1. (a) Projects that loan candidates propose must fulfill the following program and eligibility requirements.

   1. (1) Experimental or research-related technologies are not eligible for funding. Retrofit measures that result from renewable energy resources shall not be considered experimental or research related if the measure is commercially available or has a demonstrated track record of its cost-effectiveness.
   2. (2) Eligible measures shall have a demonstrated track record of cost-effectiveness.
   3. (3) Eligible measures shall be commercially available.
   4. (4) Each energy conservation measure must be unique in its application, location, building characteristics, and/or target audience.

   5. (5) Eligible energy conservation measure projects include:

      1. (A) indoor and outdoor lighting projects;
      2. (B) heating, ventilation, and air conditioning equipment (HVAC);
      3. (C) electrical distribution equipment;
      4. (D) building shell improvements;
      5. (E) energy management systems;
      6. (F) energy recovery systems, including systems that generate electricity on-site;
      7. (G) alternate/renewable energy systems;
      8. (H) load management devices;
      9. (I) water systems and waste water systems energy conservation measures;
      10. (J) other cost-effective energy efficiency enhancements, demand, or rate-based measures that the LoanSTAR Program has approved; and
      11. (K) incremental cost on higher energy efficient equipment for new construction.
2. (b) All eligible measures must be recommended in an energy assessment report that a licensed professional engineer prepares in a format that follows the LoanSTAR Program guidelines, unless SECO specifically waives this requirement.

Source Note:The provisions of this §19.43 adopted to be effective August 13, 2002, 27 TexReg 7175.