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ENERGY SAVINGS PURCHASE AGREEMENT This AGREEMENT is entered into between _City of Eugene Transportation Division (Owner) and the Eugene Water & Electric Boazd (EWEB). In consideration of the following terms and conditions, Owner agrees to sell, and EWEB agrees to purchase, the electrical energy savings from Owner's energy conservation project as follows: 1. Purpose of EWEB's Energy Management Program: EWEB is committed to ensuring an adequate energy supply for all EWEB customers and has identified certain Energy Conservation Measures (ECMs) that are projected to use energy more efficiently, thereby benefitting all EWEB customers. The Bonneville Power Administration (BPAy provides financial incentives for regionally cost-effective ECMs and may partially fund the EWEB Energy Smart Services Program developed by EWEB for EWEB's non-residential customers. 2. Program Eligibility: Owner acknowledges and agrees that EWEB is not obligated to make ari incentive payment or provide funding to the Owner for any materials and labor to install ECMs if such work was initiated prior to EWEB and Owner signing this Agreement. Owner acknowledges and agrees that signing this Agreement does not'obligate EWEB to provide a loan, incentive payment, or other funding to the Owner for any ECMs not specifically described in Exhibit 1 that the Owner may choose to install at some future date. 3. Construction of Project by Owner: EWEB has provided a brief description of recommended CMS. Owner has selected ECMs that Owner deems suitable for Owner's business needs as the Owner's Project. ECMs included in the Project are described in Exhibit 1 as is the Facility Location, Project Life, Estimated Project Cost, and Project Completion Date. Should Owner proceed with installation of the Project, Owner thereby agrees to: a. Project Design and Installation. Owner agrees to design, purchase, and supervise the installation of the Project that will reduce and manage electrical energy consumption at its facilities. Owner shall obtain required permits and comply with all federal, state or local laws, regulations and ordinances related to the Project'. Owner agrees to investigate and comply with any applicable environmental requirements including, but not limited to, indoor air quality requirements and State Historic Preservation requirerrrients pertaining or otherwise related to the Project. The Owner acknowledges that certain ECMs may adversely affect power quality. Owner agrees to assume responsibility for identifying and installing equipment to mitigate negative impacts on Owner's power quality associated with Owner's Project and ensure the Owner's standards for power quality are attained. b. Project Schedule and Completion. Owner agrees to complete installation of the ECMs and submit all final invoices or documentation of actual Project costs to EWEB within 60 days of the Project Completion Da#e listed in Exhibit 1 to this agreement. If installation of Owner's Project is not completed within this time period, any loan, funding, or incentive offer made by EWEB shall expire unless extended in writing by EWEB. When Uwner's Project is complete, Owner shall notify EWEB in a timely manner. EWEB may, at its option, inspect any or all ECMs and related installation work or request Owner's certification of completed Project. Owner agrees to provide EWEB . access to the areas in its facility affected by the installed ECMs. If the installation of the ECMs is unacceptable to EWEB, EWEB shall notify Owner of the deficiencies and suggested corrections. Owner agrees to correct any deficiencies in a timely manner before final funding or incentive disbursement. c. Relationship of the Parties. EWEB's relationship to Owner is limited solely to the acquisition of the estimated electrical energy savings from Owner's Project by providing funding for Owner's use in completing the Project. Owner agrees to assume full responsibility for all aspects of the ProjecK. Owner agrees to supervise installation and to assure EWEB that Owner's Project is completed in a worlananlike manner, which includes but is not limited to, ensuring Project performance that neither materially adversely affects the realization of expected energy savings nor adversely affects human health and safety. EWEB's role with Owner and Owner's contractors is limited to confirmation that Owner has completed the Project according to the ECM description(s) in Exhibit 1, including any amendment. EWEB's confirmation is for its own use and shall not be relied upon by Owner. 'Owner shall be responsible to make its own confirmation that the Owner's Project meets any particulaz requirements. 4. Payment by EWEB to Owner. Payment by EWEB to Owner for the projected electrical energy savings shall be made as follows: a. The parties agree that EWEB is not required to make any expenditures of money or resources under this agreement except from revenues derived from EWEB's ownership and operation of its electric utility properties. b. Payments by EWEB to Owner aze based upon estimated electrical energy savings and not actual savings. The parties acknowledge that the actual savings may not match the energy savings estimates. EWEB makes no guarantees as to what actual savings may occur. c. Before construction by Owner, EWEB hereby authorizes payment as described in the Offer attached hereto as Exhibit 2. The Offer is based upon the estimated annual kWhs of electrical energy savings of Owner's project .