(a) Applications. Prior to the construction or operation of a proposed state agency cogeneration facility, a state agency shall file an application with the council. The council's written approval of an application must be received before construction or operation of a proposed state agency cogeneration facility may commence.      
        (1) State agencies can obtain application forms from the council by requesting such forms in writing from the chairman or administrative support staff.        
          (2) State agencies may expend such staff and funding resources as is reasonable and necessary to complete the application form. State agencies shall not expend significant resources beyond a preliminary design phase in pursuit of a cogeneration project until notified in writing by the council that said project has been approved. Seven copies of the application forms shall be filed with the chairman.          
            (3) The chairman or staff shall, notmore than seven days after an application is received, acknowledge receipt of same in writing to the applicant, and send a copy of such application to each council member.            
              (4) The council may request additional information from the applicant which the council finds necessary to fulfill its duties of technical and economic review. The council may reject as incomplete any application which in its opinion does not contain sufficient information with which to perform a valid analysis. The council shall inform the proposing agency of its reasons for rejection of an incomplete application. A rejected application shall be deemed void.              
                (b) Council action. The council shall review the economic and technical merits of a proposed state cogeneration project and approve or disapprove the project in writing within six months of filing of an application not otherwise deemed incomplete under subsection (a)(4) of this section. The six-month time period shall beginonly after the application is accepted as complete with all the information required for the council to make a decision. Incomplete applications may be returned to the applicant for further information.                
                  (1) The council will only consider those issues related to the economic and technical feasibility of a particular project.                  
                    (2) The size and design of a proposed state agency cogeneration project shall be limited to that necessary to economically supply the cogenerating state agency, considering the optimum balance of annual thermal and electrical energy requirements, and including agency approved expansions.                    
                      (3) The council may make its decision contingent on fulfillment of special provisions.                      
                        (4) The council shall inform the proposing agency in writing of its reason(s) for approval or disapproval.                        
                          (5) Upon approval of the application, the state agency may commence final design, construction, or operation of the cogeneration facility.                          
                            (6) State agencies may protest any finding of the council by a letter to the chairman. All such protests shall be resolved by formal vote of the council within 30 days of receipt by the council of such protest.                            
                              (7) Any state agency which cancels or abandons a cogeneration facility approved by the council must notify the council in writing within 60 days of termination of the project stating its reasons for abandonment or termination.                             
     Source Note:        The provisions of this §201.5 adopted to be effective August 25, 1988, 13 TexReg 3978.