R362-3-7. Loan Terms

  (1) The maximum amount that may be approved by the Advisor or Director for any single energy efficiency project is $1,000,000. The minimum amount that may be approved is $5,000.

  (2) The final value of any loan may vary from the Advisor or Director-approved amount according to the actual incursion of costs by the political subdivision. In cases where costs have exceeded those presented in the initial application, a political subdivision may request that the Advisor or Director increase its loan award, subject to the limitations of subsections (1) and (2) above.

  (3) After approval of a loan application by the Advisor or Director, a political subdivision has one year in which to complete the energy efficiency project. If at the end of one year a political subdivision is unable to meet this time limitation, it may request an extension from the Office of no more than six additional months.

  (4) Loan amounts from the Fund will be reserved for periodic disbursement upon invoice approval at the discretion of the Office. Expenditures will be documented in each quarterly progress report, and the final 10% withheld pending a determination of substantial completion by the Office.

  (5) Once a project has been completed, the political subdivision shall provide the Office documentation of actual costs incurred, such as invoices from contractors, as well as information on any third party financial incentives received. The Office will use this information to determine the actual cost of the project measures approved by the Advisor or Director.

  (6) The final loan amount will be equal to actual costs incurred for the project minus the value of any third party incentives received unless

  (a) This amount exceeds $1,000,000, in which case the amount of the loan will be set at $1,000,000; or

  (b) This amount exceeds the amount approved by the Advisor or Director, in which case the loan amount will be set at the amount originally approved by the Advisor or Director; or

  (c) This amount exceeds the amount approved by the Advisor or Director and the Advisor or Director increases the loan award at the request of the political subdivision.

  (7) At the discretion of the Office, interest will be charged to political subdivisions receiving loans for energy efficiency projects from the Fund at or below market interest rates.

  (8) An administrative fee may be charged to loan recipients to defray the cost of servicing loan accounts.

  (9) Loan repayment periods will be set to any term desired by the applicant between two and twelve years at the discretion of the Office. The loan repayment period for a specific energy efficiency project begins with the first day of the next quarter after all of the loan funds have been disbursed.

  (10) Loan repayments will be due at the beginning of each quarter.

  (11) Quarterly loan repayment amounts will be calculated using a standard amortization schedule.

  (12) Political subdivisions that are approved for a loan award will enter into a contract with the Office that specifies all terms applying to the loan, including the terms specified in this rule and standard contract terms for contracts and loans currently in effect for the State of Utah.