Senate Bill No. 212, introduced by Senator McMath, aims to amend and reenact various provisions related to performance-based energy efficiency contracts for political subdivisions in Louisiana. The bill modifies the procurement process by allowing political subdivisions to issue requests for qualifications instead of requests for proposals, enabling them to select a vendor before requiring detailed project proposals. Additionally, it changes how energy savings are calculated, shifting from annual savings to total savings over the contract term. The bill also stipulates that political subdivisions must engage an independent third-party evaluation consultant unless the project cost is below $500,000, in which case they may opt out due to administrative or financial constraints.

Furthermore, the bill introduces new provisions that allow political subdivisions to jointly engage an independent third-party evaluation consultant and require an investment grade audit before executing a contract, with options for reimbursement of audit costs. It also outlines various structures for performance-based energy efficiency contracts, including guaranteed-savings and shared-savings contracts, as well as subscription-based agreements. The bill repeals certain existing provisions that are no longer applicable, streamlining the process for energy efficiency contracts. The proposed changes are set to take effect on August 1, 2025.

Statutes affected:
SB212 Original: 33:1(B)(1), 33:2(A), 33:2(G)