WILLIAM DONALD SCHAEFER, Governor                           Ch. 477

(2)   THE PAYMENTS AND THE TOTAL CONTRACT AMOUNT DUE UNDER
AN ENERGY PERFORMANCE CONTRACT MAY NOT EXCEED THE ACTUAL ENERGY
SAVINGS REALIZED AS A RESULT OF THE CONTRACT'S PERFORMANCE.

(3)   BEFORE APPROVAL OF AN ENERGY PERFORMANCE CONTRACT, THE
BOARD SHALL ENSURE THAT THE PROJECTED ANNUAL ENERGY SAVINGS
ATTRIBUTABLE TO THE PROJECT WILL EXCEED THE PROJECTED ANNUAL
PAYMENTS TO THE CONTRACTOR UNDER THE CONTRACT.

(I)       THE BOARD MAY:

1.        AUTHORIZE THE USE OF INCENTIVE CONTRACTS,
INCLUDING CONTRACTS THAT GUARANTEE ENERGY SAVINGS PERFORMANCE; AND

2.         REQUIRE PROSPECTIVE CONTRACTORS TO FURNISH
APPROPRIATE GUARANTEES TO ENSURE THAT PROJECTED SAVINGS ARE
REALIZED.

(II)     ANY GUARANTEES REQUIRED UNDER SUBPARAGRAPH (I) OF
THIS PARAGRAPH MAY INCLUDE A REQUIREMENT THAT THE CONTRACTOR
FURNISH A BOND OR OTHER ASSURANCE TO THE STATE IN AN APPROPRIATE
AMOUNT TO GUARANTEE PROJECTED PERFORMANCE AND THAT THE BOND OR
OTHER ASSURANCE BE STRUCTURED SO THAT A FAILURE TO MEET GUARANTEED
PERFORMANCE SAVINGS WILL FORFEIT A PORTION OF THE BOND OR OTHER
ASSURANCE TO MATCH THE SHORTFALL IN ENERGY SAVINGS.

12-302.

THE MARYLAND ENERGY ADMINISTRATION SHALL BE RESPONSIBLE FOR
MONITORING THE STATUS OF ACTIVE ENERGY PERFORMANCE CONTRACTS AND
REPORTING THAT STATUS TO THE BOARD ANNUALLY.

12-303.

THE BOARD MAY MODIFY OR WAIVE ANY AUTHORIZATION, SOURCE
SELECTION, SOLICITATION, OR CONTRACT REQUIREMENT UNDER THIS DIVISION II
FOR AN ENERGY PERFORMANCE CONTRACT OR A CLASS OF ENERGY
PERFORMANCE CONTRACTS TO THE EXTENT THAT:

(1)      THE PURPOSES STATED IN § 11-201(A) OF THIS ARTICLE ARE
FOSTERED; AND

(2)      THE CIRCUMSTANCES OF ENERGY PERFORMANCE CONTRACTING
REQUIRE THE MODIFICATION OR WAIVER.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1993.

Approved May 27, 1993.

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