56.770 Definitions for KRS 56.770 to 56.784.

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Page 1 of 3 56.770 Definitions for KRS 56.770 to 56.784. As used in KRS 56.770 to 56.784, unless the context requires otherwise: <br>(1) &quot;Aggregate simple payback period&quot; means the simple payback period of a set of energy efficiency measures taken together for a building; (2) &quot;Building&quot; means all contiguous land, structures, appurtenances, and improvements that use energy; (3) &quot;Cabinet&quot; means the Finance and Administration Cabinet; <br>(4) &quot;Energy audit&quot; means examination of a building's energy-using systems, energy consumption and costs, occupancy patterns, and operation and maintenance <br>procedures; (5) &quot;Energy efficiency measure&quot; means any construction, improvement, repair, alteration, or betterment of a building that is intended to reduce energy <br>consumption; or any equipment, fixture, or furnishing to be added to or used in a <br>building that will be a cost-effective energy-related project that is intended to reduce <br>energy consumption; (6) &quot;Guaranteed energy savings performance contract&quot; means an agreement for the provision of energy services or equipment, including energy efficiency measures, <br>energy conservation measures and alternate energy technologies for state <br>government buildings, in which a person agrees to design, construct, install, <br>maintain, operate, or manage energy systems or equipment to improve energy <br>efficiency of, or produce energy in connection with, a state government building. <br>Payments for a guaranteed energy savings performance contract shall be made from <br>measured and verified savings generated from implementation of the energy <br>efficiency measures financed by the contract. The term of a guaranteed energy <br>savings performance contract shall not exceed the life of the energy savings <br>generated from implementation of the energy efficiency measures financed by the <br>contract. If the measured and verified savings are not sufficient to pay the financial <br>obligations under the contract, the contractor is liable for the contract payments; (7) &quot;High-performance building&quot; means a public building that is designed, constructed, and capable of being operated in a manner that: (a) Increases environmental performance and economic value over time; <br>(b) Safeguards the health of occupants; <br>(c) Enhances satisfaction and productivity of workers through energy- efficient systems; (d) Incorporates environmentally friendly materials and products; and <br>(e) Reduces waste; (8) &quot;High-performance building standards&quot; means a set of standards developed by the cabinet pursuant to KRS 56.777; (9) &quot;Engineering analysis&quot; means a detailed cost-benefit analysis of energy efficiency investments including a review of potential cost savings through operation and <br>maintenance changes; Page 2 of 3 (10) &quot;Life-cycle cost analysis&quot; means a method for estimating the total cost of an energy- using component or building over its useful life, including cost factors such as <br>purchase price or construction, renovation, or leasing costs, energy use, <br>maintenance, interest, and inflation; (11) &quot;Low cost/no cost energy conservation measures&quot; means those energy saving practices and energy efficiency measures, usually involving operation and <br>maintenance practices, that can be accomplished by existing personnel within <br>existing operating budgets; (12) &quot;Simple payback period&quot; means the number of years it takes to pay back, from estimated savings, the initial cost of an energy efficiency measure with the simple <br>payback period equal to the initial cost divided by the estimated annual savings; (13) &quot;Savings&quot; means the reduction in expenditures, excluding any state government and post-secondary education personnel expenditures, that are measured and verified, <br>including but not limited to energy usage, operating costs, and capital cost <br>avoidance that occur as a result of the implementation of energy efficiency <br>measures; (14) &quot;Capital cost avoidance&quot; means savings generated when expenditures of appropriated capital construction or appropriated capital outlay funds are avoided <br>because the budgeted capital improvements or items of equipment are contained <br>within the energy efficiency measures provided by a guaranteed energy savings <br>performance contract; (15) &quot;Operating costs&quot; means expenditures associated with operating and maintaining a properly functioning building and its systems including but not limited to the <br>heating, ventilation, cooling, lighting, plumbing, water heating, electrical, and <br>laundry systems and their controls; (16) &quot;Public building&quot; has the same meaning as in KRS 318.010; <br>(17) &quot;ENERGY STAR&quot; means the voluntary program administered by the United States Environmental Protection Agency and the United States Department of Energy that <br>is designed to protect the environment through the promotion of energy-efficient <br>products and practices; (18) &quot;Green Globes rating system&quot; means the on-line environmental assessment tool developed by the Green Building Initiative as of December, 2004, that allows <br>designers, property owners, and managers to evaluate and rate buildings against best <br>sustainable building design practices and integrate principles of sustainable <br>architecture at every stage of project delivery in order to design and construct <br>buildings that will be energy-efficient and resource-efficient, achieve operational <br>savings, and provide healthier environments in which to live and work; and (19) &quot;LEED&quot; means the building rating systems developed on or after January 1, 2005, by the United States Green Building Council that allow designers, property owners, <br>and managers to evaluate and rate buildings against best sustainable building design <br>and practices and to integrate principles of sustainable architecture at every stage of <br>project delivery in order to design and construct buildings that will be energy- Page 3 of 3 efficient and resource-efficient using a whole-building approach in five (5) key <br>areas of human and environmental health: <br>(a) Sustainable site development; <br>(b) Water savings; <br>(c) Energy efficiency; <br>(d) Material selection; and <br>(e) Environmental quality. Effective: February 25, 2010 <br>History: Repealed and reenacted 2010 Ky. Acts ch. 5, sec. 1, effective February 25, 2010. -- Amended 2008 Ky. Acts ch. 139, sec. 1, effective July 15, 2008. -- Amended <br>2007 (2d Extra. Sess.) Ky. Acts ch. 1, sec. 29, effective August 30, 2007. -- <br>Amended 2002 Ky. Acts ch. 35, sec. 1, effective July 15, 2002. -- Created 1996 Ky. <br>Acts ch. 223, sec. 1, effective July 15, 1996. Legislative Research Commission Note (2/25/2010). 2010 Ky. Acts ch. 5, sec. 28, provides that the repeal and reenactment of this section in that Act &quot;shall apply <br>retroactively to July 15, 2008.&quot;