For Immediate Release: May 12, 2010
Media Contact: Susanne Garfield - 916-654-4989
Energy Commission Approves Last Low-Interest Loan from Stimulus Funds
Nearly $25 million loaned to local jurisdictions across California
SACRAMENTO – The California Energy Commission approved the final low-interest loan to McKinleyville Community Services District for $165,100 using American Recovery and Reinvestment Act (ARRA) funds. Twenty-five California local jurisdictions are receiving a total of almost $25 million in low-interest loans under the State Energy Program (SEP) to fund energy efficient projects that cut energy use and help boost local workforce.
"These low-interest loans are proving to be one of the best ways a local government can stimulate their community's economy, especially when leveraged with their ARRA energy efficiency block grants," said Karen Douglas, Chairman California Energy Commission. "Energy efficiency always provides the most effective way to reduce energy, save money and lay the foundation for them to take their community to the next level of efficiency."
The Energy Commission infused $25 million in stimulus funds into a statewide program offering a first time ever low interest rate of 1 percent for local jurisdictions to invest in energy efficiency for their communities. Most of 25 local jurisdictions leveraged their loan with utility rebates - some maximizing the funds with their Energy Efficiency Conservation Block grant or a State Energy Program grant. The loans ranged from a high of $3 million to the cities of Los Angeles and Fairfield for converting street lights fixtures to more efficient induction lamps to $30,000 to the City of Hollister for replacing the town's more than 30-year old heating and cooling system. All ARRA loans have a repayment period of ten years or less and are repaid from energy savings. Several communities are installing photovoltaic systems on public buildings such as Indian Wells and Portola Valley School District or replacing boilers and chillers at the police station and senior center like the City of Clovis.
These energy efficient investments are expected to save almost $2.6 million in energy costs, approximately 18.6 million kilowatt hours and reduce greenhouse gas emissions by more than 15 million pounds.
The Energy Commission is administering the $226 million SEP and allocated $25 million for the one percent Interest Energy Efficient Revolving Loan Program. Other programs under the SEP are Energy Efficiency Building Retrofit and Municipal Financing Programs ($110 million); Energy Efficient State Property Revolving Loans ($25 million), Clean Energy Workforce Training ($20 million) and the Clean Energy Business Financing ($30.6 million).
A list of the loans are available at: http://www.energy.ca.gov/efficiency/financing/ARRA_one_percent_loans.pdf
For more information about the other ARRA energy programs visit www.energy.ca.gov/recovery
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