1. (a) The LoanSTAR Program will determine the term of the loan based upon anticipated energy and demand savings and time that are needed to install the energy conservation measure(s) (ECMs).
2. (b) An interest fee that covers the cost of administration and operation of the program will be charged at a rate that the State Energy Conservation Office (SECO) will determine. All interest fees will be computed on an annual percentage rate basis.

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) Loan repayment schedules shall be determined on the basis of expected payback and project installation time.
   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.