32920-32942
FINANCIAL CODE
SECTION 32920-32942
32920. In addition to other accounts the board may establish, the financial accounts of the corporation shall include an energy efficiency improvements loan fund for the purpose of making loans under this chapter and paying for administrative, marketing, and public information costs and establishing a loan-loss reserve. 32922. The purpose of this article is to authorize the corporation to use the funds in the energy efficiency improvements loan fund for measures to reduce the energy consumption of qualifying small businesses through the installation of energy conservation, load management, or other devices to improve energy efficiency at facilities owned or operated by the qualifying small business and nonprofit organization. 32924. Escrow funds appropriated to the corporation may only be used to provide for subsidized loans, or loans with a low interest rate, granted pursuant to this article, except that the corporation may deposit escrow funds not yet used for those purposes in interest bearing accounts with accredited financial institutions. The corporation shall deposit interest earnings on those accounts in the general operating account of the corporation and may be used for purposes designated by the board. 32926. The interest earned on any loans made by the corporation pursuant to this article shall be deposited in the energy efficiency improvements loan fund. 32927. No more than two hundred fifty thousand dollars ($250,000) of money in the energy efficiency improvements loan fund may be used for initial organizational expenses. 32929. The corporation shall designate an officer of the corporation to administer the loan program established by this article. The officer responsible for the program shall report directly to the president of the corporation. 32930. Priority in ranking loan applications shall be given to small businesses purchasing or implementing energy efficiency improvements by considering the following characteristics in descending order of importance: (a) It improves energy efficiency utilization or conserves energy at the highest savings-investment ratio, as provided in Section 32648. (b) It improves energy utilization efficiency or conserves energy while developing or advancing the state of the art in technology or services available to small businesses and nonprofit organizations. 32932. Loans made under this chapter to small businesses shall be at a fixed rate of interest that shall not exceed the prevailing prime interest rate as published in the Wall Street Journal. 32936. The corporation shall use its best efforts to set interest rates on loans made under this chapter at the point at which the loan makes an investment in energy efficiency improvements cost effective. 32940. Guidelines for approving loan applications shall be developed by the board on or before May 1, 1987. In developing those guidelines, the board shall incorporate the recommendations adopted by the California Energy Commission with respect to technical criteria which are to be applied to projects receiving loans from the corporation pursuant to this chapter. The corporation may contract with the Energy Commission for the purpose of developing technical guidelines. 32942. Loans shall be approved according to criteria established by a credit committee, chaired by the chief financial officer of the corporation or that officer's designee. The other members of the committee shall be the member of the board appointed by the Energy Commission and the corporate president.