Section 10093.4 - Eligible Efficiency Agreements(a) The agreement must be for improvements to an existing building and may not be for the construction or purchase of a building.(b) The agreement must meet the definition of one of the following products: (1) "Eligible Lease" or "Eligible Equipment Financing Agreement" is an agreement that provides the Eligible Affordable Multifamily Customer with the use of Energy Saving Measures in exchange for payments in amounts that are due according to a schedule established in the agreement. The payments must result in full satisfaction of the obligation. Such payments are made to the Finance or Service Entity or its assignee for a specified term. Title to the equipment may transfer at the beginning or end of the term.(2) "Eligible Loan" is an agreement that provides the Eligible Affordable Multifamily Customer with ownership of Energy Saving Measures in exchange for payments in amounts that are due according to a schedule established in the agreement. Such payments must result in full satisfaction of the obligation. Such payments are made to the Finance or Service Entity or its assignee for a specified term. Eligible Loans must be closed-end loans; no revolving lines of credit will qualify.(3) "Eligible Savings-Based Payment Agreement" is an agreement that provides the Eligible Affordable Multifamily Customer with the use of Energy Saving Measures in exchange for regular payments to the Finance or Service Entity or the Finance or Service Entity's assignee. The term may be specified by a number of months or may run until payments have reached a specified amount. The agreement must satisfy each of the following criteria:(A) Savings will be measured and verified no less than annually;(B) Total monthly energy and efficiency charges for the Eligible Affordable Multifamily Customer must be projected to be "cash flow positive," based on industry-accepted estimates, allowing for seasonal variations, the combined monthly energy expense (gas and electric) along with all projected monthly Eligible Savings-Based Payment Agreement charges is projected to be less than the Eligible Affordable Multifamily Customer's pre-project monthly energy expense;(C) The Eligible Affordable Multifamily Customer will share in benefits if actual savings exceed projected savings; and(D) The Eligible Affordable Multifamily Customer does not bear risk in the event that savings are less than projected.(4) "Eligible Service Agreement" is an agreement that provides the Eligible Affordable Multifamily Customer with the use of Energy Saving Measures as well as ongoing service and maintenance of that equipment in exchange for regular payments to the Finance or Service Entity or the Finance or Service Entity's assignee for a specified term. Title does not transfer to the Affordable Multifamily Customer during the term of the agreement. The agreement must include either: (A) A guarantee of functionality for any Energy Saving Measures and Non-ESMs; or(B) A guarantee of energy savings. Equipment functionality or energy savings must be measured no less than annually.(c) Disclosure. For the purposes of this Section, Savings-Based Payment Agreements will satisfy the requirements set forth in subsections (1) and (2) below with the Finance or Service Entity's provision of a good-faith estimate of the total cost of the Project, based on industry-accepted methods and assumptions used to estimate energy savings, due to the fact that monthly payments will be variable under these agreements. For all financial products, the Finance or Service Entity must disclose to the Eligible Affordable Multifamily Customer either: (1) An annual percentage rate (APR) (inclusive of any fees) as well as any advance payments which the Eligible Affordable Multifamily Customer is required to pay; or(2) The total cost of the Project for the Eligible Affordable Multifamily Customer comprised of monthly payments multiplied by the number of months in the agreement plus any fees [(monthly payments * number of months in the agreement) + fees]. Monthly payments should be inclusive of, but not limited to, equipment and installation repayment, and any charges for financing, services, maintenance, or oversight of equipment.(d) Other Provisions. In addition to meeting the specific definitions of either an Eligible Lease or Eligible Equipment Financing Agreement, Eligible Loan, Eligible Service Agreement, or Eligible Savings-Based Payment Agreement, the following provisions apply to Eligible Efficiency Agreements: (1) Interest rates, if applicable, may be fixed or variable.(2) Refinancing agreements are acceptable only if both the original and refinancing agreements are for the same Project and the Eligible Efficiency Agreement is submitted for enrollment in the Program within 180 calendar days after the Scope of Work Completion Date pursuant to Section 10093.6(a)(2).(3) The agreement must not be a revolving line of credit.(4) Fees must be reasonable and in accordance with industry standards.(5) The security interest must not be real property except for a UCC-1 fixture filing.(6) The Claim-Eligible Financed Amount of the Enrolled Efficiency Agreement must not be enrolled in a substantially similar program.(7) In addition to the general requirements stated above, terms and characteristics of the Eligible Efficiency Agreement must be consistent with the product(s) described by the Finance or Service Entity in its application to participate in the Program pursuant to Section 10093.2(c)(3) and approved by the Authority.Cal. Code Regs. Tit. 4, § 10093.4
1. New section filed 5-9-2019 as a deemed emergency pursuant to Public Resources Code section 26009; operative 5-9-2019 (Register 2019, No. 19). A Certificate of Compliance must be transmitted to OAL by 11-5-2019 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 10-31-2019 as a deemed emergency pursuant to Public Resources Code section 26009; operative 11-6-2019 pursuant to Government Code section 11346.1(d) (Register 2019, No. 44). A Certificate of Compliance must be transmitted to OAL by 2-4-2020 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 1-30-2020 as a deemed emergency pursuant to Public Resources Code section 26009; operative 2-5-2020 pursuant to Government Code section 11346.1(d) (Register 2020, No. 5). A Certificate of Compliance must be transmitted to OAL by 5-5-2020 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 1-30-2020 order, including amendment of section heading and section, transmitted to OAL 5-5-2020 and filed 6-17-2020; amendments operative 6-17-2020 pursuant to Government Code section 11343.4(b)(3) (Register 2020, No. 25). Note: Authority cited: Sections 26006 and 26009, Public Resources Code. Reference: Sections 26002, 26002.5, 26003, 26006, 26011 and 26040, Public Resources Code.
1. New section filed 5-9-2019 as a deemed emergency pursuant to Public Resources Code section 26009; operative 5/9/2019 (Register 2019, No. 19). A Certificate of Compliance must be transmitted to OAL by 11-5-2019 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 10-31-2019 as a deemed emergency pursuant to Public Resources Code section 26009; operative 11/6/2019 pursuant to Government Code section 11346.1(d) (Register 2019, No. 44). A Certificate of Compliance must be transmitted to OAL by 2-4-2020 or emergency language will be repealed by operation of law on the following day.
3. New section refiled 1-30-2020 as a deemed emergency pursuant to Public Resources Code section 26009; operative 2/5/2020 pursuant to Government Code section 11346.1(d) (Register 2020, No. 5). A Certificate of Compliance must be transmitted to OAL by 5-5-2020 or emergency language will be repealed by operation of law on the following day.
4. Certificate of Compliance as to 1-30-2020 order, including amendment of section heading and section, transmitted to OAL 5-5-2020 and filed 6-17-2020; amendments operative 6/17/2020 pursuant to Government Code section 11343.4(b)(3) (Register 2020, No. 25).