STATEMENT OF PURPOSE

The purpose of this Regulation is to provide Government Units with a standardized process for the development, implementation, measurement and verification of ESPC Projects by defining roles and responsibilities, formalizing process stages and providing standard contract documents. Project goals include: (i) reduction of energy use government owned or operated buildings; (ii) market transformation to establish performance contracting as a standard and accepted tool for implementing energy-saving projects; (iii) comprehensive project development in order to achieve 1| Page Energy Savings Performance Contract Program Amended Regulation annual energy savings of at least thirty percent (30%) or more across all buildings; (iv) infrastructure improvements completed through reallocation of utility costs in order to avoid use of scarce capital dollars (capital avoidance); and (v) provide streamlined pre-approved approaches to help decision makers more effectively follow through with performance contracting projects to ensure success. Strict compliance with the parameters set-forth in this Regulation will result in the elimination of risks incidental to ESPCs and will protect the Government Unit from any potential contractual default.