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     1-33B-1.   Definition of terms. Terms used in this chapter mean:
             (1)      "Cost-effective" or "cost-effectiveness," that the sum of guaranteed cost savings are equal to or exceed any financing repayment obligation each year of a finance term;
             (2)      "Cost-saving measure," a cost-effective improvement, repair, or alteration of equipment fixtures, or furnishings added to or used in a facility that is designed to reduce energy consumption, water consumption, or operation and maintenance costs. The term also includes vehicle acquisitions, changes to utility rate or tariff schedules, or fuel source changes that result in costs savings;
             (3)      "Energy performance contract," a contract between a governmental unit and a qualified energy service provider for evaluation, recommendation, and implementation of one or more cost-saving measures, evaluation of cost-effectiveness, and guaranteed cost savings;
             (4)      "Finance term," the length of time for repayment of funds borrowed for an energy performance contract;
             (5)      "Governmental unit," state government or any political subdivision of the state;
             (6)      "Guarantee period," the period of time from the effective date of a contract until guaranteed cost savings are achieved;
             (7)      "Operation and maintenance cost savings," a measurable decrease in operation and maintenance costs as a direct result of cost-saving measures, calculated using baseline operation and maintenance costs. The term does not include the shifting of personnel costs or similar short-term cost savings that cannot be definitively measured;
             (8)      "Qualified energy service provider" or "provider," a person, business, or state agency with experience in the design, implementation, or installation of cost saving measures, who can demonstrate the financial capabilities of completing the obligations stipulated to in an energy performance contract;
             (9)      "Utility cost savings," expenses for utilities that are eliminated or avoided on a long-term basis as a result of equipment installed or modified, or services performed by a qualified energy service provider. The term includes expenses for natural gas, propane or similar fuels, electricity, water, waste water, and waste disposal.

Source: SL 1992, ch 14, § 1; SL 2016, ch 14, § 1.

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