1. (a) The term of the loan shall be determined by the State Energy Conservation Office (SECO) based on the anticipated energy and demand savings and the estimated energy conservation measure project installation schedule.
2. (b) SECO shall set the interest rates in an amount sufficient to recover the cost of administering the program.

3. (c) Loan payout and repayment.

   1. (1) Loan proceeds may be used to pay for the entire cost of the retrofit project, including the cost of the energy assessment report, engineering design, construction, equipment acquisition and installation, maintenance, and metering and monitoring.
   2. (2) Loan funds shall be disbursed to the borrower upon receipt of supporting documentation that SECO requires.
   3. (3) A state agency may use general revenue funds that are appropriated for utilities to make loan payments as stipulated in Government Code, Chapter 2305.
   4. (4) The borrower shall repay the principal of and interest on the loan with payments that are not less than the amount of the energy savings estimated by the energy assessment report to result from the energy conservation measures implemented with the loan proceeds.
   5. (5) Frequency of payments shall be no greater than quarterly.
   6. (6) No loans will be forgiven.

4. (d) Loan recipient responsibilities (project monitoring).

   1. (1) Loan recipients shall provide the LoanSTAR Program with the access and information that is necessary to monitor the performance of the retrofits, as stated in the loan agreement.
   2. (2) Loan recipients shall be responsible for submission of all reports that the LoanSTAR Program requests as outlined in the loan agreement.
   3. (3) Compliance with applicable local, state, and federal procurement guidelines and procedures is the responsibility of the loan recipient.

5. (e) Title to equipment.

   1. (1) Title to all equipment that is acquired under this program will vest in the borrower, in accordance with applicable state statutes.
   2. (2) Disposition and inventory of any equipment shall be done in accordance with state statutes and regulations.

Source Note:The provisions of this §19.45 adopted to be effective August 13, 2002, 27 TexReg 7175; amended to be effective March 11, 2010, 35 TexReg 2017.