IC 36-1-12.5
Chapter 12.5. Guaranteed Savings Contracts; Energy Efficiency
Programs Used by School Corporations
IC 36-1-12.5-0.5 "Actual savings" defined
Sec. 0.5. As used in this chapter, "actual savings" includes
stipulated savings. As added by P.L.98-2002, SEC.1.
IC 36-1-12.5-0.6 "Billable revenues" defined; "billable revenue increases" defined;
"revenues" defined
Sec. 0.6. As used in this chapter, "billable revenues", "billable
revenue increases", and "revenues" include only revenues of a
municipal water or wastewater utility operated by a political
subdivision. As added by P.L.168-2006, SEC.3.
IC 36-1-12.5-0.7 "Causally connected work" defined
Sec. 0.7. As used in this chapter, "causally connected work"
means work that is required to properly implement a conservation
measure. As added by P.L.98-2002, SEC.2. Amended by P.L.168-2006, SEC.4.
IC 36-1-12.5-1 "Conservation measure" defined
Sec. 1. (a) As used in this chapter, "conservation measure":
(1) means:
(A) a facility alteration;
(B) an alteration of a structure (as defined in IC 36-1-10-2);
(C) a technology upgrade; or
(D) with respect to an installation described in subdivision
(2)(G) or (2)(H), an alteration of a structure or system;
designed to provide billable revenue increases or reduce energy
or water consumption costs, wastewater costs, or other
operating costs; and
(2) includes the following:
(A) Providing insulation of the facility or structure and
systems in the facility or structure.
(B) Installing or providing for window and door systems,
including:
(i) storm windows and storm doors;
(ii) caulking or weatherstripping;
(iii) multi-glazed windows and doors;
(iv) heat absorbing or heat reflective glazed and coated
windows and doors;
(v) additional glazing;
(vi) the reduction in glass area; and
(vii) other modifications that reduce energy consumption.
(C) Installing automatic energy control systems.
(D) Modifying or replacing heating, ventilating, or air
conditioning systems.
(E) Unless an increase in illumination is necessary to
conform to Indiana laws or rules or local ordinances,
modifying or replacing lighting fixtures to increase the
energy efficiency of the lighting system without increasing
the overall illumination of a facility or structure.
(F) Providing for other conservation measures that provide
billable revenue increases or reduce energy or water
consumption, reduce operating costs, or reduce wastewater
costs, including future:
(i) labor costs;
(ii) costs or revenues for contracted services; and
(iii) related capital expenditures.
(G) Installing equipment upgrades that improve accuracy of
billable revenue generating systems.
(H) Installing automated, electronic, or remotely controlled
systems or measures that reduce direct personnel costs.
(b) The term does not include an alteration of a water or
wastewater structure or system that increases the capacity of the
structure or system. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995, SEC.3;
P.L.98-2002, SEC.3; P.L.168-2006, SEC.5; P.L.71-2009, SEC.5;
P.L.99-2009, SEC.4.
IC 36-1-12.5-1.5 "Governing body" defined
Sec. 1.5. As used in this chapter, "governing body" means the
following:
(1) With respect to school corporations, the governing body (as
defined in IC 20-18-2-5).
(2) With respect to a public library, the library board (as defined
in IC 36-12-1-3).
(3) With respect to a library described in IC 36-12-7-8, the
trustees of the library.
(4) With respect to a political subdivision that operates a
municipal water or wastewater utility and in connection with
the installation of a conservation measure to a water or
wastewater structure or system under this chapter, the board or
officer that has the power to award contracts.
(5) With respect to other political subdivisions for any other
project or program under this chapter, the legislative body (as
defined in IC 36-1-2-9). As added by P.L.208-1995, SEC.4. Amended by P.L.227-1999,
SEC.12; P.L.1-2005, SEC.235; P.L.168-2006, SEC.6.
IC 36-1-12.5-2 "Guaranteed savings contract" defined
Sec. 2. As used in this chapter, "guaranteed savings contract"
refers to a contract entered into under this chapter, in which a
qualified provider enters into an agreement with the governing body
to:
(1) evaluate and recommend to the governing body conservation
measures; and
(2) provide for the implementation of at least one (1)
conservation measure. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995, SEC.5;
P.L.168-2006, SEC.7.
IC 36-1-12.5-2.5 "Industry engineering standards" defined
Sec. 2.5. As used in this chapter, "industry engineering standards"
includes the following:
(1) Lifecycle costing.
(2) The R. S. Means estimating method developed by the R. S.
Means Company.
(3) Historical data.
(4) Manufacturer's data.
(5) American Society of Heating, Refrigeration, and Air
Conditioning Engineers (ASHRAE) standards. As added by P.L.98-2002, SEC.4. Amended by P.L.1-2010, SEC.146.
IC 36-1-12.5-3 "Qualified provider" defined
Sec. 3. (a) As used in this chapter, "qualified provider" means the
following:
(1) Before July 1, 1999, the term means a person that satisfies
both of the following:
(A) The person is experienced in the design, implementation,
and installation of energy conservation measures.
(B) The person submits to the school corporation or political
subdivision a performance bond to ensure the qualified
provider's faithful performance of the qualified provider's
obligations over the term of the guaranteed energy savings
contract.
(2) After June 30, 1999, the term means a person that satisfies
all of the following:
(A) Subject to subdivision (3), the person is experienced in
the design, implementation, and installation of energy
conservation measures.
(B) The person is certified and meets the requirements of
IC 4-13.6-4. The person's response to the request for
proposals must include a copy of the person's certificate of
qualification issued under IC 4-13.6-4.
(C) Subject to subdivision (3), the person provides energy
conservation engineering services by a professional engineer
licensed under IC 25-31 who is under the person's direct
employment and supervision. The person's response to the
request for proposals must include the license number of
each professional engineer employed by the person to satisfy
the requirement of this clause.
(D) The person provides:
(i) monitoring for the facility performance guarantee; and
(ii) service personnel under the person's direct
employment and supervision;
for the duration of the contract's guarantee.
(E) The person performs at least twenty percent (20%) of the
work (measured in dollars of the total contract price) with its
own workforce.
(F) The person submits to the school corporation or political
subdivision a performance bond to ensure the qualified
provider's faithful performance of the qualified provider's
obligations over the term of:
(i) the guaranteed energy savings contract; or
(ii) the guaranteed savings contract.
(3) With respect to conservation measures for which a contract
is executed after June 30, 2006, the term includes a person that
satisfies the following:
(A) The person is experienced in the design, implementation,
and installation of conservation measures.
(B) The person provides engineering services with respect to
conservation measures by a professional engineer licensed
under IC 25-31 who is under the person's direct employment
and supervision. The person's response to the request for
proposals must include the license number of each
professional engineer employed by the person to satisfy the
requirement of this clause.
(b) For purposes of a guaranteed energy savings contract entered
into before July 1, 1999, a person who was a qualified provider under
subsection (a)(1) at the time the contract was entered into remains a
qualified provider for that contract after June 30, 1999. If the person
enters into:
(1) a guaranteed energy savings contract after June 30, 1999,
and before July 1, 2006, the person must satisfy the
requirements of subsection (a)(2); or
(2) a guaranteed savings contract after June 30, 2006, the
person must satisfy the requirements of subsection (a)(2) and
(a)(3);
to be considered a qualified provider. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995, SEC.6;
P.L.58-1999, SEC.10; P.L.168-2006, SEC.8.
IC 36-1-12.5-3.5 "Related capital expenditures" defined
Sec. 3.5. As used in this chapter, "related capital expenditures"
includes capital costs that:
(1) the governing body reasonably believes will be incurred
during the contract term;
(2) are part of or are causally connected to the conservation
measures being implemented; and
(3) are documented by industry engineering standards. As added by P.L.98-2002, SEC.5. Amended by P.L.168-2006, SEC.9.
IC 36-1-12.5-3.7 "Stipulated savings" defined
Sec. 3.7. As used in this chapter, "stipulated savings" are assumed
savings that are documented by industry engineering standards. As added by P.L.98-2002, SEC.6.
IC 36-1-12.5-4 "Utility efficiency program" defined
Sec. 4. As used in this chapter, "utility efficiency program" refers
to an energy, a water, or a wastewater efficiency program that:
(1) includes a conservation measure;
(2) is established by a public utility (as defined in IC 8-1-8.7-2);
and
(3) is undertaken pursuant to this chapter. As added by P.L.24-1993, SEC.6. Amended by P.L.168-2006,
SEC.10.
IC 36-1-12.5-5 Agreements to participate in programs or enter into contracts;
necessary findings, notice, and provisions
Sec. 5. (a) The governing body may enter into an agreement with
a public utility to participate in a utility efficiency program or enter
into a guaranteed savings contract with a qualified provider to
increase the political subdivision's billable revenues or reduce the
school corporation's or the political subdivision's energy or water
consumption, wastewater usage costs, or operating costs if, after
review of the report described in section 6 of this chapter, the
governing body finds:
(1) in the case of conservation measures other than those that
are part of a project related to the alteration of a water or
wastewater structure or system, that the amount the governing
body would spend on the conservation measures under the
contract and that are recommended in the report is not likely to
exceed the amount to be saved in energy consumption costs and
other operating costs over twenty (20) years from the date of
installation if the recommendations in the report were followed;
(2) in the case of conservation measures that are part of a
project related to the alteration of a water or wastewater
structure or system, that the amount the governing body would
spend on the conservation measures under the contract and that
are recommended in the report is not likely to exceed the
amount of increased billable revenues or the amount to be saved
in energy and water consumption costs, wastewater usage costs,
and other operating costs over twenty (20) years from the date
of installation if the recommendations in the report were
followed; and
(3) in the case of a guaranteed savings contract, the qualified
provider provides a written guarantee as described in subsection
(d)(3).
(b) Before entering into an agreement to participate in a utility
efficiency program or a guaranteed savings contract under this
section, the governing body must publish notice under subsection (c)
indicating:
(1) that the governing body is requesting public utilities or
qualified providers to propose conservation measures through:
(A) a utility efficiency program; or
(B) a guaranteed savings contract; and
(2) the date, the time, and the place where proposals must be
received.
(c) The notice required by subsection (b) must:
(1) be published in two (2) newspapers of general circulation in
the county where the school corporation or the political
subdivision is located;
(2) be published two (2) times with at least one (1) week
between publications and with the second publication made at
least thirty (30) days before the date by which proposals must
be received; and
(3) meet the requirements of IC 5-3-1-1.
(d) An agreement to participate in a utility efficiency program or
guaranteed savings contract under this section must provide that:
(1) in the case of conservation measures other than those that
are part of a project related to the alteration of a water or
wastewater structure or system, all payments, except obligations
upon the termination of the agreement or contract before the
agreement or contract expires, may be made to the public utility
or qualified provider (whichever applies) in installments, not to
exceed the lesser of twenty (20) years or the average life of the
conservation measures installed from the date of final
installation;
(2) in the case of conservation measures that are part of a
project related to the alteration of a water or wastewater
structure or system, all payments, except obligations upon the
termination of the agreement or contract before the agreement
or contract expires, may be made to the public utility or
qualified provider (whichever applies) in installments, not to
exceed the lesser of twenty (20) years or the average life of the
conservation measures installed from the date of final
installation;
(3) in the case of the guaranteed savings contract:
(A) the:
(i) savings in energy and water consumption costs,
wastewater usage costs, and other operating costs; and
(ii) increase in billable revenues;
due to the conservation measures are guaranteed to cover the
costs of the payments for the measures; and
(B) the qualified provider will reimburse the school
corporation or political subdivision for the difference
between the guaranteed savings and the actual savings; and
(4) payments are subject to annual appropriation by the fiscal
body of the school corporation or political subdivision and do
not constitute an indebtedness of the school corporation or
political subdivision within the meaning of a constitutional or
statutory debt limitation.
(e) An agreement or a contract under this chapter is subject to
IC 5-16-7. As added by P.L.24-1993, SEC.6. Amended by P.L.212-1995, SEC.2;
P.L.208-1995, SEC.7; P.L.168-2006, SEC.11; P.L.71-2009, SEC.6;
P.L.99-2009, SEC.5.
IC 36-1-12.5-5.3 Certification of subcontractor required
Sec. 5.3. (a) This section applies only to a guaranteed energy
savings contract or a guaranteed savings contract entered into after
June 30, 1999.
(b) A qualified provider may enter into a subcontract:
(1) with a value of more than one hundred fifty thousand dollars
($150,000); and
(2) for the performance of any part of a guaranteed energy
savings contract or guaranteed savings contract;
only if the subcontractor is certified under IC 4-13.6-4. As added by P.L.58-1999, SEC.11. Amended by P.L.168-2006,
SEC.12.
IC 36-1-12.5-5.5 Procedures for issuance of bonds by political subdivisions not
applicable
Sec. 5.5. IC 6-1.1-20 does not apply to an agreement to participate
in:
(1) a utility efficiency program; or
(2) a guaranteed savings contract;
entered into under this chapter. As added by P.L.212-1995, SEC.3. Amended by P.L.168-2006,
SEC.13.
IC 36-1-12.5-6 Report before installation or remodeling
Sec. 6. (a) Before the public utility or the qualified provider may
install equipment in, make modifications to, or remodel a building or
complex of buildings under a utility efficiency program or a
guaranteed savings contract, the public utility or the qualified
provider (whichever applies) must issue a report that includes
estimates for the following:
(1) All costs attributable to the work stipulated in the agreement
or the contract, including the costs of design, engineering,
installation, maintenance, repairs, or debt service.
(2) The amounts by which:
(A) energy or water consumption;
(B) wastewater costs; or
(C) operating costs;
will be reduced.
(3) The amounts by which billable revenues will be increased.
(b) The report must also contain a listing of contractors and
subcontractors to be used by the public utility or the qualified
provider with respect to the conservation measures. As added by P.L.24-1993, SEC.6. Amended by P.L.168-2006,
SEC.14.
IC 36-1-12.5-7 Installment payment contracts; maximum period
Sec. 7. (a) If the governing body enters into an installment
payment contract for the purchase and installation of conservation
measures under this chapter that are part of a project that is not
related to the alteration of a water or wastewater structure or system,
the balance of the payments must be paid in installments not to
exceed the lesser of twenty (20) years or the average life of the
conservation measure installed from the date of final installation.
Payments under an installment payment contract are subject to
annual appropriation by the fiscal body of the school corporation or
political subdivision and do not constitute an indebtedness of the
school corporation or political subdivision within the meaning of a
constitutional or statutory debt limitation.
(b) If the governing body enters into an installment payment
contract for the purchase and installation of conservation measures
under this chapter that are part of a project that is related to the
alteration of a water or wastewater structure or system, the balance
of the payments must be paid in installments not to exceed the lesser
of twenty (20) years or the average life of the conservation measure
installed from the date of final installation. Payments under an
installment payment contract are subject to annual appropriation by
the fiscal body of the school corporation or political subdivision and
do not constitute an indebtedness of the school corporation or
political subdivision within the meaning of a constitutional or
statutory debt limitation.
(c) With respect to a conservation measure described in section
1(a)(2)(G) or 1(a)(2)(H) of this chapter, annual revenues or savings
from a guaranteed savings contract may be less than annual payments
on the contract if during the length of the contract total savings and
increased billable revenues occur as provided for by the contract.
(d) The financing of a guaranteed savings contract may be
provided by:
(1) the vendor under the guaranteed savings contract; or
(2) a third party financial institution or company. As added by P.L.24-1993, SEC.6. Amended by P.L.212-1995, SEC.4;
P.L.208-1995, SEC.8; P.L.168-2006, SEC.15; P.L.71-2009, SEC.7;
P.L.99-2009, SEC.6. IC 36-1-12.5-8 Approval required
Sec. 8. Conservation measures installed under a utility efficiency
program or a guaranteed savings contract must be approved by the
following:
(1) The state department of health, division of fire and building
safety, and any other state agency designated by statute.
(2) An architect or engineer licensed under IC 25-4 or IC 25-31
if the conservation measures have a cost of more than fifty
thousand dollars ($50,000). As added by P.L.24-1993, SEC.6. Amended by P.L.1-2006, SEC.555;
P.L.168-2006, SEC.16.
IC 36-1-12.5-9 Payroll records required; inspection
Sec. 9. (a) The contractor and each subcontractor engaged in
installing conservation measures under a guaranteed savings contract
shall keep full and accurate records indicating the names,
classifications, and work performed by each worker employed by the
respective contractor and subcontractor in connection with the work,
together with an accurate record of the number of hours worked by
each worker and the actual wages paid.
(b) The payroll records required to be kept under this section must
be open to inspection by an authorized representative of the
governing body or the department of labor. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995, SEC.9;
P.L.168-2006, SEC.17.
IC 36-1-12.5-10 Submission of contract and annual report to lieutenant governor
Sec. 10. The governing body shall:
(1) provide to the lieutenant governor not more than sixty (60)
days after the date of execution of the guaranteed savings
contract:
(A) a copy of the executed guaranteed savings contract;
(B) the:
(i) energy or water consumption costs;
(ii) wastewater usage costs; and
(iii) billable revenues, if any;
before the date of execution of the guaranteed savings
contract; and
(C) the documentation using industry engineering standards
for:
(i) stipulated savings; and
(ii) related capital expenditures; and
(2) annually report to the lieutenant governor, in accordance
with procedures established by the lieutenant governor, the
savings resulting in the previous year from the guaranteed
savings contract or utility efficiency program. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995,
IC 36-1-12.5-11 Contracts that include stipulated savings
Sec. 11. (a) A guaranteed savings contract that includes stipulated
savings must specify the methodology used to calculate the savings
using industry engineering standards.
(b) Stipulated savings may be used for conservation measures
including the following:
(1) Heating.
(2) Air conditioning.
(3) Ventilating.
(4) Lighting.
(5) Roofing.
(6) Windows.
(7) Water conservation.
(8) Fuel and power improvements.
(9) Wastewater generation.
(10) Billable revenue increases.
(11) Any work that is causally connected to the conservation
measures listed in subdivisions (1) through (10).
(c) The guaranteed savings contract shall:
(1) describe stipulated savings for:
(A) conservation measures; and
(B) work causally connected to the conservation measures;
and
(2) document assumptions by industry engineering standards. As added by P.L.98-2002, SEC.8. Amended by P.L.168-2006,
SEC.19.
IC 36-1-12.5-12 Improvements not causally connected to conservation measure
Sec. 12. (a) An improvement that is not causally connected to a
conservation measure may be included in a guaranteed savings
contract if:
(1) the total value of the improvement does not exceed fifteen
percent (15%) of the total value of the guaranteed savings
contract; and
(2) either:
(A) the improvement is necessary to conform to a law, a
rule, or an ordinance; or
(B) an analysis within the guaranteed savings contract
demonstrates that:
(i) there is an economic advantage to the political
subdivision in implementing an improvement as part of the
guaranteed savings contract; and
(ii) the savings justification for the improvement is
documented by industry engineering standards.
(b) The information required under subsection (a) must be
reported to the lieutenant governor. As added by P.L.98-2002, SEC.9. Amended by P.L.1-2006, SEC.557;
P.L.168-2006, SEC.20.
IC 36-1-12.5
Chapter 12.5. Guaranteed Savings Contracts; Energy Efficiency
Programs Used by School Corporations
IC 36-1-12.5-0.5 "Actual savings" defined
Sec. 0.5. As used in this chapter, "actual savings" includes
stipulated savings. As added by P.L.98-2002, SEC.1.
IC 36-1-12.5-0.6 "Billable revenues" defined; "billable revenue increases" defined;
"revenues" defined
Sec. 0.6. As used in this chapter, "billable revenues", "billable
revenue increases", and "revenues" include only revenues of a
municipal water or wastewater utility operated by a political
subdivision. As added by P.L.168-2006, SEC.3.
IC 36-1-12.5-0.7 "Causally connected work" defined
Sec. 0.7. As used in this chapter, "causally connected work"
means work that is required to properly implement a conservation
measure. As added by P.L.98-2002, SEC.2. Amended by P.L.168-2006, SEC.4.
IC 36-1-12.5-1 "Conservation measure" defined
Sec. 1. (a) As used in this chapter, "conservation measure":
(1) means:
(A) a facility alteration;
(B) an alteration of a structure (as defined in IC 36-1-10-2);
(C) a technology upgrade; or
(D) with respect to an installation described in subdivision
(2)(G) or (2)(H), an alteration of a structure or system;
designed to provide billable revenue increases or reduce energy
or water consumption costs, wastewater costs, or other
operating costs; and
(2) includes the following:
(A) Providing insulation of the facility or structure and
systems in the facility or structure.
(B) Installing or providing for window and door systems,
including:
(i) storm windows and storm doors;
(ii) caulking or weatherstripping;
(iii) multi-glazed windows and doors;
(iv) heat absorbing or heat reflective glazed and coated
windows and doors;
(v) additional glazing;
(vi) the reduction in glass area; and
(vii) other modifications that reduce energy consumption.
(C) Installing automatic energy control systems.
(D) Modifying or replacing heating, ventilating, or air
conditioning systems.
(E) Unless an increase in illumination is necessary to
conform to Indiana laws or rules or local ordinances,
modifying or replacing lighting fixtures to increase the
energy efficiency of the lighting system without increasing
the overall illumination of a facility or structure.
(F) Providing for other conservation measures that provide
billable revenue increases or reduce energy or water
consumption, reduce operating costs, or reduce wastewater
costs, including future:
(i) labor costs;
(ii) costs or revenues for contracted services; and
(iii) related capital expenditures.
(G) Installing equipment upgrades that improve accuracy of
billable revenue generating systems.
(H) Installing automated, electronic, or remotely controlled
systems or measures that reduce direct personnel costs.
(b) The term does not include an alteration of a water or
wastewater structure or system that increases the capacity of the
structure or system. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995, SEC.3;
P.L.98-2002, SEC.3; P.L.168-2006, SEC.5; P.L.71-2009, SEC.5;
P.L.99-2009, SEC.4.
IC 36-1-12.5-1.5 "Governing body" defined
Sec. 1.5. As used in this chapter, "governing body" means the
following:
(1) With respect to school corporations, the governing body (as
defined in IC 20-18-2-5).
(2) With respect to a public library, the library board (as defined
in IC 36-12-1-3).
(3) With respect to a library described in IC 36-12-7-8, the
trustees of the library.
(4) With respect to a political subdivision that operates a
municipal water or wastewater utility and in connection with
the installation of a conservation measure to a water or
wastewater structure or system under this chapter, the board or
officer that has the power to award contracts.
(5) With respect to other political subdivisions for any other
project or program under this chapter, the legislative body (as
defined in IC 36-1-2-9). As added by P.L.208-1995, SEC.4. Amended by P.L.227-1999,
SEC.12; P.L.1-2005, SEC.235; P.L.168-2006, SEC.6.
IC 36-1-12.5-2 "Guaranteed savings contract" defined
Sec. 2. As used in this chapter, "guaranteed savings contract"
refers to a contract entered into under this chapter, in which a
qualified provider enters into an agreement with the governing body
to:
(1) evaluate and recommend to the governing body conservation
measures; and
(2) provide for the implementation of at least one (1)
conservation measure. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995, SEC.5;
P.L.168-2006, SEC.7.
IC 36-1-12.5-2.5 "Industry engineering standards" defined
Sec. 2.5. As used in this chapter, "industry engineering standards"
includes the following:
(1) Lifecycle costing.
(2) The R. S. Means estimating method developed by the R. S.
Means Company.
(3) Historical data.
(4) Manufacturer's data.
(5) American Society of Heating, Refrigeration, and Air
Conditioning Engineers (ASHRAE) standards. As added by P.L.98-2002, SEC.4. Amended by P.L.1-2010, SEC.146.
IC 36-1-12.5-3 "Qualified provider" defined
Sec. 3. (a) As used in this chapter, "qualified provider" means the
following:
(1) Before July 1, 1999, the term means a person that satisfies
both of the following:
(A) The person is experienced in the design, implementation,
and installation of energy conservation measures.
(B) The person submits to the school corporation or political
subdivision a performance bond to ensure the qualified
provider's faithful performance of the qualified provider's
obligations over the term of the guaranteed energy savings
contract.
(2) After June 30, 1999, the term means a person that satisfies
all of the following:
(A) Subject to subdivision (3), the person is experienced in
the design, implementation, and installation of energy
conservation measures.
(B) The person is certified and meets the requirements of
IC 4-13.6-4. The person's response to the request for
proposals must include a copy of the person's certificate of
qualification issued under IC 4-13.6-4.
(C) Subject to subdivision (3), the person provides energy
conservation engineering services by a professional engineer
licensed under IC 25-31 who is under the person's direct
employment and supervision. The person's response to the
request for proposals must include the license number of
each professional engineer employed by the person to satisfy
the requirement of this clause.
(D) The person provides:
(i) monitoring for the facility performance guarantee; and
(ii) service personnel under the person's direct
employment and supervision;
for the duration of the contract's guarantee.
(E) The person performs at least twenty percent (20%) of the
work (measured in dollars of the total contract price) with its
own workforce.
(F) The person submits to the school corporation or political
subdivision a performance bond to ensure the qualified
provider's faithful performance of the qualified provider's
obligations over the term of:
(i) the guaranteed energy savings contract; or
(ii) the guaranteed savings contract.
(3) With respect to conservation measures for which a contract
is executed after June 30, 2006, the term includes a person that
satisfies the following:
(A) The person is experienced in the design, implementation,
and installation of conservation measures.
(B) The person provides engineering services with respect to
conservation measures by a professional engineer licensed
under IC 25-31 who is under the person's direct employment
and supervision. The person's response to the request for
proposals must include the license number of each
professional engineer employed by the person to satisfy the
requirement of this clause.
(b) For purposes of a guaranteed energy savings contract entered
into before July 1, 1999, a person who was a qualified provider under
subsection (a)(1) at the time the contract was entered into remains a
qualified provider for that contract after June 30, 1999. If the person
enters into:
(1) a guaranteed energy savings contract after June 30, 1999,
and before July 1, 2006, the person must satisfy the
requirements of subsection (a)(2); or
(2) a guaranteed savings contract after June 30, 2006, the
person must satisfy the requirements of subsection (a)(2) and
(a)(3);
to be considered a qualified provider. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995, SEC.6;
P.L.58-1999, SEC.10; P.L.168-2006, SEC.8.
IC 36-1-12.5-3.5 "Related capital expenditures" defined
Sec. 3.5. As used in this chapter, "related capital expenditures"
includes capital costs that:
(1) the governing body reasonably believes will be incurred
during the contract term;
(2) are part of or are causally connected to the conservation
measures being implemented; and
(3) are documented by industry engineering standards. As added by P.L.98-2002, SEC.5. Amended by P.L.168-2006, SEC.9.
IC 36-1-12.5-3.7 "Stipulated savings" defined
Sec. 3.7. As used in this chapter, "stipulated savings" are assumed
savings that are documented by industry engineering standards. As added by P.L.98-2002, SEC.6.
IC 36-1-12.5-4 "Utility efficiency program" defined
Sec. 4. As used in this chapter, "utility efficiency program" refers
to an energy, a water, or a wastewater efficiency program that:
(1) includes a conservation measure;
(2) is established by a public utility (as defined in IC 8-1-8.7-2);
and
(3) is undertaken pursuant to this chapter. As added by P.L.24-1993, SEC.6. Amended by P.L.168-2006,
SEC.10.
IC 36-1-12.5-5 Agreements to participate in programs or enter into contracts;
necessary findings, notice, and provisions
Sec. 5. (a) The governing body may enter into an agreement with
a public utility to participate in a utility efficiency program or enter
into a guaranteed savings contract with a qualified provider to
increase the political subdivision's billable revenues or reduce the
school corporation's or the political subdivision's energy or water
consumption, wastewater usage costs, or operating costs if, after
review of the report described in section 6 of this chapter, the
governing body finds:
(1) in the case of conservation measures other than those that
are part of a project related to the alteration of a water or
wastewater structure or system, that the amount the governing
body would spend on the conservation measures under the
contract and that are recommended in the report is not likely to
exceed the amount to be saved in energy consumption costs and
other operating costs over twenty (20) years from the date of
installation if the recommendations in the report were followed;
(2) in the case of conservation measures that are part of a
project related to the alteration of a water or wastewater
structure or system, that the amount the governing body would
spend on the conservation measures under the contract and that
are recommended in the report is not likely to exceed the
amount of increased billable revenues or the amount to be saved
in energy and water consumption costs, wastewater usage costs,
and other operating costs over twenty (20) years from the date
of installation if the recommendations in the report were
followed; and
(3) in the case of a guaranteed savings contract, the qualified
provider provides a written guarantee as described in subsection
(d)(3).
(b) Before entering into an agreement to participate in a utility
efficiency program or a guaranteed savings contract under this
section, the governing body must publish notice under subsection (c)
indicating:
(1) that the governing body is requesting public utilities or
qualified providers to propose conservation measures through:
(A) a utility efficiency program; or
(B) a guaranteed savings contract; and
(2) the date, the time, and the place where proposals must be
received.
(c) The notice required by subsection (b) must:
(1) be published in two (2) newspapers of general circulation in
the county where the school corporation or the political
subdivision is located;
(2) be published two (2) times with at least one (1) week
between publications and with the second publication made at
least thirty (30) days before the date by which proposals must
be received; and
(3) meet the requirements of IC 5-3-1-1.
(d) An agreement to participate in a utility efficiency program or
guaranteed savings contract under this section must provide that:
(1) in the case of conservation measures other than those that
are part of a project related to the alteration of a water or
wastewater structure or system, all payments, except obligations
upon the termination of the agreement or contract before the
agreement or contract expires, may be made to the public utility
or qualified provider (whichever applies) in installments, not to
exceed the lesser of twenty (20) years or the average life of the
conservation measures installed from the date of final
installation;
(2) in the case of conservation measures that are part of a
project related to the alteration of a water or wastewater
structure or system, all payments, except obligations upon the
termination of the agreement or contract before the agreement
or contract expires, may be made to the public utility or
qualified provider (whichever applies) in installments, not to
exceed the lesser of twenty (20) years or the average life of the
conservation measures installed from the date of final
installation;
(3) in the case of the guaranteed savings contract:
(A) the:
(i) savings in energy and water consumption costs,
wastewater usage costs, and other operating costs; and
(ii) increase in billable revenues;
due to the conservation measures are guaranteed to cover the
costs of the payments for the measures; and
(B) the qualified provider will reimburse the school
corporation or political subdivision for the difference
between the guaranteed savings and the actual savings; and
(4) payments are subject to annual appropriation by the fiscal
body of the school corporation or political subdivision and do
not constitute an indebtedness of the school corporation or
political subdivision within the meaning of a constitutional or
statutory debt limitation.
(e) An agreement or a contract under this chapter is subject to
IC 5-16-7. As added by P.L.24-1993, SEC.6. Amended by P.L.212-1995, SEC.2;
P.L.208-1995, SEC.7; P.L.168-2006, SEC.11; P.L.71-2009, SEC.6;
P.L.99-2009, SEC.5.
IC 36-1-12.5-5.3 Certification of subcontractor required
Sec. 5.3. (a) This section applies only to a guaranteed energy
savings contract or a guaranteed savings contract entered into after
June 30, 1999.
(b) A qualified provider may enter into a subcontract:
(1) with a value of more than one hundred fifty thousand dollars
($150,000); and
(2) for the performance of any part of a guaranteed energy
savings contract or guaranteed savings contract;
only if the subcontractor is certified under IC 4-13.6-4. As added by P.L.58-1999, SEC.11. Amended by P.L.168-2006,
SEC.12.
IC 36-1-12.5-5.5 Procedures for issuance of bonds by political subdivisions not
applicable
Sec. 5.5. IC 6-1.1-20 does not apply to an agreement to participate
in:
(1) a utility efficiency program; or
(2) a guaranteed savings contract;
entered into under this chapter. As added by P.L.212-1995, SEC.3. Amended by P.L.168-2006,
SEC.13.
IC 36-1-12.5-6 Report before installation or remodeling
Sec. 6. (a) Before the public utility or the qualified provider may
install equipment in, make modifications to, or remodel a building or
complex of buildings under a utility efficiency program or a
guaranteed savings contract, the public utility or the qualified
provider (whichever applies) must issue a report that includes
estimates for the following:
(1) All costs attributable to the work stipulated in the agreement
or the contract, including the costs of design, engineering,
installation, maintenance, repairs, or debt service.
(2) The amounts by which:
(A) energy or water consumption;
(B) wastewater costs; or
(C) operating costs;
will be reduced.
(3) The amounts by which billable revenues will be increased.
(b) The report must also contain a listing of contractors and
subcontractors to be used by the public utility or the qualified
provider with respect to the conservation measures. As added by P.L.24-1993, SEC.6. Amended by P.L.168-2006,
SEC.14.
IC 36-1-12.5-7 Installment payment contracts; maximum period
Sec. 7. (a) If the governing body enters into an installment
payment contract for the purchase and installation of conservation
measures under this chapter that are part of a project that is not
related to the alteration of a water or wastewater structure or system,
the balance of the payments must be paid in installments not to
exceed the lesser of twenty (20) years or the average life of the
conservation measure installed from the date of final installation.
Payments under an installment payment contract are subject to
annual appropriation by the fiscal body of the school corporation or
political subdivision and do not constitute an indebtedness of the
school corporation or political subdivision within the meaning of a
constitutional or statutory debt limitation.
(b) If the governing body enters into an installment payment
contract for the purchase and installation of conservation measures
under this chapter that are part of a project that is related to the
alteration of a water or wastewater structure or system, the balance
of the payments must be paid in installments not to exceed the lesser
of twenty (20) years or the average life of the conservation measure
installed from the date of final installation. Payments under an
installment payment contract are subject to annual appropriation by
the fiscal body of the school corporation or political subdivision and
do not constitute an indebtedness of the school corporation or
political subdivision within the meaning of a constitutional or
statutory debt limitation.
(c) With respect to a conservation measure described in section
1(a)(2)(G) or 1(a)(2)(H) of this chapter, annual revenues or savings
from a guaranteed savings contract may be less than annual payments
on the contract if during the length of the contract total savings and
increased billable revenues occur as provided for by the contract.
(d) The financing of a guaranteed savings contract may be
provided by:
(1) the vendor under the guaranteed savings contract; or
(2) a third party financial institution or company. As added by P.L.24-1993, SEC.6. Amended by P.L.212-1995, SEC.4;
P.L.208-1995, SEC.8; P.L.168-2006, SEC.15; P.L.71-2009, SEC.7;
P.L.99-2009, SEC.6. IC 36-1-12.5-8 Approval required
Sec. 8. Conservation measures installed under a utility efficiency
program or a guaranteed savings contract must be approved by the
following:
(1) The state department of health, division of fire and building
safety, and any other state agency designated by statute.
(2) An architect or engineer licensed under IC 25-4 or IC 25-31
if the conservation measures have a cost of more than fifty
thousand dollars ($50,000). As added by P.L.24-1993, SEC.6. Amended by P.L.1-2006, SEC.555;
P.L.168-2006, SEC.16.
IC 36-1-12.5-9 Payroll records required; inspection
Sec. 9. (a) The contractor and each subcontractor engaged in
installing conservation measures under a guaranteed savings contract
shall keep full and accurate records indicating the names,
classifications, and work performed by each worker employed by the
respective contractor and subcontractor in connection with the work,
together with an accurate record of the number of hours worked by
each worker and the actual wages paid.
(b) The payroll records required to be kept under this section must
be open to inspection by an authorized representative of the
governing body or the department of labor. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995, SEC.9;
P.L.168-2006, SEC.17.
IC 36-1-12.5-10 Submission of contract and annual report to lieutenant governor
Sec. 10. The governing body shall:
(1) provide to the lieutenant governor not more than sixty (60)
days after the date of execution of the guaranteed savings
contract:
(A) a copy of the executed guaranteed savings contract;
(B) the:
(i) energy or water consumption costs;
(ii) wastewater usage costs; and
(iii) billable revenues, if any;
before the date of execution of the guaranteed savings
contract; and
(C) the documentation using industry engineering standards
for:
(i) stipulated savings; and
(ii) related capital expenditures; and
(2) annually report to the lieutenant governor, in accordance
with procedures established by the lieutenant governor, the
savings resulting in the previous year from the guaranteed
savings contract or utility efficiency program. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995,
IC 36-1-12.5-11 Contracts that include stipulated savings
Sec. 11. (a) A guaranteed savings contract that includes stipulated
savings must specify the methodology used to calculate the savings
using industry engineering standards.
(b) Stipulated savings may be used for conservation measures
including the following:
(1) Heating.
(2) Air conditioning.
(3) Ventilating.
(4) Lighting.
(5) Roofing.
(6) Windows.
(7) Water conservation.
(8) Fuel and power improvements.
(9) Wastewater generation.
(10) Billable revenue increases.
(11) Any work that is causally connected to the conservation
measures listed in subdivisions (1) through (10).
(c) The guaranteed savings contract shall:
(1) describe stipulated savings for:
(A) conservation measures; and
(B) work causally connected to the conservation measures;
and
(2) document assumptions by industry engineering standards. As added by P.L.98-2002, SEC.8. Amended by P.L.168-2006,
SEC.19.
IC 36-1-12.5-12 Improvements not causally connected to conservation measure
Sec. 12. (a) An improvement that is not causally connected to a
conservation measure may be included in a guaranteed savings
contract if:
(1) the total value of the improvement does not exceed fifteen
percent (15%) of the total value of the guaranteed savings
contract; and
(2) either:
(A) the improvement is necessary to conform to a law, a
rule, or an ordinance; or
(B) an analysis within the guaranteed savings contract
demonstrates that:
(i) there is an economic advantage to the political
subdivision in implementing an improvement as part of the
guaranteed savings contract; and
(ii) the savings justification for the improvement is
documented by industry engineering standards.
(b) The information required under subsection (a) must be
reported to the lieutenant governor. As added by P.L.98-2002, SEC.9. Amended by P.L.1-2006, SEC.557;
P.L.168-2006, SEC.20.
IC 36-1-12.5
Chapter 12.5. Guaranteed Savings Contracts; Energy Efficiency
Programs Used by School Corporations
IC 36-1-12.5-0.5 "Actual savings" defined
Sec. 0.5. As used in this chapter, "actual savings" includes
stipulated savings. As added by P.L.98-2002, SEC.1.
IC 36-1-12.5-0.6 "Billable revenues" defined; "billable revenue increases" defined;
"revenues" defined
Sec. 0.6. As used in this chapter, "billable revenues", "billable
revenue increases", and "revenues" include only revenues of a
municipal water or wastewater utility operated by a political
subdivision. As added by P.L.168-2006, SEC.3.
IC 36-1-12.5-0.7 "Causally connected work" defined
Sec. 0.7. As used in this chapter, "causally connected work"
means work that is required to properly implement a conservation
measure. As added by P.L.98-2002, SEC.2. Amended by P.L.168-2006, SEC.4.
IC 36-1-12.5-1 "Conservation measure" defined
Sec. 1. (a) As used in this chapter, "conservation measure":
(1) means:
(A) a facility alteration;
(B) an alteration of a structure (as defined in IC 36-1-10-2);
(C) a technology upgrade; or
(D) with respect to an installation described in subdivision
(2)(G) or (2)(H), an alteration of a structure or system;
designed to provide billable revenue increases or reduce energy
or water consumption costs, wastewater costs, or other
operating costs; and
(2) includes the following:
(A) Providing insulation of the facility or structure and
systems in the facility or structure.
(B) Installing or providing for window and door systems,
including:
(i) storm windows and storm doors;
(ii) caulking or weatherstripping;
(iii) multi-glazed windows and doors;
(iv) heat absorbing or heat reflective glazed and coated
windows and doors;
(v) additional glazing;
(vi) the reduction in glass area; and
(vii) other modifications that reduce energy consumption.
(C) Installing automatic energy control systems.
(D) Modifying or replacing heating, ventilating, or air
conditioning systems.
(E) Unless an increase in illumination is necessary to
conform to Indiana laws or rules or local ordinances,
modifying or replacing lighting fixtures to increase the
energy efficiency of the lighting system without increasing
the overall illumination of a facility or structure.
(F) Providing for other conservation measures that provide
billable revenue increases or reduce energy or water
consumption, reduce operating costs, or reduce wastewater
costs, including future:
(i) labor costs;
(ii) costs or revenues for contracted services; and
(iii) related capital expenditures.
(G) Installing equipment upgrades that improve accuracy of
billable revenue generating systems.
(H) Installing automated, electronic, or remotely controlled
systems or measures that reduce direct personnel costs.
(b) The term does not include an alteration of a water or
wastewater structure or system that increases the capacity of the
structure or system. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995, SEC.3;
P.L.98-2002, SEC.3; P.L.168-2006, SEC.5; P.L.71-2009, SEC.5;
P.L.99-2009, SEC.4.
IC 36-1-12.5-1.5 "Governing body" defined
Sec. 1.5. As used in this chapter, "governing body" means the
following:
(1) With respect to school corporations, the governing body (as
defined in IC 20-18-2-5).
(2) With respect to a public library, the library board (as defined
in IC 36-12-1-3).
(3) With respect to a library described in IC 36-12-7-8, the
trustees of the library.
(4) With respect to a political subdivision that operates a
municipal water or wastewater utility and in connection with
the installation of a conservation measure to a water or
wastewater structure or system under this chapter, the board or
officer that has the power to award contracts.
(5) With respect to other political subdivisions for any other
project or program under this chapter, the legislative body (as
defined in IC 36-1-2-9). As added by P.L.208-1995, SEC.4. Amended by P.L.227-1999,
SEC.12; P.L.1-2005, SEC.235; P.L.168-2006, SEC.6.
IC 36-1-12.5-2 "Guaranteed savings contract" defined
Sec. 2. As used in this chapter, "guaranteed savings contract"
refers to a contract entered into under this chapter, in which a
qualified provider enters into an agreement with the governing body
to:
(1) evaluate and recommend to the governing body conservation
measures; and
(2) provide for the implementation of at least one (1)
conservation measure. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995, SEC.5;
P.L.168-2006, SEC.7.
IC 36-1-12.5-2.5 "Industry engineering standards" defined
Sec. 2.5. As used in this chapter, "industry engineering standards"
includes the following:
(1) Lifecycle costing.
(2) The R. S. Means estimating method developed by the R. S.
Means Company.
(3) Historical data.
(4) Manufacturer's data.
(5) American Society of Heating, Refrigeration, and Air
Conditioning Engineers (ASHRAE) standards. As added by P.L.98-2002, SEC.4. Amended by P.L.1-2010, SEC.146.
IC 36-1-12.5-3 "Qualified provider" defined
Sec. 3. (a) As used in this chapter, "qualified provider" means the
following:
(1) Before July 1, 1999, the term means a person that satisfies
both of the following:
(A) The person is experienced in the design, implementation,
and installation of energy conservation measures.
(B) The person submits to the school corporation or political
subdivision a performance bond to ensure the qualified
provider's faithful performance of the qualified provider's
obligations over the term of the guaranteed energy savings
contract.
(2) After June 30, 1999, the term means a person that satisfies
all of the following:
(A) Subject to subdivision (3), the person is experienced in
the design, implementation, and installation of energy
conservation measures.
(B) The person is certified and meets the requirements of
IC 4-13.6-4. The person's response to the request for
proposals must include a copy of the person's certificate of
qualification issued under IC 4-13.6-4.
(C) Subject to subdivision (3), the person provides energy
conservation engineering services by a professional engineer
licensed under IC 25-31 who is under the person's direct
employment and supervision. The person's response to the
request for proposals must include the license number of
each professional engineer employed by the person to satisfy
the requirement of this clause.
(D) The person provides:
(i) monitoring for the facility performance guarantee; and
(ii) service personnel under the person's direct
employment and supervision;
for the duration of the contract's guarantee.
(E) The person performs at least twenty percent (20%) of the
work (measured in dollars of the total contract price) with its
own workforce.
(F) The person submits to the school corporation or political
subdivision a performance bond to ensure the qualified
provider's faithful performance of the qualified provider's
obligations over the term of:
(i) the guaranteed energy savings contract; or
(ii) the guaranteed savings contract.
(3) With respect to conservation measures for which a contract
is executed after June 30, 2006, the term includes a person that
satisfies the following:
(A) The person is experienced in the design, implementation,
and installation of conservation measures.
(B) The person provides engineering services with respect to
conservation measures by a professional engineer licensed
under IC 25-31 who is under the person's direct employment
and supervision. The person's response to the request for
proposals must include the license number of each
professional engineer employed by the person to satisfy the
requirement of this clause.
(b) For purposes of a guaranteed energy savings contract entered
into before July 1, 1999, a person who was a qualified provider under
subsection (a)(1) at the time the contract was entered into remains a
qualified provider for that contract after June 30, 1999. If the person
enters into:
(1) a guaranteed energy savings contract after June 30, 1999,
and before July 1, 2006, the person must satisfy the
requirements of subsection (a)(2); or
(2) a guaranteed savings contract after June 30, 2006, the
person must satisfy the requirements of subsection (a)(2) and
(a)(3);
to be considered a qualified provider. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995, SEC.6;
P.L.58-1999, SEC.10; P.L.168-2006, SEC.8.
IC 36-1-12.5-3.5 "Related capital expenditures" defined
Sec. 3.5. As used in this chapter, "related capital expenditures"
includes capital costs that:
(1) the governing body reasonably believes will be incurred
during the contract term;
(2) are part of or are causally connected to the conservation
measures being implemented; and
(3) are documented by industry engineering standards. As added by P.L.98-2002, SEC.5. Amended by P.L.168-2006, SEC.9.
IC 36-1-12.5-3.7 "Stipulated savings" defined
Sec. 3.7. As used in this chapter, "stipulated savings" are assumed
savings that are documented by industry engineering standards. As added by P.L.98-2002, SEC.6.
IC 36-1-12.5-4 "Utility efficiency program" defined
Sec. 4. As used in this chapter, "utility efficiency program" refers
to an energy, a water, or a wastewater efficiency program that:
(1) includes a conservation measure;
(2) is established by a public utility (as defined in IC 8-1-8.7-2);
and
(3) is undertaken pursuant to this chapter. As added by P.L.24-1993, SEC.6. Amended by P.L.168-2006,
SEC.10.
IC 36-1-12.5-5 Agreements to participate in programs or enter into contracts;
necessary findings, notice, and provisions
Sec. 5. (a) The governing body may enter into an agreement with
a public utility to participate in a utility efficiency program or enter
into a guaranteed savings contract with a qualified provider to
increase the political subdivision's billable revenues or reduce the
school corporation's or the political subdivision's energy or water
consumption, wastewater usage costs, or operating costs if, after
review of the report described in section 6 of this chapter, the
governing body finds:
(1) in the case of conservation measures other than those that
are part of a project related to the alteration of a water or
wastewater structure or system, that the amount the governing
body would spend on the conservation measures under the
contract and that are recommended in the report is not likely to
exceed the amount to be saved in energy consumption costs and
other operating costs over twenty (20) years from the date of
installation if the recommendations in the report were followed;
(2) in the case of conservation measures that are part of a
project related to the alteration of a water or wastewater
structure or system, that the amount the governing body would
spend on the conservation measures under the contract and that
are recommended in the report is not likely to exceed the
amount of increased billable revenues or the amount to be saved
in energy and water consumption costs, wastewater usage costs,
and other operating costs over twenty (20) years from the date
of installation if the recommendations in the report were
followed; and
(3) in the case of a guaranteed savings contract, the qualified
provider provides a written guarantee as described in subsection
(d)(3).
(b) Before entering into an agreement to participate in a utility
efficiency program or a guaranteed savings contract under this
section, the governing body must publish notice under subsection (c)
indicating:
(1) that the governing body is requesting public utilities or
qualified providers to propose conservation measures through:
(A) a utility efficiency program; or
(B) a guaranteed savings contract; and
(2) the date, the time, and the place where proposals must be
received.
(c) The notice required by subsection (b) must:
(1) be published in two (2) newspapers of general circulation in
the county where the school corporation or the political
subdivision is located;
(2) be published two (2) times with at least one (1) week
between publications and with the second publication made at
least thirty (30) days before the date by which proposals must
be received; and
(3) meet the requirements of IC 5-3-1-1.
(d) An agreement to participate in a utility efficiency program or
guaranteed savings contract under this section must provide that:
(1) in the case of conservation measures other than those that
are part of a project related to the alteration of a water or
wastewater structure or system, all payments, except obligations
upon the termination of the agreement or contract before the
agreement or contract expires, may be made to the public utility
or qualified provider (whichever applies) in installments, not to
exceed the lesser of twenty (20) years or the average life of the
conservation measures installed from the date of final
installation;
(2) in the case of conservation measures that are part of a
project related to the alteration of a water or wastewater
structure or system, all payments, except obligations upon the
termination of the agreement or contract before the agreement
or contract expires, may be made to the public utility or
qualified provider (whichever applies) in installments, not to
exceed the lesser of twenty (20) years or the average life of the
conservation measures installed from the date of final
installation;
(3) in the case of the guaranteed savings contract:
(A) the:
(i) savings in energy and water consumption costs,
wastewater usage costs, and other operating costs; and
(ii) increase in billable revenues;
due to the conservation measures are guaranteed to cover the
costs of the payments for the measures; and
(B) the qualified provider will reimburse the school
corporation or political subdivision for the difference
between the guaranteed savings and the actual savings; and
(4) payments are subject to annual appropriation by the fiscal
body of the school corporation or political subdivision and do
not constitute an indebtedness of the school corporation or
political subdivision within the meaning of a constitutional or
statutory debt limitation.
(e) An agreement or a contract under this chapter is subject to
IC 5-16-7. As added by P.L.24-1993, SEC.6. Amended by P.L.212-1995, SEC.2;
P.L.208-1995, SEC.7; P.L.168-2006, SEC.11; P.L.71-2009, SEC.6;
P.L.99-2009, SEC.5.
IC 36-1-12.5-5.3 Certification of subcontractor required
Sec. 5.3. (a) This section applies only to a guaranteed energy
savings contract or a guaranteed savings contract entered into after
June 30, 1999.
(b) A qualified provider may enter into a subcontract:
(1) with a value of more than one hundred fifty thousand dollars
($150,000); and
(2) for the performance of any part of a guaranteed energy
savings contract or guaranteed savings contract;
only if the subcontractor is certified under IC 4-13.6-4. As added by P.L.58-1999, SEC.11. Amended by P.L.168-2006,
SEC.12.
IC 36-1-12.5-5.5 Procedures for issuance of bonds by political subdivisions not
applicable
Sec. 5.5. IC 6-1.1-20 does not apply to an agreement to participate
in:
(1) a utility efficiency program; or
(2) a guaranteed savings contract;
entered into under this chapter. As added by P.L.212-1995, SEC.3. Amended by P.L.168-2006,
SEC.13.
IC 36-1-12.5-6 Report before installation or remodeling
Sec. 6. (a) Before the public utility or the qualified provider may
install equipment in, make modifications to, or remodel a building or
complex of buildings under a utility efficiency program or a
guaranteed savings contract, the public utility or the qualified
provider (whichever applies) must issue a report that includes
estimates for the following:
(1) All costs attributable to the work stipulated in the agreement
or the contract, including the costs of design, engineering,
installation, maintenance, repairs, or debt service.
(2) The amounts by which:
(A) energy or water consumption;
(B) wastewater costs; or
(C) operating costs;
will be reduced.
(3) The amounts by which billable revenues will be increased.
(b) The report must also contain a listing of contractors and
subcontractors to be used by the public utility or the qualified
provider with respect to the conservation measures. As added by P.L.24-1993, SEC.6. Amended by P.L.168-2006,
SEC.14.
IC 36-1-12.5-7 Installment payment contracts; maximum period
Sec. 7. (a) If the governing body enters into an installment
payment contract for the purchase and installation of conservation
measures under this chapter that are part of a project that is not
related to the alteration of a water or wastewater structure or system,
the balance of the payments must be paid in installments not to
exceed the lesser of twenty (20) years or the average life of the
conservation measure installed from the date of final installation.
Payments under an installment payment contract are subject to
annual appropriation by the fiscal body of the school corporation or
political subdivision and do not constitute an indebtedness of the
school corporation or political subdivision within the meaning of a
constitutional or statutory debt limitation.
(b) If the governing body enters into an installment payment
contract for the purchase and installation of conservation measures
under this chapter that are part of a project that is related to the
alteration of a water or wastewater structure or system, the balance
of the payments must be paid in installments not to exceed the lesser
of twenty (20) years or the average life of the conservation measure
installed from the date of final installation. Payments under an
installment payment contract are subject to annual appropriation by
the fiscal body of the school corporation or political subdivision and
do not constitute an indebtedness of the school corporation or
political subdivision within the meaning of a constitutional or
statutory debt limitation.
(c) With respect to a conservation measure described in section
1(a)(2)(G) or 1(a)(2)(H) of this chapter, annual revenues or savings
from a guaranteed savings contract may be less than annual payments
on the contract if during the length of the contract total savings and
increased billable revenues occur as provided for by the contract.
(d) The financing of a guaranteed savings contract may be
provided by:
(1) the vendor under the guaranteed savings contract; or
(2) a third party financial institution or company. As added by P.L.24-1993, SEC.6. Amended by P.L.212-1995, SEC.4;
P.L.208-1995, SEC.8; P.L.168-2006, SEC.15; P.L.71-2009, SEC.7;
P.L.99-2009, SEC.6. IC 36-1-12.5-8 Approval required
Sec. 8. Conservation measures installed under a utility efficiency
program or a guaranteed savings contract must be approved by the
following:
(1) The state department of health, division of fire and building
safety, and any other state agency designated by statute.
(2) An architect or engineer licensed under IC 25-4 or IC 25-31
if the conservation measures have a cost of more than fifty
thousand dollars ($50,000). As added by P.L.24-1993, SEC.6. Amended by P.L.1-2006, SEC.555;
P.L.168-2006, SEC.16.
IC 36-1-12.5-9 Payroll records required; inspection
Sec. 9. (a) The contractor and each subcontractor engaged in
installing conservation measures under a guaranteed savings contract
shall keep full and accurate records indicating the names,
classifications, and work performed by each worker employed by the
respective contractor and subcontractor in connection with the work,
together with an accurate record of the number of hours worked by
each worker and the actual wages paid.
(b) The payroll records required to be kept under this section must
be open to inspection by an authorized representative of the
governing body or the department of labor. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995, SEC.9;
P.L.168-2006, SEC.17.
IC 36-1-12.5-10 Submission of contract and annual report to lieutenant governor
Sec. 10. The governing body shall:
(1) provide to the lieutenant governor not more than sixty (60)
days after the date of execution of the guaranteed savings
contract:
(A) a copy of the executed guaranteed savings contract;
(B) the:
(i) energy or water consumption costs;
(ii) wastewater usage costs; and
(iii) billable revenues, if any;
before the date of execution of the guaranteed savings
contract; and
(C) the documentation using industry engineering standards
for:
(i) stipulated savings; and
(ii) related capital expenditures; and
(2) annually report to the lieutenant governor, in accordance
with procedures established by the lieutenant governor, the
savings resulting in the previous year from the guaranteed
savings contract or utility efficiency program. As added by P.L.24-1993, SEC.6. Amended by P.L.208-1995,
IC 36-1-12.5-11 Contracts that include stipulated savings
Sec. 11. (a) A guaranteed savings contract that includes stipulated
savings must specify the methodology used to calculate the savings
using industry engineering standards.
(b) Stipulated savings may be used for conservation measures
including the following:
(1) Heating.
(2) Air conditioning.
(3) Ventilating.
(4) Lighting.
(5) Roofing.
(6) Windows.
(7) Water conservation.
(8) Fuel and power improvements.
(9) Wastewater generation.
(10) Billable revenue increases.
(11) Any work that is causally connected to the conservation
measures listed in subdivisions (1) through (10).
(c) The guaranteed savings contract shall:
(1) describe stipulated savings for:
(A) conservation measures; and
(B) work causally connected to the conservation measures;
and
(2) document assumptions by industry engineering standards. As added by P.L.98-2002, SEC.8. Amended by P.L.168-2006,
SEC.19.
IC 36-1-12.5-12 Improvements not causally connected to conservation measure
Sec. 12. (a) An improvement that is not causally connected to a
conservation measure may be included in a guaranteed savings
contract if:
(1) the total value of the improvement does not exceed fifteen
percent (15%) of the total value of the guaranteed savings
contract; and
(2) either:
(A) the improvement is necessary to conform to a law, a
rule, or an ordinance; or
(B) an analysis within the guaranteed savings contract
demonstrates that:
(i) there is an economic advantage to the political
subdivision in implementing an improvement as part of the
guaranteed savings contract; and
(ii) the savings justification for the improvement is
documented by industry engineering standards.
(b) The information required under subsection (a) must be
reported to the lieutenant governor. As added by P.L.98-2002, SEC.9. Amended by P.L.1-2006, SEC.557;
P.L.168-2006, SEC.20.
