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56.774 Purpose of program -- Engineering analysis -- Methods of finance -- Documentation of savings.

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Page 1 of 2 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, engineering <br>analyses, energy efficiency measures, building improvements, and monitoring of <br>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 <br>efficient use of energy within the building. The analyses shall be performed by <br>qualified engineers, architects, or other persons trained in energy efficiency who <br>may be employees of the cabinet or employed pursuant to KRS Chapter 45A, except <br>that any engineers, architects or other persons trained in energy efficiency and <br>retained under a guaranteed energy savings performance contract, shall not be <br>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 <br>period of five (5) years or less, shall be implemented as general fund appropriations <br>become available. No more than five percent (5%) of the cost of energy efficiency <br>measures for a building may be utilized for monitoring the results. (4) If general fund appropriations are available for energy efficiency improvements, the cabinet shall prioritize projects among the various state-owned buildings to <br>determine which projects shall be implemented to best utilize the available funding. (5) If general fund appropriations are unavailable, energy efficiency measures for a state-owned building may be financed by other means. These other means include <br>but are not limited to guaranteed energy savings performance contracts as defined <br>under KRS 56.770 entered into pursuant to KRS 45A.085 and KRS 45A.045(10). <br>Guaranteed energy savings performance contracts shall not be subject to the <br>provisions of KRS 45A.800 to 45A.835. These energy efficiency measures shall not <br>be limited to those that have an aggregate simple payback period of five (5) years or <br>less, but shall result in reasonable economic benefit to the Commonwealth. <br>Ownership of the energy efficiency measures shall be transferred to the <br>Commonwealth upon completion of the guaranteed energy savings performance <br>contract or as otherwise agreed upon in the contract. Savings from the <br>implementation of the energy efficiency measures under the guaranteed energy <br>savings performance contract shall be used to satisfy the obligations under the <br>guaranteed energy savings performance contract and to repay the cost of the other <br>means used to finance the energy efficiency measures, and may be used to repay <br>expenses incurred by the cabinet to reimburse the cabinet for expenses related to the <br>guaranteed energy savings performance contract, including but not limited to staff <br>time for monitoring, overseeing, and managing the project. Notwithstanding KRS <br>45.229, remaining savings shall remain in the state agency account and shall not <br>lapse. All savings projected under a guaranteed energy savings performance <br>contract shall be guaranteed to the Commonwealth. Page 2 of 2 (6) The savings in reduced expenditures that are specified as payment sources shall be documented in the guaranteed energy savings performance contract. Savings shall <br>be determined by using one (1) of the measurement and verification methodologies <br>listed in the United States Department of Energy's &quot;International Performance <br>Measurement and Verification Protocol.&quot; If specific data limitations or documented <br>unique characteristics of the project prevent use of the &quot;International Performance <br>Measurement and Verification Protocol,&quot; an alternative method that is compatible <br>shall be adopted upon documentation and approval of the secretary of the cabinet. Effective: February 25, 2010 <br>History: Repealed and reenacted 2010 Ky. Acts. ch. 5, sec. 3, effective February 25, 2010. -- Amended 2008 Ky. Acts ch. 139, sec. 3, effective July 15, 2008. -- Amended <br>2002 Ky. Acts ch. 35, sec. 2, effective July 15, 2002. -- Amended 1998 Ky. Acts <br>ch. 375, sec. 5, effective July 15, 1998. -- Created 1996 Ky. Acts ch. 223, sec. 3, <br>effective July 15, 1996. Legislative Research Commission Note (2/25/2010). 2010 Ky. Acts ch. 5, sec. 28, provides that the repeal and reenactment of this section in that Act &quot;shall apply <br>retroactively to July 15, 2008.&quot;