GENERAL ASSEMBLY OF NORTH CAROLINA
1993 SESSION
CHAPTER 334
The General Assembly of North Carolina enacts:
Section 1. The title of Article 3B of Chapter 143 of the General Statutes reads as rewritten:
"Energy Policy
for State Agencies Concerning Major
Construction or
Renovation of Buildings. Government."
Sec. 2. G.S. 143-64.10 reads as rewritten:
"§
143-64.10. Findings of General Assembly. Findings; policy.
(a) The General Assembly hereby finds:
(1) That the State should take a leadership role in aggressively undertaking energy conservation in North Carolina;
(1)(2) That state-owned and assisted
facilities State facilities have a significant impact on the State's
consumption of energy;
(2)(3) That energy conservation practices
adopted for the design, construction, and utilization operation,
maintenance, and renovation of these facilities and for the purchase,
operation, and maintenance of equipment for these facilities will have a
beneficial effect on the State's overall supply of energy;
(3)(4) That the cost of the energy
consumed by these facilities and the equipment for these facilities over
the life of the facilities must be considered, in addition to the initial cost
of constructing such facilities; and cost;
(4)(5) That the cost of energy is
significant and facility designs must take into consideration the total
life-cycle cost, including the initial construction cost, and the cost, over the
economic life of the facility, of the energy consumed, and of operation and
maintenance of the facility as it affects energy consumption. consumption;
and
(6) That State government should undertake a program to reduce energy use in State facilities and equipment in those facilities in order to provide its citizens with an example of energy-use efficiency.
(b) The General
Assembly declares that it It is the policy of the State of North
Carolina to insure ensure that energy conservation practices are
employed in the design of state-owned and assisted facilities. To this
end the General Assembly encourages State agencies to analyze the cost of
energy consumption of each facility constructed or each major facility
constructed or renovated, over its economic life, in addition to the initial
construction or renovation cost. design, construction, operation,
maintenance, and renovation of State facilities and in the purchase, operation,
and maintenance of equipment for State facilities."
Sec. 3. G.S. 143-64.11 reads as rewritten:
"§ 143-64.11. Definitions.
For purposes of this Article:
(1) The term 'economic 'Economic
life' means the projected or anticipated useful life of a facility.
(2) The term
'energy-consumption 'Energy-consumption analysis' means the
evaluation of all energy-consuming systems and components by demand and type of
energy, including the internal energy load imposed on a facility by its
occupants, equipment and components, and the external energy load imposed on
the facility by climatic conditions.
(2a) 'Energy Division' means the Energy Division of the Department of Commerce.
(2b) 'Energy-consuming system' includes but is not limited to the following equipment or measures:
a. Equipment used to heat, cool, or ventilate the facility;
b. Equipment used to heat water in the facility;
c. Lighting systems;
d. On-site equipment used to generate electricity for the facility;
e. On-site equipment that uses the sun, wind, oil, natural gas, liquid propane gas, coal, or electricity as a power source; and
f. Energy conservation measures in the facility design and construction that decrease the energy requirements of the facility.
(3) The term 'facility'
'Facility' means any building or facility on which construction
is initiated six months or more after July 1, 1975. a building or a
group of buildings served by a central energy distribution system or components
of a central energy distribution system.
(4) The term 'initial 'Initial
cost' means the required cost necessary to construct a facility or construct
or renovate a major facility.
(5) The term
'life-cycle cost' means the cost of a facility including its initial cost, and
the cost, over the economic life of the facility, of the energy consumed and of
operation and maintenance of the facility as it affects energy consumption. 'Life-cycle
cost analysis' means an analytical technique that considers certain costs of
owning, using, and operating a facility over its economic life, including but
not limited to:
a. Initial costs;
b. System repair and replacement costs;
c. Maintenance costs;
d. Operating costs, including energy costs; and
e. Salvage value.
(6) The term 'major
facility' means any building or facility of 40,000 or more gross square feet on
which construction or renovation is initiated six months or more after July 1,
1975, and wherein significant energy demands will exist.
(7) The term 'State 'State
agency' means the State of North Carolina or any board, bureau, commission,
department, institution, or other agency of the State, or any
board or governing body of a political subdivision of the State, including any
board of a community college, or an agency, commission, or authority of a
political subdivision of the State. State.
(8) The term
'state-assisted facility' or 'major state-assisted facility' 'State-assisted
facility' means a facility constructed, or major facility constructed
or renovated, renovated in whole or in part with State funds or
with funds guaranteed or insured by a State agency.
(9) The term 'State
facility' or 'major State facility' means a facility constructed, or
a major facility constructed or renovated, by a State agency."
Sec. 4. G.S. 143-64.12 reads as rewritten:
"§ 143-64.12. Authority and duties of State agencies.
(a) The General Assembly
authorizes and directs that State agencies shall carry out the construction and
renovation of State facilities, and the construction and renovation of
major State facilities, under their jurisdiction or programs for the
construction of state-assisted facilities and the construction and renovation
of major state-assisted facilities in such a manner as to further the
policy declared herein, insuring that life-cycle cost analyses and
energy-conservation practices are employed in new state-owned and assisted
facilities and in new or renovated major state-owned and assisted facilities. considered
and are employed whenever feasible and practicable.
(b) Each State agency
having jurisdiction over any state-owned or assisted facilities' construction
program shall evaluate each project, and if consistent with good architectural,
engineering, and economic practice, require life-cycle cost analysis. Nothing
in this Article shall deprive or limit any State agency which has review
authority over design or construction plans from requiring a life-cycle cost
analysis. The Department of Administration, in consultation with
the Energy Division, shall, to the extent feasible and practicable, develop and
implement policies, procedures, and standards to ensure that State purchasing
practices improve energy efficiency and take the cost of the product over the
economic life of the product into consideration. The Department of
Administration, in consultation with the Energy Division, shall adopt and
implement Building Energy Design Guidelines. These guidelines shall
include energy-use goals and standards, economic assumptions for life-cycle cost
analysis, and other criteria on building systems and technologies. The
Department of Administration shall modify the design criteria for construction
and renovation of facilities to require that a life-cycle cost analysis be
conducted pursuant to G.S. 143-64.15. The Department of Administration,
as part of the Facilities Condition and Assessment Program, shall identify and
recommend energy conservation maintenance and operating procedures that are
designed to reduce energy consumption within the facility and that require no
significant expenditure of funds. State departments, institutions, or agencies
shall implement these recommendations. Where energy management equipment
is proposed for State facilities, the maximum interchangeability and compatibility
of equipment components shall be required.
The Energy Division shall develop a comprehensive energy management program for State government. Each State agency shall develop and implement an energy management plan that is consistent with the State's comprehensive energy management program.
(c) This
life-cycle cost analysis shall include but not be limited to such
elements as:
(1) The
coordination, orientation and positioning of the facility on its physical site;
(2) The amount
and type of fenestration employed in the facility;
(3) Thermal
characteristics of materials, and the amount of insulation incorporated into
the facility design;
(4) The variable
occupancy and operating conditions of the facility, including illumination
levels;
(5) Architectural
features which affect energy consumption; and
(6) An
energy-consumption analysis of the major facility's heating, ventilating, and
air-conditioning system, lighting system, and all other energy-consuming
systems. The energy- consumption analysis of the operation of energy-consuming
systems in the major facility should include but not be limited to:
a. The
comparison of two or more system alternatives;
b. The
simulation or engineering evaluation of each system over the entire range of
operation of the major facility for a year's operating period; and
c. The
engineering evaluation of the energy consumption of component equipment in each
system considering the operation of such components at other than full or rated
outputs.
(d) The
life-cycle cost analysis performed for each major facility shall provide but
not be limited to the following information:
(1) The initial
estimated cost of each energy-consuming system being compared and evaluated;
(2) The
estimated annual operating cost of all utility requirements;
(3) The
estimated annual cost of maintaining each energy-consuming system; and
(4) The average
estimated replacement cost for each system expressed in annual terms for the
economic life of the major facility.
(e) The
life-cycle cost analysis shall be certified by a registered architect or
registered professional engineer, or by both architect and engineer, particularly
qualified by training and experience for the type of work involved, and in
conformance with the provisions of G.S. 133-1.1.
(f) Provided,
however, that in order to protect the integrity of historic buildings, no
provision of this Chapter shall be interpreted to require such analysis with
respect to any property eligible for, nominated to, or entered on the National
Register of Historic Places, pursuant to the National Historic Preservation Act
of 1966, P.L. 89- 665; any historic building located within an historic
district as provided in Chapters 160A or 153A of the North Carolina General
Statutes; any historic building listed, owned, or under the jurisdiction of an
historic properties commission as provided in Chapter 160A or 153A; nor any
state-owned or state-assisted historic property.
(g) Selection
of the optimum system or combination of systems to be incorporated into the
design of the major facility shall be based on the life-cycle cost analysis
over the economic life of the facility."
Sec. 5. G.S. 143-64.13 is repealed.
Sec. 6. Article 3B of Chapter 143 of the General Statutes is amended by adding a new section to read:
"§ 143-64.15. Life-cycle cost analysis.
(a) A life-cycle cost analysis shall include, but not be limited to, the following elements:
(1) The coordination, orientation, and positioning of the facility on its physical site;
(2) The amount and type of fenestration employed in the facility;
(3) Thermal characteristics of materials and the amount of insulation incorporated into the facility design;
(4) The variable occupancy and operating conditions of the facility, including illumination levels; and
(5) Architectural features which affect energy consumption.
(b) The life-cycle cost analysis performed for any State facility shall, in addition to the requirements set forth in subsection (a) of this section, include, but not be limited to, the following:
(1) An energy-consumption analysis of the facility's energy-consuming systems in accordance with the provisions of subsection (g) of this section;
(2) The initial estimated cost of each energy-consuming system being compared and evaluated;
(3) The estimated annual operating cost of all utility requirements;
(4) The estimated annual cost of maintaining each energy-consuming system; and
(5) The average estimated replacement cost for each system expressed in annual terms for the economic life of the facility.
(c) The General Assembly encourages any entity to conduct a life-cycle cost analysis pursuant to this section for the construction of any State-assisted facility or the renovation of any State-assisted facility of 40,000 or more gross square feet.
(d) The life-cycle cost analysis shall be certified by a registered professional engineer or bear the seal of a North Carolina registered architect, or both. The engineer or architect shall be particularly qualified by training and experience for the type of work involved, but shall not be employed directly or indirectly by a fuel provider, utility company, or group supported by fuel providers or utility funds. Plans and specifications for facilities involving public funds shall be designed in conformance with the provisions of G.S. 133-1.1.
(e) In order to protect the integrity of historic buildings, no provision of this Article shall be interpreted to require the implementation of energy-cost measures that conflict with respect to any property eligible for, nominated to, or entered on the National Register of Historic Places, pursuant to the National Historic Preservation Act of 1966, P.L. 89-665; any historic building located within an historic district as provided in Chapters 160A or 153A of the General Statutes; any historic building listed, owned, or under the jurisdiction of an historic properties commission as provided in Chapter 160A or 153A; nor any historic property owned by the State or assisted by the State.
(f) Selection of the optimum system or combination of systems to be incorporated into the design of the facility shall take into consideration the life-cycle cost analysis over the economic life of the facility.
(g) The energy-consumption analysis of the operation of energy-consuming systems in a facility shall include, but not be limited to:
(1) The comparison of two or more system alternatives;
(2) The simulation or engineering evaluation of each system over the entire range of operation of the facility for a year's operating period; and
(3) The engineering evaluation of the energy consumption of component equipment in each system considering the operation of such components at other than full or rated outputs."
Sec. 7. G.S. 143-64.14 is recodified as G.S. 143-64.16.
Sec. 7.1. G.S. 133-3 reads as rewritten:
"§ 133-3. Specifications to carry competitive items; substitution of materials.
All architects, engineers, designers, or draftsmen, when designing,
providing design services, or writing specifications specifications,
directly or indirectly, for materials to be used in any city, county or
State work, shall specify in their plans the required performance and design
characteristics of such materials. However, when it is impossible or
impractical to specify the required performance and design characteristics for
such materials, then the architect, engineer, designer or draftsman may use a
brand name specification so long as they cite at least three or
more examples of items of equal design or their equivalent design,
which would be acceptable upon such works. establish an acceptable
range for items of equal or equivalent design. The specifications shall
state clearly that the cited examples are used only to denote the quality
standard of product desired and that they do not restrict bidders to a specific
brand, make, manufacturer or specific name; that they are used only to set
forth and convey to bidders the general style, type, character and quality of
product desired; and that equivalent products will be acceptable. Where
it is impossible to specify performance and design characteristics for such
materials and impossible to cite three or more items due to the fact
that there are not that many items of similar or equivalent design in
competition, then as many items as are available shall be specified. cited.
On all city, county or State works, the maximum interchangeability and
compatibility of cited items shall be required. The brand of product used
on a city, county or State work shall not limit competitive bidding on future
works. If an architect, engineer, designer, draftsman or owner prefers a
particular brand of material, then such brand shall be bid as an alternate to
the base bid and in such case the base bid shall cite three or more examples of
items of equal or equivalent design, which would establish an acceptable range
for items of equal or equivalent design. Substitution of materials
materials, items, or equipment of equal or equivalent design shall
be submitted to the architect or engineer for approval or disapproval before
any such substitutions may be made. disapproval; such approval or
disapproval shall be made by the architect or engineer prior to the opening of
bids. The purpose of this statute is to mandate and encourage free and
open competition on public contracts."
Sec. 8. Sections 1 through 7 of this act are effective upon ratification and apply to all construction and renovation projects for State works that start the design process on or after that date. Section 7.1 of this act is effective upon ratification and applies to all construction and renovation projects for any city, county or State works that start the design process on or after that date.
In the General Assembly read three times and ratified this the 13th day of July, 1993.
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Dennis A. Wicker
President of the Senate
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Daniel Blue, Jr.
Speaker of the House of Representatives