18.1711 Short title; meanings of words or phrases. Sec. 1. (1) This act shall be known and may be cited as the “cost-effective governmental energy use act”. (2) For purposes of this act, the words and phrases defined in sections 2 to 5 have the meanings ascribed to them in those sections. History: 2012, Act […]
18.1712 “Cost-effective” defined. Sec. 2. “Cost-effective” means that the present value to a governmental unit of the energy, utility, capital cost avoidance, capital improvement, and operational costs and revenues reasonably expected to be saved or produced by a facility, activity, measure, equipment, or system over its useful life, including any compensation received from a utility, […]
18.1713 Definitions; C, D. Sec. 3. (1) “Cost-savings measure” may include any facility improvement, repair, or alteration of, or any equipment, fixture, or furnishing to be added or used in, any facility that is designed to reduce energy consumption, utility costs, capital avoidance costs, capital improvement costs, maintenance costs, and operating costs or increase revenue […]
18.1714 Definitions; E to O. Sec. 4. (1) “Energy performance contract” means a contract between a governmental unit and a qualified energy service provider for evaluation, recommendation, and implementation of 1 or more cost-savings measures. An energy performance contract may be structured as either a guaranteed energy savings contract or an energy savings performance contract. […]
18.1715 Definitions; P to U. Sec. 5. (1) “Person” means an individual, partnership, corporation, association, governmental entity, or other legal entity. (2) “Public building” means any structure, building, or facility, including its equipment, furnishings, or appliances, that is owned or operated by a governmental unit. (3) “Qualified energy service provider” means a person with a […]
18.1716 Energy performance contract; compliance of cost-savings measures with state or local building codes; limitation on duration. Sec. 6. Any governmental unit may enter into an energy performance contract with a qualified energy service provider to produce utility cost savings or operation and maintenance cost savings, except as otherwise provided in section 237 of the […]
18.1717 Program of energy performance contracts; department as lead agency; duties; evaluation of providers; criteria. Sec. 7. (1) The department is the lead agency for the development and promotion of a program of energy performance contracts in governmental units. The department shall do all of the following with respect to this program: (a) Assemble a […]
18.1718 Annual report. Sec. 8. The department shall develop an annual report of total facility capital liability and total dollar amount of completed and substantially completed energy performance contract work. Prior to December 31 of each calendar year, the department shall present this report to the members of the house appropriations committee and the senate […]
18.1719 Cost-savings measures at governmental facilities; departmental assistance. Sec. 9. The department shall assist governmental units in identifying, evaluating, and implementing cost-savings measures at their facilities. The assistance may include 1 or more of the following: (a) Apprising governmental units of opportunities to develop and finance energy performance contract projects. (b) Providing technical and analytical […]
18.1720 Fees charged by department; limitation. Sec. 10. The department may charge fees, not to exceed the lesser of $500,000.00 adjusted annually, beginning after calendar year 2014, by the consumer price index or up to 2% of the total cost of the energy performance contract project, for any administrative support and resources or other services […]
18.1721 Investment grade energy audit. Sec. 11. The qualified energy service provider chosen as a result of the process set forth in this section shall prepare an investment grade energy audit, which, upon acceptance, shall be part of the final energy performance contract. The investment grade energy audit shall include estimates of the amounts by […]
18.1722 Use of designated funds, bonds, or master lease; financing by third party. Sec. 12. (1) A governmental unit may use designated funds, bonds, or master lease for any energy performance contract, including purchases using installment payment contracts or lease purchase agreements, if that use is consistent with the purpose of the appropriation. (2) Unless […]
18.1723 Energy performance contract; provisions; extension; limitation. Sec. 13. (1) Each energy performance contract shall provide both of the following: (a) All payments between the parties, except obligations on termination of the contract before its expiration, shall be made over time. (b) The objective of the energy performance contract is implementation of cost-savings measures and […]
18.1724 Annual reconciliation of energy savings; liability for shortfall; report. Sec. 14. (1) An energy performance contract shall require the qualified energy service provider to provide to the governmental unit an annual reconciliation of the guaranteed energy savings based on industry standards. The contract shall provide that the qualified provider is liable for any shortfall […]
18.1725 Scope of act. Sec. 15. Nothing in this act mandates or shall be construed to mandate any of the following: (a) That government units join or pay membership dues to organizations involved in energy efficiency, sustainable development, or similar practices. (b) That government units abide by or otherwise follow international standards related to performance […]
