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The maximum loan amount is $3 million per application. There is no minimum loan amount.

Who is Eligible?

The Energy Commission will accept loan applications on a first-come, first-served basis for eligible energy projects from all eligible entities.

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

Residential and commercial projects and private non-profit institutions are not eligible for these funds

Eligible Projects

Projects with proven energy and/or demand cost savings are eligible, provided they meet the eligibility requirements. Examples of projects include:

• Lighting systems
• Pumps and motors
• Streetlights and LED traffic signals
• Energy management systems and equipment controls
• Building insulation
• Energy generation including renewable and combined heat and power projects
• Heating, ventilation and air conditioning equipment
• Water and waste water treatment equipment
• Load shifting projects, such as thermal energy storage

Energy efficiency projects must be technically and economically feasible.

Interest Rate

The interest rate is 1% and is fixed for the term of the loan.

The interest rate is valid until a new loan notice is issued or the loan notice is closed. This interest rate will apply to all original loans approved at an Energy Commission Business Meeting on or after February 14, 2012 (the date PON-11-610 was released). Original loan includes the first or initial approval of a loan by the Energy Commission, and does not include amendments, time extensions or augmentations of budget. This interest rate will not be applied retroactively to existing loans originally awarded at a Business Meeting under a previous notice (before February 14, 2012).

Loan Security Requirements

It's simple. A promissory note and a loan agreement between you and the Energy Commission are all that is required to secure the loan.

How Will Funds Be Distributed?

The funds are available on a reimbursement basis. For each reimbursement request, receipts and invoices for incurred expenses must be submitted along with proof of payment.

The final 10 percent of the funds will be retained until the project is completed. Interest is charged on the unpaid principal balance of the loan computed from the date of each disbursement to the borrower.

Repayment Terms

The repayment schedule is based on the estimated annual energy cost savings from the aggregated project(s), using energy costs and operating schedules at the time of loan approval. Loans will be amortized on the estimated annual energy cost savings achieved by the loan-funded project. Applicants will be billed twice a year, in June and December, after the projects are completed.

Loans must be repaid from energy cost savings or other legally available funds within a maximum term of 15 years, including principal and interest.

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 Opinion.

Questions?

Phone: Special Projects Office - 916-654-4104
E-mail:pubprog@energy.ca.gov