PURPOSE: This rule provides definitions of special terms used in conjunction with the Energy Set-Aside Fund.

1. (1) Active loan means, a loan from the department to a borrower with a loan agreement on file signed by both parties and a corresponding balance of funds to be distributed and/or repaid.
2. (2) Applicant means, a person or persons who submits an application on behalf of an eligible organization to the department for financial assistance.
3. (3) Application cycle means, the period or periods of time each year, that the department shall accept and receive applications for financial assistance under the provisions of sections 640.651 to 640.686, RSMo.
4. (4) Authority means, the Department of Natural Resources’ Environmental Improvement and Energy Resources Authority.
5. (5) Authorized official means, an individual authorized to obligate an organization or entity.
6. (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.

7. (7) Building means—

   1. (A) An existing structure; or
   2. (B) Proposed new construction; or
   3. (C) Any applicant-owned, group of closely situated structural units that are centrally metered or served by a central utility plant; or
   4. (D) An eligible portion of any of these that includes an energy-using system.
8. (8) Department means, the Department of Natural Resources.
9. (9) Director means, the Director of the Department of Natural Resources.
10. (10) Division means, the Department of Natural Resources’ Division of Energy.
11. (11) Energy conservation loan account means, an account to be established on the books of a borrower for purposes of tracking the receipt and expenditure of the loan funds or financial assistance, and to be used to receive and remit energy cost savings for purposes of making payments on the loan or financial assistance.
12. (12) Energy conservation measure (or ECM) means, an installation in a building or replacement or modification to an energyusing 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. (13) Energy conservation project (or project) means, the design, acquisition, installation, operation and commissioning of one or more energy conservation measures.
14. (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 (see also Eligible Sectors 10 CSR 140–2.030).
15. (15) Energy cost saving (or savings) means, the value, in terms of dollars, that has or is estimated to accrue from energy bill reductions or avoided costs due to an energy conservation project.
16. (16) Estimated simple payback means, the estimated cost of a project divided by the estimated annual energy cost savings.
17. (17) 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.
18. (18) Facility means, an energy-consuming system such as a building, group of buildings, outdoor lighting systems, water and wastewater systems, heating, ventilation or air conditioning, manufacturing processes or other systems as determined by the department.
19. (19) Financial assistance means, public or private funds reasonably available for loan to a sector or entity desiring to implement an energy conservation project thereby facilitating the mission of the division.
20. (20) Fund means, the “Energy Set-Aside Program Fund” established in section 640.665, RSMo.
21. (21) Hospital means, a facility as defined in subsection 2 of section 197.020, RSMo, including any medical treatment or related facility controlled by a hospital board. 10 CSR 140-2
22. (22) Hospital board means, the board of directors having general control of the property and affairs of the hospital facility.
23. (23) 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.
24. (24) 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.
25. (25) Interest means, accrued interest on loans charged by the department.
26. (26) Late payment fee means, a penalty to be charged by the department on loan payments past due.
27. (27) Loan agreement means, a document executed by and among 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 is to be repaid.
28. (28) Local government means, any county, city 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.
29. (29) 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.
30. (30) 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; and uses its net proceeds to maintain, improve, and/or expand its operations.
31. (31) 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.
32. (32) Predicted baselines means, estimated annual energy costs of a proposed energyusing system which incorporates acceptable minimum efficiency.
33. (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. (34) Project revision means, any change in an approved ECM that the department determines materially alters the specification from a Technical Assistance Report or Technical Assistance Report equivalent.
35. (35) Repayment period means, unless otherwise negotiated as required under section 640.660, RSMo the period in years required to repay a loan or financial assistance as determined by the project’s estimated simple payback or life-cycle costing analysis, and rounded to the next year where the estimated simple payback or life-cycle costing analysis is a fraction of a year.
36. (36) Technical Assistance Report (or TAR) means, a specialized engineering report, subject to approval by the department, that identifies and specifies the quantity of energy savings and related energy cost savings that are likely to result from the implementation of one or more energy conservation or renewable energy measures.
37. (37) Technical Assistance Report equivalent (or TAR equivalent) means, an abbreviated Technical Assistance Report, subject to approval by the department, to identify measures that have been proven cost-effective over time and do not require a more comprehensive analysis.
38. (38) Unobligated balance, means that amount in the fund that has not been dedicated to any projects at the end of each state fiscal year.

AUTHORITY: sections 640.651–640.686, RSMo Supp. 1997.* 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. *Original authority see Missouri Revised Statutes 1997.