§ 1710.353 - General policy; demand side management.

(a) RUS will make loans for the purpose of assisting electric borrowers to implement RUS approved demand side management plans. For the purposes of this regulation energy conservation programs are included as a DSM activity.

(b) RUS will treat demand-side and supply-side resources on an equal basis. All requirements applicable to loans for traditional electric facilities will apply to loans for DSM. In addition the requirements set forth in this subpart will apply.

(c) DSM will be considered a distribution loan purpose, eligible for either insured loans or loan guarantees pursuant to § 1710.102.

(d) RUS will conduct its own evaluation, as specified in this subpart, of a borrower's DSM activities before making a determination on the disposition of a borrower's loan application.

(e) RUS loans for DSM activities will be made only for systems utilizing technologies that are proven and commercially available.

(f) In general, RUS will require pilot project testing of DSM activities new to the borrower.

(g) If the borrower's IRP, DSM plan, project construction and/or financing, and/or rate recovery is subject to the approval of state authorities, the borrower must obtain such approvals before RUS will approve a loan for any purpose for which an RUS approved DSM plan or IRP is required under this subpart.