(c)

1. (1) A school district’s purchase or installation or both of energy conservation measures under Arkansas Code § 6-20-405 may be financed by the school district over a twenty-year period after the execution by the school district of the:

   1. (A) Postdated warrants;
   2. (B) Lease-purchase agreement; or
   3. (C) Installment contract.

2. (2) However, no financing shall exceed the reasonably expected useful life of the energy facilities or equipment subject to the energy savings contract in favor of either a:

   1. (A) Qualified provider; or
   2. (B) Third party financing company designated by a qualified provider.

(d) If a guaranteed energy cost savings contract includes energy cost savings measures that possess either an active equipment warranty period or a combined useful life in excess of twenty (20) years, a guaranteed energy cost savings contract may be extended to the length of the:

1. (1) Equipment warranty period; or
2. (2) Weighted useful life of the relevant energy savings measures.

(f) The energy conservation measure to be performed under the contract may be:

1. (1) Paid for with either revenue or nonrevenue receipts of a school district; or

2. (2) Alternatively financed by:

   1. (A) The issuance of postdated warrants; or
   2. (B) Entering into installment contracts or lease-purchase agreements.

(g) Postdated warrants, lease-purchase agreements, and installment contracts must be registered on forms provided by the State Board of Education with the:

1. (1) Treasurer of the district; and
2. (2) Board.

(i)

1. (1) Obligations incurred pursuant to a guaranteed energy savings contract are not included in computing a school district’s debt ratio.
2. (2) In the event that an energy savings contract is to be executed concurrently with one (1) or more conventional construction contracts for a common structure, the energy savings contract shall be separate and distinct from the other contract.

(j) The district may:

1. (1) Select the qualified provider or providers best qualified and capable of performing the desired work; and
2. (2) Negotiate an energy savings contract for the project.

(l) The qualified provider’s proposal shall include:

1. (1) The estimates of all costs of installation, modifications, or remodeling, including without limitation, costs of an investment grade preinstallation energy audit and analysis, design, engineering, installation, commissioning, maintenance, repairs, debt service, postinstallation project monitoring, savings measurement and verification, and data collection and reporting, as well as whether energy consumed or the operating costs, or both, will be reduced;
2. (2) The qualifications of the provider; and
3. (3) The amount and specific sources of operational savings and capital cost avoidance that the school district acknowledges will occur without future measurement and verification;
4. (4) A statement from an Arkansas-licensed professional engineer that he or she was a member of the qualified provider’s project team that completed a comprehensive energy audit and analysis of the school district’s facilities; and
5. (5) The reasonably expected useful life of each recommended energy conservation measure.

(m) Except as provided in subdivision (m)(2) of this section, before entering into any energy savings contract, the contract shall be reviewed as follows.

1. (1)

   1. (A) The contract shall be reviewed by an engineer who is:

(i) Licensed in the State of Arkansas;

1. (ii) Designated by the Division of Public School Academic Facilities and Transportation as qualified to review energy savings contracts; and

   1. (B)

      1. (i) The engineer conducting the contract review shall report to the district any comments or issues that he or she believes merit consideration by the district before the district executes the energy savings contract.
      2. (ii) The engineer shall bear no liability for any estimation of energy savings generated as part of a contract review under subdivision (m)(2) of this section.
2. (2) Third party review as provided in subdivision (m)(1) of this section shall not be required if the qualified provider demonstrates the provider is a current member in good standing of the energy service company or energy service provider category of the National Association of Energy Service Companies.
3. (3) The qualified provider shall provide to the school district an annual reconciliation report of the guaranteed energy use savings.