A local government that enters into an energy service contract with the State Public Works Board pursuant to this chapter shall do both of the following:
(a) Include in the contract specific provisions to meet its energy service contract obligation determined pursuant to this chapter.
(b) Authorize the Controller, as part of the energy service contract, to withhold sufficient payments, from specific moneys that it otherwise would receive from the state, in order to meet its annual energy service contract obligation determined pursuant to this chapter, if the provisions of subdivision (a) are for any reason insufficient to meet that annual energy service contract obligation.