H.B. 351 Enrolled

1

REVOLVING LOAN FUND FOR CERTAIN
2 ENERGY EFFICIENT PROJECTS
3 2007 GENERAL SESSION
4 STATE OF UTAH
5 Chief Sponsor: Roger E. Barrus
6 Senate Sponsor: Dan R. Eastman
7
8 LONG TITLE
9 General Description:
10 This bill creates a revolving loan fund for use by school districts to improve energy
11 efficiency in school district buildings.
12 Highlighted Provisions:
13 This bill:
14 . establishes a revolving loan fund to fund energy efficiency projects in buildings in
15 school districts;
16 . establishes the revenue and use of the fund;
17 . authorizes the Board of Utah Geologic Survey to make rules establishing eligibility
18 and prioritization criteria for disbursing monies from the fund;
19 . grants the board other powers and directions regarding making loans from the fund;
20 and
21 . adds the new fund to the list of revolving loan funds for which the Division of
22 Finance exercises some oversight and jurisdiction.
23 Monies Appropriated in this Bill:
24 This bill appropriates:
25 . $5,000,000 for fiscal year 2007-2008 only, to the Energy Efficiency Fund.
26 Other Special Clauses:
27 None
28 Utah Code Sections Affected:
29 AMENDS:

30 63A-3-205, as last amended by Chapter 294, Laws of Utah 2005
31 ENACTS:
32 53A-20b-101, Utah Code Annotated 1953
33 53A-20b-102, Utah Code Annotated 1953
34
35 Be it enacted by the Legislature of the state of Utah:
36 Section 1. Section 53A-20b-101 is enacted to read:
37 CHAPTER 20b. LOAN PROGRAMS
38 Part 1. Loan Program for Energy Efficiency
39 53A-20b-101. Title.
40 This chapter is known as "Loan Programs."
41 Section 2. Section 53A-20b-102 is enacted to read:
42 53A-20b-102. Energy Efficiency Fund -- Contents -- Use of fund monies.
43 (1) As used in this section:
44 (a) "Board" means the Board of the Utah Geological Survey.
45 (b) "Energy code" means the energy efficiency code adopted by the Division of
46 Occupational and Professional Licensing under Section 58-56-4 .
47 (c) "Energy efficiency project" means:
48 (i) for existing buildings, a retrofit to improve energy efficiency; or
49 (ii) for new buildings, an enhancement to improve energy efficiency beyond the
50 minimum required by the energy code.
51 (d) "Fund" means the Energy Efficiency Fund created by this part.
52 (2) There is created a revolving loan fund known as the Energy Efficiency Fund.
53 (3) The fund shall consist of:
54 (a) monies appropriated to it by the Legislature;
55 (b) monies received for the repayment of loans made from the fund;
56 (c) monies made available to the state for energy efficiency from any source; and
57 (d) interest earned on the fund.

58 (4) (a) The board shall make loans from the fund only to school districts to finance
59 energy efficiency projects in school district buildings, including paying the costs of
60 construction, engineering, investigation, inspection, and other related expenses.
61 (b) The board may not:
62 (i) make loans from the fund to finance a school district's compliance with the energy
63 code in the construction of a new building;
64 (ii) make a loan from the fund with a term of less than two years or more than 12 years;
65 or
66 (iii) make loans from the fund to any entity other than a school district.
67 (5) (a) (i) Each school district seeking a loan shall submit an application to the board in
68 the form and containing the information that the board requires, which shall include the plans
69 and specifications for the proposed energy efficiency project.
70 (ii) In the application, the school district may request a loan to cover all or part of the
71 cost of an energy efficiency project.
72 (b) If an application is rejected, the board shall notify the applicant stating the reasons
73 for the rejection.
74 (6) (a) By following the procedures and requirements of Title 63, Chapter 46a, Utah
75 Administrative Rulemaking Act, the board shall make rules establishing criteria for:
76 (i) determining eligibility for loans; and
77 (ii) determining appropriate priorities among projects.
78 (b) In making rules governing determining priorities for eligible projects, the board
79 may consider:
80 (i) possible additional sources of revenue;
81 (ii) the feasibility and practicality of the project;
82 (iii) the energy savings attributable to an eligible energy efficiency project;
83 (iv) the annual energy cost savings attributable to an eligible energy efficiency project;
84 (v) the projected energy cost payback of an eligible energy efficiency project;
85 (vi) the financial need of the public facility owner;

86 (vii) the environmental and other benefits to the state and local community attributable
87 to an eligible energy efficiency project; and
88 (viii) the availability of federal funds for the project.
89 (7) (a) In approving a project, the board shall:
90 (i) review the loan application and the plans and specifications for the project;
91 (ii) determine whether or not to grant the loan by applying its eligibility criteria; and
92 (iii) if the loan is granted, prioritize the project by applying its priority criteria.
93 (b) The board may condition approval of a loan request and the availability of funds on
94 assurances from the school district that the board considers necessary to ensure that:
95 (i) the proceeds of the loan will be used to pay the cost of the project; and
96 (ii) the project will be completed.
97 (8) Employees of the state energy program shall serve as staff to the board when it
98 performs the duties established in this section.
99 Section 3. Section 63A-3-205 is amended to read:
100 63A-3-205. Revolving loan funds -- Standards and procedures -- Annual report.
101 (1) As used in this section, "revolving loan fund" means:
102 (a) the Water Resources Conservation and Development Fund, created in Section
103 73-10-24 ;
104 (b) the Water Resources Construction Fund, created in Section 73-10-8 ;
105 (c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22 ;
106 (d) the Clean Fuel Conversion Funds, created in Title 19, Chapter 1, Part 4, Clean
107 Fuels [Conversion] and Vehicle Technology Program Act;
108 (e) the Water Development Security [Account] Fund and its subaccounts created in
109 Section 73-10c-5 ;
110 (f) the Agriculture Resource Development Fund, created in Section 4-18-6 ;
111 (g) the Utah Rural Rehabilitation Fund, created in Section 4-19-4 ;
112 (h) the Permanent Community Impact Fund, created in Section 9-4-303 ;
113 (i) the Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3 ;

114 (j) the Uintah Basin Revitalization Fund, created in Section 9-10-102 ; [and]
115 (k) the Navajo Revitalization Fund, created in Section 9-11-104 [.]; and
116 (l) the Energy Efficiency Fund created in Section 53A-20b-102 .
117 (2) The division shall for each revolving loan fund:
118 (a) make rules establishing standards and procedures governing:
119 (i) payment schedules and due dates;
120 (ii) interest rate effective dates;
121 (iii) loan documentation requirements; and
122 (iv) interest rate calculation requirements; and
123 (b) make an annual report to the Legislature containing:
124 (i) the total dollars loaned by that fund during the last fiscal year;
125 (ii) a listing of each loan currently more than 90 days delinquent, in default, or that was
126 restructured during the last fiscal year;
127 (iii) a description of each project that received money from that revolving loan fund;
128 (iv) the amount of each loan made to that project;
129 (v) the specific purpose for which the proceeds of the loan were to be used, if any;
130 (vi) any restrictions on the use of the loan proceeds;
131 (vii) the present value of each loan at the end of the fiscal year calculated using the
132 interest rate paid by the state on the bonds providing the revenue on which the loan is based or,
133 if that is unknown, on the average interest rate paid by the state on general obligation bonds
134 issued during the most recent fiscal year in which bonds were sold; and
135 (viii) the financial position of each revolving loan fund, including the fund's cash
136 investments, cash forecasts, and equity position.
137 Section 4. Appropriation.
138 There is appropriated from the Uniform School Fund for fiscal year 2007-08 only,
139 $5,000,000 to the Energy Efficiency Fund to capitalize the fund.