MI HB6035

School districts, intermediate school districts, and local act school districts may contract with qualified providers for acquisition and financing of energy conservation and operational improvements to school facilities and infrastructure.

Improvements may be paid from operating funds, bond proceeds, installment contracts, lease-purchase agreements, or energy saving performance contracts with written financial guarantees tied to actual energy savings.

Contracts must include detailed breakdowns of projected energy performance savings, total project costs, useful life of each measure, and simple payback period, with measurement and verification performed according to January 2001 International Performance Measurement and Verification Protocol standards.

School boards must report to the state treasurer within 60 days of project completion regarding facility improvements, baseline energy consumption, project costs, and estimated annual savings, then annually for 5 years after completion.

Lease-purchase agreements are excluded from the Revised Municipal Finance Act, treated as current operating expenses subject to annual appropriations, and terminate immediately when funds are no longer available to satisfy obligations.