SB 212: CONTRACTS: Provides for energy efficiency contracts. (8/1/25) (EN SEE FISC NOTE LF EX) - Louisiana

Senate Floor Bureau Note, #1294, McMath, Adopted → SB212 Act 451 · 4 edits

MODERATE

This bill transforms the legislative process for energy efficiency contracts by replacing the mandatory 'Request for Proposals' with a flexible 'Request for Qualifications' (RFQ) system. It allows government entities to first select the most qualified energy service providers based on experience and financial strength before negotiating specific project details, rather than requiring a full technical proposal upfront. The bill also updates the legal definition of 'annual energy savings' to explicitly include avoided capital expenditures, deferred maintenance, and labor savings, ensuring these financial benefits are counted toward contract guarantees.

Scope change

The bill expands the scope of allowable savings calculations and introduces a new two-phase procurement method (RFQ followed by negotiation) that was not previously available in the statute.

REQUIREMENT

Added a new qualifications-based selection process allowing political subdivisions to issue an RFQ to identify top-tier energy providers before requesting detailed technical proposals.

Authorized political subdivisions to require and potentially reimburse for 'investment grade audits' by proposers prior to contract execution.

Changed the mandatory procurement language to allow for an RFQ process instead of strictly requiring a request for proposals for all contracts.

DEFINITION

Expanded the definition of 'annual energy savings' to include avoided capital costs, deferred maintenance, labor savings, and increased revenues from utility upgrades, not just direct utility bill reductions.

SB212 Original → Senate Floor Bureau Note, #1294, McMath, Adopted · 2 edits

MINOR

The bill was amended to correct terminology throughout the text, changing references from 'proposals' to 'responses' or 'qualifications' to align with standard procurement language. Additionally, the text was updated to clarify that political subdivisions may use a 'request for qualifications' (RFQ) to select providers before developing technical proposals, streamlining the selection process for energy efficiency services.

DEFINITION

Replaced the term 'proposals' with 'responses' and 'qualifications' to ensure consistent and accurate terminology in the procurement process.

REQUIREMENT

Clarified that political subdivisions can issue a 'request for qualifications' to identify the most qualified energy service provider before requiring a technical proposal or audit.

SB212 Enrolled → SB212 Original · 5 edits

MODERATE

The bill was renumbered and its text was updated to clarify the legal definition of 'performance-based energy efficiency contracts' and expand the types of contracts political subdivisions can use. The changes add specific thresholds for when third-party audits are required, introduce new contract structures like 'Energy-as-a-Service,' and allow multiple subdivisions to jointly hire consultants.

Scope change

The bill now explicitly includes 'Energy-as-a-Service' and 'shared-savings' contracts as valid structures, broadening the scope beyond just guaranteed-savings models. It also clarifies that audits are not required for projects under $500,000.

DEFINITION

Added a specific definition for 'performance-based energy efficiency contracts' to clarify that payment obligations must be either a percentage of savings or guaranteed to be less than potential savings.

ELIGIBILITY

Added a new exception stating that third-party evaluation consultants are not required if the total proposed project cost is less than $500,000.

REQUIREMENT

Added a new provision allowing two or more political subdivisions to jointly engage an independent third-party consultant for shared services.

Expanded the list of allowable contract structures to include 'shared-savings' and 'Energy-as-a-Service (EaaS)' agreements.

Updated the mandatory advertisement requirements to include written notice to known potential providers at least 42 days before the deadline.

SB212 Reengrossed → SB212 Enrolled · 5 edits · Jun 20, 2025

MODERATE

The bill was finalized as 'Enrolled' and includes significant updates to how energy efficiency contracts are managed. Key changes require independent third-party consultants to evaluate proposals before contracts are awarded and mandate that savings be measured annually. Additionally, the bill clarifies that audit costs can be reimbursed or financed within the contract and allows for qualifications-based selection processes to identify the best providers.

REQUIREMENT

Requires political subdivisions to hire an independent third-party consultant to review and evaluate proposals before awarding performance-based energy efficiency contracts.

Changed the savings measurement requirement from a general annual basis to explicitly requiring annual measurement unless the third-party consultant approves a different schedule based on year-one performance.

Reinforces that 50% of proposal evaluation criteria must focus on performance metrics like shortest payback, maximum savings, and quality of the selected energy conservation measure.

FISCAL

Clarifies that the cost of investment-grade audits can be reimbursed as part of the contract if the proposer is selected or included in the total project cost.

ELIGIBILITY

Introduces a qualifications-based selection process allowing subdivisions to identify the most qualified energy services provider before requesting technical proposals or audits.

SB212 Engrossed → SB212 Reengrossed · 3 edits · Jun 9, 2025

MINOR

The bill was reengrossed to correct formatting errors and reorganize the selection process for energy efficiency audits. The most significant change is the reordering of the procedural steps, moving the qualifications-based selection method to precede the guaranteed-savings and shared-savings contract options. This clarifies that officials must first identify qualified providers before negotiating specific contract types.

Scope change

The scope of applicability remains the same, but the procedural requirements for selecting vendors have been restructured to prioritize a qualifications-based selection process.

REQUIREMENT

Reordered the selection methods so that a qualifications-based selection process is now listed before guaranteed-savings and shared-savings contracts.

TECHNICAL

Corrected a typo changing 'non-selected' to 'nonselected' and removed redundant text regarding required audits.

Fixed formatting inconsistencies in the section headers and numbering throughout the document.

CONTRACTS: Provides for energy efficiency contracts. (8/1/25) (EN SEE FISC NOTE LF EX)

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