OR HB3653

Renames "energy savings performance contracts" to "energy performance contracts" and expands their scope beyond energy savings to include reducing greenhouse gas emissions, waste generation, water consumption, and increasing renewable energy generation and storage

Establishes new definitions for "qualified energy service company" requiring demonstrated technical, operational, financial and managerial capability, expertise in measuring energy use and emissions, and meeting State Department of Energy prequalification standards

Creates "performance guarantee" requirements that allocate responsibilities between state agencies and energy service companies, specify guarantee conditions, set agreement terms, and provide remedies including damages if contracted systems fail to achieve specified savings or benefits

Allows authorized state agencies to enter into energy performance contracts without competitive procurement if the agency negotiates a performance guarantee and contracts with a prequalified energy service company approved by the State Department of Energy

Amendments become operative January 1, 2026, with the act taking effect 91 days after the 2025 legislative session adjourns; the Attorney General must adopt model rules for energy performance contract procedures