<br><br> <br>Page 1 of 2 <br>58.605 Energy conservation revenue bonds for energy conservation measures -- <br>Procedure. <br>(1) Subject to the reporting and approval requirements in KRS 45A.352, 45A.353, and <br>58.610, any local public agency may issue energy conservation revenue bonds to <br>pay for the cost of energy conservation measures under guaranteed energy savings <br>contracts for the purpose of reducing the cost of energy to buildings owned or <br>operated by the local public agency by making energy-saving improvements to these <br>buildings. <br>(2) A local public agency, or an agency acting on its behalf, may issue energy <br>conservation revenue bonds to finance the energy conservation measures under <br>guaranteed energy savings contracts, with the following limitations: <br>(a) Any energy conservation measure, financed through bonds, shall comply with <br>the provisions set forth in KRS 45A.345, 45A.352, and 45A.353; <br>(b) The term of the bonds shall run coterminous with the term of guaranteed <br>energy savings contract; <br>(c) A local public agency shall not enter into a guaranteed energy savings contract <br>where the total cost of the energy conservation measures exceeds the cost of <br>the energy savings plus the operational costs plus the capital cost avoidance <br>that is estimated for the term of the guaranteed energy savings contract <br>commencing from the date of the energy conservation measure's installation; <br>and <br>(d) The use of capital cost avoidance shall be subject to the following restrictions: <br>1. <br>The amount expended shall not exceed fifty percent (50%) of the project <br>cost; and <br>2. <br>Capital cost avoidance shall be restricted to payment for permanent <br>equipment replacement as follows: <br>a. <br>Storm windows or doors, multiglazed windows or doors, <br>additional glazing, and reduction in glass area; <br>b. <br>Replacement of heating, ventilating, or air conditioning major <br>components or systems; <br>c. <br>New lighting fixtures where required to achieve Illuminating <br>Engineering Society of North America (IES) standards, provided <br>the existing light fixtures shall have been determined to be <br>obsolete and incapable of achieving IES standards; and <br>d. <br>Life safety system replacements or upgrades which shall have been <br>determined to be necessary to conform with existing state and local <br>codes and standards. <br>(3) Energy conservation revenue bonds shall be issued in accordance with the <br>provisions of KRS 58.010 to 58.140 and shall be sold at a competitive sale preceded <br>by adequate public notice and shall bear interest at an interest rate or rates <br>determined by the local public agency at the time of the sale. <br>Effective: July 15, 1998 <br><br> <br>Page 2 of 2 <br>History: Amended 1998 Ky. Acts ch. 120, sec. 31, effective July 15, 1998; and ch. 375, <br>sec. 7, effective July 15, 1998. -- Created 1996 Ky. Acts ch. 213, sec. 2, effective <br>July 15, 1996. <br>Legislative Research Commission Note (7/15/98). This section was amended by 1998 <br>Ky. Acts chs. 120 and 375 which do not appear to be in conflict and have been <br>codified together. <br><br>