A. Prior to the award of a capital outlay construction contract for any improvement project set out in Part 2 of this act which has an energy-related component, the responsible agency must notify the Director of the Department of Planning and Budget. The Department of Planning and Budget, with the assistance of the Department of Mines, Minerals and Energy, shall review the project to determine if it meets the guidelines in Item 550 of this act for funding from the Oil Overcharge Expendable Trust Fund. If an application for funding the project is approved by the United States Department of Energy, the Director of the Department of Planning and Budget is authorized to transfer nongeneral funds from this Item to the project.

B. The Director of the Department of Planning and Budget shall withhold from agency appropriations and transfer to this Item an amount estimated at $500,000 from those capital projects that are found to meet the criteria for funding from the Oil Overcharge Expendable Trust Fund and are approved for funding by the United States Department of Energy.

C. The Director of the Department of Planning and Budget is authorized to transfer appropriations from this Item to agencies and institutions to achieve the purpose of the Fund.