APPROVED RULESThis Section includes the <strong>Register</strong> Notice citation to rules approved by the Rules Review Commission (RRC) at its meeting August18, 2004, and reported to the Joint Legislative <strong>Administrative</strong> Procedure Oversight Committee pursuant to G.S. 150B-21.16. Thefull text <strong>of</strong> rules are published below when the rules have been approved by RRC in a form different from that originally noticedin the <strong>Register</strong> or when no notice was required to be published in the <strong>Register</strong>. The rules published in full text are identified byan * in the listing <strong>of</strong> approved rules. Statutory Reference: G.S. 150B-21.17.These rules have been entered into the North Carolina <strong>Administrative</strong> CodeAPPROVED RULE CITATIONREGISTER CITATION TO THENOTICE OF TEXT01 <strong>NC</strong>AC 41C .0101* 18:<strong>19</strong> <strong>NC</strong>R01 <strong>NC</strong>AC 41C .0201-.0202* 18:<strong>19</strong> <strong>NC</strong>R01 <strong>NC</strong>AC 41C .0209* 18:<strong>19</strong> <strong>NC</strong>R01 <strong>NC</strong>AC 41C .0301-.0303* 18:<strong>19</strong> <strong>NC</strong>R04 <strong>NC</strong>AC 03B .0103* 18:20 <strong>NC</strong>R11 <strong>NC</strong>AC 01 .0425* 18:20 <strong>NC</strong>R15A <strong>NC</strong>AC 02B .0304 18:18 <strong>NC</strong>R15A <strong>NC</strong>AC 18D .0102* 18:<strong>19</strong> <strong>NC</strong>R15A <strong>NC</strong>AC 18D .0201* 18:<strong>19</strong> <strong>NC</strong>R21 <strong>NC</strong>AC 14H .0107* 18:<strong>19</strong> <strong>NC</strong>R25 <strong>NC</strong>AC 01C .10<strong>06</strong> (was 01D .0518)* 18:08 <strong>NC</strong>R25 <strong>NC</strong>AC 01D .1402* 18:08 <strong>NC</strong>R25 <strong>NC</strong>AC 01I .2005* 18:08 <strong>NC</strong>RTITLE 1 - DEPARTMENT OF ADMINISTRATION01 <strong>NC</strong>AC 41C .0101 DEFINITIONSFor the purposes <strong>of</strong> this Chapter, the following definitions apply:(1) "Allowable Costs," origination cost, up frontcost, letter <strong>of</strong> credit fee (first year),engineering design fee, and implementation <strong>of</strong>eligible energy conservation measure. Allallowable costs to be included in the loan mustbe incurred after the execution date <strong>of</strong> theLetter <strong>of</strong> Intent;(2) "Applicant," any commercial or industrialbusiness applying for a loan under theProgram;(3) "Btu," British thermal unit; the amount <strong>of</strong> heatrequired to raise the temperature <strong>of</strong> one pound<strong>of</strong> water one degree Fahrenheit at or near 39.2degrees F;(4) "Btu/sq. ft/yr.," Btu per square foot per year;an index <strong>of</strong> building energy use, calculated bydividing the total annual energy use <strong>of</strong> abuilding by its square foot area;(5) "Commercial or industrial business," acommercial or industrial concern whichprovides goods or services for pr<strong>of</strong>it from alocation in North Carolina;(6) "Credit worthiness", ability <strong>of</strong> applicant tomeet lending institution's standard lendingcriteria;(7) "DOA Fiscal Department," the FiscalManagement Department, N. C. Department <strong>of</strong>Administration;(8) "Energy conservation measure," acommercially available energy efficientdevice, technique or technology, designed toreduce energy consumption, peak demand, oras utility costs at an existing or proposedcommercial or industrial business;(9) "Letter <strong>of</strong> Intent," written notification <strong>of</strong> theintent <strong>of</strong> the Department to originate the Loan,subject to the conditions and limitations <strong>of</strong> theProgram;(10) "Payback," the total energy conservationmeasure costs (including installation,equipment and engineering design) divided bythe annual estimated utility cost savings;(11) "Program," the Energy Improvement LoanProgram;(12) "Recycling Projects," projects which extractand reprocess energy, water and materials forreuse in buildings, transportation systems,environmental management, consumerproducts and/or outreach;(13) "Renewables," solar, wind, biomass orhydropower resources;(14) "Repayment Schedule," a schedule <strong>of</strong> periodicpayments based upon simple payback asprojected in the Technical Analysis rounded tothe next quarter. Prepayments shall reduce the<strong>19</strong>:<strong>06</strong> NORTH CAROLINA REGISTER September 15, 2004632
APPROVED RULESterm <strong>of</strong> the loan with periodic paymentsremaining unchanged;(15) "State Energy <strong>Office</strong>," the State Energy<strong>Office</strong>, N. C. Department <strong>of</strong> Administration;(16) "Technical Analysis ("TA")", a report thatidentifies and analyzes cost-effective capitalenergy conservation improvements that theapplicant wishes to implement. The TechnicalAnalysis need address only the specific energyconservation measures for which the loan isbeing requested. Each energy conservationmeasure analyzed shall be the subject <strong>of</strong> asingle recommendation incorporating technicaland economic analyses <strong>of</strong> the measure,considering building, process and equipmentcharacteristics and energy use patternspertinent to the improvement. The TechnicalAnalysis must include the estimated cost <strong>of</strong> theimplementation, a construction schedule, andexpected energy savings;(17) "Technical analyst," a person with experiencein energy conservation to conduct technicalanalysis for the purposes <strong>of</strong> this article;(18) "Third Party Technical Analyst", a technicalanalysis performed by an agency or someonewho has neither financial interest in thecommercial business, non-pr<strong>of</strong>it institution,local government institution, or industrialbusiness nor in the sale and installation <strong>of</strong> anyproposed energy conservation measure;however, the Technical Analyst is permitted toprovide construction management services toan approved applicant;(<strong>19</strong>) "Unallowable costs," costs associated withTechnical Analysis preparation, costsassociated with pre-application conference,costs incurred prior to execution date <strong>of</strong> Letter<strong>of</strong> Intent, costs associated with loanapplication (i.e., consultation fees, TechnicalAnalysis modifications); and(20) "Up front cost," the prepaid charge, if any, at arate to be determined by the DOA FiscalDepartment sufficient to cover the costs <strong>of</strong>administering and servicing the program.History Note: Authority G.S. 143-345.18(b)(2a);143-345.18(b)(3);Eff. September 1, 2004.01 <strong>NC</strong>AC 41C .0201 ELIGIBILITYThe following classes <strong>of</strong> applicants are eligible to apply forloans:(1) A local government organization, nonpr<strong>of</strong>itorganization, commercial or industrialbusiness located in North Carolina that ownsthe existing building or site <strong>of</strong> plannedconstruction where the energy conservationmeasures will be made, or which has a lease ormanagement agreement for such proposedbuilding site or building extending beyond theterm <strong>of</strong> the loan; provided, however, thatwhere the owner <strong>of</strong> the building authorizes theapproved energy conservation measures, thelease or management agreement need notextend beyond the term <strong>of</strong> the loan.(2) A Nonpr<strong>of</strong>it organization, commercial orindustrial business relocating to NorthCarolina that owns the site <strong>of</strong> plannedconstruction where the energy conservationmeasures will be made, or which has a lease ormanagement agreement for such proposedbuilding or building site extending beyond theterm <strong>of</strong> the loan; provided, however, thatwhere the owner <strong>of</strong> the building or buildingsite authorizes the approved energyconservation measures, the lease ormanagement agreement need not extendbeyond the term <strong>of</strong> the loan.History Note: Authority G.S. 143-345.18(b)(2a);143-345.18(b)(3);Eff. September 1, 2004.01 <strong>NC</strong>AC 41C .0202 CRITERIA FOR ENERGYCONSERVATION LOANSEnergy conservation projects for which the loans are desiredmust meet the following criteria:(1) The building site where the measures are to beinstalled must be in North Carolina;(2) The project must demonstrate the ability toconserve energy through efficient energy useor the utilization <strong>of</strong> renewable energyresources which results in energy savingsbased upon a net reduction in the use <strong>of</strong>nonrenewable resources;(3) A maximum total loan indebtedness <strong>of</strong> fivehundred thousand dollars ($500,000) for asingle local government organization,nonpr<strong>of</strong>it organizations, commercial businessor industrial business at any given time;(4) The project must utilize commerciallyavailable technologies.(5) Experimental or research-related technologiesare not eligible for funding;(6) Each energy conservation measure shalladdress energy efficiency;(7) The installation <strong>of</strong> the energy conservationmeasure may, at the discretion <strong>of</strong> theapplicant, commence after DOA Fiscal <strong>Office</strong>issues the Letter <strong>of</strong> Intent; however, theapplicant places itself at risk and is remindedthat origination <strong>of</strong> the Loan is subject to theconditions and limitations <strong>of</strong> the Program;(8) The energy conservation measure mustdemonstrate a simple payback period <strong>of</strong> 10years or less;<strong>19</strong>:<strong>06</strong> NORTH CAROLINA REGISTER September 15, 2004633