01 NCAC 41C .0101          DEFINITIONS

For the purposes of this Chapter, the following definitions apply:

(1)           "Allowable Costs," origination cost, up front cost, letter of credit fee (first year), engineering design fee, and implementation of eligible energy conservation measure.  All allowable costs to be included in the loan must be incurred after the execution date of the Letter of Intent;

(2)           "Applicant," any commercial or industrial business applying for a loan under the Program;

(3)           "Btu," British thermal unit; the amount of heat required to raise the temperature of one pound of water one degree Fahrenheit at or near 39.2 degrees F;

(4)           "Btu/sq. ft/yr.," Btu per square foot per year; an index of building energy use, calculated by dividing the total annual energy use of a building by its square foot area;

(5)           "Commercial or industrial business," a commercial or industrial concern which provides goods or services for profit from a location in North Carolina;

(6)           "Credit worthiness", ability of applicant to meet lending institution's standard lending criteria;

(7)           "DOA Fiscal Department," the Fiscal Management Department, N. C. Department of Administration;

(8)           "Energy conservation measure," a commercially available energy efficient device, technique or technology, designed to reduce energy consumption, peak demand, or as utility costs at an existing or proposed commercial or industrial business;

(9)           "Letter of Intent," written notification of the intent of the Department to originate the Loan, subject to the conditions and limitations of the Program;

(10)         "Payback," the total energy conservation measure costs (including installation, equipment and engineering design) divided by the annual estimated utility cost savings;

(11)         "Program," the Energy Improvement Loan Program;

(12)         "Recycling Projects," projects which extract and reprocess energy, water and materials for reuse in buildings, transportation systems, environmental management, consumer products and/or outreach;

(13)         "Renewables," solar, wind, biomass or hydropower resources;

(14)         "Repayment Schedule," a schedule of periodic payments based upon simple payback as projected in the Technical Analysis rounded to the next quarter. Prepayments shall reduce the term of the loan with periodic payments remaining unchanged;

(15)         "State Energy Office," the State Energy Office, N. C. Department of Administration;

(16)         "Technical Analysis ("TA")", a report that identifies and analyzes cost‑effective capital energy conservation improvements that the applicant wishes to implement.  The Technical Analysis need address only the specific energy conservation measures for which the loan is being requested.  Each energy conservation measure analyzed shall be the subject of a single recommendation incorporating technical and economic analyses of the measure, considering building, process and equipment characteristics and energy use patterns pertinent to the improvement.  The Technical Analysis must include the estimated cost of the implementation, a construction schedule, and expected energy savings;

(17)         "Technical analyst," a person with experience in energy conservation to conduct technical analysis for the purposes of this article;

(18)         "Third Party Technical Analyst", a technical analysis performed by an agency or someone who has neither financial interest in the commercial business, non-profit institution, local government institution, or industrial business nor in the sale and installation of any proposed energy conservation measure; however, the Technical Analyst is permitted to provide construction management services to an approved applicant;

(19)         "Unallowable costs," costs associated with Technical Analysis preparation, costs associated with pre‑application conference, costs incurred prior to execution date of Letter of Intent, costs associated with loan application (i.e., consultation fees, Technical Analysis modifications); and

(20)         "Up front cost," the prepaid charge, if any, at a rate to be determined by the DOA Fiscal Department sufficient to cover the costs of administering and servicing the program.


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

Eff. September 1, 2004.