I.Any state agency or municipality may enter into an energy performance contract for the purpose of undertaking or implementing energy measures including, but not limited to, energy conservation, energy efficiency, strategic electrification, fuel-switching, cogeneration, renewable energy, or energy storage. An energy performance contract may include, but shall not be limited to, options such as joint ventures, shared-savings contracts, positive cash flow financing, energy service contracts, power purchase agreements, or any combination thereof, provided that at the conclusion of the contract the agency will receive title to the energy system being financed, if the agency so desires.
II.Notwithstanding any law to the contrary relating to the award of public contracts, any agency desiring
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I. Any state agency or municipality may enter into an energy performance contract for the purpose of undertaking or implementing energy measures including, but not limited to, energy conservation, energy efficiency, strategic electrification, fuel-switching, cogeneration, renewable energy, or energy storage. An energy performance contract may include, but shall not be limited to, options such as joint ventures, shared-savings contracts, positive cash flow financing, energy service contracts, power purchase agreements, or any combination thereof, provided that at the conclusion of the contract the agency will receive title to the energy system being financed, if the agency so desires.
II. 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 usual contracting procedures and the following provisions:
(a) The agency shall issue a public request for proposals, advertised in the same manner as other programs, concerning the provision of energy efficiency services or the design, installation, operation, and maintenance of energy equipment, or both. 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. A request for qualifications or a request for proposals shall not contain terms that require membership in or accreditation from a specific regional, national, or international association of energy services companies, or the use of proprietary equipment that is not generally available to energy services companies.
(b) Upon receiving responses to the request for proposals, the agency may select the most qualified proposal or proposals on the basis of the experience and qualifications of the proposals, the technical approach, the financial arrangements, the overall benefits to the agency, and other factors determined by the agency to be relevant and appropriate.
(c) Upon the approval by the governor and council, the agency may 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.
(d) The term of any energy performance contract entered into pursuant to this section shall not exceed 20 years from the date of project implementation.
(e) Any contract entered into shall contain the following annual allocation dependency clause: "The continuation of this contract is contingent upon the appropriation of funds to fulfill the requirements of the contract by the applicable funding authority. If that authority fails to appropriate sufficient funds to provide for the continuation of the contract, the contract shall terminate on the last day of the fiscal year for which allocations were made."
(f) Any energy performance contract shall require the state to recover all implementation costs within 20 years from the date of project implementation at existing energy prices. The contract shall require that the public utility or energy services provider be repaid only to the extent of energy cost savings guaranteed by the contractor to accrue over the term of the contract.