination by the authority that those criteria or conditions have been met under any agreement or otherwise shall be conclusive. Subd. 2. Team contributions. The team must agree to contribute $130,000,000 toward ballpark costs, less a proportionate share of any amount by which actual ballpark costs may be less than a budgeted amount of $390,000,000. The team contributions must be funded in cash during the construction period. The team shall deposit $45,000,000 to the construction fund to pay for the first ballpark costs. The balance of the team's contribution must be used to pay the last costs of the ballpark construction. In addition to any other team contribution, the team must agree to assume and pay when due all cost overruns for the ballpark costs that exceed the budget. Subd. 3. Reserve for capital improvements. The authority shall require that a reserve fund for capital improvements to the ballpark be established and funded with annual payments of $2,000,000, with the team's share of those payments to be approximately $1,000,000, as determined by agreement of the team and county. The annual payments shall increase according to an inflation index determined by the authority, provided that any portion of the team's contribution that has already been reduced to present value shall not increase according to an 12096859.2 inflation index. The authority may accept contributions from the county or other source for the portion of the funding not required to be provided by the team. Subd. 4. Lease or use agreements. The authority must agree to a long-term lease or use agreement with the team for its use of the ballpark. The team must agree to play all regularly scheduled and postseason home games at the ballpark. Preseason games may also be scheduled and played at the ballpark. The lease or use agreement must be for a term of at least 30 years from the date of ballpark completion. The lease or use agreement must include terms for default, termination, and breach of the agreement. Recognizing that the presence of major league baseball provides to Hennepin County, the state of Minnesota, and its citizens highly valued, intangible benefits that are virtually impossible to quantify and, therefore, not recoverable in the event of a team owner's breach of contract, the lease and use agreements must provide for specific performance and injunctive relief to enforce provisions relating to use of the ballpark for major league baseball and must not include escape clauses or buyout provisions. The team must not enter into or accept any agreement or requirement with or from Major League Baseball or any other entity that is inconsistent with the team's binding commitment to the 30-year term of the lease or use agreement or that would in any manner dilute, interfere with, or negate the provisions of the lease or use agreement, or of any grant agreement under section 473.757 that includes a specific performance clause, providing for specific performance or injunctive relief. The legislature conclusively determines, as a matter of public policy, that the lease or use agreement, and any grant agreement under section 473.757 that includes a specific performance clause: (a) explicitly authorize specific performance as a remedy for breach; (b) are made for adequate consideration and upon terms which are otherwise fair and reasonable; (c) have not been included through sharp practice, misrepresentation, or mistake; (d) if specifically enforced, do not cause unreasonable or disproportionate hardship or loss to the team or to third parties; and (e) involve performance in such a manner and the rendering of services of such a nature and under such circumstances that the beneficiary cannot be adequately compensated in damages. Subd. 5. Notice requirement for certain events. Until 30 years from the date of ballpark completion, the team must provide written notice to the authority not less than 90 days prior to any action, including any action imposed upon the team by Major League Baseball, which would result in a breach or default of provisions of the lease or use agreements required to be included under subdivision 4. If this notice provision is violated and the team has already breached or been in default under the required provisions, the authority, the county, or the state of Minnesota is authorized to specifically enforce the lease or use agreement, and Minnesota courts are authorized and directed to fashion equitable remedies so that the team may fulfill the conditions of the lease and use agreements, including, but not limited to, remedies against Major League Baseball. Subd. 6. Enforceable financial commitments. The authority must determine before ballpark construction begins that all public and private funding sources for construction of the ballpark are included in written agreements. The committed funds must be adequate to design, construct, furnish, and equip the ballpark. 12096859.2 Subd. 7. Environmental requirements. The authority must comply with all environmental requirements imposed by regulatory agencies for the ballpark, site, and structure, except as provided by section 473.758, subdivision 1. Subd. 8. Right of first refusal. The lease or use agreement must provide that, prior to any planned sale of the team, the team must offer a corporation formed under section 473.763 a right of first refusal to purchase the team at the same price and upon the same terms and conditions as are contemplated in the intended sale. Subd. 9. Public share upon sale of team. The lease or use agreement must provide that, if the team is sold after May 27, 2006, a portion of the sale price must be paid to the authority and deposited in a reserve fund for improvements to the ballpark or expended as the authority may otherwise direct. The portion required to be so paid to the authority is 18 percent of the gross sale price, declining to zero ten years after commencement of ballpark construction in increments of 1.8 percent each year. The agreement shall provide exceptions for sales to members of the owner's family and entities and trusts beneficially owned by family members, sales to employees of equity interests aggregating up to ten percent, and sales related to capital infusions not distributed to the owners. Subd. 10. Access to books and records. The lease or use agreement must provide the authority access to annual audited financial statements of the team and other financial books and records that the authority deems necessary to determine compliance by the team with Laws 2006, chapter 257, and to enforce the terms of any lease or use agreements entered into under Laws 2006, chapter 257. Any financial information obtained by the authority under this subdivision is nonpublic data under section 13.02, subdivision 9. Subd. 11. Affordable access. To the extent determined by the authority or required by a grant agreement, any lease or use agreement must provide for affordable access to the professional sporting events held in the ballpark. Subd. 12. No strikes; lockouts. The authority must negotiate a public sector project labor agreement or other agreement to prevent strikes and lockouts that would halt, delay, or impede construction of the ballpark and related facilities. Subd. 13. Youth and amateur sports. The lease or use agreement must require that the team provide or cause to be provided $250,000 annually for the term of the agreement for youth activities and youth and amateur sports without reducing the amounts otherwise normally provided for and on behalf of the team for those purposes. The amounts shall increase according to an inflation factor not to exceed 2.5 percent annually and may be subject to a condition that the county fund grants for similar purposes. Subd. 14. Name retention. The lease or use agreement must provide that the team and league will transfer to the state of Minnesota the Minnesota Twins' heritage and records, including the name, logo, colors, history, playing records, trophies, and memorabilia in the event of any dissolution or relocation of the Twins franchise. 12096859.2 Subd. 15. Ballpark design. (a) If the authority obtains grants sufficient to cover the increased costs, the authority must ensure that the ballpark receives Leadership in Energy and Environmental Design (LEED) certification for environmental design, and to the extent practicable, that the ballpark design is architecturally significant. The Department of Administration and the Department of Commerce must cooperate with the authority to obtain any grants or other funds that are available to help to pay for the cost of meeting the requirements for the LEED certification. (b) The ballpark design must, to the extent feasible, follow sustainable building guidelines established under section 16B.325. (c) The authority must ensure that the ballpark be, to the greatest extent practicable, constructed of American-made steel. 469.1655. Qualified green building and sustainable design projects Subdivision 1. Project designation and eligibility. (a) A municipality or redevelopment agency issuing revenue bonds under sections 469.152 to 469.165 may designate the project for which the bonds are issued as a qualified green building and sustainable design project as provided in this section. (b) The issuer must ensure that each designated project substantially: (1) reduces consumption of electricity compared to conventional construction; (2) reduces daily carbon dioxide emissions compared to energy generated from coal; (3) increases the use of solar photovoltaic cells or solar thermal cells in this state; or (4) increases the use of fuel cells to generate energy. (c) Before designating a project under this section, the issuer must document in writing that the project will satisfy the eligibility criteria in this section. (d) At least 75 percent of the square footage of commercial buildings that are part of the project must be registered with a recognized green building rating system, including Minnesota's sustainable building guidelines or the United States Green Building Council's LEED certification or the Green Building Initiative's Green Globes certification, or in the case of residential buildings, Minnesota GreenStar rating or the National Association of Home Builders National Green Building Standard certification, and must be reasonably expected to receive the certification. Subd. 2. Applications. An application for designation under this section must include a project proposal that describes the energy-efficiency, renewable energy, and sustainable design features of the project and demonstrates that the project satisfies the eligibility criteria in this section. The application must include a description of: 12096859.2 (1) the amount of electric consumption reduced as compared to conventional construction; (2) the amount of carbon dioxide daily emissions reduced compared to energy generated from coal; (3) the amount of the gross installed capacity of the project's solar photovoltaic capacity measured in megawatts; and (4) the amount in megawatts of the project's energy generated by fuel cells. Subd. 3. Use of bond financing. The project proposal must include a description of the bond financing that will be allocated for financing of one or more of the following: (1) the purchase, construction, integration, or other use of energy-efficiency, renewable energy, and sustainable design features of the project; or (2) compliance with certification standards cited under subdivision 1, paragraph (d). 216C.414. “Made in Minnesota” solar energy production incentive Subdivision 1. Setting incentive. Within 90 days of a module being certified as “Made in Minnesota” the commissioner of commerce shall set a solar energy production incentive amount for that solar photovoltaic module for the purpose of the incentive payment under section 216C.415. The incentive is a performance-based financial incentive expressed as a per kilowatthour amount. The amount shall be used for incentive applications approved in the year to which the incentive amount is applicable for the ten-year duration of the incentive payments. An incentive amount must be calculated for each module for each calendar year through 2023. Subd. 2. Criteria for determining incentive amount. (a) The commissioner shall set the incentive payment amount by determining the average amount of incentive payment required to allow an average owner of installed solar photovoltaic modules a reasonable return on their investment. In setting the incentive amount the commissioner shall consider: (1) an estimate of the installed cost per kilowatt-direct current, based on the cost data supplied by the manufacturer in the application submitted under section 216C.413, and an estimate of the average installation cost based on a representative sample of Minnesota solar photovoltaic installed projects; (2) the average insolation rate in Minnesota; (3) an estimate of the decline in the generation efficiency of the solar photovoltaic modules over time; (4) the rate paid by public utilities to owners of solar photovoltaic modules under section 216B.164 or other law; (5) applicable federal tax incentives for installing solar photovoltaic modules; and (6) the estimated levelized cost per kilowatt-hour generated. (b) The commissioner shall annually, for incentive applications received in a year, revise each incentive amount based on the factors in paragraph (a), clauses (1) to (6), general market conditions, and the availability of other incentives. In no case shall the “Made in Minnesota” 12096859.2 incentive amount result in the “Made in Minnesota” incentives paid exceeding 40 percent, net of average applicable taxes on the ten-year incentive payments, of the average historic installation cost per kilowatt. The commissioner may exceed the 40 percent cap if the commissioner determines it is necessary to fully expend funds available for incentive payments in a particular year. Subd. 3. Metering of production. A public utility must, at the expense of a customer, provide a meter to measure the production of a solar photovoltaic module system that is approved to receive incentive payments. The public utility must furnish the commissioner with information sufficient for the commissioner to determine the incentive payment. The information must be provided on a calendar year basis by no later than March 1. The commissioner shall provide a public utility with forms to use to provide the production information. A customer must attest to the accuracy of the production information. Subd. 4. Payment due date. Payments must be made no later than July 1 following the year of production. Subd. 5. Renewable energy credits. Renewable energy credits associated with energy provided to a public utility for which an incentive payment is made belong to the utility. 216C.416. Solar thermal rebates Subdivision 1. Rebate program created. The commissioner of commerce shall operate a program to provide rebates for the installation of “Made in Minnesota” solar thermal systems in the state. “Solar thermal system” means a flat plate or evacuated tube that meets the requirements of section 216C.25 with a fixed orientation that collects the sun's radiant energy and transfers it to a storage medium for distribution as energy to heat or cool air or water. A solar thermal system is “Made in Minnesota” if components of the system are manufactured in Minnesota and the solar thermal system is certified by the Solar Rating and Certification Corporation. The solar thermal system may be installed in residential and commercial facilities for, among other purposes, hot water, space heating, or pool heating purposes. Subd. 2. Account; funding. (a) The solar thermal system rebate account is created as a separate account in the special revenue fund in the state treasury. Earnings, such as interest, dividends, and any other earnings arising from account assets, must be credited to the account. Funds in the account are appropriated to the commissioner of commerce for the purpose of making the rebate payments under this section and administering this section. (b) Beginning January 1, 2014, and each January 1 thereafter to January 1, 2023, the commissioner of commerce shall annually transfer $250,000 from the account created in section 216C.412 for deposit in the account created in this subdivision. (c) To the extent there are sufficient applications, the commissioner shall annually spend for rebates under this section from 2014 to 2023, for a total of ten years, approximately $250,000 per year. If sufficient applications are not received to spend the money 12096859.2 available for rebates in a year under this section, the unspent money must be returned to the account from which it was transferred, provided that funds available for 2014 applications shall remain available for 2015 applications. Subd. 3. Individual incentives. The maximum rebate for a single family residential dwelling installation is the lesser of 25 percent of the installed cost of a complete system or $2,500. The maximum rebate for a multiple family residential dwelling installation is the lesser of 25 percent of the installed cost of a complete system or $5,000. The maximum rebate for a commercial installation is the lesser of 25 percent of the installation cost of the complete system or $25,000. The system must be installed by a factory authorized installer. The commissioner shall allocate approximately 50 percent of the rebates in each year to solar thermal hot water and 50 percent to solar thermal air projects if sufficient applications are made for each. Subd. 4. Application process. Applications for incentives must be made to the commissioner of commerce on forms provided by the commissioner. The commissioner shall use a random process for the selection of recipients of incentives except to the extent necessary to allocate rebates as required by this section. 12096859.2 Mississippi (back to top) § 31-11-35. Rules and regulations, energy performance of state-funded buildings, construction projects (1) The Department of Finance and Administration shall adopt rules and regulations which: (a) Optimize the energy performance of state-funded buildings throughout the state; (b) Increase the demand for building and construction materials, finishes, furnishings and other products made in or incorporating materials produced in Mississippi; (c) Improve environmental quality in this state by decreasing the discharge of pollutants from state-funded buildings; (d) Conserve energy and utilize local and renewable energy sources; (e) Protect and restore this state's natural resources by avoiding development of inappropriate state-funded building sites; (f) Reduce the burden on public water supply and treatment by reducing potable water consumption; and (g) Encourage obtaining ENERGY STAR designation from the United States Environmental Protection Agency to further demonstrate a building project's energy independence. (2) Each major facility project shall be designed and constructed to exceed the requirements of the energy conservation guides adopted by the Department of Finance and Administration, Bureau of Building, Grounds and Real Property Management, by at least thirty percent (30%) where it is determined by the Department of Finance and Administration that such thirty percent (30%) efficiency is cost-effective. (3) In order to achieve sustainable building standards, construction projects may utilize a nationally recognized high performance environmental building rating system; provided, however, that any such rating system that uses a material or product-based credit system which is disadvantageous to materials or products manufactured or produced in Mississippi shall not be utilized. Additionally, such rating systems shall not exclude certificate credits for forest products certified by the Sustainable Forestry Initiative, Forest Stewardship Council or the American Tree Farm System. The Department of Finance and Administration shall designate rating systems which meet these criteria and may establish its own rating system. (4) A nationally certified commissioning authority professional shall certify that the major facility project's systems for heating, ventilation, air conditioning, energy conservation and water 12096859.2 conservation are installed and working properly to ensure that each major facility project performs according to the major facility project's overall environmental design intent and operational objectives. (5) For purposes of this section, a major facility project shall mean either: (a) A state-funded new construction building project which is: (i) From July 1 through December 31, 2009, the project shall be larger than twenty thousand (20,000) gross square feet; (ii) From January 1, 2010, through December 31, 2010, the project shall be larger than fifteen thousand (15,000) gross square feet; (iii) From January 1, 2011, through December 31, 2011, the project shall be larger than ten thousand (10,000) gross square feet; and (iv) From January 1, 2012, and thereafter, the project shall be larger than five thousand (5,000) gross square feet; (b) A state-funded renovation project which involves more than fifty percent (50%) of the replacement value of the facility. (6) A major facility project shall not mean a building, regardless of size, which does not have conditioned space as defined by Standard 90.1 of the American Society of Heating, Refrigerating, and Air Conditioning Engineers. (7) For purposes of this section, a “major facility project” shall include, but not be limited to, the construction or renovation of buildings that are financed, in whole or in part, through the use of a community development block grant. 12096859.2 Missouri (back to top) 8.800. Definitions As used in sections 8.800 to 8.825, the following terms mean: (1) “Builder”, the prime contractor that hires and coordinates building subcontractors or if there is no prime contractor, the contractor that completes more than fifty percent of the total construction work performed on the building. Construction work includes, but is not limited to, foundation, framing, wiring, plumbing and finishing work; (2) “Department”, the department of natural resources; (3) “Designer”, the architect, engineer, landscape architect, builder, interior designer or other person who performs the actual design work or is under the direct supervision and responsibility of the person who performs the actual design work; (4) “District heating and cooling systems”, heat pump systems which use waste heat from factories, sewage treatment plants, municipal solid waste incineration, lighting and other heat sources in office buildings or which use ambient thermal energy from sources including temperature differences in rivers to provide regional heating or cooling; (5) “Division”, the division of design and construction; (6) “Energy efficiency”, the increased productivity or effectiveness of energy resources use, the reduction of energy consumption, or the use of renewable energy sources; (7) “Gray water”, all domestic wastewater from a state building except wastewater from urinals, toilets, laboratory sinks, and garbage disposals; (8) “Life cycle costs”, the costs associated with the initial construction or renovation and the proposed energy consumption, operation and maintenance costs over the useful life of a state building or over the first twenty-five years after the construction or renovation is completed; (9) “Public building”, a building owned or operated by a governmental subdivision of the state, including, but not limited to, a city, county or school district; (10) “Renewable energy source”, a source of thermal, mechanical or electrical energy produced from solar, wind, low-head hydropower, biomass, hydrogen or geothermal sources, but not from the incineration of hazardous waste, municipal solid waste or sludge from sewage treatment facilities; (11) “State agency”, a department, commission, authority, office, college or university of this state; 12096859.2 (12) “State building”, a building owned by this state or an agency of this state; (13) “Substantial renovation” or “substantially renovated”, modifications that will affect at least fifty percent of the square footage of the building or modifications that will cost at least fifty percent of the building's fair market value. 8.803. Financing energy efficiency projects in state buildings, bond issue authorized, procedure The board of public buildings, in accordance with section 8.400, or the state environmental improvement and energy resources authority, in accordance with sections 260.005 to 260.125 may authorize the sale of bonds or participate in other appropriate financing arrangements to fund energy efficiency projects in state buildings. All energy efficiency projects for state buildings proposed for funding by the environmental improvement and energy resources authority pursuant to sections 8.800 to 8.825 and the anticipated amount of the bond issues or other financing arrangement to fund such projects shall be specifically approved by the joint committee on capital improvements oversight within forty-five days of notification to the committee. If the committee does not meet within forty-five days, the projects shall stand approved. 8.805. Energy savings in state building projects beyond financing obligation, how deposited--criteria to be established for projected savings--report due when 1. For the first three years of each completed energy efficiency project for state buildings, to the extent that there are energy savings beyond payment of the financing obligation, required reserves and other expenses associated with project financing, one-half of the energy savings shall be placed in the energy analyses account, created in section 8.807, and one-half shall revert to the general revenue fund. The division, in conjunction with the department, shall establish criteria for determining projected savings from energy efficiency projects in state buildings. The division, in conjunction with all state agencies, shall establish criteria for determining the actual savings which result from a specific energy efficiency project. 2. Beginning January 15, 1997, and annually thereafter, the office of administration and the department of natural resources shall file a joint report to the house committee on energy and environment, the senate committee on energy and environment, or their successor committees, and the governor on the identification of, planning for and implementation of energy efficiency projects in state buildings. 8.807. Energy analyses account established, purpose, administration, account not to lapse into general revenue 1. The state treasurer shall establish, maintain and administer a special trust fund to be administered by the department and to be known as the “Energy Analyses Account”, from which the department shall use moneys to carry out the energy analyses of state buildings pursuant to sections 8.815 and 8.817. 12096859.2 2. All moneys duly authorized and appropriated by the general assembly, all moneys received from federal funds, gifts, bequests, donations, any other moneys so designated, all moneys received pursuant to subsection 1 of section 8.805, and all interest earned on and income generated from moneys in the fund shall immediately be paid to and deposited in the energy analyses account. 3. The full balance, or any portion thereof, of the energy analyses account shall be available to be used by the department to carry out the activities required in sections 8.815 and 8.817, subject to appropriation. 4. Except as otherwise provided in sections 8.800 to 8.825, the provisions of section 33.080 requiring the transfer of unexpended funds to the ordinary revenue funds of the state, shall not apply to funds in the energy analyses account. 8.810. State building construction or substantial renovation--analysis required, content-division of design and construction not to let contracts without considering--projection of energy savings required, when 1. In addition to all other requirements imposed by law, the director of the division shall require, for construction of a state building or substantial renovation of an existing state building when major energy systems are involved, that a design professional submit an analysis which meets the design program's space and use requirements and reflects the lowest life cycle cost possible in light of existing commercially available technology. The analysis, using existing commercially available technology, shall include, but shall not be limited to, designs which use renewable energy sources, earth-sheltered construction, systems to recover and use waste heat, thermal storage heat pump systems, ambient thermal energy, district heating and cooling systems, devices to reduce water consumption, and plumbing systems to recover gray water for appropriate reuse. 2. The director of the division shall not let a contract after January 1, 1996, for construction of a state building or substantial renovation of an existing state building when major energy systems are involved before completing an evaluation of the design documents and construction documents based upon life cycle cost factors and the minimum energy efficiency standard established in subsection 1 of section 8.812. 3. Any design documents submitted to the division under this section shall, in addition to any other requirements under law, include a projection of the energy savings that will result from the design features that are employed in order to comply with the minimum energy efficiency standard established in subsection 1 of section 8.812. 8.812. Minimum energy efficiency standards for state buildings established by rule-compliance required--exemptions, when 12096859.2 1. By January 1, 2009, the department shall establish, by rule, a minimum energy efficiency standard for construction of a state building over five thousand square feet, substantial renovation of a state building over five thousand square feet when major energy systems are involved or a building over five thousand square feet which the state or state agency considers for acquisition or lease. Such standard shall be at least as stringent as the International Energy Conservation Code 2006, or the latest version thereof. 2. All design which is initiated on or after July 1, 2009, for construction of a state building over five thousand square feet or substantial renovation of a state building over five thousand square feet when major energy systems are involved or any building over five thousand square feet which the state or state agency considers for acquisition or lease after July 1, 2009, shall meet applicable provisions of the minimum energy efficiency standard. 3. The commissioner of the office of administration may exempt any building from the requirements of subsection 2 of this section: (1) When compliance with the minimum energy efficiency standard may compromise the safety of the building or any of its occupants; or (2) When the cost of compliance is expected to exceed the projected energy cost savings gained. 8.815. Voluntary working group of persons and interest groups with expertise in energy efficiency to be established, duties The department and the division shall establish a voluntary working group of persons and interest groups with expertise in energy efficiency, including, but not limited to, such persons as electrical engineers, mechanical engineers, builders, contractors, architects, landscape architects, interior designers, nonprofit organizations, persons affiliated with gas or electric utilities, and persons with expertise in solar and renewable energy forms. The voluntary working group shall advise the department on the development of the energy efficiency standard and shall assist the department in implementation of the standard by recommending, reviewing and coordinating education programs for designers, builders, businesses and other interested persons to facilitate incorporation of the standard into existing practices. 8.817. Analysis of all state buildings for energy efficiency, annual report due when--filed with whom The department shall analyze all state buildings for energy efficiency as funds become available, using criteria promulgated by the department by rule incorporating state-of-the-art technology. The results of the analyses shall be submitted by May fifteenth each year to the commissioner of administration, the governor and the general assembly until all state building analyses are completed. The results of the analysis of each state building shall be submitted to the state agency which owns or operates that state building as well. 12096859.2 8.820. Baseline for energy consumption and costs for all buildings owned or leased by state The division, in conjunction with the department, shall compile data on energy consumption and energy costs for all buildings owned or leased by the state or a state agency to establish a baseline for energy consumption and expenditures in buildings owned or leased by the state or a state agency using existing data to the maximum extent possible. 8.823. Division to recommend energy efficient projects The division shall recommend funding of energy efficiency projects in state buildings. The division shall use energy efficiency analyses provided by the department and review criteria established by the division with the purpose of achieving the maximum reduction in energy usage consistent with the constraints of prudent cost justification. 825. Department to provide energy efficient practices information to persons in construction or maintenance of state buildings The department shall make available energy efficiency practices information to be used by individuals involved in the design, construction, retrofitting and maintenance of public buildings and state buildings. Executive Order 09-18 WHEREAS, in recognition of the importance of energy efficiency and the use of clean, domestic energy resources, and of the importance of the leadership role of state government; and WHEREAS, the State of Missouri commits to managing operational costs and sustaining resources for future generations; and WHEREAS, the prudent utilization of energy conservation is of prime importance for the continued economic and environmental progress of the State of Missouri; and WHEREAS, the energy required for the operation of state government buildings is a significant portion of the energy consumption of Missouri State Government; and WHEREAS, the reduction of energy use in state government buildings will result in cost savings and the preservation of valuable natural resources; and WHEREAS, the State of Missouri has the duty and opportunity to moderate energy use. 12096859.2 NOW THEREFORE, I, JEREMIAH W. (JAY) NIXON, GOVERNOR OF THE STATE OF MISSOURI, by virtue of the authority vested in me by the Constitution and laws of the State of Missouri, do hereby order that all state agencies whose building management falls under the direction of the Office of Administration shall institute policies in consultation with the Division of Facilities Management, Design and Construction and the Department of Natural Resources’ Energy Center that will result in reductions of energy consumption by two percent per year for each of the next 10 years. All new state construction, buildings being constructed for lease by the state, and significant renovations and replacement of energy-using equipment shall be at least as stringent as the most recent energy efficiency standards of the International Energy Conservation Code (IECC). Exemptions shall be limited to those listed in the IECC and exemptions approved by the Director of Facilities Management, Design and Construction. Energy efficiency shall be made a priority in design, construction and operation of state government buildings. The Office of Administration shall develop and adopt a State Building Energy Efficiency Design Standard that establishes and prioritizes energy efficient design techniques specific to the needs and operations of state facilities. The State Building Energy Efficiency Design Standard shall incorporate as goals the energy recommendations and practices presented in the American Society of Heating, Refrigerating and Air-Conditioning Engineers’ (ASHRAE) Advanced Energy Design Guide for Small Office Buildings. The State Building Energy Efficiency Design Standard shall also be made available for adoption by other state agencies whose building management does not fall under the direction of the Office of Administration. IN WITNESS WHEREOF, I have hereunto set my hand and caused to be affixed the Great Seal of the State of Missouri, in the City of Jefferson, on this 23rd day of April, 2009. 12096859.2 Montana (back to top) 17-7-213. High-performance building standards (1) New buildings and major renovations constructed under 17-7-202 and new state-leased buildings must: (a) be built and operated as high-performance buildings; and (b) exceed the International Energy Conservation Code most recently adopted by the department of labor and industry by 20% or to the extent that is cost-effective over the life of the building or major renovation. (2) The department, in collaboration with the Montana university system and other state agencies, shall adopt high-performance building standards. In developing these standards, the department shall consider: (a) integrated design principles to optimize energy performance, enhance indoor environmental quality, and conserve natural resources; (b) cost-effectiveness, including productivity, deferred maintenance, and operational considerations; (c) environmental, economic, and social sustainability of materials and components; and (d) building functionality, durability, and maintenance. 12096859.2 Nevada (back to top) NRS 278.02521. Legislative intent 1. The Legislature recognizes the need for innovative strategies of planning and development that: (a) Address the anticipated needs and demands of continued urbanization and the corresponding need to protect environmentally sensitive areas; and (b) Will allow the development of less populous regions of this State if such regions: (1) Seek increased economic development; and (2) Have sufficient resources of land and water to accommodate development in a manner that is environmentally sound. 2. The Legislature further recognizes that innovative strategies of planning and development may be superior to conventional strategies of planning and development with respect to: (a) Protecting environmentally sensitive areas; (b) Maintaining the economic viability of agricultural and other predominantly rural land uses; and (c) Providing cost-effective public facilities and services. 3. It is the intent of the Legislature that each comprehensive regional policy plan adopted or amended pursuant to this chapter should set forth a process of planning which: (a) Allows for: (1) The efficient use of land within existing urban areas; and (2) The conversion of rural lands to other uses, if such other uses are appropriate and consistent with the provisions of this chapter and the master plan of each affected city and county. (b) Uses innovative and flexible strategies of planning and development and creative techniques of land use planning which promote sustainable growth, including, without limitation, establishment of new towns, the maintenance of open space and mixed-use development. 4. It is the further intent of the Legislature that when the governing body of a local government adopts a master plan or zoning regulation, the plan or regulation should promote a strategy of maximizing the use of existing facilities and services through redevelopment, interspersion of new housing and businesses in established neighborhoods and other mechanisms for urban revitalization. 5. It is the further intent of the Legislature that the construction of public facilities and the provision of services necessary to support development should be coordinated with activities of 12096859.2 development to ensure that demand for such facilities and services can be met at the time the demand is created. In carrying out this intent, local and regional governmental entities are encouraged to construct public facilities, including, without limitation, buildings that are certified in accordance with the Leadership in Energy and Environmental Design Green Building System or its equivalent, provide services or carry out development in phases. Public facilities constructed and services provided to accommodate new development should be consistent with plans for capital improvements prepared pursuant to NRS 278.0226. NRS 278.0208 Restrictions on use of system for obtaining solar or wind energy prohibited. 1. A governing body shall not adopt an ordinance, regulation or plan or take any other action that prohibits or unreasonably restricts or has the effect of prohibiting or unreasonably restricting the owner of real property from using a system for obtaining solar energy on his or her property. 2. Any covenant, restriction or condition contained in a deed, contract or other legal instrument which affects the transfer or sale of, or any other interest in, real property and which prohibits or unreasonably restricts or has the effect of prohibiting or unreasonably restricting the owner of the property from using a system for obtaining solar energy on his or her property is void and unenforceable. 3. For the purposes of this section, the following shall be deemed to be unreasonable restrictions: (a) The placing of a restriction or requirement on the use of a system for obtaining solar energy which decreases the efficiency or performance of the system by more than 10 percent of the amount that was originally specified for the system, as determined by the Director of the Office of Energy, and which does not allow for the use of an alternative system at a substantially comparable cost and with substantially comparable efficiency and performance. (b) The prohibition of a system for obtaining solar energy that uses components painted with black solar glazing. NRS 278.02081 Mandatory consideration of certain standards and guidelines if governing body establishes committee or task force on sustainable energy. If a governing body establishes a committee or task force on sustainable energy, the committee or task force shall consider: 1. Standards for the efficient use of water; 2. Standards for the efficient use of energy, including, without limitation, the use of sources of renewable energy; 3. Performance guidelines for new, remodeled and renovated buildings; and 12096859.2 4. Performance guidelines for retrofit projects, including, without limitation, energy consumption, use of potable water, use of water for landscaping purposes and solid waste disposal. NRS 396.514 Instruction in essentials of green building construction and design. Instruction within the System must be given in the essentials of green building construction and design to assist students in preparing for the Leadership in Energy and Environmental Design Professional Accreditation Exam or its equivalent. NRS 701.010 Legislative findings; state policy. 1. The Legislature finds that: (a) Energy is essential to the economy of the State and to the health, safety and welfare of the people of the State. (b) The State has a responsibility to encourage the maintenance of a reliable and economical supply of energy at a level which is consistent with the protection of environmental quality. (c) The State has a responsibility to encourage the utilization of a wide range of measures which reduce wasteful uses of energy resources. (d) The State and the public have an interest in encouraging public utilities to promote and take actions toward energy conservation. (e) Planning for energy conservation and future energy requirements should include consideration of state, regional and local plans for land use, urban expansion, transportation systems, environmental protection and economic development. (f) Government and private enterprise need to accelerate research and development of sources of renewable energy and to improve technology related to the research and development of existing sources of energy. (g) While government and private enterprise are seeking to accelerate research and development of sources of renewable energy, they must also prepare for and respond to the advent of competition within the electrical energy industry and are, therefore, encouraged to maximize the use of indigenous energy resources to the extent competitively and economically feasible. (h) Prevention of delays and interruptions in providing energy, protecting environmental values and conserving energy require expanded authority and capability within State Government. 12096859.2 2. It is the policy of this State to encourage participation with all levels of government and private enterprise in cooperative state, regional and national programs to assure adequate supplies of energy resources and markets for such energy resources. 3. It is the policy of this State to assign the responsibility for managing and conserving energy and its sources to agencies whose other programs are similar, to avoid duplication of effort in developing policies and programs for energy. NRS 701.020 Definitions. As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 701.030 to 701.090, inclusive, have the meanings ascribed to them in those sections. NRS 701.030 “Biomass” defined. “Biomass” means any organic matter that is available on a renewable basis, including, without limitation: 1. 2. 3. 4. 5. Agricultural crops and agricultural wastes and residues; Wood and wood wastes and residues; Animal wastes; Municipal wastes; and Aquatic plants. NRS 701.040 “Consumer’s Advocate” defined. “Consumer’s Advocate” means the Consumer’s Advocate of the Bureau of Consumer Protection in the Office of the Attorney General. NRS 701.050 “Director” defined. “Director” means the Director of the Office of Energy appointed pursuant to NRS 701.150. 701.055. “Energy development project” defined “Energy development project” means a project for the generation, transmission and development of energy located on public or private land. The term includes, without limitation: 1. A utility facility, as defined in NRS 704.860, constructed on private land; and 2. Electric generating plants and their associated facilities which use or will use renewable energy, as defined in NRS 704.7811, as their primary source of energy to generate electricity. 12096859.2 NRS 701.060 “Fuel cell” defined. “Fuel cell” means a device or contrivance that, through the chemical process of combining ions of hydrogen and oxygen, produces electricity and water. NRS 701.065 “Net metering system” defined. “Net metering system” has the meaning ascribed to it in NRS 704.771. 701.068. “Panel” defined “Panel” means the State and Local Government Panel on Renewable and Efficient Energy created by NRS 701.450. NRS 701.070 “Renewable energy” defined. 1. 2. “Renewable energy” means a source of energy that occurs naturally or is regenerated naturally, including, without limitation: (a) Biomass; (b) Fuel cells; (c) Geothermal energy; (d) Solar energy; (e) Waterpower; and (f) Wind. The term does not include coal, natural gas, oil, propane or any other fossil fuel, or nuclear energy. NRS 701.080 “Renewable energy generation project” defined. 1. “Renewable energy generation project” means a project involving an electric generating facility or system that uses renewable energy as its primary source of energy to generate electricity. 2. The term does not include a project involving an electric generating facility or system that uses nuclear energy, in whole or in part, to generate electricity. NRS 701.090 “Task Force” defined. “Task Force” means the New Energy Industry Task Force created by NRS 701.500. 12096859.2 NRS 701.150 Creation; appointment of Director; employment of personnel by Director; classification of Director and personnel; conflict of interest prohibited. 1. The Office of Energy is hereby created within the Office of the Governor. 2. The Governor shall appoint the Director. The Director: 3. (a) Is in the unclassified service of the State; and (b) Serves at the pleasure of the Governor. The Director may, within the limits of available money, employ: (a) Such persons in the unclassified service of the State as the Director determines to be necessary to carry out the duties of the Office of Energy pursuant to this chapter; and (b) Such additional personnel as may be required to carry out the duties of the Office of Energy pursuant to this chapter, who must be in the classified service of the State. 4. A person employed by the Director pursuant to this section must be qualified by training and experience to perform the duties for which the Director employs him. 5. The Director and the persons employed by the Director shall not have any conflict of interest relating to the performance of their duties pursuant to this chapter. 6. The provisions of NRS 223.085 do not apply to the Director or to any person employed by the Director pursuant to this section. General Powers and Duties NRS 701.160 Submission of report to Governor and Legislature. The Director shall prepare a report concerning the status of energy in the State of Nevada and submit it to: The Director shall prepare a report concerning the status of energy in the State of Nevada and submit it to: 1. The Governor on or before January 30 of each year; and 2. The Director of the Legislative Counsel Bureau for transmittal to the next regular session of the Legislature on or before January 30 of each odd-numbered year. NRS 701.170 Administration of gifts and grants; execution of research contracts and cooperative agreements; participation in federal programs; assistance to developers; 12096859.2 regulations; creation of nonprofit corporations; execution of other agreements. Director may: The The Director may: 1. Administer any gifts or grants which the Office of Energy is authorized to accept for the purposes of this chapter. 2. To the extent not inconsistent with the terms or conditions of a gift, grant or appropriation, expend money received from those gifts or grants or from legislative appropriations to contract with qualified persons or institutions for research in the production and efficient use of energy resources. 3. Enter into any cooperative agreement with any federal or state agency or political subdivision. 4. Adopt any regulations that the Director determines are necessary to carry out the duties of the Office of Energy pursuant to this chapter. 5. Within the limits of legislative appropriations and other money authorized for expenditure for such purposes, promote, participate in the operation of, and create or cause to be created, any nonprofit corporation, pursuant to chapter 82 of NRS, which the Director determines is necessary or convenient for the exercise of the powers and duties of the Office of Energy. The purposes, powers and operation of the corporation must be consistent with the purposes, powers and duties of the Office of Energy. 6. Within the limits of legislative appropriations and other money authorized for expenditure for such purposes, negotiate and execute agreements with public or private entities which are necessary to the exercise of the powers and duties of the Director or the Office of Energy. NRS 701.180 General duties concerning energy resources and energy conservation. The Director shall: 1. The Director shall: 1. Acquire and analyze information relating to energy and to the supply, demand and conservation of its sources, including, without limitation: (a) Information relating to the Solar Energy Systems Incentive Program created pursuant to NRS 701B.240 and the Wind Energy Systems Demonstration Program created pursuant to 701B.580, including, without limitation, information relating to: (1) The development of distributed generation systems in this State pursuant to participation in the Solar Energy Systems Incentive Program; 12096859.2 (2) The use of carbon-based energy in residential and commercial applications due to participation in the Programs; and (3) The average cost of generation on a kilowatt-hour basis for residential and commercial applications due to participation in the Programs; and (b) Information relating to any money distributed pursuant to NRS 702.270. 2. Review and evaluate information which identifies trends and permits forecasting of the energy available to the State. Such forecasts must include estimates on: (a) The level of demand for energy in the State for 5-, 10- and 20-year periods; (b) The amount of energy available to meet each level of demand; (c) The probable implications of the forecast on the demand and supply of energy; and (d) The sources of renewable energy and other alternative sources of energy which are available and their possible effects. 3. Study means of reducing wasteful, inefficient, unnecessary or uneconomical uses of energy and encourage the maximum utilization of existing sources of energy in the State. 4. Solicit and serve as the point of contact for grants and other money from the Federal Government, including, without limitation, any grants and other money available pursuant to any program administered by the United States Department of Energy, and other sources: (a) To promote energy projects that enhance the economic development of the State; (b) To promote the use of renewable energy in this State; (c) To promote the use of measures which conserve or reduce the demand for energy or which result in more efficient use of energy; (d) To develop a comprehensive program for retrofitting public buildings in this State with energy efficiency measures; and (e) If the Director determines that it is feasible and cost-effective, to enter into contracts with researchers from the Nevada System of Higher Education for the design of energy efficiency and retrofit projects to carry out the comprehensive program for retrofitting public buildings in this State developed pursuant to paragraph (d). 5. Coordinate the activities and programs of the Office of Energy with the activities and programs of the Consumer's Advocate and the Public Utilities Commission of Nevada, and with other federal, state and local officers and agencies that promote, fund, 12096859.2 administer or operate activities and programs related to the use of renewable energy and the use of measures which conserve or reduce the demand for energy or which result in more efficient use of energy. 6. If requested to make a determination pursuant to NRS 111.239 or 278.0208, make the determination within 30 days after receiving the request. If the Director needs additional information to make the determination, the Director may request the information from the person making the request for a determination. Within 15 days after receiving the additional information, the Director shall make a determination on the request. 7. Cooperate with the Department of Wildlife in carrying out the provisions of NRS 701.600 to 701.640, inclusive. 8. Upon request by a developer of an energy development project or a local government in a county in which an energy development project is proposed to be located, coordinate discussions, not otherwise required by any existing regulatory agency, with interested parties concerning any potential effect of the energy development project. 9. Carry out all other directives concerning energy that are prescribed by the Governor. NRS 701.190 Preparation of comprehensive state energy plan. 1. The Director shall prepare a comprehensive state energy plan which provides for the promotion of: (a) Energy projects that enhance the economic development of the State; (b) The use of renewable energy; (c) The use of measures which conserve or reduce the demand for energy or which result in more efficient use of energy; and (d) A program for the safe disposal and recycling of electronic waste, electrical equipment and other waste, including, without limitation, a program for the safe disposal and recycling of compact fluorescent light bulbs. 2. The comprehensive state energy plan must include provisions for: (a) The assessment of the potential benefits of proposed energy projects on the economic development of the State. (b) The education of persons and entities concerning renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy. (c) The creation of incentives for investment in and the use of renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy. (d) Grants and other money to establish programs and conduct activities which promote: (1) Energy projects that enhance the economic development of the State; (2) The use of renewable energy; 12096859.2 (3) The use of measures which conserve or reduce the demand for energy or which result in more efficient use of energy; and (4) The recycling of electronic waste, electrical equipment and other waste, including, without limitation, a program for the safe disposal and recycling of compact fluorescent light bulbs. (e) The development or incorporation by reference of model and uniform building and energy codes and standards which are written in language that is easy to understand and which include performance standards for conservation of energy and efficient use of energy. (f) The promotion of the development in this State of a curriculum for a program of renewable energy education and recycling education in kindergarten through grade 12. (g) The promotion of the development by institutions of higher education in this State of research and educational programs relating to renewable energy. (h) Oversight and accountability with respect to all programs and activities described in this subsection. (i) Any other matter that the Director determines to be relevant to the issues of energy resources, energy use, energy conservation and energy efficiency. NRS 701.200 Recommendation of standards for energy conservation and for carrying out comprehensive state energy plan. 1. The Director may recommend to state agencies, local governments and appropriate private persons and entities, standards for conservation of energy and its sources and for carrying out the comprehensive state energy plan. 2. In recommending such standards, the Director shall consider the usage of energy and its sources in the State and the methods available for conservation of those sources. NRS 701.210 Preparation of petroleum allocation and rationing plans; administration of federal programs involving fuel allocation. The Director shall: 1. Prepare, subject to the approval of the Governor, petroleum allocation and rationing plans for possible energy contingencies. The plans shall be carried out only by executive order of the Governor. 2. Carry out and administer any federal programs which authorize state participation in fuel allocation programs. Programs and Regulations Relating to Energy Usage NRS 701.215 Preparation of state energy reduction plan for certain state-owned buildings. 12096859.2 1. The Director shall prepare a state energy reduction plan which requires state agencies, departments and other entities in the Executive Branch to reduce grid-based energy purchases for state-owned buildings by 20 percent by 2015. 2. In accordance with, and out of any money received pursuant to, the American Recovery and Reinvestment Act of 2009, Public Law 111-51, the Interim Finance Committee may determine an amount of money to be used by the Director to fulfill the requirements of subsection 1. 3. The Director: (a) Shall use any amount of money provided pursuant to subsection 2 to fulfill the requirements of subsection 1; (b) May fulfill the requirements of subsection 1 by contracting with one or more qualified independent consultants; and (c) Shall biannually file reports with the Legislative Commission that: (1) Indicate the general progress of energy reduction in state buildings; and (2) Identify any state agency that fails to cooperate with the Director in the design or implementation of the plan prepared pursuant to subsection 1. 701.218. Program to track use of energy in buildings owned by State or occupied by state agency; reimbursement by state agencies of certain costs incurred by Office of Energy in carrying out program 1. The Office of Energy shall establish a program to track the use of energy in buildings owned by the State and in other buildings which are occupied by a state agency. 2. The program established pursuant to this section must: (a) Record utility bills for each building for each month and preserve those records indefinitely; (b) Allow for the comparison of utility bills for a building from month to month and year to year; (c) Allow for the comparison of utility bills between buildings, including comparisons between similar buildings or types of buildings; (d) Allow for adjustments to the information based upon variations in weather conditions, the length of the billing period and other changes in relevant conditions; (e) Facilitate identification of errors in utility bills and meter readings; (f) Allow for the projection of costs for energy for a building; and (g) Identify energy and cost savings associated with efforts to conserve energy. 12096859.2 3. The Office of Energy may apply for any available grants and accept any gifts, grants or donations to assist in establishing and carrying out the program. 4. In accordance with, and out of any money received pursuant to, the American Recovery and Reinvestment Act of 2009, Public Law 111-5, the Interim Finance Committee may determine an amount of money to be used by the Office of Energy to fulfill the requirements of subsection 1. 5. To the extent that there is not sufficient money available for the support of the program, each state agency that occupies a building in which the use of energy is tracked pursuant to the program shall reimburse the Office of Energy for the agency's proportionate share of the unfunded portion of the cost of the program. The reimbursement must be based upon the energy consumption of the respective state agencies that occupy buildings in which the use of energy is tracked. NRS 701.220 Adoption of regulations for energy conservation in buildings; exemptions; applicability and enforcement; procedures for adoption. 1. The Director shall adopt regulations for the conservation of energy in buildings, including manufactured homes. Such regulations must include the adoption of the most recent version of the International Energy Conservation Code, issued by the International Code Council, and any amendments to the Code that will not materially lessen the effective energy savings requirements of the Code and are deemed necessary to support effective compliance and enforcement of the Code, and must establish the minimum standards for: (a) The construction of floors, walls, ceilings and roofs; (b) The equipment and systems for heating, ventilation and air-conditioning; (c) Electrical equipment and systems; (d) Insulation; and (e) Other factors which affect the use of energy in a building. The regulations must provide for the adoption of the most recent version of the International Energy Conservation Code, and any amendments thereto, every third year. 2. The Director may exempt a building from a standard if he determines that application of the standard to the building would not accomplish the purpose of the regulations. 3. The regulations must authorize allowances in design and construction for sources of renewable energy used to supply all or a part of the energy required in a building. 12096859.2 4. 5. The standards adopted by the Director are the minimum standards for the conservation of energy and energy efficiency in buildings in this State. The governing body of a local government that is authorized by law to adopt and enforce a building code: (a) Except as otherwise provided in paragraph (b), shall incorporate the standards adopted by the Director in its building code; (b) May adopt higher or more stringent standards and must report any such higher or more stringent standards, along with supporting documents, to the Director; and (c) Shall enforce the standards adopted. The Director shall solicit comments regarding the adoption of regulations pursuant to this section from: (a) Persons in the business of constructing and selling homes; (b) Contractors; (c) Public utilities; (d) Local building officials; and (e) The general public, before adopting any regulations. The Director must conduct at least three hearings in different locations in the State, after giving 30 days’ notice of each hearing, before he may adopt any regulations pursuant to this section. NRS 701.230. Prohibition against inclusion in buildings of system using electric resistance for heating spaces; applicability; exceptions; enforcement by local governments 1. In a county whose population is 100,000 or more, a building whose construction, or retrofit that replaces the heating source of the premises, exclusive of maintenance, began on or after October 1, 1983, must not contain a system using electric resistance for heating spaces unless: (a) The system is merely supplementary to another means of heating; (b) Under the particular circumstances, no other primary means of heating the spaces is possible other than electric resistance; (c) The system is a hydronic radiant heating system or a system that uses ground-source heat pumps or water-source heat pumps; or (d) The system using electric resistance for heating spaces uses electricity produced from renewable energy systems that exist on the owner's property, including, without limitation, net metering systems. 12096859.2 2. The owner of a property who seeks to use a system using electric resistance for heating spaces must submit an application for an exception pursuant to subsection 1 to the governing body of the applicable local government before beginning construction or retrofitting of the system. 3. The governing body of the local government: (a) Shall enforce subsection 1; (b) Shall determine whether the property owner is eligible for an exception pursuant to subsection 1 within 30 days after receiving a complete application from the owner of the property; and (c) Shall forward its decision to the owner of the property and to the Director. 4. This section does not prohibit the use of incandescent or fluorescent lighting. 5. As used in this section, “electric resistance” means passing an electric current through a resistance, coil, wire or other obstacle which impedes electricity and causes it to produce heat. NRS 701.240 Program to distribute money to acquire, install or improve net metering systems. 1. The Director shall develop a program to distribute money, within the limits of legislative appropriation, in the form of grants, incentives or rebates to persons to pay or defray, in whole or in part, the costs for those persons to acquire, install or improve net metering systems, if the Director determines that the distribution of money to a person for that purpose will encourage, promote or stimulate: (a) The development or use of sources of renewable energy in the State or the development of industries or technologies that use sources of renewable energy in the State; (b) The conservation of energy in the State, the diversification of the types of energy used in the State or any reduction in the dependence of the State on foreign sources of energy; (c) The protection of the natural resources of the State or the improvement of the environment; (d) The enhancement of existing utility facilities or any other infrastructure in the State or the development of new utility facilities or any other infrastructure in the State; or (e) The investment of capital or the expansion of business opportunities in the State or any growth in the economy of the State. 12096859.2 2. The Director may adopt any regulations that are necessary to carry out the provisions of this section. 3. The Director shall not distribute money to any person pursuant to this section unless: 4. (a) The person complies with any requirements that the Director adopts by regulation; and (b) The distribution of the money is consistent with one or more of the public purposes set forth in paragraphs (a) to (e), inclusive, of subsection 1. As used in this section, “person” includes, without limitation, any state or local governmental agency or entity. NRS 701.260 Prohibition against selling certain types of lights; regulations establishing energy efficiency standards for certain types of lights. 1. Between January 1, 2012, and December 31, 2015, inclusive, no general purpose light may be sold in this State unless it produces at least 25 lumens per watt of electricity consumed. 2. On and after January 1, 2016, no general purpose light may be sold in this State unless it meets or exceeds the minimum standard of energy efficiency established by the Director pursuant to subsection 3 for lumens per watt of electricity consumed. 3. The Director shall adopt regulations to carry out the provisions of this section. The regulations must, without limitation: 4. (a) Establish a minimum standard of energy efficiency for lumens per watt of electricity consumed that must be produced by general purpose lights sold in this State on and after January 1, 2016. The minimum standard of energy efficiency established by the Director must exceed 25 lumens per watt of electricity consumed. (b) Attempt to minimize the overall cost to consumers for general purpose lighting, considering the needs of consumers relating to lighting, technological feasibility and anticipated product availability and performance. As used in this section, “general purpose light” means lamps, bulbs, tubes or other devices that provide functional illumination for indoor or outdoor use. The term does not include “specialty lighting” or “lighting necessary to provide illumination for persons with special needs,” as defined by the Director by regulation. 12096859.2 NRS 701.370. Trust Account for Renewable Energy and Energy Conservation: Creation; administration; expenditures 1. The Trust Account for Renewable Energy and Energy Conservation is hereby created in the State General Fund. 2. The Director shall administer the Account. As administrator of the Account, the Director: (a) Shall maintain the financial records of the Account; (b) Shall invest the money in the Account as the money in other state accounts is invested; (c) Shall manage any subaccount associated with the Account; (d) Shall maintain any instruments that evidence investments made with the money in the Account; (e) May contract with vendors for any good or service that is necessary to carry out the provisions of this section; and (f) May perform any other duties that are necessary to administer the Account. 3. The interest and income earned on the money in the Account must, after deducting any applicable charges, be credited to the Account. All claims against the Account must be paid as other claims against the State are paid. 4. Not more than 2 percent of the money in the Account may be used to pay the costs of administering the Account. 5. The money in the Account remains in the Account and does not revert to the State General Fund at the end of any fiscal year. 6. All money that is deposited or paid into the Account may only be expended pursuant to an allocation made by the Director. Money expended from the Account must not be used to supplant existing methods of funding that are available to public agencies. NRS 701.380. Coordination of activities and programs; expenditure of money from Trust Account for Renewable Energy and Energy Conservation; other powers; preparation of annual report 1. The Director shall: (a) Coordinate the activities and programs of the Office of Energy with the activities and programs of the Consumer's Advocate and the Public Utilities Commission of Nevada, and with other federal, state and local officers and agencies that promote, fund, 12096859.2 administer or operate activities and programs related to the use of renewable energy and the use of measures which conserve or reduce the demand for energy or which result in more efficient use of energy. (b) Spend the money in the Trust Account for Renewable Energy and Energy Conservation to: (1) Educate persons and entities concerning renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy. (2) Create incentives for investment in and the use of renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy. (3) Distribute grants and other money to establish programs and projects which incorporate the use of renewable energy and measures which conserve or reduce the demand for energy or which result in more efficient use of energy. (4) Conduct feasibility studies, including, without limitation, any feasibility studies concerning the establishment or expansion of any grants, incentives, rebates or other programs to enable or assist persons to reduce the cost of purchasing distributed generation systems and on-site generation systems and net metering systems that use renewable energy. (c) Take any other actions that the Director deems necessary to carry out the duties of the Office of Energy, including, without limitation, contracting with consultants, if necessary, for the purposes of program design or to assist the Director in carrying out the duties of the Office. 2. The Director shall prepare an annual report concerning the activities and programs of the Office of Energy and submit the report to the Legislative Commission and the Governor on or before January 30 of each year. The annual report must include, without limitation: (a) A description of the objectives of each activity and program; (b) An analysis of the effectiveness and efficiency of each activity and program in meeting the objectives of the activity or program; (c) The amount of money distributed for each activity and program from the Trust Account for Renewable Energy and Energy Conservation and a detailed description of the use of that money for each activity and program; (d) An analysis of the coordination between the Office of Energy and other officers and agencies; and 12096859.2 (e) Any changes planned for each activity and program. 3. As used in this section: (a) “Distributed generation system” means a facility or system for the generation of electricity that is in close proximity to the place where the electricity is consumed: (1) That uses renewable energy as defined in NRS 704.7811 to generate electricity; (2) That is located on the property of a customer of an electric utility; (3) That is connected on the customer's side of the electricity meter; (4) That provides electricity primarily to offset customer load on that property; and (5) The excess generation from which is periodically exported to the grid in accordance with the provisions governing net metering systems used by customergenerators pursuant to NRS 704.766 to 704.775, inclusive. (b) “Electric utility” has the meaning ascribed to it in NRS 704.7571. 701.390. Dissemination of information; development of resources and projects; promotion of research and studies; cooperation and coordination with other officers and agencies The Director shall: 1. Utilize all available public and private means to: (a) Provide information to the public about issues relating to energy and to explain how conservation of energy and its sources may be accomplished; and (b) Work with educational and research institutions, trade associations and any other public and private entities in this State to create a database for information on technological development, financing opportunities and federal and state policy developments regarding renewable energy and energy efficiency. 2. Encourage the development of any sources of renewable energy and any energy projects which will benefit the State and any measures which conserve or reduce the demand for energy or which result in more efficient use of energy, including, without limitation, by: (a) Identifying appropriate areas in this State for the development of sources of renewable energy, based on: (1) Assessments of solar, wind and geothermal potential; 12096859.2 (2) Evaluations of natural resource constraints; (3) Current electric transmission infrastructure and capacity; and (4) The feasibility of the construction of new electric transmission lines; (b) Working with renewable energy developers to locate their projects within appropriate areas of this State, including, without limitation, assisting the developers to interact with the Bureau of Land Management, the Department of Defense and other federal agencies in: (1) Expediting land leases; (2) Resolving site issues; and (3) Receiving permits for projects on public lands within the appropriate areas of this State; (c) Coordinating the planning of renewable energy projects in appropriate areas of this State to establish a mix of solar, wind and geothermal renewable energy systems that create a reliable source of energy and maximize the use of current or future transmission lines and infrastructure; and (d) Developing proposals for the financing of future electric transmission projects for renewable energy if no such financing proposals exist. 3. Review jointly with the Nevada System of Higher Education the policies of this State relating to the research and development of the geothermal energy resources in this State and make recommendations to the appropriate state and federal agencies concerning methods for the development of those resources. 4. If the Director determines that it is feasible and cost-effective, enter into contracts with researchers from the Nevada System of Higher Education: (a) To conduct environmental studies relating to the identification of appropriate areas in this State for the development of renewable energy resources, including, without limitation, hydrologic studies, solar resource mapping studies and wind power modeling studies; (b) For the development of technologies that will facilitate the energy efficiency of the electricity grid for this State, including, without limitation, meters that facilitate energy efficiency for consumers of electricity; and (c) For the design of energy efficiency and retrofit projects to carry out the comprehensive program for retrofitting public buildings in this State with energy efficiency measures. 12096859.2 5. Carry out all other directives concerning energy that are prescribed by the Legislature. NRS 701.400. Participation in federal programs; assistance to developers of renewable energy systems The Director may: 1. Participate in any program established by the Federal Government relating to sources of energy and adopt regulations to carry out such a program. 2. Assist developers of renewable energy systems in preparing and making requests to obtain money for development through the issuance of industrial development revenue bonds pursuant to NRS 349.400 to 349.670, inclusive. NRS 701A.100 Adoption of Green Building Rating System; requirements and limitations. 1. The Director of the Office of Energy shall adopt a Green Building Rating System for the purposes of determining the eligibility of a building or other structure for a tax abatement pursuant to NRS 701A.110. 2. The Green Building Rating System must include standards and ratings equivalent to the standards and ratings provided pursuant to the Leadership in Energy and Environmental Design Green Building Rating System or an equivalent rating system, except that the standards adopted by the Director: (a) Except as otherwise provided in paragraphs (b) and (c), must not include: (1) Any standard that has not been included in the Leadership in Energy and Environmental Design Green Building Rating System or the equivalent rating system for at least 2 years; or (2) Standards for homes; (b) Must provide reasonable exceptions based on the size of the area occupied by the building or other structure; and (c) Must require a building or other structure to obtain: (1) At least 5 points in the Optimize Energy Performance credit, or its equivalent, to meet the equivalent of the silver level; (2) At least 7 points in the Optimize Energy Performance credit, or its equivalent, to meet the equivalent of the gold level; and (3) At least 11 points in the Optimize Energy Performance credit, or its equivalent, to meet the equivalent of the platinum level. 3. As used in this section, “home” means a building or other structure for which the principal use is as a residential dwelling for not more than four families. . 12096859.2 NRS 701A.110 Partial abatement of certain property taxes for buildings or structures that meet certain standards under Green Building Rating System; requirements and limitations; regulations. 1. Except as otherwise provided in this section, the Director, in consultation with the Office of Economic Development, shall grant a partial abatement from the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, on a building or other structure that is determined to meet the equivalent of the silver level or higher by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to NRS 701A.100, if: (a) No funding is provided by any governmental entity in this State for the acquisition, design, construction or renovation of the building or other structure or for the acquisition of any land therefor. For the purposes of this paragraph: (1) Private activity bonds must not be considered funding provided by a governmental entity. (2) The term “private activity bond” has the meaning ascribed to it in 26 U.S.C. § 141. (b) The owner of the property: (1) Submits an application for the partial abatement to the Director. If such an application is submitted for a project that has not been completed on the date of that submission and there is a significant change in the scope of the project after that date, the application must be amended to include the change or changes. (2) Except as otherwise provided in this subparagraph, provides to the Director, within 48 months after applying for the partial abatement, proof that the building or other structure meets the equivalent of the silver level or higher, as determined by an independent contractor authorized to make that determination in accordance with the Green Building Rating System adopted by the Director pursuant to NRS 701A.100. The Director may, for good cause shown, extend the period for providing such proof. (3) Files a copy of each application and amended application submitted to the Director pursuant to subparagraph (1) with the: (I) Chief of the Budget Division of the Department of Administration; (II) Department of Taxation; (III) County assessor; (IV) County treasurer; (V) Office of Economic Development; (VI) Board of county commissioners; and (VII) City manager and city council, if any. (c) The abatement is consistent with the State Plan for Economic Development developed by the Executive Director of the Office of Economic Development pursuant to subsection 2 of NRS 231.053. 2. The Director shall not approve an application for a partial abatement of the taxes imposed pursuant to chapter 361 of NRS submitted pursuant to this section by the owner of the 12096859.2 property unless the application is approved or deemed approved by the board of county commissioners pursuant to this subsection. The board of county commissioners of a county must provide notice to the Director that the board intends to consider an application and, if such notice is given, must approve or deny the application not later than 30 days after the board receives a copy of the application. The board of county commissioners: (a) Shall, in considering an application pursuant to this subsection, make a recommendation to the Director regarding the application; (b) May, in considering an application pursuant to this subsection, deny an application only if the board of county commissioners determines, based on relevant information, that: (1) The projected cost of the services that the local government is required to provide to the building or other structure for which the abatement is received will exceed the amount of tax revenue that the local government is projected to receive as a result of the abatement; or (2) The projected financial benefits that will result to the county from any employment resulting from the use of the building or other structure and from capital investments by the owner of the building or other structure in the county will not exceed the projected loss of tax revenue that will result from the abatement; and (c) May, without regard to whether the board has provided notice to the Director of its intent to consider the application, make a recommendation to the Director regarding the application. If the board of county commissioners does not approve or deny the application pursuant to this subsection within 30 days after the board receives a copy of the application, the application shall be deemed approved. 3. As soon as practicable after the Director receives the application and proof required by subsection 1, the Director, in consultation with the Office of Economic Development, shall determine whether the building or other structure is eligible for the abatement and, if so, forward a certificate of eligibility for the abatement to the: (a) Department of Taxation; (b) County assessor; (c) County treasurer; and (d) Office of Economic Development. 4. The Director may, with the assistance of the Chief of the Budget Division and the Department of Taxation, publish a fiscal note that indicates an estimate of the fiscal impact of the partial abatement on the State and on each affected local government. If the Director publishes a fiscal note that estimates the fiscal impact of the partial abatement on local government, the Director shall forward a copy of the fiscal note to each affected local government. As soon as practicable after receiving a copy of a certificate of eligibility pursuant to subsection 3, the Department of Taxation shall forward a copy of the certificate to each affected local government. 5. The partial abatement for: (a) A building or other structure must, except as otherwise provided in paragraph (b), be for a duration of not more than 10 years and in an annual amount that equals, for a building or other structure that meets the equivalent of: 12096859.2 (1) The silver level, 25 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be owed for the building or other structure, excluding the associated land; (2) The gold level, 30 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be owed for the building or other structure, excluding the associated land; or (3) The platinum level, 35 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be owed for the building or other structure, excluding the associated land. (b) A building or other structure that qualifies for an abatement under the Leadership in Energy and Environmental Design “Existing Buildings: Operations and Maintenance” rating system, or its equivalent, must be for a duration of not more than 5 years and in an annual amount that equals, except as otherwise provided in subsection 6, for a building or other structure that meets the equivalent of: (1) The silver level, 25 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be owed for the building or other structure, excluding the associated land; (2) The gold level, 30 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be owed for the building or other structure, excluding the associated land; or (3) The platinum level, 35 percent of the portion of the taxes imposed pursuant to chapter 361 of NRS, other than any taxes imposed for public education, that would otherwise be owed for the building or other structure, excluding the associated land. 6. The Director shall not grant a partial abatement of more than $100,000 in any year for a building or other structure that qualifies for an abatement pursuant to paragraph (b) of subsection 5. 7. A partial abatement granted pursuant to this section: (a) Does not apply during any period in which the owner of the building or other structure is receiving another abatement or exemption pursuant to this chapter or NRS 361.045 to 361.159, inclusive, from the taxes imposed pursuant to chapter 361 of NRS. (b) Terminates upon any determination by the Director that the building or other structure has ceased to meet the equivalent of the silver level or higher. The Director shall provide notice and a reasonable opportunity to cure any noncompliance issues before making a determination that the building or other structure has ceased to meet that standard. The Director shall immediately provide notice of each determination of termination to the: (1) Department of Taxation, who shall immediately notify each affected local government of the determination; (2) County assessor; (3) County treasurer; and 12096859.2 (4) Office of Economic Development. 8. If a partial abatement terminates pursuant to paragraph (b) of subsection 7, the owner of the property to which the partial abatement applied shall repay to the county treasurer the amount of the exemption that was allowed pursuant to this section before the date of that termination. The owner shall, in addition to the amount of the exemption required to be paid pursuant to this subsection, pay interest on the amount due at the rate most recently established pursuant to NRS 99.040 for each month, or portion thereof, from the last day of the month following the period for which the payment would have been made had the partial abatement not been approved until the date of payment of the tax. 9. The Director, in consultation with the Office of Economic Development, shall adopt regulations: (a) Establishing the qualifications and methods to determine eligibility for and the duration of the abatement; (b) Prescribing such forms as will ensure that all information and other documentation necessary to make an appropriate determination is filed with the Director; and (c) Prescribing the criteria for determining when there is a significant change in the scope of a project for the purposes of subparagraph (1) of paragraph (b) of subsection 1, and the Department of Taxation shall adopt such additional regulations as it determines to be appropriate to carry out the provisions of this section. 10. The Director shall: (a) Cooperate with the Office of Economic Development in carrying out the provisions of this section; and (b) Submit to the Office of Economic Development an annual report, at such a time and containing such information as the Office may require, regarding the partial abatements granted pursuant to this section. 11. The Director may charge and collect a fee from each applicant who submits an application for a partial abatement pursuant to this section. The amount of the fee must not exceed the actual cost to the Director for processing the application and evaluating the proof submitted by the applicant pursuant to subsection 1 and making the determination concerning eligibility for the partial abatement required by subsection 3. 12. As used in this section: (a) “Building or other structure” does not include any building or other structure for which the principal use is as a residential dwelling for not more than four families. (b) “Director” means the Director of the Office of Energy appointed pursuant to NRS 701.150. (c) “Taxes imposed for public education” means: (1) Any ad valorem tax authorized or required by chapter 387 of NRS; (2) Any ad valorem tax authorized or required by chapter 350 of NRS for the obligations of a school district, including, without limitation, any ad valorem tax necessary to carry out the provisions of subsection 5 of NRS 350. 020; and (3) Any other ad valorem tax for which the proceeds thereof are dedicated to the public education of pupils in kindergarten through grade 12. 12096859.2 BUSINESSES, FACILITIES, SYSTEMS AND DEVICES NRS 701A.200 Exemption from certain property taxes for qualified energy systems; requirements and limitations; regulations. 1. For purposes of the assessment of property pursuant to chapter 361 of NRS: (a) Except as otherwise provided in paragraph (b), a qualified system is exempt from taxation. (b) A qualified system is not exempt from taxation: (1) During any period in which the qualified system is subject to another abatement or exemption pursuant to this chapter or NRS 361.045 to 361.159, inclusive, from the taxes imposed pursuant to chapter 361 of NRS; or (2) If the system is constructed after July 1, 2009, and is part of a facility which is eligible for a partial abatement of taxes pursuant to NRS 701A.360. 2. The Nevada Tax Commission shall adopt such regulations as it determines to be necessary for the administration of this section. 3. As used in this section, “qualified system” means any system, method, construction, installation, machinery, equipment, device or appliance which is designed, constructed or installed in or adjacent to one or more buildings or an irrigation system in an agricultural operation to heat or cool the building or buildings or water used in the building or buildings, or to provide electricity used in the building or buildings or irrigation system regardless of whether the owner of the system, building or buildings or irrigation system participates in net metering pursuant to NRS 704.766 to 704.775, inclusive, by using: (a) Energy from the wind or from solar devices; (b) Geothermal resources; (c) Energy derived from conversion of solid wastes; or (d) Waterpower, which conforms to standards established by regulation of the Nevada Tax Commission. NRS 701A.210 Partial abatement of certain property taxes for businesses and facilities using recycled material; requirements and limitations. 1. Except as otherwise provided in this section, if a: (a) Business that engages in the primary trade of preparing, fabricating, manufacturing or otherwise processing raw material or an intermediate product through a process in which at least 50 percent of the material or product is recycled on-site; or (b) Business that includes as a primary component a facility for the generation of electricity from recycled material, is found by the Office of Economic Development to have as a primary purpose the conservation of energy or the substitution of other sources of energy for fossil sources of energy and obtains certification from the Office of Economic Development pursuant to NRS 360.750, the Office may, if the business additionally satisfies the requirements set forth in 12096859.2 subsection 2 of NRS 361. 0687, grant to the business a partial abatement from the taxes imposed on real property pursuant to chapter 361 of NRS. 2. If a partial abatement from the taxes imposed on real property pursuant to chapter 361 of NRS is approved by the Office of Economic Development pursuant to NRS 360.750 for a business described in subsection 1: (a) (b) The partial abatement must: (1) Be for a duration of at least 1 year but not more than 10 years; (2) Not exceed 50 percent of the taxes on real property payable by the business each year; and (3) Be administered and carried out in the manner set forth in NRS 360.750. The Executive Director of the Office of Economic Development shall notify the county assessor of the county in which the business is located of the approval of the partial abatement, including, without limitation, the duration and percentage of the partial abatement that the Office granted. The Executive Director shall, on or before April 15 of each year, advise the county assessor of each county in which a business qualifies for a partial abatement during the current fiscal year as to whether the business is still eligible for the partial abatement in the next succeeding fiscal year. 3. The partial abatement provided in this section applies only to the business for which certification was granted pursuant to NRS 360.750 and the property used in connection with that business. The exemption does not apply to property in this State that is not related to the business for which the certification was granted pursuant to NRS 360.750 or to property in existence and subject to taxation before the certification was granted. 4. As used in this section, “facility for the generation of electricity from recycled material” means a facility for the generation of electricity that uses recycled material as its primary fuel, including material from: (a) Industrial or domestic waste, other than hazardous waste, even though it includes a product made from oil, natural gas or coal, such as plastics, asphalt shingles or tires; (b) Agricultural crops, whether terrestrial or aquatic, and agricultural waste, such as manure and residue from crops; and (c) Municipal waste, such as sewage and sludge. The term includes all the equipment in the facility used to process and convert into electricity the energy derived from a recycled material fuel. 12096859.2 New Jersey (back to top) 52:27D-130.6 Green building manual, preparation, availability. The Commissioner of Community Affairs is authorized to prepare, in consultation with other State agencies, and make available to the public, a green building manual for the purpose of ensuring that standards are available for those owners and builders who participate in any program that encourages or requires the construction of green buildings. The manual shall include federal guidelines and regulations for energy efficiency in building construction. The manual shall cover residential as well as commercial buildings. For the purposes of this act, “green building” means those building construction practices that significantly reduce or eliminate the negative impact of buildings on the environment and their occupants and may consider, but need not be limited to five broad areas: sustainable site planning; safeguarding water and water efficiency; energy efficiency and renewable energy; conservation of materials and resources; and indoor environmental quality. 52:32-5.3. Definitions As used in this act:1 “High performance green building” means a building that is designed and constructed in a manner that achieves at least: a. a silver rating according to the Leadership in Energy and Environmental Design Green Building Rating System as adopted by the United States Green Building Council; b. a two globe rating according to the Green Globes Program as adopted by the Green Building Initiative; or c. a comparable numeric rating according to a nationally recognized, accepted, and appropriate numeric sustainable development rating system, guideline, or standard as the Commissioner of Community Affairs, in consultation with the Commissioner of Environmental Protection, the Director of Energy Savings established pursuant to Executive Order No.11 of 2006, and the Board of Public Utilities, may designate by regulation. A “high performance green building” shall not mean any free-standing parking facility, multiple use maintenance facility or storage facility. “State governmental entity” means the Executive, Legislative and Judicial branches of the State government, any agency or instrumentality of the State, including any board, bureau, commission, corporation, department, or division, any independent State authority, and any State institution of higher education. A county, municipality, or school district, or any agency or instrumentality thereof, shall not be deemed a State governmental entity. 12096859.2 52:32-5.4. New construction of buildings used by the State to meet standards for a high performance green building Any new building having at least 15,000 square feet in total floor area that is to be constructed for the sole use of a State governmental entity after the effective date of this act shall be designed and managed to meet standards for a high performance green building. The Director of the Division of Property Management and Construction in the Department of the Treasury, in cooperation with the New Jersey Building Authority where appropriate, shall enforce the provisions of this act. All plans, specifications and bid proposal documents for any building to which the provisions of this section apply shall identify all the requirements for meeting the appropriate certification level standard as provided in subsection a., b. or c. of section 1 of this act, as appropriate. The requirements of this act shall not apply to any building for which a request for proposal for entering into a contract to design the building has been issued prior to the effective date of this act. Executive Order #24 Governor James E. McGreevey WHEREAS, the Legislature in July 2000 enacted the "Educational Facilities Construction and Financing Act," P.L.2000, c.72 ("the Act") to address the inadequacies in the quality, utility and safety of educational facilities throughout the State of New Jersey and to meet the constitutional requirement for a thorough and efficient system of free public schools; and WHEREAS, the Act commits significant State and local resources to address the compelling, urgent need to construct new school facilities and rehabilitate existing school facilities; and WHEREAS, the Act provides that the New Jersey Economic Development Authority ("NJEDA") is responsible for funding and undertaking the repair, renovation and construction of all the school facilities projects determined by the Commissioner of the Department of Education ("DOE") to meet the school facilities efficiency standards in the Abbott Districts and for undertaking construction of school facilities projects in the districts receiving over 55% in State aid for education and the "Level II" monitoring districts; and WHEREAS, the Act also provides for State funding of a significant portion of the costs of school facilities projects in the districts receiving less than 55% State aid for education through grants administered by the NJEDA; and WHEREAS, in the two years since adoption of the Act, the NJEDA has made progress in implementing the school construction program, through development of an infrastructure, policies, procedures and regulations, and the hiring of the staff and consultants required to implement a program of this complexity and magnitude; and 12096859.2 WHEREAS, many projects have already been undertaken and completed throughout the State largely in the nature of repair of "health and safety conditions" but most new construction, renovation and addition projects remain to be done; and WHEREAS, the State now enjoys a unique and timely opportunity to design and construct schools for the 21st century which will be adequate to serve the needs of children for years to come, will incorporate long life cycles and reduce operating costs; and WHEREAS, the primary purpose of these new and renovated school facilities is to serve as places of learning for children, and as such should incorporate "high performance" design features that accommodate and enhance the learning process; and WHEREAS, the Legislature provided in Section 2(d) of the Act that "design of school facilities should incorporate maximum operating efficiencies and new technologies to advance the energy efficiency of school facilities and the efficiency of other school building systems;" and WHEREAS, school facilities are public buildings, and should be designed in a manner to provide maximum access and benefit to the residents of the communities where they are situated, in order to serve as centers of community; and WHEREAS, schools that are true centers of community must be sited and designed with the participation of the members of the community to be served by the school facility; and WHEREAS, it is in the best interests of the people of New Jersey that school facilities developed under the Act shall be modern facilities of the 21st century, combining all of these features: the best possible learning environment, the most energy-efficient design, the most environmentally sustainable systems, and the highest community-relevance; and WHEREAS, in February 2002 pursuant to Executive Order the Abbott Implementation and Compliance Coordinating Council was created to coordinate and direct State policy regarding education reform implementation and school facility construction in the Abbott districts; and WHEREAS, the Abbott Implementation Council formed a facilities working group that included representation from school districts, community organizations, and the architectural and construction community to recommend improvements to the School Construction Program; and WHEREAS, in order to accomplish the purposes of the Act, to begin implementation of the recommendations of the Abbott Facilities Work Group, and to ensure that schools are equipped for the 21st century, it is necessary now to focus, streamline and coordinate the activities of various State agencies involved in this monumental and most important effort; NOW, THEREFORE, I, JAMES E. MCGREEVEY, Governor of the State of New Jersey, by virtue of the authority vested in me by the Constitution and by the Statutes of this State, do hereby ORDER and DIRECT: 12096859.2 1. In order to establish the school construction program as a separate activity of the NJEDA apart from its economic development mission and to provide for more focused attention, the NJEDA shall establish a subsidiary corporation, which will be responsible for the school facilities project. This shall include: a. The creation of a corporation Board of Directors consisting of the following members: the Commissioner of Education; Commissioner of Labor; Commissioner of Community Affairs; State Treasurer; CEO/Secretary of Commerce and Economic Growth Commission; Executive Director of EDA; Member of the Governor's Executive Staff; Three public members of the EDA Board of Directors selected by the Governor; and two members of the public to be appointed by the Governor. b. The Schools Corporation will be headed by a CEO to oversee the program, which individual will have experience in construction management commensurate with the task of overseeing a multi-billion dollar, long-term program. 2. The NJEDA and all school districts developing school facilities projects to be funded under the Act should attempt to incorporate community design features to maximize public access to the building and enhance the utility of the building to the needs of the community. 3. The NJEDA and all school districts developing school facilities projects to be funded under the Act are strongly encouraged to provide opportunity for the community at large to have meaningful participation in the site selection process for the school facilities projects, and in the design of school facilities. 4. All new school designs shall incorporate the guidelines developed by the United States Green Building Council known as "Leadership in Energy & Environmental Design ("LEED"), Version 2.0 to achieve maximum energy efficiency and environmental sustainability in the design of schools. 5. The DOE shall not approve any school facilities project for funding under the Act and the NJEDA shall not construct any project unless the project is designed using best design practices to create space that enhances the learning process and accommodates modern teaching techniques. 6. In order to improve the delivery of early childhood services, the Commissioner of DOE should adopt regulations, which will establish facilities efficiency standards for early childhood education facilities and criteria for the use by districts of community providers. 7. The NJEDA should undertake actions to ensure that there is an adequate pool of qualified contractors and consultants to carry out the school facilities projects funded under the Act. The NJEDA should explore with other agencies, including the Department of 12096859.2 Treasury, the feasibility of consolidating and integrating the current multiple systems for the classification and pre-qualification of consultants and contractors. 8. To facilitate and expedite the completion of school facilities projects, the NJEDA is hereby directed to take the following actions: a. Streamline the procurement process and make it more efficient through the use of term contracts where appropriate to provide for such things, as the (i) acquisition and installation of furniture, fixtures and equipment; (ii) acquisition of items requiring long-lead times such as boilers, chillers and windows; (iii) services related to land acquisition, and (iv) the ability to respond on an expedited basis to health and safety issues in school facilities. b. Examine and implement changes in the process for delegating school facilities projects under $500,000 back to the districts pursuant to Section 13(a) of the Act and for funding grants to the under 55% districts pursuant to Section 15 of the Act so that these projects can be completed more rapidly while still maintaining moral and fiscal integrity. 9. The NJEDA is authorized to call upon any department, office or agency of State government to provide such information, resources or other assistance deemed necessary to discharge its responsibilities under this Order. Each department, officer, division and agency of this State is required to cooperate with the Authority and to furnish it with assistance necessary to accomplish the purposes of this Order. Furthermore, the DOE is directed to establish a satellite office at the NJEDA staffed by DOE personnel involved in the review and approval of school facilities projects to better coordinate and share information with the NJEDA. 10. This Order shall take effect immediately. 12096859.2 New Mexico (back to top) CHAPTER 7 Taxation ARTICLE 2 Income Tax General Provisions 7-2-18.19. Sustainable building tax credit. A. The tax credit provided by this section may be referred to as the “sustainable building tax credit”. The sustainable building tax credit shall be available for the construction in New Mexico of a sustainable building, the renovation of an existing building in New Mexico into a sustainable building or the permanent installation of manufactured housing, regardless of where the housing is manufactured, that is a sustainable building. The tax credit provided in this section may not be claimed with respect to the same sustainable building for which the sustainable building tax credit provided in the Corporate Income and Franchise Tax Act has been claimed. B. The purpose of the sustainable building tax credit is to encourage the construction of sustainable buildings and the renovation of existing buildings into sustainable buildings. C. A taxpayer who files an income tax return is eligible to be granted a sustainable building tax credit by the department if the taxpayer submits a document issued pursuant to Subsection J of this section with the taxpayer's income tax return. D. For taxable years ending on or before December 31, 2016, the sustainable building tax credit may be claimed with respect to a sustainable commercial building. The credit shall be calculated based on the certification level the building has achieved in the LEED green building rating system and the amount of qualified occupied square footage in the building, as indicated on the following chart: LEED Rating Level LEED -NC Silver LEED -NC Gold LEED -NC Platinum LEED -EB or CS Silver 12096859.2 Qualified Occupied Square Footage First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 Tax Credit per Square Foot $3.50 $1.75 $ .70 $4.75 $2.00 $1.00 $6.25 $3.25 $2.00 $2.50 $1.25 LEED -EB or CS Gold LEED -EB or CS Platinum LEED -CI Silver LEED -CI Gold LEED -CI Platinum up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 $ .50 $3.35 $1.40 $ .70 $4.40 $2.30 $1.40 $1.40 $ .70 $ .30 $1.90 $ .80 $ .40 $2.50 $1.30 $ .80 E. For taxable years ending on or before December 31, 2016, the sustainable building tax credit may be claimed with respect to a sustainable residential building. The credit shall be calculated based on the amount of qualified occupied square footage, as indicated on the following chart: Rating System/Level Qualified Occupied Square Footage Tax Credit per Square Foot LEED-H Silver or Build Green NM Silver LEED-H Gold or Build Green NM Gold LEED-H Platinum or Build Green NM Emerald EPA ENERGY STAR Manufactured Housing First 2,000 Next 1,000 First 2,000 Next 1,000 First 2,000 Next 1,000 Up to 3,000 $5.00 $2.50 $6.85 $3.40 $9.00 $4.45 $3.00. F. A person that is a building owner may apply for la certificate of eligibility for the sustainable building tax credit from the energy, minerals and natural resources department after the construction, installation or renovation of the sustainable building is complete. Applications shall be considered in the order received. If the energy, minerals and natural resources department determines that the building owner meets the requirements of this subsection and that the building with respect to which the tax credit application is made meets the requirements of this section as a 12096859.2 sustainable residential building or a sustainable commercial building, the energy, minerals and natural resources department may issue a certificate of eligibility to the building owner, subject to the limitation in Subsection G of this section. The certificate shall include the rating system certification level awarded to the building, the amount of qualified occupied square footage in the building and a calculation of the maximum amount of sustainable building tax credit for which the building owner would be eligible. The energy, minerals and natural resources department may issue rules governing the procedure for administering the provisions of this subsection. If the certification level for the sustainable residential building is awarded on or after January 1, 2007, the energy, minerals and natural resources department may issue a certificate of eligibility to a building owner who is: (1) the owner of the sustainable residential building at the time the certification level for the building is awarded; or (2) the subsequent purchaser of a sustainable residential building with respect to which no tax credit has been previously claimed. G. The energy, minerals and natural resources department may issue a certificate of eligibility only if the total amount of sustainable building tax credits represented by certificates of eligibility issued by the energy, minerals and natural resources department pursuant to this section and pursuant to the Corporate Income and Franchise Tax Act shall not exceed in any calendar year an aggregate amount of one million dollars ($1,000,000) with respect to sustainable commercial buildings and an aggregate amount of four million dollars ($4,000,000) with respect to sustainable residential buildings; provided that no more than one million two hundred fifty thousand dollars ($1,250,000) of the aggregate amount with respect to sustainable residential buildings shall be for manufactured housing. If for any taxable year the energy, minerals and natural resources department determines that the applications for sustainable building tax credits with respect to sustainable residential buildings for that taxable year exceed the aggregate limit set in this section, the energy, minerals and natural resources department may issue certificates of eligibility under the aggregate annual limit for sustainable commercial buildings to owners of sustainable residential buildings that meet the requirements of the energy, minerals and natural resources department and of this section; provided that applications for sustainable building credits for other sustainable commercial buildings total less than the full amount allocated for tax credits for sustainable commercial buildings. H. Installation of a solar thermal system or a photovoltaic system eligible for the solar market development tax credit pursuant to Section 7-2-18.14 NMSA 1978 may not be used as a component of qualification for the rating system certification level used in determining eligibility for the sustainable building tax credit, unless a solar market development tax credit pursuant to Section 7-2-18.14 NMSA 1978 has not been claimed with respect to that system and the building owner and the taxpayer claiming the sustainable building tax credit certify that such a tax credit will not be claimed with respect to that system. 12096859.2 I. To be eligible for the sustainable building tax credit, the building owner shall provide to the taxation and revenue department a certificate of eligibility issued by the energy, minerals and natural resources department pursuant to the requirements of Subsection F of this section and any other information the taxation and revenue department may require to determine the amount of the tax credit for which the building owner is eligible. J. If the requirements of this section have been complied with, the department shall issue to the building owner a document granting a sustainable building tax credit. The document shall be numbered for identification and declare its date of issuance and the amount of the tax credit allowed pursuant to this section. The document may be submitted by the building owner with that taxpayer's income tax return, if applicable, or may be sold, exchanged or otherwise transferred to another taxpayer. The parties to such a transaction shall notify the department of the sale, exchange or transfer within ten days of the sale, exchange or transfer. K. If the total approved amount of all sustainable building tax credits for a taxpayer in a taxable year represented by the documents issued pursuant to Subsection J of this section is: (1) less than one hundred thousand dollars ($100,000), a maximum of twenty-five thousand dollars ($25,000) shall be applied against the taxpayer's income tax liability for the taxable year for which the credit is approved and the next three subsequent taxable years as needed depending on the amount of credit; or (2) one hundred thousand dollars ($100,000) or more, increments of twenty-five percent of the total credit amount in each of the four taxable years, including the taxable year for which the credit is approved and the three subsequent taxable years, shall be applied against the taxpayer's income tax liability. L. If the sum of all sustainable building tax credits that can be applied to a taxable year for a taxpayer, calculated according to Paragraph (1) or (2) of Subsection K of this section, exceeds the taxpayer's income tax liability for that taxable year, the excess may be carried forward for a period of up to seven years. M. A taxpayer who otherwise qualifies and claims a sustainable building tax credit with respect to a sustainable building owned by a partnership or other business association of which the taxpayer is a member may claim a credit only in proportion to that taxpayer's interest in the partnership or association. The total credit claimed in the aggregate by all members of the partnership or association with respect to the sustainable building shall not exceed the amount of the credit that could have been claimed by a sole owner of the property. 12096859.2 N. A husband and wife who file separate returns for a taxable year in which they could have filed a joint return may each claim only one-half of the sustainable building tax credit that would have been allowed on a joint return. O. The department shall compile an annual report on the sustainable building tax credit created pursuant to this section that shall include the number of taxpayers approved by the department to receive the tax credit, the aggregate amount of tax credits approved and any other information necessary to evaluate the effectiveness of the tax credit. Beginning in 2015 and every five years thereafter, the department shall compile and present the annual reports to the revenue stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the tax credit and whether the tax credit is performing the purpose for which it was created. P. For the purposes of this section: (1) “build green New Mexico rating system” means the certification standards adopted by the homebuilders association of central New Mexico; (2) “LEED-CI” means the LEED rating system for commercial interiors; (3) “LEED-CS” means the LEED rating system for the core and shell of buildings; (4) “LEED-EB” means the LEED rating system for existing buildings; (5) “LEED gold” means the rating in compliance with, or exceeding, the secondhighest rating awarded by the LEED certification process; (6) “LEED” means the most current leadership in energy and environmental design green building rating system guidelines developed and adopted by the United States green building council; (7) “LEED-H” means the LEED rating system for homes; (8) “LEED-NC” means the LEED rating system for new buildings and major renovations; (9) “LEED platinum” means the rating in compliance with, or exceeding, the highest rating awarded by the LEED certification process; (10) “LEED silver” means the rating in compliance with, or exceeding, the third-highest rating awarded by the LEED certification process; (11) “manufactured housing” means a multisectioned home that is: (a) a manufactured home or modular home; 12096859.2 (b) a single-family dwelling with a heated area of at least thirty-six feet by twenty-four feet and a total area of at least eight hundred sixty-four square feet; (c) constructed in a factory to the standards of the United States department of housing and urban development, the National Manufactured Housing Construction and Safety Standards Act of 1974 and the Housing and Urban Development Zone Code 2 or New Mexico construction codes up to the date of the unit's construction; and (d) installed consistent with the Manufactured Housing Act and rules adopted pursuant to that act relating to permanent foundations; (12) “qualified occupied square footage” means the occupied spaces of the building as determined by: a. the United States green building council for those buildings obtaining LEED certification; b. the administrators of the build green New Mexico rating system for those homes obtaining build green New Mexico certification; and c. the United States environmental protection agency for ENERGY STARcertified manufactured homes; (13) “person” does not include state, local government, public school district or tribal agencies; (14) “sustainable building” means either a sustainable commercial building or a sustainable residential building; (15) “sustainable commercial building” means a multifamily dwelling unit, as registered and certified under the LEED-H or build green New Mexico rating system, that is certified by the United States green building council as LEED-H silver or higher or by build green New Mexico as silver or higher and has achieved a home energy rating system index of sixty or lower as developed by the residential energy services network or a building that has been registered and certified under the LEED-NC, LEED-EB, LEED-CS or LEED-CI rating system and that: a. is certified by the United States green building council at LEED silver or higher; b. achieves any prerequisite for and at least one point related to commissioning under LEED “energy and atmosphere”, if included in the applicable rating system; and 12096859.2 c. has reduced energy consumption, as follows: 1) through 2011, a fifty percent energy reduction will be required based on the national average for that building type as published by the United States department of energy; and beginning January 1, 2012, a sixty percent energy reduction will be required based on the national average for that building type as published by the United States department of energy; and 2) is substantiated by the United States environmental protection agency target finder energy performance results form, dated no sooner than the schematic design phase of development; (16) “sustainable residential building” means: (a) a building used as a single-family residence as registered and certified under the build green New Mexico or LEED-H rating system that: 1) is certified by the United States green building council as LEED-H silver or higher or by build green New Mexico as silver or higher; and 2) has achieved a home energy rating system index of sixty or lower as developed by the residential energy services network; or (b) manufactured housing that is ENERGY STAR-qualified by the United States environmental protection agency; and (17) “tribal” means of, belonging to or created by a federally recognized Indian nation, tribe or pueblo.. CHAPTER 7 Taxation ARTICLE 2A Corporate Income and Franchise Tax 7-2A-21. Sustainable building tax credit. A. B. C. 12096859.2 The tax credit provided by this section may be referred to as the “sustainable building tax credit”. The sustainable building tax credit shall be available for the construction in New Mexico of a sustainable building, the renovation of an existing building in New Mexico into a sustainable building or the permanent installation of manufactured housing, regardless of where the housing is manufactured, that is a sustainable building. The tax credit provided in this section may not be claimed with respect to the same sustainable building for which the sustainable building tax credit provided in the Income Tax Act has been claimed. The purpose of the sustainable building tax credit is to encourage the construction of sustainable buildings and the renovation of existing buildings into sustainable buildings. A taxpayer that files a corporate income tax return is eligible to be granted a sustainable building tax credit by the department if the taxpayer submits a D. document issued pursuant to Subsection J of this section with the taxpayer's corporate income tax return. For taxable years ending on or before December 31, 2016, the sustainable building tax credit may be claimed with respect to a sustainable commercial building. The credit shall be calculated based on the certification level the building has achieved in the LEED green building rating system and the amount of qualified occupied square footage in the building, as indicated on the following chart: LEED Rating Level LEED-NC Silver LEED-NC Gold LEED-NC Platinum LEED-EB or CS Silver LEED-EB or CS Gold LEED-EB or CS Platinum LEED-CI Silver LEED-CI Gold 12096859.2 Qualified Occupied Square Footage First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 First 10,000 Next 40,000 Over 50,000 up to 500,000 Tax Credit per Square Foot $3.50 $1.75 $ .70 $4.75 $2.00 $1.00 $6.25 $3.25 $2.00 $2.50 $1.25 $ .50 $3.35 $1.40 $ .70 $4.40 $2.30 $1.40 $1.40 $ .70 $ .30 $1.90 $ .80 $ .40 LEED-CI Platinum E. $2.50 $1.30 $ .80 For taxable years ending on or before December 31, 2016, the sustainable building tax credit may be claimed with respect to a sustainable residential building. The credit shall be calculated based on the amount of qualified occupied square footage, as indicated on the following chart: Rating System/Level Build Green NM Gold LEED-H Silver LEED-H Gold LEED-H Platinum EPA ENERGY STAR Manufactured Housing F. First 10,000 Next 40,000 Over 50,000 up to 500,000 Qualified Occupied Square Footage First 2,000 Next 1,000 First 2,000 Next 1,000 First 2,000 Next 1,000 First 2,000 Next 1,000 Up to 3,000 Tax Credit per Square Foot $4.50 $2.00 $5.00 $2.50 $6.85 $3.40 $9.00 $4.45 $3.00 A person that is a building owner may apply for a certificate of eligibility for the sustainable building tax credit from the energy, minerals and natural resources department after the construction, installation or renovation of the sustainable building is complete. Applications shall be considered in the order received. If the energy, minerals and natural resources department determines that the building owner meets the requirements of this subsection and that the building with respect to which the tax credit application is made meets the requirements of this section as a sustainable residential building or a sustainable commercial building, the energy, minerals and natural resources department may issue a certificate of eligibility to the building owner, subject to the limitation in Subsection G of this section. The certificate shall include the rating system certification level awarded to the building, the amount of qualified occupied square footage in the building and a calculation of the maximum amount of sustainable building tax credit for which the building owner would be eligible. The energy, minerals and natural resources department may issue rules governing the procedure for administering the provisions of this subsection. If the certification level for the sustainable residential building is awarded on or after January 1, 2007, the energy, minerals and natural resources department may issue a certificate of eligibility to a building owner who is: (1) the owner of the sustainable residential building at the time the certification level for the building is awarded; or 12096859.2 (2) the subsequent purchaser of a sustainable residential building with respect to which no tax credit has been previously claimed. G. The energy, minerals and natural resources department may issue a certificate of eligibility only if the total amount of sustainable building tax credits represented by certificates of eligibility issued by the energy, minerals and natural resources department pursuant to this section and pursuant to the Income Tax Act shall not exceed in any calendar year an aggregate amount of one million dollars ($1,000,000) with respect to sustainable commercial buildings and an aggregate amount of four million dollars ($4,000,000) with respect to sustainable residential buildings; provided that no more than one million two hundred fifty thousand dollars ($1,250,000) of the aggregate amount with respect to sustainable residential buildings shall be for manufactured housing. If for any taxable year the energy, minerals and natural resources department determines that the applications for sustainable building tax credits with respect to sustainable residential buildings for that taxable year exceed the aggregate limit set in this section, the energy, minerals and natural resources department may issue certificates of eligibility under the aggregate annual limit for sustainable commercial buildings to owners of sustainable residential buildings that meet the requirements of the energy, minerals and natural resources department and of this section; provided that applications for sustainable building credits for other sustainable commercial buildings total less than the full amount allocated for tax credits for sustainable commercial buildings. H. Installation of a solar thermal system or a photovoltaic system eligible for the solar market development tax credit pursuant to Section 7-2-18.14 NMSA 1978 may not be used as a component of qualification for the rating system certification level used in determining eligibility for the sustainable building tax credit, unless a solar market development tax credit pursuant to Section 7-2-18.14 NMSA 1978 has not been claimed with respect to that system and the building owner and the taxpayer claiming the sustainable building tax credit certify that such a tax credit will not be claimed with respect to that system. I. To be eligible for the sustainable building tax credit, the building owner shall provide to the taxation and revenue department a certificate of eligibility issued by the energy, minerals and natural resources department pursuant to the requirements of Subsection F of this section and any other information the taxation and revenue department may require to determine the amount of the tax credit for which the building owner is eligible. J. If the requirements of this section have been complied with, the department shall issue to the building owner a document granting a sustainable building tax credit. The document shall be numbered for identification and declare its date of issuance and the amount of the tax credit allowed pursuant to this section. The document may be submitted by the building owner with that taxpayer's income tax return, if 12096859.2 applicable, or may be sold, exchanged or otherwise transferred to another taxpayer. The parties to such a transaction shall notify the department of the sale, exchange or transfer within ten days of the sale, exchange or transfer.Installation of a solar thermal system or a photovoltaic system eligible for the solar market development tax credit pursuant to Section 7-2-18.14 NMSA 1978 may not be used as a component of qualification for the rating system certification level used in determining eligibility for the sustainable building tax credit, unless a solar market development tax credit pursuant to Section 7-2-18.14 NMSA 1978 has not been claimed with respect to that system and the taxpayer certifies that such a tax credit will not be claimed with respect to that system. K. If the total approved amount of all sustainable building tax credits for a taxpayer in a taxable year represented by the documents issued pursuant to Subsection J of this section is: (1) less than one hundred thousand dollars ($100,000), a maximum of twenty-five thousand dollars ($25,000) shall be applied against the taxpayer's corporate income tax liability for the taxable year for which the credit is approved and the next three subsequent taxable years as needed depending on the amount of credit; or (2) one hundred thousand dollars ($100,000) or more, increments of twenty-five percent of the total credit amount in each of the four taxable years, including the taxable year for which the credit is approved and the three subsequent taxable years, shall be applied against the taxpayer's corporate income tax liability. L. If the sum of all sustainable building tax credits that can be applied to a taxable year for a taxpayer, calculated according to Paragraph (1) or (2) of Subsection K of this section, exceeds the taxpayer's corporate income tax liability for that taxable year, the excess may be carried forward for a period of up to seven years. M. A taxpayer that otherwise qualifies and claims a sustainable building tax credit with respect to a sustainable building owned by a partnership or other business association of which the taxpayer is a member may claim a credit only in proportion to that taxpayer's interest in the partnership or association. The total credit claimed in the aggregate by all members of the partnership or association with respect to the sustainable building shall not exceed the amount of the credit that could have been claimed by a sole owner of the property. N. The department shall compile an annual report on the sustainable building tax credit created pursuant to this section that shall include the number of taxpayers approved by the department to receive the tax credit, the aggregate amount of tax credits approved and any other information necessary to evaluate the effectiveness of the tax credit. Beginning in 2015 and every five years thereafter, the department shall compile and present the annual reports to the revenue 12096859.2 stabilization and tax policy committee and the legislative finance committee with an analysis of the effectiveness and cost of the tax credit and whether the tax credit is performing the purpose for which it was created.H. To be eligible for the sustainable building tax credit, the taxpayer must provide to the taxation and revenue department a certificate of eligibility issued by the energy, minerals and natural resources department pursuant to the requirements of Subsection E of this section and any other information the taxation and revenue department may require to determine the amount of the tax credit due the taxpayer. O. For the purposes of this section: (1) “build green New Mexico rating system” means the certification standards adopted by the homebuilders association of central New Mexico; (2) “LEED-CI” means the LEED rating system for commercial interiors; (3) “LEED-CS” means the LEED rating system for the core and shell of buildings; (4) “LEED-EB” means the LEED rating system for existing buildings; (5) “LEED gold” means the rating in compliance with, or exceeding, the secondhighest rating awarded by the LEED certification process; (6) “LEED” means the most current leadership in energy and environmental design green building rating system guidelines developed and adopted by the United States green building council; (7) “LEED-H” means the LEED rating system for homes; (8) “LEED-NC” means the LEED rating system for new buildings and major renovations; (9) “LEED platinum” means the rating in compliance with, or exceeding, the highest rating awarded by the LEED certification process; (10) “LEED silver” means the rating in compliance with, or exceeding, the thirdhighest rating awarded by the LEED certification process; (11) “manufactured housing” means a multisectioned home that is: (a) a manufactured home or modular home; (b) a single-family dwelling with a heated area of at least thirty-six feet by twenty-four feet and a total area of at least eight hundred sixty-four square feet; 12096859.2 (c) constructed in a factory to the standards of the United States department of housing and urban development, the National Manufactured Housing Construction and Safety Standards Act of 1974 and the Housing and Urban Development Zone Code 2 or New Mexico construction codes up to the date of the unit's construction; and (d) installed consistent with the Manufactured Housing Act and rules adopted pursuant to that act relating to permanent foundations; (12) “qualified occupied square footage” means the occupied spaces of the building as determined by: (a) the United States green building council for those buildings obtaining LEED certification; (b) the administrators of the build green New Mexico rating system for those homes obtaining build green New Mexico certification; and (c) the United States environmental protection agency for ENERGY STARcertified manufactured homes; (13) “person” does not include state, local government, public school district or tribal agencies; (14) “sustainable building” means either a sustainable commercial building or a sustainable residential building; (15) “sustainable commercial building” means a multifamily dwelling unit, as registered and certified under the LEED-H or build green New Mexico rating system, that is certified by the United States green building council as LEED-H silver or higher or by build green New Mexico as silver or higher and has achieved a home energy rating system index of sixty or lower as developed by the residential energy services network or a building that has been registered and certified under the LEED-NC, LEED-EB, LEED-CS or LEED-CI rating system and that: (a) is certified by the United States green building council at LEED silver or higher; (b) achieves any prerequisite for and at least one point related to commissioning under LEED “energy and atmosphere”, if included in the applicable rating system; and (c) has reduced energy consumption, as follows: 1) through 2011, a fifty percent energy reduction will be required based on the national average 12096859.2 for that building type as published by the United States department of energy; and beginning January 1, 2012, a sixty percent energy reduction will be required based on the national average for that building type as published by the United States department of energy; and 2) is substantiated by the United States environmental protection agency target finder energy performance results form, dated no sooner than the schematic design phase of development; (16) “sustainable residential building” means: (a) a building used as a single-family residence as registered and certified under the build green New Mexico or LEED-H rating systems that: 1) is certified by the United States green building council as LEED-H silver or higher or by build green New Mexico as silver or higher; and 2) has achieved a home energy rating system index of sixty or lower as developed by the residential energy services network; or (b) manufactured housing that is ENERGY STAR-qualified by the United States environmental protection agency; and (17) “tribal” means of, belonging to or created by a federally recognized Indian nation, tribe or pueblo. § 15-3-36. Energy efficiency standards for public buildings A. As used in this section: (1) “department” means the energy, minerals and natural resources department; (2) “new building” means a building to be constructed that is designed with a square footage of three thousand or more square feet; (3) “selected building addition” means an addition to a building that increases the square footage of the building by three thousand or more square feet; and (4) “selected building renovation” means a renovation of a building that includes upgrade or replacement of at least two of the following: (a) heating, ventilation and air conditioning systems; (b) electrical systems, including lighting systems; and (c) the components that separate the interior and the exterior environments of a building and serve to protect the indoor environment and facilitate climate control. B. Except as provided in Subsection C of this section, a new building, selected building addition or selected building renovation that is financed to any extent with legislative appropriations of state general fund revenues, severance tax bond proceeds, supplemental severance tax bond proceeds or state general obligation bond proceeds shall be designed and constructed to attain the energy star qualification of the United States environmental protection agency, or an alternative, equivalent standard specified by rule of the department. C. The requirements of this section do not apply to: 12096859.2 (1) a new building, a selected building addition or a selected building renovation for which the initial legislative appropriation is made prior to January 1, 2011; (2) a new building, a selected building addition or a selected building renovation for which, in the department's opinion, substantial design expenditures have been made prior to July 1, 2010; (3) a selected building addition to an existing building or a selected building renovation to an existing building if the existing building is listed in the state register of cultural properties of the national register of historic places; or (4) a new building, selected building addition or selected building renovation if the department determines that the costs of compliance with the requirements of this section would exceed the estimated life-cycle savings of the building, addition or renovation. EXECUTIVE ORDER 2006-001 STATE OF NEW MEXICO ENERGY EFFICIENT GREEN BUILDING STANDARDS FOR STATE BUILDINGS WHEREAS, the State of New Mexico is committed to improving the health of its employees and its citizens, increasing the production and use of clean energy sources, reducing waste, conserving water, and reducing greenhouse gas emissions, and desires to empower sustainable economic development; WHEREAS, the Federal Government through programs fostered within many of its key agencies, numerous State governments as well as municipalities across the U.S. have adopted high performance green building principles through the incorporation of the U.S. Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) rating system into their building services; WHEREAS, a recent study by the Lawrence Berkley National Laboratory completed the most definitive cost-benefit analysis of green buildings ever conducted and concluded that the financial benefits of green design are between $50 and $70 per square foot in a LEED building, more than 10 times the additional cost associated with building green. Additionally, the large positive impact on employee productivity and health gains suggests that green building has a cost-effective impact beyond just the utility bill savings; WHEREAS, studies have indicated that student attendance and performance is higher in green school buildings; WHEREAS, recognizing that a building's initial construction costs represents only 20-30 percent of the building's entire costs over its 30 to 40 year life, emphasis should be placed on the "life cycle costs" of a public building rather than solely on its initial capital costs; and WHEREAS, the construction industry in the State of New Mexico represents a significant portion of our economy and a significant portion of the building industry is represented by small business and an increase in sustainable building practices will encourage and promote new and innovative small business development throughout the State. 12096859.2 NOW, THEREFORE, I, Bill Richardson, Governor of the State of New Mexico, declare that the state adopt specific standards to implement and facilitate the use of high performance energy efficient green building practices for all state-funded existing and new buildings throughout the State of New Mexico. IT IS THEREFORE ORDERED that all Executive Branch state agencies, including the Higher Education Department, adopt the U.S. Green Building Council's LEED TM rating system consistent with all applicable laws to achieve the following: • New construction of public buildings in excess of 15,000 square feet and/or using over 50 kW peak electrical demand shall build to and achieve a minimum rating of " LEED TM Silver." In achieving its LEED TM rating, the project must achieve a minimum delivered energy performance standard of one half the U.S. energy consumption for that building type as defined by the U.S. Department of Energy. • New construction and renovation projects of public buildings between 5,00015,000 square feet in size shall achieve a minimum delivered energy performance standard of one half the U.S. energy consumption for that building type as defined by the U.S. Department of Energy. • Renovations of public buildings in excess of 15,000 square feet and/or using over 50 kW peak electrical demand and comprising upgrades or replacement of two of the three major systems (HVAC, lighting, and plumbing), shall achieve a minimum rating of "LEED Silver" and a minimum delivered energy performance standard of one half the U.S. energy consumption for that building type as defined by the U.S. Department of Energy. • All other new construction, renovations, repairs, and replacements of state buildings shall employ cost-effective, energy-efficient, green building practices to the maximum extent possible; and IT IS FURTHER ORDERED, that the General Services Department, in coordination with the Energy, Minerals and Natural Resources Department, the Construction Industries Division, and the New Mexico Chapter of the U.S. Green Building Council, shall develop criteria and a workable process for implementing this system; and IT IS FURTHER ORDERED, that the General Services Department encourage privatesector building owners that lease to State agencies to comply with the same energyefficiency performance standards required of State agencies in this Executive Order by offering preference points as determined by the Evaluation Committee for each lease RFP conducted under jurisdiction of the General Services Department; and IT IS FURTHER ORDERED, that the Energy, Minerals, and Natural Resources Department (EMNRD) convene a "Public Schools Clean Energy Task Force" that shall be 12096859.2 advisory in nature and shall make recommendations to implement aggressive energy efficiency measures in all existing school buildings and in the construction of all new schools and school renovations, including adopting the same energy efficiency standards established for executive branch agencies in this order. The Task Force shall also address the public schools' implementation of Executive Order 05-049, Requiring the Increased Use of Renewable Fuels in New Mexico State Government. The Task Force shall consist of representatives from EMNRD, Public Education Department, New Mexico Coalition of School Administrators, New Mexico School Boards Association, Public School Facilities Authority, Public Schools Capitol Outlay Task Force, and other members as appropriate. The Task Force shall report to the Governor by August 1, 2006 on its findings and recommendations; and IT IS FURTHER ORDERED, that the Local Government Division of the Department of Finance and Administration, evaluate and develop recommendations to ensure that the siting of public buildings, including schools, minimizes transportation-related energy usage; and IT IS FURTHER ORDERED, that the Construction Industries Division (CID) and the Construction Industries Commission (CIC) pursue updating residential and commercial building codes to promote and encourage consumers to develop state-of-the-art cost-effective energy efficient buildings and, in cooperation with EMNRD, engage the active support and participation from the CID and CIC on green building outreach, training, and technical assistance efforts; and IT IS FURTHER ORDERED, that all State agencies are encouraged to work cooperatively with one another to achieve the goals outlined in this executive order. THIS ORDER supersedes any other previous orders, proclamations, or directives in conflict. This Executive Order shall take effect immediately and shall remain in effect until such time as the Governor rescinds it. 12096859.2 New York (back to top) Education Title 8 - THE PROFESSIONS Article 130 - GENERAL PROVISIONS Sub Art. 3 - (6509 - 6511) Professional misconduct. § 6509. Definitions of professional misconduct. Each of the following is professional misconduct, and any licensee found guilty of such misconduct under the procedures prescribed in section sixty-five hundred ten shall be subject to the penalties prescribed in section sixty-five hundred eleven: Obtaining the license fraudulently, Practicing the profession fraudulently, beyond its authorized scope, with gross incompetence, with gross negligence on a particular occasion or negligence or incompetence on more than one occasion, Practicing the profession while the ability to practice is impaired by alcohol, drugs, physical disability, or mental disability, Being habitually drunk or being dependent on, or a habitual user of narcotics, barbiturates, amphetamines, hallucinogens, or other drugs having similar effects, (a) Being convicted of committing an act constituting a crime under: New York State law or, Federal law or, The law of another jurisdiction and which, if committed within this state, would have constituted a crime under New York State law; 12096859.2 (b) Having been found guilty of improper professional practice or professional misconduct by a duly authorized professional disciplinary agency of another state where the conduct upon which the finding was based would, if committed in New York state, constitute professional misconduct under the laws of New York state; (c) Having been found by the commissioner of health to be in violation of article thirty-three of the public health law. (d) Having his license to practice medicine revoked, suspended or having other disciplinary action taken, or having his application for a license refused, revoked or suspended or having voluntarily or otherwise surrendered his license after a disciplinary action was instituted by a duly authorized professional disciplinary agency of another state, where the conduct resulting in the revocation, suspension or other disciplinary action involving the license or refusal, revocation or suspension of an application for a license or the surrender of the license would, if committed in New York state, constitute professional misconduct under the laws of New York state. Refusing to provide professional service to a person because of such person's race, creed, color, or national origin, Permitting, aiding or abetting an unlicensed person to perform activities requiring a license, Practicing the profession while the license is suspended, or wilfully failing to register or notify the department of any change of name or mailing address, or, if a professional service corporation wilfully failing to comply with sections fifteen hundred three and fifteen hundred fourteen of the business corporation law or, if a university faculty practice corporation wilfully failing to comply with paragraphs (b), (c) and (d) of section fifteen hundred three and section fifteen hundred fourteen of the business corporation law, Committing unprofessional conduct, as defined by the board of regents in its rules or by the commissioner in regulations approved by the board of regents, A violation of section twenty-eight hundred three-d or twenty-eight hundred five-k of the public health law. A violation of section six thousand five hundred five-b of this chapter by a professional other than a professional subject to the provisions of paragraph (f) of subdivision one of section twenty-eight hundred five-k of the public health law. In the event that the department of environmental conservation has reported to the department alleged misconduct by an architect or professional engineer in making a certification under section nineteen of the tax law (relating to the green building tax credit) the board of regents, upon a hearing and a finding of willful misconduct, may revoke the license of such professional or prescribe such other penalty as it determines to be appropriate. 12096859.2 TAX - Tax Article 1 - SHORT TITLE; DEFINITIONS; MISCELLANEOUS § 19. Green building credit. (a) Allowance of credit. (1) General. (A) [Eff. until Jan. 1, 2015. See, also, subpar. (A) below.] Green building credit. A taxpayer subject to tax under article nine, nine-A, twenty-two, thirtytwo or thirty-three of this chapter shall be allowed a green building credit against such tax, pursuant to the provisions referenced in subdivision (f) of this section. Provided, however, no credit shall be allowed under this section unless the taxpayer has complied with the applicable requirements of paragraph two of subdivision (d) of this section (relating to reports to DEC). The amount of the credit shall be the sum of the credit components specified in paragraphs two through seven of this subdivision. Provided, however, the amount of each such credit component shall not exceed the limit set forth in the initial credit component certificate obtained pursuant to subdivision (c) of this section. In the determination of such credit components, no cost paid or incurred by the taxpayer shall be the basis for more than one such component. (a) Allowance of credit. (1) General. (A) [Eff. Jan. 1, 2015. See, also, subpar. (A) above.] Green building credit. A taxpayer subject to tax under article nine, nine-A, twenty-two or thirty-three of this chapter shall be allowed a green building credit against such tax, pursuant to the provisions referenced in subdivision (f) of this section. Provided, however, no credit shall be allowed under this section unless the taxpayer has complied with the applicable requirements of paragraph two of subdivision (d) of this section (relating to reports to DEC). The amount of the credit shall be the sum of the credit components specified in paragraphs two through seven of this subdivision. Provided, however, the amount of each such credit component shall not exceed the limit set forth in the initial credit component certificate obtained pursuant to subdivision (c) of this section. In the determination of such credit components, no cost paid or incurred by the taxpayer shall be the basis for more than one such component. (B) Credit to successor owner. If a credit is allowed to a building owner pursuant to this subdivision with respect to property, and such property (or an interest therein) is sold, the credit for the period after the sale which would have been allowable under this subdivision to the prior owner had the property not been sold shall be allowable to the new owner. Credit for the year of sale shall be allocated between the parties on the basis of the number of days during such year that the property or interest was held by each. (C) Credit to successor tenant. If a credit is allowed to a tenant pursuant to this subdivision with respect to property, and if such tenancy is terminated but such property remains in use in the building by a successor tenant, the credit for the period after such termination which would have been allowable under this subdivision to the prior tenant had the tenancy not been terminated shall be allowable to the successor tenant. Credit for the year of termination shall be allocated between the parties on the basis of the number of days during such year that the property was used by each. (D) Notwithstanding any other provision of law to the contrary, in the case of allowance of credit under this section to a successor owner or tenant, as provided in subparagraph (B) or (C) of this paragraph, the commissioner shall have the authority to reveal to the successor owner or tenant 12096859.2 any information, with respect to the credit of the prior owner or tenant, which is the basis for the denial in whole or in part of the credit claimed by such successor owner or tenant. (2) Green whole-building credit component. The green whole-building credit component shall be equal to the applicable percentage of the allowable costs paid or incurred by the taxpayer (whether owner or tenant), for either the construction of a green building or the rehabilitation of a building which is not a green building to be a green building. Provided, however, the credit component shall not exceed the maximum amount specified in the initial credit component certificate. The applicable percentage shall be 1.4 percent, except that if the building is located in an economic development area, the applicable percentage shall be 1.6 percent. The credit component amount so determined shall be allowed for the credit allowance year, but only if (A) the taxpayer has obtained and filed both an initial credit component certificate and an eligibility certificate issued pursuant to subdivision (c) of this section, (B) a certificate of occupancy for the building has been issued and (C) where the credit allowance year is a year described in subparagraph (B) of paragraph two-a of subdivision (b) of this section, the green building or rehabilitation remains in service during such year. Such credit component amount shall be allowed also for each of the next four succeeding taxable years with respect to which the taxpayer has obtained and filed an eligibility certificate pursuant to subdivision (c) of this section. Provided, further, the allowable costs may not exceed, in the aggregate, one hundred fifty dollars per square foot with respect to the portion of the building which comprises the base building and seventy-five dollars per square foot with respect to the portion of the building which comprises the tenant space. (3) Green base building credit component. The green base building credit component shall be equal to the applicable percentage of the allowable costs paid or incurred by the taxpayer, if the owner, for either the construction of a green base building or for the rehabilitation of a base building which is not a green base building to be a green base building. Provided, however, the credit component shall not exceed the maximum amount specified in the initial credit component certificate. The applicable percentage shall be one percent, except that if the building is located in an economic development area, the applicable percentage shall be 1.2 percent. The credit component amount so determined shall be allowed for the credit allowance year, but only if (A) the taxpayer has obtained and filed both an initial credit component certificate and an eligibility certificate issued pursuant to subdivision (c) of this section, (B) a certificate of occupancy for the building has been issued and (C) where the credit allowance year is a year described in subparagraph (B) of paragraph two-a of subdivision (b) of this section, the green base building or rehabilitation of a base building remains in service during such year. Such credit component amount shall be allowed also for each of the next four succeeding taxable years with respect to which the taxpayer has obtained and filed an eligibility certificate pursuant to subdivision (c) of this section. Provided, further, the allowable costs for the base building may not exceed, in the aggregate, one hundred fifty dollars per square foot. (4) Green tenant space credit component. The green tenant space credit component shall be equal to the applicable percentage of allowable costs for tenant improvements paid or incurred by the taxpayer (whether owner or tenant) in constructing (including completing) tenant space, or rehabilitating tenant space which is not green tenant space to be green tenant space. Provided, however, the credit component shall not exceed the maximum amount specified in the initial 12096859.2 credit component certificate. The applicable percentage shall be one percent, except that if the building is located in an economic development area the applicable percentage shall be 1.2 percent. Provided, however, that the owner, or a tenant who occupies fewer than ten thousand square feet, shall qualify for such green tenant space credit component only in the event that the base building is a green base building. The credit component amount so determined shall be allowed for the credit allowance year, but only if (A) the taxpayer has obtained and filed an initial credit component certificate and an eligibility certificate issued pursuant to subdivision (c) of this section and (B) where the credit allowance year is a year described in subparagraph (B) of paragraph two-a of subdivision (b) of this section, the construction, completion or rehabilitation remains in service during such year. Such credit component amount shall be allowed also for each of the next four succeeding taxable years with respect to which the taxpayer has obtained and filed an eligibility certificate pursuant to subdivision (c) of this section. Provided, however, the allowable costs for tenant space shall not exceed, in the aggregate, seventy-five dollars per square foot. In the event that both an owner and tenant incur such costs for tenant space with respect to the same tenant space and such costs in the aggregate exceed seventy-five dollars per square foot, the owner shall have priority as to costs constituting the basis for the green tenant space credit component. (5) Fuel cell credit component. A fuel cell credit component shall be allowed for the installation of a fuel cell which is a qualifying alternate energy source, installed to serve a green building, green base building or green tenant space. The amount of the credit component shall be six percent of the sum of the capitalized costs paid or incurred by the taxpayer with respect to each fuel cell installed to serve such building or space, including the cost of the foundation or platform and the labor cost associated with installation, such capitalized costs not to exceed one thousand dollars per kilowatt of installed DC rated capacity. Provided, however, the credit component shall not exceed the maximum amount specified in the initial credit component certificate. The fuel cell credit component amount so determined shall be allowed for the credit allowance year, but only if (A) the taxpayer has obtained and filed an initial credit component certificate and an eligibility certificate issued pursuant to subdivision (c) of this section and (B) where the credit allowance year is a year described in subparagraph (B) of paragraph two-a of subdivision (b) of this section, the fuel cell remains in service during such year. Such credit component amount shall be allowed also with respect to each of the four taxable years next following during which the fuel cell remains in service. Provided, however, that the amount of any federal, state or local grant received by the taxpayer and used for the purchase and/or installation of such fuel cell and which was not included in the federal gross income of the taxpayer shall be subtracted from the amount of such cost. (6) Photovoltaic module credit component. A photovoltaic module credit component shall be allowed for the installation of photovoltaic modules which constitute a qualifying alternate energy source installed to serve a green building, green base building or green tenant space. The amount of the credit component shall be twenty percent of the incremental cost paid or incurred by the taxpayer for building-integrated photovoltaic modules and five percent of the cost of nonbuilding-integrated photovoltaic modules, in either case such cost not to exceed the product of (i) three dollars and (ii) the number of watts included in the DC rated capacity of the photovoltaic modules. Provided, however, the credit component shall not exceed the maximum amount specified in the initial credit component certificate. The credit component amount so determined 12096859.2 shall be allowed for the credit allowance year, but only if (A) the taxpayer has obtained and filed an initial credit component certificate and an eligibility certificate issued pursuant to subdivision (c) of this section and (B) where the credit allowance year is a year described in subparagraph (B) of paragraph two-a of subdivision (b) of this section, the modules remain in service during such year. Such credit amount shall be allowed also for the four taxable years next following during which the modules remain in service. Provided, however, that the amount of any federal, state or local grant received by the taxpayer and used for the purchase and/or installation of such photovoltaic equipment and which was not included in the federal gross income of the taxpayer shall be subtracted from the amount of such cost. (7) Green refrigerant component. A green refrigerant component shall be allowed for new air conditioning equipment (including chillers and absorption chillers, water or air cooled unitary equipment, water-cooled heat pumps, packaged terminal heat pumps, air conditioners, and other similar air conditioning equipment) that uses an EPA-approved non-ozone depleting refrigerant installed to serve a green building, green base building or green tenant space. The amount of the credit component shall be two percent of the cost of such air conditioning equipment. The commissioner of environmental conservation, in consultation with NYSERDA, shall promulgate regulations concerning the eligibility of other EPA-approved refrigerants to receive a credit pursuant to this paragraph. Provided, however, the credit component shall not exceed the maximum amount specified in the initial credit component certificate. The green refrigerant component amount so determined shall be allowed for the credit allowance year, but only if (A) the taxpayer has obtained and filed an initial credit component certificate and an eligibility certificate issued pursuant to subdivision (c) of this section, and (B) where the credit allowance year is a year described in subparagraph (B) of paragraph two-a of subdivision (b) of this section, the air conditioning equipment remains in service. Such credit component amount shall be allowed also with respect to each of the four taxable years next following during which the air conditioning equipment remains in service. (b) Definitions. As used in this section, the following terms shall have the following meanings: (1) “Allowable costs” means amounts properly chargeable to capital account (other than for land), which are paid or incurred on or after June first, nineteen hundred ninety-nine, for: construction or rehabilitation; commissioning costs; interest paid or incurred during the construction or rehabilitation period; legal, architectural, engineering and other professional fees allocable to construction or rehabilitation; closing costs for construction, rehabilitation or mortgage loans; recording taxes and filing fees incurred with respect to construction or rehabilitation; site costs (such as temporary electric wiring, scaffolding, demolition costs, and fencing and security facilities); and costs of furniture, carpeting, partitions, walls and wall coverings, ceilings, drapes, blinds, lighting, plumbing, electrical wiring and ventilation; provided that such costs shall not include the cost of telephone systems and computers (other than electrical wiring costs) and shall not include the cost of fuel cells or photovoltaic modules (including installation) or the cost of new air conditioning equipment using an EPA-approved non-ozone depleting refrigerant or other EPA-approved refrigerant approved by the commissioner of environmental conservation (excluding installation). (2) “Base building” means all areas of a building not intended for occupancy by a tenant or owner, including but not limited to the structural components of the building, exterior walls, floors, windows, roofs, foundations, chimneys and stacks, parking areas, mechanical rooms and 12096859.2 mechanical systems, and owner-controlled and/or operated service spaces, sidewalks, main lobby, shafts and vertical transportation mechanisms, stairways and corridors. (2-a) “Credit allowance year” means the later of (A) the taxable year during which the property, construction, completion or rehabilitation referred to in paragraphs two through seven of subdivision (a) of this section has been placed in service or has received a final certificate of occupancy or (B) the first taxable year with respect to which the credit may be claimed pursuant to the initial credit component certificate issued pursuant to subdivision (c) of this section. (3) “Commissioning” means the testing and fine-tuning of heat, ventilating and air conditioning and other systems to assure proper functioning and adherence to design criteria and the preparation of system operation manuals and instruction of maintenance personnel. (4) “DEC” means the New York state department of environmental conservation. “DOH” means the New York state department of health. “EPA” means the United States environmental protection agency. (5) “Economic development area” means an area which is designated (A) an empire zone pursuant to article eighteen-B of the general municipal law or (B) an empowerment zone or enterprise community pursuant to section 1391 of the Internal Revenue Code. (6) “Eligible building” means a building located in this state which is: (A) classified B2, B3, B4, C1, C2, C5, or C6 for purposes of the New York state uniform fire prevention and building code or similarly classified under any subsequent code; provided that any such building contains at least twenty thousand square feet of interior space, or (B) a residential multi-family building with at least twelve dwelling units that contain at least twenty thousand square feet of interior space, or (C) one or more residential multi-family buildings with at least two dwelling units that are part of a single or phased construction project that contains, in the aggregate, at least twenty thousand square feet of interior space; provided that in any single phase of such project at least ten thousand square feet of interior space is under construction or rehabilitation, or (D) any combination of buildings described in subparagraphs (A), (B) and (C) of this paragraph, and (E) is not a building located on freshwater wetlands or tidal wetlands the construction of which requires a permit under section 24-0701 or 25-0403, respectively, of the environmental conservation law, or on wetlands such that the construction thereof requires a permit pursuant to section 404 of the federal clean water act (33 U.S.C. § 1344). (7) “Energy code” means the New York state energy conservation construction code. 12096859.2 (8) “Fuel cell” means a device that produces electricity directly from hydrogen or hydrocarbon fuel through a non-combustive electro-chemical process. (9) “Green base building” means a base building which is part of an eligible building and which meets the following standards: (A) Energy and energy efficiency. (i) Energy use is no more than sixty-five percent (in the case of new construction of a base building) or seventy-five percent (in the case of rehabilitation of a base building) of the use permitted under the energy code or, in the event such standard is revised or superseded, energy use shall meet such other energy efficiency standards that DEC, in consultation with NYSERDA, shall establish in regulations promulgated pursuant to paragraph one of subdivision (e) of this section, in effect at the time the base building or rehabilitation thereof is placed in service. (ii) All appliances and any heating, cooling and water heating equipment used in the base building and subject to the regulations promulgated by DEC, in consultation with NYSERDA, pursuant to paragraph one of subdivision (e) of this section, shall meet the standards established by such regulations in effect at the time the base building or rehabilitation thereof is placed in service. (B) Zoning, indoor air quality, building materials, finishes and furnishings. (i) The base building shall comply with all applicable zoning, land use and erosion control requirements, stormwater management ordinances, building code requirements and environmental regulations. In the case of the rehabilitation of an existing building, all existing environmental hazards shall be identified and managed in accordance with applicable laws, regulations and industry guidelines. (ii) Buildings classified B2, B3, B4, C1, C2, C5, or C6, for purposes of the New York state uniform fire prevention and building code, or similarly classified under any subsequent code, shall meet the following indoor air quality requirements: (I) ventilation and exchange of indoor/outdoor air shall meet the standards established by regulations promulgated by DEC, in consultation with DOH and NYSERDA, pursuant to paragraph two of subdivision (e) of this section; (II) if smoking is permitted in specific areas of the building, separate air ventilation and circulation shall be provided for smoking and non-smoking areas; (III) the ventilation system shall include an air purging system that is capable of replacing one hundred percent of the air on any floor, on a minimum of two floors at a time. The air shall be purged for a period of one week on every floor immediately prior to initial occupancy and on any floor that undergoes renovation immediately prior to re-occupancy; provided that, if a taxpayer obtains certification from a licensed architect, engineer, certified industrial hygienist, or other licensed or certified professional whom the commissioner of environmental conservation shall approve, pursuant to regulations, verifying that off-gassing and any other contamination can be reduced to comparable levels in less than one week, the period of purging may be shortened. The 12096859.2 taxpayer shall maintain a copy of such certification in accordance with the provisions of subdivision (d) of this section. (C) Building fresh air intake shall be located a minimum of twenty-five feet away from loading areas, building exhaust fans, cooling towers and other point sources of contamination. (D) During construction or rehabilitation, the ventilation system components and pathways shall be protected from contamination in accordance with an indoor air quality management plan for the construction or rehabilitation process that meets the standards established in regulations promulgated by DEC, in consultation with DOH and NYSERDA, pursuant to paragraph two of subdivision (e) of this section. In the event that such areas are not protected from contamination in accordance with such standards, they shall be cleaned prior to occupancy. (E) A licensed engineer, certified industrial hygienist, or other licensed or certified professional whom the commissioner of environmental conservation shall approve, pursuant to regulations, shall conduct indoor air quality testing with respect to the entire building immediately following occupancy, if any, and on an annual basis, to monitor supply and return air and ambient air for carbon monoxide, carbon dioxide, total volatile organic compounds, radon, and particulate matter. Provided, however, once radon measurements have been found to be satisfactory, subsequent annual testing is not required. The taxpayer shall record baseline readings immediately following occupancy, if any, and annually thereafter. In the event that the taxpayer does not establish that during a taxable year during which any part of the building is occupied, indoor air quality met the standards established in regulations promulgated by DEC, in consultation with DOH and NYSERDA, pursuant to paragraph two of subdivision (e) of this section, the base building shall not constitute a green base building. (F) The mechanical plant of the building shall be commissioned in accordance with the standards established in regulations promulgated by DEC, in consultation with NYSERDA, pursuant to subparagraph (D) of paragraph one of subdivision (e) of this section, which standards shall be informed by documents such as ASHRAE G-1 and the United States general services administration “Model Commissioning Plan and Guide Specifications”. For purposes of this subparagraph the term “ASHRAE” means the American society of heating, refrigerating and air conditioning engineers. (G) Separate waste disposal chutes or a carousel compactor system for recyclable materials shall be provided for the recycling of waste by occupants, or recycling shall be otherwise facilitated by, at a minimum, providing a readily accessible designated collection area or areas with sufficient space to store recyclable materials separately between collection dates. (H) All plumbing fixtures in the public areas of the building shall meet the plumbing fixture requirements of the energy policy act of 1992 or any successor provision in effect at the time the building or rehabilitation is placed in service. (I) Prior to initial occupancy and upon request, the owner of the building shall provide each tenant with (1) written notification of the opportunity to apply for a tax credit pursuant to this 12096859.2 section and (2) written guidelines regarding opportunities to improve the energy efficiency and air quality of tenant space and to reduce and recycle waste streams. (J) All building materials, finishes and furnishings used in the base building and subject to the regulations promulgated by DEC, in consultation with NYSERDA, pursuant to subparagraph (A) of paragraph three of subdivision (e) of this section, shall meet the standards established by such regulations in effect at the time the building or rehabilitation is placed in service; provided further that with respect to furnishings, this requirement shall apply only to newly purchased items. (K) All tenant space in the building occupied by the owner must be green tenant space. (10) “Green building” means a building wherein the base building is a green base building and all tenant space is green tenant space. (11) “Green tenant space” means tenant space in a building if such building is an eligible building and if such tenant space complies with the following requirements: (A) Energy and energy efficiency. (i) Energy use for tenant space is no more than sixty-five percent (in the case of new construction) or seventy-five percent (in the case of rehabilitation) of the use permitted under the energy code or, in the event such standard is revised or superseded, energy use shall meet such other energy efficiency standards that DEC, in consultation with NYSERDA, shall establish in regulations promulgated pursuant to paragraph one of subdivision (e) of this section, in effect at the time the improvements with respect to which a tax credit is claimed are placed in service. (ii) All appliances and any heating, cooling and water heating equipment used in the tenant space and subject to the regulations promulgated by DEC, in consultation with NYSERDA, pursuant to paragraph one of subdivision (e) of this section shall meet the standards established by such regulations or, in the event that such standards are revised, the standards in effect at the time the improvements with respect to which a tax credit is claimed are placed in service. (B) Code requirements, indoor air quality, building materials, finishes and furnishings. (i) The tenant space shall comply with all applicable building code requirements and environmental regulations and, with respect to projects other than new construction, all existing environmental hazards shall be identified and managed in accordance with applicable laws, regulations and industry guidelines. (ii) In the case of buildings classified B2, B3, B4, C1, C2, C5, or C6, for purposes of the New York state uniform fire prevention and building code, or similarly classified under any subsequent code, ventilation and exchange of indoor/outdoor air shall meet the standards established in regulations promulgated by DEC, in consultation with DOH and NYSERDA, pursuant to paragraph two of subdivision (e) of this section. 12096859.2 (iii) For buildings in which smoking is permitted, the taxpayer shall ensure that, if smoking is permitted in the tenant space, it is permitted only in areas in which the air ventilation and circulation is separate from that for non-smoking areas. (iv) During construction or rehabilitation, the ventilation system components and pathways shall be protected from contamination in accordance with an indoor air quality management plan for the construction or rehabilitation process that meets the standards established in regulations promulgated by DEC, in consultation with DOH and NYSERDA, pursuant to paragraph two of subdivision (e) of this section. In the event that such areas are not protected from contamination in accordance with such standards, they shall be cleaned prior to occupancy. (v) A licensed engineer, certified industrial hygienist, or other licensed or certified professional whom the commissioner of environmental conservation shall approve, pursuant to regulations, shall conduct indoor air quality testing with respect to the tenant space immediately following occupancy, if any, and on an annual basis, to monitor supply and return air and ambient air for carbon monoxide, carbon dioxide, total volatile organic compounds, radon, and particulate matter. Provided, however, once radon measurements have been found to be satisfactory, subsequent annual testing is not required. The taxpayer shall record baseline readings immediately following occupancy, if any, and annually thereafter. In the event that the taxpayer does not establish that during a taxable year during which the tenant space is occupied, indoor air quality met the standards established in regulations promulgated by DEC, in consultation with DOH and NYSERDA, pursuant to paragraph two of subdivision (e) of this section, the tenant space shall not constitute green tenant space. (vi) All plumbing fixtures in the tenant space shall meet the plumbing fixture requirements of the energy policy act of 1992 or successor provision in effect at the time the improvements with respect to which a tax credit is claimed are placed in service. (vii) All building materials, finishes and furnishings selected for use in the tenant space and subject to the regulations promulgated by DEC, in consultation with NYSERDA, pursuant to subparagraph (A) of paragraph three of subdivision (e) of this section, shall meet the standards established by such regulations or, in the event that such standards are revised, the standards in effect at the time the improvements with respect to which a tax credit is claimed are placed in service, provided that, with respect to furnishings, this requirement shall apply only to newly purchased items. (12) “Incremental cost of building-integrated photovoltaic modules” means: (A) the cost of building-integrated photovoltaic modules and any associated inverter, additional wiring or other electrical equipment or additional mounting or structural materials, less the cost of spandrel glass or other building material that would have been used in the event that buildingintegrated photovoltaic modules were not installed, (B) incremental labor costs properly allocable to on-site preparation, assembly and original installation of photovoltaic modules, and 12096859.2 (C) incremental architectural and engineering services and designs and plans directly related to the construction or installation of photovoltaic modules. (13) “NYSERDA” means the New York state energy research and development authority. (14) “Qualifying alternate energy sources” means building-integrated and non-buildingintegrated photovoltaic modules and fuel cells installed to serve the base building or tenant space which have the capability to monitor their AC output, and which are validated upon installation, and annually thereafter, to ensure that such systems meet their design specifications. (15) “Tenant improvements” means improvements which are necessary or appropriate to support or conduct the business of a tenant or occupying owner. (16) “Tenant space” means the portion of a building intended for occupancy by a tenant or occupying owner. (c) Certifications. (1) Initial credit component certificate. Upon application by a taxpayer, DEC shall issue an initial credit component certificate where the taxpayer has made a showing that the taxpayer is likely within a reasonable time to place in service property which would warrant the allowance of a credit under this section. Such certificate shall state the first taxable year for which the credit may be claimed and an expiration date, and shall apply only to property placed in service by such expiration date. Such expiration date may be extended at the discretion of DEC, in order to avoid unwarranted hardship. Such certificates shall state the maximum amount of credit component allowable for each of the five taxable years for which the credit component is allowed, under paragraphs two through seven of subdivision (a) of this section. (a) Period one. Initial credit component certificates for period one may be issued in years 20002004. Such certificates for period one shall not be issued, in the aggregate, for more than twentyfive million dollars worth of credit components. In addition, such certificates for period one shall be limited in their applicability, as follows: Credit components in the aggregate shall not be With respect to taxable years beginning allowed for more than: in: $ 1 million 2001 $ 2 million 2002 $ 3 million 2003 $ 4 million 2004 $ 5 million 2005 $ 4 million 2006 $ 3 million 2007 $ 2 million 2008 $ 1 million 2009 Provided, however, that if as of the end of a calendar year, certificates for credit component amounts totalling less than the amount permitted with respect to taxable years commencing in 12096859.2 such calendar year have been issued, then the amount permitted with respect to taxable years commencing in the subsequent calendar year shall be augmented by the amount of such shortfall. (b) Period two. Initial credit component certificates for period two may be issued in years 20052009. Such certificates for period two shall not be issued, in the aggregate, for more than twentyfive million dollars worth of credit components. The total amount of credit component allowable for the five taxable years for which the credit components are allowed, as set forth on any one initial credit component certificate, shall be limited to two million dollars. However, a taxpayer that is the owner or tenant of more than one building that qualifies for the credits provided for under this section may be issued initial credit component certificates with respect to each such building with the aggregate amount of credit components permitted for each such certificate being two million dollars. Provided further, a taxpayer that is the owner or tenant of a building for which an initial credit component certificate was issued for period one, shall not be issued an initial credit component certificate with respect to such building for period two. In addition, such certificates for period two shall be limited in their applicability, as follows: Credit components in the aggregate shall not be allowed for more than: With respect to taxable years beginning in: $ 1 million 2006 $ 2 million 2007 $ 3 million 2008 $ 4 million 2009 $ 5 million 2010 $ 4 million 2011 $ 3 million 2012 $ 2 million 2013 $ 1 million 2014 Provided, however, that if as of the end of a calendar year, certificates for credit component amounts totaling less than the amount permitted with respect to taxable years commencing in such calendar year have been issued, then the amount permitted with respect to taxable years commencing in the subsequent calendar year shall be augmented by the amount of such shortfall. Provided, further, that if at the end of calendar year two thousand nine, certificates for credit component amounts issued by the DEC have totaled less than twenty-five million dollars for calendar years 2005-2009, then the period to issue initial credit component certificates shall be extended to the end of calendar year two thousand ten and the DEC shall be permitted to issue in two thousand ten initial credit component certificates for amounts that equal the difference between the amounts issued for calendar years 2005-2009 and twenty-five million dollars. (c) For purposes of either period one or two, if a taxpayer who is issued an initial credit component certificate is unable to claim as a credit any amount of credit component (i) such amount of unclaimed credit component may be allocated to another taxpayer that has already been issued an initial credit component certificate with such certificate being reissued to reflect the amount so allocated, provided that such other taxpayer applied for and would have qualified for such additional amount, and with respect to period two the initial credit component certificate 12096859.2 of such other taxpayer as augmented does not exceed the two million dollar limit, or as an alternative (ii) the DEC may issue to other applicants new initial credit component certificates which include such amounts of unclaimed credit components. If a taxpayer is unable to claim all or a portion of the amount of credit components after the close of the last calendar year for which initial credit component certificates may be issued, the DEC shall have twelve months to accept applications for and issue initial credit component certificates for such amount of unclaimed credit components. (2) Eligibility certificate. For each taxable year for which a taxpayer claims a credit under this section with respect to a green building, green base building or green tenant space, a fuel cell, or photovoltaic modules, or air conditioning equipment using an EPA-approved non-ozone depleting refrigerant or other EPA-approved refrigerant approved by the commissioner of environmental conservation, the taxpayer shall obtain from an architect or professional engineer licensed to practice in this state an eligibility certificate. Such certificate shall consist of a certification, under the seal of such architect or engineer, that the building, base building or tenant space with respect to which the credit is claimed is a green building, green base building or green tenant space, respectively, that the fuel cell or photovoltaic modules constitute qualifying alternate energy sources and that the air conditioning equipment uses an EPAapproved non-ozone depleting refrigerant or other EPA-approved refrigerant approved by the commissioner of environmental conservation and remains in service. Such certification shall be made in accordance with the standards and guidelines in effect at the time the property which is the basis for the credit was placed in service. Such certification shall set forth the specific findings upon which the certification was based. The taxpayer shall file such certificate, and the associated initial credit component certificate, with the claim for credit and shall file duplicate copies with DEC. Such certificate shall include sufficient information to identify each building or space, and such other information as DEC and the commissioner shall prescribe. (3) Wrongful certification. If DEC has reason to believe that an architect or professional engineer, in making any certification under this subdivision, engaged in professional misconduct, then DEC shall so inform the education department. (d) Other requirements; miscellaneous. (1) Record keeping. Each taxpayer shall, for any taxable year for which the green building credit provided for under this section is claimed, maintain records of the following information: (A) annual energy consumption for building, base building or tenant space; (B) annual results of air monitoring; (C) annual confirmation that the building, base building or tenant space continues to meet requirements regarding smoking areas, if provided; (D) tenant guidelines referred to in subparagraph (I) of paragraph nine of subdivision (b) of this section, if applicable; (E) all written notification of tenants and requests to remedy any indoor air quality problems; 12096859.2 (F) initial and annual (by month) results of validation of performance of photovoltaic modules and fuel cells; and (G) certifications as to off-gassing and other contamination, as prescribed in subclause (III) of clause (ii) of subparagraph (B) of paragraph nine of subdivision (b) of this section, where applicable. (2) Reporting to DEC. Each taxpayer shall also provide to DEC the information described in paragraph one of this subdivision, in the form and at the time prescribed by DEC, such time to be determined in consultation with the commissioner. Such information shall be provided to DEC with respect to each taxable year with respect to which the taxpayer claims a credit under this section. (3) Regulations. The commissioner, the commissioner of environmental conservation and the commissioner of education are hereby authorized to promulgate and adopt regulations necessary to the implementation of this section. Such regulations shall construe the provisions of this section in such a manner as to encourage the development of green buildings, green base buildings and green tenant space and to maintain high but commercially reasonable standards for obtaining tax credits hereunder. Such regulations shall establish a reasonable time or period of time for submission of applications, and shall establish a method for allocating initial credit component certificates among eligible applicants. Regulations, standards or requirements adopted pursuant to this section shall apply only to a “green base building” as defined in paragraph nine of subdivision (b) of this section, a “green building” as defined in paragraph ten of subdivision (b) or “green tenant space” as defined in paragraph eleven of subdivision (b) of this section. (4) Report. For period one, on or before April first, two thousand eleven, the commissioner and the commissioner of DEC, jointly and in consultation with NYSERDA, shall submit a written report regarding the number of certifications and taxpayers claiming the credit provided for under this section; the amount of the credits claimed, the geographical distribution of the credits claimed; and any other such available information DEC may deem meaningful and appropriate. A preliminary version of such report for period one shall be so issued by April first, two thousand five. For period two, on or before April first, two thousand sixteen the commissioner and the commissioner of DEC, jointly and in consultation with NYSERDA, shall submit a written report regarding the number of certificates and taxpayers claiming the credit provided for under this section; the amount of the credits claimed, the geographical distribution of the credits claimed; and any other such available information DEC may deem meaningful and appropriate. A preliminary version of such report for period two shall be issued by April first, two thousand ten. The commissioner and the commissioner of DEC shall ensure that the information is presented and/or classified in a manner consistent with the secrecy requirements of this chapter. DEC shall also make recommendations regarding the establishment of a permanent green building tax credit program. Recommendations may include methods to enhance the effectiveness, simplicity or other aspects of the program. The report shall be submitted to the governor, the temporary president of the senate, the speaker of the assembly, the chairman of the senate finance committee and the chairman of the assembly ways and means committee. 12096859.2 (e) Standards and regulations. (1) Energy standards: base buildings. Within six months of the effective date of this section, DEC, in consultation with NYSERDA, shall promulgate the following, with respect to base buildings: (A) regulations establishing standards for energy use for eligible buildings. DEC, in consultation with NYSERDA shall review and update such regulations if deemed necessary at least every two years from the date on which such regulations are promulgated. (B) regulations establishing standards for appliances and heating, cooling and water heating equipment that, on the effective date of this section, are covered by specifications from organizations such as the United States department of energy or environmental protection agency. The development of such regulations shall be informed by such specifications. DEC, in consultation with NYSERDA shall review and update such regulations if deemed necessary at least every two years from the date on which such regulations are promulgated. (C) regulations indicating the methodology by which a taxpayer shall demonstrate compliance with subparagraph (A) of paragraph nine of subdivision (b) of this section. Such regulations shall include, at a minimum, a requirement to conduct hourly computer modeling for one full year. (D) regulations establishing standards for the commissioning of buildings. (2) Indoor air standards: base buildings. Within six months of the effective date of this section, DEC, in consultation with DOH and NYSERDA, shall promulgate regulations establishing standards, with respect to base buildings, for (A) ventilation and exchange of indoor/outdoor air, (B) indoor air quality management plans for the construction or rehabilitation process, and (C) indoor air quality with respect to levels of carbon monoxide, carbon dioxide and total volatile organic compounds, radon and particulate matter. (3) Standards for materials, water conservation, drainage: base buildings. Within one year of the effective date of this section, DEC, in consultation with NYSERDA, shall promulgate the following, with regard to base buildings: (A) regulations establishing standards for building materials, finishes and furnishings regarding minimum percentages of recycled content and renewable source material and maximum levels of toxicity and volatile organic compounds and any other standards that the DEC deems appropriate. Standards shall be developed for building materials, finishes and furnishings, including but not limited to concrete and concrete masonry units; wood and wood products; millwork substrates; insulation; ceramic, ceramic/glass and cementitious tiles; ceiling tiles and panels; flooring and carpet; paints, coatings, sealants and adhesives; and furniture. The development of such standards shall be informed by the LEED rating system. The DEC shall review and update such regulations if deemed necessary at least every two years from the date on which such regulations are promulgated. For purposes of this clause, “LEED rating system” means the leadership in energy and environmental design green building rating system criteria being developed by the United States green building council. 12096859.2 (B) regulations establishing standards for buildings located in areas where water use is not metered, which regulations shall require, at a minimum, that the building include one of the following features: (i) a gray water system that recovers non-sewage waste water or uses roof or ground storm water collection systems, or recovers ground water from sump pumps; (ii) for buildings with a cooling tower system, such system shall be designed with delimiters to reduce drift and evaporation; or (iii) for buildings with exterior plants, all such plants shall be tolerant of climate, soils and natural water availability and shall not receive watering from municipal potable water after a period of establishment is complete. (C) regulations establishing standards for buildings located in areas that do not have sewers or that have designated storm sewers, which regulations shall require, at a minimum, that the building shall include one of the following features: (i) an oil grit separator or water quality pond for pretreatment of runoff from any surface parking areas; or (ii) at least fifty percent of nonlandscaped areas (including roadways, surface parking, plazas and pathways), if any, shall be comprised of pervious paving materials. (D) regulations indicating the methodology by which taxpayers shall demonstrate compliance with subparagraphs (B) and (C) of paragraph nine of subdivision (b) of this section. (4) Energy standards: tenant space. Within six months of the effective date of this section, DEC, in consultation with NYSERDA, shall promulgate regulations, with respect to tenant space, indicating the methodology by which taxpayers shall demonstrate compliance with subparagraph (A) of paragraph eleven of subdivision (b) of this section. (5) Standards for indoor air quality, building materials, finishes and furnishings: tenant space. Within one year of the effective date of this section, DEC, in consultation with DOH and NYSERDA, shall promulgate regulations, with respect to tenant space, indicating the methodology by which taxpayers shall demonstrate compliance with subparagraph (B) of paragraph eleven of subdivision (b) of this section. (f) [Eff. until Jan. 2015. See, also, subd. (f) below.] Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter: (1) Article nine: Section one hundred eighty-seven-d; (2) Article nine-A: Subdivision thirty-one of section two hundred ten; (3) Article twenty-two: Subsections (i) and (y) of section six hundred six; 12096859.2 (4) Article thirty-two: Subsection (m) of section fourteen hundred fifty-six; (5) Article thirty-three: Subdivision (o) of section fifteen hundred eleven. (f) [Eff. Jan. 1, 2015. See, also, subd. (f) above.] Cross-references. For application of the credit provided for in this section, see the following provisions of this chapter: (1) Article nine: Section one hundred eighty-seven-d; (2) Article nine-A: Subdivision sixteen of section two hundred ten-B; (3) Article twenty-two: Subsections (i) and (y) of section six hundred six; (4) Article thirty-three: Subdivision (o) of section fifteen hundred eleven. TAX - Tax Article 9 - CORPORATION TAX § 187-d. Green building credit. 1. [Eff. until Jan. 1, 2018. See, also, subd. 1, below.] Allowance of credit. A taxpayer shall be allowed a credit, to be computed as provided in section nineteen of this chapter, against the taxes imposed by sections one hundred eighty-three, one hundred eighty-four, one hundred eighty-five and one hundred eighty-six of this article. Provided, however, that the amount of such credit allowable against the tax imposed by section one hundred eighty-four of this article shall be the excess of the amount of such credit over the amount of any credit allowed by this section against the tax imposed by section one hundred eighty-three of this article. 1. [Eff. Jan. 1, 2018. See, also, subd. 1, above.] Allowance of credit. A taxpayer shall be allowed a credit, to be computed as provided in section nineteen of this chapter, against the taxes imposed by sections one hundred eighty-three, one hundred eighty-four and former section one hundred eighty-six of this article. Provided, however, that the amount of such credit allowable against the tax imposed by section one hundred eighty-four of this article shall be the excess of the amount of such credit over the amount of any credit allowed by this section against the tax imposed by section one hundred eighty-three of this article. 2. [Eff. until Jan. 1, 2018. See, also, subd. 2, below.] Carryovers. In no event shall the credit under this section be allowed in an amount which will reduce the tax payable to less than the applicable minimum tax fixed by section one hundred eighty-three, one hundred eighty-five or one hundred eighty-six of this article. If, however, the amount of credit allowable under this section for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year may be carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years. 2. [Eff. Jan. 1, 2018. See, also, subd. 2, above.] Carryovers. In no event shall the credit under this section be allowed in an amount which will reduce the tax payable to less than the applicable minimum tax fixed by section one hundred eighty-three or former section one hundred eighty-six of this article. If, however, the amount of credit allowable under this section for any taxable year reduces the tax to such amount, any amount of credit not deductible in such taxable year may be 12096859.2 carried over to the following year or years and may be deducted from the taxpayer's tax for such year or years. Public Buildings Law Chapter 44. Of the Consolidated Laws Article 4-C. State Green Building Construction Act § 83. Agency green building construction requirements 1. The construction of new buildings and the substantial renovation of existing buildings shall comply with such green construction requirements and procedures as shall have been established by the office in regulations pursuant to subdivision two of this section. 2. The office, in consultation with the authority, the department of environmental conservation, the department of health, the dormitory authority of the state of New York, the department of state, the department of education, the office of parks, recreation and historic preservation, and any other agency as determined by the office that may be affected by this article, shall promulgate rules and regulations establishing construction requirements and procedures necessary to implement this article, including the exceptions described in section eighty-two of this article. In establishing such requirements and procedures, the office may consult green construction requirements and procedures established or adopted by other agencies, and by private organizations, including but not limited to the United States green building council under its leadership in energy and environmental design programs, the green building initiative's green globes rating system, and the American National Standards Institute. 3. For purposes of monitoring compliance with this article and this article's effectiveness, each agency shall prepare by June thirtieth of each year an annual building performance report in such form and containing such information as the office may require, which may relate to such matters as energy consumption, waste reduction, indoor air quality, water reductions and maintenance procedures and processes. Such report shall be available to the office upon request. Real Property Tax Law Chapter 50-A. Of the Consolidated Laws Article 4. Exemptions Title 2. Private Property § 470. Exemption for improvements to real property meeting certification standards for green buildings 1. Construction of improvements to real property initiated on or after the first day of January, two thousand thirteen, meeting LEED certification standards for green buildings as provided in this section, the green building initiative's green globes rating system, the American National Standards Institute, or substantially equivalent standards for certification using a similar program for green buildings as determined by the municipal corporation, shall be exempt from taxation by any municipal corporation in which such property is located to the extent provided in this section, provided the governing board of such municipal corporation, after conducting a public hearing, adopts a local law, ordinance or resolution providing therefor. 12096859.2 2. Such real property, or portion thereof, which is certified under a LEED certification standard for the categories of certified, silver, gold or platinum as meeting green building standards, as determined by a LEED accredited professional shall be exempt as provided below for the respective percentages provided that a municipal corporation may establish a maximum exemption amount in its local law, ordinance or resolution, and provided further, a copy of the LEED certification for a qualified category is filed with the assessor's office and is approved by the assessor as meeting the requirements of this section and the municipal corporation's local law, ordinance or resolution. Such exemption shall be to the extent of any increase in assessed value resulting from the construction or reconstruction of a property meeting LEED certification. LEED EXEMPTION YEAR 1 2 3 4 5 6 7 8 9 10 CERTIFIED/SILVER 100% 100% 100% 80% 60% 40% 20% 0% 0% 0% GOLD 100% 100% 100% 100% 80% 60% 40% 20% 0% 0% PLATINUM 100% 100% 100% 100% 100% 100% 80% 60% 40% 20% 3. No such exemption shall be granted unless: (a) such construction of improvements was commenced on or after the first day of January, two thousand thirteen, or such later date as may be specified by local law; (b) the value of such construction exceeds the sum of ten thousand dollars; and (c) such construction is documented by a building permit, if required, for the improvements, or other appropriate documentation as required by the assessor. For purposes of this section the term “construction of improvements” shall not include ordinary maintenance and repairs. 4. If the assessor is satisfied that the applicant is entitled to an exemption pursuant to this section, he or she shall approve the application and such real property shall thereafter be exempt from taxation by the municipal corporation as provided in this section commencing with the assessment roll prepared after the taxable status date. The assessed value of any exemption granted pursuant to this section shall be entered by the assessor on the assessment roll with the taxable property, with the amount of the exemption shown in a separate column. Executive Order 111 Directing State Agencies To Be More Energy Efficient And Environmentally Aware "Green And Clean State Buildings And Vehicles" 12096859.2 WHEREAS, New York is dedicated to the mutually compatible goals of environmental protection and economic growth; WHEREAS, New York has adopted measures designed to allow energy markets to operate more competitively and has significantly reduced taxes in order to reduce energy costs and encourage continued economic growth; WHEREAS, the generation and use of energy has a significant impact on the environment, contributing to emissions of sulfur dioxide, nitrogen oxides, greenhouse gases, and other pollutants; WHEREAS, State government is a major consumer of energy, spending approximately $300 million per year and purchasing approximately 1500 new vehicles annually with a concomitant impact on the environment; and WHEREAS, it is appropriate that State government assume a leadership role in promoting the efficient use of energy and natural resources in the interest of the long-term protection and enhancement of our environment, our economy, and the health of our children and future generations of New Yorkers. NOW, THEREFORE, I, GEORGE E. PATAKI, Governor of the State of New York, by virtue of the authority vested in me by the Constitution and Laws of the State of New York, do hereby order as follows: I New Energy Efficiency Goals. All agencies and departments over which the Governor has Executive authority, and all public benefit corporations and public authorities the heads of which are appointed by the Governor (hereinafter referred to as "State agencies and other affected entities"), shall seek to achieve a reduction in energy consumption by all buildings they own, lease or operate of 35 percent by 2010 relative to 1990 levels. All state agencies and other affected entities shall establish agency wide reduction targets and associated schedules to reach this goal and shall also be responsible for establishing peak electric demand reduction targets for each state facility by 2005 and 2010. No buildings will be exempt from these goals except pursuant to criteria to be developed by the New York State Energy Research and Development Authority ("NYSERDA"), in consultation with the Division of the Budget ("DOB"), the Office of General Services ("OGS") and the Advisory Council on State Energy Efficiency ("Advisory Council") as established herein. II State Buildings Energy Efficiency Practices. A. Existing Buildings. Effective immediately, State agencies and other affected entities shall implement energy efficiency practices with respect to the operation and maintenance of all buildings that they own, lease or operate. 12096859.2 Such practices may include, but shall not be limited to: (1) shutting off office equipment when it is not being used; (2) adjusting the setting of space temperatures; (3) turning off lighting in unoccupied areas; (4) inspecting and re-commissioning or re-tuning heating, air conditioning and ventilation equipment to ensure optimal performance; and (5) cycling and restarting equipment on a staggered basis to shed electricity loads and minimize peak electricity demand usage. State agencies and other affected entities shall strive to meet the ENERGY STAR building criteria for energy performance and indoor environmental quality in their existing buildings to the maximum extent practicable. Within 180 days of the date of this Executive Order, NYSERDA shall develop guidelines to help agencies and other affected entities implement energy efficiency practices in their buildings. B. New Buildings and Substantial Renovation of Existing Buildings. In the design, construction, operation and maintenance of new buildings, State agencies and other affected entities shall, to the maximum extent practicable, follow guidelines for the construction of "Green Buildings," including guidelines set forth in Tax Law § 19, which created the Green Buildings Tax Credit, and the U.S. Green Buildings Council's LEED rating system. Effective immediately, State agencies and other affected entities engaged in the construction of new buildings shall achieve at least a 20 percent improvement in energy efficiency performance relative to levels required by the State's Energy Conservation Construction Code, as amended. For substantial renovation of existing buildings, State agencies and other affected entities shall achieve at least a ten percent improvement. State agencies and other affected entities shall incorporate energy-efficient criteria consistent with ENERGY STAR and any other energy efficiency levels as may be designated by NYSERDA into all specifications developed for a new construction and renovation. III Procurement of Energy-Efficient Products. Effective immediately, State agencies and other affected entities shall select ENERGY STAR energy-efficient products when acquiring new energy-using products or replacing existing equipment. NYSERDA shall adopt guidelines designating target energy efficiency levels for those products for which ENERGY STAR labels are not yet available. IV Purchase of Power from Renewable Sources. 12096859.2 State agencies and other affected entities with responsibility for purchasing energy shall increase their purchase of energy generated from the following technologies: wind, solar thermal, photovoltaics, sustainably managed biomass, tidal, geothermal, methane waste and fuel cells. State agencies and other affected entities shall seek to purchase sufficient quantities of energy from these technologies so that 10 percent of the overall annual electric energy requirements of buildings owned, leased or operated by State agencies and other affected entities will be met through these technologies by 2005, increasing to 20 percent by 2010. No agency or affected entity will be exempt from these goals except pursuant to criteria to be developed by NYSERDA, in consultation with DOB, OGS and the Advisory Council. V Procurement of Clean Fuel Vehicles. State agencies and other affected entities shall procure increasing percentages of alternative-fuel vehicles, including hybrid-electric vehicles, as part of their annual vehicle acquisition plans. By 2005, at least 50 percent of new light-duty vehicles acquired by each agency and affected entity shall be alternative-fueled vehicles, and by 2010, 100 percent of all new light-duty vehicles shall be alternative-fueled vehicles, with the exception of specialty, police or emergency vehicles as designated by DOB. State agencies and other affected entities that operate medium- and heavy duty vehicles shall implement strategies to reduce petroleum consumption and emissions by using alternative fuels and improving vehicle fleet fuel efficiency. VI Role of NYSERDA and Creation of the Advisory Council on State Energy Efficiency. NYSERDA shall coordinate implementation of this Executive Order and shall assist each agency and affected entity in the fulfillment of the responsibilities imposed herein in a costeffective manner. To assist NYSERDA in fulfilling the requirements imposed by this Executive Order, there is hereby established an Advisory Council on State Energy Efficiency consisting of the following members, who shall serve ex officio: • • • • • • • • • • • • • • the President of NYSERDA; the Director of the Division of the Budget; the Commissioners of OGS, the Department of Environmental Conservation, the Department of Correctional Services, the Office of Mental Health and the Department of Transportation; the Chairman of the Public Service Commission; the Chancellor of the State University of New York; the Secretary of State; the Chairman of the New York Power Authority; the Chairman of the Metropolitan Transportation Authority; the Executive Director of the Dormitory Authority; and the President of the Long Island Power Authority. The President of NYSERDA shall serve as the chair of the Advisory Council. The members of the Advisory Council may designate one or more persons to act as their designee(s). 12096859.2 The Advisory Council shall meet regularly, but no less than twice a year, for the purpose of advising NYSERDA as to how it can best assist state agencies and other affected entities in achieving the goals of this Executive Order with the greatest degree of cooperative effort and effectiveness. Members of the Advisory Council shall receive no compensation but shall be entitled to reimbursement for any necessary expenses incurred in connection with the performance of their responsibilities. VII Assistance and Cooperation. Every agency and department over which the Governor has executive authority, and all public benefits corporations and public authorities the heads of which are appointed by the Governor, shall provide all reasonable assistance and cooperation requested by NYSERDA and the Advisory Council for the purpose of carrying out this order. Such assistance may include the assignment of staff and the provision of support services. VIII Participation of other governmental entities. Local governments and school districts that are not subject to the requirements of this Executive Order are encouraged to review their energy efficiency practices and procedures, to institute appropriate operational and maintenance modifications, and to accelerate the implementation of energy efficiency projects. NYSERDA, OGS, the New York Power Authority and the Long Island Power Authority are hereby directed to offer any assistance as may be appropriate to assist local governments and school districts to achieve the goals of this Executive Order, including, but not limited to, assistance with procurement. IX Repeal of Prior Executive Order. Executive Order No. 132, promulgated on January 2, 1990, and continued unamended and unmodified, is hereby revoked and superseded by this Executive Order as of the date hereof. Signed: George E. Pataki Dated: June 10, 2001 12096859.2 North Carolina (back to top) § 153A‑340. Grant of power. (a) For the purpose of promoting health, safety, morals, or the general welfare, a county may adopt zoning and development regulation ordinances. These ordinances may be adopted as part of a unified development ordinance or as a separate ordinance. A zoning ordinance may regulate and restrict the height, number of stories and size of buildings and other structures, the percentage of lots that may be occupied, the size of yards, courts and other open spaces, the density of population, and the location and use of buildings, structures, and land for trade, industry, residence, or other purposes. The ordinance may provide density credits or severable development rights for dedicated rights-of-way pursuant to G.S. 13666.10 or G.S. 136-66.11. (b) (1) These regulations may affect property used for bona fide farm purposes only as provided in subdivision (3) of this subsection. This subsection does not limit regulation under this Part with respect to the use of farm property for nonfarm purposes.. (2) Except as provided in G.S. 106-743.4 for farms that are subject to a conservation agreement under G.S. 106-743.2, bona fide farm purposes include the production and activities relating or incidental to the production of crops, grains, fruits, vegetables, ornamental and flowering plants, dairy, livestock, poultry, and all other forms of agriculture, as defined in G.S. 106-581.1. For purposes of this subdivision, “when performed on the farm” in G.S. 106-581.1(6) shall include the farm within the jurisdiction of the county and any other farm owned or leased to or from others by the bona fide farm operator, no matter where located. For purposes of this subdivision, the production of a nonfarm product that the Department of Agriculture and Consumer Services recognizes as a “Goodness Grows in North Carolina” product that is produced on a farm subject to a conservation agreement under G.S. 106-743.2 is a bona fide farm purpose. For purposes of determining whether a property is being used for bona fide farm purposes, any of the following shall constitute sufficient evidence that the property is being used for bona fide farm purposes: 12096859.2 a. A farm sales tax exemption certificate issued by the Department of Revenue. b. A copy of the property tax listing showing that the property is eligible for participation in the present use value program pursuant to G.S. 105-277.3. (3). c. A copy of the farm owner's or operator's Schedule F from the owner's or operator's most recent federal income tax return. d. A forest management plan. The definitions set out in G.S. 106-802 apply to this subdivision. A county may adopt zoning regulations governing swine farms served by animal waste management systems having a design capacity of 600,000 pounds steady state live weight (SSLW) or greater provided that the zoning regulations may not have the effect of excluding swine farms served by an animal waste management system having a design capacity of 600,000 pounds SSLW or greater from the entire zoning jurisdiction. (c) The regulations may provide that a board of adjustment may determine and vary their application in harmony with their general purpose and intent and in accordance with general or specific rules therein contained, provided no change in permitted uses may be authorized by variance. (c1) The regulations may also provide that the board of adjustment, the planning board, or the board of commissioners may issue special use permits or conditional use permits in the classes of cases or situations and in accordance with the principles, conditions, safeguards, and procedures specified therein and may impose reasonable and appropriate conditions and safeguards upon these permits. Where appropriate, the conditions may include requirements that street and utility rights-of-way be dedicated to the public and that recreational space be provided. When deciding special use permits or conditional use permits, the board of county commissioners or planning board shall follow quasi-judicial procedures. Notice of hearings on special or conditional use permit applications shall be as provided in G.S. 160A-388(a2). No vote greater than a majority vote shall be required for the board of county commissioners or planning board to issue such permits. For the purposes of this section, vacant positions on the board and members who are disqualified from voting on a quasi-judicial matter shall not be considered “members of the board” for calculation of the requisite majority. Every such decision of the board of county commissioners or planning board shall be subject to review of the superior court in the nature of certiorari consistent with G.S. 160A-388. (d) A county may regulate the development over estuarine waters and over lands covered by navigable waters owned by the State pursuant to G.S. 146‑12, within the bounds of that county. (e) For the purpose of this section, the term "structures" shall include floating homes. (f) Repealed by Session Laws 2005‑426, s. 5(b), effective January 1, 2006. 12096859.2 (g) A member of the board of county commissioners shall not vote on any zoning map or text amendment where the outcome of the matter being considered is reasonably likely to have a direct, substantial, and readily identifiable financial impact on the member. Members of appointed boards providing advice to the board of county commissioners shall not vote on recommendations regarding any zoning map or text amendment where the outcome of the matter being considered is reasonably likely to have a direct, substantial, and readily identifiable financial impact on the member. (h) As provided in this subsection, counties may adopt temporary moratoria on any county development approval required by law. county development approval required by law,1 except for the purpose of developing and adopting new or amended plans or ordinances as to residential uses. The duration of any moratorium shall be reasonable in light of the specific conditions that warrant imposition of the moratorium and may not exceed the period of time necessary to correct, modify, or resolve such conditions. Except in cases of imminent and substantial threat to public health or safety, before adopting an ordinance imposing a development moratorium with a duration of 60 days or any shorter period, the board of commissioners shall hold a public hearing and shall publish a notice of the hearing in a newspaper having general circulation in the area not less than seven days before the date set for the hearing. A development moratorium with a duration of 61 days or longer, and any extension of a moratorium so that the total duration is 61 days or longer, is subject to the notice and hearing requirements of G.S. 153A-323. Absent an imminent threat to public health or safety, a development moratorium adopted pursuant to this section shall not apply to any project for which a valid building permit issued pursuant to G.S. 153A-357 is outstanding, to any project for which a conditional use permit application or special use permit application has been accepted, to development set forth in a site-specific or phased development plan approved pursuant to G.S. 153A-344.1, to development for which substantial expenditures have already been made in good faith reliance on a prior valid administrative or quasi-judicial permit or approval, or to preliminary or final subdivision plats that have been accepted for review by the county prior to the call for public hearing to adopt the moratorium. Any preliminary subdivision plat accepted for review by the county prior to the call for public hearing, if subsequently approved, shall be allowed to proceed to final plat approval without being subject to the moratorium. Any ordinance establishing a development moratorium must expressly include at the time of adoption each of the following: (1) 12096859.2 A clear statement of the problems or conditions necessitating the moratorium and what courses of action, alternative to a moratorium, were considered by the county and why those alternative courses of action were not deemed adequate. (2) A clear statement of the development approvals subject to the moratorium and how a moratorium on those approvals will address the problems or conditions leading to imposition of the moratorium. (3) An express date for termination of the moratorium and a statement setting forth why that duration is reasonably necessary to address the problems or conditions leading to imposition of the moratorium. (4) A clear statement of the actions, and the schedule for those actions, proposed to be taken by the county during the duration of the moratorium to address the problems or conditions leading to imposition of the moratorium. No moratorium may be subsequently renewed or extended for any additional period unless the city shall have taken all reasonable and feasible steps proposed to be taken by the county in its ordinance establishing the moratorium to address the problems or conditions leading to imposition of the moratorium and unless new facts and conditions warrant an extension. Any ordinance renewing or extending a development moratorium must expressly include, at the time of adoption, the findings set forth in subdivisions (1) through (4) of this subsection, including what new facts or conditions warrant the extension. Any person aggrieved by the imposition of a moratorium on development approvals required by law may apply to the appropriate division of the General Court of Justice for an order enjoining the enforcement of the moratorium, and the court shall have jurisdiction to issue that order. Actions brought pursuant to this section shall be set down for immediate hearing, and subsequent proceedings in those actions shall be accorded priority by the trial and appellate courts. In any such action, the county shall have the burden of showing compliance with the procedural requirements of this subsection. (i) 12096859.2 In order to encourage construction that uses sustainable design principles and to improve energy efficiency in buildings, a county may charge reduced building permit fees or provide partial rebates of building permit fees for buildings that are constructed or renovated using design principles that conform to or exceed one or more of the following certifications or ratings: (1) Leadership in Energy and Environmental Design (LEED) certification or higher rating under certification standards adopted by the U.S. Green Building Council. (2) A One Globe or higher rating under the Green Globes program standards adopted by the Green Building Initiative. (3) A certification or rating by another nationally recognized certification or rating system that is equivalent or greater than those listed in subdivisions (1) and (2) of this subsection. (j) An ordinance adopted pursuant to this section shall not prohibit single-family detached residential uses constructed in accordance with the North Carolina State Building Code on lots greater than 10 acres in size in zoning districts where more than fifty percent (50%) of the land is in use for agricultural or silvicultural purposes, except that this restriction shall not apply to commercial or industrial districts where a broad variety of commercial or industrial uses are permissible. An ordinance adopted pursuant to this section shall not require that a lot greater than 10 acres in size have frontage on a public road or county-approved private road, or be served by public water or sewer lines, in order to be developed for single-family residential purposes. (k) A zoning or unified development ordinance may not differentiate in terms of the regulations applicable to fraternities or sororities between those fraternities or sororities that are approved or recognized by a college or university and those that are not. § 160A‑381. Grant of power. (a) For the purpose of promoting health, safety, morals, or the general welfare of the community, any city may adopt zoning and development regulation ordinances. These ordinances may be adopted as part of a unified development ordinance or as a separate ordinance. A zoning ordinance may regulate and restrict the height, number of stories and size of buildings and other structures, the percentage of lots that may be occupied, the size of yards, courts and other open spaces, the density of population, the location and use of buildings, structures and land. The ordinance may provide density credits or severable development rights for dedicated rights-of-way pursuant to G.S. 136-66.10 or G.S. 136-66.11. (b) Expired. (b1) These regulations may provide that a board of adjustment may determine and vary their application in harmony with their general purpose and intent and in accordance with general or specific rules therein contained, provided no change in permitted uses may be authorized by variance. (c) The regulations may also provide that the board of adjustment, the planning board, or the city council may issue special use permits or conditional use permits in the classes of cases or situations and in accordance with the principles, conditions, safeguards, and procedures specified therein and may impose reasonable and appropriate conditions and safeguards upon these permits. When deciding special use permits or conditional use permits, the city council or planning board shall follow quasi-judicial procedures. Notice of hearings on special or conditional use permit applications shall be as provided in G.S. 160A388(a2). No vote greater than a majority vote shall be required for the city council or planning board to issue such permits. For the purposes of this section, vacant positions on the board and members who are disqualified from voting on a quasi- 12096859.2 judicial matter shall not be considered “members of the board” for calculation of the requisite majority. Every such decision of the city council or planning board shall be subject to review of the superior court in the nature of certiorari in accordance with G.S. 160A-388. Where appropriate, such conditions may include requirements that street and utility rights‑of‑way be dedicated to the public and that provision be made of recreational space and facilities. (d) A city council member shall not vote on any zoning map or text amendment where the outcome of the matter being considered is reasonably likely to have a direct, substantial, and readily identifiable financial impact on the member. Members of appointed boards providing advice to the city council shall not vote on recommendations regarding any zoning map or text amendment where the outcome of the matter being considered is reasonably likely to have a direct, substantial, and readily identifiable financial impact on the member. (e) As provided in this subsection, cities may adopt temporary moratoria on any city development approval required by law, except for the purpose of developing and adopting new or amended plans or ordinances as to residential uses. The duration of any moratorium shall be reasonable in light of the specific conditions that warrant imposition of the moratorium and may not exceed the period of time necessary to correct, modify, or resolve such conditions. Except in cases of imminent and substantial threat to public health or safety, before adopting an ordinance imposing a development moratorium with a duration of 60 days or any shorter period, the governing board shall hold a public hearing and shall publish a notice of the hearing in a newspaper having general circulation in the area not less than seven days before the date set for the hearing. A development moratorium with a duration of 61 days or longer, and any extension of a moratorium so that the total duration is 61 days or longer, is subject to the notice and hearing requirements of G.S. 160A-364. Absent an imminent threat to public health or safety, a development moratorium adopted pursuant to this section shall not apply to any project for which a valid building permit issued pursuant to G.S. 160A-417 is outstanding, to any project for which a conditional use permit application or special use permit application has been accepted, to development set forth in a site-specific or phased development plan approved pursuant to G.S. 160A-385.1, to development for which substantial expenditures have already been made in good faith reliance on a prior valid administrative or quasi-judicial permit or approval, or to preliminary or final subdivision plats that have been accepted for review by the city prior to the call for public hearing to adopt the moratorium. Any preliminary subdivision plat accepted for review by the city prior to the call for public hearing, if subsequently approved, shall be allowed to proceed to final plat approval without being subject to the moratorium. Any ordinance establishing a development moratorium must expressly include at the time of adoption each of the following: 12096859.2 (1) A clear statement of the problems or conditions necessitating the moratorium and what courses of action, alternative to a moratorium, were considered by the city and why those alternative courses of action were not deemed adequate. (2) A clear statement of the development approvals subject to the moratorium and how a moratorium on those approvals will address the problems or conditions leading to imposition of the moratorium. (3) An express date for termination of the moratorium and a statement setting forth why that duration is reasonably necessary to address the problems or conditions leading to imposition of the moratorium. (4) A clear statement of the actions, and the schedule for those actions, proposed to be taken by the city during the duration of the moratorium to address the problems or conditions leading to imposition of the moratorium. No moratorium may be subsequently renewed or extended for any additional period unless the city shall have taken all reasonable and feasible steps proposed to be taken by the city in its ordinance establishing the moratorium to address the problems or conditions leading to imposition of the moratorium and unless new facts and conditions warrant an extension. Any ordinance renewing or extending a development moratorium must expressly include, at the time of adoption, the findings set forth in subdivisions (1) through (4) of this subsection, including what new facts or conditions warrant the extension. Any person aggrieved by the imposition of a moratorium on development approvals required by law may apply to the appropriate division of the General Court of Justice for an order enjoining the enforcement of the moratorium, and the court shall have jurisdiction to issue that order. Actions brought pursuant to this section shall be set down for immediate hearing, and subsequent proceedings in those actions shall be accorded priority by the trial and appellate courts. In any such action, the city shall have the burden of showing compliance with the procedural requirements of this subsection. (f) In order to encourage construction that uses sustainable design principles and to improve energy efficiency in buildings, a city may charge reduced building permit fees or provide partial rebates of building permit fees for buildings that are constructed or renovated using design principles that conform to or exceed one or more of the following certifications or ratings: (1) 12096859.2 Leadership in Energy and Environmental Design (LEED) certification or higher rating under certification standards adopted by the U.S. Green Building Council. (g) (2) A One Globe or higher rating under the Green Globes program standards adopted by the Green Building Initiative. (3) A certification or rating by another nationally recognized certification or rating system that is equivalent or greater than those listed in subdivisions (1) and (2) of this subsection. A zoning or unified development ordinance may not differentiate in terms of the regulations applicable to fraternities or sororities between those fraternities or sororities that are approved or recognized by a college or university and those that are not. § 143-135.37. Energy and water use standards for public major facility construction and renovation projects; verification and reporting of energy and water use. (a) Program Established. - The Sustainable Energy-Efficient Buildings Program is established within the Department to be administered by the Department. This program applies to any major facility construction or renovation project of a public agency that is funded in whole or in part from an appropriation in the State capital budget or through a financing contract as defined in G.S. 142-82. (a1) Net Savings Required. - The requirements of this section apply to a major facility construction or renovation project only if the Department determines that the application of the requirements to the project will result in an anticipated net savings. There is an anticipated net savings if the cost of construction or renovation in accordance with the requirements of this section plus the estimated operating costs for the first 10 years post-construction would be less than the cost of construction or renovation if the project were not subject to the requirements of this section plus the estimated operating costs for the first 10 years post-construction. All thirdparty certification costs before and after construction or renovation shall be included in determining construction and operating costs. Renovation projects that will include guaranteed energy savings contracts, as defined by G.S. 143-64.17, and executed in accordance with the provisions of Part 2 of Article 3B of Chapter 143 of the General Statutes, are exempt from the requirements of this subsection. (b) Energy-Efficiency Standard. - For every major facility construction project of a public agency, the building shall be designed and constructed so that the calculated energy consumption is at least thirty percent (30%) less than the energy consumption for the same building as calculated using the energy-efficiency standard in ASHRAE 90.1-2004. For every major facility renovation project of a public agency, the renovated building shall be designed and constructed so that the calculated energy consumption is at least twenty percent (20%) less than the energy consumption for the same renovated building as calculated using the energy-efficiency standard in ASHRAE 90.1-2004. For the purposes of this subsection, any exception or special standard for a specific type of building found in ASHRAE 90.1-2004 is included in the ASHRAE 90.12004 standard. 12096859.2 (c) Indoor Potable Water Use Standard. - For every major facility construction or renovation project of a public agency, the water system shall be designed and constructed so that the calculated indoor potable water use is at least twenty percent (20%) less than the indoor potable water use for the same building as calculated using the fixture performance requirements related to plumbing under the 2006 North Carolina State Building Code. (c1) Outdoor Potable Water Use Standard. - For every major facility construction project of a public agency, the water system shall be designed and constructed so that the calculated sum of the outdoor potable water use and the harvested stormwater use is at least fifty percent (50%) less than the sum of the outdoor potable water use and the harvested stormwater use for the same building as calculated using the performance requirements related to plumbing under the 2006 North Carolina State Building Code. Weather-based irrigation controllers shall be used for irrigation systems for major facility construction projects. For every major facility renovation project of a public agency, the Department shall determine on a project-by-project basis what reduced level of outdoor potable use or harvested stormwater use, if any, is a feasible requirement for the project. The Department shall not require a greater reduction than is required under this subsection for a major facility construction project. To reduce the potable outdoor water as required under this subsection, weather-based irrigation controllers, landscape materials that are water use efficient, and irrigation strategies that include reuse and recycling of the water may be used. (d) Performance Verification. - In order to be able to verify performance of a building component or an energy or water system component, the construction contract shall include provisions that require each building component and each energy and water system component to be commissioned, and these provisions shall be included at the earliest phase of the construction process as possible and in no case later than the schematic design phase of the project. Such commissioning shall continue through the initial operation of the building. The project design and construction teams and the public agency shall jointly determine what level of commissioning is appropriate for the size and complexity of the building or its energy and water system components. (e) Separate Utility Meters. - In order to be able to monitor the initial cost and the continuing costs of the energy and water systems, a separate meter for each electricity, natural gas, fuel oil, and water utility shall be installed at each building undergoing a major facility construction or renovation project. Each meter shall be installed in accordance with the United States Department of Energy guidelines issued under section 103 of the Energy Policy Act of 2005 (Pub. L. 109-58, 119 Stat. 594 (2005)). Starting with the first month of facility operation, the public agency shall compare data obtained from each of these meters by month and by year with the applicable energy-efficiency standard under subsection (b) of this section and the applicable water use standard for the project under subsection (c) of this section and report annually no later than August 1 of each year to the Office of State Construction within the Department. If the average energy use or the average water use over the initial 12-month period of facility operation exceeds the applicable energy-efficiency standard under subsection (b) of this section or exceeds the applicable water use standard under subsection (c) of this section by fifteen percent (15%) or more, the public agency shall investigate the actual energy or water use, determine the cause of the discrepancy, and recommend corrections or modifications to meet the applicable standard. 12096859.2 (f) Locally Sourced Materials. - To achieve sustainable building standards as required by this section, a major facility construction or renovation project may utilize a building rating system so long as the rating system (i) provides certification credits for, (ii) provides a preference to be given to, (iii) does not disadvantage, and (iv) promotes building materials or furnishings, including masonry, concrete, steel, textiles, or wood that are manufactured or produced within the State. (2008-203, s. 1; 2011-394, s. 8(b); 2013-242, s. 1.) 12096859.2 Ohio (back to top) 125.15 Acquisition of equipment, materials, supplies, services, or contracts of insurance. All state agencies required to secure any equipment, materials, supplies, or services from the department of administrative services shall make acquisition in the manner and upon forms prescribed by the director of administrative services and shall reimburse the department for the equipment, materials, supplies, or services, including a reasonable sum to cover the department’s administrative costs and costs relating to energy efficiency and conservation programs, whenever reimbursement is required by the department. The money so paid shall be deposited in the state treasury to the credit of the general services fund or the information technology fund, as appropriate. Those funds are hereby created. 3345.69 Committee to develop guidelines for energy efficiency. (A) (B) 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. The chairperson of the interuniversity council of Ohio and the secretary of the Ohio association of community colleges 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 ninety days after the effective date of this section. 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 consumption 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; 12096859.2 (C) (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. 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. 4928.61 Energy efficiency revolving loan fund. (A) There is hereby established in the state treasury the advanced energy fund, into which shall be deposited all advanced energy revenues remitted to the director of development under division (B) of this section, for the exclusive purposes of funding the advanced energy program created under section 4928.62 of the Revised Code and paying the program's administrative costs. Interest on the fund shall be credited to the fund. (B) Advanced energy revenues shall include all of the following: (1) 12096859.2 Revenues remitted to the director after collection by each electric distribution utility in this state of a temporary rider on retail electric distribution service rates as such rates are determined by the public utilities commission pursuant to this chapter. The rider shall be a uniform amount statewide, determined by the director of development, after consultation with the public benefits advisory board created by section 4928.58 of the Revised Code. The amount shall be determined by dividing an aggregate revenue target for a given year as determined by the director, after consultation with the advisory board, by the number of customers of electric distribution utilities in this state in the prior year. Such aggregate revenue target shall not exceed more than fifteen million dollars in any year through 2005 and shall not exceed more than five million dollars in any year after 2005. The rider shall be imposed beginning on the effective date of the amendment of this section by Sub. H.B. 251 of the 126th general assembly, January 4, 2007, and shall terminate at the end of ten years following the starting date of competitive retail electric service or until the advanced energy fund, including interest, reaches one hundred million dollars, whichever is first. (C) (D) (2) Revenues from payments, repayments, and collections under the advanced energy program and from program income; (3) Revenues remitted to the director after collection by a municipal electric utility or electric cooperative in this state upon the utility's or cooperative's decision to participate in the advanced energy fund; (4) Revenues from renewable energy compliance payments as provided under division (C)(2) of section 4928.64 of the Revised Code; (5) Revenue from forfeitures under division (C) of section 4928.66 of the Revised Code; (6) Funds transferred pursuant to division (B) of Section 512.10 of S.B. 315 of the 129th general assembly; (7) Interest earnings on the advanced energy fund. (1) Each electric distribution utility in this state shall remit to the director on a quarterly basis the revenues described in divisions (B)(1) and (2) of this section. Such remittances shall occur within thirty days after the end of each calendar quarter . (2) Each participating electric cooperative and participating municipal electric utility shall remit to the director on a quarterly basis the revenues described in division (B)(3) of this section. Such remittances shall occur within thirty days after the end of each calendar quarter. For the purpose of division (B)(3) of this section, the participation of an electric cooperative or municipal electric utility in the energy efficiency revolving loan program as it existed immediately prior to the effective date of the amendment of this section by Sub. H.B. 251 of the 126th general assembly, January 4, 2007, does not constitute a decision to participate in the advanced energy fund under this section as so amended. (3) All remittances under divisions (C)(1) and (2) of this section shall continue only until the end of ten years following the starting date of competitive retail electric service or until the advanced energy fund, including interest, reaches one hundred million dollars, whichever is first. Any moneys collected in rates for non-low-income customer energy efficiency programs, as of October 5, 1999, and not contributed to the energy efficiency revolving loan fund authorized under this section prior to the effective date of its amendment by Sub. H.B. 251 of the 126th general assembly, January 4, 2007, shall be used to continue to fund cost-effective, residential energy efficiency programs, be contributed into the universal service fund as a supplement to that required under section 4928.53 of the Revised Code, 12096859.2 or be returned to ratepayers in the form of a rate reduction at the option of the affected electric distribution utility. 4928.62 Advanced energy program; use of funds (A) There is hereby created the advanced energy program, which shall be administered by the director of development. Under the program, the director may authorize the use of moneys in the advanced energy fund for financial, technical, and related assistance for advanced energy projects in this state or for economic development assistance, in furtherance of the purposes set forth in section 4928.63 of the Revised Code. (1) To the extent feasible given approved applications for assistance, the assistance shall be distributed among the certified territories of electric distribution utilities and participating electric cooperatives, and among the service areas of participating municipal electric utilities, in amounts proportionate to the remittances of each utility and cooperative under divisions (B)(1) and (3) of section 4928.61 of the Revised Code. (2) The funds described in division (B)(6) of section 4928.61 of the Revised Code shall not be subject to the territorial requirements of division (A)(1) of this section. (3) The director shall not authorize financial assistance for an advanced energy project under the program unless the director first determines that the project will create new jobs or preserve existing jobs in this state or use innovative technologies or materials. (B) In carrying out sections 4928.61 to 4928.63 of the Revised Code, the director may do all of the following to further the public interest in advanced energy projects and economic development: (1) Award grants, contracts, loans, loan participation agreements, linked deposits, and energy production incentives; (2) Acquire in the name of the director any property of any kind or character in accordance with this section, by purchase, purchase at foreclosure, or exchange, on such terms and in such manner as the director considers proper; (3) Make and enter into all contracts and agreements necessary or incidental to the performance of the director's duties and the exercise of the director's powers under sections 4928.61 to 4928.63 of the Revised Code; (4) Employ or enter into contracts with financial consultants, marketing consultants, consulting engineers, architects, managers, construction experts, attorneys, technical monitors, energy evaluators, or other employees or agents as the director considers necessary, and fix their compensation; 12096859.2 (5) Adopt rules prescribing the application procedures for financial assistance under the advanced energy program; the fees, charges, interest rates, payment schedules, local match requirements, and other terms and conditions of any grants, contracts, loans, loan participation agreements, linked deposits, and energy production incentives; criteria pertaining to the eligibility of participating lending institutions; and any other matters necessary for the implementation of the program; (6) Do all things necessary and appropriate for the operation of the program. (C) The department of development may hold ownership to any unclaimed energy efficiency and renewable energy emission allowances provided for in Chapter 3745-14 of the Administrative Code or otherwise, that result from advanced energy projects that receive funding from the advanced energy fund, and it may use the allowances to further the public interest in advanced energy projects or for economic development. (D) Financial statements, financial data, and trade secrets submitted to or received by the director from an applicant or recipient of financial assistance under sections 4928.61 to 4928.63 of the Revised Code, or any information taken from those statements, data, or trade secrets for any purpose, are not public records for the purpose of section 149.43 of the Revised Code. (E) Nothing in the amendments of sections 4928.61, 4928.62, and 4928.63 of the Revised Code by Sub. H.B. 251 of the 126th general assembly shall affect any pending or effected assistance, pending or effected purchases or exchanges of property made, or pending or effected contracts or agreements entered into pursuant to division (A) or (B) of this section as the section existed prior to the effective date of those amendments, January 4, 2007, or shall affect the exemption provided under division (C) of this section as the section existed prior to that effective date. (F) Any assistance a school district receives for an advanced energy project, including a geothermal heating, ventilating, and air conditioning system, shall be in addition to any assistance provided under Chapter 3318. of the Revised Code and shall not be included as part of the district or state portion of the basic project cost under that chapter.er. 4928.63 Purpose of energy efficiency program. The director of development and the public benefits advisory board have the powers and duties provided in sections 4928.61 and 4928.62 of the Revised Code, in order to promote the welfare of the people of this state; stabilize the economy; assist in the improvement and development within this state of not-for-profit entity, industrial, commercial, distribution, residential, and research buildings and activities required for the people of this state; improve the economic welfare of the people of this state by reducing energy costs and by reducing energy usage in a cost-efficient manner using, as determined by the director, both the most appropriate national, federal, or other standards for products and the best practices for the use of technology, products, or services in the context of a total facility or building; and assist in the lowering of energy demand to reduce air, water, or thermal pollution . It is hereby determined that the 12096859.2 accomplishment of those purposes is essential so that the people of this state may maintain their present high standards in comparison with the people of other states and so that opportunities for improving the economic welfare of the people of this state, for improving the housing of residents of this state, and for favorable markets for the products of this state’s natural resources, agriculture, and manufacturing shall be improved; and that it is necessary for this state to establish the program authorized pursuant to sections 4928.61 and 4928.62 of the Revised Code. 12096859.2 Oklahoma. (back to top) § 213. Public building energy and environmental performance program The purpose of this section is to promote effective energy and environmental standards for the construction, renovation, and maintenance of state buildings which will improve the capacity of the state to design, build, and operate high-performance buildings thus creating new jobs, contributing to economic growth, and increasing energy independence. To accomplish the objectives of this section, the state shall adopt planning and construction standards for state buildings that: 1. Conserve energy consumption and optimize the energy performance of new building construction; 2. Increase the demand for environmentally preferable building materials, finishes, and furnishings; 3. Reduce the dependence of the state on imported sources of energy through buildings that conserve energy and utilize local and renewable energy sources; 4. Protect and restore the natural resources of the state by avoiding development of inappropriate building sites; 5. Reduce the burden on municipal water supply and treatment by reducing potable water consumption; 6. Reduce waste generation and manage waste through recycling and diversion from landfill disposal; 7. Establish life-cycle cost analysis as the appropriate and most efficient analysis to determine the optimal performance level of a building project; 8. Ensure that the systems of each building project are designed, installed, and tested to perform according to the design intent and operational needs of the building; and 9. Authorize the Office of Management and Enterprise Services to pursue ENERGY STAR designation from the United States Environmental Protection Agency to further demonstrate the energy efficiency of a public building project. 12096859.2 Oregon (back to top) 315.331. Credit for certified energy conservation project (1) A credit is allowed against the taxes otherwise due under ORS chapter 316 or, if the taxpayer is a corporation, under ORS chapter 317 or 318, for an energy conservation project that is certified under ORS 469B.270 to 469B.306. The credit is allowed as follows: (a) Except as provided in paragraph (b) of this subsection, the credit allowed in each of the first two tax years in which the credit is claimed shall be 10 percent of the certified cost of the facility, but may not exceed the tax liability of the taxpayer. The credit allowed in each of the succeeding three years shall be five percent of the certified cost, but may not exceed the tax liability of the taxpayer. (b) If the certified cost of the facility does not exceed $20,000, the total amount of the credit allowable under subsection (3) of this section may be claimed in the first tax year for which the credit may be claimed, but may not exceed the tax liability of the taxpayer. (2) In order for a tax credit to be allowable under this section: (a) The project must be located in Oregon. (b) The project must have received final certification from the Director of the State Department of Energy under ORS 469B.270 to 469B.306. (c) If the project is a research and development project, it must receive, prior to certification under ORS 469B.288, a recommendation from a qualified third party selected by the director. (d) If the project is new construction or a total building retrofit, then the project must achieve, at a minimum, the energy efficiency standards required for: (A) LEED Platinum certification; (B) A four globes rating from the Green Globes program; (C) A nationally or regionally recognized and appropriate sustainable building program whose performance standards are equivalent to the standards required for LEED Platinum certification or a four globes rating from the Green Globes program, as determined by the department; or (D) Verification that the construction conformed to the standards of the Reach Code adopted pursuant to ORS 455.500. (3) The total amount of credit allowable to an eligible taxpayer under this section may not exceed 35 percent of the certified cost of the project. 12096859.2 (4)(a) Upon any sale, termination of the lease or contract, exchange or other disposition of the project, notice thereof shall be given to the director, who shall revoke the certificate covering the project as of the date of such disposition. (b) A new owner, or, upon re-leasing of the project, a new lessee, may apply for a new certificate under ORS 469B.291. The new lessee or owner must meet the requirements of ORS 469B.270 to 469B.306 and may claim a tax credit under this section only if all moneys owed by the new owner or lessee to the State of Oregon have been paid, if the project continues to operate and if all conditions in the final certification are met. The tax credit available to the new owner shall be limited to the amount of credit not claimed by the former owner or, for a new lessee, the amount of credit not claimed by the lessee under all previous leases. The State Department of Energy may waive the requirement that a new owner or lessee apply for a new certificate under ORS 469B.291 if the remaining credit is less than $20,000. (c) The department may not revoke the certificate covering a project under paragraph (a) of this subsection if the tax credit associated with the project has been transferred to a taxpayer who is an eligible applicant under ORS 469B.285. (5) The tax credit allowed under this section for any one tax year may not exceed the tax liability of the taxpayer. (6) Any tax credit otherwise allowable under this section that is not used by the taxpayer in a particular year may be carried forward and offset against the taxpayer's tax liability for the next succeeding tax year. Any credit remaining unused in that next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise, any credit not used in that second succeeding tax year may be carried forward and used in the third succeeding tax year, and likewise, any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and likewise, any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be carried forward for any tax year thereafter. Credits may be carried forward to and used in a tax year beyond the years specified in subsection (1) of this section only as provided in this subsection. (7) The credit allowed under this section is not in lieu of any depreciation or amortization deduction for the project to which the taxpayer otherwise may be entitled for purposes of ORS chapter 316, 317 or 318 for such year. (8) The taxpayer's adjusted basis for determining gain or loss may not be decreased by any tax credits allowed under this section. (9) The definitions in ORS 469B.270 apply to this section. 12096859.2 Rhode Island (back to top) § 37-24-1 Short title. – This act shall be known and may be cited as "The Green Buildings Act." § 37-24-2 Legislative findings. – It is hereby found and declared as follows: (1) Energy costs for public buildings are skyrocketing and will likely continue to increase. (2) Energy use by public buildings contributes substantially to the problems of pollution and global warming. (3) Public buildings can be built and renovated using high-performance methods that save energy, reduce water consumption, improve indoor air quality, preserve the environment, and make workers and students more productive. (4) This law is necessary to more efficiently spend public funds. § 37-24-3 Definitions. – For purposes of this chapter, the following definitions shall apply: (1) "Construction" means the process of building, altering, repairing, improving, or demolishing forty percent (40%) or more of any public structures or buildings, or other public improvements of any kind to any public real property. (2) "Department" means the department of administration. (3) "Equivalent standard" means a high-performance green building standard other than LEED, which provides a rating system or measurement tool, that, when used, leads to outcomes, similar or equivalent to, LEED, outcomes, in terms of green building performance; current accepted equivalent standards include green globes, Northeast collaborative high-performance schools protocol; or other equivalent high-performance green building standard accepted by the department; (4) "LEED certified standard" means the current version of the United States Green Building Council Leadership in Energy and Environmental Design green building rating standard referred to as LEED certified. (5) "Major facility project" means: (i) A building construction project larger than five thousand (5,000) gross square feet of occupied or conditioned space; or 12096859.2 (ii) A building renovation project is larger than ten thousand (10,000) gross square feet of occupied or conditioned space. (6) "Public agency" means every state office, board, commission, committee, bureau, department or public institution of higher education. (7) "Public facility" means any public institution, public facility, public equipment, or any physical asset owned, leased or controlled in whole or in part by this state or any agency or political subdivision thereof. § 37-24-4 Green building standards. – (a) All major facility projects of public agencies shall be designed and constructed to at least the LEED certified or an equivalent high performance green building standard. This provision applies to major facility projects that have not entered the design phase prior to January 1, 2010. (b) All major facility projects of a public school district, where the project receives any funding from the state shall be designed, and constructed to at least the LEED certified standard, or the Northeast Collaborative for High-Performance Schools Protocol, Version 1.1 or above. This provision applies to major facility projects that have not entered the design phase prior to January 1, 2010. (c) A major facility project does not have to meet LEED certified standard or an equivalent highperformance green building standard if: (1) There is no appropriate LEED standard or other high-performance green building standard for that type of building or renovation project. In such case, the department will set lesser green building standards that are appropriate to the project. (2) There is no practical way to apply the LEED standard or other high-performance green building standard to a particular building or renovation project. In such case, the department will set lesser green building standards that are appropriate to the project. § 37-24-5 Administration and reports. – (a) The department shall promulgate such regulations as are necessary to enforce this section. Those regulations shall include how the department will determine whether a project qualifies for an exception from the LEED certified or equivalent high-performance green building standard, and the lesser green building standards that may be imposed on projects that are granted exceptions. (b) The department shall monitor and document ongoing operating savings that result from major facility projects designed, constructed and certified as meeting the LEED certified standard and annually publish a public report of findings and recommended changes in policy. The report 12096859.2 shall also include a description of projects that were granted exceptions from the LEED certified standard, the reasons for exception, and the lesser green building standards imposed. (c) The department shall create a green buildings advisory committee composed of representatives from the design, construction, lumber and building materials industries involved in public works contracting, personnel from affected public agencies and school boards that oversee public works projects, and others at the department's discretion to provide advice on implementing this section. The advisory committee shall make recommendations regarding an education and training process and an ongoing evaluation or feedback process to help the department implement this section. § 37-24-6 Protection from liability. – No person, corporation or entity shall be held liable for the failure of a major facility project to meet the LEED certified standard or other standards established for the project as long as a good faith attempt was made to achieve the standard set for the project. EXECUTIVE ORDER 05-14 August 22, 2005 ENERGY AND ENVIRONMENTAL PERFORMANCE STANDARDS FOR NEW PUBLIC BUILDINGS WHEREAS, this Administration is committed to promoting efficiency in the use of energy and natural resources in order to protect and enhance our environment, economy, and the health of our citizens and future generations; WHEREAS, this Administration is dedicated to the environmental health and safety of its employees, and to efficient and productive work environments; WHEREAS, the true costs of new public buildings must be evaluated on a life-cycle basis which, in addition to construction and financing costs, includes the energy and other costs of operating the facility over its lifetime; and WHEREAS, the energy efficient design and operation of new public buildings may save taxpayers substantive costs over time. NOW, THEREFORE, I, DONALD L. CARCIERI, by the authority vested in me as Governor of the State of Rhode Island, do hereby order and direct the following: 1. For the purposes of this Order, a “public building” shall mean any building owned by the State or any department, office, board, commission, or agency thereof, including statesupported institutions of higher learning. 2. The design, construction, operation and maintenance of any new, substantially expanded, or renovated public building shall incorporate and meet the standards developed by the 12096859.2 United States Green Building Council’s Leadership in Energy & Environmental Design (“LEED”). Each such public building shall endeavor to qualify for certification at or above the LEED “silver” level. 3. The design, construction, operation and maintenance of any new, substantially expanded, or renovated public building shall also evaluate feasible energy-efficiency measures on the basis of their total life-cycle costs of installation, operation, and maintenance. 4. The Department of Administration through the Division of Capital Projects and Property Management, shall develop guidelines to implement the provisions of this Order. Each department, office, board, commission, and agency of the State shall cooperate with the Division of Capital Projects and Property Management and furnish it with any assistance necessary to accomplish the purposes of this Order. Assistance may include sharing of information, assignment of staff, and provision of support services. This Executive Order shall take effect immediately upon the date hereof. 12096859.2 South Carolina (back to top) ARTICLE 8. ENERGY INDEPENDENCE AND SUSTAINABLE CONSTRUCTION ACT OF 2007 SECTION 48-52-800. Citation of article. This article may be cited as the "Energy Independence and Sustainable Construction Act of 2007". SECTION 48-52-810. Definitions. As used in this article: (1) “Board” means the State Fiscal Accountability Authority's governing board (2) "Building project" means the design, construction, renovation, operation, and maintenance of any inhabited physical structure and its associated project building site. (3) "Commercial interior fit-out" means interior design and installation by owners or tenants of new or existing office space, typically exclusive of structural components and core and shell elements. (4) "GBI" means the Green Building Initiative. (5) "Globes" means the level of a building's sustainability and energy efficiency performance as determined by GBI's Green Globes Rating System. (6) "Green Globes Rating System" means the environmental building rating system established by the Green Building Initiative. (7) "High-performance building" means a building designed to achieve integrated systems design and construction so as to significantly reduce or eliminate the negative impact of the built environment. (8) " LEED " means the U.S. Green Building Council's Leadership in Energy and Environmental Design Rating System. (9) " LEED Silver standard" means the Silver standard as set forth by USGBC's LEED Green Building Rating System. (10) (a) "Major facility project" means: (i) 12096859.2 a state-funded new construction building project in which the building to be constructed is larger than ten thousand gross square feet; (b) (ii) a state-funded renovation project in which the project involves more than fifty percent of the replacement value of the facility or a change in occupancy; or (iii) a state-funded commercial interior tenant fit-out project that is larger than seven thousand five hundred square feet of leasable area. "Major facility project" does not mean: (i) a building, regardless of size, that does not have conditioned space as defined by Standard 90.1 of the American Society of Heating, Refrigerating and Air-Conditioning Engineers; (ii) a public kindergarten, elementary school, middle school, secondary school, junior high school, or high school, all as defined in Section 59-1-150; (iii) a correctional facility constructed for the Department of Corrections, Department of Mental Health, or Department of Juvenile Justice; (iv) a building project funded by the State Ports Authority, the Coordinating Council for Economic Development, or the State Infrastructure Bank; or (v) a building project funded by the Department of Health and Environmental Control in which the primary purpose of the building project is for the storage of archived documents. (11) "Renovation project" means a building project involving the modification or adaptive reuse of an existing facility. (12) "Third-party commissioning agent" means a person accredited by the USGBC or GBI, with expertise in building system performance, who will analyze, evaluate, and confirm the proper function and performance of a high performance building, its systems, equipment, and indoor air quality, and who did not participate in the original certification of the major facility project or renovation project. (13) "USGBC" means the United States Green Building Council. 12096859.2 SECTION 48-52-820. Promoting effective energy and environmental standards for buildings; adoption of policies and procedures. The purpose of this section is to promote effective energy and environmental standards for construction, rehabilitation, and maintenance of buildings in this State, improving the state's capacity to design, build, and operate high-performance buildings and creating new jobs and contributing to economic growth and increasing the state's energy independence. To accomplish the objectives of this article, the State shall adopt policies and procedures that: (1) optimize the energy performance of buildings throughout this State; (2) increase the demand for environmentally preferable building materials, finishes, and furnishings; (3) improve environmental quality in this State by decreasing the discharge of pollutants from state buildings and their manufacture; (4) create public awareness of new technologies that can improve the health and productivity of building occupants by meeting advanced criteria for indoor air quality; (5) improve working conditions and reduce building-related health problems; (6) reduce the state's dependence on imported sources of energy through buildings that conserve energy and utilize local and renewable energy sources; (7) protect and restore this state's natural resources by avoiding development of inappropriate building sites; (8) reduce the burden on municipal water supply and treatment by reducing potable water consumption; (9) reduce waste generation and manage waste through recycling and diversion from landfill disposal; (10) establish life cycle cost analysis as the appropriate and most efficient analysis to determine a building project's optimal performance level; (11) ensure each building project's systems are designed, installed, and tested to perform according to the building's design intent and its operational needs through third-party, post-construction review and verification; and (12) authorize the board to pursue ENERGY STAR designation from the United States Environmental Protection Agency to further demonstrate a building project's energy independence. 12096859.2 SECTION 48-52-830. Certification standards for major facility projects. (A) (1) All major facility projects in this State, as defined in Section 48-52-810(10)(i), must be designed, constructed, and at least certified as receiving two globes using the Green Globes Rating System or receiving the LEED Silver standard. All major facility projects in this State, as defined in Section 48-52-810(10)(a)(ii) or (iii), must be analyzed using a life cycle cost analysis comparing the cost and benefits of designing, constructing, maintaining, and operating the facility at the LEED Silver standard or two globes standard, or better, with certification; normal industry and regulatory standards as applicable; or some standard between the two that causes the project to be designed and constructed in a manner that achieves the lowest thirty-year life cycle cost. (2) (B) (C) In obtaining certification as receiving two globes using the Green Globes Rating System, a major facility project must earn at least twenty percent of the available points for energy performance under “C.1.1 Energy Consumption”. In obtaining certification as meeting the LEED Silver standard, a major facility project must earn at least forty percent of the available points for energy performance under “EA Credit: Optimize Energy Performance”. The Office of State Engineer may waive the requirements of this item for a proposed major facility project should it determine that the costs of meeting this item are not economically feasible. The Office of State Engineer shall notify the board of the reason for the issuance of a waiver. The board may petition the General Assembly to require all major facility projects be certified to a high-performance building rating system standard in addition to or instead of the systems provided in this chapter. However, any alternate rating system adopted by the General Assembly must be no less stringent than the systems provided in this chapter. The board shall administer and enforce the provisions in this article. Also, the board may adopt rules and promulgate regulations to comply with the goals set forth in Section 4852-820. SECTION 48-52-840. Certification using LEED rating system; inspection and monitoring of environmental benefits. (A) In order to become certified using a LEED rating system, a major facility project shall register with USGBC prior to filing the first building construction permit application. USGBC shall have the sole discretion in determining whether a major facility project receives certification. (B) All major facility projects that were certified at the LEED Silver standard or higher must be inspected by a third-party commissioning agent in the fifth, tenth, and fifteenth year following certification. The third-party commissioning agent shall determine whether the building is operating at the standard to which it was originally designed and certified. The third-party commissioning agent shall report its findings to the State Engineer. The report must include, but is not limited to, the building's savings on energy and water, the level of 12096859.2 its indoor air quality, the existing system's function and performance, problems with the system, and whether the system's performance meets the facility's requirements. If the State Engineer determines that the building is not operating within the spirit of this article, the State Engineer may take appropriate measures to bring the building into compliance. (C) The board shall develop and implement a process to monitor and evaluate the energy and environmental benefits associated with each major facility project designed, constructed, or renovated pursuant to this article. The monitoring and evaluation of each major facility project shall commence one year after certification of the major facility project and shall continue for nineteen years thereafter. All data concerning energy and environmental benefits collected pursuant to this section must be made available to the board to be compiled and submitted to the General Assembly pursuant to Section 48-52-860. SECTION 48-52-850. Certification using Green Globes Rating System; inspection and monitoring of environmental benefits. (A) In order to become certified using a Green Globes Rating System, a major facility project shall register with GBI prior to filing the first building construction permit application. GBI shall have the sole discretion in determining whether a major facility project receives certification. (B) All major facility projects that were first certified as receiving two globes using the Green Globes Rating System must be inspected by a third-party commissioning agent in the fifth, tenth, and fifteenth year following certification. The third-party commissioning agent shall determine whether the building is operating at the standard to which it was originally designed and certified. The third-party commissioning agent shall report its findings to the State Engineer. The report must include, but is not limited to, the building's savings on energy and water, the level of its indoor air quality, the existing system's function and performance, problems with the system, and whether the system's performance meets the facility's requirements. If the State Engineer determines that the building is not operating within the spirit of this article, the State Engineer may take appropriate measures to bring the building into compliance. (C) The board shall develop and implement a process to monitor and evaluate the energy and environmental benefits associated with each major facility project designed, constructed, or renovated pursuant to this article. The monitoring and evaluation of each major facility project shall commence one year after certification of the major facility project and shall continue for nineteen years thereafter. All data concerning energy and environmental benefits collected pursuant to this section must be made available to the board to be compiled and submitted to the General Assembly pursuant to Section 48-52-860. 12096859.2 SECTION 48-52-860. Annual report; contents. The board annually shall submit a report regarding major facility projects to the General Assembly that includes: (1) the number and types of buildings designed and constructed; (2) the level of certification of each building designed, constructed, or renovated; (3) actual savings in energy costs; (4) a description of all potential environmental benefits, including, but not limited to, water resources savings and the reduction of waste generation; (5) the ability of buildings to continue to operate at the standard to which it was originally certified; (6) the reason for any waiver granted by the State Engineer's Office; and (7) any conflicts or barriers that hinder the effectiveness of this article. 12096859.2 South Dakota (back to top) 5-14-32. Definition of terms Terms used in this section and §§ 5-14-33 to 5-14-38, inclusive, mean: (1) “High-performance green building standard,” a building that is designed and constructed in a manner that achieves at least: (a) A silver standard rating under the United States Green Building Council's Leadership in Energy and Environmental Design (LEED) rating system in effect as of July 1, 2009, or earlier if the building was registered or certified under a previous LEED rating system version; (b) A two globe rating under the Green Building Initiative's Green Globes rating system as of January 1, 2008; or (c) A comparable numeric rating under a sustainable building certification program recognized by the American National Standards Institute as an accredited standards developer; (2) “New construction,” any new building constructed by any state agency, department, or institution which has a cost of five hundred thousand dollars or more or that includes five thousand square feet or more of space; (3) “Renovation” or “renovated,” any alteration of a state building with a cost of five hundred thousand dollars or more or that includes five thousand square feet or more of the building; (4) “State building project,” new construction or renovation of a building, which has heating, ventilation, or air conditioning, by the Board of Regents or any state agency, department, or institution. 5-14-33. State buildings to meet high-performance green building standard Any state building projects as defined in § 5-14-32, shall meet or exceed a high-performance green building standard. 5-14-34. Waiver of requirements A waiver of the requirements of § 5-14-33 may be granted by the Office of the State Engineer if: (1) The building will have minimal human occupancy; 12096859.2 (2) The increased costs of achieving a high-performance green building standard cannot be recouped from decreased operational costs within fifteen years; (3) A building is on the national register of historic places and achieving a high-performance green building standard would result in noncompliance with standards for historic preservation as set forth in the secretary of the interior's Standards for the Treatment of Historic Properties in effect as of January 1, 2008; (4) The square footage of the renovation project is less then fifty percent of the total square footage of the building being renovated. If the renovation project is being done in phases, the total square footage of all intended phases combined shall be used in making this calculation; or (5) The Bureau of Administration determines that extenuating circumstances exist to make impractical high-performance green building standard certification. 5-14-35. Initial determination of Bureau of Administration No state building project may proceed to construction until the Bureau of Administration has determined that the project is satisfactorily designed to achieve or exceed a high-performance green building standard or that a waiver is granted pursuant §§ 5-14-32 to 5-14-38, inclusive. 5-14-36. Certification of achievement, waiver, or failure Upon completion of a state building project, the Bureau of Administration shall certify: (1) That the project achieved a high-performance green building standard; (2) That a waiver was granted pursuant to §§ 5-14-32 to 5-14-38, inclusive; or (3) That the project failed to comply with the provisions of §§ 5-14-32 to 5-14-38, inclusive. 5-14-37. Report to the Legislature The Bureau of Administration shall annually report to the Legislature a listing of any state building project which was granted a waiver or failed to comply with the provisions of §§ 5-1432 to 5-14-38, inclusive. 5-14-38. Promulgation of rules The Bureau of Administration shall promulgate rules pursuant to chapter 1-26 establishing the procedures and terms and conditions for certifying a project and granting waivers and the method for calculating the initial costs and the decreased operational costs related to achieving highperformance green building standards. 12096859.2 Tennessee (back to top) § 13-20-202. Authority powers (a) Any housing authority now or hereafter established under and pursuant to this chapter, including any municipal housing authority whether created under and pursuant to the provisions of such law or of any special statute, may carry out any undertaking hereinafter called a “redevelopment project” and to that end may: (1) Acquire blighted areas; (2) Acquire other real property for the purpose of removing, preventing, or reducing blight, blighting factors, or the causes of blight; (3) Acquire real property where the condition of the title, the diverse ownership of the real property to be assembled, the street or lot layouts, or other conditions, prevent a proper development of the property and where the acquisition of the area by the authority is necessary to carry out a redevelopment plan or urban renewal plan; (4) Acting on its own or through third parties engaged to act on the housing authority's behalf: (A) Clear any areas acquired, including relocation of utility facilities and demolition, in whole or in part, of buildings and improvements thereon and removal or remediation of any environmental contamination; (B) Install, construct, or reconstruct streets, utilities, and site improvements essential to the preparation and development of sites for uses in accordance with a redevelopment plan or urban renewal plan; (C) Install, construct, or reconstruct parks, public open spaces, public playgrounds, pedestrian ways and all parking structures regardless of use in accordance with a redevelopment plan or urban renewal plan; (D) Pay expenses for relocation, administrative costs, planning and engineering costs, energy efficiency costs and legal expenses associated with exercising the powers granted in this section or with carrying out a redevelopment plan or urban renewal plan; (E) Pay the design costs, commissioning costs and fees and costs of required documentation associated with meeting the requirements of Leadership in Energy and Environmental Design (LEED), Green Globes or other similar programs, as well as greening costs and energy modeling costs for certification by such programs of new construction, existing buildings and other projects; (F) Install, construct, add to, improve or reconstruct public infrastructure, including, but not limited to, water, solid waste, transportation, telecommunication, energy use 12096859.2 capture and transmittal, power systems and alternative power systems or alternate power projects that incorporate principles of urban sustainability, eco-efficiency and global sustainable development; and (G) Take all other necessary actions designed to further the goals and local objectives articulated in the redevelopment plan or urban renewal plan; (5) Sell or lease land so acquired for uses in accordance with the redevelopment plan or urban renewal plan; (6) Accomplish a combination of the foregoing to carry out a redevelopment plan or urban renewal plan; (7) Have and enjoy all the rights, powers, privileges and immunities granted to housing authorities under such law, and/or under any special act by which the authority may have been created, and/or any other provisions of law relating to slum clearance and housing projects for persons of low income; and (8)(A) Borrow money upon its bonds, notes or other evidences of indebtedness to finance any of the foregoing and to carry out a redevelopment plan or urban renewal plan and secure the same by pledges of its income and revenues generally or its income and revenues from a particular redevelopment project or projects, including moneys received by any authority and placed in a special fund or funds pursuant to tax increment financing provisions contained in a redevelopment plan or urban renewal plan, or from grants or contributions from any government, or in any other manner. (B) Nothing contained in § 13-20-113, § 13-20-413 and/or in any special municipal housing authorities law shall be construed as limiting the power of an authority, in the event of default by a purchaser or lessee of land in a redevelopment plan or urban renewal plan, to acquire property and operate it free from restrictions contained in §§ 13-20-113 and 13-20-413, or in any special statute as aforementioned relating to tenant selection or operation without profit. (b) For the purposes of this section and the implementation of redevelopment districts as delineated in §§ 13-20-201--13-20-205, community development agencies as defined in the Community Development Act of 1974, as amended, of municipalities, will also be considered as housing authorities and will have vested in them the powers as delineated in this section in which housing authority redevelopment powers are vested, as long as public notice required in § 13-20203 is provided. This subsection (b) applies only in counties with populations greater than eight hundred thousand (800,000), according to the 1990 federal census, or any subsequent federal census and in counties with populations greater than one hundred thirty-four thousand seven hundred (134,700) and less than one hundred thirty-four thousand eight hundred (134,800), according to the 2000 federal census or any subsequent federal census. (c) For the purposes of this part, a development authority created by private act and designated by a municipality as its housing and redevelopment authority for purposes of this part shall also 12096859.2 be considered a housing authority and shall have the power to enter into an economic development agreement as defined in § 4-17-302(2) and the powers delineated in this part, in which housing authority redevelopment powers are vested, as long as public notice required in § 13-20-203 is provided; provided, however, a municipality shall not so designate a development authority if the housing authority, if any, created by the municipality has ever issued any obligations secured by tax increment revenues and in any event such designation shall only be effective if the municipality shall first obtain the written consent of the housing authority, if any, created by the municipality. Any redevelopment plan previously prepared by a development authority created pursuant to any such private act and approved by a municipality shall be deemed authorized by this subsection (c) and shall be deemed a valid redevelopment plan for purposes of this part. 12096859.2 Vermont (back to top) § 53. Commercial building energy standards (a) Definitions. In this subchapter, “commercial buildings” means all buildings that are not residential buildings as defined in subdivision 51(a)(2) of this title or farm structures as defined in 24 V.S.A. § 4413. (1) The following commercial buildings, or portions of those buildings, separated from the remainder of the building by thermal envelope assemblies complying with this section shall be exempt from the building thermal envelope provisions of the standards: (A) Those that do not contain conditioned space. (B) Those with a peak design rate of energy usage less than an amount specified in the commercial building energy standards (CBES) adopted under subsection (b) of this section. (2) These standards shall not apply to equipment or portions of building energy systems that use energy primarily to provide for industrial or manufacturing processes. (3) With respect to a structure that is a mixed-use building that shares residential and commercial users: (A) if the structure is three stories or fewer in height, the term “commercial building” shall include all commercial uses within the structure and all common areas and facilities that serve both residential and commercial uses; and (B) if the structure is four stories or more in height, the term “commercial building” shall include all uses and areas within the structure. (b) Adoption of commercial building energy standards. Commercial building construction with respect to which any local building permit application or application for construction plan approval by the Commissioner of Public Safety pursuant to 20 V.S.A. chapter 173 has been submitted on or after January 1, 2007 shall be designed and constructed in substantial compliance with the standards contained in the 2005 Vermont Guidelines for Energy Efficient Commercial Construction, as those standards may be amended by administrative rule adopted by the Commissioner of Public Service. (c) Revision and interpretation of energy standards. No later than January 1, 2011, the Commissioner shall complete rulemaking to amend the commercial building energy standards to ensure that commercial building construction must be designed and constructed in a manner that complies with ANSI/ASHRAE/IESNA standard 90.1-2007 or the 2009 edition of the IECC, whichever provides the greatest level of energy savings. These amendments shall be effective three months after final adoption and shall apply to construction commenced on and after the 12096859.2 date they become effective. At least every three years after January 1, 2011, the Commissioner of Public Service shall amend and update the CBES by means of administrative rules adopted in accordance with 3 V.S.A. chapter 25. The Commissioner shall ensure that appropriate revisions are made promptly after the issuance of updated standards for commercial construction under the IECC or ASHRAE/ANSI/IESNA standard 90.1, whichever provides the greatest level of energy savings. Prior to final adoption of each required revision of the CBES, the Department of Public Service shall convene an Advisory Committee to include one or more mortgage lenders; builders; building designers; architects; civil, mechanical, and electrical engineers; utility representatives; and other persons with experience and expertise, such as consumer advocates and energy conservation experts. The Advisory Committee may provide the Commissioner of Public Service with additional recommendations for revision of the CBES. (1) Any amendments to the CBES shall be: (A) Consistent with duly adopted State energy policy, as specified in 30 V.S.A. § 202a. (B) Evaluated relative to their technical applicability and reliability. (2) Except for the amendments required by this subsection to be adopted by January 1, 2011, each time the CBES are amended by the Commissioner of Public Service, the amended CBES shall become effective upon a date specified in the adopted rule, a date that shall not be less than three months after the date of adoption. Except for the amendments required by this subsection to be adopted by January 1, 2011, persons submitting an application for any local permit authorizing commercial construction, or an application for construction plan approval by the Commissioner of Public Safety pursuant to 20 V.S.A. chapter 173, before the effective date of the amended CBES shall have the option of complying with the applicable provisions of the earlier or the amended CBES. After the effective date of the original or the amended CBES, any person submitting such an application for commercial construction in an area subject to the CBES shall comply with the most recent version of the CBES. (3) The Advisory Committee convened under this subsection, in preparing for the CBES updates, shall advise the Department of Public Service with respect to the coordination of the CBES amendments with existing and proposed demand-side management programs offered in the State. (4) The Commissioner of Public Service is authorized to adopt rules interpreting and implementing the CBES. (5) The Commissioner of Public Service may grant written variances or exemptions from the CBES or rules adopted under this section where strict compliance would entail practical difficulty or unnecessary hardship, or is otherwise found unwarranted, provided that: (A) Any such variance or exemption shall be consistent with State energy policy, as specified in 30 V.S.A. § 202a. 12096859.2 (B) Any petitioner for such a variance or exemption can demonstrate that the methods, means, or practices proposed to be taken in lieu of compliance with the rule or rules provide, in the opinion of the Commissioner, equal energy efficiency to that attained by compliance with the rule or rules. (C) A copy of any such variance or exemption shall be recorded by the petitioner in the land records of the city or town in which the building is located. (D) A record of each variance or exemption shall be maintained by the Commissioner, together with the certifications received by the Commissioner. (d) Certification requirement. (1) The design of commercial buildings shall be certified by the primary designer as compliant with CBES in accordance with this subsection, except as compliance is excused by a variance or exemption issued under subdivision (c)(5) of this section. If applicable law requires that the primary designer be a licensed professional engineer, licensed architect, or other licensed professional, a member of a pertinent licensed profession shall issue this certification. If one or more licensed professional engineers or licensed architects is involved in the design of the project, one of these licensees shall issue this certificate. If a licensed professional engineer or a licensed architect is not involved in designing the project, certification shall be issued by the builder. Any certification shall be accompanied by an affidavit and shall certify that the designer acted in accordance with the designer's professional duty of care in designing the building, and that the commercial building was designed in substantial compliance with the requirements of the CBES. The Department of Public Service will develop and make available to the public a certificate that lists key requirements of the CBES, sets forth certifying language in accordance with this subdivision, and requires disclosure of persons relied upon by the primary designer who have contracted to indemnify the primary designer for damages arising out of that reliance. Any person certifying under this subdivision shall use this certificate or one substantially like it to satisfy these certification obligations. Certification shall be issued by completing and signing a certificate and permanently affixing it to the outside of the heating or cooling equipment, to the electrical service panel located inside the building, or in a visible location in the vicinity of one of these three areas. In certifying under this subsection, the certifying person may reasonably rely on one or more supporting affidavits received from other persons that contributed to the design affirming that the portions of the design produced by them were properly certifiable under this subsection. The certifying person may contract for indemnification from those on which the person relies pursuant to this subdivision (1) against damages arising out of that reliance. This indemnification shall not limit any rights of action of an aggrieved party. (2) The construction of a commercial building shall be certified as compliant with CBES in accordance with this subsection, except as compliance is excused by a variance or exemption issued under subdivision (c)(5) of this section. This certification shall be issued by the general contractor, construction manager, or other party having primary 12096859.2 responsibility for coordinating the construction of the subject building, or in the absence of such a person, by the owner of the building. Any certification shall be accompanied by an affidavit and shall certify that the subject commercial building was constructed in accordance with the ordinary standard of care applicable to the participating construction trades, and that the subject commercial building was constructed substantially in accordance with the construction documents including the plans and specifications certified under subdivision (1) of this subsection for that building. The Department of Public Service will develop and make available to the public a certificate that sets forth certifying language in accordance with this subdivision, and that requires disclosure of persons who have been relied upon by the person with primary responsibility for coordinating the construction of the building and who have contracted to indemnify that person for damages arising out of that reliance. The person certifying under this subdivision shall use that certificate or one substantially like it to satisfy these certification obligations. Certification shall be issued by completing and signing a certificate and permanently affixing it to the outside of the heating or cooling equipment, to the electrical service panel located inside the building, or in a visible location in the vicinity of one of these three areas. In certifying under this subdivision, the certifying person may reasonably rely on one or more supporting affidavits received from subcontractors or others engaged in the construction of the subject commercial building affirming that the portions of the building constructed by them were properly certifiable under this subdivision. The certifying person may contract for indemnification from those on which the person relies pursuant to this subdivision (2) against damages arising out of that reliance. This indemnification shall not limit any rights of action of an aggrieved party. (3) Any person certifying under this subsection shall provide a copy of the person's certificate and any accompanying affidavit to the Department of Public Service. (4) Provision of a certificate as required by subdivision (1) of this subsection and of a certificate as required by subdivision (2) of this subsection shall be conditions precedent to: (A) issuance by the Commissioner of Public Safety (or a municipal official acting under 20 V.S.A. § 2736) of any final occupancy permit required by the rules of the Commissioner of Public Safety for use or occupancy of a commercial building that is also a public building as defined in 20 V.S.A. § 2730(a); and (B) issuance by a municipality of a certificate of occupancy for residential construction commencing on or after July 1, 2013, if the municipality requires such a certificate under 24 V.S.A. chapter 117. (e) Private right of action for damages against a certifier. (1) Except as otherwise provided in this subsection, a person aggrieved by another person's breach of that other person's representations contained in a certification or supporting affidavit issued or received as provided under subsection (d) of this section, within 10 years after the earlier of completion of construction or occupancy of the affected commercial building or portion of that building, may bring a civil action in Superior Court against a 12096859.2 person who has an obligation of certifying compliance under subsection (d) of this section alleging breach of the representations contained in that person's certification. This action may seek injunctive relief, damages arising from the aggrieved party's reliance on the accuracy of those representations, court costs, and reasonable attorneys' fees in an amount to be determined by the court. As used in this subdivision, “damages” includes costs incidental to increased energy consumption. (2) A person's failure to affix the certification as required by this section shall not be an affirmative defense in such an action against the person. (3) The rights and remedies created by this section shall not be construed to limit any rights and remedies otherwise provided by law. (4) The right of action established in this subsection may not be waived by contract or other agreement. (5) It shall be a defense to an action under this subsection that either at the time of completion or at any time thereafter, the commercial building or portion of building covered by a certificate under subsection (d) of this section, as actually constructed, met or exceeded the overall performance standards established in the CBES in effect on the date construction was commenced. (f) State or local enforcement. Any person who knowingly makes a false certification under subsection (d) of this section, or any party who fails to certify under subsection (d) of this section when required to do so, shall be subject to a civil penalty of not more than $250.00 per day, up to $10,000.00 for each year the violation continues. (g) Title validity not affected. A defect in marketable title shall not be created by a failure to record a variance or exemption pursuant to subdivision (c)(5) of this section, by a failure to issue certification or a certificate, as required under subsection (d) of this section, or by a failure under that subsection to affix a certificate or provide a copy of a certificate to the department of public service. 12096859.2 Virginia (back to top) § 58.1-3221.2. Classification of certain energy-efficient buildings for tax purposes A. Energy-efficient buildings, not including the real estate or land on which they are located, are hereby declared to be a separate class of property and shall constitute a classification for local taxation separate from other classifications of real property. The governing body of any county, city, or town may, by ordinance, levy a tax on the value of such buildings at a different rate from that of tax levied on other real property. The rate of tax imposed by any county, city, or town on such buildings shall not exceed that applicable to the general class of real property. B. For purposes of this section, an energy-efficient building is any building that exceeds the energy efficiency standards prescribed in the Virginia Uniform Statewide Building Code by 30 percent. Energy-efficient building certification for purposes of this subsection shall be determined by any qualified architect, professional engineer, or licensed contractor who is not related to the taxpayer and who shall certify to the taxpayer that he or she has qualifications to provide the certification. C. Notwithstanding the provisions of subsection B, for purposes of this section, an energyefficient building may also be any building that (i) meets or exceeds performance standards of the Green Globes Green Building Rating System of the Green Building Initiative, (ii) meets or exceeds performance standards of the Leadership in Energy and Environmental Design (LEED) Green Building Rating System of the U.S. Green Building Council, (iii) meets or exceeds performance standards or guidelines under the EarthCraft House Program, or (iv) is an Energy Star qualified home, the energy efficiency of which meets or exceeds performance guidelines for energy efficiency under the Energy Star program developed by the United States Environmental Protection Agency. Energy-efficient building certification for purposes of this subsection shall be determined by (a) the granting of a certification under one of the programs in clauses (i) through (iv) that certifies the building meets or exceeds the performance standards or guidelines of the program, or (b) a qualified architect or professional engineer designated by the county, city, or town who shall determine whether the building meets or exceeds the performance standards or guidelines under any program described in clauses (i) through (iv). § 2.2-1182. Short title; definitions A. This article shall be known and may be cited as the High Performance Buildings Act. B. As used in this article, unless the context requires a different meaning: “High performance building certification program” means a public building design, construction, and renovation program that meets the requirements of VEES. “VEES” means the Virginia Energy Conservation and Environmental Standards developed by the Department considering the U.S. Green Building Council (LEED) green building rating standard, the Green Building Initiative “Green Globes” building standard, and other appropriate requirements as determined by the Department. 12096859.2 § 2.2-1183. Building standards; exemption A. Any executive branch agency or institution entering the design phase for the construction of a new building greater than 5,000 gross square feet in size or the renovation of a building where the cost of the renovation exceeds 50 percent of the value of the building, shall conform to VEES and the building shall be designed, constructed, verified, and operated to comply with the high performance building certification program. B. The Director of the Department may grant an exemption from the design and construction standards required by subsection A upon a finding that special circumstances make the construction or renovation to the standards impracticable. 12096859.2 Washington (back to top) RCW 39.35D.020 Definitions. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise. (1) "Department" means the department of enterprise services. (2) "High-performance public buildings" means high-performance public buildings designed, constructed, and certified to a standard as identified in this chapter. (3) "Institutions of higher education" means the state universities, the regional universities, The Evergreen State College, the community colleges, and the technical colleges. (4) " LEED silver standard" means the United States green building council leadership in energy and environmental design green building rating standard, referred to as silver standard. (5) (a) Major facility project" means: (i) A construction project larger than five thousand gross square feet of occupied or conditioned space as defined in the Washington state energy code; or (ii) a building renovation project when the cost is greater than fifty percent of the assessed value and the project is larger than five thousand gross square feet of occupied or conditioned space as defined in the Washington state energy code. (b) "Major facility project" does not include: (i) Projects for which the department, public school district, or other applicable agency and the design team determine the LEED silver standard or the Washington sustainable school design protocol to be not practicable; or (ii) transmitter buildings, pumping stations, hospitals, research facilities primarily used for sponsored laboratory experimentation, laboratory research, or laboratory training in research methods, or other similar building types as determined by the department. When the LEED silver standard is determined to be not practicable for a project, then it must be determined if any LEED standard is practicable for the project. If LEED standards or the Washington sustainable school design protocol are not followed for the project, the public school district or public agency shall report these reasons to the department. (6) 12096859.2 "Public agency" means every state office, officer, board, commission, committee, bureau, department, and public higher education institution. (7) "Public school district" means a school district eligible to receive state basic education moneys pursuant to RCW 28A.150.250 and 28A.150.260. (8) "Washington sustainable school design protocol" means the school design protocol and related information developed by the office of the superintendent of public instruction, in conjunction with school districts and the school facilities advisory board. RCW 39.35D.030 Standards for major facility projects — Annual reports. (1) All major facility projects of public agencies receiving any funding in a state capital budget, or projects financed through a financing contract as defined in RCW 39.94.020, must be designed, constructed, and certified to at least the LEED silver standard. This subsection applies to major facility projects that have not entered the design phase prior to July 24, 2005, and to the extent appropriate LEED silver standards exist for that type of building or facility. (2) All major facility projects of any entity other than a public agency or public school district receiving any funding in a state capital budget must be designed, constructed, and certified to at least the LEED silver standard. This subsection applies to major facility projects that have not entered the grant application process prior to July 24, 2005, and to the extent appropriate LEED silver standards exist for that type of building or facility. (3) (a) Public agencies, under this section, shall monitor and document ongoing operating savings resulting from major facility projects designed, constructed, and certified as required under this section. (b) Public agencies, under this section, shall report annually to the department on major facility projects and operating savings. (4) The department shall consolidate the reports required in subsection (3) of this section into one report and report to the governor and legislature by September 1st of each even-numbered year beginning in 2006 and ending in 2016. In its report, the department shall also report on the implementation of this chapter, including reasons why the LEED standard was not used as required by RCW 39.35D.020(5)(b). The department shall make recommendations regarding the ongoing implementation of this chapter, including a discussion of incentives and disincentives related to implementing this chapter. (5) For the purposes of determining compliance with the requirement for a project to be designed, constructed, and certified to at least the LEED silver standard, the department must credit one additional point for a project that uses wood products with a credible third-party sustainable forest certification or from forests regulated under chapter 76.09 RCW, the Washington forest practices act. For projects that 12096859.2 qualify for this additional point, and for which an additional point would have resulted in formal certification under the LEED silver standard, the project must be deemed to meet the standard under this section. RCW 39.35D.040 Public school district major facility projects — Standards — Annual reports — Advisory committee. (1) All major facility projects of public school districts receiving any funding in a state capital budget must be designed and constructed to at least the LEED silver standard or the Washington sustainable school design protocol. To the extent appropriate LEED silver or Washington sustainable school design protocol standards exist for the type of building or facility, this subsection applies to major facility projects that have not received project approval from the superintendent of public instruction prior to: (a) July 1, 2006, for volunteering school districts; (b) July 1, 2007, for class one school districts; and (c) July 1, 2008, for class two school districts. (2) Public school districts under this section shall: (a) Monitor and document appropriate operating benefits and savings resulting from major facility projects designed and constructed as required under this section for a minimum of five years following local board acceptance of a project receiving state funding; and (b) report annually to the superintendent of public instruction. The form and content of each report must be mutually developed by the office of the superintendent of public instruction in consultation with school districts. (3) The superintendent of public instruction shall consolidate the reports required in subsection (2) of this section into one report and report to the governor and legislature by September 1st of each even-numbered year beginning in 2006 and ending in 2016. In its report, the superintendent of public instruction shall also report on the implementation of this chapter, including reasons why the LEED standard or Washington sustainable school design protocol was not used as required by RCW 39.35D.020(5)(b). The superintendent of public instruction shall make recommendations regarding the ongoing implementation of this chapter, including a discussion of incentives and disincentives related to implementing this chapter. (4) The superintendent of public instruction shall develop and issue guidelines for administering this chapter for public school districts. The purpose of the guidelines is to define a procedure and method for employing and verifying compliance with the LEED silver standard or the Washington sustainable school design protocol. (5) The superintendent of public instruction shall utilize the school facilities advisory board as a high-performance buildings advisory committee comprised of affected public schools, the superintendent of public instruction, the department, and 12096859.2 others at the superintendent of public instruction's discretion to provide advice on implementing this chapter. Among other duties, the advisory committee shall make recommendations regarding an education and training process and an ongoing evaluation or feedback process to help the superintendent of public instruction implement this chapter. (6) For projects that comply with this section by meeting the LEED silver standard, the superintendent of public instruction must credit one additional point for a project that uses wood products with a credible third-party sustainable forest certification or from forests regulated under chapter 76.09 RCW, the Washington forest practices act. For projects that qualify for this additional point, and for which an additional point would have resulted in formal certification under the LEED silver standard, the project must be deemed to meet the requirements of subsection (1) of this section. RCW 39.35D.050 Annual reports — Submission to legislature. On or before January 1, 2009, the department and the superintendent of public instruction shall summarize the reports submitted under RCW 39.35D.030(4) and 39.35D.040(3) and submit the individual reports to the legislative committees on capital budget and ways and means for review of the program's performance and consideration of any changes that may be needed to adapt the program to any new or modified standards for high-performance buildings that meet the intent of this chapter. RCW 39.35D.060 Guidelines for administration of chapter — Amendment of fee schedules — Architecture and engineering services — Building commissioning — Preproposal conferences — Advisory committee. (1) 12096859.2 (a) The department, in consultation with affected public agencies, shall develop and issue guidelines for administering this chapter for public agencies. The purpose of the guidelines is to define a procedure and method for employing and verifying activities necessary for certification to at least the LEED silver standard for major facility projects. (b) The department and the office of the superintendent of public instruction shall amend their fee schedules for architectural and engineering services to accommodate the requirements in the design of major facility projects under this chapter. (c) The department and the office of the superintendent of public instruction shall procure architecture and engineering services consistent with chapter 39.80 RCW. (d) Major facility projects designed to meet standards identified in this chapter must include building commissioning as a critical cost-saving part of the construction process. This process includes input from the project design and construction teams and the project ownership representatives. (e) As provided in the request for proposals for construction services, the operating agency shall hold a preproposal conference for prospective bidders to discuss compliance with and achievement of standards identified in this chapter for prospective respondents. (2) The department shall create a high-performance buildings advisory committee comprised of representatives from the design and construction industry involved in public works contracting, personnel from the affected public agencies responsible for overseeing public works projects, the office of the superintendent of public instruction, and others at the department's discretion to provide advice on implementing this chapter. Among other duties, the advisory committee shall make recommendations regarding an education and training process and an ongoing evaluation or feedback process to help the department implement this chapter. (3) The department and the office of the superintendent of public instruction shall adopt rules to implement this section. RCW 39.35D.070 Liability for failure to meet standards. A member of the design or construction teams may not be held liable for the failure of a major facility project to meet the LEED silver standard or other LEED standard established for the project as long as a good faith attempt was made to achieve the LEED standard set for the project. RCW 39.35D.080 Affordable housing projects — Exemption. Except as provided in this section, affordable housing projects funded out of the state capital budget are exempt from the provisions of this chapter. On or before July 1, 2008, the department of community, trade, and economic development shall identify, implement, and apply a sustainable building program for affordable housing projects that receive housing trust fund (under chapter 43.185 RCW) funding in a state capital budget. The department of community, trade, and economic development shall not develop its own sustainable building standard, but shall work with stakeholders to adopt an existing sustainable building standard or criteria appropriate for affordable housing. Any application of the program to affordable housing, including any monitoring to track the performance of either sustainable features or energy standards or both, is the responsibility of the department of community, trade, and economic development. Beginning in 2009 and ending in 2016, the department of community, trade, and economic development shall report to the department as required under RCW 39.35D.030(3)(b). 12096859.2 RCW 39.35D.090 Use of local building materials and products — Intent. It is the intent and an established goal of the LEED program as authored by the United States green building council to increase demand for building materials and products that are extracted and manufactured locally, thereby reducing the environmental impacts and to support the local economy. Therefore, it is the intent of the legislature to emphasize this defined goal and establish a priority to use Washington state based resources, building materials, products, industries, manufacturers, and other businesses to provide economic development to Washington state and to meet the objectives of this chapter. RCW 39.35D.800 Performance review — Report. The joint legislative audit and review committee, or its successor legislative agency, shall conduct a performance review of the high-performance buildings program established under this chapter. (1) (2) The performance audit shall include, but not be limited to: (a) The identification of the costs of implementation of high-performance building[s] standards in the design and construction of major facility projects subject to this chapter; (b) The identification of operating savings attributable to the implementation of high-performance building[s] standards, including but not limited to savings in energy, utility, and maintenance costs; (c) The identification of any impacts of high-performance buildings standards on worker productivity and student performance; and (d) An evaluation of the effectiveness of the high-performance building[s] standards established under this chapter, and recommendations for any changes in those standards that may be supported by the committee's findings. The committee shall make a preliminary report of its findings and recommendations on or before December 1, 2010, and a final report on or before July 1, 2011. RCW 47.01.078 Transportation system policy goals — Duties. To support achievement of the policy goals described in RCW 47.04.280, the department shall: 12096859.2 (1) Maintain an inventory of the condition of structures and corridors in most urgent need of retrofit or rehabilitation; (2) Develop long-term financing tools that reliably provide ongoing maintenance and preservation of the transportation infrastructure; (3) Balance system safety and convenience through all phases of a project to accommodate all users of the transportation system to safely, reliably, and efficiently provide mobility to people and goods; (4) Develop strategies to gradually reduce the per capita vehicle miles traveled based on consideration of a range of reduction methods; (5) Consider efficiency tools, including high-occupancy vehicle and high-occupancy toll lanes, corridor-specific and systemwide pricing strategies, active traffic management, commute trip reduction, and other demand management tools; (6) Promote integrated multimodal planning; and (7) Consider engineers and architects to design environmentally sustainable, contextsensitive transportation systems. 12096859.2 West Virginia (back to top) § 22-29-1. Short title and effective date This article is called the Green Buildings Act and is effective July 1, 2012. § 22-29-2. Findings and purpose (a) The Legislature finds that: (1) Encouraging the construction of energy-efficient public buildings is in the public interest and promotes the general welfare of the people of the state. (2) Efficient energy use by public buildings contributes substantially to improving the environment. (3) Public buildings can be built in accordance with energy-efficient standards. (b) This article is enacted to more efficiently spend public funds and protect the health and welfare of West Virginia residents. § 22-29-3. Definitions As used in this article: (a) “ANSI” means the American National Standards Institute; (b) “ASHRAE” means the American Society of Heating, Refrigerating and Air-Conditioning Engineers; (c) “IESNA” means the Illuminating Engineering Society of North America; (d) “ICC” means the International Code Council; and (e) “Public agency” means an agency of the state and political subdivisions, public institutions of higher education and boards of education. § 22-29-4. Minimum energy standards for new building construction projects of public agencies All new building construction projects of public agencies that have not entered the schematic design phase prior to July 1, 2012, or any building construction project receiving state grant 12096859.2 funds and appropriations, including public schools, that have not entered the schematic design phase prior to July 1, 2012, shall be designed and constructed complying with the ICC International Energy Conservation Code, adopted by the State Fire Commission, and the ANSI/ASHRAE/IESNA Standard 90.1-2007: Provided, That if any construction project has a commitment of federal funds to pay for a portion of such project, this section shall only apply to the extent such standards are consistent with the federal standards. 12096859.2 Wisconsin (back to top) EXECUTIVE ORDER # 145 Relating to Conserve Wisconsin and the Creation of High Performance Green Building Standards and Energy Conservation for State Facilities and Operations WHEREAS, the State of Wisconsin has a responsibility to save taxpayer dollars and promote economic development while improving the environment and health of Wisconsin citizens and future generations by incorporating high performance green building standards into the design, construction and operations processes of state buildings; and WHEREAS, Wisconsin has a proud tradition of national leadership in conservation, energy and public health that provides a high quality of life for Wisconsin residents and businesses; and WHEREAS, the State of Wisconsin owns over 6,200 facilities with a total replacement value in excess of $9.5 billion, costing more than $125 million dollars annually in utility costs alone to operate; and WHEREAS, high performance green building practices can substantially cut costs of operating and maintaining state buildings over the life of the building such that a small investment in green building design yields long-term financial benefits of more than ten times the initial investment while conserving energy, water, materials and land, and improving worker health and productivity; and WHEREAS, the adoption of high performance green building standards in new and existing buildings will help protect the health and well-being of our children, students, employees and citizens; and WHEREAS, Wisconsin state agencies, through their practices and through public/private partnerships, can have quantifiable, positive environmental and economic impacts; and WHEREAS, Wisconsin is dedicated to the environmental health and safety of its employees, and to efficient and effective work environments in state-owned facilities; and WHEREAS, the State of Wisconsin enjoys a unique and timely opportunity to design, construct, and renovate buildings for the twenty-first century that will serve the needs of our citizens and employees for years to come and that will incorporate a building’s life cycle and reduced operating costs; and WHEREAS, it is in the best interests of the people of Wisconsin that all state buildings constructed, expanded, or renovated shall be modern facilities of the twenty-first century, combining energy-efficient design, environmentally sustainable systems, and maximum access and benefit to employees and the public; 12096859.2 NOW, THEREFORE, I, JIM DOYLE, Governor of the State of Wisconsin by the authority vested in me by the Constitution and the Laws of this State do hereby: 1. Direct the Department of Administration, in consultation with state agencies and the UW System, to set energy efficiency goals for state facilities, office buildings or complexes, and campuses for FY07, FY08, and FY09 by July 30th 2006. The goals should reduce overall actual energy usage per square foot by at least 10% by FY08 from the FY05 state energy report baseline adjusted for weather and 20% by 2010. I further direct the Department of Administration and state agencies to use all existing statutory authority in implementing measures to achieve these energy goals; and 2. Direct the Department of Administration, in consultation with state agencies and the UW System, to establish programs for energy analysis of state-owned buildings and identify reduced energy use under section 16.858 of the Wisconsin Statutes. In addition, any state agency responsible for state-owned facilities will examine the feasibility for a performance contract for energy and operational cost savings under section 16.858 of the Wisconsin Statutes. The Department of Administration will provide centralized reporting and coordination of comprehensive capital energy improvements; and 3. Direct the Department of Administration to work with the Building Commission and the Energy Center of Wisconsin to ensure that new state facilities are constructed to be 30% more energy efficient than commercial code; and 4. Direct the Department of Administration, in consultation with state agencies and UW System, to ensure better oversight and management of energy purchasing through measures such as utility billing audits, consolidation of accounts and utility bills, and proactive elimination of unnecessary utility accounts; and 5. Direct the Department of Administration to establish sustainable building operation guidelines (for owned and leased properties), which shall be adopted by the Division of State Facilities within six (6) months following the date of this order, based on the Leadership in Energy and Environmental Design (LEED tm) Green building Rating System for New Construction and existing Buildings and other comparable sustainable guidelines and rating systems. The State guidelines will recognize the use of wood-based materials and products from the Forest Stewardship Council (FSC), American Tree Farm System (ATFS), and Sustainable Forest Initiative (SFI) certification programs. For certification, LEED tm and other comparable sustainable guidelines and rating systems may be pursued and the Department of Administration will support projects that request certification as part of the initial project request. In addition, the State will give credit for the use of wood based products and materials from FSC, ATFS and SFI certification programs when LEED tm certification is pursued. These guidelines will apply to the operations and construction of all new buildings, additions and retrofit projects, including planning, siting, budgeting, design, construction and 12096859.2 deconstruction. In addition, these guidelines will address sustainable operation and maintenance, including green cleaning, green purchasing waste reduction and recycling, pollution prevention, energy and water efficiency, and light pollution in existing buildings. The guidelines should include identifying performance data that will be measured to assess the effectiveness of the efforts and for benchmarking purposes. Progress and Outcomes will be reported annually to the Governor’s office as well as the State of Wisconsin Building Commission; and 6. Direct that the Department of Administration, at a minimum, shall ensure that on each project the following approaches are implemented: an integrated design process including high performance green goal-setting charrettes; energy modeling used as a design tool and then truthed at the phase of construction documents on buildings more than 20,000SF or Advanced Building Guidelines for those up to 80,000SF; commissioning and retrocommissioning; review at completion of Schematic Design, Design Development documents and Construction Documents that the design intent of the green goals are incorporated into the documents and are being met; minimum indoor air quality approaches to construction; and, minimal ventilation requirements for indoor environmental quality that meet the current version of ASHRAE, now ASHRAE 62.1- 2004 Ventilation for Acceptable Indoor Air Quality. Further, the Department of Administration shall provide performance information on a project-by-project basis as part of a statewide building performance database; and 7. Direct the Department of Administration to pursue demonstration projects at state facilities, including the Capitol and Executive Residence, regarding use of photovoltaic (PV) and other renewable technologies to generate electricity and use alternative fuels for heating and cooling; and 8. Direct that each state agency and the UW System assign a lead person to work with the Department of Administration in the development of the sustainability and energy efficiency goals, the budget and management review, the purchasing of renewable energy, and the implementation of the sustainable building guidelines. IN TESTIMONY WHEREOF, I have hereunto set my hand and caused the Great Seal of the State of Wisconsin to be affixed. Done at the Capitol in the City of Madison this eleventh day of April, in the year two thousand and six. JIM DOYLE Governor By the Governor: 12096859.2