(a) Notwithstanding any other provision of law, a public agency may enter into an energy service contract and any necessarily related facility ground lease on terms that its governing body determines are in the best interests of the public agency if the determination is made at a regularly scheduled public hearing, public notice of which is given at least two weeks in advance, and if the governing body finds:

(1) That the anticipated cost to the public agency for thermal or electrical energy or conservation services provided by the energy conservation facility under the contract will be less than the anticipated marginal cost to the public agency of thermal, electrical, or other energy that would have been consumed by the public agency in the absence of those purchases.

Terms Used In California Government Code 4217.12

  • Conservation services: means the electrical, thermal, or other energy savings resulting from conservation measures, which shall be treated as a supply of such energy. See California Government Code 4217.11
  • Contract: A legal written agreement that becomes binding when signed.
  • Energy conservation facility: means alternate energy equipment, cogeneration equipment, or conservation measures located in public buildings or on land owned by public agencies. See California Government Code 4217.11
  • Energy service contract: means a contract entered into by a public agency with any person, pursuant to which the person will provide electrical or thermal energy or conservation services to a public agency from an energy conservation facility. See California Government Code 4217.11
  • Facility ground lease: means a lease of all, or any portion of, land or a public building owned by, or under lease to, a public agency to a person in conjunction with an energy service contract or a facility financing contract. See California Government Code 4217.11
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Public agency: means the state, a county, city and county, city, district, community college district, school district, joint powers authority or other entity designated or created by a political subdivision relating to energy development projects, and any other political subdivision or public corporation in the state. See California Government Code 4217.11
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.

(2) That the difference, if any, between the fair rental value for the real property subject to the facility ground lease and the agreed rent, is anticipated to be offset by below-market energy purchases or other benefits provided under the energy service contract.

(b) State agency heads may make these findings without holding a public hearing.

(Amended by Stats. 1998, Ch. 328, Sec. 7. Effective August 21, 1998.)

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