1. (a) Disclosure. For all financial products, the Finance Provider Entity must disclose to the Eligible Commercial Financing Customer either:

   1. (1) An annual percentage rate (APR) (inclusive of any fees) as well as any advance payments that the Eligible Commercial Financing Customer is required to pay; or
   2. (2) The total cost of the Project for the Eligible Commercial Financing 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 must be inclusive of, but not limited to, equipment and installation repayment, and any charges for financing, services, maintenance, or oversight of equipment.
   3. (3) For the purposes of this Section, Savings-Based Payment Agreements will satisfy the requirements set forth in Section 10092.5(a)(2) with the FPE'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.

2. (b) 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 Financing Agreements:

   1. (1) Interest rates, if applicable, may be fixed or variable.
   2. (2) Refinancing agreements are acceptable only if both the original and refinancing agreements are for the same Project and the Eligible Financing Agreement is submitted for enrollment in the Program within 90 calendar days of the Scope of Work Completion Date pursuant to Section 10092.8(a)(2). For the purposes of this Section, conversion from a construction loan to a permanent loan is not refinancing.
   3. (3) The agreement must not be a revolving line of credit.
   4. (4) Fees must be reasonable and in accordance with industry standards.
   5. (5) FPEs must take a security interest in agreements with Total Financed Amounts greater than $50,000.
   6. (6) The Claim-Eligible Financed Amount of the Enrolled Financing Agreement must not be enrolled in a substantially similar program.
   7. (7) In addition to the general requirements stated above, the terms and characteristics of the Eligible Financing Agreement must be consistent with the product(s) described by the FPE in its application to participate in the Program pursuant to Section 10092.2(c)(3) and approved by the Authority.

Note: Authority cited: Sections 26006 and 26009, Public Resources Code. Reference: Sections 26002, 26002.5, 26003, 26006, 26011 and 26040, Public Resources Code.

History

1. New section filed 12-17-2018 as a deemed emergency pursuant to Public Resources Code section 26009; operative 12-17-2018 (Register 2018, No. 51). A Certificate of Compliance must be transmitted to OAL by 6-17-2019 or emergency language will be repealed by operation of law on the following day.

2. Change without regulatory effect amending section filed 4-4-2019 pursuant to section 100, title 1, California Code of Regulations (Register 2019, No. 14).

3. New section refiled 6-11-2019 as a deemed emergency pursuant to Public Resources Code section 26009, including amendment of Note; operative 6-18-2019 (Register 2019, No. 24). A Certificate of Compliance must be transmitted to OAL by 9-16-2019 or emergency language will be repealed by operation of law on the following day.

4. New section refiled 9-12-2019 as a deemed emergency pursuant to Public Resources Code section 26009; operative 9-16-2019 pursuant to Government Code section 11343.4(b)(2) (Register 2019, No. 37). A Certificate of Compliance must be transmitted to OAL by 12-16-2019 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 9-12-2019 order, including amendment of subsection (a), new subsection (a)(3) and amendment of subsections (b) and (b)(3), transmitted to OAL 12-13-2019 and filed 1-21-2020; amendments operative 1-21-2020 pursuant to Government Code section 11343.4(b)(3) (Register 2020, No. 4).

6. Amendment of subsections (a)(1)-(2), (b)(3) and (b)(9) and amendment of Note filed 7-19-2021 as an emergency; operative 7-19-2021 (Register 2021, No. 30). A Certificate of Compliance must be transmitted to OAL by 1-18-2022 or emergency language will be repealed by operation of law on the following day.

7. Amendment of subsections (a)(1)-(2), (b)(3) and (b)(9) and amendment of Note refiled 12-30-2021 as a deemed emergency pursuant to Public Resources Code section 26009; operative 1-18-2022 (Register 2021, No. 53). A Certificate of Compliance must be transmitted to OAL by 4-18-2022 or emergency language will be repealed by operation of law on the following day.

8. Amendment of subsections (a)(1)-(2), (b)(3) and (b)(9) and amendment of Note refiled as a deemed emergency pursuant to Public Resources Code section 26009; operative 4-18-2022 (Register 2022, No. 15). A Certificate of Compliance must be transmitted to OAL by 7-18-2022 or emergency language shall be repealed by operation of law on the following day.

9. Certificate of Compliance as to 4-18-2022 order transmitted to OAL 7-12-2022 and filed 8-15-2022 (Register 2022, No. 33).

10. Amendment of subsections (b)(6)-(7) filed 5-13-2024 as a deemed emergency pursuant to Public Resources Code section 26009; operative 5-13-2024 (Register 2024, No. 20). A Certificate of Compliance must be transmitted to OAL by 11-12-2024 or emergency language will be repealed by operation of law on the following day.

11. Amendment of subsections (b)(6)-(7) refiled 11-4-2024 as a deemed emergency pursuant to Public Resources Code section 26009; operative 11-13-2024 pursuant to Government Code section 11346.1(d) (Register 2024, No. 45). A Certificate of Compliance must be transmitted to OAL by 2-11-2025 or emergency language will be repealed by operation of law on the following day.

12. Amendment of subsections (b)(6)-(7) refiled 2-5-2025 as an emergency; operative 2-11-2025 pursuant to Government Code section 11346.1(d) (Register 2025, No. 6). A Certificate of Compliance must be transmitted to OAL by 5-12-2025 or emergency language will be repealed by operation of law on the following day.

13. Certificate of Compliance as to 2-5-2025 order, including amendment of subsection (b), transmitted to OAL 2-5-2025 and filed 3-20-2025; amendment operative 3-20-2025 pursuant to Government Code section 11343.4(b)(3) (Register 2025, No. 12).

14. Amendment of subsections (b)(2) and (b)(5), repealer of subsection (b)(6) and subsection renumbering filed 11-6-2025 as a deemed emergency pursuant to Public Resources Code section 26009; operative 11-6-2025 (Register 2025, No. 45). A Certificate of Compliance must be transmitted to OAL by 5-5-2026 or emergency language will be repealed by operation of law on the following day.

15. Amendment of subsections (b)(2) and (b)(5), repealer of subsection (b)(6) and subsection renumbering refiled 4-15-2026 as a deemed emergency pursuant to Public Resources Code section 26009; operative 5-5-2026 (Register 2026, No. 16). A Certificate of Compliance must be transmitted to OAL by 8-3-2026 or emergency language will be repealed by operation of law on the following day.