Funding Program for Energy Efficiency Projects in Texas
A detailed overview of the LoanSTAR program in Texas, offering low-interest loans to eligible entities for energy efficiency upgrades. The program covers loan sizes, interest rates, application process, loan qualification criteria, phases of the loan process, loan recap statistics, and eligible borrowers. The program aims to help local and county governments, schools, universities, and state agencies save money through energy-efficient measures.
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PACE PACE Workshop Workshop San Antonio San Antonio LoanSTAR LoanSTAR SECO Audience Local and County Governments Public K-12 Schools Public Higher Education Universities State Agencies 1
OVERVIEW OVERVIEW Maximum loan size per application Maximum loan size per application $8 million ($3 million min for repaid ARRA) $8 million ($3 million min for repaid ARRA) Maximum number of loans per application period Maximum number of loans per application period Three per applicant Three per applicant Interest Rates Interest Rates annual rate of 2 percent annual rate of 1 percent. General fund General fund - - annual rate of 2 percent Repaid ARRA fund Repaid ARRA fund - - annual rate of 1 percent. Application Review Application Review First- -come, first come, first- -served basis First served basis Application Submission Application Submission Open until August 31, 2023 Open until August 31, 2023 2
Loan Qualification Criteria Permanently affixed Owned by borrower Loan simple payback is same as loan term - 15 years or less UCRM payback is less than or equal to EUL Qualifying for a Loan Third Party Review 3
LoanSTAR Process 2 Phases: Application & Construction/Installation Design Application Third Party Review 50%, 100% Utility Assessment Report 140 calendar days to complete Retrofit Activities Third Party Review Third Party Review 50%, 100% (Site Visit) Loan Loan Repayment Schedule Reimbursement Agreement 4
Loan Recap Loan Recap K-12 schools 166 ($184 million) / 8.8-year avg. payback Local and County Governments 68 ($173 million) / 7.2 avg. payback Hospital Districts 14 ($9 million) / 8.3-year avg. payback Higher Education 68 ($176 million) / 6.2-year avg. payback State Agencies 27 ($72 million) / 7.1-year avg. payback 343 loans $614 million $85 million Annual Savings $793 million saved 5
Eligible Borrowers 10 Texas Gov't Code 2305.032 34 Tex. Admin. Code 19.41-45 Public taxpayer supported entities 10 Texas Gov't Code 2305.032 34 Tex. Admin. Code 19.41-45 6
State Agencies Title 10, Texas Government Code 2166.406 Cities and Counties Title 9, Local Government Code 302 Statutes Schools, Colleges and Universities Public Schools (K-12): Title 2, Education Code 44.901 Public Higher Education: Title 3, Education Code 51.927 7
Recent Energy Savings Performance Contract (ESPC) Projects Texas Facilities Commission $3,735,373 (9.6 year payback with $388,993 per year in savings) 2/14/2022 2/14/2023 Lighting upgrades, Water and Sewer Conservation and Renewable Energy Kilgore College #2 - $7,412,376 (15-year payback) 9/18/18 3/18/20 HVAC, interior lighting, water conservation 8
PAST LOANSTAR PROJECTS PERFORMANCE TEXAS DEPARTMENT OF CRIMINAL JUSTICE CITY OF PORT LAVACA 9
INTERIOR & EXTERIOR LIGHTING RETROFIT TO LED AT TWO UNITS 2017 BASE FISCAL YEAR: 10,181,212 KWH 2020 FISCAL YEAR: 19% ENERGY CONSUMPTION REDUCTION 8,250,823 KWH TEXAS DEPARTMENT OF CRIMINAL JUSTICE (TDCJ) CUMULATIVE 29 MONTH COST SAVINGS: $284,209 LOANSTAR LOAN : $291,019 SAVINGS ESTIMATION PAYBACK PERIOD: Months ACTUAL PAYBACK PERIOD: Months 54 30 10
REPLACE 6 RTUS, 2 SPLIT SYSTEMS REPLACE INDOOR AND EXTERIOR LIGHTING WITH LED INSTALL DDC AUTOMATIC CONTROLS FOR HVAC SYSTEMS 21% Energy Consumption Reduction Load Factor Improvement IE, very high Consumption compared to Peak Demand Focused renovation effort on reducing operating hours CITY OF PORT LAVACA CUMULATIVE 24 MONTH COST SAVINGS: LOANSTAR LOAN: SAVINGS ESTIMATION PAYBACK PERIOD: ACTUAL PROJECTED PAYBACK PERIOD: $118,900 $530,500 9 YEARS 9 YEARS 11
COOL CHILLERS PROGRAM COOL CHILLERS PROGRAM 12
OVERVIEW OVERVIEW Loan applications reviewed Loan applications reviewed on a first on a first- -come come- -first first- -serve basis serve basis Maximum loan amount of $3,000,000 Maximum loan amount of $3,000,000 Project construction Project construction Completed within twenty Completed within twenty- -four months from contract full execution date from contract full execution date four months Two loans maximum per entity Two loans maximum per entity Interest rate Interest rate - - 0.25%. Repayment term Repayment term - - 15 years 0.25%. 15 years 13
Qualification Criteria Replace 12-year-old or older chillers and associated equipment Like-for-like replacement Qualifying for a Loan 14
Eddy Trevino, Director eddy.trevino@cpa.texas.gov John Kyere, Contract Manager john.kyere@cpa.texas.gov Adam Mueller, Contract Manager adam.mueller@cpa.texas.gov www.seco.cpa.texas.gov Toll Free Number: 1-800-531-5441, ext 1931 15
