KRS 56.774: Purpose of program -- Engineering analysis -- Methods of finance --

Documentation of savings.

(1) The Energy Efficiency Program for State Government Buildings shall provide for

implementation of low cost/no cost energy conservation measures, e ngineering

analyses, energy efficiency measures, building improvements, and monitoring of

results for state-owned or state-leased 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 be employees of the cabinet or employed pursu ant to KRS Chapter 45A,

except that any engineers, architects or other persons trained in energy efficiency

and retained under a guaranteed energy savings performance 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

conservation measures for a building may be utilized for monitoring the results.

(4) If general fund appropriations are available for energy conservation improvements,

the cabinet shall prioritize proje cts among the various state -owned buildings to

determine which projects shall be implemented to best utilize the available funding.

(5) If general fund appropriations are unavailable, energy conservation measures for a

state-owned building may be financed by other means. These other means include

but are not limited to guaranteed energy savings performance contracts as defined

under KRS 56.770 entered into pursuant to KRS 45A.085 and KRS 45A.045(11).

Guaranteed energy savings performance contracts shall not be subject to the

provisions of KRS 45A.800 to 45A.835. These energy conservation measures shall

not be limited to those that have an aggregate simple payback period of five (5)

years or less, but shall result in reasonable economic benefit to the Commonw ealth.

Ownership of the energy conservation measures shall be transferred to the

Commonwealth upon completion of the guaranteed energy savings performance

contract or as otherwise agreed upon in the contract. Savings from the

implementation of the energy c onservation measures under the guaranteed energy

savings performance contract shall be used to satisfy the obligations under the

guaranteed energy savings performance contract and to repay the cost of the other

means used to finance the energy conservation measures, and may be used to repay

expenses incurred by the cabinet to reimburse the cabinet for expenses related to the

guaranteed energy savings performance contract, including but not limited to staff

time for monitoring, overseeing, and managing the p roject. Notwithstanding KRS

45.229, remaining savings shall remain in the state agency account and shall not

lapse. All savings projected under a guaranteed energy savings performance

contract shall be guaranteed to the Commonwealth.

(6) The savings in red uced expenditures that are specified as payment sources shall be

documented in the guaranteed energy savings performance contract. Savings shall

be determined by using one (1) of the measurement and verification methodologies

listed in the United States De partment of Energy's "International Performance

Measurement and Verification Protocol." If specific data limitations or documented

unique characteristics of the project prevent use of the "International Performance

Measurement and Verification Protocol," a n alternative method that is compatible

shall be adopted upon documentation and approval of the secretary of the cabinet.