GOBIERNO DE PUERTO RICO
CERTIFICACION
De conformidad con lo dispuesto en la Seccién 2.13 de la Ley Num. 170 de 12
de agosto de 1988, segin enmendada, conocida como la “ley de
Procedimiento Administrativo Uniforme", por la presente certifico que el interés
pUblico requiere que el Reglamento de Préstamos Rotalivos del Programa de
Asuntos Energéticos ("Reglamento") aprobado por la Junta de Directores de la
Autoridad para el Financiamiento de Ia Infraestructura de Puerto Rico e| 25 de
mayo de 2010, entre en vigor inmediatamente. EI Reglamento es necesario
para agilizar el tramite de préstamos “verdes” a pequefias y medianas
empresas bajo el Subprograma de Préstamos Rolativos con el fin de incentivar
fa compra e instalacién de sistemas de energia renovable y faclitar la
conversion de edificios y su uso eficiente de energia.
En San Juan, Puerto Rico, hoy 4 de junio de 2010.
Luis @ Fortuni
GobernadorBANCO DE
fo | DESARROLLO
ECONOMICO
PUERTO RICO INFRASTRUCTURE. \ PUERTO RICO
FINANCING AUTHORITY GOBIERNO DE PUERTO RICO
eons ot Put eo
GOVERNMENT OF PUERTO RICO
PUERTO RICO INFRASTRUCTURE FINANCING AUTHORITY
ECONOMIC DEVELOPMENT BANK FOR PUERTO RICO
AMERICAN RECOVERY AND REINVESTMENT ACT
STATE ENERGY PROGRAM
REVOLVING LOAN PROGRAM REGULATION
VePuerto Rico Infrastructure Financing Authority
Economic Development Bank for Puerto Rico
TABLE OF CONTENTS
CHAPTER ONE INTRODUCTION AND BACKGROUND ........0-205
I. Title and Introduction
II, Legal Basis .....,
TIT, Purpose ..... 00.04, eee
IV. Applicability .. Becca eet
v. Definitions . eete |
VI. Other Generally Applicable Provisions .
6.1, Aapplications.......
+ hoan Application Documents.......0.
2
3. Joint Evaluation Committee......
+4, Selection Process.....
5
6
+ Additional Conditiona
+ Payback .
7, Safety ..
8. Proper Disposal...
+9. New Equipment ......
u
z
0, Proven Technology...
1, Warranties........
6.12, Installations.......
6.13. Permanence .
6.14, Inspectors and Energy auditors. ..........35
6.15. New Projects ...... encase:
6.16. Deed or Contractual Restrictions .......36
6.17. Tenants....-.seeee ee ‘
6.18. Other Grants or Assistance.
6:19 H PREPAC Batis eyes:
6.20. Location.....
6.21, Insurance Requirements ....
6.22. Fraud and Non Compliance ...
6.23. Davis Bacon Act ...seseseeee
6.24. Buy American.
6.25, ARRA Prohibited Projects
6.26. Unforeseeable Circuitstances ...
6.27. Code of Ethics for Contractors, Service
Providers and Applicants for Economic
Incentives .
6.28. Government Certifications .
6.29. Final Determination of Loan Amounts .....41
6.30, Failed Inspections Processes ............ 42
American Rocovery and Reinvestment Act of 2009--state Bnorgy Progra 2
Revolving Loan Program ReguiationPuerto Rico Infrastructure Financing Authority
Econonic Development Bank for Puerto Rico
CHAPTER TWO BUILDING ENERGY EFFICIENCY RETROFIT
PROJECTS .....e eee
Peeparnane
it ‘Type of Awards .. 44
II, Definitions... 44
HII, Bligibility.... eee 45
IV. Exclusions and Restrictions... +46
v. Ineligible Facilities . 46
VI. Bligible Retrofit Measures... 47
VII. Ineligible Retrofit Measures. eee tieao
VIII. Bligible Project costs ........seeeeee vere eee SO
IX. Energy Audit Requiroments.... Ree eto
CHAPTER THREE RENEWABLE ENERGY PROJECTS .. Aes.
1. Type of Awards w...eseee eee Recs.
Tis Datinitaone since se seen BS
UII, Eligibility... eerie Patebe
IV. Requirements for Equipment, Components and
installers terre erotnat titan ST
v. Exclusions and Restrictions. sheen 5D
VI. Eligible Project Costs ..... flee +61
CHAPTER FOUR OTHER PROVISIONS AND EFFECTIVENESS ...... 63
I Interpretation ...., eect cee bl
II. Filing of Complaints . settee eeeeene 64
III. Effectiveness ........ Pparennnere |
Anerican Recovery and Reinvestment Act of 2009--aiate neray Program 3
Bavolving Lean vrogram RegulationChapter one
INTRODUCTION AND BACKGROUND
Title and Introduction
This regulation shall be known as the “SEP Revolving
Loan Program Regulation.”
The Puerto Rico Infrastructure Financing Authority
(AFI, for ite Spanish actonym) was created with the
purpose of assisting other infrastructure government
entities to finance and develop their capital
improvement programs and other _—_ infrastructure
Projects. Since its creation in 1988, AFI has
developed knowledge and expertise in managing
Projects throughout Puerto Rico, AFI has also
developed sufficient expertise in financing these
projects
On March 9, 2009, Act No. 8 (Act No, 8) was enacted
to amend AFI’s organic act and designate AFI as the
government entity in charge of implementing in Puerto
Rico the American Recovery and Reinvestment Act of
2009 (ARRA). ARRA was signed into law by President
Barack Obama to preserve and create jobs and promote
economic recovery; to assist those most impacted byPuerto Rico Infrastructure Financing Authority
Economic Development Bank for Puerto Rico
the recession; to provide investments needed to
inerease economic. ~—=s efficiency by —_— spurring
technological advances in science and health: to
invest in transportation, environmental protection,
and other infrastructure that will provide long-term
economic benefits; and, to stabilize State and Local
government budgets in order to minimize and avoid
reductions in essential services and
counterproductive state and local tax increases.
As part of the obligations of AFI under Act No. 8 in
implementing ARRA in Puerto Rico, AFI has the duty to
ensure the maximization of the funds to be received
by Puerto Rico and to take all necessary steps to
comply with ARRA and any terms and conditions imposed
by particular grants allocated to Puerto Rico,
including attaining full transparency in the use of
the funds.
One of the programs under which Puerto Rico has
xeceived ARRA funds is the State Energy Program
(ARRA-SEP) administered by the United states
Department of Energy (DOE). ‘the goals established for
‘the ARRA-SEP are
American Recovery and Rasavestmont Act of 2009--state Energy Progran, 5
Revolving Loan Program RegulationPuerto Rico Infrastructure Financing Authority
Beonomic Development Bank for Puerto Rico
1, Increase energy efficiency to xeduce energy
costs and consumption for consumers, businesses
and government.
2, Increase energy generation from renewable
sources.
3. Reduce reliance on imported energy.
4, Improve the reliability of electricity and fuel
supply and the delivery of energy services.
5. Reduce the impacts on the environment of energy
production and use, including, xeducing greenhouse
gas emission.
6, Stimulate the creation and retention of jobs.
Under this program, the Puerto Rico Energy Affairs
Administration (EAA) has created the Revolving Loan
Program to distribute loans to small and mid-sized
entrepreneurs and business organizations (for profit
and-not for profit) to incentivize the purchase and
installation of solar energy systems, wind energy
systems, and for the retrofitting of buildings to
make them more energy efficient.
american Recovery and Reinvestment Act of 2008-~state Energy Program 6
Revolving Lean Progam RagulationPuerto Rico Infrastructure Financing Authority
Econenic Development Bank for Puerto Rico
The Economic Development Bank for Puerto Rico (EDBPR)
was created pursuant to the Puerto Rico Economic
Development Bank Act No. 22 of July 24, 1985, as
amended. EDBPR is a public instrumentality of the
Government of Puerto Rico and its statutory purpose
is to promote the development of the private sector
of the economy of Puerto Rico by granting direct
loans, loan guarantees, loan participations and/or
direct investments, to small and mid-sized
entrepreneurs or business organizations in the areas
of manufacture, agriculture, trade, tourism and other
services, among others.
EDBPR as subgrantee of the EAA, will receive
approximately $4,840,500 for the loan program
included in this Regulation.
This Regulation is one of the steps in the
implementation process to facilitate the achievement
of the goals mentioned above.
II. Legal Basis
These guidelines are issued in accordance with and
pursuant to the powers conferred to EDBPR and AFI
under Section 7 of Act No. 22 of duly 24, 1985, Act
American Recovery and Reinvestaent Act of 2003~-state Energy Program ’
Ravolving Loan Progeass Reguintion