HB 6584 Summary

• Requires state and local governmental entities to conduct energy audits and implement cost-effective energy conservation measures by January 1, 2011, 2012, and 2013.

• Authorizes governmental units to enter into energy performance contracts with qualified energy service providers, structured as either guaranteed energy savings contracts or shared energy savings contracts, with contract terms not exceeding 25 years.

• Establishes the Department of Energy, Labor, and Economic Growth (DELEG) as lead agency to develop standardized energy performance contract processes, maintain lists of qualified energy service providers, and assist governmental units in identifying and implementing cost-saving measures.

• Requires independent review of projected cost savings by a licensed professional engineer with at least 3 years of energy calculation experience before contract approval.

• Permits governmental units to use designated funds, bonds, and master leases to finance energy performance contracts, with providers required to provide annual reconciliation reports and be liable for any shortfalls in guaranteed savings.