SB 408 - The state, political subdivisions and other governmental units specified in the act may enter into a guaranteed energy cost savings contract for an energy cost savings project with a cost savings payback period of ten years or less. The governmental unit shall solicit and review bids for the contract and give public notice of the meeting at which the contract will be awarded.

The contract shall include a written guarantee that the provider shall reimburse the governmental unit for any shortfall of guaranteed energy cost savings on an annual basis. The contract may provide for payments over up to ten years.

One or more governmental units may enter into an installment payment contract or lease purchase agreement for the purchase and installation of energy cost savings measures.

The contracts may extend beyond the fiscal year in which they become effective. The governmental unit shall include in its annual budget and appropriations for each subsequent fiscal year any amounts payable under guaranteed energy savings contracts during that fiscal year. A governmental unit may use a combination of funds designated for operating purposes or capital expenditures or other specially designated funds for any such contract including purchases using installment payment contracts or lease purchase agreements.

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.

OTTO FAJEN