(a) Funding may be provided to any project consistent with the Act. Priority will be given to eligible projects that demonstrate the following characteristics:      
        (1) promote the purposes of and, where applicable, meet the requirements of, the laws of the United States or the State of Texas pertaining to alternative fuels, vehicle fleet composition requirements, or air quality. Those laws and regulations promulgated thereunder include, but are not limited to, the following:                  (A) 42 United States Code §7586, Clean Air Act (CAA), §246;                      (B) Texas Civil Statutes, Article 601b; Texas Education Code, §21.174, §21.180; Texas Civil Statutes, Chapter 683, §20, Acts of the 66th Legislature, 1979 (Article 1118y); Texas Civil Statutes, Chapter 141, §14, Acts of the 63rd Legislature, 1973 (Article 1118x); and Texas Civil Statutes, §6, Article 1118z;                          (C) Texas Education Code,§21.174(c)-(i); and                              (D) Texas Civil Statutes, Article 4477-5, §3.10, Texas Clean Air Act;                
                  (2) directly place alternative fuel vehicles on the road and/or develop refueling infrastructure;                  
                    (3) located in Texas nonattainment areas, taking into consideration both the nonattainment level and percentage of pollution contributed by mobile sources, so as to have the greatest impact reasonably foreseeable on air quality and in meeting the requirements of air quality laws and regulations, including the Clean Air Act and Energy Policy Act, and the SIP;                    
                      (4) located in borderline Texas attainment areas and other areas where aggressive alternative fuel programs could help prevent the area's air quality from deteriorating to nonattainment levels;                      
                        (5) located in an area in which state, federal, and/or local coordinated air quality or alternative fuel efforts exist or are reasonablyanticipated to be implemented within three years of the date of application for funding;                        
                          (6) provide matching funds from their own revenues or from other sources such as private ventures or other sources of funding;                          
                            (7) undertaken by local political subdivisions that will employ funding provided by the council to supplement either local tax revenues or general revenue funds that would otherwise be expended for the purpose for which funding is requested;                            
                              (8) demonstrate the ability of the applicant to repay loans principally from fuel or other life-cycle savings or from operating revenues.                              
                                (b) Funding for service training may be permitted if included in purchase of vehicles and/or refueling equipment to the extent that such training is not available from other sources, including applicant's own funds, or obtaining such training would be unduly burdensome in relation to the amount of funds available.                               
     Source Note:        The provisions of this §655.75 adopted to be effective February 11, 1994, 19 TexReg 628.