KRS 56.780: Evaluation for cost -effective energy use and energy efficiency of buildings

prior to lease or purchase -- Structure of leases.

(1) Any building which the Finance and Administration Cabinet considers for leasing

or purchase shall be evaluated for cost -effective energy use and energy efficiency.

This evaluation shall be considered in choosing between competing leases or

building purchases. The cabinet shall consider the energy costs of operating a

building to ensure the selection of a cost -effective lease , and the cabinet shall

compare life-cycle energy cost analyses for competing leases.

(2) A lease may be structured so that both the lessor and the state agency as lessee may

share energy cost savings that can be accomplished by energy -efficient lease

arrangements. The lease may incorporate financial incentives to make energy

efficiency improvements that are cost effective in reducing the operating cost of the

building. The lease may provide for the state agency to make lease payments which

may be used to help fund the costs of energy conservation measures in the building,

if the costs are amortized and returned to the state agency over a period of years not

to exceed the useful life of the energy conservation measures. Thereafter, the state

agency shall be entitled to a reduction in the lease amount based on any continued

savings resulting from the energy conservation measures. The amount of reduction

shall be negotiated between the lessor and the state agency.