An improvement that is not causally connected to a conservation measure may be included in a guaranteed savings contract if:

1. (1) the total value of the improvement does not exceed fifteen percent (15%) of the total value of the guaranteed savings contract; and

2. (2) either:

   1. (A) the improvement is necessary to conform to a law, a rule, or an ordinance; or

   2. (B) an analysis within the guaranteed savings contract demonstrates that:

      1. (i) there is an economic advantage to the political subdivision in implementing an improvement as part of the guaranteed savings contract; and
      2. (ii) the savings justification for the improvement is documented by industry engineering standards.

As added by P.L.98-2002, SEC.9. Amended by P.L.1-2006, SEC.557; P.L.168-2006, SEC.20; P.L.109-2015, SEC.58; P.L.233-2015, SEC.332; P.L.157-2026, SEC.228.