MI HB4080

School boards and intermediate school districts may contract with qualified providers for energy conservation and operational improvements, funded through operating funds, bonds, notes, installment contracts, or lease-purchase agreements with performance guarantees.

Energy conservation improvements may include building envelope upgrades, HVAC improvements, lighting retrofits, energy management systems, water use reductions, IT improvements, and other energy-consuming equipment upgrades.

Energy saving performance contracts must include detailed bids specifying guaranteed annual savings, total project costs, useful life of measures, and simple payback periods, with measurement and verification performed according to International Performance Measurement and Verification Protocol standards.

School boards must report improvement details and actual energy consumption data to the state treasurer within 60 days of completion and annually for 5 years following completion.

Lease-purchase agreements may extend up to 20 years from final completion or end of useful life (whichever is first), terminate automatically if funds become unavailable, and the school board retains ownership of improvements throughout the contract term.