Effective legislation authorizes the legitimacy for public sector to enter into a guaranteed energy savings performance contract (GESPC). It also protects the state's interest and provides program participants clarity in specific areas such as the savings guarantee, retention of savings, empowerment/who can use it, capital infusion, eligible financing period, measurement and verification and reporting requirements.

The legislature has the power to set agenda priorities and use their offices to stimulate public debate about important state issues. The legislature can codify best practices to eliminate procurement/contracting barriers for state and local governments and establish energy performance contracting as an approved way to procure energy services.

Following is ESC's recommendations in support of this GESPC best practice area:

  • Model Legislation
    Examples are provided for different types of legislation that are required to provide legislative authority for an GESPC program. Explanations are provided as to why particular provisions are essential for clear authorization of GESPC requirements. It is acknowledged that each state and territory is different and therefore the parochial needs of each must prevail.
    Model Energy Performance Contracting (EPC) Legislation (Word Version)