(a)

1. (1) The Building Authority Division shall only approve those projects which exceed two hundred fifty thousand dollars ($250,000) for the renovations of existing state-owned facilities which the division determines to be of value for sustainable design building purposes.
2. (2) Projects shall be selected for funding on the basis of their conformity with these purposes, pursuant to Arkansas laws.

3. (3)

   1. (A) Projects may be bundled to meet the minimum threshold amount of exceeding two hundred fifty thousand dollars ($250,000).
   2. (B) However, all contracting of these projects shall be made pursuant to federal and state laws, regulations, and rules.

4. (4) To qualify for funding in whole or in part as a sustainable building design project, the state-owned facility shall be:

   1. (A) A facility of an agency; and
   2. (B) Designed, renovated, and certified pursuant to the Arkansas Energy Office of the Division of Environmental Quality’s requirements of the Sustainable Energy-Efficient Buildings Program, which currently states a reduction of at least ten percent (10%) below the baseline energy consumption determined in accordance with the Performance Rating Method of Appendix G of the American Society of Heating, Refrigerating and Air-Conditioning Engineers, Standard 90.1-2007, as it existed on January 1, 2009.

5. (5) The Sustainable Building Design Program Review Committee shall:

   1. (A) Review the applications forwarded from the Manager; and
   2. (B) Make recommendations to the Director of the Building Authority Division for project loan approval.

(b) Other review criteria include:

1. (1) Agency has completed its Strategic Energy Plan (StEP) and was approved by the StEP Energy Workgroup, and plan includes specific sustainable renovation projects within the Capital Projects section of the plan;
2. (2) Agency has contracted or will be contracting for a measurement and verification (M&V) of the project;

3. (3)

   1. (A) Agency has completed a life cycle cost analysis.
   2. (B) Should an agency determine an analysis is not needed, the director may waive this requirement upon proper written justification presented by the agency;
4. (4) A statement from the agency director as to the agency’s method of repayment of the loan;

5. (5) Renovations which may include:

   1. (A) Building exterior weatherization, air sealing, or thermal efficiency;
   2. (B) Increase or improvement in building insulation;
   3. (C) Door, window, or skylight replacement;
   4. (D) Lighting technology upgrades, or reduction of the number of fixtures;
   5. (E) Heating, ventilation, heat recovery, steam system, and air conditioning (HVACR) replacements;
   6. (F) Improvements to energy control systems/sensors; and
   7. (G) Other energy efficiency projects such as VFD motors that will result in a significant reduction in the consumption of energy within a building;

6. (6) The following direct costs are eligible:

   1. (A) Building materials;
   2. (B) Doors, windows, and skylights;
   3. (C) Mechanical systems and components including HVACR and hot water;
   4. (D) Electrical systems and components including lighting and energy management systems;
   5. (E) Labor necessary for the installation of the energy efficient project;
   6. (F) Design and planning of the energy efficient project which include, but are not limited to:

(i) Design professionals;

1. (ii) Consultants; and

   1. (iii) Energy service companies (ESCO); and

   2. (G) Costs associated with energy audits, recommissioning, or retro-commissioning, or any combination thereof, which include, but are not limited to:

      1. (i) Design professionals;
      2. (ii) Consultants; and
      3. (iii) ESCOs;

2. (7) The following are not eligible costs:

   1. (A) The costs of the project which are not directly related to energy efficiency measures;
   2. (B) Any costs incurred for the financing of the project;

   3. (C)

      1. (i) Costs for equipment or systems that reduce energy costs without also resulting in reductions in the use of energy.
      2. (ii) However, nothing in this section shall be deemed to prohibit costs associated with renewable energy or geothermal projects; and
   4. (D) Loan funds cannot be used to pay for consultants to write loan applications, reports, or manage the loaned funds;
3. (8) Energy efficient projects undertaken as a part of a renovation project that are covered by the prescriptive requirements of the Arkansas Energy Code for New Building Construction must exceed the minimum Arkansas Energy Code for New Building Construction requirements in order for their costs to be eligible for a loan from the Sustainable Building Design Revolving Loan Fund; and
4. (9) Conformity with other plans. Conformity with plans, laws, and/or regulations currently existing, developed, and/or administered by other state or federal agencies.