§196-21  Financing mechanisms.  (a) 
Agencies shall maximize their use of available alternative financing
contracting mechanisms, including energy-savings contracts, when life-cycle
cost-effective, to reduce energy use and cost in their facilities and operations. 
Energy-savings contracts shall include:



(1)  Energy performance contracts;



(2)  Municipal lease and purchase financing; and



(3)  Utility energy-efficiency service contracts.



Energy-savings contracts shall provide significant
opportunities for making state facilities more energy efficient at no net cost
to taxpayers.



(b)  Agencies that perform energy efficiency
and renewable energy system retrofitting may continue to receive budget
appropriations for energy expenditures at an amount that will not fall below
the pre-retrofitting energy budget but will rise in proportion to any increase
in the agency's overall budget for the duration of the performance contract or
project payment term.  A portion of the moneys saved through efficiency and
renewable energy system retrofitting shall be set aside to pay for any costs
directly associated with administering energy efficiency and renewable energy
system retrofitting programs incurred by the agency.



(c)  Notwithstanding any law to the contrary
relating to the award of public contracts, any agency desiring to enter into an
energy performance contract shall do so in accordance with the following
provisions:



(1)  The agency shall issue a public request for
proposals, advertised in the same manner as provided in chapter 103D,
concerning the provision of energy-efficiency services or the design,
installation, operation, and maintenance of energy equipment.  The request for
proposals shall contain terms and conditions relating to submission of
proposals, evaluation, and selection of proposals, financial terms, legal
responsibilities, and other matters as may be required by law and as the agency
determines appropriate;



(2)  Upon receiving responses to the request for
proposals, the agency shall select the most qualified proposal or proposals and
may base its determination on the basis of the experience and qualifications of
the proposers, the technical approach, the financial arrangements, the overall
benefits to the agency, or other factors determined by the agency to be
relevant and appropriate;



(3)  The agency thereafter may negotiate and enter
into an energy performance contract with the person or company whose proposal
is selected as the most qualified based on the criteria established by the
agency;



(4)  The term of any energy performance contract
entered into pursuant to this section shall not exceed twenty years;



(5)  Any energy performance contract may provide that
the agency ultimately shall receive title to the energy system being financed
under the contract; and



(6)  Any energy performance contract shall provide
that total payments shall not exceed total savings. [L 2002, c 77, pt of §9; am
L 2006, c 96, §7; am L 2007, c 157, §3]