As used in this part 20, unless the context otherwise requires:
"Energy cost-savings contract" means a utility cost-savings contract or a vehicle fleetoperational and fuel cost-savings contract.
(1.3) "Energy cost-savings measure" means a utility cost-savings measure or a vehicle fleet operational and fuel cost-savings measure.
(1.5) "Energy performance contract" means a contract for evaluations, recommendations, or implementation of one or more energy cost-savings measures designed to produce utility cost savings, operation and maintenance cost savings, or vehicle fleet operational and fuel cost savings, which contract:
Sets forth savings attributable to the calculated energy cost savings or operation andmaintenance cost savings for each year during the contract period;
Provides that the amount of actual savings for each year during the contract periodshall exceed annual contract payments, including maintenance costs, to be made during such year by the state agency contracting for the energy cost-savings measures; except that, for the purposes of this part 20 only, the term "annual contract payments" does not include moneys received by the state from rebates, gifts, grants, or donations specifically designated by the gifting, granting, or donating party for the design or implementation of an energy cost-savings measure or state moneys that have been specifically appropriated in a distinct line item, or, in the case of the department of transportation, otherwise set aside in the department's budget, for the design or implementation of an energy cost-savings measure that is wholly addressed within the scope of the energy cost-savings contract;
Requires the party entering into the energy performance contract with the state agency to provide a written guarantee that the sum of energy cost savings and operation and maintenance cost savings for each year during the first three years of the contract period shall not be less than the calculated savings for that year described in paragraph (a) of this subsection (1.5); and
Requires payments by a state agency to be made within twelve years after the date ofthe execution of the contract; except that the maximum term of the payments shall be less than the cost-weighted average useful life of energy cost-savings equipment for which the contract is made, not to exceed twenty-five years.
"Operation and maintenance cost savings" means a measurable decrease in operationand maintenance costs that is a direct result of the implementation of one or more utility costsavings measures or one or more vehicle fleet operational and fuel cost-savings measures. Such savings shall be calculated in comparison with an established baseline of operation and maintenance costs.
"Shared-savings contract" means a contract for one or more energy cost-savings measures that do not involve capital equipment projects, which contract:
Provides that all payments to be made by the state agency contracting for the energycost-savings measures shall be a stated percentage of calculated savings of energy costs attributable to such measures over a defined period of time and that such payments shall be made only to the extent that such savings occur; except that this paragraph (a) shall not apply to payments for maintenance and repairs and obligations on termination of the contract prior to its expiration;
Provides for an initial contract period of no longer than ten years; and(c) Requires no additional capital investment or contribution of funds.
"State agency" means a department or institution of this state, including institutionsof higher education.
"Utility cost savings" means:
A cost savings caused by a reduction in metered or measured physical quantities of abulk fuel or utility resulting from the implementation of one or more energy conservation measures when compared with an established baseline of usage; or
A decrease in utility costs as a result of changes in applicable utility rates or utilityservice suppliers. The savings shall be calculated in comparison with an established baseline of utility costs.
"Utility cost-savings contract" means an energy performance contract or a sharedsavings contract or any other agreement in which utility cost savings are used to pay for services or equipment.
"Utility cost-savings measure" means any installation, modification, or service that isdesigned to reduce energy consumption and related operating costs in buildings and other facilities and includes, but is not limited to, the following:
Insulation in walls, roofs, floors, and foundations and in heating and cooling distribution systems;
Heating, ventilating, or air conditioning and distribution system modifications or replacements in buildings or central plants;
Automatic energy control systems;
Replacement or modification of lighting fixtures;
Energy recovery systems;
Renewable energy and alternate energy systems;
Cogeneration systems that produce steam or forms of energy, such as heat or electricity, for use primarily within a building or complex of buildings;
Devices that reduce water consumption or sewer charges;
Changes in operation and maintenance practices;
Procurement of low-cost energy supplies of all types, including electricity, naturalgas, and other fuel sources, and water;
Indoor air quality improvements that conform to applicable building code requirements;
Daylighting systems;
Building operation programs that reduce utility and operating costs including, butnot limited to, computerized energy management and consumption tracking programs, staff and occupant training, and other similar activities;
Services to reduce utility costs by identifying utility errors and optimizing existingrate schedules under which service is provided; and
Any other location, orientation, or design choice related to, or installation, modification of installation, or remodeling of, building infrastructure improvements that produce utility or operational cost savings for their appointed functions in compliance with applicable state and local building codes.
"Vehicle fleet operational and fuel cost savings" means a measurable decrease in theoperation and maintenance costs of state vehicles that is associated with fuel or maintenance based on higher efficiency ratings or alternative fueling methods, including but not limited to savings from the reduction in maintenance requirements and a reduction in or the elimination of projected fuel purchase expenses as a direct result of investment in higher efficiency or alternative fuel vehicles or vehicle or charging infrastructure.
"Vehicle fleet operational and fuel cost-savings contract" means an energy performance contract or shared-savings contract or any other agreement in which vehicle fleet operational and fuel cost savings are used to pay for the cost of the vehicle or associated capital investments.
"Vehicle fleet operational and fuel cost-savings measure" means any installation,modification, or service that is designed to reduce energy consumption and related operating costs in vehicles and includes, but is not limited to, the following:
Vehicle purchase or lease costs either in full or in part;
Charging or fueling infrastructure to appropriately charge or fuel alternative fuel vehicles included in an energy cost-savings contract.
Source: L. 2001: Entire part added, p. 1088, § 1, effective August 8. L. 2010: (1)(b) and (7)(o) amended, (SB 10-207), ch. 410, p. 2027, § 2, effective June 10. L. 2013: (1), (2), IP(3), and (3)(a) amended and (1.3), (1.5), (8), (9), and (10) added, (SB 13-254), ch. 403, p. 2358, § 1, effective June 5.