KRS 103.282: Issuance of bonds to assist small or medium -sized manufacturers with

energy efficiency projects through guaranteed energy savings contracts.

(1) As used in this section:

(a) "Energy service company" means an entity in the business of providing

evaluation, design, implementation, installation, measurement and

verification, and other related services under guaranteed energy savings

contracts;

(b) "Guaranteed energy savings contract" means a contract for the evaluation and

recommendation of energy, water, and wastewater conservation measures and

for implementation of one (1) or more of those measures. The contract may

provide that payments, except obligations on termination of the contract

before its expiration, are to be made over time and shall provide t hat the

savings are guaranteed to the extent necessary to make payments for the cost

of the design, installation, and maintenance of energy, water, and wastewater

conservation measures; and

(c) "Small or medium -sized manufacturer" means any existing busine ss entity

organized for profit that is operating an industrial building used as a

manufacturing facility in the Commonwealth, and that has three hundred (300)

or fewer full-time employees located at that manufacturing facility at the time

bonds are to be issued pursuant to this section.

(2) In order to further the purposes stated in KRS 103.210 and to advance the

Commonwealth's goals of achieving a greater proportion of its energy needs

through increased efficiency and conservation in the private sector, bo nds may be

issued by any city, county, air board, riverport authority, or the Kentucky Economic

Development Finance Authority to assist a small or medium -sized manufacturer

with developing or improving its manufacturing facilities through the use of a

guaranteed energy savings contract to increase the energy efficiency thereof.

(3) Bonds shall only be issued pursuant to this section if:

(a) The energy efficiency project being undertaken through the guaranteed energy

savings contract is to be performed by a qualified provider as defined in KRS

45A.345; and

(b) The energy service company provides a guarantee that the project will achieve

a reduction in energy consumption:

1. That is measurable and verifiable; and

2. Which will result in cost savings that are equal to or greater than the cost

of the project within a seven (7) year payback period.