§ 75-25-102 — Administration Of Revolving Loan Account -- Rulemaking Authority

75-25-102 . Administration of revolving loan account -- rulemaking authority. (1) The department of environmental quality shall adopt rules establishing:
(a) eligibility criteria, including criteria for defining residences, small businesses, and nonprofit organizations, criteria for defining capital investments for energy conservation purposes, ownership of the alternative energy facility, financial capacity to repay the loans, estimated return on investment in the alternative energy and energy conservation, and other matters that the department considers necessary to ensure repayment of loans and to encourage maximum use of the fund for alternative energy and net metering uses;
(b) processes and procedures for disbursing loans, including the agencies or organizations that are allowed to process the loan application for the department; and
(c) terms and conditions for the loans, including repayment schedules and interest.
(2) The department shall solicit assistance in the development and operation of the program from individuals familiar with financial services and persons knowledgeable in alternative energy systems.
(3) Administrative costs charged to the account may not exceed 10% of the total loans or $23,000 a year, whichever is greater. Legal fees and costs associated with collection of debt on principal are not considered administrative costs.
(4) The loan repayment period may not exceed 10 years. The loans must be made at a low interest rate. The department may set the interest rate at an amount that will cover its administrative costs, but the rate may not be less than 1% a year. The department may seek recovery of the amount of principal loaned in the event of default.

Legislative History

En. Sec. 2, Ch. 591, L. 2001; amd. Sec. 2, Ch. 110, L. 2005; amd. Sec. 41, Ch. 489, L. 2009.