Arkansas Administrative Code
Agency 005 - DEPARTMENT OF EDUCATION
Division 01 - Division of Fiscal and Administrative Services
Rule 005.01.04-002 - ADE 193 - Rules Governing the Acquisition of Energy Conservation Measures
Universal Citation: AR Admin Rules 005.01.04-002
Current through Register Vol. 49, No. 2, February 2024
1.00 Authority
1.01 The Arkansas
State Board of Education's authority for promulgating these rules is pursuant
to Ark. Code Ann. §
6-11-105, Ark.
Code Ann. §
6-20-402
and
6-20-405
and Act 58 of the Second Extraordinary Session of 2003.
1.02 These rules shall be known as the
Arkansas Department of Education Rules Governing the Acquisition of Energy
Conservation Measures.
2.00 Purpose
2.01 The purpose of these rules is to
establish how school districts acquire energy conservation measures using
energy savings contracts and short-term debt instruments.
3.00 Definitions - For purposes of these rules, the following terms mean:
3.01 "Energy conservation measure" - any
improvement, repair, alteration, or betterment of any building or facility
owned or operated by a school district or any equipment, fixture, or furnishing
to be added to or used in any building or facility that is designed to reduce
energy consumption or operating costs and may include, without limitation, one
(1) or more of the following:
3.01.01
Insulation of the building structure or systems within the building;
3.01.02 Storm windows or doors, caulking or
weather stripping, multi-glazed windows or doors, heat absorbing or heat
reflective glazed and coated window or door systems, additional glazing,
reductions in glass area, or other window and door system modifications that
reduce energy consumption;
3.01.03
Automated or computerized energy control systems;
3.01.04 Heating, ventilating, or air
conditioning system modifications or replacements;
3.01.05 Replacements or modifications of
lighting fixtures to increase the energy efficiency of the lighting
system;
3.01.06 Indoor air quality
improvements to increase air quality that conform to the applicable state or
local building code requirements even in lieu of an increase in energy
usage;
3.01.07 Any additional
building infrastructure improvements, cost savings, and life safety or other
safety or conservation measures that provide long-term operating cost
reductions and are in compliance with state and local codes; and
3.01.08 Building operation programs that
reduce operating costs.
3.02 "Energy savings contract" - a contract
for the implementation of one (1) or more energy conservation measures as
defined in §
6-20-401 and shall
include a pre-installation energy audit or analysis.
3.02.01 The contract may provide that all
payments except obligations on termination of the contract before its
expiration are to be made over time and that the energy cost savings are
guaranteed to the extent necessary to pay the costs of the energy conservation
measures.
3.02.02 The energy
conservation measures to be performed under the contract may be paid for with
either revenue or non-revenue receipts of a school district or, alternatively,
financed by the issuance of postdated warrants or entering into installment
contracts or lease-purchase agreement.
3.03 "Qualified provider" - business that
possesses a valid Arkansas contractor's license and that is experienced in the
analysis, design, implementation, and installation of energy efficiency and
facility improvement measures, and who has demonstrated the ability to secure
necessary financial measures to support energy savings guarantees, the
technical capabilities to ensure such measures generate energy cost savings,
and the ability to provide maintenance and ongoing measurement of these
measures to ensure and verify energy savings.
4.00 Process And Procedure For Acquiring Energy Conservation Measures
4.01 A school district may enter into a
guaranteed energy savings contract with a qualified provider if it finds that
the amount it would spend on the energy conservation measures recommended in
the proposal would not exceed the amount to be saved in either energy or
operational costs, or both, within a fifteen-year period from the date of
installation, if the recommendations in the proposal are followed.
4.02 A school district's purchase or
installation or both of energy conservation measures under §
6-20-405
may be financed by the school district over a fifteen-year period after the
execution by the school district of the postdated warrants, lease-purchase
agreement, or installment contract.
4.03 The energy conservation measures to be
performed under the contract may be paid for with either revenue or non-revenue
receipts of a school district or, alternatively, financed by the issuance of
postdated warrants or entering into installment contracts or lease-purchase
agreements.
4.04 Postdated
warrants, lease-purchase agreements, and installment contracts must be
registered on forms provided by the State Board of Education with the treasurer
of the district and the board.
4.05
A copy of any guaranteed energy savings contract that is executed in connection
with the acquisition, installation, or construction of energy conservation
measures under this section shall be filed with the Department of
Education.
4.06 Obligations
incurred pursuant to a guaranteed energy savings contract are not included in
computing a district's debt ratio.
4.07 The district may select the qualified
provider or providers best qualified and capable of performing the desired work
and negotiate an energy savings contract for the project.
4.08 The qualified provider shall reimburse
the school district for any shortfall of guaranteed energy savings projected in
the project.
4.09 The qualified
provider's proposal shall include:
4.09.01
The estimates of all costs of installation, modifications, or remodeling,
including, without limitation, costs of a pre-installation energy audit or
analysis, design, engineering, installation, maintenance, repairs, debt
service, post-installation project monitoring, and data collection and
reporting, as well as whether energy consumed or the operating costs, or both,
will be reduced;
4.09.02 The
qualifications of the provider; and
4.09.03 Certification that all
energy-consuming products utilized in the projects will be certified with the
appropriate standards by the Air Conditioning and Refrigeration
Institute.
Disclaimer: These regulations may not be the most recent version. Arkansas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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