9-499.16. Energy and water savings accounts
A. The governing body of a city or town may establish an energy and water savings account that consists of a designated pool of capital investment monies to fund energy or water savings projects in public facilities. A city or town may deposit in the account monies generated from the energy or water savings projects or measures implemented in public facilities. A city or town may use monies in the energy and water savings account for payments under a contract entered into pursuant to section 34-105.
B. A city or town shall use monies deposited in an energy and water savings account as a designated pool of capital investment monies to pay for the incremental cost of energy or water savings measures in facilities that are owned by the city or town. Any contract that is entered into pursuant to this section shall contain an agreement between the qualified provider and the energy or water services company that both parties have performed a reasonable investigation to determine that the measures contemplated by the contract will result in stated energy or water savings. Contract terms may extend the period of the capital investment repayment schedule prescribed in subsection E of this section up to the term of the contract, which shall not exceed fifteen years.
C. A city or town shall use expenditures from an energy and water savings account only for the following:
1. Projects or measures pursuant to a contract pursuant to this section or section 34-105 that save energy or water in facilities that are owned by the city or town. Monies may be used pursuant to this paragraph to provide technical assistance regarding energy or water savings to cities or towns by a qualified provider, energy or water services company.
2. Payment of principal, interest, related financing costs and prepayment premiums.
D. Before the implementation of the energy or water savings measures or services, the qualified provider, energy or water services company shall compute, and the city or town shall review and approve, the estimated amount of the energy or water savings and the associated impact on energy or water costs to be achieved by the city or town on an annual and monthly basis over the term of the contract and shall include these estimates in the contract. The qualified provider and the city or town shall update the annual and monthly energy or water savings and associated cost impact estimates annually based on actual experience for the term of the contract.
E. Before the implementation of the energy or water savings measures or services, the qualified provider or financial institution, trustee or paying agent and the city or town shall jointly develop a schedule of monthly or another mutually agreed on interval of payments for the repayment of capital investment monies. The repayment schedule must result in lower energy or water costs, which shall include the total cost of all the installed energy or water savings measures for the city or town over the term of the contract, which shall not exceed fifteen years. The repayment schedule shall be included in the contract.
F. The city or town shall transfer on a monthly basis the amount of the monthly payment prescribed pursuant to subsection E of this section to the energy and water savings account from the maintenance and operation portion of the city's or town's budget to repay any unpaid balance of the capital investment previously deposited in the energy and water savings account from the qualified provider, energy or water services company plus a reasonable interest rate. For the period of time that the company's capital investment monies and reasonable interest rate remain unpaid, the qualified provider, energy or water services company shall provide a separate billing or billing component to repay the capital investment on a monthly basis, pursuant to the repayment schedule prescribed pursuant to subsection E of this section, which shall be paid by the city or town from the energy and water savings account.
G. After the balance of the qualified provider, energy or water services company's capital investment monies deposited in the energy and water savings account plus a reasonable interest rate are repaid in full by the city or town, the city or town may discontinue the deposit in the energy and water savings account of amounts that are prescribed in subsection F of this section.
H. After the capital investment monies of the qualified provider, energy or water services company plus a reasonable interest rate are repaid in full, any monies associated with an energy or water savings project remaining in the energy and water savings account may be transferred to the maintenance and operation portion of the city's or town's budget.
I. A city or town may deposit energy-related rebate or grant monies in the energy and water savings account to assist in funding energy or water savings projects. A city or town may use these rebate or grant monies to reduce the total cost of energy or water savings projects and to reduce the amount of capital investment monies received from and repaid to energy or water services companies. A city or town is not required to repay the rebate or grant monies in the manner described in subsection F of this section pursuant to the agreements with the providers of rebate or grant funds.
J. A city or town may deposit monies from other funding sources in the energy and water savings account to fund energy or water saving projects in public facilities. These monies shall be repaid in a manner consistent with this section and pursuant to the contract between the city or town and the provider of the funding.
K. This section does not impose an obligation on any energy utility, water utility, public service corporation or agricultural improvement district to invest monies or contract with any city or town.
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