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Statutes Text

Article - State Finance and Procurement


    (a)    (1)    (i)    A unit shall consult with the Department of General Services during the development phase of a project that will require an energy performance contract.

            (ii)    Before issuing a request for proposals for an energy performance contract, a unit shall consult with the Department of General Services and the Chief Procurement Officer.

        (2)    The Department of General Services shall review the proposed request to ensure that it meets with the State energy standards and preserves the State’s flexibility to investigate and use economically justifiable new technologies.

        (3)    A unit pursuing an energy contract must receive final approval from the Department of General Services before submitting the proposed contract to the Board of Public Works for approval.

    (b)    (1)    Notwithstanding any other provision of law and subject to the approval and control of the Board of Public Works and the Chief Procurement Officer, a unit of State government is authorized to enter into energy performance contracts of up to 15 years’ duration.

        (2)    The Treasurer may enter into a capital lease to finance energy performance contracts as provided in Title 8, Subtitle 4 of this article.

        (3)    The payments and the total contract amount due under an energy performance contract or, in the case of a capital lease used to finance energy performance contracts, the capital lease payments may not exceed the actual energy savings realized as a result of the contract’s performance.

        (4)    (i)    Before approval of an energy performance contract, the Board:

                1.    shall ensure that the projected annual energy savings attributable to the project will exceed the projected annual capital lease payments or payments to the contractor under the contract; and

                2.    based on the review of the Department of General Services, shall determine whether the proposed energy technology is appropriate for the time period provided in the contract.

            (ii)    The Board may:

                1.    authorize the use of incentive contracts, including contracts that guarantee energy savings performance; and

                2.    require prospective contractors to furnish appropriate guarantees to ensure that projected savings are realized.

            (iii)    Any guarantees required under subparagraph (ii) of this paragraph may include a requirement that the contractor furnish a bond or other assurance to the State in an appropriate amount to guarantee projected performance and that the bond or other assurance be structured so that a failure to meet guaranteed performance savings will forfeit a portion of the bond or other assurance to match the shortfall in energy savings.

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