An act relating to financing of energy savings projects. Be it enacted by the General Assembly of the Commonwealth of Kentucky




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(17)[(16)] "Request for proposals" shall mean all documents, whether attached or incorporated by reference, utilized for soliciting proposals in accordance with the procedures set forth in KRS 45A.370, 45A.375, 45A.380, or 45A.385.

(18)[(17)] "Responsible bidder or offeror" shall mean a person who has the capability in all respects to perform fully the contract requirements, and the integrity and reliability which will assure good faith performance.

(19)[(18)] "Responsive bidder" shall mean a person who has submitted a bid under KRS 45A.365 which conforms in all material respects to the invitation for bids, so that all bidders may stand on equal footing with respect to the method and timeliness of submission and as to the substance of any resulting contract.

(20)[(19)] "Services" shall mean the rendering, by a contractor, of its time and effort rather than the furnishing of a specific end product other than reports which are merely incidental to the required performance of service. It does not include labor contracts with employees of local public agencies.

(21)[(20)] "Shall" shall mean imperative.

(22)[(21)] "Specifications" shall mean any description of a physical or functional characteristic of a supply, service, or construction item. It may include a description of any requirement for inspecting, testing, or preparing a supply, service, or construction item for delivery.

(23)[(22)] "Supplemental agreement" shall mean any contract modification which is accomplished by the mutual action of the parties.

(24)[(23)] "Supplies" shall mean all property, including but not limited to leases on real property, printing, and insurance, except land or a permanent interest in land.

(25)[(24)] "Energy conservation[efficiency] measure" means a training program or facility alteration designed to reduce energy consumption or operating costs, and may include one (1) or more of the following:

(a) Insulation of the building structure or systems within the building;

(b) Storm windows or doors, caulking or weatherstripping, multiglazed 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;

(c) Automated or computerized energy control systems;

(d) Heating, ventilating, or air conditioning system modifications or replacements;

(e) Replacement or modification of lighting fixtures to increase the energy efficiency of the lighting system without increasing the overall illumination of a facility, unless an increase in illumination is necessary to conform to the applicable state or local building code for the lighting system after the proposed modifications are made;

(f) Energy recovery systems;

(g) Cogeneration systems that produce steam or forms of energy such as heat, as well as electricity, for use primarily within a building or complex of buildings;

(h) Energy conservation measures that provide long-term operating cost reductions; or

(i) Any life safety measures that provide long-term operating cost reductions.

(26)[(25)] "Guaranteed energy savings contract" means a contract for the evaluation and recommendation of energy conservation measures and for implementation of one (1) or more of those measures. The contract shall provide that all payments, except obligations on termination of the contract before its expiration, are to be made over time and the savings are guaranteed to the extent necessary to make payments for the cost of the design, installation, and maintenance of energy conservation measures[the systems].

(27)[(26)] "Qualified provider" means a person or business experienced in the design, implementation, and installation of energy conservation[efficiency] measures and is determined to be qualified by the local public agency. The qualified provider shall be responsible for and shall provide the local public agency with the following information regarding guaranteed energy savings contracts:

(a) Project design and specifications;

(b) Construction management;

(c) Construction;

(d) Commissioning;

(e) On-going services as required;

(f) Measurement and verification of savings for guaranteed energy savings contracts; and

(g) Annual reconciliation statements as provided in subsection (8) of Section 3 of this Act.

Section 3. KRS 45A.352 is amended to read as follows:

(1) A local public agency may enter into a guaranteed energy savings contract for innovative solutions for energy conservation[efficiency] measures. The local public agency shall submit a request for proposals. The request for proposals for competitive procurement of guaranteed energy savings contracts shall include the following:

(a) The name and address of the governmental unit;

(b) The name, address, title, and phone number of a contact person;

(c) Notice indicating that the local public agency is requesting qualified providers to propose energy conservation[efficiency] measures through a guaranteed energy savings contract;

(d) The following evaluation criteria for assessing the proposals:

1. Construction management capabilities;

2. Technical approach to facilities included;

3. Financial attributes, as defined by total cost of contract and guaranteed savings and provider's financial strength demonstrating ability to fulfill the guarantee term; and

4. Provider's capability, personnel, track record, and demonstrated ability to accomplish the contract;

(e) The date, time, and place where proposals must be received;[ and]

(f) Any other stipulations and clarifications the local public agency may require; and

(g) An overview prepared by the local public agency stating goals or objectives specific to facility needs to be considered by the qualified providers who are responding to the request. Detailed scope of construction is not required.

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