AN ACT relating to financing of energy savings projects.
     Amend KRS 45.760 to allow for the authorization of an energy savings project or equipment used to reduce energy costs when not listed in any branch budget bill, statutory budget memorandum, and biennial budget report if the energy savings are reasonable and sufficient to pay for fifty percent (50%) of the project or equipment costs; amend KRS 45A.345 to define capital cost avoidance; change the term "energy efficiency measure" to "energy conservation measure"; specify project costs covered by the guarantee in the definition of guaranteed energy savings contract; list responsibilities of a qualified provider in the definition of qualified provider; amend KRS 45A.352 to specify evaluation criteria for assessing a request for proposal; require that an overview of the goals and objectives of a facility be included in the request for proposal; require respondents to the request for proposal to submit a list and an estimate of the energy conservation measures, including a proposed method and cost of financing; require that the difference between proposed and the final negotiated value of the cost of the contract discounting guaranteed savings be not greater than fifteen percent (15%); provide local public agencies to obtain additional maintenance services; allow for and set procedures for local public agencies to use a request for qualifications; remove restrictions on the term of the contract; require qualified providers to submit annual reconciliation statements and to remit for any guaranteed savings short falls within thirty (30) days; allow qualified providers to bill a local public agency for any short fall remitted in a previous year that is covered by surpluses in subsequent years; provide for restrictions on the use of capital cost avoidance; provide guidelines for the chief state school officer to use in reviewing guaranteed energy savings contracts; provide that the request for proposal satisfies the requirements in KRS 162.070; amend KRS 45A.353 to provide for local public agencies to use lease purchase or bonds to finance energy conservation measures; exempt energy and operational savings from current or future debt limitations; limit capital cost avoidance to current or future debt limitations; amend KRS 56.774 to exempt engineers, architects, or persons trained in energy efficiency from the provisions of KRS 45A.800 to 45A.845; provide that remaining savings be paid directly to the Finance and Administration Cabinet to reimburse for the administration and oversight of the project; amend definition of energy conservation revenue bonds to restrict their use for financing guaranteed energy savings contracts; add definitions for "local public agency", "capital cost avoidance", and "guaranteed energy savings contract"; amend 58.605 to change the term "governmental agency" to "local public agency"; restrict the issuance of energy conservation revenue bonds to the financing of a guaranteed energy savings contract; provide that energy conservation measures comply with provisions of KRS 45A.345, 45A.352 and 45A.353; require that the term of the bonds be coterminous with the term of the guaranteed energy savings contract; prohibits local public agency from entering into a guaranteed energy savings contract if the total cost of the energy conservation measures exceeds the energy savings, operational savings, and capital cost avoidance; provide restrictions for the use of capital cost avoidance; amend KRS 58.610 to provide criteria for the chief state school officer to consider a guaranteed energy savings project; add conforming language; amend KRS 157.420 to allow districts to use capital outlay funds for guaranteed energy savings contracts and restrict the type of energy conservation measures that they can be expended for; amend KRS 157.440 to allow districts to contribute equalization funds to pay for energy conservation measures under guaranteed energy savings contracts and provide guidelines for how funds can be expended; repeal KRS 58.615.

     Feb 18-introduced in House
     Feb 19-to State Government (H)
     Feb 27-posted in committee
     Mar 3-reported favorably, 1st reading, to Calendar
     Mar 4-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for March 5, 1998
     Mar 5-floor amendments (1) and (2) filed
     Mar 9-3rd reading, passed 94-0 with floor amendments (1) and (2)
     Mar 10-received in Senate
     Mar 11-to Agriculture and Natural Resources (S)
     Mar 23-reported favorably, 1st reading, to Consent Calendar
     Mar 24-2nd reading, to Rules
     Mar 25-posted for passage in the Consent Orders of the Day for March 26, 1998
     Mar 26-3rd reading, passed 36-0; received in House; enrolled, signed by each presiding officer
     Mar 27-delivered to Governor
     Apr 7-signed by Governor