1997 Minnesota Statutes

     16B.16 Energy efficiency installment purchases. 

    Subdivision 1.    Contract conditions.  (a) The 
 commissioner may contract to purchase by installment payments 
 capital or other equipment or services intended to improve the 
 energy efficiency of a state building or facility if: 

    (1) the term of the contract does not exceed ten years; 

    (2) the entire cost of the contract is a percentage of the 
 resultant savings in energy costs; 

    (3) the contract for purchase is competitive; 

    (4) the commissioner has determined that the contract 
 bidder is a responsible bidder under rules adopted by the 
 commissioner, has adequately performed all previous contracts 
 with the state, and has either established a record of promptly 
 paying all its suppliers and subcontractors or has made secure 
 provisions for doing so in connection with the current contract 
 for goods delivered and services rendered; 

    (5) the contract bidder can finance or obtain financing for 
 the performance of the contract without state assistance or 
 guarantee; and 

    (6) the state may unilaterally cancel the agreement if the 
 legislature fails to appropriate funds to continue the contract 
 or if the contractor at any time during the term of the contract 
 fails to provide or maintain the equipment to provide the 
 services, or otherwise to meet specifications for performance. 

    The commissioner may spend money appropriated for energy 
 costs in payment of a contract under this section.  

    (b) For purposes of clause (a), "contract bidder" means a 
 sole proprietorship, firm, corporation, or other business entity 
 submitting a bid or, if the entity submitting the bid is a new 
 enterprise, a person having a ten percent or greater financial 
 interest in the entity who has or has had a ten percent or 
 greater financial interest in any other entity that has entered 
 into past contracts with the state or other purchasers. 

    Subd. 2.    Energy conservation incentives.  
 Notwithstanding any other law to the contrary, fuel cost savings 
 resulting from energy conservation actions shall be available at 
 the managerial level at which the actions took place for 
 expenditure for other purposes within the biennium in which the 
 actions occur or in the case of a shared savings agreement for 
 the contract period of the shared savings agreement.  For 
 purposes of this subdivision "shared savings agreement" means a 
 contract meeting the terms and conditions of subdivision 1.  

    Subd. 3.    Legislative intent.  The purpose of the 
 energy efficiency installment purchase contracts authorized by 
 this section is to save money on energy costs.  The entire cost 
 of the contract must be a percentage of the resultant savings in 
 energy costs.  Neither the state nor any state agency is liable 
 to make payments on the contract except to the extent that there 
 are savings in energy costs that must be shared with other 
 parties to the contract.  The legislature intends not to 
 appropriate any more money to pay for energy costs as a result 
 of these contracts than would be payable without them. 

    HIST: 1984 c 544 s 21; 1984 c 654 art 2 s 44; 1984 c 655 art 2 
 s 13 subd 1; 1987 c 77 s 1; 1990 c 610 art 2 s 1