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The maximum loan amount is $3 million per application. There is no minimum loan amount.

Who is Eligible?

For the first 30 days following release of this notice, the Energy Commission will accept loan applications on a first-come, first-serve basis from small California cities and counties receiving their Energy Efficiency and Conservation Block Grant (EECBG) funding directly from the California Energy Commission. Following this initial 30-day period, the Energy Commission will accept loan applications on a first-come, first-served basis for eligible energy projects from all eligible entities.

• Cities
• Counties
• Public Care Institutions
• Public Hospitals
• Public Schools & Colleges
• Special Districts

Non-profit entities such as schools, hospitals, and public-care facilities agencies are not eligible for these funds.

Eligible Projects

Projects with proven energy and/or capacity savings are eligible, provided they meet the eligibility requirements. Examples of projects include:

• Lighting systems
• Pumps and motors
• Streetlights and LED traffic signals
• Automated energy management systems/controls
• Building insulation
• Energy generation including renewable and combined heat and power projects
• Heating and air conditioning modifications
• Waste water treatment equipment

Some energy efficiency projects are not eligible for ARRA funding.

What Projects Are Prohibited Under ARRA funded loans?

Projects that are not consistent with the ARRA project funding criteria, include:

• Swimming Pools
• Gambling Establishments
• Aquariums
• Zoos
• Golf Courses

Criteria For Loan Approval

Energy efficiency projects must be technically and economically feasible.

ARRA funded projects must be completed and fully disbursed on or before March 31, 2012; not include any prohibited activities and be from an eligible applicant.

Additionally, all projects must meet these criteria:

• The loan term cannot exceed the useful life of loan-funded equipment.
• Only project-related costs with invoices dated after loans are officially awarded by the Energy Commission at a Business Meeting are eligible to be reimbursed from loan funds. If your application is rejected for any reason, the Energy Commission is not responsible for reimbursement of any costs.

Interest Rate

The interest rate is 3% and is fixed for the term of the loan.

The interest rates end when a new notice is issued or the loan solicitation is cancelled, whichever occurs first. The Energy Commission's interest rates will be not applied retroactively to existing loans.

Loan Security Requirements - All loans are secured by a loan agreement between the applicant and the Energy Commission and a promissory note. Certain loans (as determined by the Energy Commission) also require a tax certificate. (See loan agreement below).

How Will Funds Be Distributed? -- The funds are available on a reimbursement basis. The final 10 percent of the funds will be retained until the project is completed. Interest is charged on the unpaid principal computed from the date of each disbursement to the borrower.

Repayment Terms - The repayment schedule is up to 15 years and will be based on the annual projected energy cost savings from the aggregated projects.

Applicants will be billed twice a year in June and December; beginning 6 to 18 months after all projects are completed*.

* ARRA funded projects must be completed and fully disbursed on or before March 31, 2012.

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 determination.

Questions?

Phone: Special Projects Office - 916-654-4104
E-mail:pubprog@energy.state.ca.us