Program Guidelines

Distributor Financial Incentives
Premium-Efficiency Motors
Program Opportunity Notice (PON) No. 660-02

Program Summary:

Through the New York Energy $mart^SM Premium-Efficiency Motors Program, the New York State Energy Research and Development Authority (NYSERDA) announces the availability of financial incentives to motor vendors for the sale of qualified premium-efficiency motors in New York State. Wholesale distributors, vendors, and dealers of electric motors, and original equipment manufacturers of equipment using qualified premium-efficiency motors are eligible to apply. For the purposes of this solicitation, the term vendor is used to refer to all eligible participants.

NYSERDA aims to encourage marketing and promotion activities that increase the availability and sale of qualified premium-efficiency motors in New York State. The program directs participating vendors to incorporate a motor systems approach into their sales strategy and to agree to include information on the benefits of energy saving system improvements, including premium-efficiency motors in their customer-marketing activities. Vendors who participated under previous program opportunity notices (PON 501-00 or PON 592-01) MUST reapply and are subject to the participation conditions of this program opportunity notice (PON 660-02). Vendors will have the opportunity at the end of the fourth quarter in each program year to revise their application.

Benefits include:

Incentive payments of up to $80 per motor are made to participating vendors based on proof of sale of qualified motors
Easy-to-use motor selection tools customized to meet your needs and targeted to your motor lines
Targeted customer-marketing assistance to engage and educate your customers and to promote reliable and efficient motor management practices

If changes are made to the program, an advance notification will be published in the New York State Contract Reporter. The changes will also be posted on the NYSERDA web site (www.nyserda.org).

APPLICATION SUBMISSION:

The application is included as Attachment A. Applications with original signatures must be sent to: NYS Energy Research and Development Authority, Attention: Motors Project Manager, 17 Columbia Circle, Albany, NY 12203-6399.

Questions should be directed to Laurie Kokkinides at 518-862-1090, ext. 3353 or ljk@nyserda.org.

I. PROGRAM REQUIREMENTS

Through the New York Energy $mart^SM Premium-Efficiency Motors Program, the New York State Energy Research and Development Authority (NYSERDA) announces an opportunity for vendors to earn incentives for promoting and selling qualified premium-efficiency motors. To become a participating vendor, vendors must submit the attached application and agree to basic participation conditions. Applications will be accepted through December 31, 2004. The application is included as Attachment A.

Eligibility

Incentives are available to vendors who promote and sell qualified premium-efficiency motors to customers in the New York Energy $mart Program territory, which consists of Central Hudson Gas and Electric Corporation, Consolidated Edison Company of New York, Inc., New York State Electric and Gas Corporation, Niagara Mohawk Power Corporation, Orange and Rockland Utilities, Inc., and Rochester Gas and Electric Corporation electric utility service areas. Eligible vendors include wholesale distributors, vendors, and dealers of electric motors, and original equipment manufacturers of equipment using qualified premium-efficiency motors.

Qualifying Motors

To qualify for incentives, motors covered by this program MUST meet the following criteria:

New, general purpose, three-phase, induction motors
NEMA Design A or B
1 - 200 horsepower
Totally enclosed fan-cooled (TEFC) or open drip proof (ODP) 1,200-, 1,800-, or 3,600-speed
Perform equal to or better than the NEMA Premium™ efficiency criteria

A sheet summarizing the NEMA Premium^TM efficiency levels is included as Attachment B.

Incentives Available

Participating vendors will be eligible for one of three Incentive Schedules based on their previous year's sales of motors meeting the NEMA Premium™ efficiency criteria or motors with efficiency levels equivalent to NEMA Premium^TM levels. [Example: If you are submitting an application in 2002, regardless of which month, you should base your Incentive Schedule on 2001 sales of qualifying motors]. To encourage consistent levels of sales on a quarterly basis, the incentive amounts increase over each quarter as described in the Application. The 'sold to' date on the customer invoice will determine which quarter the sale is counted toward.

On the first day of each quarter, each applicant's count of qualified motors sold returns to zero. The four quarters are defined as follows: First: January - March; Second: April - June; Third: July - September; and Fourth: October - December. Each quarter ends on the last day of March, June, September, and December.

Participating vendors will receive incentive payments upon review and approval of required documentation including customer invoices providing proof of sales. NYSERDA will accept invoices with a customer ‘sold to’ date through March 31, 2006. All required documentation must be received by NYSERDA on or before May 31, 2006.

Vendor Assistance

To support participating vendors in their efforts to promote qualified premium-efficiency motors, NYSERDA has retained a vendor-assistance contractor to provide one-on-one program assistance tailored to each vendor's needs at no cost. Available services include supplying simple, easy-to-use motor selection tools (e.g., customized lists of qualified premium-efficiency motors you carry), coordinating joint marketing efforts targeted to the industries you serve, and providing informational materials (e.g., quality motor repair practice resources, motor systems case studies, U.S. Department of Energy software). The vendor-assistance contractor will also help you collect and submit required reporting information, expedite incentive payment requests, assist you with the application required to participate in the program and, if requested, assist with other programmatic needs.

This program encourages vendors to incorporate a motor systems approach into their sales strategy by agreeing to inform customers of the benefits of motors meeting the NEMA Premium™ efficiency criteria. The vendor-assistance contractor will provide information and materials to participating vendors to assist them in promoting a motor systems approach in their customer-marketing activities.

Customer Education

To increase the demand for high-efficiency motors, NYSERDA is increasing its efforts on customer marketing. In an effort to educate customers on the benefits of a motor systems approach, the vendor-assistance contractor will assist participating vendors by offering the following customer services: motor system workshops to address motor installation practices, adjustable speed drives, and upgrading system components; promotions of quality motor repair practices and corporate motor management plans and policies; and decision-making tools to cut motor energy costs and increase productivity and reliability.

Financial Incentives for your Customers

Financial incentives are also available to eligible customers for the purchase and installation of qualified premium-efficiency motors through NYSERDA's Smart Equipment Choices Program. The application for this program is available from the NYSERDA web site at http://www.nyserda.org/rddopps.html, under the link for PON 853. You may contact NYSERDA toll-free at 1-866-NYSERDA (1-866-697-3732) or by email at info@nyserda.org.

II. APPLICATION REQUIREMENTS

NYSERDA will accept applications from all vendors who meet and agree to comply with the Participation Conditions identified in the application. The application will establish the Incentive Schedule available to each vendor based on the previous year's sales of motors meeting the NEMA Premium^TM efficiency criteria or motors with efficiency levels equivalent to NEMA Premium^TM levels. Out-of-state vendor's previous year's sales should apply only to those sales within the eligible program territory.

Applications MUST be completed in consultation with either NYSERDA or the vendor-assistance contractor in order to ensure that the appropriate Incentive Schedule is selected. Vendors will have the opportunity at the end of the fourth quarter in each program year to move from their current Incentive Schedule to a different Incentive Schedule. However, revisions MUST be completed in consultation with either NYSERDA or the vendor-assistance contractor to ensure the appropriate Incentive Schedule is selected.

National or chain distributors that operate from more than one location must submit a separate application for each location. The previous year's estimated number of new motors sold must correspond to the location identified in the application.

How To Apply

Fill out all applicable spaces on the Premium-Efficiency Motors Application.
Check the box to indicate the Incentive Schedule (A, B, or C) that corresponds to your previous year's estimated qualified premium-efficiency motors sold. The Incentive Schedule identifies the level of incentives you are eligible to earn.
Read the Participation Conditions included in the Premium-Efficiency Motors Application and sign and submit the completed and originally signed application by December 31, 2005 to: NYS Energy Research and Development Authority, Attention: Motors Program Project Manager, 17 Columbia Circle, Albany, NY 12203-6399.

III. APPLICATION EVALUATION

Applications will be reviewed to assure that appropriate information and signatures are provided and that the Incentive Schedule you selected corresponds with your previous year's estimated premium-efficiency motor sales of qualified motors. Upon application approval, NYSERDA will issue a Purchase Order, under which the Participant will be required to fulfill duties and obligations set forth in the application and in the Purchase Order. A Sample Purchase Order is included as Attachment C.

IV. GENERAL CONDITIONS

PROPRIETARY INFORMATION - Careful consideration should be given before confidential information is submitted to NYSERDA as part of your application. The applicant should determine whether the information is critical for evaluating an application or whether general, non-confidential information, may be adequate for review purposes. The New York State Freedom of Information Law, Public Officers law, Article 6, provides for public access to information NYSERDA possesses. Public Officers Law, Section 87(d) (2) provides for exceptions to disclosure for records or portions thereof that "are trade secrets or are submitted to an agency by a commercial enterprise or derived from information obtained from a commercial enterprise and which if disclosed would cause substantial injury to the competitive position of the subject enterprise." Information submitted to NYSERDA that the applicant wishes to have treated as proprietary, including confidential trade secret information should be identified and labeled "Confidential" or "Proprietary" on each page at the time of disclosure. This information should include a written request to except it from disclosure, including a written statement of the reasons why the information should be excepted. See Public Officers law, Section 89(5) and the procedures set forth in 21 NYCRR Part 501.

MINORITY-AND WOMEN-OWNED BUSINESS POLICY-OMNIBUS PROCUREMENT ACT OF 1992 - It is the policy of New York State to maximize opportunities for the participation of New York State business enterprises, including minority- and women-owned business enterprises, as bidders, subcontractors and suppliers on its procurement Agreements.

Information on the availability of New York subcontractors and suppliers is available from: NYS Department of Economic Development, Division For Small Business, 30 South Pearl Street, Albany, NY 12245. A directory of certified minority- and women-owned business enterprises is available from: NYS Department of Economic Development, Minority and Women's Business Development Division, 30 South Pearl Street, Albany, NY 12245.

CONTRACT AWARD - NYSERDA may award a purchase order based on initial applications without discussion, or following limited discussion or negotiations. NYSERDA may request additional data, or material to support applications.

LIMITATION - This solicitation does not commit NYSERDA to award a purchase order, pay any costs incurred in preparing an application, or to procure or contract for services or supplies. NYSERDA reserves the right to accept or reject any or all applications received, to negotiate with all qualified sources, or to cancel or change in part or in its entirety the solicitation when it is in NYSERDA's best interest.

DISCLOSURE REQUIREMENT - The proposer shall disclose any indictment for an alleged felony, or any conviction for a felony within the past five years, under the laws of the United States or any state or territory of the United States, and shall describe circumstances for each. When a proposer is an association, partnership, corporation, or other organization, this disclosure requirement includes the organization and its officers, partners, and directors or members of any similarly governing body. If an indictment or conviction should come to the attention of NYSERDA after the award of a contract, NYSERDA may exercise its stop-work right pending further investigation, or terminate the agreement; the contractor may be subject to penalties for violation of any law, which may apply, in the particular circumstances.