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Home > News > Alabama Local Government Energy Loan Program
Alabama Local Government Energy Loan Program
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Name |
Alabama Local Government Energy Loan Program |
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Active |
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Funding Mechanism |
Loan fund |
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Duration |
1997- present |
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Objectives |
To offer loan funds to small, rural government entities including rural, public, and non-profit school systems to upgrade equipment and/or buildings to an energy-efficient level. The Local Government Energy Loan Program will enable small, local govt. entities and rural school systems to receive low-cost loan for energy audits, engineering, and energy efficiency measures. |
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Sponsors |
The Alabama Department of Economic and Community Affairs – Science, Technology and Energy Division (ADECA-STE Division)/PowerSouth, USDA for Rural Development, and the Local Government Energy Loan Program |
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Eligible Sectors |
Local governments and public school systems. |
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Eligible Projects/Technologies |
Lighting retrofits, HVAC equipment, heat recovery systems, load management devices, energy management devices, energy management systems, electrical distribution equipment, alternate/renewable energy systems, boiler and central plant improvements, and other retrofits, demand or rate-based measures. |
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Fund Endowment |
US$ 2,000,000 |
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Terms |
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-Funding Instruments |
Loans |
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-Interest Rates |
Loan interest rate is 0% – at no time can the rate exceed 5%. ADECA-STE Division reserves the right to raise the interest rate on future loans. |
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-Payback |
7 – 10 years |
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-Size |
Maximum amount is US$ 150,000 per unit of local govt. or per school campus. Funding per school system is limited to US$ 300,000. |
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-Collateral |
Letter of credit or other similar form of security. |
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-Share of loan in project cost |
100% that includes management fee of 3% for PowerSouth. |
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-Loan criteria |
To be eligible, a facility must belong to a town or city with a maximum population of 20,000 or a county with a maximum population of 50,000; water and waste water systems and public or non-profit schools are eligible; buildings must be constructed before May 1, 1989 and have a cooling and heating system. |
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Comments |
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Sources |
ADECA |
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Contact Information |
Renee' G. Fuller reneef@adeca.state.al.us |
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