2023 Laws of Puerto Rico › TITLE THREE - Executive (§§ 1 — 9311) › Chapter 109 - Energy Savings Performance Contracts Act (§§ 8961 — 8982) › Subchapter I - Preliminary Provisions (§ 8961) › § 8961 - Definitions

For purposes of this chapter, the following terms or phrases shall have the meaning set forth below, except when clearly stated otherwise.
(1) Administration.— The Energy Affairs Administration of Puerto Rico.
(2) Savings in public utility expenses.— Any reduction in public utility expenses for a prolonged period because of any efficiency and conservation measures implemented or the services rendered by a qualified energy savings company.
(3) Savings in operating and maintenance expenses.— Measurable reductions in operating, maintenance, and replacement expenses resulting directly from the implementation of energy efficiency and electric power and water conservation measures. These savings shall be calculated against the operating and maintenance expenses established as the basis for the computation.
(4) Investment grade energy audit.— A comprehensive analysis by a qualified energy savings company selected and contracted by a government unit. This analysis includes, but is not limited to:
(a) An accurate description of the improvements to be made in the government unit.
(b) The cost estimate for the improvements to be made by the government unit.
(c) The savings projection on public utility consumption and operating and maintenance expenses of the government unit as a result of the recommended improvements.
(d) An inventory of existing equipment, including an energy efficiency measurement.
(5) Energy savings performance contract.— A contract between a government unit and a qualified energy savings company for the evaluation, recommendation, and implementation of one or more energy conservation and savings measures. An energy savings performance contract shall include any of the following criteria, obligations, and energy efficiency methods:
(a) A guaranteed energy savings contract includes, at the very least: the design of equipment by a specialist in energy efficiency and conservation methods; the installation of equipment; and, if applicable, the operation and maintenance of some of the measures implemented by the specialist in energy efficiency and conservation methods. This contract modality guarantees certain annual savings for the government unit, which shall equal or exceed the sum total of annual payments to be made by the government unit to the qualified energy savings company, including financing charges incurred during the effective term of the contract, or
(b) a shared-savings contract that shall consist of contractual terms mutually agreed to by the contracting government unit and the qualified energy savings company qualified energy savings company in connection with the payments to be made by the government unit. The sum total of these payments shall be fixed on the basis of the savings in operating and electric power expenses, in a defined agreement as to the maximum level of energy consumption during the effective term of the contract.
(6) Cost-effective.— Means any savings that a government unit shall achieve or generate as a result of the implementation of energy efficiency, energy conservation, and renewable energy alternatives, new facilities, activities, measures, or equipment, whose present worth—upon computation—is greater than the present net worth of the costs for implementing, maintaining, and operating such energy efficiency, energy conservation, and renewable energy alternatives, new facilities, activities, measures, or equipment throughout its useful life.
(7) Public building.— Any structure, building, or facility, including its electric equipment and infrastructure, which are the property of or operated by a government unit.
(8) Independent engineer.— A person who meets the following requirements:
(a) He/she holds a degree or an accreditation certificate evidencing that he/she has satisfactorily completed the requirements of this discipline in a higher education institution whose curriculum is recognized by the Council on Higher Education and the Accreditation Board for Engineering and Technology (the Board).
(b) He/she has met the requirement to enroll in the Board Register pursuant to the provisions of §§ 711 et seq. of Title 20.
(c) The Board has issued the appropriate certificate evidencing that he/she has complied with the requirements of §§ 711 et seq. of Title 20, to practice such profession.
(d) He/she has at least two (2) years of experience.
(e) He/she holds a license issued by the Board authorizing him/her to practice the profession and evidencing that he/she is enrolled in the Register.
(f) He/she shall not be an official, employee, or stockholder, or have a direct or indirect financial or other interest in a qualified energy savings company regarding the contract under his/her consideration.
(g) He/she shall not be a government employee either, and shall meet all the requirements of the Government Ethics Act if he/she held office in the public service.
(9) Energy conservation measure.— Any improvement, repair or alteration, equipment, accessory or training program to be added to or used in a building, facility, or any other system using energy, to generate electric power savings by reducing operating costs or increasing operational efficiency during the useful life cycle. All measures must meet or surpass the compliance requirements set forth in the applicable Commonwealth building codes. These measures include, but are not limited to the following:
(a) The replacement or modification of lighting control accessories, devices, and systems, including the use of natural light-harvesting systems.
(b) The insulation of structures and systems.
(c) The application of caulk and weather-strip on windows or doors; the installation of multilayer glass systems on windows or doors, or thermo-absorbent or thermo-reflective glass window and door systems; the addition of glass layers; the reduction of the exterior glass area; or the modification of window and door systems to reduce energy consumption.
(d) Automated or computer-ready control systems.
(e) The modification or replacement of ventilation or air conditioning systems, or any other system operating in government units.
(f) Energy recovery systems.
(g) Steam trap valve improvement programs to reduce operating costs.
(h) Cogeneration systems that produce steam or other kinds of energy, such as heat or electric power, mainly for use inside a building or a building complex.
(i) Renewable and alternative energy systems.
(j) Changes in operating and maintenance practices.
(k) Improvement of inside air quality to comply with applicable building code requirements.
(l) Operating programs for buildings to reduce operating costs and public utility consumption, such as electric power-related information technology administration programs and consumption tracking programs, training of personnel, and other similar activities.
(m) Personal safety measures that yield a long-term reduction of operating expenses and are consistent with the applicable Commonwealth and local codes.
(n) Personal safety measures compliant with the American with Disabilities Act of 1990, as amended (known as the ADA), that provide for the long-term reduction of operating expenses, while observing the applicable Commonwealth and municipal codes.
(o) Programs to reduce electric power costs through rate adjustments, charge transfers to reduce the demand during peak hours, and others, such as:
(i) Rate restructuring;
(ii) negotiation for lower rates, if viable;
(iii) audit of electric power bills and meters, and
(iv) reduction in sewer system rates.
(p) Services to reduce expenses relative to public utility consumption through the identification of billing errors and the optimal use of the rates being charged at present.
(q) Improvements to building infrastructure through installation, modification or remodeling that result in savings in operating and maintenance expenses and public utility services in connection with functions as identified, pursuant to the applicable Commonwealth and local codes.
(r) Alternative fuel and accessory options for the transportation system of the government unit.
(s) Any other measure as the Energy Affairs Administration may define in the future by regulation or order as an energy conservation or savings measure.
(10) Water conservation measures.— Any improvement, modification, equipment, or change in maintenance practices or a training program designed to reduce water consumption or operating costs pertaining to water conservation. Such measures shall meet or exceed the compliance requirements set forth in the applicable Commonwealth building codes. Such measures may include, but are not limited to the following:
(a) Water conservation accessories and equipment, or replacing these with waterless equipment or accessories.
(b) Landscaping measures that reduce water demand and include dew and rainwater harvesting and storage, such as landscape profiling, which includes the creation of mounds, ditches, and terraces; the use of soil additives to increase its water retention ability, including compost; equipment to harvest rainwater and equipment to use harvested water as part of a sewer system installed for water quality control purposes.
(c) Equipment for recycling and reusing water that originates from the premises or from other sources, including treated waste water.
(d) Equipment to harvest water from unconventional and alternative sources, which include air conditioning condensation or waste waters, for uses that do not require drinking water.
(e) Gauging equipment to differentiate water uses and identify water conservation opportunities or ascertain water consumption savings.
(f) Any other measure as the Energy Affairs Administration may define in the future by regulation or order as a water conservation measure.
(11) Person.— Any natural person, partnership, enterprise, association, corporation, public corporation, or entity, whether or not under the jurisdiction of the Administration.
(12) Qualified energy savings company.— A juridical person or entity with specialized knowledge and experience in the design, implementation, and installation of energy conservation measures, energy efficiency, renewable energy, and water conservation and use, that meets the qualification requirements set forth by the Administration.
(13) Reconciliation.— A comparison between projected and obtained savings by virtue of the execution of the energy savings performance contract for a fiscal year, as defined by the Government of Puerto Rico; provided that, the qualified energy savings company shall render, at the very least, a quarterly report to the Energy Affairs Administration for each year under contract.
(14) Public utilities.— Electric power, water, aqueduct and sewer systems, telephone, telecommunications, cable or satellite television, and gas supply services, as well as other like services.
(15) Government unit.— Any agency, instrumentality, office, or division of the Executive Branch, authorities or political subdivisions of the Government of Puerto Rico, or any other entity as defined or identified by the Administration.
History —Jan. 17, 2012, No. 19, § 1.4.