KRS 56.770: Definitions for KRS 56.770 to 56.784.

As used in KRS 56.770 to 56.784, unless the context requires otherwise:

(1) "Aggregate simple payback period" means the simple payback period of a set of

energy conservation measures taken together for a building;

(2) "Building" means all contiguous land, structures, appurtenances, and improvements

that use utilities;

(3) "Cabinet" means the Finance and Administration Cabinet;

(4) "Energy audit" means examination of a building's utility -using systems, utilities

consumption and costs, occupancy patterns, and operation and maintenance

procedures;

(5) "Energy conservation measure" means any construction, process, improvement,

repair, alteration, or betterment of a building or other state property that is intended

to reduce utility consumption or operational cos t; or any equipment, fixture, or

furnishing to be added to or used in a building that will be a cost -effective utility-

related project that is intended to reduce utility consumption or operational costs;

(6) "Guaranteed energy savings performance contract" means an agreement for the

provision of energy services or equipment, energy conservation measures and

alternate energy technologies for state government buildings or other state property,

in which a person agrees to design, construct, install, maintain, operate, or manage

energy systems or equipment to improve energy efficiency of, or produce energy in

connection with, a state government building. Payments for a guaranteed energy

savings performance contract shall be made from measured and verified saving s

generated from implementation of the energy conservation measures financed by

the contract. The term of a guaranteed energy savings performance contract shall

not exceed the life of the energy savings generated from implementation of the

energy conservation measures financed by the contract. If the measured and verified

savings are not sufficient to pay the financial obligations under the contract, the

contractor is liable for the contract payments;

(7) "High-performance building" means a public building that is designed, constructed,

and capable of being operated in a manner that:

(a) Increases environmental performance and economic value over time;

(b) Safeguards the health of occupants;

(c) Enhances satisfaction and productivity of workers through energy -

efficient systems;

(d) Incorporates environmentally friendly materials and products; and

(e) Reduces waste;

(8) "High-performance building standards" means a set of standards developed by the

cabinet pursuant to KRS 56.777;

(9) "Engineering analysis" means a detailed cost -benefit analysis of energy efficiency

investments including a review of potential cost savings through operation and

maintenance changes;

(10) "Life-cycle cost analysis" mean s a method for estimating the total cost of an

energy-using component or building over its useful life, including cost factors such

as purchase price or construction, renovation, or leasing costs, energy use,

maintenance, interest, and inflation;

(11) "Low cost/no cost energy conservation measures" means those energy saving

practices and energy conservation measures, usually involving operation and

maintenance practices, that can be accomplished by existing personnel within

existing operating budgets;

(12) "Simple payback period" means the number of years it takes to pay back, from

estimated savings, the initial cost of an energy conservation measure with the

simple payback period equal to the initial cost divided by the estimated annual

savings;

(13) "Savings" means the reduction in expenditures, excluding any state government and

post-secondary education personnel expenditures, that are measured and verified,

including but not limited to energy usage, operating costs, and capital cost

avoidance that occur a s a result of the implementation of energy conservation

measures;

(14) "Capital cost avoidance" means savings generated when expenditures of

appropriated capital construction or appropriated capital outlay funds are avoided

because the budgeted capital imp rovements or items of equipment are contained

within the energy conservation measures provided by a guaranteed energy savings

performance contract;

(15) "Operating costs" means expenditures associated with operating and maintaining a

properly functioning b uilding and its systems including but not limited to the

heating, ventilation, cooling, lighting, plumbing, water heating, electrical, and

laundry systems and their controls;

(16) "Public building" has the same meaning as in KRS 318.010;

(17) "ENERGY STAR" means the voluntary program administered by the United States

Environmental Protection Agency and the United States Department of Energy that

is designed to protect the environment through the promotion of energy -efficient

products and practices;

(18) "Green Globes rating system" means the on -line environmental assessment tool

developed by the Green Building Initiative as of December, 2004, that allows

designers, property owners, and managers to evaluate and rate buildings against

best sustainable building design practices and integrate principles of sustainable

architecture at every stage of project delivery in order to design and construct

buildings that will be energy -efficient and resource -efficient, achieve operational

savings, and provide healthier environments in which to live and work; and

(19) "LEED" means the building rating systems developed on or after January 1, 2005,

by the United States Green Building Council that allow designers, property owners,

and managers to evaluate and rate buildings against best sustainable building design

and practices and to integrate principles of sustainable architecture at every stage of

project delivery in order to design and construct buildings that will be energy -

efficient and resource -efficient using a whole -building approach in five (5) key

areas of human and environmental health:

(a) Sustainable site development;

(b) Water savings;

(c) Energy efficiency;

(d) Material selection; and

(e) Environmental quality.