R362-3-5. Eligible Costs

  (1) This section defines the specific costs incurred by an energy efficiency project that are eligible for financing from the Fund.

  (2) The following direct costs of an energy efficiency project may be eligible for financing, subject to the remaining conditions of this section:

  (a) Building materials;

  (b) Doors, windows, and skylights;

  (c) Mechanical systems and components including HVAC and hot water;

  (d) Electrical systems and components including lighting, renewable energy systems, and energy management systems.

  (e) Labor necessary for the construction or installation of the energy efficiency project;

  (f) Design and planning of the energy efficiency project;

  (g) Energy audits that identify measures that are included in the energy efficiency project;

  (h) Commissioning, inspections or certifications necessary for implementing the energy efficiency project.

  (3) The following costs are not eligible for financing from the Fund:

  (a) The costs of a construction or renovation project that are not directly related to energy efficiency measures;

  (b) Costs incurred for the acquisition of financing for the project;

  (c) Costs for equipment or systems that reduce energy costs without also resulting in reductions in the use of energy.

  (4) In cases for which the political subdivision receives a financial incentive or rebate from a utility or other third party for undertaking some or all of the measures in an energy efficiency project, such incentives or rebates are to be deducted from the costs that are eligible for financing from the Fund. No loans made from the Fund may exceed the final cost incurred by the political subdivision for the project after third party financing.

  (5) For an energy efficiency project undertaken as part of a new building construction, only the incremental cost of the project is eligible. For purposes of this section, incremental cost means the portion of the overall cost of a measure or system that exceeds the cost that would have been incurred by meeting the minimum prescriptive requirements of the Utah Energy Code.

  (6) For an energy efficiency project undertaken as part of the renovation of an existing building, building components or systems that are covered by the prescriptive requirements of the Utah Energy Code must exceed the minimum Utah Energy Code requirements in order for their costs to be eligible for a loan from the Fund.