 |
   |
    |
|
     |
|
| Financing a Community Energy Efficiency Program There Are a Variety of Financial Sources That Can be Tapped Cost-cutting improvements such as installing energy-efficient lights, improving a building's heating system, and installing more efficient appliances often require upfront financing. While many residents and businesses may not have the available cash to invest in these improvements, there are a variety of financial sources that can be tapped.
Federal Government Financing Programs Bonds — Government entities have the authority to issue tax-exempt bonds. A bond is a type of I.O.U. Governments issue bonds to investors with a promise to repay the loan by a certain date, along with regular interest payments. While bonds are crucial for raising money to build public buildings, repair roads, and provide public services, they can also be used to finance energy efficiency programs. Small Business Administration Energy Loans — The U.S. Small Business Adminstration offers loans to assist small businesses to engineer, manufacture, distribute, market, and install or service energy-savings measures. To apply for these loans, call your state U.S. Small Business Administration office and ask to speak to a loan officer about energy loans authorized in Section 7 (a) (12) of the Small Business Act. State and Local Government Financing Programs Several states have organized a variety of financing programs, ranging from one-stop audit/financing services to low-interest loan programs. Check with your state energy office (www.eia.doe.gov) to see if your state offers programs such as the following. The Iowa Energy Bank — A one-stop resource that helps municipalities, nonprofit organizations, and schools tap into energy savings without dipping into operating budgets. The Energy Bank links existing resources and expertise for energy audits, technical assistance, and zero-interest loans to improve energy efficiency around the state. The program has improved the efficiency of several hundred public buildings since its establishment in 1986. (www.iowadnr.com/energy/ebank/index.html) Oregon's Small Scale Energy Loan Program (SELP) — Helps businesses, public agencies, and homeowners fund retrofits, and save millions of dollars statewide. The loans vary in size, and can be used in conjunction with state tax credits for energy-efficient technologies. (www.egov.oregon.gov/ENERGY/LOANS/selphm.shtml) |