Reshape Energy Savings
$1,000 Fee and audit rules reshape energy savings contracts
The bill sets a nonrefundable administrative fee for providers and adds a public-inspection report before any deal is approved. It also bars contracts from forcing a government to buy maintenance from the same company if it can handle the work another way.
North Carolina’s rewrite adds more paperwork to guaranteed energy savings contracts, from early bidding through annual reconciliation. The goal is to make savings easier to verify and contract costs easier to see.
- Adds a new legal framework for guaranteed energy savings contracts
- Requires audits, public notices and financing disclosures
- Caps contracts at 20 years and sets a 100% savings security requirement
- Creates a $1,000 administrative fee for providers
In North Carolina, public buildings could still get energy upgrades through performance contracts, but the paperwork around them would get much tighter. The Regulatory Reform Act of 2026 creates a new Part 3 of Article 3B in Chapter 143 for “Guaranteed Energy Savings Contracts,” recoding older provisions and replacing the old structure with a fresh set of rules for state and local government units.
A harder gate before the work starts
Before a government unit can enter one of these contracts, it would have to publish a request for qualifications, describe the proposed energy-conservation work and explain how bids will be judged. The proposal then has to clear a ranked review process, including a written evaluation from a qualified reviewer and, for state projects, review by the State Energy Office.
A provider would also have to produce a pre-award report showing estimated installation, maintenance, repair and debt-service costs, plus the expected drop in energy or operating expenses. The bill requires an investment-grade audit before the contract is signed, although local governments could waive that audit on contracts below $250,000.
Savings have to hold up in the real world
The bill sets a contract term cap of 20 years and requires the government unit to find that projected savings will meet or exceed the total cost. It also requires the provider to post security equal to 100% of the guaranteed savings, and it bars contracts from forcing the government to buy a maintenance agreement from the same provider if it can handle the work another way.
The law also tightens financing disclosure. State solicitation documents would have to include estimated financing costs from the Director of Debt Management in the Office of the State Treasurer, while local governments could get that information from the treasurer’s office or a qualified provider. The provider would owe a nonrefundable $1,000 administrative fee to the State Energy Office within 30 days of entering the contract.
Rulemaking fills in the gaps
The Department of Administration would have to adopt temporary rules to carry out the new system, then permanent rules to replace them. The bill also repeals older language that no longer fits the recodified structure and makes conforming changes across other sections of state law.
For public agencies, the practical result is less informality and more documentation before an energy contract can move forward. For taxpayers, the idea is that promised savings have to be measured, verified and explained before the deal becomes binding.