FY2019 Energize Missouri Loan Program Announcement
$5 million financing available for energy improvements
The Missouri Department of Economic Development is now accepting applications for low-interest energy improvement loans to public schools (K-12), public colleges and universities, local governments, local government/public owned airport facilities (municipal, county, regional, and international), public water and wastewater treatment facilities, and hospitals. In total, the Department is making $5 million in American Recovery and Reinvestment Act of 2009 (ARRA) funds available for these entities to complete energy-efficiency and renewable energy projects throughout the State of Missouri.
The Department’s Division of Energy is accepting loan applications from December 17, 2018 through February 15, 2019 for projects between $10,000 and $500,000. Loan applications will be evaluated on a competitive basis. If money remains after applications have been reviewed and prioritized, consideration will be given to loans in excess of $500,000.
“The ability to invest in energy efficiency should be available to all schools, hospitals, and governments throughout Missouri to increase energy affordability,” Kristy Manning, Director of the Missouri Division of Energy said. “The Energy Loan Program creates jobs in many facets of the economy and by cutting costs on energy, allows taxpayer dollars to be spent on other priorities.”
Loans are repaid from energy savings achieved. Loans to public schools and local governments do not count against debt limits or require a public vote or bond issuance.
Through the Department’s Division of Energy, low-interest loans are provided to public schools, public higher education institutions, hospitals, and local governments to help reduce energy costs. Loan financing may be used for various energy-saving investments such as insulation, lighting systems, heating and cooling systems, combined heat and power, pumps, motors, aerators, renewable energy systems, and other measures that reduce energy use and cost.
Since the ARRA-sourced Energize Missouri Loan Program’s inception in 2011, the Missouri Department of Economic Development – Division of Energy has awarded 23 loans resulting in more than $15 million in completed energy efficiency projects and over $1.9 million in estimated cumulative energy savings.
To apply or for more information about the Energize Missouri Loan Program, please visit http://energyloan.mo.gov or contact the Missouri Department of Economic Development’s Division of Energy at 573-751-2254 or toll-free at 855-522-2796.
FY2018 Special Energy Loan Cycle Has Closed
The FY2018 Special Loan Cycle is now closed.
Low-Interest Loans for Energy Efficiency Improvements
The Division of Energy provides loans to public schools (K-12), public/private colleges and universities, local governments including public owned airport facilities (municipal, county, regional, and international), public water/wastewater treatment facilities and public/private not-for-profit hospitals to help reduce energy costs through the Energy Loan Program. Please refer to current loan cycle offering for eligible applicants. This loan financing may be used for various energy-saving investments.
Loan recipients benefit from increased occupant comfort in their buildings and reduced energy costs. The financing also frees up tax dollars that recipients can use for essential services or other capital improvements. Loan recipients repay the loan with money saved on energy costs as a result of implementing the energy-efficiency projects.
According to Attorney General of Missouri opinion letter No. 136-85, these loans borrowed by public schools and local governments do not require electorate assent and are not considered as “debt” created. Therefore, the loan financing does not count against debt limits or require a public vote or bond issuance.
Since the Energy Loan Program’s inception in 1989, the Division of Energy has awarded more than 612 loans resulting in more than $114 million in completed energy efficiency projects and more than $199 million in estimated cumulative energy savings. There have been no loan defaults in the 29-year history of the Energy Loan Program.
Projects with energy cost savings are eligible with this Energy Loan Program. Examples of eligible projects include:
- High efficiency lighting fixtures and lamps
- High efficiency heating, ventilation and air conditioning systems
- Combined heat and power systems
- Renewable energy systems
- Waste heat recovery
- Energy efficient fine bubble diffusers and high efficiency pumps
- Building shell improvements such as insulation and other infiltration measures
- Other measures that reduce energy use and cost
Recipients of loan financing are determined through a competitive process. Applications are ranked based on the proposed project’s payback score which is determined by dividing the cost to implement a project by the estimated energy cost savings. Projects with the lowest payback score are funded until all available loan funds are allocated.