Energy Efficiency and Renewable Energy Loan Program

The Pathway Lending Energy Efficiency Loan Program (EELP), a low-interest revolving loan fund, launched in 2010 to assist Tennessee for-profit and not-for-profit commercial and industrial businesses in implementing energy efficiency and renewable energy improvements. In January 2016, EELP was expanded to offer financing to local government entities, including municipalities, counties, school districts, and other public agencies. Pathway Lending, a US Treasury certified community development financial institution, oversees the $29 million revolving loan fund, which is comprised of loan capital provided by the State / TDEC Office of Energy Programs ($14 million), the Tennessee Valley Authority ($10 million), and Pathway Lending ($5 million). Eligible projects under EELP include, but are not limited to: energy efficient equipment upgrades; lighting; building envelope retrofits; cool roofs; renewable energy installations; and co-generation.

At this time, five-year term Energy Efficiency or Renewable Energy loans have a fixed interest rate of 4%, and ten-year loans have a fixed interest rate of 6%. Local government entities are currently eligible to receive up to six years of financing at a 4% interest rate for qualified energy efficiency and renewable energy projects. Qualifying entities may apply for loans between $20,000 and $5 million. 

For more information or to apply, visit Pathway Lending's Energy Efficiency and Renewables Page or contact Brandon England at (615) 425-7171 or Brandon.England@PathwayLending.org.

Pathway Lending maintains a series of EELP success stories on its Energy Efficiency Blog series, some of which are highlighted below. 

Program Resources

Key Compliance Requirements

Build America, Buy America (BABA) 

The Build America, Buy America (BABA) Act requires borrowers, contractors, and subcontractors of federal financial assistance programs to ensure that iron, steel, manufactured products, and construction materials used in infrastructure projects are produced in the United States; include appropriate contract and subcontract provisions explaining BABA requirements and self-certification of compliance with domestic preference requirements; and, when necessary, request a waiver from the federal awarding agency if the circumstances meet an allowable waiver type, such as nonavailability, unreasonable cost, or public interest.Borrowers, contractors, and subcontractors should consult TDEC OEP or the sources on this webpage for sample language and waiver steps to support timely review.

BABA Resources:

• BABA Contract Language: This language is required for inclusion in all contractor and subcontractor agreements. 
• BABA Certification Letter (or equivalent on company letterhead) that includes all elements of Certification Letter: Completed by contractor/vendor and submitted prior to reimbursement. 
• Guidance on Submission of a U.S. DOE Project-Specific Buy America Requirement Waiver Request
• U.S. DOE BABA Guidance
  • Memorandum M-22-11 – Initial BABA Implementation Guidance
  • Memorandum M-24-02 - Updated BABA Implementation Guidance

Davis-Bacon and Related Acts (DBRA)

The Davis-Bacon and Related Acts (DBRA) require that contractors and subcontractors performing construction, alteration, or repair work on federally funded projects pay laborers and mechanics no less than the locally prevailing wages and fringe benefits determined by the U.S. Department of Labor. Borrowers must incorporate required DBA contract provisions into all applicable contracts and ensure that contractors comply with wage determinations, certified payroll reporting, and labor standards. Contractors are responsible for submitting weekly certified payrolls (through the required system LCPtracker), maintaining accurate labor classifications, and resolving any wage discrepancies.Borrowers must review payroll submissions, monitor compliance throughout construction, and retain documentation to demonstrate adherence to federal labor standards.

Contractors and subcontractors performing covered construction work are required to submit weekly certified payrolls through LCPtracker for each week in which work is performed. Borrowers are responsible for ensuring contractors are registered in LCPtracker, reviewing payroll submissions for compliance with applicable wage determinations and labor standards, and maintaining documentation supporting payroll review and approval. The LCPtracker login page and training resources are linked below.

DBRA Resources:

• Wage Determination: Wage determinations establish the minimum hourly wages and fringe benefits that must be paid to laborers and mechanics for covered construction activities. TDEC OEP will assist in identifying the applicable U.S. Department of Labor wage determination(s) for inclusion in all construction contracts. Borrowers must ensure the correct wage determination is incorporated at the time of solicitation and award and applied throughout the project. If needed, current wage determinations can be accessed on SAM.gov by searching by project location (county) and construction type (e.g., building, heavy, highway, residential). Borrowers are responsible for confirming that the appropriate wage determination is included in contracts and for coordinating with OEP if modifications or updates are required prior to award.
• DBRA Contract Language: Borrowers must include the required Davis-Bacon labor standards clauses at 29 CFR § 5.5(a) in full in all covered construction contracts and must include the applicable U.S. Department of Labor wage determination(s). Contractors must flow these clauses and wage determination(s) down to all applicable subcontracts and lower-tier subcontracts.
• Davis-Bacon Poster (WH-1321): Required to be posted at the construction site for the duration of covered work.
• LCPtracker Login Page
• Instructions for Certified Payroll and other guidance and training materials related to Davis-Bacon compliance, including certified payroll submission, payroll review, Prime Approver responsibilities, and LCPtracker system use, are available through the links below:
  • U.S. Department of Labor Davis-Bacon and Related Act
  • U.S. DOE, Davis Bacon Act Compliance using LCP Tracker 
  • Prime Approver Guide from LCPtracker 
  • LCPtracker Contractor User Guide to share with your contractors
  • LCPtracker Knowledge Base: access once you are logged in to your LCPtracker Portal

Additional Federal Compliance Requirements

• Reporting Templates:  Borrowers must use TDEC OEP reporting and reimbursement templates for quarterly performance reporting and monthly invoice requests. Reporting requirements, due dates, and template forms are in Appendix B and Appendix C of the RLF Program Manual.
• Title VI Requirements: Civil rights compliance requirements for federally funded programs. Title VI requirements are located in the “Additional Loan Requirements” section on page 2 and Appendix A on page I of the Program Manual.
•  National Environmental Policy Act (NEPA): NEPA and related environmental review requirements are discussed on page 6 of the Program Manual under “U.S. DOE Implementation of National Environmental Policy Act (NEPA) and Other Acts.” No project work may begin before TDEC OEP approval.
•  National Historic Preservation Act (NHPA): NHPA and Section 106 review requirements are also discussed on page 6 of the Program Manual, and the State Historic Preservation Agreement is included as Attachment 3. Borrowers should review these requirements and coordinate with TDEC OEP to confirm whether project activities align with applicable exemptions or require additional review. Additional Section 106 resources are available through the Tennessee State Historic Preservation Office (SHPO).

Compliance Statement of Responsibility

Compliance requirements must be incorporated into project implementation, including procurement, contracting, construction, and reimbursement processes. Borrowers are responsible for ensuring that contractors and vendors meet applicable requirements and that all required documentation is submitted and retained. This page is intended to support understanding and implementation of RLF compliance requirements. Official requirements are governed by federal law, agency guidance, and loan terms and conditions. 

Urban Story Ventures photo, “Central Plant,” and Crown College photo, “Energy Audit,” by Dennis Schroeder, NREL. All other photos courtesy of TDEC OEP staff, Pixabay.com, or Piktochart.com.