Current through Register Vol. 30, No. 38, September 20, 2024
A. A school district may procure a guaranteed
energy cost savings contract with a qualified provider through competitive
sealed proposals in accordance with
R7-2-1041
through
R7-2-1050.
1. The request for proposal evaluation
factors required by
R7-2-1042(A)(1)(h)
shall include objective criteria for selecting the qualified provider,
including the cost of the contract, the energy cost savings, the net projected
energy savings, the quality of the technical approach, the quality of the
project management plan, the financial solvency of the qualified provider and
the experience of the qualified provider with projects of similar size and
scope.
2. Notwithstanding
R7-2-1042(A)(1)(h),
the request for proposals shall set forth the respective numerical weighting
for each evaluation criterion.
3.
At the qualified provider's expense, the proposal shall include an independent
third-party validation of cost savings calculations associated with each
proposed energy cost savings measure by a licensed, registered professional
engineer, with credentials from the national association of energy engineers,
who has demonstrated experience in energy analysis. The school district shall
approve the selection of the independent third party.
4. A school district may enter into a
guaranteed energy cost savings contract with a qualified provider if the school
district determines that the energy savings project will pay for itself within
the expected life of the energy cost savings measures implemented (according to
the manufacturer's equipment standards), the term of the financial agreement or
25 years, whichever is shortest, if the recommendations in the proposal are
followed. Notwithstanding this subsection, a school district may elect to use a
shorter capital cost repayment schedule than required pursuant to this
subsection. The school district shall retain the cost savings achieved by a
guaranteed energy cost savings contract, and these cost savings may be used to
pay for the contract and project implementation.
5. A qualified provider is a person that is
experienced in designing, implementing or installing energy cost savings
measures, that has a record of established projects or measures of similar size
and scope, that has demonstrated technical, operational, financial and
managerial capabilities to design and operate cost savings measures and
projects and that has the financial ability to satisfy guarantees for energy
cost savings.
B. In
selecting a contractor to perform any construction work related to performing
the guaranteed energy cost savings contract, the qualified provider may:
1. Develop and use a prequalification process
for contractors.
2. Require the
contractor to demonstrate that the contractor is adequately bonded to perform
the work and that the contractor has not failed to perform on a prior
job.
C. A study shall be
performed by the selected qualified provider in order to establish the exact
scope of the guaranteed energy cost savings contract, the fixed cost savings
guarantee amount and the methodology for determining actual savings. The
selected qualified provider will provide the school district with a final study
report which validates that the fixed cost savings guarantee amount will meet
or exceed the cost savings calculations contained within the original proposal.
The study report shall be reviewed and approved by the school district before
the actual installation of any equipment. The qualified provider shall transmit
a copy of the approved study report to the division of school facilities within
the department of administration and the governor's office.
D. The information to develop the energy
baseline shall be derived from historical energy costs or actual energy
measurements or shall be calculated from energy measurements at the facility
where energy cost savings measures are to be installed or implemented. The
baseline shall be established before the installation or implementation of
energy cost savings measures.
E.
One or more school districts may enter into a financing agreement with a
qualified provider or a financial institution, trustee or paying agent for the
purchase and installation or implementation of energy cost savings measures.
Any required financing may be obtained as part of the original competitive
sealed proposal process from the qualified provider, or from a third-party
financing institution that is procured separately in accordance with Articles
10 and 11.
F. The selected
qualified provider shall provide a performance bond in accordance with
R7-2-1103(A)(1)(c).
G. The selected qualified provider shall make
public the information in the subcontractor's bids.
H. The guaranteed energy cost savings
contract shall include the following:
1. A
requirement that, in determining whether the projected energy savings
calculations have been met, the energy savings shall be computed by comparing
the energy baseline before installation or implementation of the energy cost
savings measures with the energy consumed after installation or implementation
of the energy cost savings measures. The qualified provider and the school
district may agree to make modifications to the energy baseline only for any of
the following:
a. Changes in utility
rates.
b. Changes in the number of
days in the utility billing cycle.
c. Changes in the square footage of the
facility.
d. Changes in the
operational schedule of the facility.
e. Changes in facility temperature.
f. Significant changes in the
weather.
g. Significant changes in
the amount of equipment or lighting used in the facility.
h. Significant changes in the nature or
intensity of energy use such as the change of classroom space to laboratory
space.
2. A payment
schedule, with payments over a period of not more than the expected life of the
energy cost savings measures implemented (according to the manufacturer's
equipment standards), the term of the financial agreement or 25 years,
whichever is shortest, except a school district may elect to use a shorter
capital cost repayment schedule than required pursuant to this
subsection.
3. A requirement that
all payments, except obligations on termination of the contract before its
expiration, be made pursuant to the terms of the financing agreement.
4. A written guarantee from the
qualified provider that the energy savings will meet or exceed the costs of the
energy cost savings measures over the expected life of the energy cost savings
measures implemented (according to the manufacturer's equipment standards), the
term of the financial agreement or 25 years, whichever is shortest, except a
school district may elect to use a shorter capital cost repayment schedule than
required pursuant to this subsection. The school district shall ensure that the
contractor:
a. For the term of the guaranteed
energy cost savings contract, prepares a measurement and verification report on
an annual basis in addition to an annual reconciliation of savings.
b. Reimburses the school district for any
shortfall of guaranteed energy cost savings on an annual basis.
c. Uses the international performance and
measurement and verification protocol standards or the federal energy
management program standards to validate the savings guarantee.
I. A school district
may use a simplified energy performance contract for projects that are less
than $500,000. Simplified energy performance contracts are not required to
include an energy savings guarantee and shall comply with all requirements in
this Section except for subsections (D), (H)(1)(a) through (h) and (H)(4)(a)
through (c).
J. This Section does
not apply to the construction of new buildings.
K. For all projects under this Section, the
school district shall report to the division of school facilities within the
department of administration and the governor's office:
1. The name of the project.
2. The name of the qualified
provider.
3. The total cost of the
project.
4. The expected energy
cost savings and relevant escalators.
5. The agreed-on baseline in the measurement
and verification agreement in both kilowatt hours and dollars.
