PARRIS N. GLENDENING, Governor

Ch. 69

(3) (i) Before approval of an energy performance contract, the Board:

1. shall ensure that the projected annual energy savings
attributable to the project will exceed the projected annual payments to the contractor
under the contract; AND

2. BASED ON THE REVIEW OF THE MARYLAND ENERGY
ADMINISTRATION, SHALL DETERMINE WHETHER THE PROPOSED ENERGY
TECHNOLOGY IS APPROPRIATE FOR THE TIME PERIOD PROVIDED IN THE
CONTRACT.

(ii) 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.

(iii) Any guarantees required under subparagraph (ii) 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
October 1, 1997.

Approved April 8, 1997.

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