2023 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.