SB 1050 establishes stricter regulations for energy savings performance contracts entered into by local governments. It requires local governments to appoint a third-party engineer to oversee contract evaluations, verify cost estimates, and monitor compliance with energy savings guarantees. The bill sets new bidding and oversight requirements, ensures transparency in cost calculations, and mandates independent verification of energy savings or increased revenue projections. It also introduces criminal penalties for fraudulent misrepresentation in contract proposals and performance guarantees.