How does performance contracting work in my state?

Performance Contracting Legislation By State

Performance contracting, also known as energy savings performance contracting or guaranteed energy savings contracting, is a public construction procurement and financing arrangement commonly used for implementing energy efficiency-focused infrastructure improvement projects. It allows government entities to finance such projects with energy savings, which are guaranteed over a specific period of time by the qualified provider installing the energy-focused improvements.

As performance contracting is defined by state statute, the specific regulations and policies vary by state and, potentially, by type of government entity. To help cut through the clutter, we’ve compiled a quick list of performance contracting legislation for the states we work in.

If you’re interested in learning more about how performance contracting could benefit you, reach out to us today, and our team of experts can help guide you through the process.

Alabama

• Who can use it:
  • State agencies, local governments (cities and counties), school districts, community colleges, and universities: Code of Alabama § 41-16-140 through 144
• Helpful links:
  • Alabama Energy Savings Performance Contracting Guide
  • Performance Contracting Fact Sheet

Arkansas

• Who can use it:
  • Municipalities and counties: AR Code § 14-164-804 through 821
  • State agencies and institutions of higher education: AR Code § 19-11-1201 through 1208
  • School districts: AR Code § 6-20-405
• Helpful links:
  • Arkansas Energy Performance Contracting Office (AEPC) offers assistance to public agencies implementing performance contracts

Colorado

• Who can use it:
  • School Districts and Local Governments: 29-12.5-101
  • State Agencies: 24-30-2001
• Helpful links:
  • Colorado Energy Office’s Performance Contracting Resources

Florida

• Who can use it:
  • State agencies, municipalities (cities and counties), school districts, higher education (universities, colleges, and technical colleges): Statute 489.145

Georgia

• Who can use it:
  • Public schools (K-12), local governments (cities and counties), public higher education, state agencies: C.G.A. 50-37-1

Illinois

• Who can use it:
  • Public school districts: 105 ILCS 5/19b
  • Counties, townships, municipalities, or park districts: 50 ILCS 515/1
  • Public universities: 110 ILCS 62/1

Indiana

• Who can use it:
  • School districts, municipalities (cities and counties libraries, and municipal water or wastewater utilities: Indiana Code 36-1-12.5
  • State agencies: Indiana Code 4-13.6-8
  • State educational institutions: Indiana Code 21-33-4

Kentucky

• Who can use it:
  • Cities, counties, urban counties, consolidated local governments, school districts, and special districts: 45A.352
  • State agencies: KRS 56.770 to 56.784
• Helpful links:
  • KPC Price Contract: A Method That Works

Missouri

• Who can use it:
  • State agencies, colleges, universities, technical schools, counties, municipalities, public school districts: State Legislation 8.231
• Helpful links:
  • Performance Contracting in Missouri: A Guide for K-12 Schools

Tennessee

• Who can use it:
  • Counties, cities, metropolitan governments, towns, and utility districts: State Legislation 12-4-118

Texas

• Who can use it:

• • Public Schools (K-12): Title 2, Education Code §44.901
  • Local Governments (Cities & Counties): Title 9, Local Government Code §302
  • Public Higher Education:  Title 3, Education Code §51.927
  • State Agencies: Title 10, Texas Government Code §2166.406
  • Public hospitals fall within the State or Local jurisdiction of the above codes
• Helpful links:
  • How to Complete an Energy Savings Performance Contract in Texas