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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>82924</law_id><section_number>45.2-1702</section_number><catch_line> Definitions</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>62.1-199</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="45.2">Mines, Minerals, and Energy</unit><unit label="subtitle" level="2" order_by="1" identifier="V">Other Sources of Energy; Energy Policy</unit><unit label="chapter" level="3" order_by="1" identifier="17">Other Sources of Energy Generally; Energy Policy</unit><unit label="article" level="4" order_by="1" identifier="2">Energy and Operational Efficiency Performance-Based Contracting Act</unit></structure><text>
						<section><p>As used in this article:
		&#x201C;<span class="dictionary">Contracting entity</span>&#x201D; means any public body as defined in &#xA7;&#xA0;<a class="law" title="Definitions" href="/2.2-4301/">2.2-4301</a>.
		&#x201C;<span class="dictionary">Energy conservation measures</span>&#x201D; means the use of methods and techniques, the application of knowledge, or the installation of devices, including an alteration or betterment of an existing facility, that reduces energy consumption or operating costs and includes:</p></section>
						<section id="1"><p><span class="prefix-number">1.</span> Insulation of the facility structure and systems within the facility. <a id="paragraph-297214" class="section-permalink" href="https://vacode.org/45.2-1702/#1"><i class="fa fa-link"/></a></p></section>
						<section id="2"><p><span class="prefix-number">2.</span> Installation of storm windows and doors, caulking or weatherstripping, multiglazed windows and doors, heat-absorbing or heat-reflective glazed and coated window and door systems, or additional glazing; reductions in glass area; or the completion of other window and door system modifications that reduce energy consumption. <a id="paragraph-297215" class="section-permalink" href="https://vacode.org/45.2-1702/#2"><i class="fa fa-link"/></a></p></section>
						<section id="3"><p><span class="prefix-number">3.</span> Installation of automatic energy control systems, including related software, or required network communication wiring, computer devices, wiring, and support services, or the design and implementation of major building technology infrastructure with operational improvements. <a id="paragraph-297216" class="section-permalink" href="https://vacode.org/45.2-1702/#3"><i class="fa fa-link"/></a></p></section>
						<section id="4"><p><span class="prefix-number">4.</span> Modification or replacement of heating, ventilating, or air-conditioning systems. <a id="paragraph-297217" class="section-permalink" href="https://vacode.org/45.2-1702/#4"><i class="fa fa-link"/></a></p></section>
						<section id="5"><p><span class="prefix-number">5.</span> Replacement or modification of lighting fixtures to increase the energy efficiency of the lighting system. Such replacement or modification shall, at a minimum, conform to the applicable provisions of the Uniform Statewide Building Code (&#xA7; <a class="law" title="Definitions" href="/36-97/">36-97</a> et seq.). <a id="paragraph-297218" class="section-permalink" href="https://vacode.org/45.2-1702/#5"><i class="fa fa-link"/></a></p></section>
						<section id="6"><p><span class="prefix-number">6.</span> Installation of energy recovery systems. <a id="paragraph-297219" class="section-permalink" href="https://vacode.org/45.2-1702/#6"><i class="fa fa-link"/></a></p></section>
						<section id="7"><p><span class="prefix-number">7.</span> Installation of cogeneration systems that produce, in addition to electricity, steam or another form of energy, such as heat, for use primarily within a facility or complex of facilities. <a id="paragraph-297220" class="section-permalink" href="https://vacode.org/45.2-1702/#7"><i class="fa fa-link"/></a></p></section>
						<section id="8"><p><span class="prefix-number">8.</span> Installation of <span class="dictionary">energy conservation measures</span> that provide long-term operating cost reductions and significantly reduce the BTUs consumed. <a id="paragraph-297221" class="section-permalink" href="https://vacode.org/45.2-1702/#8"><i class="fa fa-link"/></a></p></section>
						<section id="9"><p><span class="prefix-number">9.</span> Installation of building technology infrastructure measures that provide long-term operating cost reductions and reduce related operational costs. <a id="paragraph-297222" class="section-permalink" href="https://vacode.org/45.2-1702/#9"><i class="fa fa-link"/></a></p></section>
						<section id="10"><p><span class="prefix-number">10.</span> Installation of an energy system, such as solar, biomass, or wind. <a id="paragraph-297223" class="section-permalink" href="https://vacode.org/45.2-1702/#10"><i class="fa fa-link"/></a></p></section>
						<section id="11"><p><span class="prefix-number">11.</span> Installation of devices that reduce water consumption or sewer charges.
			&#x201C;<span class="dictionary">Energy cost savings</span>&#x201D; means a measured reduction in fuel, energy, or operation and maintenance costs created from the implementation of one or more <span class="dictionary">energy conservation measures</span> when compared with an established baseline for previous fuel, energy, or operation and maintenance costs. When calculating &#x201C;<span class="dictionary">energy cost savings</span>&#x201D; attributable to the services performed or equipment installed pursuant to a performance-based efficiency contract, <span class="dictionary">maintenance savings</span> shall be included.
			&#x201C;<span class="dictionary">Energy performance-based contract</span>&#x201D; means a contract for the evaluation, recommendation, and implementation of <span class="dictionary">energy conservation measures</span> that includes, at a minimum: <a id="paragraph-297224" class="section-permalink" href="https://vacode.org/45.2-1702/#11"><i class="fa fa-link"/></a></p></section>
						<section id="1"><p><span class="prefix-number">1.</span> The design and installation of equipment to implement one or more such measures and, if applicable, the operation and maintenance of such measures. <a id="paragraph-297225" class="section-permalink" href="https://vacode.org/45.2-1702/#1"><i class="fa fa-link"/></a></p></section>
						<section id="2"><p><span class="prefix-number">2.</span> The amount of any actual annual savings. Such amount shall meet or exceed the total annual contract payments made by the <span class="dictionary">contracting entity</span> for such contract. <a id="paragraph-297226" class="section-permalink" href="https://vacode.org/45.2-1702/#2"><i class="fa fa-link"/></a></p></section>
						<section id="3"><p><span class="prefix-number">3.</span> The financing charges to be incurred by the <span class="dictionary">contracting entity</span> for such contract.
			&#x201C;<span class="dictionary">Maintenance savings</span>&#x201D; means the operating expenses eliminated and future capital replacement expenditures avoided as a result of new equipment installed or services performed by the performance contractor.
			&#x201C;<span class="dictionary">Performance guarantee bond</span>&#x201D; means the performance bond provided by the energy performance contractor for each year of the energy program in an amount equal to, but no greater than, the guaranteed measured and verifiable annual savings set forth in the program. <a id="paragraph-297227" class="section-permalink" href="https://vacode.org/45.2-1702/#3"><i class="fa fa-link"/></a></p></section></text><history>2001, c. 219, &#xA7; 11-34.2; 2021, Sp. Sess. I, c. 387.</history><metadata></metadata></law>
