Conn. Gen. Stat. § 10a-9d: Energy-savings performance contract process.

(a) As used in this section:

(1) “Energy-savings measure”, “cost effective”, “operation and maintenance cost savings”, “qualified energy service provider”, “utility cost savings”, “standardized energy-savings performance contract process”, “investment-grade energy audit” and “energy-savings performance contract” each have the same meaning as provided in section 16a-37x.

(2) “Constituent unit” has the same meaning as provided in section 10a-1.

(3) “Chief executive officer” has the same meaning as provided in section 10a-151b.

(b) A chief executive officer may enter into an energy-savings performance contract pursuant to an energy-savings performance contract process established by such chief executive officer's constituent unit pursuant to section 16a-37x, provided (1) such process includes standard procedures for entering into an energy-savings performance contract and standard energy-savings performance contract documents, including, but not limited to, requests for qualifications, requests for proposals, investment-grade audit contracts, energy-savings performance contracts, including the form of the project savings guarantee, and project financing agreements, and (2) such contract is entered into in accordance with the policies adopted by the governing board of such constituent unit pursuant to subsection (a) of section 10a-151b.

(c) The energy-savings performance contract process established by a constituent unit shall include requests for qualifications or requests for proposals as follows:

(1) The constituent unit shall issue a request for qualifications from companies that can offer energy-savings performance contract services to create a list of qualified energy service providers.

(2) When reviewing requests for qualifications for inclusion on the list of qualified energy service providers, the constituent unit shall consider a company's experience with (A) design, engineering, installation, maintenance and repairs associated with energy-savings performance contracts; (B) conversions to a different energy or fuel source, associated with a comprehensive energy efficiency retrofit; (C) post-installation project monitoring, data collection and reporting of savings; (D) overall project management and qualifications; (E) accessing long-term financing; (F) financial stability; (G) projects of similar size and scope; (H) in-state projects and Connecticut-based subcontractors; (I) United States Department of Energy programs; (J) professional certifications; and (K) other factors determined by the constituent unit to be relevant and appropriate.

(3) Before entering into an energy-savings performance contract pursuant to this section, a constituent unit shall issue a request for proposals from three or more qualified energy service providers. A constituent unit may award the energy-savings performance contract to the qualified energy service provider that best meets the needs of the constituent unit, which need not be the lowest cost provided. A cost effective feasibility analysis shall be prepared in response to the request for proposals.

(4) The cost effective feasibility analysis included in the response to the request for proposals shall serve as the selection document for purposes of selecting a qualified energy service provider to engage in final contract negotiations. Factors to be included in selecting among the qualified energy service providers shall include, but not be limited to, (A) contract terms, (B) comprehensiveness of the proposal, (C) financial stability of the qualified energy service provider, (D) comprehensiveness of cost savings measures, (E) experience and quality of technical approach, and (F) overall benefits to the constituent unit.

(d) The qualified energy service provider selected as a result of the request for proposals set forth in subsection (c) of this section shall prepare an investment-grade audit, which, upon acceptance, shall be part of the final energy-savings performance contract entered into by the constituent unit. Such investment-grade energy audit shall include estimates of the amounts by which utility cost savings and operation and maintenance cost savings would increase and estimates of all costs of such utility cost savings measures or energy-savings measures, including, but not limited to, (1) itemized costs of design, (2) engineering, (3) equipment, (4) materials, (5) installation, (6) maintenance, (7) repairs, and (8) debt service. The qualified energy service provider and the constituent unit shall agree on the cost of the investment-grade audit before it is conducted.

(e) The policies adopted by the governing board of the constituent unit pursuant to subsection (a) of section 10a-151b may require that the cost savings projected by the qualified provider be reviewed by a professional engineer licensed in this state who has a minimum of three years' experience in energy calculation and review, is not an officer or employee of a qualified provider for the contract under review and is not otherwise associated with the contract. In conducting the review, the engineer shall focus primarily on the proposed improvements from an engineering perspective, the methodology and calculations related to cost savings, increases in revenue and, if applicable, efficiency or accuracy of metering equipment. An engineer who reviews a contract shall maintain the confidentiality of any proprietary information the engineer acquires while reviewing the contract.

(f) A guaranteed energy-savings performance contract may provide for financing, including tax exempt financing, by a third party. The contract for third-party financing may be separate from the energy-savings performance contract. A constituent unit may use designated funds, bonds, lease purchase agreements or master lease for any energy-savings performance contracts, provided its use is consistent with the purpose of the appropriation.

(g) Each energy-savings performance contract entered into pursuant to this section shall provide that all payments between parties, except obligations on termination of the contract before its expiration, shall be made over time and the objective of such energy-savings performance contracts is implementation of cost savings measures and energy and operational cost savings.

(h) An energy-savings performance contract entered into pursuant to this section, and payments provided thereunder, may extend beyond the fiscal year in which the energy-savings performance contract became effective, subject to appropriation of moneys, if required by law, for costs incurred in future fiscal years. The energy-savings performance contract may extend for a term not to exceed thirty years. The allowable length of the contract may also reflect the useful life of the cost savings measures. An energy-savings performance contract may provide for payments over a period not to exceed deadlines specified in the energy-savings performance contract from the date of the final installation of the cost savings measures.

(i) The energy-savings performance contract entered into pursuant to this section may provide that reconciliation of the amounts owed under the energy-savings performance contract shall occur in a period beyond one year with final reconciliation occurring within the term of the energy-savings performance contract. Such energy-savings performance contract shall include contingency provisions in the event that actual savings do not meet predicted savings.

(j) The energy-savings performance contract entered into pursuant to this section shall require the qualified energy service provider to provide to the constituent unit an annual reconciliation of the guaranteed energy cost savings. If the reconciliation reveals a shortfall in annual energy cost savings, the qualified energy service provider shall make payment to the constituent unit in the amount of the shortfall. If the reconciliation reveals an excess in annual energy cost savings, the excess savings shall remain with the constituent unit, and shall not be used to cover potential energy cost savings shortages in subsequent years or actual energy cost savings shortages in previous contract years.

(k) During the term of each energy performance contract entered into pursuant to this section, the qualified energy service provider shall monitor the reductions in energy consumption and cost savings attributable to the cost savings measures installed pursuant to the energy-savings performance contract and shall, not less than annually, prepare and provide a report to the constituent unit documenting the performance of the cost savings measures to the constituent unit. The report shall adhere to the most current version of the International Performance Measurement and Verification Protocol.

(l) The qualified energy service provider and constituent unit may agree to modify savings calculations based on any of the following:

(1) Subsequent material change to the baseline energy consumption identified at the beginning of the energy-savings performance contract;

(2) Changes in the number of days in the utility billing cycle;

(3) Changes in the total square footage of the building;

(4) Changes in the operational schedule of the facility;

(5) Changes in facility temperature;

(6) Material change in the weather;

(7) Material changes in the amount of equipment or lighting used at the facility; or

(8) Any other change which reasonably would be expected to modify energy use or energy costs.

(m) A constituent unit may direct savings realized under the energy-savings performance contract to contract payment and other required expenses and may, when practicable, reinvest savings beyond that required for contract payment and other required expenses into additional energy-savings measures.

(n) Nothing in this section shall be construed to require a constituent unit to use the standardized energy-savings performance contract process established pursuant to section 16a-37x to enter into an energy-savings performance contract if such constituent unit establishes its own energy-savings performance contract process.