Energy Efficiency Financing

Notice and Loan Application:

link to Energy Conservation Assistance Act (ECAA) Program Map

Availability of Funds: Before applying, please contact us first for the most current funding availability information!

Applications are being accepted on a first-come, first-served basis. The maximum loan amount is $3 million per application. There is no minimum loan amount.

new Energy Conservation Assistance Act (ECAA) Program Map


Eligibility Information

The Energy Commission will accept loan applications on a first-come, first-served basis for projects with proven energy savings from the following public entities:

Who is Eligible?

Eligible for 0% Interest Rate loans:

  • School district
  • Charter school
  • County office of education
  • State special school
  • Community college district

All loan applicants must be designated to receive a Clean Energy Jobs Act (Proposition 39) award in order to be eligible for the 0% loan. Applicants who are eligible for Proposition 39 award allocation from the California Department of Education for fiscal year 2013/14 are posted under "Entitlements" at this link:

Eligible for 1% Interest Rate Loans:

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

Residential, commercial, and/or private non-profit institutions are not eligible for these funds.

Some state agencies may qualify under Public Resources Code section 25411(c), if the agency owns and operates a school, hospital or public care institution. State agencies may contact Public Programs Office for more information or to request a copy of the loan agreement terms applicable to state agencies.

Eligible Projects

Projects with proven energy and/or demand cost savings 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 waste water treatment equipment
  • Load shifting projects, such as thermal energy storage

Energy efficiency projects must be technically and economically feasible.


Loan Agreement

PON-13-403 - 0% Loans

PON-13-401 - 1% Loans


Terms and Conditions

  • 0% Loans for energy projects: The loan can fund 100% of the project cost within a 20 year (maximum) simple payback. The loan must be repaid from energy savings (including principal and interest) within a maximum of 20 years.
  • 1% Loans for energy projects: The loan can fund 100% 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.

Interest Rate

The interest rates are 0% and 1%, based on eligibility and are fixed for the term of the loan.

Loan Security Requirements

It's simple. A promissory note and a loan agreement between you and the Energy Commission are all that is required to secure the loan.

Repayment Terms

The repayment schedule is based on the estimated annual energy cost savings from the aggregated project(s), 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.

Loans must be repaid from energy cost savings or other legally available funds within the maximum payback terms of 20 years including principal and interest.

Attorney General Ruling

The California Attorney General has determined that the borrowing of funds by a city, county, or school district to implement an energy conservation project pursuant to the terms of Public Resources Code sections 25410-25421 does not require electorate assent under the provisions of section 18 of Article XVI of the Constitution. See the entire text of this Opinion.


How do I apply?

For Application and Attachment documents please see the Application Form & Associated Documents (PDF, DOC, & XLS files):

0% Loans - PON-13-403

1% Loans - PON-13-401

A Feasibility Study must be included with all loan applications (may be submitted via CD or flash drive). The study must contain:

  • Description of energy efficiency projects and buildings/ facilities affected by these projects,
  • Discussion of baseline energy use for the affected facilities, including annual energy related utility bills,
  • All calculations and assumptions to support the technical feasibility and energy savings of the proposed projects,
  • Proposed budget detailing all project costs, and
  • Proposed schedule for implementation of the projects

Mail your application, Governing Board Resolution, and all supplemental attachments to:

California Energy Commission
Energy Efficiency Finance Program
Local Assistance and Financing Office
1516 Ninth Street, MS 23
Sacramento CA 95814-5512

Program Information

How do I apply?

Who is eligible?

Loan Agreement Information

Contact Us

Local Assistance and Financing Office
California Energy Commission
1516 Ninth Street, MS-23
Sacramento, CA 95814
Phone: 916-654-4104

Need help identifying energy savings projects?