California Energy Efficiency Financing Program

Name

California Energy Efficiency Financing Program

Status

Active

Funding Mechanism

Loan program

Duration

1979- present

Objectives

To provide financing for schools, hospitals, and local governments through low-interest loans for feasibility studies and the installation of energy-efficiency measures.

Sponsors

California Energy Commision

Eligible Sectors

Schools, hospitals, cities, counties, special districts, and local governments.

Eligible Projects/Technologies

Energy audits, feasibility studies, 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 street lights /LED traffic signals, as well as some existing buildings, some new construction or other energy-using facilities, i.e., pumps or other energy-using facilities.

Fund Endowment

US$ 10 million from the State (as of April an additional US$ 50 million)

Terms

-Funding Instruments

Loans

-Interest Rates

The current rate is 3%

-Payback

9 year simply payback and up to 11 years but the schedule will be determined by the projected annual energy savings from the project.

-Size

Maximum loan amount is US$ 3,000,000 per application, or US$ 5,000,000 per organization, i.e., school; districts

-Collateral

All loans are secured by a promissory note and a note agreement between the applicant and the Energy Commission. Non-profits not meeting the Commission's financial criteria test is required to secure the loan with assets, a deed of trust, certificate of deposit, or other means as determined by the Energy Commission.

-Share of loan in project cost

100%

-Loan criteria

Energy efficiency projects must be technically or economically feasible. Projects must have a simple payback of nine years or less based on energy savings; loans for energy projects must be repaid from savings within 11 yrs including principal and interest; loans for energy audits/studies within two years; 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 are paid for after approval by Efficiency Committee, acting as the Peak Load Reduction Committee, may be included in the loan request

Comments

Sources

Contact Information

Program Manager, Virginia Lew Vlew@energy.state.ca.us