SECTIONS 32920-32942 - California Statutes

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.