Cal. Code Regs. tit. 4, § 10092.7 – Project Eligibility.

(a) General Eligibility. Any Project receiving financing through the terms of the Program must comply with the following eligibility requirements:
1. (1) Each Participating Contractor must be enrolled in the Program prior to that Participating Contractor's Scope of Work Completion Date;
2. (2) The Eligible Commercial Financing Customer must be provided with a Bill Impact Estimate (BIE) by the Participating Contractor, Participating Project Developer, or the Primary Finance Provider Entity;
3. (3) The Project must have at least one EEM meeting the requirements described in Section 10092.7(b);
4. (4) The cost for non-lighting measures installed utilizing the EEM List Method, described in Section 10092.7(b)(1), must not exceed $350,000. The limit of $350,000 does not apply to Projects installed at one or more Multifamily Properties;
5. (5) Each Participating Contractor must have the proper license(s) relevant to perform its Scope of Work;
6. (6) The Project must comply with all applicable local, state, and federal laws, rules, regulations, and ordinances, including, but not limited to, Title 24 of the California Code of Regulations;
7. (7) All permits and approvals required to install each Scope of Work must have been approved or must be in the process of being approved; and
8. (8) The Eligible Financing Agreement may not be for:
  1. (A) The purchase of a building; or
  2. (B) New construction of a building except for reconstruction of an existing building that was destroyed, in whole or in part, due to a natural disaster.
(b) Measure Eligibility. There are three methods by which a measure may qualify as an Eligible Energy Measure for Program purposes. Each EEM must satisfy at least one of the following methods:
1. (1) EEM List Method -- The measure meets the criteria the Authority has specified on the EEM List as described in Section 10092.14.
  1. (A) Any measure that qualifies for an IOU, REN, or CCA demand-side energy management program is eligible for qualification through the EEM List Method.
2. (2) IOU Custom Measure Method -- The measure has been approved for installation as part of an IOU Custom program with an IOU Custom approval date within the last 24 months.
3. (3) Professionally Certified Measure Method -- An Energy Professional certifies that installation of the measure will save energy, will result in energy cost savings compared to existing conditions, or will reduce greenhouse gas emissions compared to existing conditions. EEMs qualifying via this method must meet the following requirements:
  1. (A) Each Energy Efficiency measure must be projected to save energy;
  2. (B) Each Demand Response measure must be capable of reducing demand on the electric grid or gas pipeline during peak periods;
  3. (C) Each Distributed Generation measure must produce clean energy with reduced greenhouse gas emissions compared to existing conditions;
  4. (D) Each Battery Storage measure must have the capability to reduce greenhouse gas emissions, to allow for greater grid stability as part of a virtual power plant, and/or to mitigate customer costs; and
  5. (E) Hydrogen production must occur through electrolysis and must use renewable energy sources.
(c) Self-Installers
1. (1) An Eligible Commercial Financing Customer may install or have installed without a Participating Contractor:
  1. (A) Eligible Energy Measures which have been identified on the EEM List as eligible for self-installation; and
  2. (B) Non-EEMs.
2. (2) A Project Developer must be active on any Project with a Self-Installer unless the Eligible Financing Agreement is a Microloan. On Projects with a Self-Installer where the Total Financed Amount is greater than $10,000, the Project Developer must provide the relevant data points listed in Section 10092.8(b)(2).
(d) Quality Assurance/Quality Control
1. (1) In order to verify that Scopes of Work were installed in accordance with the regulations within this Article, within one year of the Enrollment Date of an Eligible Financing Agreement, the Authority may conduct one or more of the following quality assurance/quality control reviews, which may require the Participating Contractor or Project Developer to submit project-related documentation as described in 10092.4(d)(5):
  1. (A) A review of data and documentation (desktop review);
  2. (B) A field verification at the Eligible Property(ies); or
  3. (C) Photo verification.
2. (2) For Projects with any IOU Custom measures, the Authority will not perform a field verification.
3. (3) The Authority shall notify the Eligible Commercial Financing Customer at least 10 business days prior to conducting a field verification.
4. (4) If the Authority finds that a Participating Contractor's Scope of Work was not installed in accordance with the regulations within this Article or that the Participating Contractor misrepresented information related to the work, the Authority may remove the Participating Contractor from Program participation pursuant to the processes described in Section 10092.4(e) and/or may notify other governmental entities and the IOUs.
5. (5) If the Authority finds that a Self-Installer's Scope of Work was not installed in accordance with these requirements or that the Participating Project Developer misrepresented information related to any Project, the Authority may remove the Participating Project Developer from Program participation pursuant to the processes described in Section 10092.4(e) and/or may notify other governmental entities and the IOUs.

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 subsection (c)(2)(A) and 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 subsections (a), (b), (b)(1)(A) and (d)(1), 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 section and 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 section and 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 section and 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, including amendment of subsection (a)(6), and new subsection (a)(8), transmitted to OAL 7-12-2022 and filed 8-15-2022; amendments effective 8-15-2022 pursuant to Government Code section 11343.4(b)(3) (Register 2022, No. 33).

10. Amendment of subsections (a)(3)-(4), (b)-(b)(1)(A) and (b)(3), new subsections (b)(3)(A)-(E) and amendment of subsections (c)(1)(A)-(B) 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 (a)(3)-(4), (b)-(b)(1)(A) and (b)(3), new subsections (b)(3)(A)-(E) and amendment of subsections (c)(1)(A)-(B) 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 (a)(3)-(4), (b)-(b)(1)(A) and (b)(3), new subsections (b)(3)(A)-(E) and amendment of subsections (c)(1)(A)-(B) 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 subsections (a) and (b)(3), transmitted to OAL 2-5-2025 and filed 3-20-2025; amendments operative 3-20-2025 pursuant to Government Code section 11343.4(b)(3) (Register 2025, No. 12).

14. Corrected version of 3-20-2025 order filed 6-4-2025 (Register 2025, No. 23).

15. Amendment of subsections (a)(6)-(7) and new subsections (a)(8)-(a)(8)(B) filed 9-29-2025 as a deemed emergency pursuant to Public Resources Code section 26009; operative 9-29-2025 (Register 2025, No. 40). A Certificate of Compliance must be transmitted to OAL by 3-30-2026 or emergency language will be repealed by operation of law on the following day.

16. Amendment of subsection (a)(4) 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.

17. Amendment of subsections (a)(6)-(7) and new subsections (a)(8)-(a)(8)(B) refiled 3-30-2026 as a deemed emergency pursuant to Public Resources Code section 26009; operative 3-31-2026 pursuant to Government Code section 11346.1(d) (Register 2026, No. 14). A Certificate of Compliance must be transmitted to OAL by 6-29-2026 or emergency language will be repealed by operation of law on the following day.

18. Amendment of subsection (a)(4) 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.

19. Amendment of subsections (a)(6)-(7) and new subsections (a)(8)-(a)(8)(B) refiled 6-9-2026 as a deemed emergency pursuant to Public Resources Code section 26009; operative 6-30-2026 pursuant to Government Code section 11346.1(d) (Register 2026, No. 24). A Certificate of Compliance must be transmitted to OAL by 9-28-2026 or emergency language will be repealed by operation of law on the following day.