A. A governmental unit may enter into a guaranteed utility savings contract with a qualified provider to reduce energy, water or conservation-related operating costs if, after review of the utility efficiency proposal from the qualified provider, the governmental unit finds that:

(1) the amount the governmental unit would spend on the energy or water conservation measures recommended in the proposal is not likely to exceed the cumulative amount of utility cost savings and conservation-related cost savings of all energy or water conservation measures in the proposal over twenty-five years or over a period not to exceed the expected useful life of the most durable measure in the proposal, whichever period of time is less, from the date of installation if the recommendations in the proposal were followed. The normal periodic repair and replacement of components of an energy or water conservation measure that are required after the measure is installed or completed shall not be considered in the amount a governmental unit would spend on the energy or water conservation measure for purposes of this paragraph; and

(2) the qualified provider can provide a written guarantee that the utility cost savings and conservation-related cost savings will meet or exceed the costs of the conservation measures.

B. A guaranteed utility savings contract shall include:

(1) a written guarantee from the qualified provider that annual utility cost savings and conservation-related cost savings shall meet or exceed the cost of the conservation measures; and

(2) a requirement that the qualified provider maintain a direct financial relationship with the governmental unit, irrespective of the source of financing for the energy or water conservation measures to be implemented.

C. A guaranteed utility savings contract may extend beyond the fiscal year in which it becomes effective and may provide for payments over a period of time not to exceed twenty-five years or the expected useful life of the most durable energy or water conservation measure in the contract, whichever period of time is less; provided, however, only utility cost savings, conservation-related cost savings and special funds authorized pursuant to the Public Facility Energy Efficiency and Water Conservation Act or other law shall be pledged for the payments.

D. A governmental unit may enter into an installment payment contract or lease-purchase agreement for the purchase and installation of energy or water conservation measures pursuant to a guaranteed utility savings contract, but only in accordance with the provisions of the Public Facility Energy Efficiency and Water Conservation Act and Section 13-1-150 NMSA 1978.

E. A governmental unit may enter into a guaranteed utility savings contract pursuant to Section 13-1-129 NMSA 1978 in accordance with the provisions of the Public Facility Energy Efficiency and Water Conservation Act.

History: Laws 1993, ch. 231, § 3; 1997, ch. 42, § 3; 1999, ch. 257, § 1; 2001, ch. 247, § 3; 2009, ch. 138, § 2.

The 2009 amendment, effective July 1, 2009, in Subsection A(1), after "to exceed the" added "cumulative"; added the language between "cost savings" and "from the date of installation", and added the last sentence; in Subsection C, added the language between "not to exceed" and "provided, however"; and in Subsection D, at the end of the sentence, added "and Section 13-1-150 NMSA 1978".

The 2001 amendment, effective June 15, 2001, in Subsection A(1), deleted "or both" following "conservation measures" and substituted "of utility cost savings and conservation-related cost savings" for "to be saved in energy and conservation-related operational costs"; in Subsection A(2), substituted "utility cost savings and" for "energy, water or", deleted "operating" following "conservation-related" and substituted "conservation measures" for "system"; added the paragraph designation for Subsection B(1) and inserted "utility cost savings and conservation-related cost" and substituted "conservation measures; and" for "energy or water conservation measures or both"; added Subsection B(2); inserted "utility cost savings, conservation-related cost savings and"; and substituted "Public Facility Energy" for "Public Building Facility" in Subsections C, D and E.

The 1999 amendment, effective June 18, 1999, substituted "only" for "such payments shall be made only from", deleted "for that purpose" following "authorized", and inserted "shall be pledged for the payments" in Subsection C, and substituted "Public Building Energy Efficiency and Water Conservation Act" for "Public Building Energy and Water Conservation Efficiency Act" in Subsection E.

The 1997 amendment, effective June 20, 1997, substituted "utility" for "energy" throughout the section; inserted "conservation-related" throughout the section; in Subsection A, in the introductory language, inserted "water" and inserted "conservation related", in Subsection A(1), inserted "or water" and inserted "or both," inserted "water" in Subsection A(2); in Subsection B, inserted "or water" and inserted "or both"; in Subsection C, inserted "however" and inserted "and Water Conservation"; and in Subsection D, inserted "or water", inserted "or both," and inserted "and Water Conservation".