House Bill 1996 (Adolph-R-Delaware) was signed into law by Gov. Rendell which provides school districts and local governments with new options for saving energy through guaranteed energy savings contracts.

The legislation allows local governments and school districts to enter into a contract with a third-party vendor that guarantees actual energy-related savings over a set period of years. The contract is used to purchase a complete package of energy improvements and services for the facility. If, in any year, the predetermined savings are not achieved, the third-party vendor is responsible for paying back the difference between the projected and actual energy savings.

Specifically the legislation--

· Expands the payback period from 10 to 15 years to allow for more energy conservation measures to be installed.

· Expands the types of energy conservation measures that can be included under these contracts, such as day lighting systems, renewable energy systems, and indoor air quality improvements.

· Clarifies that certain types of operational savings are eligible to be part of Guaranteed Energy Savings contracts, such as changes to more favorable rate schedules, and load shifting programs to reduce peak demand.

7/23/2004