OAR 330-110-0016: Ineligible Costs

(1) Loans funded from proceeds of tax-exempt bonds may not pay capital costs incurred prior to bond issuance unless the Department has adopted a reimbursement resolution declaring an intent to reimburse capital costs that are paid after or no more than 60 days prior to such resolution. (2) Except as allowed in ORS 470.050, the proceeds of a loan may not be used to pay for parts of a project that are not consistent with energy production using renewable resources or energy conservation or that do not qualify as an alternative fuel project or recycling project, or do not meet a sustainability standard set out in the Small Scale Local Energy Loan Program Technical Requirements, unless the project is found by the Director to be a demonstration project. (3) The proceeds of a loan may only be used to pay for projects or components of a project that have longer than a 12 month simple payback. For the purposes of this subsection, "component" means a part of a project that ordinarily saves or produces energy by itself and that costs more than ten percent of total, estimated project costs.