Present law authorizes political subdivisions to enter into performance-based energy efficiency contracts for services and equipment.

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Present law requires political subdivision to issue requests for proposals to solicit project bids and requires certain information to be included in the bids.

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Proposed law changes the method of procurement to requests for qualifications to allow political subdivisions to select a vendor before requiring proposers to complete full project proposals.

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Present law requires performance-based energy efficiency contracts to be based on annual energy cost savings.

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Proposed law changes the requirements of how savings are determined.

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Present law requires political subdivisions to select an energy efficiency independent third-party evaluation consultant to review and evaluate submitted proposals.

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Proposed law changes the requirement from selecting to engaging an energy efficiency independent third-party evaluation consultant unless the total proposed project cost is less than $500,000 in which case the political subdivision may opt out due to administrative or financial constraints.

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Proposed law authorizes political subdivisions to jointly engage an energy efficiency independent third-party evaluation consultant.

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Proposed law authorizes political subdivisions to require an investment grade audit prior to executing a contract and provides for payments for the audits.

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Proposed law authorizes the use of different structures of performance-based energy efficiency contracts.

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Effective August 1, 2025.