Kentucky Revised Statutes Title VII. Public Property and Public Printing § 58.605.Energy conservation revenue bonds for energy conservation measures; procedure

(a) Any energy conservation measure, financed through bonds, shall comply with the provisions set forth in KRS 45A.345, 45A.352, and 45A.353;

(b) The term of the bonds shall run coterminous with the term of guaranteed energy savings contract;

(c) A local public agency shall not enter into a guaranteed energy savings contract where the total cost of the energy conservation measures exceeds the cost of the energy savings plus the operational costs plus the capital cost avoidance that is estimated for the term of the guaranteed energy savings contract commencing from the date of the energy conservation measure's installation; and

(d) The use of capital cost avoidance shall be subject to the following restrictions:

1. The amount expended shall not exceed fifty percent (50%) of the project cost; and

2. Capital cost avoidance shall be restricted to payment for permanent equipment replacement as follows:

a. Storm windows or doors, multiglazed windows or doors, additional glazing, and reduction in glass area;

b. Replacement of heating, ventilating, or air conditioning major components or systems;

c. New lighting fixtures where required to achieve Illuminating Engineering Society of North America (IES) standards, provided the existing light fixtures shall have been determined to be obsolete and incapable of achieving IES standards; and

d. Life safety system replacements or upgrades which shall have been determined to be necessary to conform with existing state and local codes and standards.