Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 34, chapter 4, Arizona Revised Statutes, is amended by adding article 2, to read:
ARTICLE 2. ARIZONA ENERGY AND WATER SAVINGS
LOAN FUND
START_STATUTE34-431. Definitions
In this article, unless
the context otherwise requires:
1. "Eligible
project" means a project that saves electricity, natural gas, other energy
fuels or water through:
(a) Improvements in the efficiency
of energy or water use, on-site production and use of electricity and useful
thermal energy.
(b) Better operation of buildings
and energy-consuming or water-using equipment in buildings.
2. "Loan
Fund" means the Arizona energy and water savings loan fund that is
established by this article.
3. "Loan
program" means the Arizona state facility energy and water savings program
that is established by this article in order to fund eligible projects in state
facilities.
4. "State
facility" means a facility that is owned or leased by this state, a state-funded university or community college or a state-funded school district.
5. "Technical
assistance" means assisting owners or operators of state facilities by
conducting or assisting with energy or water audits, assisting with preparation
of loan applications, assisting with project implementation, assisting with the
commissioning of building energy management and control systems and other
activities that aid in the design, financing and implementation of eligible
projects. END_STATUTE
START_STATUTE34-432. Arizona energy and water savings loan fund
A. The Arizona energy and water savings loan fund is established consisting of appropriations,
loan repayments and interest and other income received on unobligated monies in
the fund. Monies in the loan fund are continuously appropriated and are exempt
from the provisions of section 35‑190 relating to lapsing of
appropriations.
B. The department
of commerce energy office shall administer and manage the loan fund. The
department of commerce energy office may spend monies from the loan fund for
the following purposes:
1. Awarding
loans under the loan program.
2. Providing
technical assistance under the loan program.
3. Administering
the loan fund and loan program, which includes reviewing loan applications,
prioritizing eligible projects, issuing loans, conducting project inspections,
receiving and monitoring loan repayments, publicizing loan and technical
assistance programs and other activities necessary for the effective
administration of the loan fund and loan program.
C. The
department of commerce energy office may spend up to two hundred fifty thousand
dollars annually for the purposes prescribed in subsection B. The department
of commerce energy office shall use the other monies remaining in the loan fund
to provide loans to state facilities for eligible projects through the loan
program. END_STATUTE
START_STATUTE34-433. Loan program; terms; criteria; loan term; repayment
A. In
consultation with the state department of administration and the school
facilities board, the department of commerce energy office shall determine the
terms under which loans will be made and shall prescribe the interest rate for
loans.
B. The
department of commerce energy office shall provide loans on a competitive basis
based on the merits of proposed projects and criteria that include:
1. The
energy and water savings that are attributable to an eligible project.
2. The
annual energy and water cost savings that are attributable to an eligible
project.
3. The
financial need of the state facility owner or operator.
4. The
environmental and other benefits to this state and the local community that are
attributable to an eligible project.
5. The
projected energy and water cost payback of an eligible project.
6. Other
factors as determined by the department of commerce energy office.
C. The
department of commerce energy office shall prescribe the loan term for each
loan made under this section. The loan term shall be at least two years but
not more than twenty-five years or the expected life of the installed project,
whichever is shorter. The department of commerce energy office shall prescribe
the loan term so that scheduled loan repayments in a year shall not be greater
than the expected energy, water and other cost savings attributable to the
eligible project during that year.
D. The
department of commerce energy office shall provide loans for eligible projects
including:
1. Retrofits
or improvements to an existing state facility.
2. Energy or
water efficiency upgrades in new state buildings if the loan pays all or a portion
of the incremental cost to improve the efficiency of the building above
standard practice and is limited to three per cent of the total building cost.
E. An owner
or operator of a state facility that receives a loan under this section shall
repay the principal and interest on the loan from the agency's general budget
or from its utilities budget.
F. The owner
or operator of a state facility may retain up to twenty per cent of the annual
energy and water cost savings for up to five fiscal years or the term of the
loan, whichever is shorter, if the balance of the annual energy and water cost
savings are sufficient to repay the loan.
G. The
department of commerce energy office shall make monies from repayment of loans
that are deposited in the loan fund available for additional eligible projects
in state facilities.
H. Any
interest or other income received by the department of commerce energy office
on unobligated monies in the loan fund remain in the loan fund. END_STATUTE
START_STATUTE34-434. Technical assistance
A. The
department of commerce energy office may contract with a qualified private firm
to perform technical assistance.
B. The
department of commerce energy office shall issue guidelines for energy or water
audits and ensure that energy audits used to identify eligible projects are of
acceptable quality. END_STATUTE
START_STATUTE34-435. Records and reporting
A. The
department of commerce energy office shall establish and maintain records of
loans from, and repayments to, the loan fund.
B. The
department of commerce energy office shall submit a report to the governor, the
president of the senate and the speaker of the house of representatives on or
before October 1 of each year that shows active loans made from the loan fund,
the status of loan repayments, energy and water savings, cost savings, and
other benefits resulting from eligible projects implemented by loan
recipients. The department of commerce energy office shall provide a copy of
this report to the secretary of state and the director of the Arizona state
library, archives and public records. END_STATUTE
START_STATUTE34-436. Program termination
The program established
by this article ends on July 1, 2017 pursuant to section 41-3102. END_STATUTE
Sec. 2. Appropriation; Arizona energy and water savings loan fund;
exemption
A. The sum of $25,000,000 is appropriated from the
state general fund in fiscal year 2007-2008 to the Arizona energy and water
savings loan fund established by section 34-432, Arizona Revised Statutes, as
added by this act, for the purposes prescribed in this act.
B. The appropriation made in subsection A of this
section is exempt from the provisions of section 35-190, Arizona Revised
Statutes, relating to lapsing of appropriations.
