Kentucky Statutes 56.774 – Purpose of program — Engineering analysis — Methods of finance — Documentation of savings
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(1) The Energy Efficiency Program for State Government Buildings shall provide for implementation of low cost/no cost energy conservation measures, engineering analyses, energy efficiency measures, building improvements, and monitoring of results for state-owned or state-leased buildings.
(2) Any engineering analysis conducted on a state-owned building shall assess the energy efficiency of the building and make recommendations for improving the efficient use of energy within the building. The analyses shall be performed by qualified engineers, architects, or other persons trained in energy efficiency who may be employees of the cabinet or employed pursuant to KRS Chapter 45A, except that any engineers, architects or other persons trained in energy efficiency and retained under a guaranteed energy savings performance contract, shall not be subject to the provisions of KRS § 45A.800 to KRS § 45A.835.
(3) Except as provided in subsection (5) of this section, measures to improve the energy efficiency of a state-owned building, which have an aggregate simple payback period of five (5) years or less, shall be implemented as general fund appropriations become available. No more than five percent (5%) of the cost of energy conservation measures for a building may be utilized for monitoring the results.
(4) If general fund appropriations are available for energy conservation improvements, the cabinet shall prioritize projects among the various state-owned buildings to determine which projects shall be implemented to best utilize the available funding.
(5) If general fund appropriations are unavailable, energy conservation measures for a state-owned building may be financed by other means. These other means include but are not limited to guaranteed energy savings performance contracts as defined under KRS § 56.770 entered into pursuant to KRS § 45A.085 and KRS § 45A.045(10). Guaranteed energy savings performance contracts shall not be subject to the provisions of KRS § 45A.800 to KRS § 45A.835. These energy conservation measures shall not be limited to those that have an aggregate simple payback period of five (5) years or less, but shall result in reasonable economic benefit to the Commonwealth. Ownership of the energy conservation measures shall be transferred to the Commonwealth upon completion of the guaranteed energy savings performance contract or as otherwise agreed upon in the contract. Savings from the implementation of the energy conservation measures under the guaranteed energy savings performance contract shall be used to satisfy the obligations under the guaranteed energy savings performance contract and to repay the cost of the other means used to finance the energy conservation measures, and may be used to repay expenses incurred by the cabinet to reimburse the cabinet for expenses related to the guaranteed energy savings performance contract, including but not limited to staff time for monitoring, overseeing, and managing the project. Notwithstanding KRS
45.229, remaining savings shall remain in the state agency account and shall not lapse. All savings projected under a guaranteed energy savings performance contract shall be guaranteed to the Commonwealth.
(6) The savings in reduced expenditures that are specified as payment sources shall be documented in the guaranteed energy savings performance contract. Savings shall
be determined by using one (1) of the measurement and verification methodologies listed in the United States Department of Energy’s “International Performance Measurement and Verification Protocol.” If specific data limitations or documented unique characteristics of the project prevent use of the “International Performance Measurement and Verification Protocol,” an alternative method that is compatible shall be adopted upon documentation and approval of the secretary of the cabinet.
Effective: July 15, 2014
History: Amended 2014 Ky. Acts ch. 65, sec. 3, effective July 15, 2014. — Repealed and reenacted 2010 Ky. Acts. ch. 5, sec. 3, effective February 25, 2010. — Amended
2008 Ky. Acts ch. 139, sec. 3, effective July 15, 2008. — Amended 2002 Ky. Acts ch. 35, sec. 2, effective July 15, 2002. — Amended 1998 Ky. Acts ch. 375, sec. 5, effective July 15, 1998. — Created 1996 Ky. Acts ch. 223, sec. 3, effective July 15,
1996.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 11, (4) at 1699.
Legislative Research Commission Note (2/25/2010). 2010 Ky. Acts ch. 5, sec. 28, provides that the repeal and reenactment of this section in that Act “shall apply retroactively to July 15, 2008.”
(2) Any engineering analysis conducted on a state-owned building shall assess the energy efficiency of the building and make recommendations for improving the efficient use of energy within the building. The analyses shall be performed by qualified engineers, architects, or other persons trained in energy efficiency who may be employees of the cabinet or employed pursuant to KRS Chapter 45A, except that any engineers, architects or other persons trained in energy efficiency and retained under a guaranteed energy savings performance contract, shall not be subject to the provisions of KRS § 45A.800 to KRS § 45A.835.
Terms Used In Kentucky Statutes 56.774
- branch budget: means an enactment by the General Assembly which provides appropriations and establishes fiscal policies and conditions for the biennial financial plan for the judicial branch, the legislative branch, and the executive branch, which shall include a separate budget bill for the Transportation Cabinet. See Kentucky Statutes 446.010
- Building: includes any structure or improvement upon real estate of a permanent nature and additionally includes any sites, structures, equipment, machinery, or devices for the purpose of establishing, developing, or furthering television or related services in aid of education or in aid of any other proper public functions, whether or not the same would otherwise be legally defined as buildings. See Kentucky Statutes 56.440
- Cabinet: means the Finance and Administration Cabinet. See Kentucky Statutes 56.440
- Commission: means the State Property and Buildings Commission. See Kentucky Statutes 56.440
- Contract: A legal written agreement that becomes binding when signed.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- State agency: means any state administrative body, agency, department, or division as defined in KRS §. See Kentucky Statutes 56.440
(3) Except as provided in subsection (5) of this section, measures to improve the energy efficiency of a state-owned building, which have an aggregate simple payback period of five (5) years or less, shall be implemented as general fund appropriations become available. No more than five percent (5%) of the cost of energy conservation measures for a building may be utilized for monitoring the results.
(4) If general fund appropriations are available for energy conservation improvements, the cabinet shall prioritize projects among the various state-owned buildings to determine which projects shall be implemented to best utilize the available funding.
(5) If general fund appropriations are unavailable, energy conservation measures for a state-owned building may be financed by other means. These other means include but are not limited to guaranteed energy savings performance contracts as defined under KRS § 56.770 entered into pursuant to KRS § 45A.085 and KRS § 45A.045(10). Guaranteed energy savings performance contracts shall not be subject to the provisions of KRS § 45A.800 to KRS § 45A.835. These energy conservation measures shall not be limited to those that have an aggregate simple payback period of five (5) years or less, but shall result in reasonable economic benefit to the Commonwealth. Ownership of the energy conservation measures shall be transferred to the Commonwealth upon completion of the guaranteed energy savings performance contract or as otherwise agreed upon in the contract. Savings from the implementation of the energy conservation measures under the guaranteed energy savings performance contract shall be used to satisfy the obligations under the guaranteed energy savings performance contract and to repay the cost of the other means used to finance the energy conservation measures, and may be used to repay expenses incurred by the cabinet to reimburse the cabinet for expenses related to the guaranteed energy savings performance contract, including but not limited to staff time for monitoring, overseeing, and managing the project. Notwithstanding KRS
45.229, remaining savings shall remain in the state agency account and shall not lapse. All savings projected under a guaranteed energy savings performance contract shall be guaranteed to the Commonwealth.
(6) The savings in reduced expenditures that are specified as payment sources shall be documented in the guaranteed energy savings performance contract. Savings shall
be determined by using one (1) of the measurement and verification methodologies listed in the United States Department of Energy’s “International Performance Measurement and Verification Protocol.” If specific data limitations or documented unique characteristics of the project prevent use of the “International Performance Measurement and Verification Protocol,” an alternative method that is compatible shall be adopted upon documentation and approval of the secretary of the cabinet.
Effective: July 15, 2014
History: Amended 2014 Ky. Acts ch. 65, sec. 3, effective July 15, 2014. — Repealed and reenacted 2010 Ky. Acts. ch. 5, sec. 3, effective February 25, 2010. — Amended
2008 Ky. Acts ch. 139, sec. 3, effective July 15, 2008. — Amended 2002 Ky. Acts ch. 35, sec. 2, effective July 15, 2002. — Amended 1998 Ky. Acts ch. 375, sec. 5, effective July 15, 1998. — Created 1996 Ky. Acts ch. 223, sec. 3, effective July 15,
1996.
2022-2024 Budget Reference. See State/Executive Branch Budget, 2022 Ky. Acts ch.
199, Pt. I, J, 11, (4) at 1699.
Legislative Research Commission Note (2/25/2010). 2010 Ky. Acts ch. 5, sec. 28, provides that the repeal and reenactment of this section in that Act “shall apply retroactively to July 15, 2008.”