7D.34 - ENERGY CONSERVATION LEASE-PURCHASE.
7D.34 ENERGY CONSERVATION LEASE-PURCHASE.
1. As used in this section:
a. "Energy conservation measure" means installation or
modification of an installation in a building which is primarily
intended to reduce energy consumption or allow the use of an
alternative energy source, which may contain integral control and
measurement devices.
b. "State agency" means a board, department, commission or
authority of or acting on behalf of the state having the power to
enter into contracts with or without the approval of the executive
council to acquire property in its own name or in the name of the
state. "State agency" does not mean the general assembly, the
courts, the governor or a political subdivision of the state.
2. a. A state agency may, with the approval of the executive
council, lease as lessee real and personal properties and facilities
for use as or in connection with any energy conservation measure for
which it may so acquire real and personal properties and facilities,
upon the terms, conditions and considerations the official or
officials having the authority with or without the approval of the
executive council to commit the state agency to acquire real and
personal property and facilities deem in the best interests of the
state agency. A lease may include provisions for ultimate ownership
by the state or by the state agency and may obligate the state agency
to pay costs of maintenance, operation, insurance and taxes. The
state agency shall pay the rentals and the additional costs from the
annual appropriations for the state agency by the general assembly or
from other funds legally available. The lessor of the properties or
facilities may retain a security interest in them until title passes
to the state or state agency. The security interest may be assigned
or pledged by the lessor. In connection with the lease, the state
agency may contract for a letter of credit, insurance or other
security enhancement obligation with respect to its rental and other
obligations and pay the cost from annual appropriations for such
state agency by the general assembly or from other funds legally
available. The security enhancement arrangement may contain
customary terms and provisions, including reimbursement and
acceleration if appropriate. This section is a complete and
independent authorization and procedure for a state agency, with the
approval of the executive council, to enter into a lease and related
security enhancement arrangements and this section is not a
qualification of any other powers which a state agency may possess,
including those under chapter 262, and the authorization and powers
granted under this section are not subject to the terms or
requirements of any other provision of the Code.
b. Before a state agency seeks approval of the executive
council for leasing real or personal properties or facilities for use
as or in connection with any energy conservation measure, the state
agency shall have a comprehensive engineering analysis done on a
building in which it seeks to improve the energy efficiency by an
engineering firm approved by the office of energy independence
through a competitive selection process and the engineering firm is
subject to approval of the executive council. Provisions of this
section shall only apply to energy conservation measures identified
in the comprehensive engineering analysis.
c. Before the executive council gives its approval for a
state agency to lease real and personal properties or facilities for
use as or in connection with any energy conservation measure, the
executive council shall in conjunction with the office of energy
independence and after review of the engineering analysis submitted
by the state agency make a determination that the properties or
facilities will result in energy cost savings to the state in an
amount that results in the state recovering the cost of the
properties or facilities within six years after the initial
acquisition of the properties or facilities. Section History: Recent Form
85 Acts, ch 55, §1
CS85, § 19.34
C93, § 7D.34
2009 Acts, ch 108, §1, 41
Referred to in § 12.28, 28J.9, 469.3, 470.3, 470.7