Energy Efficiency Financing

As Low as 3.95 Percent Loans Now Available!!

The California Energy Commission's Energy Efficiency Financing Program provides financing for schools, hospitals and local governments through low-interest loans for feasibility studies and the installation of energy-saving measures.

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Eligibility

Who is Eligible?

• Public Schools & Colleges
• Cities
• Counties
• Special Districts
• Public Hospitals
• Public Care Institutions

What Types of Projects are Eligible for Loans?
(The following is a partial list.)

• Lighting
• Motors or variable frequency drives and pumps
• Building insulation
• Heating and air conditioning modifications
• Automated energy management systems/controls
• Energy generation including renewable energy projects and cogeneration
• Streetlights/LED traffic signals

What Types of Facilities are Eligible for Loans?

Existing buildings, some new construction or other energy-using facilities (i.e., pumps and outdoor lights). Call (916) 654-4147 to discuss eligibility, or send e-mail to: pubprog@energy.state.ca.us

Application

An application to the Energy Commission is available for downloading as an Adobe Acrobat Portable Document Format (PDF) file and a Microsoft Word file. To download, navigate and print the PDF file, you will need the free Acrobat Reader software, which you can download from Adobe's Web Site.

• Application Form & Sample Resolution for Low-Interest Public Agency Loans (ECAA Loans)
  Updated: April 18, 2007. (PDF file, 10 pages, 260 kb)
• Application Form & Sample Resolution for Low-Interest Public Agency Loans (ECAA Loans)
  Updated: April 18, 2007. (Microsoft Word file, 400 kb)

If you cannot download these forms, please contact the Commission directly by phone 916-654-4147.

Terms and Conditions

How Much Is Available? - Up to $26 million is available. Loans can finance up to 100 percent of the cost of energy efficiency projects. The maximum loan amount is $3 million per application. There is no minimum loan amount

Criteria For Loan Approval - Energy efficiency projects must be technically and economically feasible. Projects must have a simple payback of 10 years or less based on energy costs savings. Additionally, projects must meet these criteria:

• Loans for energy projects must be repaid from savings within 15 years, including principal and interest (approximate 10-year simple payback*).
• Loans for only energy audits/studies must be repaid within two years.
• The loan term cannot exceed the useful life of loan-funded equipment.
• Projects can start once the application is on file with the Energy Commission. Only project-related costs with invoices dated after loans are officially awarded by the Energy Commission at a Business Meeting are eligible to be reimbursed from loan funds. If your application is rejected for any reason, the Energy Commission is not responsible for reimbursement of any costs.

Interest Rate

The interest rate is 3.95% and it is fixed for the term of the loan. This interest rate applies to loans made between April 16, 2007 and when the available funds are exhausted or a new notice is issued whichever occurs first.

Loan Security Requirements - All loans are secured by a tax certificate, a promissory note, and a loan agreement between the applicant and the Energy Commission.

How Will Funds Be Distributed? -- The funds are available on a reimbursement basis. The final 10 percent of the funds will be retained until the project is completed. Interest is charged on the unpaid principal computed from the date of each disbursement to the borrower.

Repayment Terms - The repayment schedule is negotiable up to 15 years and will be based on the annual projected energy cost savings from the aggregated projects. Call the California Energy Commission for an estimated payment schedule for your project.

Applicants will be billed twice a year in June and December, beginning 6 to 18 months after all projects are completed.

Attorney General Ruling

The California Attorney General has determined that the borrowing of funds by a city, county, or school district to implement an energy conservation project pursuant to the terms of Public Resources Code sections 25410-25421 does not require electorate assent under the provisions of section 18 of Article XVI of the Constitution. See the entire text of this determination.

Loan Agreement

A loan agreement is available for downloading as an Adobe Acrobat Portable Document Format (PDF) file. In order to download, navigate and print this document, you will need the free Acrobat Reader software, which you can download from Adobe's Web Site.

• Download Loan Agreement
  (Updated: March 2006, 20 pages, 56 kilobytes)

If you cannot download this form, please contact the Energy Commission directly by phone 916-654-4147.

Other Related Programs

• Bright Schools Program - provides technical assistance in identifying energy efficiency opportunities in existing and planned school facilities
• Energy Partnership Program - provides technical assistance in identifying energy efficiency opportunities in existing and planned city, county, college, hospital, special district and public care facilities

Criteria, funding limits and interest rates for loans change periodically. Energy Commission staff will try to update the changes on the website as soon as they occur.

Questions?

PLEASE CALL - 916-654-4147
or
E-mail:pubprog@energy.state.ca.us