§ 4280.117 Determination of technical merit. The Agency will determine the technical merit of all proposed projects for which complete applications are submitted under §§ 4280.118, 4280.119, and 4280.120 under this subpart using the procedures specified in this section. Only projects that have been determined by the Agency to have technical merit are eligible for funding under this subpart. ( a ) *General.* The Agency will use the information provided in the applicant's application and/or technical report to determine whether or not the project has technical merit. In making this determination, the Agency may engage the services of other Government agencies or other recognized industry experts in the applicable technology field, at its discretion, to evaluate and rate the technical report. The technical report can also be provided in the technical feasibility section of the feasibility study, when required, instead of completing a separate technical report.
( b ) *Technical report areas.* The areas that the Agency will evaluate in the technical reports when making the technical merit determination are specified in paragraphs (b)(1) through (5) of this section. ( 1 ) *EEI whose total project costs are $80,000 or less.* The following areas will be evaluated in making the technical merit determination: ( i ) Project description;
( ii ) Qualifications of EEI provider(s); and
( iii ) Vender/Installer certification, energy assessment, or energy audit.
( 2 ) *RES whose total project costs are $80,000 or less.* The following areas will be evaluated in making the technical merit determination: ( i ) Project description;
( ii ) Resource assessment;
( iii ) Project economic assessment; and
( iv ) Qualifications of key service providers.
( 3 ) *EEI whose total project costs are greater than $80,000.* The following areas will be evaluated in making the technical merit determination: ( i ) Project information;
( ii ) Energy assessment or energy audit; and
( iii ) Qualifications of the contractor or installers.
( 4 ) *RES whose total project costs are less than $200,000, but more than $80,000.* The following areas will be evaluated in making the technical merit determination: ( i ) Project description;
( ii ) Resource assessment;
( iii ) Project economic assessment;
( iv ) Project construction and equipment; and
( v ) Qualifications of key service providers.
( 5 ) *RES whose total project costs are $200,000 and greater.* The following areas will be evaluated in making the technical merit determination: ( i ) Qualifications of the project team;
( ii ) Agreements and permits;
( iii ) Resource assessment;
( iv ) Design and engineering;
( v ) Project development;
( vi ) Equipment procurement and installation; and
( vii ) Operations and maintenance.
( c ) *Pass/Pass with conditions/fail assignments.* The Agency will assign each area of the technical report, as specified in paragraph (b) of this section, a “pass,” “pass with conditions,” or “fail.” An area will receive a “pass” if the information provided for the area has no weaknesses and meets or exceeds any requirements specified for the area. An area will receive a “pass with conditions” if the information provided for the area has minor weaknesses which could be conditionalized and reasonably resolved by the applicant. Otherwise, if the information provided for the area is conclusively deemed to be a major weakness or if the area has not been addressed by the applicant, the area will receive a “fail.”
( d ) *Determination.* The Agency will compile the results for each area of the technical report to determine if the project has technical merit. ( 1 ) A project whose technical report receives a “pass” in each of the applicable technical report areas will be considered to have “technical merit.”
( 2 ) A project whose technical report receives a “pass with conditions” in one or more the applicable areas will be considered to have “conditional technical merit.”
( 3 ) A project whose technical report receives a “fail” in any one technical report area will be considered to be without technical merit.
( e ) *Further processing of applications.* A project that is determined to have “technical merit” or “conditional technical merit” is eligible for further consideration for funding. Projects with “conditional technical merit” would be subject to funding conditions that would need to be met to ensure full technical merit prior to completion of the project. A project that is determined to be “without technical merit” is considered to be an incomplete application and therefore is not eligible to compete for funding.