01 NCAC 41C .0202. CRITERIA FOR ENERGY CONSERVATION LOANS

Energy conservation projects for which the loans are desired must meet the following criteria:

(1)           The building site where the measures are to be installed must be in North Carolina;

(2)           The project must demonstrate the ability to conserve energy through efficient energy use or the utilization of renewable energy resources which results in energy savings based upon a net reduction in the use of nonrenewable resources;

(3)           A maximum total loan indebtedness of five hundred thousand dollars ($500,000) for a single local government organization, nonprofit organizations, commercial business or industrial business at any given time;

(4)           The project must utilize commercially available technologies.

(5)           Experimental or research‑related technologies are not eligible for funding;

(6)           Each energy conservation measure shall address energy efficiency;

(7)           The installation of the energy conservation measure may, at the discretion of the applicant, commence after DOA Fiscal Office issues the Letter of Intent; however, the applicant places itself at risk and is reminded that origination of the Loan is subject to the conditions and limitations of the Program;

(8)           The energy conservation measure must demonstrate a simple payback period of 10 years or less;

(9)           Each energy conservation measure must have a useful life at least equal to its estimated simple payback;

(10)         Eligible energy conservation measures shall fall under one of the following categories:

(a)           lighting systems;

(b)           heating, ventilation, and air conditioning systems;

(c)           electrical distribution systems (motors, variable speed drives, fans, etc.);

(d)           energy management systems;

(e)           boiler efficiency systems;

(f)            energy recovery systems, including on‑site generation of electricity;

(g)           alternate/renewable energy systems;

(h)           building envelope (doors, windows, roofs, etc.);

(i)            industrial process or fabrication systems;

(j)            load management systems;

(k)           fuel conversion projects provided that the simple payback calculations shall be based on the cost of the current fuel;

(l)            other cost‑effective demand or rate‑based improvements; and

(m)          recycling projects;

(11)         The energy conservation measure shall meet applicable state air and water quality standards; and

(12)         The energy conservation measure shall be based on a current Technical Analysis report as defined in Rule .0101 of this Subchapter.

 

History Note:        Authority G.S. 143-345.18(b)(2a); 143-345.18(b)(3);

Eff. September 1, 2004.