2010 Minnesota Statutes

16C.14 ENERGY Next EFFICIENCY INSTALLMENT PURCHASES.

Subdivision 1. Previous Contract Next conditions.

The commissioner may Previous contract Next to purchase by installment payments capital or other equipment or services intended to improve the Previous energy Next efficiency or reduce the Previous energy Next costs of a state building or facility if:

(1) the term of the Previous contract Next does not exceed 15 years, with not more than a 15-year payback beginning at the completion of the project;

(2) the entire cost of the Previous contract Next is a percentage of the resultant savings in Previous energy Next costs and measurable operational costs. "Savings in Previous energy Next cost" means a comparison of Previous energy Next cost and Previous energy Next usage under the precontract conditions, including reasonable projections of Previous energy Next cost and usage if no change is made to the precontract conditions, against Previous energy Next cost and usage with the changes made under the Previous contract Next . If it is not cost effective to directly measure Previous energy Next cost and/or Previous energy Next usage, reasonable engineering estimates may be substituted for measured results. "Savings in measurable operational costs" may include savings from inventory reductions and outside maintenance expense, but do not include savings from in-house staff labor;

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

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

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

(6) the state may unilaterally cancel the agreement if the legislature fails to appropriate funds to continue the Previous contract Next or if the contractor at any time during the term of the Previous contract Next 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 Previous contract Next .

Subd. 2. Previous Energy Next appropriation.

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

Subd. 3. Previous Energy Next conservation incentives.

Notwithstanding any other law to the contrary, fuel cost savings resulting from Previous energy Next 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 Previous contract Next period of the shared savings agreement. For purposes of this subdivision "shared savings agreement" means a Previous contract Next meeting the terms and conditions of subdivision 1.

Subd. 4. Previous Energy Next and operational costs.

(a) The entire cost of an Previous energy Next efficiency installment purchase Previous contract Next must be a percentage of the resultant savings in Previous energy Next and operational costs. Neither the state nor any agency is liable to make payments on the Previous contract Next except to the extent that there are savings in Previous energy Next and operational costs that must be shared with other parties to the Previous contract Next .

(b) The state and the Previous contract Next vendor may agree to a reasonable floor price for each type of Previous energy Next used in the savings calculations at the time of Previous contract Next execution. If the state and the vendor agree to a floor price, that floor price shall be used throughout the term of the Previous contract.

History:

1998 c 386 art 1 s 15; 1999 c 250 art 1 s 66; 2002 c 260 s 1