90-4-1110. Duties and authority of department. (1) The department shall establish an energy performance contract program for governmental entities. The department shall:

(a) solicit, evaluate, and maintain a list of qualified energy service providers;

(b) develop a process to disqualify and remove from the list energy service providers who do not comply with qualifications established;

(c) enter into agreements with qualified energy service providers to provide services in accordance with this part;

(d) establish reporting requirements for qualified energy service providers;

(e) develop a model energy performance contract process and documents; and

(f) assist governmental entities interested in pursuing energy performance contracts by providing technical assistance and educational programs and by maintaining a website.

(2) The department may develop recommended best practices for:

(a) evaluating energy performance proposals and awarding energy performance contracts;

(b) measuring and verifying guaranteed cost savings and cost-effectiveness;

(c) identifying a variety of options to determine the amount of project costs to be covered by guaranteed cost savings;

(d) calculating guaranteed cost savings;

(e) measuring energy cost savings and verification;

(f) determining the cost-effectiveness of the energy performance contract when using an unguaranteed utility unit price escalation rate; and

(g) determining an unguaranteed utility unit price escalation rate.

(3) The department may adopt rules for the implementation of this part.