PETITION OF:

SECTION 1. Section 43F1/2 of Chapter 7 of the General Laws, as appearing in the 1998 Official Edition, is hereby amended by adding the following seven new sections:—
“Guaranteed energy savings contract,” means a contract for the evaluation and recommendations of energy conservation measurers and for implementation of one or more of these measures. The contract shall provide that all payments except obligations on termination of the contract before its expiration are to be made over time and the savings are guaranteed to the extent necessary to make payments for the systems.

SECTION 2. A local public agency may enter into a guaranteed energy savings contract for innovative solutions for energy efficient measurers. The local public agency shall submit a request for proposals. The request for proposals shall include the following:—
(a) The name and address of the government unit;
(b) The name, address, title and phone number of a contact person;
(c) Notice indicating that the local public agency is requesting qualified providers to propose energy efficiency measurers through a guaranteed energy savings contract;
(d) The evaluation criteria for assessing the proposals;
(e) The date, time, and place where proposals must be received; and
(f) Any other stipulations and clarifications the local agency may require.

SECTION 3. The local public agency shall select the provider best qualified to meet its needs. The local public agency shall provide public notice of the meeting at which it proposes to award a guaranteed energy savings contract, the name of the parties to proposed contract, and the purpose of the contract. The public notice shall be made at least ten (10) days prior to the meeting. After reviewing the proposals, a local public agency may enter into a guaranteed energy savings contract with a qualified provider if it finds that the amount it would spend on the energy efficiency measurers recommended in the proposal would not exceed the amount to be saved in either energy or operational costs, or both, with a ten (10) year period from the date of the installation, if the recommendations in the proposal are followed.

SECTION 4. The guaranteed energy savings contract shall include a written guarantee of the qualified provider that either the energy or operational cost savings, or both, will meet or exceed the costs of the energy efficiency measurers within ten (10) years. The qualified provider shall reimburse the local public agency for any shortfall in guaranteed energy savings projected in the contract. A qualified provider shall provide a sufficient bond to the local public agency for the installation and the faithful performance of all the measures included in the contract. The guaranteed energy savings contract may provide for payments over a period of time not to exceed ten (10) years.

SECTION 5. The guaranteed energy savings contracts may extend beyond the fiscal year in which they become effective. The local public agency shall include in its annual budget and appropriations act, for each subsequent fiscal year, any accounts payable under the guaranteed energy savings contract, the qualified provider shall pay the difference as provided for in section 3 of this act.

SECTION 6. The local public agency shall document the operational and energy cost savings specified in the guaranteed energy savings contract and designate and appropriate that amount for annual payment of the contract. If the annual energy and operational savings are less than projected under the guaranteed energy savings contract, the qualified provider shall pay the difference as provided in Section 3 of this act.

SECTION 7. Notwithstanding any other provisions of law to the contrary, local public agency may enter into a lease-purchase agreement with the qualified provider for the purchase and installation of energy efficiency measures for its buildings, subject to the local public agency’s compliance with all other laws regarding approval of plans for additions, alterations, or renovations of its buildings.