.12 Eligible Expenditures.

The following expenditures may be eligible for State funding:

A. Planning, including feasibility studies, programs, educational specifications, equipment specifications, and other planning work that occurs prior to the start of design.

B. Design expenses and other ancillary costs, including architectural and engineering fees, construction management services, geotechnical surveys, and other services necessary to complete the architectural specifications for a school project.

C. New construction, as follows:

(1) Construction of a new school facility, that is, work necessary to construct a new school facility, including building and site development;

(2) Additions to an existing facility, that is, work necessary to increase space at an existing school facility, including:

(a) Building and site development; and

(b) Work to physically integrate the addition into the existing school;

(3) Replacement of a building or building portion, that is, work necessary to reconstruct a school facility that cannot be economically repaired or renovated, including building and site development; and

(4) Modular construction, that is, factory-fabricated structures that have the same quality systems and materials as used for permanent school construction and that meet the standards of the COMAR 05.02.04;

D. Renovation or limited renovation, that is, work necessary to restore and modernize an existing school facility or a portion of a facility that is 16 years old or older;

E. Systemic renovations as set forth in Regulation .15 of this chapter;

F. State-owned relocatable facilities as set forth in Regulation .16 of this chapter;

G. Temporary facilities, including utilities and relocatable facilities, that are necessary on-site during construction of a State-funded project;

H. Equipment and furnishings as defined by the IAC;

I. Real time utilities metering measurement and verification equipment as defined by the IAC;

J. Off-site development costs required by local, State, or federal agencies;

K. Emergency repairs as set forth in Regulation .17 of this chapter;

L. Window air-conditioning units, and associated electrical upgrades, installation, and security in schools where more than half of classrooms are not temperature-controlled.

(1) Notwithstanding any other regulation, the IAC may not recommend to subtract funding from the maximum State construction allocation for future renovation projects based on funding of air-conditioning units under this regulation;

(2) An LEA receiving funding for air-conditioning units shall annually certify that the units are being maintained on an ongoing basis and are operable; and

M. E-rate eligible special construction broadband infrastructure projects, including offsite development costs, for E-rate eligible applicants consistent with 47 C.F.R. 54.505, through the State funding of grants to local boards of education.