90-4-1110. Duties of department -- rulemaking. (1) The department shall establish an energy performance contract program for governmental entities. The department shall:

(a) solicit, evaluate, and maintain a list of qualified energy service providers;

(b) pursuant to rules adopted by the department, disqualify and remove from the list energy service providers who do not comply with qualifications established;

(c) enter into agreements with qualified energy service providers and require qualified energy service providers to contract and provide services in accordance with this part;

(d) establish guidelines for awarding energy performance contracts;

(e) develop a standardized energy performance contract process and documents;

(f) assist governmental entities interested in pursuing energy performance contracts by providing technical assistance and educational programs and by maintaining a website;

(g) establish a process for measuring and verifying guaranteed cost savings and cost-effectiveness; and

(h) establish reporting requirements for qualified energy service providers.

(2) The department may adopt rules for:

(a) the review of investment-grade energy audits; and

(b) implementation of this part.

(3) The department may adopt rules establishing criteria for:

(a) the amount of project costs covered by guaranteed cost savings;

(b) guaranteed cost savings;

(c) measurement of energy cost savings and verification; and

(d) use in determining cost-saving measure cost-effectiveness of an unguaranteed utility unit price escalation rate determined in the rules.