Montana State Buildings Energy Conservation Program

Name

Montana State Buildings Energy Conservation Program

Status

Active

Funding Mechanism

Loan fund

Duration

1989 - present

Objectives

To reduce the operating costs in state facilities by identifying and funding cost-effective energy efficiency improvements

Sponsors

Montana Department of Energy Quality (DEQ)

Eligible Sectors

State Agencies

Eligible Projects/Technologies

Replacement of old, inefficient boilers, upgrading lighting, increasing ventilation system efficiency, insulating buildings, and providing more effective temperature controls

Fund Endowment

The state sells general obligation bonds, uses the bonds proceeds to pay energy efficiency improvements, then uses the resulting energy cost savings to pay debt service on bonds.

Terms

-Funding Instruments

Bonds

-Interest Rates

Bonds presently have a 4.5% interest rate

-Payback

10 years – typically DEQ needs 8 years payback to realize energy savings greater than the bond repayment.

-Size

No limit on the size of project.

-Collateral

-Share of loan in project cost

DEQ completes energy retrofit projects where the energy savings pay for the whole project sometimes with the help of agencies funds or funds from utility conservation programs. DEQ also participates in facility improvement projects where the Long Range Buildings Program funds the cost of new equipment or systems or temperature controls and the State Building Energy Program Funds the incremental cost of going with the energy efficient item.

-Loan criteria

Comments

Sources

Montana Department of Environmental Quality

Contact Information