Definitions

PURPOSE: This rule provides definitions of special terms used in conjunction with the Energy Set-Aside Fund. (1) Agricultural entity means a farm, ranch, or corporation engaged in growing, harvesting, or handling of crops, natural fibers, fruits, vegetables, plants, or trees, or feeding or care of livestock, poultry, or fish. (2) Applicant means any school, hospital, small business, local government, agricultural entity, not-for-profit organization, business, commercial, or industrial entity or other energy-using sector or entity authorized by the department through administrative rule, which submits an application for loans or financial assistance to the department. (3) Application cycle means the period or periods of time each year that the department shall accept applications for financial assistance under the provisions of sections 640.651 to 640.686, RSMo. (4) Board means the Missouri Board for Architects, Professional Engineers, Professional Land Surveyors and Professional Landscape Architects. (5) Authorized official means an individual authorized to obligate an organization or entity. (6) Borrower means a recipient of a loan or other financial assistance program funds subsequent to the execution of a loan or financial assistance documents with the department or other applicable parties, provided that a building owned by the state or an agency thereof, other than a state college or state university, shall not be eligible for loans or financial assistance pursuant to sections 640.651 to 640.686, RSMo. (7) Building means— (A) An existing structure; or (B) Proposed new construction; or (C) Any applicant-owned, group of closely situated structural units that are centrally metered or served by a central utility plant; or (D) An eligible portion of any of these that includes an energy-using system. (8) Business, industrial, and commercial entities mean corporations or other entities registered with the secretary of state to produce, manufacture, sell, or distribute goods or commodities; or to perform or deliver services. (9) Department means the Department of Natural Resources. (10) Director means the director of the Department of Natural Resources. (11) Division means the Department of Natural Resources’ Division of Energy. (12) Energy conservation measure (or ECM) means an installation in a building or replacement or modification to an energy-using system that is primarily intended to maintain or reduce energy consumption and reduce energy costs or allow the use of an alternative or renewable energy source. (13) Energy conservation project (or project) means the design, acquisition, installation, operation, and commissioning of one (1) or more energy conservation measures. (14) Energy-using sector or entity means an identified portion of the state’s economy which serves to provide structure to the allocation of loan funds. (15) Energy-using system (or system) means energy-using equipment or a group of interacting mechanical or electrical components that use energy, such as heating, ventilation, air conditioning, manufacturing, water treatment, or lighting systems. (16) Energy-related competency means skill sets which enable an architect or professional engineer to prepare a Technical Assistance Report (TAR) in a manner consistent with industry standards and to encourage reasonably accurate estimates of energy savings. Competency may be demonstrated by, but is not limited to, achievement of industry-recognized certifications in the energy field, demonstrated knowledge of building science or energy analysis, or a minimum of one (1) year of experience in performing energy analysis. (17) Energy cost saving (or savings) means the value, in terms of dollars, that has accrued or is estimated to accrue from energy bill reductions or avoided costs due to an energy conservation project. (18) Estimated simple payback means the estimated cost of a project divided by the estimated annual energy cost savings. (19) Event of default means an activity or inactivity that results in the borrower’s failure to discharge a duty as prescribed in the loan agreement or other documents furnished in support of the loan agreement. (20) Facility means a building that contains or interacts with energy-using systems, as determined by the department. (21) Financial assistance means public or private funds reasonably available for loan or grant to a sector or entity desiring to implement an energy conservation project, thereby facilitating the mission of the division. (22) Fund means the “Energy Set-Aside Program Fund” established in section 640.665, RSMo. (23) Hospital means a facility as defined in section 197.020(2), RSMo, including any medical treatment or related facility controlled by a hospital board. (24) Hospital board means the board of directors having general control of the property and affairs of the hospital facility. (25) Incremental cost means the additional cost, as approved by the department, of new construction due to the addition, design, and installation of higher efficiency or renewable energy options compared to acceptable minimum efficiency, consistent with regional minimum design practices, traditional design practices, or local codes where applicable. (26) In-kind labor means the labor costs of an ECM that are performed by the borrower’s employees and that may include wages, benefits, and other direct overhead costs as approved by the department. (27) Interest means accrued interest on loans charged by the department. (28) Loan agreement means a document executed by the applicant(s), the department, and other funding source(s), if applicable, that details all terms and requirements under which the loan will be made and repaid. (29) Local government means any county, city, town, or village; or any hospital district as such districts are defined in section 206.010, RSMo; or any sewer district as such districts are defined in section 249.010, RSMo; or any water supply districts as such districts are defined in section 247.010, RSMo; or any ambulance district as such districts are defined in section 190.010, RSMo; or any subdistrict of a zoological park and museum districts as such districts are defined in section 184.352, RSMo. (30) Loan amount means the amount, stated in dollars in the loan agreement, determined by the department as eligible costs plus interest accrued that shall be repaid by the borrower. (31) Not-for-profit organization means any corporation, trust, association, cooperative, or other organization which is operated primarily for scientific, educational, service, charitable, or similar purposes in the public interest; is not organized primarily for profit; uses its net proceeds to maintain, improve, and/or expand its operations; is tax exempt under the Internal Revenue Code; and is registered and in good standing with the secretary of state. (32) Payback score means a numeric value derived from the review of an application, calculated as prescribed by the department, that may include, but shall not be limited to, an estimated simple payback or life-cycle costing method of economic analysis and used for purposes of ranking applications for the selection of loan and financial assistance recipients within the balance of program funds available. (33) Project cost means all costs determined by the department to be directly related to the implementation of an energy conservation project, including initial installation in a new building, that shall include the incremental cost of higher-efficiency energy-using systems or renewable energy options, either of which may be compared to a predicted baseline of energy consumption. (34) Repayment period means the period, up to a maximum number of years as determined by the department for each loan cycle, required to repay a loan of financial assistance, unless otherwise negotiated as required under section 640.660, RSMo. (35) School is defined in section 640.651, RSMo. (36) Technical Assistance Report (or TAR) means a specialized engineering report that identifies and specifies the quantity of energy savings and related energy cost savings that are likely to result from the implementation of one (1) or more energy conservation measures. AUTHORITY: sections 640.651–640.686, RSMo 2016 and RSMo Supp. 2017.* This rule originally filed as 10 CSR 140-2.010 and 4 CSR 340-2.010. Original rule filed April 2, 1988, effective Sept. 1, 1988. Amended: Filed Aug. 3, 1989, effective Dec. 1, 1989. Amended: Filed June 26, 1992, effective Feb. 26, 1993. Rescinded and readopted: Filed July 6, 1998, effective Feb. 28, 1999. Emergency amendment filed Sept. 30, 2010, effective Oct. 10, 2010, expired April 7, 2011. Amended: Filed Oct. 1, 2010, effective March 30, 2011. Moved to 4 CSR 340-2.010, effective Aug. 28, 2013. Amended: Filed Nov. 17, 2014, effective May 30, 2015. Amended: Filed March 27, 2018, effective Oct. 30, 2018. Moved to 10 CSR 140-2.010, effective Jan. 15, 2020. *Original authority see Missouri Revised Statutes 2000 and Missouri Revised Statutes Cumulative Supplement-2010.