Energy Loan Program Loan Program... · Final Review ELP staff confirm projects meet rules and...
Transcript of Energy Loan Program Loan Program... · Final Review ELP staff confirm projects meet rules and...
Energy Loan ProgramFinancing your Energy Efficiency Projects with our Low-Interest Loans
Hospitals
Webinar: January 26, 2018 at 10:00 AM
Energy Loan Program History
2
The Energy Loan Program has awarded more than 598 low-interest loans since 1989 for energy efficiency projects. These projects have resulted in more than $198 million in estimated cumulative energy savings.
* As of November 2017
Colleges/Universities3%
Hospitals2%
Local Governments27%
Others0%
Public Schools68%
RATIO OF ENERGY LOANS SINCE 1989
Sector EntitiesNumber of
Energy LoansLoan Amount Annual Savings
Colleges/Universities 18 $10,310,302 $1,513,198
Hospitals 13 $6,147,114 $898,274
Local Governments 160 $19,839,595 $3,099,784
Others 2 $85,199 $28,391
Public Schools 405 $70,446,589 $10,160,120
Total 598 $106,828,799 $15,699,767
Purpose
3
Energy financing designed to be repaid by energy cost savings
Cost
Baseline energy costs
Loan repayment by saved energy costs
Savi
ngs
Saved energy costs retained by owner
Inve
stm
ent
Loan repayment begins
Loan repayment ends
Reduced energy costs
Loan repayment period Pure savings TimelineEnergy efficiency studies
Eligible Entities
4
Public Schools Cities Counties Public & Private Higher Education Institutions
Public & Private Not-For-Profit
Hospitals
Zoological Park Sub-districts Museum Districts
Sewer Districts Water Supply Districts
Project Example: Lighting Upgrades
5
Indoor Lighting Upgrades Outdoor Lighting Upgrades
Occupancy Sensors
Lighting Controls LED Exit SignsLED Wall Pack Upgrades
Project Example: HVAC Upgrades
6
Cooling Tower ReplacementsChiller ReplacementsVariable Frequency Drive Upgrades
Geothermal Heat Pump SystemsBuilding Automation Systems Variable Refrigerant Flow Systems
Project Example: Renewable Energy
7
Solar Photo Voltaic Systems Biomass Boiler Systems
New Construction Efficiency Upgrades
8
The Energy Loan Program can fund the incremental cost difference between standard and more efficient components (i.e. building envelope, lighting, mechanical equipment, etc.).
Benefits of the Energy Loan Program
9
SectorsFinancial Review
CollateralEnergy Savings
ReviewApplication
FeeEarly Payoff
PenaltyIssuance
FeeAdministrative Fee
Public Schools No No
Yes No No No1% financed
through the loan
Counties No No
Cities No No
Zoological Park Subdistricts No No
Museum Districts No No
Water & Waste Water Districts No No
Public Higher Education Institutions No No
Public Hospital No No
Not-for-Profit Hospital Yes Yes
Private Higher Education Institutions Yes Yes
When compared to other financing options, the Energy Loan Program is considered easier with less cost to applicants.
FY2018 Supplemental Loan Cycle
10
$5M available
2.75% interest rate
• Up to 10-year loan repayment• Bi-annual payments
Loan application, loan amount, and benefits
11
HOW MUCH CAN YOU APPLY FOR?$10,000 - $1 million
* Projects greater than $1 million will be considered if funds remain
HOW MUCH CAN YOU BE APPROVED FOR?The project cost or 8.6 x annual cost savings, whichever is lower
LOAN APPLICATION• Application process is user friendly
√ Online Excel Spreadsheet Application
• Simple projects such as lighting upgrades can bedocumented with application worksheets
• Energy audit calculations and reports are acceptable
BENEFITS• Free up your tax dollars for other essential services
• Low-interest loans compare favorably to bonds or commercial loans
• After the loan is paid off, energy savings go into your pocket
• Expedite capital improvements
• Create jobs in your community
12
CYCLE OPEN
January 2 –March 30, 2018
DEADLINE
March 30, 2018
INITIAL REVIEW
15 Days
TECHNICAL REVIEW
15 Days
FINAL REVIEW
30 Days
ANNOUNCEMENT
15 Days
CONSTRUCTION
Up to 18 Months
REIMBURSEMENT
2 Weeks
Announcing CycleELP determines loan interest, eligible entities, date to accept applications, and deadline. In Addition is filed with SOS for the new loan cycle. The announcement is made through press releases, mailing, e-mail blast, personal contacts, presentations, conferences, and monthly newsletter during open cycle. Application is available online at https://energyloan.mo.gov/.
Application DeadlineComplete application includes:
loan application (fillable spreadsheet or PDF), 12 months of
energy bills, energy study, and signed Authorization Form. The
application can be emailed or mailed to the Division of Energy.
Initial ReviewELP staff review each application to ensure completeness: Application Authorization Form signature, energy bills, description of scope, equipment brochures, estimated costs, analysis of energy savings, simple payback, and verification to meet ASHRAE level 2 audit. ELP will also notify DESE, DHE, DNR, DHSS, and DED Business & Community Services for applicants in their respected entity type.
Technical ReviewDE engineering staff review energy study
and request additional information to confirm energy cost savings if needed.
Staff determine if the project analysis is technically sound and cost savings
projections are reasonable. The project can be approved as submitted or
approved with indicated revisions.
Final ReviewELP staff confirm projects meet rules and regulations of the ELP including ranking parameter. Potential applicants are recommended to management team. Applicants are contacted with recommended loan amounts. Final loan documents, including loan agreement, are mailed to applicants.
AnnouncementAnnouncement of loan awards
for the cycle is made through press release, both DE and ELP
websites, social media, and letters to respective legislators.
ConstructionLoan recipients have 18 months to complete construction. ELP staff conduct an initial communication after receipt of fully executed loan documents, monthly contacts during construction, and on-site monitoring visits after construction is complete and before reimbursement.
ReimbursementLoan recipients submit
reimbursement requests for project expenses in accordance with loan agreements. ELP staff review and
approve reimbursements within 2 weeks. ELP staff mail Promissory Note
and satisfaction survey to recipient after reimbursement is deposited.
Note: Application processing times are estimate.
~ June 2018 ~ November 2019~ May 2018~ April 2018 ~ April 2018
Loan Map FY2015 – FY2017
13
FY2014: Ste. Genevieve County Memorial Hospital
14
Project:HVAC System and Outdoor Air Reduction
Loan Amount: $315,800
Annual Savings: $40,273
Loan Term: 10 Years
FY2013: Ozarks Medical Center
15
Project:Hot water boiler upgrades, chiller replacement, steam boiler replacement, lighting upgrades, domestic hot water upgrades
Loan Amount: $2,340,000
Annual Savings: $267,700
Loan Term: 10 Years
FY2015 Emergency Loan: Orrick R-XI School District
16
Project: HVAC System
Loan Amount: $358,250
Annual Savings: $39,691
Loan Term: 10 Years
Video Testimonial: https://youtu.be/qry9OdiU_qM
Further Information
17
Visit our website:
https://energyloan.mo.gov/
Contact Information:
Tracy ParkerEnergy Loan Clerk(573) [email protected]
Dan DahlerProject Manager(573) [email protected]
Rob MockProgram Manager(573) [email protected]
Ron SeylProject Manager(573) [email protected]
Chatchai PinthuprapaProgram Coordinator (573) [email protected]