Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 25 - SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
Subchapter S - WHOLESALE MARKETS
Section 25.510 - Texas Energy Fund In-ERCOT Generation Loan Program
Universal Citation: 16 TX Admin Code § 25.510
Current through Reg. 50, No. 13; March 28, 2025
(a) Purpose. The purpose of this section is to implement Public Utility Regulatory Act (PURA) §§34.0104, 34.0106, and 34.0108, which establish requirements and terms for loans to finance dispatchable electric generating facilities within the ERCOT region.
(b) Definitions. The following words and terms, when used in this section, have the following meanings unless the context indicates otherwise.
(1) Borrower--An
applicant to the Texas Energy Fund who is successfully awarded a loan under
this section and executes a loan agreement with the commission.
(2) Commercial operations date--The resource
commissioning date, as defined in the ERCOT protocols, for the last generation
resource that is part of an electric generating facility financed by a loan
under this section.
(3) Generation
resource--Has the same meaning as defined in the ERCOT protocols.
(4) 12-Month performance availability factor
(PAF)--A metric calculated with ERCOT availability and real time (RT)
telemetered data for each generation resource in an electric generating
facility financed by a loan under this section. The PAF is computed as the
average ratio of each generation resource's RT high sustainable limit (HSL) and
its obligated capacity over a 12-month measurement period, expressed as a
percentage. Intervals that occurred during an approved planned outage of a
generation resource are excluded. The PAF is calculated as follows:
(5) 12-Month planned outage factor
(POF)--A metric calculated with ERCOT data for each generation resource in an
electric generating facility financed by a loan under this section. The POF is
computed as the percentage of time each generation resource spent in planned
outages over a 12-month measurement period. The POF is calculated as follows:
(c) Eligibility.
(1) A power generation company, municipally
owned utility (MOU), electric cooperative, or river authority is eligible for a
loan under this section. An electric utility other than a river authority is
not eligible for a loan under this section.
(2) The following are eligible for a loan
under this section:
(A) New construction of an
electric generating facility having at least 100 megawatts (MW) of nameplate
capacity with an output that can be controlled primarily by forces under human
control. For purposes of this section, new construction of an electric
generating facility means that the facility site has no existing point of
interconnection to the ERCOT power region.
(B) An upgrade to an existing electric
generating facility that results in a net increase of at least 100 MW of
nameplate capacity for the facility with an output that can be controlled
primarily by forces under human control. For purposes of this section, an
existing electric generating facility already has a point of interconnection to
the ERCOT power region, and the upgrade does not require an additional point of
interconnection to enable delivery of energy from the increased
capacity.
(C) A new or upgraded
electric generating facility that is serving or will serve an industrial load
or PUN, provided that the electric generating facility meets the following
conditions: the portion of new nameplate capacity that will serve the
industrial load or PUN must be less than 50 percent of the facility's total new
nameplate capacity, and the remainder of new capacity serving the ERCOT market
must be greater than 100 MW.
(3) In addition, to be eligible for a loan
under this section, a proposed electric generating facility must:
(A) be designed to interconnect and provide
power to the ERCOT region;
(B) be
designed to participate in the ERCOT wholesale market;
(C) consist of one or more generation
resources that interconnect to the ERCOT region through a single point of
interconnection; and
(D) be
eligible to interconnect to the ERCOT region based on the attributes of the
owners of the facility, according to the requirements in the Lone Star
Infrastructure Protection Act (codified at Texas Business and Commerce Code
§
117.002).
(4) The following activities are
not eligible for a loan under this section:
(A) Construction or operation of an electric
energy storage facility.
(B)
Construction or operation of a natural gas transmission pipeline. For the
purposes of this section, only the infrastructure necessary to connect an
electric generating facility to a natural gas supply system may be considered
part of the cost of the facility and eligible for a loan. Only those costs in
support of new or upgraded capacity that is exclusively provided to the ERCOT
region are eligible.
(C)
Construction of an electric generating facility that met the planning model
requirements necessary to be included in the capacity, demand, and reserves
report issued by ERCOT before June 1, 2023.
(D) Construction or upgrade of an electric
generating facility that will provide more than 50 percent of its nameplate
capacity to an industrial load or PUN.
(E) Construction or upgrade of an electric
generating facility that is capable of switching service at its point of
interconnection between ERCOT and another power region.
(d) Notice of intent to apply.
(1) No earlier than May 1, 2024 and no later
than May 31, 2024, an applicant must submit a notice of intent to apply in the
manner prescribed by the commission. A corporate sponsor or parent may submit
the notice of intent on behalf of a subsidiary applicant. Except as provided in
paragraph (2) of this subsection, information submitted to the commission as
part of the notice of intent to apply is confidential and not subject to
disclosure under Chapter 552, Government Code. The notice of intent to apply
must include:
(A) The applicant's legal name
and the proposed name of the electric generating facility for which it seeks a
loan;
(B) The anticipated nameplate
capacity of each generation resource in an electric generating facility
proposed to be financed with a loan under this section, and if the proposed
facility will serve an industrial load or PUN, the net nameplate capacity of
each generation resource that will be dedicated to ERCOT;
(C) The anticipated commercial operations
date of each generation resource in the electric generating facility;
(D) The amount of the loan requested;
and
(E) For each electric
generating facility, if an applicant anticipates contributing equity in its
application, a non-binding attestation demonstrating that the applicant, or a
corporate sponsor or parent on the applicant's behalf, is capable of financing
project-related costs not financed by a loan under this section.
(2) Concurrent with the notice of
intent to apply, the applicant, or a corporate sponsor or parent of the
applicant, must separately file a letter with the commission stating the
applicant's legal name and the MW capacity that the requested loan amount will
finance.
(e) Application requirements and process. A loan application must be submitted in the form and in the manner prescribed by the commission. The application portal will be open for an eight-week window, beginning on June 1, 2024, at 12:00 a.m., and closing on July 27, 2024, at 11:59 p.m. The executive director may extend the application window by providing public notice of the extension at least 30 days prior to the previously announced closing date. The executive director may also open additional application windows if necessary to achieve the objectives of this section. A corporate sponsor or parent may submit an application on behalf of a subsidiary applicant. Information submitted to the commission as part of the loan application process is confidential and not subject to disclosure under Chapter 552, Government Code. An application must include each of the requirements detailed in this subsection. An applicant may withdraw an application at any time while under commission review.
(1) The applicant's legal name and the
proposed name of the electric generating facility for which it requests a
loan.
(2) Amount of the loan
requested.
(3) The anticipated
nameplate capacity of each generation resource in an electric generating
facility proposed to be financed with a loan under this section, and in the
case of an electric generating facility that will serve an industrial load or
PUN, the nameplate capacity of each generation resource that is proposed to be
dedicated to ERCOT and the anticipated maximum non-coincident peak demand of
the industrial load or PUN.
(4)
Applicant information.
(A) A copy of any
information submitted to ERCOT regarding the applicant's attestation of market
participant citizenship, ownership, or headquarters, if submitted, or a direct
attestation of market participant citizenship, ownership, or headquarters, if
such information has not yet been submitted to ERCOT;
(B) Evidence of the applicant's experience
with siting, permitting, financing, constructing, commissioning, operating, and
maintaining electric generating facilities to provide reliable electric service
in competitive energy markets;
(C)
Evidence of the applicant's creditworthiness, including:
(i) A binding equity commitment letter, if
the applicant proposes to fund any project costs using equity, or a binding
letter with information regarding the applicant's other funding sources,
demonstrating the ability to fund the balance of project costs separate from
the loan under this section plus the required three percent construction escrow
deposit amount; and
(ii) Audited
financial statements for each of the previous five fiscal years of the
applicant's operations, or if not available, audited financial statements of
the applicant's corporate sponsor or parent company. Statements must include
total assets, total liabilities, and net worth; and, if available for the
applicant, its corporate sponsor or parent, or both, credit ratings issued by
major credit rating agencies.
(5) Project information.
(A) A narrative explanation that details how
the facility will contribute to reliably meeting peak winter and summer load in
the ERCOT region, including the project's plans for ensuring adequate fuel
supplies and preparations for compliance with §
25.55 of this title (relating to
Weather Emergency Preparedness);
(B) Demonstration of the project's
eligibility under subsection (c) of this section, including a statement
indicating whether any generation resource in the electric generating facility
will serve an industrial load or PUN;
(C) Project-specific information that will
allow the TEF administrator to evaluate the viability and attributes of the
electric generating facility, and each individual generation resource,
including:
(i) A table with the resource
operation attributes, including nameplate capacity, heat rate, seasonal net
maximum sustainable ratings during winter and summer, cold and hot temperature
start times, resource ramp rate, and the original equipment manufacturer's
estimated equivalent availability factor (EAF) calculation.
(ii) If any generation resource in the
electric generating facility will serve an industrial load or PUN, an
attestation of the net nameplate capacity of each generation resource that will
be dedicated to ERCOT and nameplate capacity that will serve the industrial
load or PUN, a description of how the electric generating facility will
primarily serve and benefit the ERCOT bulk power system given its relationship
to an industrial load or PUN, including details of all obligations or
commitments of the electric generating facility to provide energy or capacity
to the industrial load or PUN, and whether the proposed electric generating
facility's generation capacity would be available to the ERCOT bulk power
system during any Energy Emergency Alert, and a copy of any information
submitted to ERCOT regarding PUN net generation capacity
availability;
(iii) One-line
diagrams of the proposed project for both transmission planning and the
facility;
(iv) Evidence of site
control, consistent with applicable ERCOT planning guide
requirements;
(v) An up-to-date
phase I environmental site assessment, conducted in accordance with standards
identified in 40 C.F.R. Part 312 ;
(vi) A description of the electrical
interconnection plan, including evidence that the proposed project is in the
interconnection queue with ERCOT; a copy of the ERCOT screening study, if
completed; and a copy of the full interconnection study with the
interconnecting transmission service provider, if completed;
(vii) A description of the fuel and water
supply arrangements, including copies of applicable fuel and water supply
agreements, if available, and evidence of receipt of necessary water rights and
applicable permits;
(viii) A
description of the operations and maintenance staffing plan, organizational
structure, and operating programs and procedures for the proposed project,
including copies of operations and maintenance agreements, if available, and
organizational charts;
(ix) A list
of all required environmental, construction, and operating permits with current
approval status;
(x) A description
of the air emissions compliance plan, including evidence of receipt of any
required air emissions credits;
(xi) A detailed financial forecast of cash
available for debt service, covering a period equal to the repayment period of
the loan, including sources of revenue, capital, and an annual operating and
maintenance budget; and
(xii) A
proposed project schedule with anticipated dates for major project milestones,
such as the start date for project engineering, construction start date,
submission of available interconnection documents with ERCOT, completion date
of the ERCOT screening study, completion date of the full interconnection
study, execution of the standard generation interconnection agreement, if
applicable, submission of applicable registration documents with ERCOT and the
commission, and commercial operations date.
(6) Estimated costs. A description of
estimated project costs, which includes:
(A)
Development, construction, and capital commitments required for the project to
reach completion;
(B)
Permitting-related costs;
(C)
Development fees;
(D) Land
acquisition and lease costs;
(E)
Legal fees;
(F) Up-front
fees;
(G) Commitment
fees;
(H) Interest accrued and
capitalized during construction;
(I) Ancillary credit facility fees, if
applicable;
(J) Title insurance;
and
(K) Interconnection
costs.
(f) Evaluation Criteria. The commission will approve or deny an application based on the criteria and TEF administrator evaluations outlined in this subsection. Evaluations and other recommendations provided by the TEF administrator are advisory only. All final decisions on whether to approve or deny each application will be made by the commission.
(1) The TEF administrator will evaluate an
application under this section based on:
(A)
The applicant's or its corporate sponsor or parent's:
(i) Quality of services and management and
proposed organizational structure for the project for which the applicant seeks
a loan;
(ii) Efficiency of
operations, as shown by the applicant's existing generation resources and asset
management practices;
(iii) History
of electricity generation operations in this state and this country;
(iv) Resource operation attributes, including
fuel type and heat rate, seasonal net maximum sustainable ratings for winter
and summer, cold and hot temperature start times, resource ramp rate, and the
original equipment manufacturer's estimated EAF;
(v) Ability to address regional and
reliability needs;
(vi) Access to
resources essential for operating the facility for which the loan is requested,
such as land, water, and reliable infrastructure, as applicable;
(vii) Evidence of creditworthiness and
ability to repay the loan on the terms established in the loan agreement,
including the applicant's total assets, total liabilities, net worth, and
credit ratings issued by major credit rating agencies;
(B) The nameplate capacity, total forecasted
revenues, and total estimated costs of the facility for which the loan is
requested; and
(C) The completeness
of the application.
(2)
The TEF administrator may also consider the following criteria:
(A) The suitability of the facility site to
support the construction, operation, and maintenance of the proposed facility
and to provide sufficient access to utilities;
(B) The sufficiency of the various
construction and equipment supply contracts necessary to construct the
facility;
(C) Whether and to what
extent the proposed facility will serve an industrial load or PUN;
(D) The commercial feasibility of the
facility's construction schedule, including the projected commercial operations
date;
(E) The facility's proposed
environmental permits and commitments;
(F) The reasonableness of the applicant's
forecast of non-fuel operating and maintenance costs;
(G) The methodology used to construct the
facility's financial forecast of projected net revenues, expenses, and cash
flows;
(H) The sufficiency of the
applicant's proposed sources of equity or other funding sources to cover the
costs of the facility not funded through a loan provided under this
section;
(I) Whether the facility
can achieve the applicant's EAF and capacity projections over the life of the
loan agreement; and
(J) The basis
for the total projected construction costs, including project
contingencies.
(3) The
TEF administrator will conduct due diligence on each application to gauge the
feasibility of the project. Each applicant must submit an independent
engineer's report, signed and sealed by a professional engineer licensed in the
state of Texas, at the applicant's own expense, that assesses the feasibility
of the project, its location, and all supporting commercial agreements relating
to fuel, water, site control, and interconnection. The TEF administrator may
request that an applicant provide additional information it determines
necessary to conduct a complete evaluation of the project proposal.
(g) Loan Structure. An approved loan will have the following characteristics:
(1) Consist of no more than 60 percent of the
estimated cost of the electric generating facility to be completed, or in the
case of an electric generating facility that serves an industrial load or PUN,
consist of no more than 60 percent of a percentage of total estimated facility
costs equal to the percentage of the total capacity of the facility that is
dedicated to ERCOT;
(2) Be the
senior debt secured by:
(A) the electric
generating facility to be completed; or
(B) with regard to an MOU or river authority,
the revenues of the applicant's utility system into which the electric
generating facility will be incorporated and made a part of;
(3) Have a term of 20
years;
(4) Be payable starting on
the third anniversary of the estimated commercial operations date of the
electric generating facility as stated in the application;
(5) Be payable ratably on terms on which the
TEF administrator and the applicant have agreed, based on the applicant's
expectation of cash flows from the project and the TEF administrator's
assessment of the applicant's cash flows; and
(6) With respect to a borrower other than an
MOU or river authority, be structured as senior debt secured by a first lien
security interest in the assets and revenues of the project.
(7) Notwithstanding paragraph (1) through (6)
of this subsection, a loan accepted by a borrower that is an MOU or river
authority may be in the form of a public security, as defined in Chapter 1201,
Government Code, issued under Texas laws governing MOU or river authority
financing, provided that the MOU or river authority, at its own expense,
presents documentation of indebtedness satisfactory to the
commission.
(h) Loan Terms and Agreements. A borrower must enter into one or more agreements with the commission that include the terms of this section.
(1) Credit agreement--the primary agreement
between the borrower and the commission that will govern the terms and
conditions under which the commission will loan funds to the borrower. The
credit agreement will include the following key terms:
(A) Performance covenant--each generation
resource in an electric generating facility that is financed by a loan under
this section must maintain a PAF of at least 85 percent and a POF no greater
than 15 percent, evaluated monthly, over the trailing 12-month period,
throughout the term of the loan.
(B) Loan facility--a senior secured first
lien loan facility will be advanced to the borrower in one or more drawdowns
after the closing date of the credit agreement and upon satisfaction of any
conditions precedent, and may continue until the project achieves commercial
operation. Amortization schedules for the loan facilities will be determined
during due diligence and specified in the credit agreement.
(i) Upon initial closing of the credit
agreement and after the borrower has met the conditions precedent outlined in
the loan agreement, the borrower may request an initial loan disbursement for
up to 60 percent of qualifying and documented incurred expenses that are part
of the total estimated cost of construction for the project, as verified by the
TEF administrator. Equity may be funded pro rata with TEF debt or may be
required in its entirety prior to funding of TEF debt, based on the credit
quality of the application and discretion of the commission and as outlined in
the loan agreement.
(ii) During the
period of construction, the borrower may request loan disbursements for up to
60 percent of the documented project construction and commissioning
costs.
(iii) For all loan
disbursements, the borrower must submit a construction drawdown certificate in
the form specified by the commission. The TEF administrator will review the
construction drawdown certificate and, upon the TEF administrator's approval,
will instruct the Texas Treasury Safekeeping Trust Company to disburse
funds.
(C) Other capital
contributions. The TEF administrator will verify the borrower's ability, or the
ability of the borrower's corporate sponsor, to fund the required commitment of
the balance of no less than 40 percent of the construction and commissioning
costs.
(D) Interest on the loan
amounts disbursed under the credit agreement will accrue daily at a fixed
annual rate of three percent, starting at initial disbursement and continuing
throughout the term of the loan.
(E) Voluntary prepayment--the borrower may
voluntarily prepay the loan amount under the credit agreement in whole or in
part at any time without premium or penalty, except that the loan agreement may
require that borrowers pay any breakage costs associated with the loan, and the
borrower must agree to adhere to the terms of the performance covenant for the
duration of the 20-year term.
(F)
Collateral--to secure the indebtedness under the credit agreement, the
borrower, other than an MOU or river authority, will grant the commission a
first priority security interest in all of its existing and after-acquired real
and personal property related to the facility and in all of the outstanding
equity interests of the borrower in the facility.
(G) Registration--prior to the initial loan
disbursement, the borrower must register with the commission as a power
generation company, unless the borrower is an MOU, electric cooperative, or
river authority. The borrower must also agree to register each generation
resource in the electric generating facility with ERCOT, according to ERCOT's
registration requirements in its protocols for generation resources.
(H) A change of ownership and control occurs
if greater than 50 percent of the equity interest in the project is sold to a
third party. The borrower and the third party must submit an application for
change of ownership and control commission, that meets the eligibility
requirements of subsections (c) and (e) of this section. The acquiring third
party must agree to adhere to the terms of the performance covenant in
paragraph (1)(A) of this subsection and compliance and audit covenant in
paragraph (1)(I) of this subsection for the remainder of the 20-year term of
the borrower's loan. A change of ownership and control will require the
commission's approval, and such approval will not be unreasonably withheld.
Upon approval of a change of ownership and control, the acquiring third party
must update the power generation company registration and the generation
resource registration to reflect the change of ownership and control. The
commission's determination on a change of ownership does not impact any
person's obligations under PURA §39.158.
(I) Compliance and audit covenants--the
credit agreement will include debt covenants requiring the borrower to meet all
statutory requirements for loan application eligibility and a debt covenant
requiring that the borrower submit annual financial audits and credit
assessments throughout the term of the loan. If the borrower's electric
generating facility serves an industrial load or PUN, the borrower must also
submit an annual accounting, at the generation resource level, showing the
capacity made available exclusively to the ERCOT bulk power system during the
performance year. The annual accounting must consist of a comparison between
the sum of the nameplate capacity of each generation resource in the electric
generating facility and the maximum non-coincident peak demand of the
associated industrial load or PUN. Annual financial audits, credit assessments,
and electric generating facility performance assessments submitted under this
section are confidential and not subject to disclosure under Chapter 552,
Government Code.
(2)
Depositary agreement--an agreement between the borrower and commission that
will give the commission, as lender, control over the borrower's deposit
accounts and securities accounts to perfect the commission's security interest
in those accounts.
(3) Security
agreement--an agreement between the borrower and the commission that will
authorize the commission, as lender, to take control of and transfer all
material project assets in the event of a default on the credit agreement,
subject to the applicable procedures and approvals identified in PURA
§34.0108.
(4) Pledge
agreement--an agreement between the borrower and the commission that will
create a security interest in the equity interests of the project in favor of
the commission as the senior secured party.
(5) Deposit agreement--an agreement between
the borrower and the commission in which the borrower will agree to a deposit
described in subsection (i) of this section.
(6) Events of default--the borrower must
agree to specified events of default, which include:
(A) Failure to pay principal, interest, or
other amounts due;
(B) Breach of a
covenant in any agreement that has not been remedied within the time prescribed
by the loan agreement;
(C)
Inaccuracy of representations in any agreement;
(D) Bankruptcy or insolvency of the borrower;
and
(E) Abandonment.
(7) Remedies for events of
default--the borrower must agree to the remedies described in PURA
§34.0108 following an event of default.
(8) Subordination and other agreements--to
the extent that the project is to be financed by debt other than a loan under
this section, each other creditor must agree that a loan under this section
will be the senior debt secured by the facility. The borrower will be
responsible for the preparation and costs associated with any agreement
necessary to maintain the senior position of the loan under this
section.
(9) With respect to a
borrower that is an MOU or river authority, the forms by which the requirements
of paragraph (1) through (8) of this subsection are accomplished can be
substituted by documentation satisfactory to the commission that is customarily
used in connection with the issuance of public securities that are subject to
approval by the Office of the Texas Attorney General or satisfied by reference
to applicable Texas law. An MOU or river authority that presents documentation
in accordance with this paragraph will be responsible for the preparation and
costs of that documentation.
(i) Deposits.
(1) The borrower must deposit in an escrow
account held by the Texas Comptroller of Public Accounts or provide in a
standby letter of credit an amount equal to three percent of the estimated cost
of the project for which the loan is provided. The terms of a standby letter of
credit must permit a draw in full upon a commission determination that
withdrawal of a borrower's deposit is not authorized under paragraph (4) of
this subsection. The borrower must deposit the required funds or provide the
standby letter of credit before the initial loan amount is disbursed.
(A) Standby letters of credit provided under
paragraph (1) of this subsection must use the standard form standby letter of
credit template approved by the commission. The original document of the
standby letter of credit must be provided in a manner established by the
commission.
(B) The standby letter
of credit must be issued by a financial institution that is supervised by the
Board of Governors of the Federal Reserve system, the Office of the Comptroller
of the Currency, or a state banking department and is a:
(i) U.S. domestic bank with an
investment-grade credit rating; or
(ii) U.S. domestic office of a foreign bank
with an investment-grade credit rating.
(2) The borrower may not withdraw the deposit
from the escrow account or terminate its standby letter of credit unless
authorized by the commission.
(A) For deposits
related to the construction of new facilities, the commission will authorize
the borrower's withdrawal of its deposit funds or the release of the borrower's
standby letter of credit, as applicable, if the facility for which the loan was
provided is interconnected in the ERCOT region:
(i) before the fourth anniversary of the date
the initial loan funds were disbursed; or
(ii) after the fourth anniversary but before
the fifth anniversary of the date the initial loan funds were disbursed, if the
commission finds that extenuating circumstances caused the delay.
(B) For deposits related to
upgrades to existing facilities, the commission will authorize the borrower's
withdrawal of its deposit funds or the release of the borrower's standby letter
of credit, as applicable, if the facility for which the loan was provided is
completed:
(i) before the third anniversary
of the date the initial loan funds were disbursed; or
(ii) after the third anniversary but before
the fourth anniversary of the date the initial loan funds were disbursed, if
the commission finds that extenuating circumstances caused a delay in the
completion of the project.
(C) For the purpose of this subsection,
interconnection occurs when the last generation resource that is part of an
electric generating facility financed by a loan under this section is issued a
resource commissioning date, as defined in the ERCOT protocols.
(3) Upon the occurrence of an
event that entitles the borrower to withdraw its deposit or request termination
of its standby letter of credit--interconnection or completion of its
project--the borrower will file a notice of satisfaction with the commission
stating that the borrower requests the return of the deposit. The notice must
state:
(A) A description of the event that
the borrower asserts as justification for withdrawal of the deposit or
termination of the standby letter of credit, including the date on which the
event occurred and any relevant evidence required to support the
assertion;
(B) The date of initial
loan disbursement; and
(C) A
detailed statement of extenuating circumstances, if any, that support the
borrower's request for a late withdrawal of the deposit resulting from a
delayed interconnection or completion of the project, as described in paragraph
(2)(A)(ii) or (B)(ii) of this subsection.
(4) The commission will evaluate each notice
of satisfaction to determine whether the borrower is entitled to withdrawal of
its deposit or release of its standby letter of credit. If the borrower
demonstrates that it has satisfied the requirements for withdrawal, then the
commission will instruct the comptroller to return the deposit to the borrower
or will release the borrower's standby letter of credit. If the commission
determines that withdrawal is not authorized, including if the borrower fails
to file a timely notice of satisfaction, then it will instruct the comptroller
to transfer the deposit to the Texas Energy Fund or will direct a draw on the
borrower's standby letter of credit and deposit the funds in the Texas Energy
Fund.
(j) No Contested Case or Appeal. None of an application for a loan, a request for withdrawal of a deposit, or a request for approval of a change of ownership is a contested case. Commission decisions on a loan application or request for withdrawal of deposit are not subject to motions for rehearing or appeal under the commission's procedural rules.
(k) Expiration. This section expires September 1, 2050.
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