NY State Fin L § 127-A (2021)
2021 New York Laws STF - State Finance Article 8 - Fiscal Supervision of Certain Institutions 127-A - Energy Conservation in State-Aided Programs.

§  127-a.  Energy  conservation in state-aided programs. 1. As used in this section:  (a)  "annual  pro-rated  project  cost"  shall  mean  the  amount   of reimbursement  per  year  which  is  sufficient to reimburse an eligible facility, in accordance with its state aid rate,  for  the  cost  of  an energy  conservation project by the final year of the payback period for such project.  (b) "eligible facility" shall mean a facility, other than  a  hospital or a residential health care facility as defined in article twenty-eight of the public health law, which has a current operating certificate from a  state  agency  and which receives full or partial state reimbursement for energy costs.  (c)  "energy  conservation  measure"  shall  mean  any   construction, alteration,  repair  or improvement of the capital assets of an eligible facility for the purpose of reducing  the  consumption  of  energy,  but shall not include operating and maintenance measures.  (d)  "energy  conservation  project"  shall  mean  one  or more energy conservation  measures  selected  for  implementation  by  an   eligible facility.  (e)  "operating  and  maintenance  measures"  shall  mean cost-free or low-cost procedures, or improvements or repairs to an eligible facility, which are intended to reduce energy consumption and which do not  impose any  costs  on  an  eligible  facility  which  are  not  reimbursable as operating costs of the facility.  (f) "payback period" shall mean an estimated period  of  time,  within which  the  costs  of  an energy conservation measure or project will be recovered from the savings generated by the reduced  energy  consumption resulting therefrom.  (g)  "state  aid  rate"  shall  mean  the  percentage  of  an eligible facility's energy costs which are reimbursed by the state.   2. Notwithstanding any other provision of law,  an  eligible  facility shall  be  reimbursed  for the costs of implementing energy conservation projects in accordance with the provisions of this section.   3. (a) Prior to implementing any energy conservation project for which reimbursement is sought pursuant to this section, an  eligible  facility shall obtain an analysis of its energy usage and available opportunities for  energy  conservation.  Such  analysis  shall  be  conducted  by  an architect or engineer licensed by the state  of  New  York  who  has  no financial  interest  in  the facility or in the production, promotion or sale of any energy  resource  or  any  energy  conservation  product  or device.  (b)   The  required  analysis  shall  be  prepared  after  an  on-site examination of the facility by the architect or engineer.  The  analysis shall  include  recommendations  for  energy  conservation  measures and operating and maintenance measures appropriate  for  the  facility,  and estimated  payback  periods  for  each  recommended  energy conservation measure. For the purposes of this section, payback  period  calculations shall  take into account implementation of all recommended operating and maintenance measures, shall be based on current energy  prices,  without any  adjustment  for  anticipated  changes  in such prices, and shall be based on the average annual energy usage of the  facility.  The  average annual energy usage shall be based on the energy usage for the preceding three  years,  provided,  however,  that if the facility has not been in operation for the preceding three years, or if changes in  the  capacity or usage of the facility in the preceding three years have substantially altered  the  energy  usage  of  the facility, the architect or engineer shall make and document reasonable assumptions  concerning  the  average annual energy usage of the facility.  (c)  The architect or engineer shall prepare a final report presenting a single payback period for the energy conservation  project  for  which reimbursement  is  sought.  The  payback  period  shall  be  computed as provided in paragraph (b) of  this  subdivision,  and  shall  take  into account  the interaction between conservation measures. The cost of such project shall include:  (1) the actual costs of all energy conservation measures selected  for implementation  by the eligible facility from among those recommended by the architect or engineer;  (2) the fee, if any, charged by the architect or engineer; and  (3) if  the  facility  intends  to  finance  any  energy  conservation measures  by  loan  or other financing arrangement, the cost of securing such loan or other financing arrangement, provided that no  costs  shall be included in the cost of the project which are attributable to:  (i)  a  financing  rate in excess of three percentage points above the overpayment rate  set  by  the  commissioner  of  taxation  and  finance pursuant to section one thousand ninety-six of the tax law; or  (ii) any term of a loan or financing arrangement which exceeds by more than  one  year  the  payback period for the energy conservation project being financed.   4. (a) In addition to any information which is ordinarily required for purposes of reimbursement, an application for reimbursement pursuant  to this  section  shall  include  the  analysis  and  final  report  of the architect or engineer, along with any supporting documentation which the agency  may  require  to  review  such  analysis  and  report,   and   a certification   by   the   facility  director  that  all  operating  and maintenance measures recommended by the architect or engineer have  been and  will  continue  to be implemented, or that the failure to implement any specific operating and maintenance measure will be justified to  the satisfaction of the agency.  (b)  An  eligible  facility which complies with the provisions of this section shall be reimbursed for  not  less  than  the  annual  pro-rated project cost for an energy conservation project; provided, however, that reimbursement  in  the  final  year  of the payback period for an energy conservation project may be in such lesser  amount  as  is  required  to fully reimburse an eligible facility for the cost of such project.  Such reimbursement may be made in such form and at such time as an agency may require, in conformance with applicable law and regulations but not less frequently than once annually.  (c)  Notwithstanding  any  provision of this section, no reimbursement shall be made to an eligible facility for any part of a  payback  period in excess of ten years.  (d)   An   eligible  facility  which  has  received  an  approval  for reimbursement of a final report prepared pursuant to this section  shall not  apply for any further energy conservation measures, not recommended in such final report, for a period of two years from the  date  of  such approval.   5. (a) Notwithstanding the provisions of this section, an agency shall only   be   required   to   reimburse  eligible  facilities  for  energy conservation projects pursuant to this section to the  extent  that  the total  amount  of such reimbursement in any year, when combined with the total amount of energy costs actually reimbursed in such year, does  not exceed  the  total  amount  budgeted  for  energy  costs  in  such year; provided, however, that nothing in this subdivision shall  be  construed to preclude an agency from reimbursing energy conservation projects from any  funds,  not  originally  budgeted  for energy costs, which are made available for such purpose, or from approving with a facility's  consent energy  conservation projects, for which funds for reimbursement are not  immediately  available,  for  the  purpose  of  assigning  priority   to reimbursement of such projects when funds become available.   6.  All  state agencies which reimburse eligible facilities for energy costs shall encourage all  such  facilities  to  implement  measures  to reduce  energy consumption, and may make available information on energy conservation. A state agency may provide each  eligible  facility  under its  jurisdiction  with  a list of appropriate operating and maintenance measures, and may require each such facility to  certify  that  it  will implement appropriate operating and maintenance measures.