House Bill No. 12
Introduced By quilici, bergsagel
By Request of the Department of Environmental Quality and the Office of Budget and Program Planning
A Bill for an Act entitled: An Act authorizing the issuance of general obligation bonds to fund the state building energy conservation program; approving energy conservation projects for fiscal years 1998 and 1999; appropriating bond proceeds to the department of environmental quality; pledging the credit of the state of Montana to secure the bonds to be issued; reappropriating stripper-well payments contained in the federal special revenue fund; and providing an effective date.
Be it enacted by the Legislature of the State of Montana:
Section 1. Stripper-well payments -- reappropriation -- definition -- priority. (1) There is reappropriated from the stripper-well payments contained in the federal special revenue fund to the department of environmental quality $100,000 to fulfill duties authorized by 90-4-605 and 90-4-607. The original appropriation was contained in section 9, Chapter 597, Laws of 1989. The reappropriation is a biennial appropriation.
(2) (a) "Stripper-well payments" means the oil overcharge payments made to the United States treasury for distribution to the state of Montana as the result of the final settlement agreement in Cause No. M.D.L. 378, United States district court for the district of Kansas, and any interest accrued on the payments.
(b) The term does not include stripper-well payments that have been expended or legally obligated or have been incorporated into any of the existing federal energy programs as the result of prior appropriations by the legislature.
(3) The stripper-well payments reappropriated in this section have a higher priority than any other appropriation of stripper-well payments for fiscal years 1998 and 1999.
Section 2. Appropriation of bond proceeds. There is appropriated from bond proceeds authorized by Chapter 571, Laws of 1991, Chapter 350, Laws of 1993, Chapter 61, Laws of 1995, and [section 4] $625,000 to the department of environmental quality to fulfill duties under 90-4-605 and 90-4-607. This appropriation is a biennial appropriation.
Section 3. Approval of energy conservation projects -- definition. (1) Pursuant to Title 90, chapter 4, part 6, the legislature approves the following energy conservation projects for fiscal years 1998 and 1999.
Department of Administration
Scott Hart Building
Fish, Wildlife, and Parks Headquarters Building
Walt Sullivan Building (Labor and Industry)
Capitol Complex Lighting Upgrades
Montana State University-Billings
College of Technology Building
Physical Education Building
Department of Corrections
State Board of Education
School for Deaf and Blind Lighting Project
(2) In addition to the energy conservation projects listed in subsection (1), the department of environmental quality may expend funds appropriated under [section 4] to respond to lost energy saving opportunities. This includes coordination of energy conservation improvement projects with the long-range building program's capital improvement projects.
(3) For purposes of this section, a "lost energy saving opportunity" means an opportunity to improve energy use that would provide significant energy and cost savings to the state and that will be technically infeasible or uneconomical if the department of environmental quality is delayed in providing the necessary funds until specific legislative approval can be obtained.
(4) The department of environmental quality shall encourage and use, when appropriate, performance contracting and guaranteed savings arrangements with private energy service companies. These arrangements must be coordinated by the departments of environmental quality and administration. Agencies may arrange financing other than state bonds for energy efficiency improvements in buildings supported by student fees and revenue. Whenever these improvements are financed in whole or in part using state general obligation bonds, resulting energy cost savings must be transferred to the energy conservation program account as provided in 90-4-614. Whenever these improvements are financed in whole or in part using other state financing, including revenue bonds and the intercap program operated by the board of investments, resulting energy cost savings in excess of debt service, as determined by the department of environmental quality, must be transferred to the energy conservation program account as provided in 90-4-614. Whenever these improvements are financed entirely by private sources, the financing terms for these buildings must be provided for in a performance contract developed jointly by the agency and the departments of environmental quality and administration, and any resulting energy cost savings in these buildings in excess of debt service and program costs may not be transferred from the agency's budget.
(5) If the costs of the projects authorized in subsections (1) and (2) are substantially below the bond amount authorized in [section 4], the department of environmental quality may fund projects that otherwise would be proposed as part of the state building energy conservation package for fiscal years 2000 and 2001.
Section 4. Bond authorization -- appropriation of bond proceeds. (1) The board of examiners may, pursuant to 90-4-611, issue and sell bonds of the state in an aggregate principal amount not to exceed $5 million for fiscal years 1998 and 1999 for the projects approved in [section 3] and to fulfill duties authorized by 90-4-605 and 90-4-607, as provided in [section 2]. The bonds are general obligations for which the full faith and credit and taxing powers of the state are pledged for payment of the principal and interest on the bonds. The bonds must be issued as provided by Title 17, chapter 5, part 8.
(2) The proceeds of the bonds, other than any premiums and accrued interest received, must be deposited in the energy conservation program account established by 90-4-612. Premiums and accrued interest must be deposited in the debt service fund established in 17-2-102. Proceeds of bonds deposited in the energy conservation program account may be used to pay the costs of issuing the bonds, to fulfill duties authorized by 90-4-605 and 90-4-607, and to fund the projects approved in [section 3]. For purposes of 17-5-803 and 17-5-804, the energy conservation program account constitutes a capital projects account. The bond proceeds must be available to the department of environmental quality and may be used for the purposes authorized in this section without further budgetary authorization.
Section 5. Requirements for approval of state debt. Because [section 4] authorizes the creation of a state debt, a vote of two-thirds of the members of each house is required for enactment of [section 4].
Section 6. Effective date. [This act] is effective July 1, 1997.