1. (a) Application Period. The State Energy Conservation Office (SECO) will accept and process applications from public sector institutions that seek loan funds for energy conservation measures on a "first come, first serve" basis.

2. (b) Application Process.

   1. (1) Each applicant shall submit to SECO a copy of its energy assessment report with a completed loan application that is directed to the attention of the LoanSTAR Program.

   2. (2) The LoanSTAR Program will evaluate loan applications on the basis of the following criteria:

      1. (A) estimated simple payback period;
      2. (B) ability to repay the loan through energy demand savings;
      3. (C) engineering assessment of the viability of the technology;
      4. (D) likelihood of effective project monitoring; and
      5. (E) ability to meet all state and federal program eligibility requirements.
   3. (3) SECO will approve loans based on the LoanSTAR Program staff recommendations and engineering evaluations of estimated paybacks and reliability.
   4. (4) A public sector institution that receives a loan from SECO will receive a loan agreement that identifies the existing or proposed buildings to be modified, approved measures, rate of interest, loan amount, and loan terms and conditions.
   5. (5) Institutions that are denied funding shall receive written notification that states the reasons for denial and possible actions for qualifying the non-selected projects.

Source Note:The provisions of this §19.44 adopted to be effective August 13, 2002, 27 TexReg 7175.