(1) The department shall review each application to determine if it is complete. If the department determines that an application is not complete, the department shall inform the applicant within 30 days after the department receives the application. The department shall list the application deficiencies in writing. An applicant may resubmit after correcting all identified deficiencies.

(2) For each loan application that meets the eligibility criteria in ARM 17.85.105 and 17.85.106, the department shall evaluate the application independently of other applications and determine whether the application meets the following technical criteria:

(a) equipment must be proven reliable and be commercially available;

(b) equipment and installation must meet all applicable certifications and standards, such as local building codes and utility interconnection requirements; and

(c) systems must use an alternative energy source.

(3) The department, or a third party designated by the department, shall evaluate whether an applicant whose application met the criteria in (2) is credit worthy. If the evaluation is performed by a third party, that party shall advise the department whether to approve or deny credit. The evaluation must be consistent with the standard practices of financial institutions and must consider the type, size, risk, repayment period, complexity of the loan requested, and any other factor the department believes is necessary to meet the loss ratio required in Title 75, chapter 25, part 1, MCA.

(4) When the loan fund reaches a point where there are applications for more money than is available, the department shall prioritize applications based on the following criteria, which are not necessarily listed in the order of priority:

(a) the amount of energy produced;

(b) the diversity of technology in the portfolio;

(c) investment/return ratio;

(d) the use of a process, a system, or equipment generally available in Montana;

(e) the geographical diversity of the project portfolio;

(f) the demographic diversity of the project portfolio; and

(g) any other criterion the department deems appropriate at the time the action is taken.

(5) The department shall post the ranking of the criteria listed in (4) on the loan program web site and on printed program materials when it becomes necessary to prioritize the award of available funds.

(6) If the department approves an application pursuant to these rules, the department shall indicate its decision to issue a loan by authorizing a servicing agreement and the release of funds.