Section 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.