The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Building--A structure and its associated site where energy or water consumption takes place.

(2) Estimated simple payback period--The estimated number of years necessary for the savings from the utility cost reduction measure (UCRM) improvements to equal the cost of installing the improvements. The formula used in this determination is the total estimated UCRM costs (including audit, metering, installation, equipment, and engineering design, but excluding interest) divided by the annual estimated utility cost savings. For Energy Savings Performance Contracts only, the formula used in this determination is the total estimated UCRM costs (including audit, metering, installation, equipment, engineering design, and interest) divided by the annual estimated utility cost savings.

(3) Facility--Any major energy or water using group of buildings in geographic proximity to each other or a major energy or water using system that one or more public sector institutions own and occupy.

(4) Interest rate--The percentage of the loan amount charged on an annual basis by SECO to a borrower for the use of the LoanSTAR program proceeds.

(5) Loan agreement--The written agreement between an applicant and SECO that details all terms and requirements under which the loan is issued, including the intended use of the loan proceeds.

(6) LoanSTAR Program--The state Revolving Loan Program that SECO administers and which funds Utility Cost Reduction Projects. The program is comprised of five elements: energy and water audits, energy and water efficiency retrofits or enhancements, a revolving loan financing mechanism, program monitoring, and evaluation.

(7) Project cost--All costs that SECO determines to be directly related to the identification, design, implementation, metering, and monitoring of UCRM.

(8) Public sector institution--Any state agency; community college; institution of higher education as defined in Education Code, §61.003; unit of local government including a county, city, town, or public hospital; a public school; or political subdivision of the state.

(9) Utility Assessment Report (UAR)--A technical report which identifies and documents energy, water, and other cost saving measures. This report must be submitted to SECO by potential LoanSTAR borrowers for financing approval. The UAR is prepared by a State of Texas licensed professional engineer.

(10) Utility Cost Reduction Measure (UCRM)--A commercially available energy efficient device, technique, or technology that is designed to reduce energy consumption, peak energy demand, water consumption or utility costs at an existing facility that a public sector institution owns and occupies, and that is permanently affixed to the building or is permanently installed on the site. Retrofit measures that result from renewable energy resources are eligible UCRMs.

(11) Utility Cost Reduction Project--The identification, design, installation, monitoring, and evaluation of one or more energy and water efficient measures that are designed to reduce energy consumption, peak energy demand, water consumption, or utility cost.

Source Note: The provisions of this §19.42 adopted to be effective August 13, 2002, 27 TexReg 7175; amended to be effective March 11, 2010, 35 TexReg 2017; amended to be effective April 7, 2016, 41 TexReg 2497