(a) Projects that loan candidates propose must fulfill the
following program and eligibility requirements.
  (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) Eligible measures shall have a demonstrated track record
of cost-effectiveness.
  (3) Eligible measures shall be commercially available.
  (4) Each energy conservation measure must be unique in its
application, location, building characteristics, and/or target audience.

  (5) Eligible energy conservation measure projects include:

    (A) indoor and outdoor lighting projects;
    (B) heating, ventilation, and air conditioning equipment (HVAC);

    (C) electrical distribution equipment;
    (D) building shell improvements;
    (E) energy management systems;
    (F) energy recovery systems, including systems that generate
electricity on-site;
    (G) alternate/renewable energy systems;
    (H) load management devices;
    (I) water systems and waste water systems energy conservation
measures;
    (J) other cost-effective energy efficiency enhancements, demand,
or rate-based measures that the LoanSTAR Program has approved; and
    (K) incremental cost on higher energy efficient equipment for
new construction.
(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