Fiscal Note - SB 0408 - Energy Savings Contracts for Governmental Units
L.R. NO. 1407-05
BILL NO. Truly Agreed To and Finally Passed HCS for SCS for SB 408
SUBJECT: Counties: Cities and Municipalities
TYPE: Original
DATE: April 24, 1997
FISCAL SUMMARY
ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
State Funds $0 $0 $0
ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
None
Total Estimated
Net Effect on All
Federal Funds $0 $0 $0
ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 1998 FY 1999 FY 2000
Local Government $0 $0 $0
FISCAL ANALYSIS
ASSUMPTION
Officials of the following Departments/agencies assumed in response to a
similar proposal there would be no fiscal impact to their agencies: Office
of Administration; Office of the Secretary of State; Labor and Industrial
Relations; State Courts Administrator; Corrections; Economic Development;
Southwest Missouri State University; Higher Education; Missouri Tax
Commission; Insurance; Mental Health; Public Safety; Revenue; Central
Missouri State University; Conservation; Harris-Stowe State College; Social
Services; Office of the Governor; Missouri Veterans Commission; Office of the
Lt. Governor; Office of the State Auditor; Transportation; Missouri House of
Representatives; Health; Missouri Gaming Commission; Elementary and Secondary
Education; Agriculture; Office of Prosecution Services; Missouri Western
State College; and Office of the Attorney General.
Officials of the Department of Natural Resources (DNR) assume the proposal
would allow governmental units to enter into installment payment contracts or
lease purchase agreements with qualified providers of energy services for the
purchase and installation of energy cost savings measures. Payments to
qualified providers from energy savings resulting from the installed measures
would be subject to appropriations by the General Assembly.
DNR officials stated depending on the level of participation, savings to
governmental units could be significant. In 1990, utility costs for state
government facilities was approximately $60 million per year for more than 60
million square feet in 5,000 state-owned facilities and an additional 3
million square feet in 400 leased buildings. Typically, energy projects that
are properly implemented and well-maintained can be expected to return from
10-50% or more in avoided costs or cost savings over the life of the project,
resulting in savings of approximately $6 - $30 million per year.
Oversight assumes that this proposal is permissive and has therefore not
shown any costs for energy saving materials or any long-term savings which
could result from energy cost savings measures.
FISCAL IMPACT - State Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Local Government FY 1998 FY 1999 FY 2000
(10 Mo.)
0 0 0
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of
this proposal.
DESCRIPTION
This proposal would allow state agencies, political subdivisions and other
governmental units outlined in the proposal to enter into a guaranteed energy
cost savings contract for an energy cost savings project with a cost savings
payback period of ten years or less, adjusted for inflation. The proposal
provides guidelines for participation in such contracts. State aid and other
amounts appropriated for distribution or reimbursement to a governmental unit
shall not be reduced as a result of energy cost savings realized from a
guaranteed energy cost savings contract or a lease purchase agreement for the
purchase and installation of energy conservation measures.
This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.
SOURCES OF INFORMATION
Office of Administration
Department of Agriculture
Department of Conservation
Department of Corrections
Department of Economic Development
Department of Elementary and Secondary Education
Department of Health
Department of Higher Education
Missouri Department of Transportation
Department of Insurance
Department of Labor and Industrial Relations
Department of Natural Resources
Department of Mental Health
Department of Public Safety
Department of Revenue
Department of Social Services
State Courts Administrator
State Tax Commission
Office of Prosecution Services
Missouri House of Representatives
Office of the State Auditor
Office of the Attorney General
Office of the Governor
Office of the Lieutenant Governor
Office of the Secretary of State
Central Missouri State University
Harris-Stowe State College
Missouri Western State College
Southwest Missouri State University
NOT RESPONDING - Lottery Commission, Missouri Senate, Office of the State
Treasurer, Truman State University, Lincoln University, Missouri Southern
State College, Northwest Missouri State University, Southeast Missouri State
University, University of Missouri
This Fiscal Note is not an official copy and should not be quoted or cited.