1. (1) except as provided in subdivision (b) of this section, be clearly identified and recommended in a focused energy analysis which meets the requirements of section 7920.8 of this Part;
2. (2) result in reduced energy consumption;
3. (3) have a simple payback of not less than two years nor more than 10 years; and

4. (4) involve a facility located within the State which is occupied at the time of submission of an application for a program rebate to the Energy Office.

   (b) Energy conservation measure list.

5. (1) The Energy Office shall prepare and make available to the public a list of energy conservation measures which, on the basis of prior energy programs, audits and analyses, have been determined by the commissioner to commonly result in reduced energy consumption and to have simple payback periods of not less than two years nor more than 10 years. The list may reflect the minimum efficiency requirements needed to achieve consistency with utility financial incentive programs, and with other State and Federal programs that promote energy efficiency, as necessary and appropriate to accomplish the objectives of the program. The list may be revised from time to time, as deemed appropriate by the commissioner.

6. (2) Applicants who propose to implement energy conservation measures which are identified on such list, and who provide any additional data which may be requested by the Energy Office, shall be deemed to have satisfied the requirements of paragraph (a)(1) of this section.

   (c) Special provisions.

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

7. (1) Fuel conversion projects.

   1. (i) Fuel conversion projects, other than conversions from renewable energy resources to fossil fuels, are eligible energy conservation improvements which will be evaluated on their potential for saving Btu's.
   2. (ii) Simple payback calculations for such projects shall be based on the cost of the existing fuel.
   3. (iii) For projects which involve the conversion to a renewable energy resource simple payback calculations shall be based on the quantity and the cost of the fuels to be displaced, utilizing their current energy prices.

8. (2) The projected annual energy cost savings may include electric demand savings, to be determined based upon the previous 12 months of electric usage.

   (d) Ineligible energy conservation measures.

   The following energy conservation measures and activities are not eligible for rebates:

9. (1) any project the cost of which is less than $1,000;
10. (2) any energy conservation measure for which the simple payback exceeds the estimated life of the measure;
11. (3) operation and maintenance activities; and
12. (4) any energy conservation measure commenced prior to the date of submission of a program application to the Energy Office.

(a) General.

An energy conservation measure must: