1. 1. The board of trustees of a school district shall adopt a policy setting forth the process for evaluating whether work to be performed on a building will be performed pursuant to a performance contract. The policy must include, without limitation:

   1. (a) The criteria for determining the work which will be evaluated pursuant to the policy;

   2. (b) The requirement that the board of trustees or its designee evaluate whether the work to be performed:

      1. (1) Consists primarily of one or more operating cost-savings measures;
      2. (2) Qualifies to be performed pursuant to a performance contract with a return on investment that the board of trustees determines would make entering into a performance contract in the best interest of the school district; and
      3. (3) Would be more reasonably included under an existing performance contract rather than a new performance contract; and
   3. (c) The requirement that the board of trustees or its designee, if it determines not to enter into a performance contract, document the reasons for that determination.

2. 2. The board of trustees of a school district shall cause to be prepared an annual report which sets forth the operating cost-savings measures, if any, that:

   1. (a) Were identified in a financial-grade operational audit submitted to the board of trustees pursuant to subsection 5 of NRS 332.360 during the immediately preceding year; and
   2. (b) Were not included in a performance contract during the immediately preceding year.

3. 3. As used in this section, “operating cost-savings measure” means an investment in equipment, products and materials, and strategies for building operation, or any combination thereof, designed to reduce energy and other utility expenses, including, without limitation:

   1. (a) Costs for materials and labor required to replace old equipment with new, more efficient equipment.
   2. (b) Storm windows or doors, caulking or weather stripping, multiglazed windows or doors, heat-absorbing or heat-reflective glazed or coated windows or doors, reductions in glass area, and other modifications to windows and doors that will reduce energy consumption.
   3. (c) Automated or computerized energy control systems.
   4. (d) Replacement of, or modifications to, heating, ventilation or air-conditioning systems.
   5. (e) Replacement of, or modifications to, lighting fixtures.
   6. (f) Improvements to the indoor air quality of a building that conform to all requirements of an applicable building code.
   7. (g) Energy recovery systems.
   8. (h) Systems for combined cooling, heating and power that produce steam or other forms of energy, for use primarily within the building or a complex of buildings.
   9. (i) Installation of, or modifications to, existing systems for daylighting, including lighting control systems.
   10. (j) Installation of, or modification to, technologies that use renewable or alternative energy sources.
   11. (k) Programs relating to building operation that reduce operating costs, including, without limitation, computerized programs, training and other similar activities.
   12. (l) Programs for improvement of steam traps to reduce operating costs.
   13. (m) Devices that reduce water consumption in buildings, for lawns and for other irrigation applications.
   14. (n) Trash compaction and waste minimization.
   15. (o) Ground source systems for heating and cooling.

(Added to NRS by 2013, 2118)