Bill > HB1582

This bill amends existing Mississippi law to exclude certain "facilities performance contracts" entered into by community colleges from the general requirement that energy efficiency projects must have a "simple payback period" of no more than twenty years, meaning the time it takes for the savings generated by the project to equal its initial cost. Instead, these specific contracts, which can include long-term operation, maintenance, repair, replacement, and management services directly related to guaranteed savings, will have contract terms that can extend up to the useful life of the improvements or services, as determined by the community college's governing board. These facilities performance contracts must include a written guarantee of cost savings, an annual reconciliation of guaranteed versus actual savings, and measurement and verification procedures consistent with industry standards. The procurement process for these contracts can use a qualifications-based or best-value selection process, and they are not subject to competitive bidding requirements for construction contracts. Participating community colleges will be required to submit annual reports to the Mississippi Community College Board and the Legislature detailing contract scope, term, guaranteed versus realized savings, capital expenditures avoided, and facility condition outcomes. This new provision for facilities performance contracts will be repealed on July 1, 2035, and the overall section of law governing these types of contracts will also be repealed on July 1, 2035, instead of the previously scheduled date of July 1, 2028.

Education, Transportation and Infrastructure

https://billstatus.ls.state.ms.us/2026/pdf/history/HB/HB1582.xml