15a NCAC 01u .0203      CRITERIA FOR ENERGY CONSERVATION LOANS

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

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

(2)           The project shall demonstrate in the Technical Analysis the ability to conserve energy through efficient energy use or the utilization of renewable energy resources that results in energy savings based upon a net reduction in the use of nonrenewable resources. The energy conservation measure shall be based on a Technical Analysis report as defined in Rule .0201 of this Section, conducted within the previous year.

(3)           A maximum total loan indebtedness in accordance with G.S. 143B-344.44(b)(2).

(4)           The project shall utilize commercially available energy conservation measures.

(5)           The installation of the energy conservation measure may, at the discretion of the applicant, commence after the Financial Services Division issues the Letter of Intent; however, the origination of the loan shall still be subject to the conditions and limitations of the Program, pursuant to Rule .0203 of this Section.

(6)           The energy conservation measure shall be demonstrated, within the Technical Analysis, to have a payback of less than one over a period of 20 years or less.

(7)           Each energy conservation measure shall be demonstrated to have a payback of less than one over the useful life of the energy conservation measure.

(8)           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;

(l)            other demand-related improvements; and

(m)          recycling projects.

(9)           The energy conservation measure shall meet applicable State air and water quality standards, in accordance with 15A NCAC 02B, 02D, and 02L, which are incorporated by reference, including all subsequent amendments.

History Note:        Authority G.S. 143B-344.44(b)(3); 143B-344.44(b)(4);

Eff. September 1, 2004;

Readopted Eff. June 1, 2021;

Transferred from 01 NCAC 41C .0202 Eff. September 1, 2024.