R362-3-4. Eligibility of Projects for Loans

  (1) Eligibility for loans from the Fund is limited to political subdivisions within the State of Utah.

  (2) Loans may be used only by political subdivisions to fully or partially finance energy efficiency projects within buildings owned and operated by the political subdivision.

  (3) For energy efficiency projects involving renovation, upgrade, or improvement of existing buildings, the following project measures are eligible for loan financing from the Fund:

  (a) Building exterior weatherization, air sealing, or thermal efficiency;

  (b) Increase or improvement in building insulation;

  (c) Door, window, or skylight upgrades;

  (d) Lighting technology upgrades, or reduction of the number of fixtures;

  (e) Heating, ventilation, and air conditioning (HVAC) replacements or upgrades;

  (f) Improvements to energy control systems;

  (g) Renewable energy systems;

  (h) Other energy efficiency projects that a political subdivision can demonstrate will result in a significant reduction in the consumption of energy within a building.

  (4) The following project measures are not eligible for energy efficiency projects from the Fund involving renovation, upgrade, or improvement of existing buildings:

  (a) The repair of existing buildings or equipment;

  (b) Projects that save money through switching of fuels, energy sources, or vendors, except in the case of the installation of a renewable energy system or other fuel changes that result in energy savings;

  (c) Projects or measures intended to save money by changing the time of day or year at which energy is consumed (i.e. thermal energy storage or other peak demand reduction systems); or

  (d) Upgrades to non-fixed appliances or equipment within a building such as computers, copiers, and other systems.

  (5) An energy efficiency project can be eligible as part of a new building construction if the following conditions are met:

  (a) The building measure or system for which a loan is sought must surpass the minimum prescriptive requirements of the Utah Energy Code; and

  (b) The completed building must exceed the minimum energy performance standards of the Utah Energy Code for its building type by at least 10%.

  (6) An energy efficiency project is eligible for a loan only if the total amount of funds awarded to the project are repaid in a term of between two and twelve years.