34-455. Performance contracting;
definitions
A. The department of administration shall develop and implement a program to enter
into performance contracts solely for the purpose of achieving energy savings as measured
in dollars and benefits ancillary to that purpose. Each contract may be for a period of
not more than the expected life of the energy savings measures implemented or twenty-five
years, whichever is shorter. The contract shall provide that the energy and operational
savings generated cover all costs, after accounting for any financial incentives or
assistance provided by utilities, associated with implementation of energy conservation
measures to include audits, design equipment, purchase and installation, metering,
interest on monies borrowed and training, and the contract shall include contractor
profit. The contractor shall recover an amount not to exceed the summation of these
costs and the agreed upon profit. Energy dollar savings realized as a result of a
performance contract under this section shall be shared at a negotiated rate between the
state and the contractor, until such time as the contractor has recovered the amount
specified in the contract, at which time all savings shall accrue to the state. Interest
rates charged on each contract shall be mutually agreed upon by the department of
administration and the contractor. Contracts shall contain contingency provisions agreed
upon by the department and the contractor for cases where measured energy dollar savings
do not meet predicted energy dollar savings.
B. For the purposes of this section:
1. "Combined heat and power" means any system that simultaneously or sequentially
generates both electric or mechanical energy and useful thermal energy using the same
unit of fuel.
2. "Energy dollar savings" means a reduction in the cost of energy, from a base
energy cost established through a methodology set forth in the contract, utilized in an
existing or new state owned or leased building as a result of either:
(a) The lease or purchase of operating equipment by the state or contractor,
improvements made, altered operation and maintenance, technical services provided or
renewable energy sources utilized.
(b) The increased efficient use of existing energy sources by cogeneration or
combined heat and power.
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