1. (1) have a simple payback of not less than 1 year nor more than 10 years, except that a project involving a multifamily housing building may have a simple payback which does not exceed 15 years;
2. (2) be clearly identified and recommended in an energy audit or technical feasibility study which meets the requirements of section 7910.7 of this Part;
3. (3) result in reduced energy consumption; and

4. (4) involve a building located within the State which was completed and in use before an application for a program loan is submitted to the Energy Office.

   (b) Special provisions.

   In addition to meeting the requirements of subdivision (a) of this section, the following special provisions shall apply:

5. (1) Onsite power production projects. Onsite power production projects are eligible energy conservation improvements, provided that the simple payback calculations shall not take into account any revenues to be received from the sale of energy offsite.

6. (2) Fuel conversion projects.

   1. (i) Fuel conversion projects, other than conversions from renewable energy resources to fossil fuels, are eligible energy conservation improvements.
   2. (ii) Simple payback calculations for eligible fuel conversion projects shall be based on the cost of the current fuel.

7. (3) Submetering projects. Submetering projects are eligible energy conservation improvements.

   (c) Ineligible energy conservation improvements.

   The following energy conservation improvements are not eligible for interest subsidies:

8. (1) the purchase and installation of residential appliances for use in multifamily housing buildings;
9. (2) any energy conservation improvement for which the simple payback exceeds the estimated life of the improvement; and
10. (3) any energy conservation improvements commenced prior to the date of submission of the program application to the Energy Office.

(a) General.

An energy conservation improvement project must: