(1) "Act" means Title 90, chapter 4, part 1, MCA.

(2) "Commercialization" means the engagement by a new or expanding business incorporated, licensed or otherwise authorized to do business in Montana in developing, designing, building, manufacturing, marketing, distributing, or selling renewable energy forms, processes, systems, system components or information.

(3) "Contract monitoring" means a purposeful examination and supervision of a contractor's performance, plans, records, reports and expenditures to insure compliance with the terms and conditions described in a contractual agreement with the department.

(4) "Demonstration" means a physical display or example to illustrate the operation of a renewable energy system or device and to provide evidence of its performance to a large population.

(5) "Development" means an activity that utilizes the results of research or available knowledge and applies those results or knowledge to the design, construction and testing of hardware, models, or prototypes.

(6) "Educational or informational project" means any project that stimulates research, development, demonstration, commercialization or use of renewable energy through workshops, publications, curriculum development, technical assistance services, audio-visual materials, or other means.

(7) "Financial institution" means any state or federally chartered commercial bank, savings and loan association or

(8) "Performance monitoring" means a systematic check, test, or investigation to collect, record, and interpret data that will describe the efficiency, energy output, or other operational functions of a renewable energy system or device.

(9) "Person" means, as defined in 90-4-102(2) , MCA, "a natural person, corporation, partnership, or other business entity, association, trust, foundation, any educational or scientific institution, or any governmental unit."

(10) "Research" means a systematic study to discover facts or to discover or revise theories that will bring to a more advanced state the capabilities, understanding, availability, and suitability of a renewable energy source.

(2) Only projects that will be conducted within Montana are eligible for funding.

(3) Funding will be granted only for projects that are applicable to Montana's energy needs.

(4) Only projects or those portions of projects directly related to the research, development, demonstration, or commercialization of renewable energy sources and educational or informational projects are eligible for funding.

(5) Applications dealing with energy storage devices that would promote more efficient utilization of renewable energy will be considered.

(2) Persons who are employees of the department, contractors of the department working on a conservation or renewable energy project other than under a renewable energy grant or loan, or are members of the board of environmental review or the renewable energy advisory council (REAC) and their immediate families are not eligible for funding.   Persons who have a present grant or loan made under the Act and these rules are eligible to apply.

(2) The department will determine the appropriate type of funding based on the nature of the project.

(1) An applicant shall submit an application on forms prescribed by the department.

(2) An applicant shall submit 4 copies of the application to the department at the time of filing, and shall provide additional copies as requested by the department.

(1) The applicant shall submit additional or supplemental material as requested by the department.

(1) If an applicant desires to change or to add to an application other than as required by ARM 17.84.112 after it is formally filed, the applicant shall submit the change or addition to the department in writing. The department will consider any substantial change or addition to an application to constitute a new application. No substantial changes or additions to an application will be accepted after the deadlines for submittal set forth in ARM 17.84.114.

(1) Applications for unsolicited grants must be submitted prior to November 1 or at other times specified by the department.

(2) Applications for solicited grants must be submitted at times specified by the department.

(3) Loan applications must be submitted to the department prior to January 1 or at other times specified by the department. 

(2) Grant applications received for consideration in each period will be compared with one another for relative merit as well as evaluated for individual merit.   The technical soundness of the proposed project, the public benefits associated with the proposed project, and the likelihood that the proposed project will lessen reliance on nonrenewable energy sources will be evaluated in determining the merits of each application.   The department will fund those grant applications showing the highest individual and relative merit consistent with the availability of funds.

(3) The department will evaluate loan applications independent of one another to determine whether the loan application meets minimum standard technical criteria established by the department.   Applicants whose applications meet these criteria will be authorized for loan consideration subject to the availability of funds and the participation of a financial institution.

(4) The department shall make the final decision concerning which applications to fund.

(1) The applicant shall demonstrate the probable environmental and ecological consequences of the proposed project by considering all areas of concern identified on an environmental checklist supplied by the department.   The department will assess these results to determine if a proposed project or activity is environmentally acceptable.   If the project or activity constitutes a major state action or further information is necessary, an environmental impact statement may be required as prescribed by the administrative rules governing the Montana Environmental Policy Act.

(2) The applicant shall certify that the proposed project or activity will comply with applicable statutory and regulatory standards such as those protecting the quality of resources such as air, water, land, fish, wildlife and recreational opportunities.

(2) Grant recipients shall be required to make their projects open to the public during reasonable hours for a period of time specified in the contract.

(3) The department will retain the right to inspect and monitor the performance of all projects for a specified period of up to 5 years after completion of the project.

(4) The department will require the grant recipient to assist, guide and inform the department during on-site investigations.   The department may make such investigations at its discretion.

(5) The grant recipient shall operate and maintain his funded project for a specified period to comply with the performance monitoring provisions.

(6) All patents and copyrights that result directly from projects funded in whole or in part by a grant made under the Act and these rules shall be the property of the department.

(2) The department will reimburse the grantee only for actual and necessary expenditures incurred in compliance with the grant contract.

(3) Any balance of a grant that remains unused at the conclusion of the contract period shall revert to the department.

(2) Grant recipients shall make oral or written presentations of progress if requested to do so by the department.

(3) The grant recipient shall adequately account for expenditures in a manner acceptable to the department.   All records, reports, and other documents that relate to the project and that are required by the department to be maintained by the grant recipient are subject to audit by the office of the legislative auditor, the department, and, where required by law, the legislative fiscal analyst.

(1) The department may issue a request for a proposal (RFP) at any time to initiate projects to meet program goals and objectives and may fund solicited proposals at any time.

(2) The RFP will describe the objectives of the project, the maximum funding that is available for the project, the deadline for submittal, and the criteria that will be used to evaluate applications submitted in response to the RFP.   The RFP will be sent to consultants who are on the department's bid list, maintained in compliance with Title 18, chapter 8, part 1, MCA, and will be advertised and sent to other selected groups or individuals that the department considers to have the necessary credentials and experience to successfully carry out the project.

(2) The results of all projects that are funded shall be made public.

(2) The maximum term for loans is 10 years.

(3) Loans made under the Act and these rules shall be used only for the purposes described in the loan application.

(4) The department's participation in any loan made through a financial institution under the Act and these rules shall not exceed 90% of the principal loan amount.

(2) The letter of authorization for loan consideration will certify to financial institutions that:

(a) the applicant's proposal is consistent with the purposes of the Act and these rules; and

(b) the department will consider participation in a loan made by a financial institution for the purposes described in the proposal subject to the availability of funds.

(3) The department will describe in the authorization for loan consideration such terms and conditions as it considers necessary for the department's participation in a loan made by a financial institution for the proposed project.

(2) The department will participate in a loan made by a financial institution only if the applicant submits to the department:

(a) written evidence that the financial institution has investigated and analyzed the applicant's loan request and related materials in the same manner as its other loan requests and consistent with the standard practices of financial institutions considering the type, size, risk, and complexity of the loan requested and the type of applicant, and

(b) a signed servicing agreement the terms and conditions of which have previously been approved by the department evidencing the financial institution's intent to originate the loan under the conditions previously described by the department.

(3) The department will indicate its decision to participate in a loan by executing the servicing agreement and providing the financial institution with a completed standard participation agreement the terms and conditions of which have been approved by the department.

(4) When the financial institution executes and delivers the completed participation agreement to the department, the department is bound to participate in the loan.

(2) The department shall charge a fixed interest rate on its share of a loan.  The rate of interest the department charges on its loan share shall be equal to the federal reserve discount rate on the day the loan closes.

(3) The effective interest rate to the applicant will be the weighted average based on the respective prorata participation of the financial institution and the department.