A bill introduced in the General Assembly would modify the authority of state and local governments, as well as school systems, to enter multi-year contracts for construction and procurement. In many prior posts, we have addressed state and local governments’ authority to enter guaranteed energy savings performance contracts and multi-year contracts.
- Energy Savings Performance Contracts – Construction and Utility Law | Atlanta | AHC Law
- Energy Savings Contracts: Risks and Rewards – Construction and Utility Law | Atlanta | AHC Law
- Energy Savings Performance Contracts: Risks and Rewards for Local Governments – Construction and Utility Law | Atlanta | AHC Law
- Georgia State and Local Governments Receive Expanded Authority for Conservation Projects – Construction and Utility Law | Atlanta | AHC Law
- Update on Georgia Energy Savings Performance Contracting – Construction and Utility Law | Atlanta | AHC Law
- The Impact of Ambiguity in Construction and Engineering Contracts for Energy Projects – Construction and Utility Law | Atlanta | AHC Law
State and Local Governments’ Guaranteed Energy Savings Performance Contracts
HB 306 would clarify (or expand) state the local governments’ authority to enter into guaranteed energy savings performance contracts. Such contracts must implement an “energy conservation measure,” which includes, among others, projects that implement a “facility alternation” that accomplishes certain objectives. The term “facility” was not previously defined. So HB 306 adds the following definition:
‘Facility’ means any or all portions of buildings, structures, sites, complexes, equipment, rolling stock, or other conveyances, roads, walks, passageways, parking lots, or other real or personal property, including, but not limited to, the site where the building, property, structure, or equipment is located.”
In addition, the bill would eliminate the restrictions on improvements not causally connected to energy conservation measures. Currently, the statute places limitations on the authority to include “unrelated” improvements in an energy savings performance contract. If passed, HB 306 would eliminate those limitations.
School Systems’ Multi-Year Contracts
If passed, Georgia HB 306 would allow school systems to enter multi-year contracts for projects that are designed to generate revenue. Currently, the law permits “guaranteed cost savings measures” that reduced energy or water consumption, or wastewater production, or operating costs. But the bill would expand the permitted projects to include revenue-generating projects.
The bill also clarifies that school systems’ multi-year contracts permitted under the statute may be entered without competitive bidding.
Read other posts about construction issues for school construction and procurement:
- Part I: Key Provisions of School Facility Construction & Design Contracts – Construction and Utility Law | Atlanta | AHC Law
- Part II: Key Provisions of School Facility Construction & Design Contracts – Construction and Utility Law | Atlanta | AHC Law
UPDATE: HB 306 did not pass.