Montana Code 90-4-1102. Definitions
90-4-1102. Definitions. As used in this part, the following definitions apply:
Terms Used In Montana Code 90-4-1102
- Baseline: Projection of the receipts, outlays, and other budget amounts that would ensue in the future without any change in existing policy. Baseline projections are used to gauge the extent to which proposed legislation, if enacted into law, would alter current spending and revenue levels.
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Cost-saving measure: means a facility improvement, repair, or alteration or equipment, fixtures, or furnishings added to or used in a facility and designed to reduce energy or water consumption or operation and maintenance costs. 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
- Finance term: means the length of time for repayment of funds borrowed for an energy performance contract. See Montana Code 90-4-1102
- Governmental entity: means :
(a)a department, board, commission, institution, or branch of state government;
(b)a county, consolidated city-county government, city, town, or school district;
(c)a special district, as defined in 2-2-102;
(d)the university system or a unit of the university system; or
(e)a community college district. See Montana Code 90-4-1102
- Guarantee period: means the period of time from the effective date of the contract until guaranteed cost savings are achieved in accordance with 90-4-1114(5). 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
- Investment-grade energy audit: means a study of energy or water usage of a public building performed by a qualified energy service provider utilizing a professional engineer licensed in the state of Montana. See Montana Code 90-4-1102
- Measurement and verification: means the methodology, measurements, inspections, and mathematical calculations to determine utility consumption before and after an energy performance contract is implemented. See Montana Code 90-4-1102
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Operation and maintenance cost savings: means a measurable decrease in operation and maintenance costs as a direct result of cost-saving measures calculated using baseline operation and maintenance costs. See Montana Code 90-4-1102
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Person: means an individual, corporation, partnership, firm, association, cooperative, limited liability company, limited liability partnership, or any other similar entity. See Montana Code 90-4-1102
- Qualified energy service provider: means a person included on the department's list of qualified energy service providers. See Montana Code 90-4-1102
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
- Total project cost: means the total cost of the project, including costs of the investment-grade energy audit, energy performance contract, measurement and verification, and financing. See Montana Code 90-4-1102
- Usage: means a reasonable and lawful public custom concerning transactions of the same nature as those which are to be affected thereby, existing at the place where the obligation is to be performed, and either known to the parties or so well established, general, and uniform that the parties must be presumed to have acted with reference thereto. See Montana Code 1-1-206
- Utility cost savings: means expenses for utilities that are eliminated or avoided on a long-term basis as a result of equipment installed or modified or services performed by a qualified energy service provider. See Montana Code 90-4-1102
(1)”Cost-effective” or “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.
(2)”Cost-saving measure” means a facility improvement, repair, or alteration or equipment, fixtures, or furnishings added to or used in a facility and designed to reduce energy or water consumption or operation and maintenance costs. The term also includes vehicle acquisitions, changes to utility rate or tariff schedules, or fuel source changes that result in cost savings.
(3)”Department” means the department of environmental quality provided for in 2-15-3501.
(4)”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.
(5)”Finance term” means the length of time for repayment of funds borrowed for an energy performance contract.
(6)”Governmental entity” means:
(a)a department, board, commission, institution, or branch of state government;
(b)a county, consolidated city-county government, city, town, or school district;
(c)a special district, as defined in 2-2-102;
(d)the university system or a unit of the university system; or
(e)a community college district.
(7)”Guarantee period” means the period of time from the effective date of the contract until guaranteed cost savings are achieved in accordance with 90-4-1114(5).
(8)”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. Guaranteed cost savings for utility cost savings must be calculated using mutually agreed on baseline utility rates in use at the time of an investment-grade energy audit. Guaranteed cost savings for operation and maintenance cost savings must be calculated using mutually agreed on baseline operation and maintenance costs at the time of an investment-grade energy audit.
(9)”Investment-grade energy audit” means a study of energy or water usage of a public building performed by a qualified energy service provider utilizing a professional engineer licensed in the state of Montana. It includes detailed descriptions of the improvements recommended for the project, the estimated costs of the improvements, and the operation and maintenance cost savings and utility cost savings projected to result from the recommended improvements. The study must contain all information required pursuant to 90-4-1113(2).
(10)”Measurement and verification” means the methodology, measurements, inspections, and mathematical calculations to determine utility consumption before and after an energy performance contract is implemented. The measurement and verification report may be for an individual cost-saving measure or an entire project.
(11)”Operation and maintenance cost savings” means a measurable decrease in operation and maintenance costs as a direct result of cost-saving measures calculated using baseline operation and maintenance costs. The term does not include the shifting of personnel costs or similar short-term cost savings that cannot be definitively measured.
(12)”Person” means an individual, corporation, partnership, firm, association, cooperative, limited liability company, limited liability partnership, or any other similar entity.
(13)”Qualified energy service provider” means a person included on the department’s list of qualified energy service providers.
(14)”Total project cost” means the total cost of the project, including costs of the investment-grade energy audit, energy performance contract, measurement and verification, and financing.
(15)”Utility cost savings” means expenses for utilities that are eliminated or avoided on a long-term basis as a result of equipment installed or modified or services performed by a qualified energy service provider. Utility cost savings include expenses for natural gas, propane or similar fuels, electricity, water, wastewater, and waste disposal.