Montana Code 90-4-1110. Duties and authority of department
90-4-1110. Duties and authority of department. (1) The department shall establish an energy performance contract program for governmental entities. The department shall:
Terms Used In Montana Code 90-4-1110
- Contract: A legal written agreement that becomes binding when signed.
- cost-effectiveness: means that the sum of guaranteed cost savings and unguaranteed energy cost savings attributable to utility unit price escalation is equal to or greater than:
(a)the energy performance contract financing repayment obligation, if any, each year of a finance term;
(b)the total project cost of the cost-saving measures implemented divided by 20; or
(c)the total project cost of the cost-saving measures implemented divided by the cost-weighted average useful life of the cost-saving measures. See Montana Code 90-4-1102
- Department: means the department of environmental quality provided for in 2-15-3501. See Montana Code 90-4-1102
- Energy performance contract: means a cost-effective contract between a governmental entity and a qualified energy service provider for implementation of one or more cost-saving measures and guaranteed cost savings. See Montana Code 90-4-1102
- Guaranteed cost savings: means a guaranteed annual measurable monetary reduction in utility and operating and maintenance costs for each year of a guarantee period resulting from cost-saving measures. See Montana Code 90-4-1102
- Process: means a writ or summons issued in the course of judicial proceedings. See Montana Code 1-1-202
(a)solicit, evaluate, and maintain a list of qualified energy service providers;
(b)develop a process to disqualify and remove from the list energy service providers who do not comply with qualifications established;
(c)enter into agreements with qualified energy service providers to provide services in accordance with this part;
(d)establish reporting requirements for qualified energy service providers;
(e)develop a model energy performance contract process and documents; and
(f)assist governmental entities interested in pursuing energy performance contracts by providing technical assistance and educational programs and by maintaining a website.
(2)The department may develop recommended best practices for:
(a)evaluating energy performance proposals and awarding energy performance contracts;
(b)measuring and verifying guaranteed cost savings and cost-effectiveness;
(c)identifying a variety of options to determine the amount of project costs to be covered by guaranteed cost savings;
(d)calculating guaranteed cost savings;
(e)measuring energy cost savings and verification;
(f)determining the cost-effectiveness of the energy performance contract when using an unguaranteed utility unit price escalation rate; and
(g)determining an unguaranteed utility unit price escalation rate.
(3)The department may adopt rules for the implementation of this part.