3. New lighting fixtures where required to achieve Illuminating Engineering Society of North America (IES) standards, provided the existing light fixtures shall have been determined to be obsolete and incapable of achieving IES standards; and
4. Life safety system replacements or upgrades which shall have been determined to be necessary to conform with existing state and local codes and standards.
(10) The chief state school officer shall review, and approve or disapprove projects from local school districts relating to energy conservation measures under a guaranteed energy savings contract, on the basis of the following guidelines:
(b) The availability of general funds, capital outlay allotments under Section 9 of this Act or local and state funds from the Facilities Support Program of Kentucky as provided by Section 10 of this Act, for projects that will use capital cost avoidance;
(c) The appropriate use of capital outlay allotments under Section 9 of this Act, local and state funds from the Facilities Support Program of Kentucky as provided by Section 10 of this Act, for projects using capital cost avoidance, based on the project's compliance with the district's approved facility plan;
(d) The funding capability of the school district; and
(e) The financing mechanism and proper financing documentation.
(11) The request for proposal as provided in subsections (1) to (4) of this section shall be deemed to satisfy the requirements set out in KRS 162.070, and shall not be subject to an award determination based on the lowest competitive bid or a separate bidding process for each energy conservation measure listed in the proposal.
Section 4. KRS 45A.353 is amended to read as follows:
(1) Guaranteed energy savings contracts may extend beyond the fiscal year in which they become effective. The local public agency shall include in its annual budget and appropriations act, for each subsequent fiscal year, any accounts payable under guaranteed energy savings contracts during the fiscal year.
(2) The local public agency shall document the operational and energy cost savings and capital cost avoidance specified in the guaranteed energy savings contract and designate and appropriate that amount for an annual payment of the contract. If the annual energy and operational savings are less than projected under the guaranteed savings contract, the qualified provider shall pay the difference as provided for in KRS 45A.352.
(3) Notwithstanding any other provisions of law to the contrary, a local public agency may finance the[enter into a lease-purchase agreement with the qualified provider for the purchase and] installation of energy conservation[efficiency] measures for its buildings through a lease-purchase agreement, bonds, or whichever brings the most economic value to the local public agency, subject to the local public agency's compliance with all other laws regarding approval of plans for additions, alterations, or renovations of its buildings.
(4) The component which is guaranteed as energy savings and as operational savings shall be exempt from current or future debt limitations, except that capital cost avoidance, as defined in Section 2 of this Act, shall be limited to current or future debt limitations.
Section 5. KRS 56.774 is amended to read as follows:
(1) The Energy Efficiency Program for State Government Buildings shall provide for implementation of low cost/no cost energy conservation[efficiency] measures, engineering analyses, energy conservation[efficiency] measures, building improvements, and monitoring of results for state-owned buildings.
(2) Any engineering analysis conducted on a state-owned building shall assess the energy efficiency of the building and make recommendations for improving the efficient use of energy within the building. The analyses shall be performed by qualified engineers, architects, or other persons trained in energy efficiency who may[shall] be employees of the Finance and Administration Cabinet or employed pursuant to KRS Chapter 45A, except that any engineers, architects or other persons trained in energy efficiency and retained under a guaranteed energy savings contract, shall not be subject to the provisions of KRS 45A.800 to 45A.835.
(3) Except as provided in subsection (5) of this section, measures to improve the energy efficiency of a state-owned building, which have an aggregate simple payback period of five (5) years or less, shall be implemented as general fund appropriations become available. No more than five percent (5%) of the cost of energy efficiency measures for a building may be utilized for monitoring the results.
(4) If general fund appropriations are available for energy efficiency improvements, the Finance and Administration Cabinet shall prioritize projects among the various state-owned buildings to determine which projects shall be implemented to best utilize the available funding.