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SECTION D. PROPOSED LEGISLATION OF CONCERN (Continued) <br /> <br />S94/HI00 " Energy Contracts <br /> <br />Manager Recommendation: Support <br /> <br />S94/H100 <br /> <br />MTo authorize units of local government, local school boards, and community <br />colleges to enter into guaranteed energy savings contracts in order to finance <br />energy conservation measures ia local public facilities." Sen. Clark Plexlco <br />(Henderson) and Rep. Pete Bo~anan (Alamance). These bills, referred to the <br />Senate Committee on Local Government and Regional Affairs and the House <br />Environment Committee, would authorize local governments to enter into <br />guaranteed energy sa~ings contracts, a contract for the evaluation, <br />recommendation, or implementation of energy conservation measures, including <br />the design and installatlon of equipment or the repair or replacement of existing <br />equipment. Local governments could enter into such a contract with a qualified <br />provider if the term of the contract does not exceed ten years and the unit finds <br />that the energy savings that result will equal or exceed the total contract cost. <br />The contract would have to stipulate that it does not constitute a liability or debt <br />of the unit or a pledge of its faith and credit. A local government could finance <br />a contract by installment or lease-purchase, and could expend funds designated <br />for operating or capital expenditures for such contracts and prohibits state <br />appropriations from being reduced as a result of any energy saxqngs that result. <br />The bills would require a local government to publish notice of the meeting at <br />which it proposes to award the contract and would require a qualified provider <br />to provide a performance bond of 100% of the contract amount. The bill would <br />provide for solicitation and awarding of such contracts, and require proposals be <br />opened a publlc meeting at which the contents of the proposal are announced <br />and recorded into the governing board's minutes. The board would have to <br />select the qualified provider that it determines best meets the needs of the unit. <br /> <br />I)-6 <br /> <br /> <br />