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56.780 Evaluation for cost-effective energy use and energy efficiency of buildings prior to lease or purchase -- Structure of leases.

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Page 1 of 1 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. <br>This evaluation shall be considered in choosing between competing leases or <br>building purchases. The cabinet shall consider the energy costs of operating a <br>building to ensure the selection of a cost-effective lease, and the cabinet shall <br>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 <br>arrangements. The lease may incorporate financial incentives to make energy <br>efficiency improvements that are cost effective in reducing the operating cost of the <br>building. The lease may provide for the state agency to make lease payments which <br>may be used to help fund the costs of energy efficiency measures in the building, if <br>the costs are amortized and returned to the state agency over a period of years not to <br>exceed the useful life of the energy efficiency measures. Thereafter, the state agency <br>shall be entitled to a reduction in the lease amount based on any continued savings <br>resulting from the energy efficiency measures. The amount of reduction shall be <br>negotiated between the lessor and the state agency. Effective: July 15, 1996 <br>History: Created 1996 Ky. Acts ch. 223, sec. 6, effective July 15, 1996.