{"data":{"id":"us-ok/okla.-stat.-tit.-62-62-318","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 62, § 62-318","heading":"Performance-based efficiency contracts","body":"A. For purposes of this section:\n\n1. \"Public entity\" means any political subdivision of this\n\nstate, or a public trust which has as a beneficiary a political\n\nsubdivision of this state, or any institution of higher education\n\nwhich is part of The Oklahoma State System of Higher Education;\n\n2. \"Performance-based efficiency contract\" means a contract for\n\nthe design, development, financing, installation and service of any\n\nimprovement, repair, alteration or betterment of any building or\n\nfacility owned, operated or planned by a public entity; or any\n\nequipment, fixture or furnishing to be added to or used in any such\n\nbuilding or facility; or any maintenance or operational strategy\n\nthat is designed and implemented that will reduce utility\n\nconsumption or lower operating costs, result in annual operating\n\ncost savings, generate additional revenues or avoid capital cost\n\nincurrence and may include, but is not limited to, one or more of\n\nthe following:\n\na. utility services,\n\nb. heating, ventilating or air conditioning system\n\nmodifications or replacements and automated control\n\nsystems,\n\nc. replacement or modifications of lighting fixtures,\n\nd. indoor air quality improvements to increase air\n\nquality that conform to the applicable state or local\n\nbuilding code requirements when done in conjunction\n\nwith other cost-saving measures,\n\ne. any additional building infrastructure improvement,\n\ncost saving, life safety or any other improvement that\n\nprovides long-term operating cost reductions and is in\n\ncompliance with state and local codes,\n\nf. water-metering devices that increase efficiency or\n\naccuracy of water measurement and energy reduction, or\n\ng. any facility operation and support programs that\n\nreduce operating cost;\n\n3. \"Qualified provider\" means a person or business experienced\n\nor trained in the design, analysis and installation of energy\n\nconservation and facility management measures. A qualified provider\n\nmust employ a professional engineer registered in the State of\n\nOklahoma; and\n\n4. \"State governmental entity\" means the State of Oklahoma or\n\nany agency, board, commission, authority, department, public trust\n\nof which the state is the beneficiary or other instrumentality of\n\nstate government, other than a public trust with the state as\n\nbeneficiary whose jurisdiction is limited to one county, including,\n\nbut not limited to, the following:\n\na. Oklahoma Municipal Power Authority,\n\nb. Oklahoma Development Finance Authority,\n\nc. Oklahoma Industrial Finance Authority,\n\nd. Grand River Dam Authority,\n\ne. Oklahoma Water Resources Board,\n\nf. Northeast Oklahoma Public Facilities Authority,\n\ng. Oklahoma Turnpike Authority,\n\nh. Oklahoma Housing Finance Authority, and\n\ni. Oklahoma Public, Industrial and Cultural Facilities\n\nAuthority.\n\nB. In addition to any other legally permissible alternatives of\n\nentering into contracts, any public entity may enter into\n\nperformance-based efficiency contracts with a qualified provider\n\npursuant to the provisions of this section. The public entity may\n\nmake an initial payment from any funds available. Further, any\n\npublic entity may enter into an installment contract, lease purchase\n\nagreement or other contractual obligation for the purpose of\n\nfinancing performance-based efficiency projects for a term not to\n\nexceed the greater of twenty (20) years or the useful life of the\n\nproject. A qualified provider to whom the contract is awarded shall\n\nbe required to give a sufficient bond to the public entity for its\n\nfaithful performance of the contract. In addition, the public\n\nentity may require performance bonds covering the annual amount of\n\nguaranteed savings over the contract term.\n\nThe contract's cost savings to the public entity must be\n\nguaranteed each year during the term of the agreement. The savings\n\nmust be sufficient to offset the annual costs of the contract. Any\n\ninitial payment from funds other than an installment agreement must\n. In addition, the public\n\nentity may require performance bonds covering the annual amount of\n\nguaranteed savings over the contract term.\n\nThe contract's cost savings to the public entity must be\n\nguaranteed each year during the term of the agreement. The savings\n\nmust be sufficient to offset the annual costs of the contract. Any\n\ninitial payment from funds other than an installment agreement must\n\nalso be offset by savings, as described herein, over the term of the\n\nagreement. In calculating cost savings, the public entity may\n\nconsider capital cost avoidance and include additional revenue that\n\nis directly attributed to the performance-based efficiency contract.\n\nThe contract shall provide for reimbursement to the public entity\n\nannually for any shortfall of guaranteed savings. Savings must be\n\nmeasured, verified and documented during each year of the term and\n\nmay be utilized to meet the annual debt service. This section shall\n\nconstitute the sole authority necessary to enter into performance-\n\nbased efficiency contracts, without regard to compliance with other\n\nlaws which may specify additional procedural requirements for\n\nexecution of contracts.","path":["OK Code","Title 62"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os62.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"6b83d036b42be988b96866281abf830172ba7f5605396dcfcd54d2fa641bf64b","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-62-62-3114","next":"us-ok/okla.-stat.-tit.-62-62-325"},"notice":"GroundRules: Original legal text. Not legal advice."}