Energy Efficiency Financing for Public Sector Projects

Cities, counties, public care institutions, public hospitals, public schools and colleges, and special districts in California can apply for low-interest loans from the California Energy Commission for energy efficiency projects in their buildings and facilities. Residential and commercial projects and non-profit institutions are not eligible for these funds.

Entities eligible for 0% loans include:

• School districts
• Charter schools
• County office of educations
• State special schools
• Community college districts

Entities eligible for 1% loans include:

• Cities
• Counties
• Special Districts
• Public College or University (except community colleges)
• Public Care Institutions/ Public Hospitals
• University of California
• California State University

There is no minimum loan amount, but the maximum loan amount per application is $3 million. The loan term cannot exceed the useful life of loan-funded equipment, and will be determined on a case-by-case basis based on the estimated annual energy cost savings from the projects. The exact loan term will be determined such that the energy savings will cover the loan payments.

For a project to be considered, it must have proven energy savings and meet the eligibility requirements of the loan program. Examples of projects include:

• Lighting systems
• Pumps and motors
• Streetlights and LED traffic signals
• Energy management systems and equipment controls
• Building insulation
• Energy generation including renewable energy and combined heat and power projects
• Heating, ventilation and air conditioning equipment
• Waste water treatment equipment
• Load shifting projects, including thermal energy storage

Full details and application packets are available at the web site above.