1. (1) DEFINITIONS.--As used in this section, the term:

   1. (a) "Agency" means the state, a municipality, a school district or school board, or another political subdivision.

   2. (b) "Energy conservation measure" means a training program or facility alteration that reduces energy consumption or operating costs and includes:

      1. Insulation of the building structure and systems within the building.

      2. Storm windows and doors, caulking or weatherstripping, multiglazed windows and doors, heat-absorbing, or heat-reflective, glazed and coated window and door systems, additional glazing, reductions in glass area, and other window and door system modifications that reduce energy consumption.

      3. Automatic energy control systems.

      4. Heating, ventilating, or air-conditioning system modifications or replacements.

      5. Replacement or modifications of 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. Energy recovery systems.

      7. Cogeneration systems that produce steam or forms of energy such as heat, as well as electricity, for use primarily within a building or complex of buildings.

      8. Energy conservation measures that provide long-term operating cost reductions and significantly reduce Btu consumed.

   3. (c) "Energy savings" means a measured reduction in fuel and energy costs created from the implementation of one or more energy conservation measures when compared with an established baseline for previous fuel and energy costs.
   4. (d) "Guaranteed energy savings contract" means a contract for the evaluation and recommendation of energy conservation measures, including the design and installation of equipment to implement one or more of such measures. The contract may cover repair or replacement of existing equipment in a state-owned building or a state-owned hospital, professional fees, and financing charges to be paid from the energy savings less agreed-upon inflation factors, and maintenance services if applicable.
   5. (e) "Qualified provider" means a person or business that is licensed under chapter 471, chapter 481, or this chapter, and is experienced in the design, implementation, or installation of energy conservation measures through guaranteed energy savings contracts.

2. (2) PROCEDURES.--

   1. (a) An agency may enter into a guaranteed energy savings contract with a qualified provider or providers to significantly reduce energy or operating costs of an agency-owned building or an agency-owned hospital through one or more energy conservation measures.
   2. (b) Before entering into the contract, the agency must obtain from a qualified provider or providers a report that summarizes the costs of the energy conservation measures and provides an estimate of the amount the energy or operating costs will be reduced.
   3. (c) After a review of the report, the agency may enter into a contract if it finds that the amount it would spend on the energy conservation measures is not likely to exceed the amount to be saved in energy and operating costs for 10 years from the date of installation if the recommendations in the report were followed and if the qualified provider or providers give a written guarantee that the energy or operating cost savings will meet or exceed the costs of the system. The contract may provide for installment payments for a period not to exceed 10 years.
   4. (d) A qualified provider or providers must be selected in compliance with s. 287.055; except that if fewer than three firms are qualified to perform the required services, the requirement for agency selection of three firms, as provided in s. 287.055(4)(b), and the bid requirements of s. 287.057 do not apply.
   5. (e) Before entering into a contract under this section, an agency must provide published notice of the meeting in which it proposes to award the contract, the names of the parties to the proposed contract, and the contract's purpose.

3. (3) CONTRACT PROVISIONS.--

   1. (a) A guaranteed energy savings contract must include a written energy guarantee by the qualified provider or providers that savings will meet or exceed the cost of energy conservation measures.
   2. (b) The contract must provide that all payments, except obligations on termination of the contract before its expiration, may be made over time, but not to exceed 10 years from the date of complete installation and acceptance by the state, and that the savings are guaranteed to the extent necessary to make payments for the systems.
   3. (c) The contract must require that a qualified provider or providers to whom the contract is awarded provide a 100-percent project value bond to the state for its faithful performance, as required by chapter 287.
   4. (d) The contract must provide for payments of not less than one-tenth of the price to be paid within 2 years from the date of the complete installation and acceptance by the state, and the remaining costs to be paid at least quarterly, not to exceed a 10-year term.
   5. (e) The contract may extend beyond the fiscal year in which it becomes effective; however, the term of any contract expires at the end of each fiscal year and may be automatically renewed annually up to 10 years, subject to the agency making sufficient annual appropriations based upon continued realized energy savings.
   6. (f) The contract must stipulate that it does not constitute a debt, liability, or obligation of the state.

History.--s. 1, ch. 94-112.