R23-30-6. Loan Application Process

  (1) The Board shall receive and evaluate applications for loans from the Fund. Notice of due dates for applications will be made available to state agencies no less than thirty (30) days in advance of the next scheduled Board meeting at which applications will be evaluated.

  (2) State agencies interested in applying for a loan should first contact the SBEEP Manager. The SBEEP Manager will consult or meet with the state agency to make an initial assessment of the strength or weakness of a proposed project. The SBEEP Manager may also choose to conduct a site visit and inspection of the proposed project location prior to the submittal of an application and the state agency shall cooperate with the SBEEP Manager in making the relevant aspects of site available for such site visit and inspection. The SBEEP Manager may assist state agencies in assessing potential project measures and in preparing an application.

  (3) Applications for loans will be made using forms developed by the SBEEP Manager. State agencies shall provide the following information on the forms developed by the SBEEP Manager and approved by the Board:

  (a) name and location of the state agency;

  (b) name and location of the building or buildings where the energy efficiency project will take place;

  (c) a description of the building or buildings, including what the building is used for, seasonal variations in use, general construction of the building, and square footage;

  (d) a description of the current energy usage of the building, including types and quantities of energy consumed, building systems, and the age of the building and the particular systems and condition;

  (e) a description of the energy efficiency project to be undertaken, including specific measures to be undertaken, the cost or incremental cost of each measure, and the equipment or building materials to be installed;

  (f) projected or estimated energy savings that result from each measure undertaken as part of the project;

  (g) projected or estimated energy cost savings from each measure undertaken as part of the project;

  (h) a description of how energy savings and cost savings will be measured and verified using objective and verifiable post-construction measures, that take into account fluctuations in energy cost and temperature, as well as describing the commissioning procedures for the project;

  (i) a description of any additional community or environmental benefits that may result from the project; and

  (j) plans and specifications shall accompany the form which describes the proposed energy efficiency measures.

  (4) Applications shall be received for the Board by the SBEEP Manager. The SBEEP Manager will conduct an initial review of each application. This initial review will be for the purpose of determining the completeness of the application, whether additional information is needed, provide advice on the likelihood that proposed projects, measures, and costs may be eligible for loan financing, and to assist the state agency in improving its application.

  (5) When the SBEEP Manager has determined that an application is complete and that the proposed project complies with this rule, the application will be forwarded to the Board for its evaluation.

  (6) The SBEEP Manager shall make a recommendation for each application to the Board. Based upon the score as determined by the SBEEP Manager, the SBEEP Manager will make recommendations to the Board for the funding of energy efficiency projects. The SBEEP Manager may have the assistance of others with the appropriate expertise to assist with the review of the application. The SBEEP Manager and any others that assist the SBEEP Manager in scoring the application must disclose to the Board any conflicts of interest that exist in regard to the review of the application. The SBEEP manager shall make a recommendation to the Board based on the following criteria and scoring:

  (a) the feasibility and practicality of the project (maximum 30 points);

  (b) the projected energy cost payback period of the project (maximum 20 points);

  (c) the energy cost savings attributable to eligible energy efficiency measures (maximum 30 points); and

  (d) the environmental and other benefits to the state and local community attributable to the project (maximum 20 points);

  (e) the availability of another source of funding may result in a reduction in the number of overall points in proportion to the likelihood of such other source of funding and the degree to which the source of other funding will fund the entire project. If the other source of funding is likely and funds the entire project, then the SBEEP Manager may recommend to the Board that the project is ineligible for funding and the Board may so determine;

  (f) if there are matching funds from another source that are available for the project, the SBEEP Manager may add points to the overall score to the project in proportion to the likelihood that the matching funds will be available and the degree to which the matching funds applies to the entire project; and

  (g) the SBEEP Manager may deduct points from the score of the entire project if the state agency has not used funds properly in the past, not performed the work properly in the past, not provided annual reports or access for inspections, any of which based on the degree of noncompliance.

  (7) The SBEEP Manager shall provide advice and recommendations to the Board. For applications that receive an average score of less than 70 points, the SBEEP Manager shall recommend that the Board not provide a loan from the Fund. Applications receiving an average score over 70 will normally be recommended by the SBEEP Manager for funding. However, if the current balance of the fund does not permit for the funding of all projects with an average score over 70, the SBEEP Manager will recommend, beginning with the highest scoring application and working downward in score, those applications that may be funded given the current balance of the Fund. The SBEEP Manager is not authorized to make decisions regarding the public's business in connection with the Fund. The Board is the decision making authority with regard to the award of loans from the Fund.

  (8) Based upon the SBEEP Manager's scoring, evaluations and recommendations, SBEEP will prepare a memorandum for the Board that will:

  (a) provide a brief description of each project reviewed by the SBEEP Manager;

  (b) list the energy savings, energy cost savings, and cost payback for each project as estimated by the applicant;

  (c) list the energy savings, energy cost savings, and cost payback for each project as estimated by the SBEEP technical specialist for the program;

  (d) list the total score and the score for each evaluation criterion for each application;

  (e) specify projects recommended for funding and those not recommended for funding;

  (f) provide a brief explanation of the SBEEP Manager's rationale for each application that is not recommended for funding.

  This memorandum is to be provided to each member of the Board no less than seven (7) calendar days prior to the next scheduled Board meeting at which applications will be evaluated.

  (9) At its next scheduled meeting after the SBEEP Manager has submitted the recommendations to the Board, the Board will consider pending applications for loans from the Fund and will review the SBEEP Manager's recommendations for each project. The Board will also provide an opportunity for applicants and other interested persons to comment regarding the recommendations and information provided by the SBEEP Manager.

  (10) When considering Loan applications, the Board may modify the dollar amount or project scope for which a loan is awarded if the Board determines that individual measures included in a project do not meet the requirements of this rule, are not cost effective, or that funds could better be used for funding of other projects.

  (11) In reviewing energy efficiency measures for possible funding after receiving the report and recommendations of the SBEEP Manager and other testimony and documents provided to the Board, the Board shall:

  (a) review the loan application and the plans and specifications for the energy efficiency measures;

  (b) determine whether to grant the loan by applying the loan eligibility criteria; and

  (c) if the loan is granted by the Board, prioritize the funding of the energy efficiency measures by applying the prioritization criteria.

  (12) The Board may condition approval of a loan application and the availability of funds on assurances from the state agency that the Board considers necessary to ensure that the state agency:

  (a) uses the proceeds to pay the cost of the energy efficiency measures; and

  (b) implements the energy efficiency measures.