An Outline of the Regulation for the Energy Efficiency and Conservation Loan ProgramRural Utilities ServiceElectric ProgramUS Department of Agriculture
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• Electric Program• Water & Environmental Programs• Telecommunications and Broadband Programs
• Homeownership Loans• Home Repair Loans & Grants• Mutual Self‐Help TA Grants• Multi‐Family Housing Loans• Housing Preservation Grants• Community Facilities Loans & Grants
• Business and Industry Guaranteed Loans
• Rural Business Enterprise Grants• Rural Business Opportunity Grants• Intermediary Relending Program• Rural Energy for America Program• Value Added Producer Grants• Cooperative Development Assistance
Program Areas
Low interest funding Area coverage Cooperative principles -
“owned by those we serve” Standardized “rural”
engineering
The Electric Program
PR I N C I P L E S :
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Electric Program GFR Assignments
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Electric Program GFR Assignments
Rural Utilities Service published the Final Rule for the Energy Efficiency and Conservation Loan Program on December 5, 2013 which implements Section 6101 of the 2008 Farm Bill
This regulation is an added subpart to an existing regulation (new “subpart H” to 7 CFR 1710)
Section 6101 expands the ability of the electric program to make loans for energy efficiency activities
The regulation allows new financing opportunities for RUS borrowers to provide energy efficiency activities to businesses and homeowners in rural America
Eligible EE programs can be developed and implemented by an eligible borrower for its service territory
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The program is extremely flexible
Weatherization of homes
Heating, ventilation and air conditioning
Ground source heat pumps
lighting
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Appliances???
Demand-side management
Load Modifiers such as renewables
The list goes on and on……
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A typical borrower’s energy efficiency program might have the utility relending the funds to the consumer for EE upgrades to homes, businesses or industry.
Utilities may charge an interest rate to the consumer for the EE loan.
Loans to RUS borrowers may have terms for up to 30 years, and are based on the aggregate useful life of the equipment.
Potential borrowers should reach out to GFRs for guidance on submitting an application.
Rate Based Structure, the cooperate may choose to include some energy efficiency activities in the rate base
Energy Service Contracts, the cooperative can choose to be a full service energy efficiency provider.
Payment through Electric Bill Financing
This could be a tariff based program or a loan based program
Loans may be serviced directly by an RUS Borrower or a financial institution
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The EECLP loan process closely mirrors our existing loan process
There are some differences though....
Business Plans
Quality assurance plans
Prudent practice for any EE program
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Ground source loop investments etc. may be up to 30 years
Loan advances shall be on a reimbursement basis
Start-up costs are possible 5%
Consumer education and outreach programs may not exceed 5% of the RUS loan amount
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The Rural Business Service (RBS) and Rural Housing Service (RHS) have programs that can be leveraged using EE funds
REAP
REDLG
Housing loans for EE
Let us know your plans and we can get you to the right people…
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Designed by field staff as a resource to be shared with borrowers
Contains more detailed instructions and explanations
Contains examples of board resolutions and such
Goal is to incorporate examples of Business and Quality plans
There are also PowerPoint files available for easier understanding of the regulation
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Gerard Moore 202-720-6285 [email protected]
Please visit our website at: http://www.rurdev.usda.gov/UEP_HomePage.html
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