§ 127-A — Energy conservation in state-aided programs

§ 127-a. Energy conservation in state-aided programs. 1. As used in\nthis section:\n (a) "annual pro-rated project cost" shall mean the amount of\nreimbursement per year which is sufficient to reimburse an eligible\nfacility, in accordance with its state aid rate, for the cost of an\nenergy conservation project by the final year of the payback period for\nsuch project.\n (b) "eligible facility" shall mean a facility, other than a hospital\nor a residential health care facility as defined in article twenty-eight\nof the public health law, which has a current operating certificate from\na state agency and which receives full or partial state reimbursement\nfor energy costs.\n (c) "energy conservation measure" shall mean any construction,\nalteration, repair or improvement of the capital assets of an eligible\nfacility for the purpose of reducing the consumption of energy, but\nshall not include operating and maintenance measures.\n (d) "energy conservation project" shall mean one or more energy\nconservation measures selected for implementation by an eligible\nfacility.\n (e) "operating and maintenance measures" shall mean cost-free or\nlow-cost procedures, or improvements or repairs to an eligible facility,\nwhich are intended to reduce energy consumption and which do not impose\nany costs on an eligible facility which are not reimbursable as\noperating costs of the facility.\n (f) "payback period" shall mean an estimated period of time, within\nwhich the costs of an energy conservation measure or project will be\nrecovered from the savings generated by the reduced energy consumption\nresulting therefrom.\n (g) "state aid rate" shall mean the percentage of an eligible\nfacility's energy costs which are reimbursed by the state.\n 2. Notwithstanding any other provision of law, an eligible facility\nshall be reimbursed for the costs of implementing energy conservation\nprojects in accordance with the provisions of this section.\n 3. (a) Prior to implementing any energy conservation project for which\nreimbursement is sought pursuant to this section, an eligible facility\nshall obtain an analysis of its energy usage and available opportunities\nfor energy conservation. Such analysis shall be conducted by an\narchitect or engineer licensed by the state of New York who has no\nfinancial interest in the facility or in the production, promotion or\nsale of any energy resource or any energy conservation product or\ndevice.\n (b) The required analysis shall be prepared after an on-site\nexamination of the facility by the architect or engineer. The analysis\nshall include recommendations for energy conservation measures and\noperating and maintenance measures appropriate for the facility, and\nestimated payback periods for each recommended energy conservation\nmeasure. For the purposes of this section, payback period calculations\nshall take into account implementation of all recommended operating and\nmaintenance measures, shall be based on current energy prices, without\nany adjustment for anticipated changes in such prices, and shall be\nbased on the average annual energy usage of the facility. The average\nannual energy usage shall be based on the energy usage for the preceding\nthree years, provided, however, that if the facility has not been in\noperation for the preceding three years, or if changes in the capacity\nor usage of the facility in the preceding three years have substantially\naltered the energy usage of the facility, the architect or engineer\nshall make and document reasonable assumptions concerning the average\nannual energy usage of the facility.\n (c) The architect or engineer shall prepare a final report presenting\na single payback period for the energy conservation project for which\nreimbursement is sought. The payback period shall be computed as\nprovided in paragraph (b) of this subdivision, and shall take into\naccount the interaction between conservation measures. The cost of such\nproject shall include:\n (1) the actual costs of all energy conservation measures selected for\nimplementation by the eligible facility from among those recommended by\nthe architect or engineer;\n (2) the fee, if any, charged by the architect or engineer; and\n (3) if the facility intends to finance any energy conservation\nmeasures by loan or other financing arrangement, the cost of securing\nsuch loan or other financing arrangement, provided that no costs shall\nbe included in the cost of the project which are attributable to:\n (i) a financing rate in excess of three percentage points above the\noverpayment rate set by the commissioner of taxation and finance\npursuant to section one thousand ninety-six of the tax law; or\n (ii) any term of a loan or financing arrangement which exceeds by more\nthan one year the payback period for the energy conservation project\nbeing financed.\n 4. (a) In addition to any information which is ordinarily required for\npurposes of reimbursement, an application for reimbursement pursuant to\nthis section shall include the analysis and final report of the\narchitect or engineer, along with any supporting documentation which the\nagency may require to review such analysis and report, and a\ncertification by the facility director that all operating and\nmaintenance measures recommended by the architect or engineer have been\nand will continue to be implemented, or that the failure to implement\nany specific operating and maintenance measure will be justified to the\nsatisfaction of the agency.\n (b) An eligible facility which complies with the provisions of this\nsection shall be reimbursed for not less than the annual pro-rated\nproject cost for an energy conservation project; provided, however, that\nreimbursement in the final year of the payback period for an energy\nconservation project may be in such lesser amount as is required to\nfully reimburse an eligible facility for the cost of such project. Such\nreimbursement may be made in such form and at such time as an agency may\nrequire, in conformance with applicable law and regulations but not less\nfrequently than once annually.\n (c) Notwithstanding any provision of this section, no reimbursement\nshall be made to an eligible facility for any part of a payback period\nin excess of ten years.\n (d) An eligible facility which has received an approval for\nreimbursement of a final report prepared pursuant to this section shall\nnot apply for any further energy conservation measures, not recommended\nin such final report, for a period of two years from the date of such\napproval.\n 5. (a) Notwithstanding the provisions of this section, an agency shall\nonly be required to reimburse eligible facilities for energy\nconservation projects pursuant to this section to the extent that the\ntotal amount of such reimbursement in any year, when combined with the\ntotal amount of energy costs actually reimbursed in such year, does not\nexceed the total amount budgeted for energy costs in such year;\nprovided, however, that nothing in this subdivision shall be construed\nto preclude an agency from reimbursing energy conservation projects from\nany funds, not originally budgeted for energy costs, which are made\navailable for such purpose, or from approving with a facility's consent\nenergy conservation projects, for which funds for reimbursement are not\nimmediately available, for the purpose of assigning priority to\nreimbursement of such projects when funds become available.\n 6. All state agencies which reimburse eligible facilities for energy\ncosts shall encourage all such facilities to implement measures to\nreduce energy consumption, and may make available information on energy\nconservation. A state agency may provide each eligible facility under\nits jurisdiction with a list of appropriate operating and maintenance\nmeasures, and may require each such facility to certify that it will\nimplement appropriate operating and maintenance measures.\n