56.774 Purpose of program -- Engineering analysis -- Methods of finance --
565 words·~3 min read·
/ky/56-774A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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
analyses, energy efficiency measures, building improvements, and monitoring of
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
efficient use of energy within the building. The analyses shall be performed by
qualified engineers, architects, or other persons trained in energy efficiency who
may be employees of the cabinet or employed pursuant to KRS Chapter 45A,
except that any engineers, architects or other persons trained in energy efficiency
and retained under a guaranteed energy savings performance contract, shall not be
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
period of five
(5)years or less, shall be implemented as general fund appropriations
become available. No more than five percent (5%) of the cost of energy
conservation measures for a building may be utilized for monitoring the results.
(4)If general fund appropriations are available for energy conservation improvements,
the cabinet shall prioritize projects among the various state-owned buildings to
determine which projects shall be implemented to best utilize the available funding.
(5)If general fund appropriations are unavailable, energy conservation measures for a
state-owned building may be financed by other means. These other means include
but are not limited to guaranteed energy savings performance contracts as defined
under KRS 56.770 entered into pursuant to KRS 45A.085 and KRS 45A.045(10).
Guaranteed energy savings performance contracts shall not be subject to the
provisions of KRS 45A.800 to 45A.835. These energy conservation measures shall
not be limited to those that have an aggregate simple payback period of five
years or less, but shall result in reasonable economic benefit to the Commonwealth.
Ownership of the energy conservation measures shall be transferred to the
Commonwealth upon completion of the guaranteed energy savings performance
contract or as otherwise agreed upon in the contract. Savings from the
implementation of the energy conservation measures under the guaranteed energy
savings performance contract shall be used to satisfy the obligations under the
guaranteed energy savings performance contract and to repay the cost of the other
means used to finance the energy conservation measures, and may be used to repay
expenses incurred by the cabinet to reimburse the cabinet for expenses related to the
guaranteed energy savings performance contract, including but not limited to staff
time for monitoring, overseeing, and managing the project. Notwithstanding KRS
45.229, remaining savings shall remain in the state agency account and shall not
lapse. All savings projected under a guaranteed energy savings performance
contract shall be guaranteed to the Commonwealth.
(6)The savings in reduced expenditures that are specified as payment sources shall be
documented in the guaranteed energy savings performance contract. Savings shall be determined by using one
(1)of the measurement and verification methodologies listed in the United States Department of Energy's "International Performance Measurement and Verification Protocol." If specific data limitations or documented unique characteristics of the project prevent use of the "International Performance Measurement and Verification Protocol," an alternative method that is compatible shall be adopted upon documentation and approval of the secretary of the cabinet.