§ 19-11-1206 - Contract requirements. - Arkansas Statutes

19-11-1206. Contract requirements.

(a) A guaranteed energy cost savings contract shall include the properly state-licensed qualified provider's guarantee that:

(1) The energy and operational cost savings to be realized over the term of the guaranteed energy cost savings contract shall meet or exceed the costs of the energy cost savings measures;

(2) The payback period for heating, ventilation, and air conditioning systems shall be based on the equipment capacity and efficiency as certified by the Air-Conditioning and Refrigeration Institute; and

(3) If the annual energy or operational cost savings fail to meet or exceed the annual costs of the energy cost savings measure as required by the guaranteed energy cost savings contract, the qualified provider shall reimburse the state agency for any shortfall of guaranteed energy cost savings on an annual basis.

(b) The guaranteed energy cost savings contract may not have a term beyond twenty (20) years.

(c) Before entering into a guaranteed energy cost savings contract, the state agency shall require the qualified provider to file with the state agency a bid bond, performance bond, or similar assurance as provided under 19-11-235.