A. Each school district may establish an energy and water savings account that consists of a designated pool of capital investment monies to fund energy or water saving projects in school facilities. A school district may deposit in the account monies generated from the energy or water savings projects or measures implemented in school facilities. A school district may use monies in the energy and water savings account for payments under a performance contract entered into pursuant to section 15-213 or 15-213.01.

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B. The auditor general and the department of education shall prescribe the appropriate designation of the energy and water savings accounts in the uniform system of financial records and shall prescribe reporting requirements on the appropriate budget forms and annual financial report forms.

C. Monies deposited in an energy and water savings account shall be used as a designated pool of capital investment monies to pay for the incremental cost of energy or water savings measures in school facilities that are owned by the school district. Any contract entered into pursuant to this section shall contain an agreement between the qualified provider and the energy or water services company that both parties have performed a reasonable investigation to determine that the measures contemplated by the contract will result in stated energy or water savings. Contract terms may extend up to the expected life, according to the manufacturer’s equipment standards, of the energy cost savings measures implemented, the term of the financial agreement or twenty-five years, whichever is shortest.

D. Expenditures from an energy and water savings account shall be used only for the following:

1. Projects or measures pursuant to a contract pursuant to this section or Section 15-213.01 that save energy or water in school facilities that are owned by the school district. Monies may be used pursuant to this paragraph to provide technical assistance regarding energy or water savings to school districts by a qualified provider or energy or water services company.

2. Payment of principal, interest, related financing costs and prepayment premiums.

E. School districts shall procure energy or water savings measures or services with monies distributed from the energy and water savings accounts.

F. Before the implementation of the energy or water savings measures or services, the qualified provider or energy or water services company shall compute, and the school district shall review and approve, the estimated amount of the energy or water savings and the associated impact on energy, water or other costs and revenue to be achieved by the school district on an annual and monthly basis over the term of the guaranteed energy cost savings contract and shall include these estimates in the contract. The qualified provider and the school district shall update the annual and monthly energy or water savings and associated cost impact estimates annually based on actual experience for the term of the guaranteed energy cost savings contract.

G. Before the implementation of the energy or water savings measures or services, the qualified provider or financial institution, trustee or paying agent and the school district shall jointly develop a schedule of monthly or another mutually agreed-on interval of payments for repayment of the capital investment monies. The repayment schedule shall result in lower energy, water or other costs or increased revenue, which shall include the total cost of all the installed energy or water savings measures for the school district over the expected life, according to the manufacturer’s equipment standards, of the energy cost savings measures implemented, the term of the financial agreement or twenty-five years, whichever is shortest. The repayment schedule shall be included in the contract.

H. The school district shall transfer the amount of the payment prescribed pursuant to subsection G of this section to the energy and water savings account from the maintenance and operation portion of the school district’s budget to repay any unpaid balance of the capital investment previously deposited in the energy and water savings account from the qualified provider or energy or water services company plus a reasonable carrying charge. For the period of time that the company’s capital investment monies and reasonable carrying charge remain unpaid, the qualified provider or energy or water services company shall provide a separate billing or billing component to repay the capital investment pursuant to the repayment schedule prescribed pursuant to subsection G of this section, which shall be paid by the school district from the energy and water savings account. The school district’s general budget limit shall be reduced by the amount of monies transferred to the energy and water savings account pursuant to this section.

I. After the balance of the qualified provider’s or energy or water services company’s capital investment monies deposited in the energy and water savings account plus a reasonable carrying charge are repaid in full by the school district, the school district may discontinue the deposit in the energy and water savings account of amounts that are prescribed in subsection G of this section.

J. Any monies associated with an energy or water savings project remaining in the energy and water savings account after the capital investment monies of the qualified provider or energy or water services company plus a reasonable carrying charge are repaid in full may be transferred to the maintenance and operation portion of the school district’s budget, and the general budget limit may be increased by the amount transferred.

K. School districts may deposit energy-related rebate or grant monies in the energy and water savings account to assist in funding energy or water savings projects. These rebate or grant monies may be used to reduce the total cost of energy or water savings projects and to reduce the amount of capital investment monies received from and repaid to utility, energy or water services companies. School districts are not required to repay the rebate or grant monies in the manner described in subsection G of this section pursuant to the agreements with the providers of rebate or grant funds.

L. School districts shall not use or deposit any excess utilities monies budgeted pursuant to section 15-910 in the energy and water savings account.

M. School districts may deposit monies from other funding sources in the energy and water savings account to fund energy or water saving projects in school facilities. These monies shall be repaid in a manner consistent with this section and pursuant to the contract between the school district and the provider of the funding.

N. This section does not impose an obligation on any energy utility, water utility, public service corporation or agricultural improvement district to invest monies or contract with any school district.