Loan applications are accepted on a first-come, first-served basis for projects with proven energy savings from the following public entities:

  • Cities
  • Counties
  • Special Districts
  • Public Colleges/Universities (Except Community Colleges)
  • Public Care Institutions/Public Hospitals
  • University of California 
  • California State Universities

Residential, commercial, and private nonprofit institutions are not eligible.

More information is in the program opportunity notice for PON-17-401 .

Projects with proven energy or demand cost savings or both are eligible. Examples of projects include:

  • Lighting system upgrades.
  • 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 wastewater treatment equipment.
  • Load-shifting projects, such as thermal energy storage.

Energy efficiency projects must be technically and economically feasible.

More information is in the program opportunity notice for PON-17-401 .

Applications are accepted on a first-come, first-served basis. The maximum loan amount is $3 million per application. Contact the Energy Commission before applying to check current funding availability.  

More information is in the program opportunity notice for PON-17-401.

The program opportunity notice for the 1 percent loan program is PON 17-401 and is available to cities, counties, special districts, public colleges or universities, public care institutions, and public hospitals.

Sample Loan Agreements

See the program opportunity notice for PON-17-401  for more information.

  • One percent loans for energy projects: The loan can fund 100 percent of the project cost within a 17-year (maximum) simple payback. The loan must be repaid from energy savings (including principal and interest) within a maximum of 20 years. 
  • The loan term cannot exceed the useful life of loan-funded equipment.
  • Loans are made on a reimbursement basis.
  • Only approved project-related costs with invoices dated within the executed term of the loan are eligible to be reimbursed from loan funds.
  • Partial funding can be provided for projects that exceed the simple payback. Simple payback is calculated by dividing the loan amount by the estimated first-year energy cost savings.
  • A promissory note and a loan agreement between the applicant and the Energy Commission are all that are required to secure the loan.
  • The repayment schedule is based on the estimated annual energy cost savings from the aggregated projects, 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.

See the program opportunity notice for PON-17-401  for more information.

Energy Conservation Assistance Act

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