Public Law 30-66 - An Act to add new subsections (14) and (15) to §8104 of Chapter 8; to add subsections (n) and (o) to §14104 of Chapter 14; and to amend §14104.1, and §14404 of Chapter 14, all of Title 12, Guam Code Annotated, relative to permitting the Guam Power Authority, and the Guam Waterworks Authority to enter into long term contracts

P.O. Box 2950 Hagatfia, Guam 96932 TEL: (671) 4 72-8931 • FAX: (671) 4 77-4826 • EMAIL: governor@mail.gov.gu Felix P. Camacho Governor Michael W. Cruz, M.D. Lieutenant Governor The Honorable Judith T. Won Pat, Ed.D. Speaker Mina' Trenta Na Liheslaturan Guahan 155 Hessler Street Hagatfia, Guam 96910 Dear Speaker Won Pat: Transmitted herewith is Bill No. 175-30(COR) "AN ACT TO ADD NEW SUBSECTIONS (14) AND (15) TO §8104 OF CHAPTER 8; TO ADD SUBSECTIONS (n) AND (o) TO §14104 OF CHAPTER 14; AND TO AMEND §14104.1, AND §14404 OF CHAPTER 14, ALL OF TITLE 12, GUAM CODE ANNOTATED, RELATIVE TO PERMITTING THE GUAM POWER AUTHORITY, AND THE GUAM WATERWORKS AUTHORITY TO ENTER INTO LONG TERM CONTRACTS" which I signed into law on November 27, 2009 as Public Law 30-66. FELIX P. CAMACHO I Maga 'lahen Guahan Governor of Guam Attachment: copy of Bill 1423 I MINA'TRENTA NA LIHESLATURAN GUAflAN 2009 (FIRST) Regular Session CERTIFICATION OF PASSAGE OF AN ACT TO I MAGA'LAHEN GUAffAN This is to certify that Substihtte Bill No. 175-30 (COR), 11 AN ACT TO ADD NEW SUBSECTIONS (14) AND (15) TO §8104 OF CHAPTER 8; TO ADD NEW SUBSECTIONS (n) AND (o) TO §14104 OF CHAPTER 14; AND TO AMEND §14104.1 AND §14404 OF CHAPTER 14, ALL OF TITLE 12, GUAM CODE ANNOTATED, RELATIVE TO PERMITTING THE GUAM POWER AUTHORITY AND THE GUAM WATERWORKS AUTHORITY TO ENTER INTO LONG TERM CONTRACTS," was on the 13th day of November, 2009, duly and regularly passed. Attested: Rory J Aespicio Acting Legislative Secretary This-Act was-received by I Maga'lahen Guahan-this )g-:: ·---- day of --~~--2009,-at L(":.. ~ o'clockL.M. Maga'lahi' s Office I Maga'lahen Guahan Date: ~ A.l,11 ;,,i Public Law No. 30-66 I MINA 'TRENTA NA LIHESLATURAN GUAHAN 2009 (FIRST) Regular Session Bill No. 175-30 (COR) As substituted by the Committee on Utilities, Transportation, Public Works, and Veterans Affairs, and amended on the Floor. Introduced by: T. C. Ada F. B. Aguon, Jr. F. F. Blas, Jr. T. R. Mufia Barnes E. J.B. Calvo B. J.F. Cruz J. V. Espaldon Judith P. Guthertz, DPA Adolpho B. Palacios, Sr. v. c. pangelinan M. J. Rector R. J. Respicio Ray Tenorio Telo Taitague Judith T. Won Pat, Ed.D. AN ACT TO ADD NEW SUBSECTIONS (14) AND (15) TO §8104 OF CHAPTER 8; TO ADD NEW SUBSECTIONS (n) AND (o) TO §14104 OF CHAPTER 14; AND TO AMEND §14104.1 AND §14404 OF CHAPTER 14, ALL OF TITLE 12, GUAM CODE ANNOTATED, RELATIVE TO PERMITTING THE GUAM POWER AUTHORITY AND THE GUAM WATERWORKS AUTHORITY TO ENTER INTO LONG TERM CONTRACTS. 1 BE IT ENACTED BY THE PEOPLE OF GUAM: 2 Section 1. Legislative Findings and Intent. I Liheslaturan Guahan finds 3 that it has previously authorized the Guam Power Authority to enter into 1 1 performance management contracts, contracts with independent power producers, 2 and other private-public partnerships that enabled private entities to build, 3 rehabilitate, operate, and manage various parts of the island-wide power system to 4 achieve the quality level of services demanded by GPA's rate payers. Such 5 contracts have proven to be an invaluable tool which enabled the Guam Power 6 Authority to end load shedding, reducing the expensive use of fast track generators 7 to save ratepayers over One Hundred Ten Million Dollars ($110,000,000) in 8 avoided fuel costs since 2003. 9 I Liheslaturan Guahan finds that the island-wide power system and Guam's 10 drinking and wastewater systems face new challenges in the form of the impending 11 buildup of U.S. military forces on Guam and the ever-rising cost of fossil fuels 12 used to power Guam's infrastructure. 13 I Liheslaturan Guahan finds that an effective tool to enable the GP A and 14 GW A (Public Utilities) to expand the infrastructure needed, and to operate and 15 maintain their respective systems, would be to authorize the use of public-private 16 partnerships between private entities and the Public Utilities. I Liheslaturan 17 Guahan finds that allowing the Public Utilities to enter into appropriate long-term 18 contracts has proven to serve ratepayers well through lower costs, effective 19 operations and management, and operations reliability. 20 Section 2. A new subsection (14) of §8104 of Article 1, Chapter 8 of Title 21 12, Guam Code Annotated, is hereby added to read: 22 "( 14) The Guam Power Authority may enter into long term contracts 23 for a period up to and not exceeding thirty (30) years for renewable energy 24 contracts, purchased power agreements, refurbish-operate-maintain 25 contracts, and build-operate-transfer contracts that cost Thirty Million 26 Dollars ($30,000,000) or more. Nothing herein shall repeal, limit, or 2 1 otherwise prohibit any law or regulation authorizing the Authority to enter 2 into any contract for a longer period." 3 Section 3. A new subsection (15) of §8104 of Article 1, Chapter 8 of Title 4 12, Guam Code Annotated, is hereby added to read: 5 "( 15) The Guam Power Authority may enter into performance 6 management contracts (PMC) to manage any part of the island wide power 7 system with a base period up to five (5) years and no more than two (2) five 8 ( 5) year renewal option periods, not exceeding a total of fifteen ( 15) years, 9 including the base period and all option periods. Nothing herein shall repeal, 10 limit, or otherwise prohibit any law or regulation authorizing the Authority 11 to enter into any contract for a longer period." 12 Section 4. A new subsection (n) of § 14104 of Article 1, Chapter 14 of 13 Title 12, Guam Code Annotated, is hereby added to read: 14 "(n) The Guam Waterworks Authority may enter into long term 15 contracts for a period up to and not exceeding thirty (30) years for refurbish 16 operate-maintain contracts, and build-operate-transfer contracts that cost 17 Thirty Million Dollars ($30,000,000) or more related to the Guam 18 Waterworks Authority's wastewater treatment facilities and the construction 19 of water wells. Nothing herein shall repeal, limit, or otherwise prohibit any 20 law or regulation authorizing the Authority to enter into any contract for a 21 longer period." 22 Section 5. A new subsection ( o) of § 14104 of Article 1, Chapter 14 of 23 Title 12, Guam Code Annotated, is hereby added to read: 24 "(o) The Guam Waterworks Authority may enter into performance 25 management contracts to manage any part of Guam's Drinking Water or 26 Wastewater Systems with a base period up to five (5) years and no more 27 than two five (5) year option periods, not exceeding a total of fifteen (15) 3 1 years, including the base period and all option periods. Nothing herein shall 2 repeal, limit, or otherwise prohibit any law or regulation authorizing the 3 Authority to enter into any contract for a longer period. 4 The Office of the Attorney General shall hereby oversee the process 5 for bidding and negotiation of any performance management contract to be 6 entered into under the provisions of this Section and shall certify, in writing, 7 that this process was conducted in compliance with any applicable laws, 8 rules and regulations prior to approval." 9 Section 6. § 14104.1 of Article 1, Chapter 14 of Title 12, Guam Code 10 Annotated, is hereby amended to read: 11 "§14104.1. Contractual Restrictions. Any contract by the 12 Authority to contract maintenance services relative to sewage pumps, 13 booster pumps, and all pumps and other facilities directly associated with 14 water wells shall be subject to the following provisions: 15 (a) any procurement of service or goods, shall be entirely 16 subject to the procurement laws of Guam, and all related rules and 1 7 regulations; 18 (b) all successful bidders must have a minimum of three (3) 19 years of demonstrated expertise m the maintenance of 20 electromechanical pump devices; and 21 ( c) a contract for service awarded must include provisions for 22 periodic and timely inspections of all facilities whose maintenance is 23 contracted, with provisions for the revocation of contracts, without 24 penalty to the Authority, for any breach of contract or failure to 25 provide adequate service, as contracted." 26 Section 7. § 14404 of Chapter 14 of Article 1, Title 12, Guam Code 27 Annotated, is hereby amended to read: 4 1 "§14404. Contract Performance Reviews. All contracts awarded 2 subject to the provisions of this Act must contain performance reviews at 3 least annually, and provisions for contract termination or penalty based upon 4 such review." 5 Section 8. No contract shall be awarded by GWA and/or GP A under the 6 authorization granted herein containing terms authorized herein in any solicitation 7 issued prior to the passage of this Act. 8 Section 9. Severability. If any provisions of this Act or its application to 9 any person or circumstance is found to be invalid or contrary to law, such 10 invalidity shall not affect other provisions or applications of this Act which can be 11 given effect without the invalid provisions or applications, and to this end the 12 provisions of this Act are severable. 5