HB 2107 | Page 10

1 SAVINGS PROJECTS, RETROFITTING, ENERGY CONSERVATION, ENERGY 2 INFRASTRUCTURE OUTSOURCING, POWER GENERATION AND ENERGY SUPPLY 3 AND RISK MANAGEMENT. 4 * * * 5 "OPERATING COSTS." 6 (1) AS FOLLOWS: REDUCTIONS IN EXPENSES, INCLUDING ENERGY-RELATED 7 COST SAVINGS, RELATED TO ENERGY AND WATER CONSUMING EQUIPMENT 8 OR THE BUILDING ENVELOPE. 9 (2) THE TERM INCLUDES: 10 (I) OPERATING AND MAINTENANCE SAVINGS. 11 (II) CAPITAL FUNDS BUDGETED FOR PROJECTS THAT, DUE 12 TO THE ENERGY SERVICES COMPANY PROJECT, WILL NOT BE 13 NECESSARY. 14 * * * 15 SECTION 5. 16 AMENDED TO READ: 17 ยง 3754. 18 (A) SECTIONS 3754(A) AND 3755(C) OF TITLE 62 ARE CONTRACT PROVISIONS. GENERAL RULE.--A GUARANTEED ENERGY SAVINGS CONTRACT MAY 19 PROVIDE THAT ALL PAYMENTS, EXCEPT OBLIGATIONS ON TERMINATION OF 20 THE CONTRACT BEFORE ITS SCHEDULED EXPIRATION, SHALL BE MADE OVER 21 A PERIOD OF TIME. EVERY GUARANTEED ENERGY SAVINGS CONTRACT THAT 22 REQUIRES PAYMENTS OVER A PERIOD OF TIME SHALL PROVIDE THAT, 23 AFTER THE INITIAL YEAR OF THE CONTRACT, THE SAVINGS IN EVERY 24 SUBSEQUENT YEAR ARE GUARANTEED TO THE EXTENT NECESSARY TO MAKE 25 PAYMENTS UNDER THE CONTRACT DURING THAT YEAR. A GUARANTEED 26 ENERGY SAVINGS CONTRACT, IN ADDITION TO THE QUANTIFICATION AND 27 GUARANTEE OF ENERGY SAVINGS, SHALL EXPRESSLY STATE, QUANTIFY AND 28 VALIDATE THE BUDGETARY SOURCES OF ALL ENERGY-RELATED COST 29 SAVINGS AND OPERATING COSTS UTILIZED TO SATISFY THE FINANCIAL 30 OBLIGATIONS AND PERFORMANCE DURING THE TERM OF THE AGREEMENT. 20160HB2107PN4118 - 10 -