Relating to energy costs.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF MISSOURI, AS FOLLOWS:

     Section 1. 1. For purposes of this section the following terms shall mean:

     (1) "Energy cost savings measure", a training program or facility alteration designed to reduce energy consumption or operating costs, and may include one or more of the following:

     (a) Insulation of the building structure or systems within the building;

     (b) Storm windows or doors, caulking or weather-stripping, multiglazed windows or doors, heat absorbing or heat reflective glazed and coated window or door systems, additional glazing reductions in glass area, or other window and door system modifications that reduce energy consumption;

     (c) Automated or computerized energy control systems;

     (d) Heating, ventilating or air conditioning system modifications or replacements;

     (e) Replacement or modification of lighting fixtures to increase the energy efficiency of the lighting system without increasing the overall illumination of a facility, unless an increase in illumination is necessary to conform to the applicable state or local building code for the lighting system after the proposed modifications are made;

     (f) Indoor air quality improvements to increase air quality that conforms to the applicable state or local building code requirements;

     (g) Energy recovery systems;

     (h) Cogeneration systems that produce steam or forms of energy such as heat, as well as electricity, for use primarily within a building or complex of buildings;

     (i) Any life safety measures that provide long-term operating cost reductions and are in compliance with state and local codes; or

     (j) Building operation programs that reduce the operating costs;

     (2) "Governmental unit", a state government agency, department, institution, college, university, technical school, legislative body or other establishment or official of the executive, judicial or legislative branches of this state authorized by law to enter into contracts, including all local political subdivisions such as counties, municipalities, public school districts or public service or special purpose districts;

     (3) "Guaranteed energy cost savings contract", a contract for the implementation of one or more such measures. The contract shall provide that all payments, except obligations on termination of the contract before its expiration, are to be made over time and the energy cost savings are guaranteed to the extent necessary to make payments for the systems;

     (4) "Operational savings", expenses eliminated and future replacement expenditures avoided as a result of new equipment installed or services performed;

     (5) "Qualified provider", a person or business experienced in the design, implementation and installation of energy cost savings measures. A qualified provider to whom the contract is awarded shall give a sufficient bond to the governmental unit for its faithful performance of the equipment installation provided;

     (6) "Request for proposals" or "RFP", a negotiated procurement. The RFP will be announced through a public notice, from a governmental unit which will administer the guaranteed energy cost savings contract requesting innovative solutions and proposals for energy conservation measures. The request for proposal shall include the following:

     (a) The name and address of the governmental unit;

     (b) The name, address, title and phone number of a contact person;

     (c) The date, time and place where proposals shall be received;

     (d) The evaluation criteria for assessing the proposals; and

     (e) Any other stipulations and clarifications the governmental unit may require.

     2. Before entering into a guaranteed energy cost savings contract, a governmental unit shall submit a request for proposals. The governmental unit shall evaluate any proposal from a qualified provider. The governmental unit shall select the qualified provider that best meets the needs of the unit. The governmental unit shall provide public notice of the meeting at which it proposes to award a guaranteed energy cost savings contract, of the names of the parties to the proposed contract, and of the purpose of the contract. The public notice shall be made at least ten days prior to the meeting. After reviewing the proposals, a governmental unit may enter into a guaranteed energy cost savings contract with a qualified provider if it finds that the amount it would spend on the energy cost savings measures recommended in the proposal would not exceed the amount of energy or operational savings, or both, within a ten-year period from the date installation is complete, if the recommendations in the proposal are followed.

     3. The guaranteed energy cost savings contract shall include a written guarantee of the qualified provider that either the energy or operational cost savings, or both, will meet or exceed the costs of the energy cost savings measures within ten years. The qualified provider shall reimburse the governmental unit for any shortfall of guaranteed energy cost savings on an annual basis. The guaranteed energy cost savings contract may provide for payments over a period of time, not to exceed ten years.

     4. A governmental unit, or such units in combination, may enter into an installment payment contract or lease purchase agreement with a qualified provider for the purchase and installation of energy cost savings measures.

     5. Guaranteed energy cost savings contracts may extend beyond the fiscal year in which they become effective. The governmental unit shall include in its annual budget and appropriations measures for each subsequent fiscal year any amounts payable under guaranteed energy savings contracts during that fiscal year.

     6. A governmental unit may use a combination of funds designated for operating, capital expenditures or other specially designated funds for any guaranteed energy cost savings contract including purchases using installment payment contracts or lease purchase agreements.

     7. State aid and other amounts appropriated for distribution to or reimbursement to a governmental unit shall not be reduced as a result of energy cost savings realized from a guaranteed energy cost savings contract or a lease purchase agreement for the purchase and installation of energy conservation measures.