Senate panel passes energy lease-purchase bill

The Senate Government Affairs Committee voted Thursday to recommend passage of legislation to encourage private business to help public entities with energy conservation programs.

Assembly Bill 398 was sponsored by Assemblyman Jason Geddes, R-Reno, who said many public entities don't have the money up front to pay for energy retrofits and installations that could save them thousands of dollars a year.

He said the bill, which has already been approved by the Assembly, would allow governments to enter lease-purchase agreements with energy contractors. The contractor would install the energy saving devices. The local government would pay for them over a period of up to 20 years using the savings from the retrofits.

Geddes said after the contract was paid off, the governmental entity would continue to enjoy the savings as a reduction in costs.

When the Assembly passed the legislation, it was changed so that only state agencies could use the program, not locals. They made it into a two-year pilot program and the maximum contract was cut to four years instead of 20. But the bill was amended back to its original form after Southern Nevada Water Authority requested locals be allowed to use the program. Purchasing officials said they were concerned small local entities could get into trouble with long contracts.

Sen. Randolph Townsend, R-Reno, said that defeats the core purpose of the bill.

"We are never going to get these cost saving measures off the ground as long as some one has an objection," he said.

Geddes said he supports adding local governments back in.

"I truly believe that a lot of the benefits that will come forward will come to local governments and school districts," he said.

Townsend moved to add locals back into the bill, extend the maximum contract to 20 years and recommend passage of AB398. He also took the sunset off the legislation.

The committee agreed and recommended the Senate pass the legislation.