Energy Efficient Loan Program
The current EESI Loan Program uses a low-interest revolving loan mechanism to fund energy-efficient renovation and retrofit projects in Tennessee’s public K-12 schools. New construction projects that are designed to exceed the current energy code may also apply and be considered for funding. To date, the EESI has originated 79 loans totaling $105,568,193 across the state.
Funding Eligible to
Public K-12 Schools
Special School Districts
Technical Assistance Eligible to
Public K-12 Schools
Special School Districts
Achievement Schools Districts
Eligible projects are construction, rehabilitation, or repair measures that meet the Technical Design Guides recommended by the EESI Technical Advisory Committee and have been approved by the Energy Efficient Council. Eligible projects may include the following energy conservation measures that have proven energy and/or demand cost savings:
• Interior and Exterior lighting system upgrades
• Pumps and motors
• Energy management systems and equipment controls
• Building insulation
• Heating, ventilation and air conditioning equipment
• Water and waste water treatment equipment
• Load shifting projects
Loan Rules & Regulations
The Energy Efficient Schools Council Loan Rules and Regulations establishes minimum requirements to award loans from the Energy Efficient Schools Council Fund to school systems for qualifying capital outlay projects, including projects where a provider has warranted predetermined energy use objectives under the criteria established by the technical advisory committee and approved by the council.
The EESI’s Project Application utilizes a Microsoft Excel based application to collect project details that identify energy efficient construction, rehabilitation, or repair measures that are planned to be completed at specified public school facilities. The loan application must be signed by the School District Director, School Board Chair, and, if the applicant is not a special school district, the jurisdictional County or City Mayor.
The signed Project Application submitted to EESI by schools districts or their authorized representatives will be used to determine project eligibility and should not be considered a guarantee for funding. Loan applications will be approved according to written policies established by the Council.
IMPORTANT - Before applying, applicants should contact the EESI Staff for the most current funding information. This is a revolving loan fund and repayments from previously approved loan awards replenish the fund balance.
Project Narrative and Supporting Documentation
A Project Narrative and supporting documentation must be included with all loan applications. The Project Narrative and supporting documentation 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,
• Building energy models calculations that meet the current ASHRAE Standard 140,
• Proposed budget detailing all project costs, and
• Proposed schedule for implementation of the projects.
Loan Terms and Repayment
The repayment period and interest rate is established for each loan approved by the Council based upon written Council policy. The application must include a cost-benefit analysis which demonstrates that the annual energy savings are sufficient to retire the loan within the term requested.
• The maximum combined loan amount is $5 million (please see LOAN RULES for additional information). There is no minimum loan amount.
• The interest rate is fixed:
º Loans equal to or less than $3,000,000
· 1.5% for the term of the loan.
º Loans greater than $3,000,000
· A loan application exceeding $3,000,000 will be broken into two separate loans and will be assessed an interest rate as follow:
• 1.5% for the first $3,000,000 for the term of the loan and
• 2.0% for the remaining funds requested.
• It is the legislative intent that the council establish and operate its programs in a manner that makes funds available on an equitable basis for the benefit of LEAs of all sizes, characteristics and geographical locations. A loan applicant with an existing EESI loan may apply for an additional loan if additional funding becomes available, and when the applicant’s existing loan project is complete.
• Before applying, applicants should contact the EESI Staff for the most current funding information. This is a revolving loan fund and repayments from previously approved loan awards replenish the fund balance.
• The repayment period of a loan (the number of years needed to repay the loan (principal and interest)) will be determined using an estimate of the energy cost savings during the first year after project completion. Energy cost savings are based on applicable tariff and operating schedules at the time the loan application is submitted.
The recipient will make monthly payments in accordance with a repayment schedule provided by EESI. A participating school district may repay the loan at any time without prepayment penalty.
• Loans must be repaid from energy cost savings or other legally available funds within a maximum term of 16 years (including principal and interest).
• The final amortization of a loan will be based on the total funds disbursed to a recipient and terms set forth in the loan agreement. The loan repayment term cannot exceed the effective useful life of the loan-funded equipment.