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H.B. 351

             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      local 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 to local school districts to finance


             59      energy efficiency projects in local 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; or
             64          (ii) make a loan from the fund with a term of less than two years or more than 12 years.
             65          (5) (a) (i) Each school district seeking a loan shall submit an application to the board in
             66      the form and containing the information that the board requires, which shall include the plans
             67      and specifications for the proposed energy efficiency project.
             68          (ii) In the application, the school district may request a loan to cover all or part of the
             69      cost of an energy efficiency project.
             70          (b) If an application is rejected, the board shall notify the applicant stating the reasons
             71      for the rejection.
             72          (6) (a) By following the procedures and requirements of Title 63, Chapter 46a, Utah
             73      Administrative Rulemaking Act, the board shall make rules establishing criteria for:
             74          (i) determining eligibility for loans; and
             75          (ii) determining appropriate priorities among projects.
             76          (b) In making rules governing determining priorities for eligible projects, the board
             77      may consider:
             78          (i) possible additional sources of revenue;
             79          (ii) the feasibility and practicality of the project;
             80          (iii) the energy savings attributable to an eligible energy efficiency project;
             81          (iv) the annual energy cost savings attributable to an eligible energy efficiency project;
             82          (v) the projected energy cost payback of an eligible energy efficiency project;
             83          (vi) the financial need of the public facility owner;
             84          (vii) the environmental and other benefits to the state and local community attributable
             85      to an eligible energy efficiency project; and
             86          (viii) the availability of federal funds for the project.
             87          (7) (a) In approving a project, the board shall:
             88          (i) review the loan application and the plans and specifications for the project;
             89          (ii) determine whether or not to grant the loan by applying its eligibility criteria; and


             90          (iii) if the loan is granted, prioritize the project by applying its priority criteria.
             91          (b) The board may condition approval of a loan request and the availability of funds on
             92      assurances from the school district that the board considers necessary to ensure that:
             93          (i) the proceeds of the loan will be used to pay the cost of the project; and
             94          (ii) the project will be completed.
             95          (8) Employees of the state energy program shall serve as staff to the board when it
             96      performs the duties established in this section.
             97          Section 3. Section 63A-3-205 is amended to read:
             98           63A-3-205. Revolving loan funds -- Standards and procedures -- Annual report.
             99          (1) As used in this section, "revolving loan fund" means:
             100          (a) the Water Resources Conservation and Development Fund, created in Section
             101      73-10-24 ;
             102          (b) the Water Resources Construction Fund, created in Section 73-10-8 ;
             103          (c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22 ;
             104          (d) the Clean Fuel Conversion Funds, created in Title 19, Chapter 1, Part 4, Clean
             105      Fuels [Conversion] and Vehicle Technology Program Act;
             106          (e) the Water Development Security [Account] Fund and its subaccounts created in
             107      Section 73-10c-5 ;
             108          (f) the Agriculture Resource Development Fund, created in Section 4-18-6 ;
             109          (g) the Utah Rural Rehabilitation Fund, created in Section 4-19-4 ;
             110          (h) the Permanent Community Impact Fund, created in Section 9-4-303 ;
             111          (i) the Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3 ;
             112          (j) the Uintah Basin Revitalization Fund, created in Section 9-10-102 ; [and]
             113          (k) the Navajo Revitalization Fund, created in Section 9-11-104 [.]; and
             114          (l) the Energy Efficiency Fund created in Section 53A-20b-102 .
             115          (2) The division shall for each revolving loan fund:
             116          (a) make rules establishing standards and procedures governing:
             117          (i) payment schedules and due dates;
             118          (ii) interest rate effective dates;
             119          (iii) loan documentation requirements; and
             120          (iv) interest rate calculation requirements; and


             121          (b) make an annual report to the Legislature containing:
             122          (i) the total dollars loaned by that fund during the last fiscal year;
             123          (ii) a listing of each loan currently more than 90 days delinquent, in default, or that was
             124      restructured during the last fiscal year;
             125          (iii) a description of each project that received money from that revolving loan fund;
             126          (iv) the amount of each loan made to that project;
             127          (v) the specific purpose for which the proceeds of the loan were to be used, if any;
             128          (vi) any restrictions on the use of the loan proceeds;
             129          (vii) the present value of each loan at the end of the fiscal year calculated using the
             130      interest rate paid by the state on the bonds providing the revenue on which the loan is based or,
             131      if that is unknown, on the average interest rate paid by the state on general obligation bonds
             132      issued during the most recent fiscal year in which bonds were sold; and
             133          (viii) the financial position of each revolving loan fund, including the fund's cash
             134      investments, cash forecasts, and equity position.
             135          Section 4. Appropriation.
             136          There is appropriated for fiscal year 2007-08 only, $5,000,000 to the Energy Efficiency
             137      Fund to capitalize the fund.




Legislative Review Note
    as of 1-23-07 4:44 PM


Office of Legislative Research and General Counsel


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