MI HB5238

School boards and intermediate school districts may contract with qualified providers for energy conservation improvements and operational improvements to school facilities, with costs paid from operating funds, bonds, notes, installment contracts, or lease-purchase agreements.

Energy saving performance contracts must include detailed bid breakdowns showing annual energy savings or operational savings, combined project costs, useful life of improvements, and simple payback period, with measurement and verification performed per International Performance Measurement and Verification Protocol standards.

School boards must report to the state treasurer within 60 days of project completion, including facility names, actual energy consumption before improvements, project costs, and estimated annual savings; annual reports required for 5 years after completion.

Lease-purchase agreements may extend up to 20 years from final project completion or end of useful life (whichever is first), terminate immediately if appropriated funds become unavailable, and school boards retain ownership of improvements with ability to grant security interests to providers.

Energy conservation improvements and operational improvements include building envelope upgrades, HVAC systems, lighting retrofits, water use reductions, IT improvements, equipment replacements, and facility expansions, with operational improvements not required to be energy-related.