F. The guaranteed energy cost savings contract shall require that in determining whether the projected energy savings calculations have been met, the energy costs savings shall be computed by comparing the energy baseline before installation or implementation of the energy cost savings measures with the energy consumed after installation or implementation of the energy cost savings measures. The qualified provider and the agent may agree to make modifications to the energy baseline only for any of the following:

1. 1. Changes in utility rates.
2. 2. Changes in the number of days in the utility billing cycle.
3. 3. Changes in the square footage of the facility.
4. 4. Changes in the operational schedule of the facility.
5. 5. Changes in facility temperature.
6. 6. Significant changes in the weather.
7. 7. Significant changes in the amount of equipment or lighting utilized in the facility.
8. 8. Significant changes in the nature or intensity of energy use such as the change of classroom space to laboratory space.

J. The guaranteed energy cost savings contract shall include a written guarantee of the qualified provider that the energy cost savings will meet or exceed the costs of the energy cost savings measures 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, except as provided in subsection I of this section. The qualified provider shall:

1. 1. For the term of the contract, prepare a measurement and verification report on an annual basis in addition to an annual reconciliation of savings.
2. 2. Reimburse the agent for any shortfall of guaranteed energy cost savings on an annual basis.
3. 3. Use the international performance and measurement and verification protocol standards or the federal energy management program standards to validate the savings guarantee.

P. For the purposes of this section:

1. 1. "Agent" has the same meaning prescribed in section 34-101 but also includes a community college district organized under title 15, chapter 12, the department of administration and the Arizona board of regents.
2. 2. "Construction" means the process of building, altering, repairing, improving or demolishing any structure or building, or other public improvements of any kind to any real property. Construction does not include the routine operation, routine repair or routine maintenance of existing structures, buildings or real property.
3. 3. "Energy baseline" means a calculation of the amount of energy used in an existing facility before the installation or implementation of the energy cost savings measures.

4. 4. "Energy cost savings" means one or both of the following:

   1. (a) An estimated reduction in net fuel costs, energy costs, water costs, stormwater fees, or other utility costs, or related net operating costs, including costs for anticipated equipment replacement and repair, from or as compared to an established baseline of those costs.
   2. (b) An estimate revenue increase associated with additional facility use or the use of improved meters or other measuring devices due to improvements included in the guaranteed energy cost savings contract.

5. 5. "Energy cost savings measure" means a training program or facility alteration designed to reduce energy consumption and may include one or more of the following, and any related meters or other measuring devices:

   1. (a) Insulating the building structure or systems in the building.
   2. (b) Storm windows or doors, caulking or weather stripping, multiglazed windows or door systems, additional glazing, reductions in glass area, or other window and door system modifications that reduce energy consumption.
   3. (c) Automated or computerized energy control systems.
   4. (d) Heating, ventilating or air conditioning system modifications or replacements, including ground source heat pumps.
   5. (e) Replacing or modifying lighting fixtures to increase the energy efficiency of the lighting system without increasing the overall illumination of a facility unless an increase in illumination is necessary to conform to the applicable state or local building code for the lighting system after the proposed modifications are made.
   6. (f) Indoor air quality improvements to increase air quality that conform to the applicable state or local building code requirements.
   7. (g) Energy recovery systems.
   8. (h) Installing a new or retrofitting an existing day lighting system.
   9. (i) Procurement of low-cost utility supplies of all types, including electricity, natural gas, propane and water.
   10. (j) Devices that reduce water consumption and water costs or that reduce sewer charges.
   11. (k) Rainwater harvesting systems.
   12. (l) Combined heat and power systems.
   13. (m) Renewable and alternative energy projects and renewable energy power service agreements.
   14. (n) Self-generation systems.
   15. (o) Any additional building systems and infrastructure that produce energy, or that provide utility cost savings not specifically mentioned in this paragraph, if the improvements meet the life cycle cost requirement and enhance building system performance or occupant comfort and safety.
   16. (p) Geothermal.
6. 6. "Life cycle cost" means the sum of the present values of investment costs, capital costs, installation costs, energy costs, operating costs, maintenance costs and disposal costs and utility rebates over the life of the project, product or measure as provided by federal life cycle cost rules, regulations and criteria contained in the United States department of energy federal energy management program "guidance on life-cycle cost analysis" required by executive order 13423, January 2007.
7. 7. "Qualified provider" means a person or a business that is experienced in designing, implementing or installing energy cost savings measures, that has a record of established projects or measures of similar size and scope, that has demonstrated technical, operational, financial and managerial capabilities to design and operate cost savings measures and projects and that has the financial ability to satisfy guarantees for energy cost savings.