TITLE 50 STATE GOVERNMENT

Section 37. Guaranteed Energy Savings Performance Contracting, 50-37-1 through 50-37-8.

ARTICLE 6 CONSTRUCTION OF CHAPTER

50-37-2. Definitions.

Unless otherwise provided, as used in this chapter, the term:

1. "Allowable costs" means equipment and project costs that:
   1. The governmental unit reasonably believes will be incurred during the term of the guaranteed energy savings performance contract; and
   2. Are documented by industry engineering standards.
2. "Authority" means the Georgia Environmental Finance Authority.
3. "Director" means the executive director of the Georgia Environmental Finance Authority.
4. "Energy conservation measure" means a program or facility alteration or technology upgrade designed to reduce energy, water, waste-water, or other consumption or operating costs. The term may include, without limitation:
   1. Insulation of the building structure or systems within the building;
   2. Storm windows or doors, caulking or weather stripping, multiglazed windows or doors, heat absorbing or heat reflective glazed and coated window or door systems, additional glazing, reductions in glass area, or other window and door system modifications that reduce energy consumption;
   3. Automated or computerized energy control systems;
   4. Heating, ventilating, or air-conditioning system modifications or replacements;
   5. Replacement or modification 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 applicable state or local building codes for the lighting system after the proposed modifications are made;
   6. Energy recovery ventilation systems;
   7. A training program or facility alteration that reduces energy consumption or reduces operating costs, including allowable costs, based on future reductions in costs for contracted services;
   8. A facility alteration which includes expenditures that are required to properly implement other energy conservation measures;
   9. A program to reduce energy costs through rate adjustments, load shifting to reduce peak demand, or use of alternative suppliers as otherwise provided by law, such as, but not limited to:
      1. Changes to more favorable rate schedules;
      2. Negotiation of lower rates, where applicable; and
      3. Auditing of energy service billing and meters;
   10. The installation of energy information and control systems that monitor consumption, redirect systems to optimal energy sources, and manage energy using equipment;
   11. Indoor air quality improvements;
   12. Daylighting systems;
   13. Renewable generation systems owned by the governmental unit, such as solar photovoltaic, solar thermal, wind, and other technologies as identified in the project, provided that all metered distribution and deliveries of electric energy are made by an electric supplier authorized under Part 1 of Article 1 of Chapter 3 of Title 46, the "Georgia Territorial Electric Service Act";
   14. Geothermal HVAC systems;
   15. Water and sewer conservation measures, including, without limitation, plumbing fixtures and infrastructure;
   16. Equipment upgrades that improve accuracy of billable revenue generating systems; and
   17. Automated, electronic, or remotely controlled systems or measures that reduce direct and other operating costs.
5. "Guaranteed energy savings performance contract" means a contract between the governmental unit and a qualified energy service provider for evaluation, recommendation, and implementation of one or more energy conservation measures which shall include, at a minimum, the design and installation of equipment and, if applicable, operation and maintenance of any of the measures implemented, and guaranteed annual savings which must meet or exceed the total annual contract payments made by the governmental unit for such contract, including financing charges to be incurred by the governmental unit over the life of the contract.
6. "Governmental unit" means any authority, board, bureau, commission, department, agency, or institution of state or local government, including, but not limited to, any state-aided institution, or any county, municipal corporation, consolidated government, or school district which has the authority to contract for the construction, reconstruction, alteration, or repair of any public building or other public work.
7. "Industry engineering standards" means:
   1. Life cycle costing;
   2. The R.S. Means-estimated costing method developed by the R.S. Means Company;
   3. Historical data;
   4. Manufacturer's data;
   5. American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) standards;
   6. International Performance Measurement and Verification Protocol; and
   7. Other applicable technical performance standards established by nationally recognized standards authorities.
8. "Investment grade energy audit" means a study by the qualified energy services provider selected for a particular guaranteed energy savings performance contract project which includes detailed descriptions of the improvements recommended for the project, the estimated costs of the improvements, and the utility and operation and maintenance cost savings projected to result from the recommended improvements. The investment grade energy audit shall also include a detailed economic analysis of the project's performance over the life of the contract term.
9. "Operational cost savings" means a measurable decrease in operation and maintenance costs that is a direct result of the implementation of one or more energy conservation measures. Such savings shall be calculated in comparison with an established baseline of operation and maintenance costs.
10. "Qualified energy services provider" means a person or business with a record of documented guaranteed energy savings performance contract projects that is experienced in the design, implementation, and installation of energy conservation measures; has the technical capabilities to verify that such measures generate guaranteed energy and operational cost savings or enhanced revenues; has the ability to secure or arrange the financing necessary to support energy savings guarantees; and is approved by the authority for inclusion on the prequalifications list.
11. "State agency" means every state agency, authority, board, bureau, commission, and department, including, without limitation, the Board of Regents of the University System of Georgia.

(Code 1981, §50-37-2, enacted by Ga. L. 2010, p. 1091, § 2/SB 194; Ga. L. 2011, p. 752, § 50/HB 142; Ga. L. 2012, p. 59, § 2/SB 113.)

The 2011 amendment, effective May 13, 2011, part of an Act to revise, modernize, and correct the Code, in paragraph (4), revised punctuation in the first sentence of the introductory paragraph, and substituted "authorized under Part 1 of Article 1 of Chapter 3 of Title 46, the" for "authorized under the" near the end of subparagraph (4)(M).

The 2012 amendment, effective April 12, 2012, in paragraph (6), deleted "officer, employee," near the beginning, substituted "state or local government" for "a government agency", substituted "state-aided institution, or any county, municipal corporation, consolidated government, or school district" for "state agency, state-aided institution, or any county, city, district, municipal corporation, municipality, municipal authority, political subdivision, school district, educational institution, incorporated town, county institution district, other incorporated district, or other public instrumentality".