2001 Minnesota Statutes

     16C.14 Energy efficiency installment purchases. 

    Subdivision 1.    Contract conditions.  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, 
 with not more than a ten-year payback beginning at the 
 completion of the project; 

    (2) the entire cost of the contract is a percentage of the 
 resultant savings in energy costs only.  "Savings in energy cost"
 means a comparison of energy cost and energy usage under the 
 precontract conditions, including reasonable projections of 
 energy cost and usage if no change is made to the precontract 
 conditions, against energy cost and usage with the changes made 
 under the contract.  If it is impractical to directly measure 
 energy cost and/or energy usage, reasonable engineering 
 estimates may be substituted for measured results; 

    (3) the contract for purchase must be completed using a 
 solicitation; 

    (4) the commissioner has determined that the contract 
 vendor is a responsible vendor; 

    (5) the contract vendor 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 perform its contractual obligations, including failure 
 to deliver or install equipment or materials, failure to replace 
 faulty equipment or materials in a timely fashion, and failure 
 to maintain the equipment as agreed in the contract. 

    Subd. 2.    Energy appropriation.  The commissioner may 
 spend money appropriated for energy costs in payment of a 
 contract under this section.  

    Subd. 3.    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. 4.    Energy costs.  The entire cost of an energy 
 efficiency installment purchase contract must be a percentage of 
 the resultant savings in energy costs.  Neither the state nor 
 any 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.  

    HIST: 1998 c 386 art 1 s 15; 1999 c 250 art 1 s 66