Energy Efficiency Financing
Notice and Loan Application:
Interest Rate 0% Loans - PON-13-403 (all files) for K-12 Schools Districts, County office education, State Special schools and Community Colleges
Addendum 1 Cover Letter - Posted March 16, 2015.
Click the "all files" link to see replacement files.
Addendum 2 Cover Letter - Posted October 4, 2016.
Click the "all files" link to see replacement files.Interest Rate 1% Loans - PON-13-401 (all files) for Cities, Counties, Specials Districts, Public College or University
Addendum 1 Cover Letter - Posted March 16, 2015.
Click the "all files" link to see replacement files.
Addendum 2 Cover Letter - Posted October 5, 2016.
Click the "all files" link to see replacement files.
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 for PON 13-403 and PON 13-401.
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: www.cde.ca.gov/fg/fo/r14/prop39cceja13result.asp
Eligible for 1% Interest Rate Loans:
- Cities
- Counties
- Special Districts
- Public College or University (except community colleges)
- Public Care Institutions/ Public Hospitals
- University of California and
- California State University
Residential, commercial, and/or private non-profit institutions are not eligible for these funds.
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
For K-12 Schools Districts, County office education, State Special schools and Community Colleges
Loan Agreement (PDF file, 21 pgs, 173 kilobytes).
PON-13-401 - 1% Loans
For Cities, Counties, Specials Districts, Public College or University, etc.
Bond Loan Agreement (PDF file, 21 pgs, 175 kilobytes).
Non-Bond Loan Agreement (PDF file, 17 pgs, 151 kilobytes).
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 For K-12 Schools Districts, County office education, State Special schools and Community Colleges Loans
1% Loans - PON-13-401 For Cities, Counties, Specials Districts, Public College or University, etc.
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 (if applicable), 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
pubprog@energy.ca.gov
California Energy Commission
1516 Ninth Street, MS-23
Sacramento, CA 95814
Phone: 916-657-4630
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Need help identifying energy savings projects?
- Bright Schools Program
(for K-12 Schools) - Energy Partnership Program
(for public agencies and public or non-profit colleges, universities, and hospitals)
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