Energy Loan ProgramFinancing your Energy Efficiency Projects with our Low-Interest Loans

Hospitals

Webinar: January 26, 2018 at 10:00 AM

Energy Loan Program History

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The Energy Loan Program has awarded more than 598 low-interest loans since 1989 for energy efficiency projects. These projects have resulted in more than $198 million in estimated cumulative energy savings.

* As of November 2017

Colleges/Universities3%

Hospitals2%

Local Governments27%

Others0%

Public Schools68%

RATIO OF ENERGY LOANS SINCE 1989

Sector EntitiesNumber of

Energy LoansLoan Amount Annual Savings

Colleges/Universities 18 $10,310,302 $1,513,198

Hospitals 13 $6,147,114 $898,274

Local Governments 160 $19,839,595 $3,099,784

Others 2 $85,199 $28,391

Public Schools 405 $70,446,589 $10,160,120

Total 598 $106,828,799 $15,699,767

Purpose

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Energy financing designed to be repaid by energy cost savings

Cost

Baseline energy costs

Loan repayment by saved energy costs

Savi

ngs

Saved energy costs retained by owner

Inve

stm

ent

Loan repayment begins

Loan repayment ends

Reduced energy costs

Loan repayment period Pure savings TimelineEnergy efficiency studies

Eligible Entities

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Public Schools Cities Counties Public & Private Higher Education Institutions

Public & Private Not-For-Profit

Hospitals

Zoological Park Sub-districts Museum Districts

Sewer Districts Water Supply Districts

Project Example: Lighting Upgrades

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Indoor Lighting Upgrades Outdoor Lighting Upgrades

Occupancy Sensors

Lighting Controls LED Exit SignsLED Wall Pack Upgrades

Project Example: HVAC Upgrades

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Cooling Tower ReplacementsChiller ReplacementsVariable Frequency Drive Upgrades

Geothermal Heat Pump SystemsBuilding Automation Systems Variable Refrigerant Flow Systems

Project Example: Renewable Energy

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Solar Photo Voltaic Systems Biomass Boiler Systems

New Construction Efficiency Upgrades

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The Energy Loan Program can fund the incremental cost difference between standard and more efficient components (i.e. building envelope, lighting, mechanical equipment, etc.).

Benefits of the Energy Loan Program

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SectorsFinancial Review

CollateralEnergy Savings

ReviewApplication

FeeEarly Payoff

PenaltyIssuance

FeeAdministrative Fee

Public Schools No No

Yes No No No1% financed

through the loan

Counties No No

Cities No No

Zoological Park Subdistricts No No

Museum Districts No No

Water & Waste Water Districts No No

Public Higher Education Institutions No No

Public Hospital No No

Not-for-Profit Hospital Yes Yes

Private Higher Education Institutions Yes Yes

When compared to other financing options, the Energy Loan Program is considered easier with less cost to applicants.

FY2018 Supplemental Loan Cycle

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$5M available

2.75% interest rate

• Up to 10-year loan repayment• Bi-annual payments

Loan application, loan amount, and benefits

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HOW MUCH CAN YOU APPLY FOR?$10,000 - $1 million

* Projects greater than $1 million will be considered if funds remain

HOW MUCH CAN YOU BE APPROVED FOR?The project cost or 8.6 x annual cost savings, whichever is lower

LOAN APPLICATION• Application process is user friendly

√ Online Excel Spreadsheet Application

• Simple projects such as lighting upgrades can bedocumented with application worksheets

• Energy audit calculations and reports are acceptable

BENEFITS• Free up your tax dollars for other essential services

• Low-interest loans compare favorably to bonds or commercial loans

• After the loan is paid off, energy savings go into your pocket

• Expedite capital improvements

• Create jobs in your community

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CYCLE OPEN

January 2 –March 30, 2018

DEADLINE

March 30, 2018

INITIAL REVIEW

15 Days

TECHNICAL REVIEW

15 Days

FINAL REVIEW

30 Days

ANNOUNCEMENT

15 Days

CONSTRUCTION

Up to 18 Months

REIMBURSEMENT

2 Weeks

Announcing CycleELP determines loan interest, eligible entities, date to accept applications, and deadline. In Addition is filed with SOS for the new loan cycle. The announcement is made through press releases, mailing, e-mail blast, personal contacts, presentations, conferences, and monthly newsletter during open cycle. Application is available online at https://energyloan.mo.gov/.

Application DeadlineComplete application includes:

loan application (fillable spreadsheet or PDF), 12 months of

energy bills, energy study, and signed Authorization Form. The

application can be emailed or mailed to the Division of Energy.

Initial ReviewELP staff review each application to ensure completeness: Application Authorization Form signature, energy bills, description of scope, equipment brochures, estimated costs, analysis of energy savings, simple payback, and verification to meet ASHRAE level 2 audit. ELP will also notify DESE, DHE, DNR, DHSS, and DED Business & Community Services for applicants in their respected entity type.

Technical ReviewDE engineering staff review energy study

and request additional information to confirm energy cost savings if needed.

Staff determine if the project analysis is technically sound and cost savings

projections are reasonable. The project can be approved as submitted or

approved with indicated revisions.

Final ReviewELP staff confirm projects meet rules and regulations of the ELP including ranking parameter. Potential applicants are recommended to management team. Applicants are contacted with recommended loan amounts. Final loan documents, including loan agreement, are mailed to applicants.

AnnouncementAnnouncement of loan awards

for the cycle is made through press release, both DE and ELP

websites, social media, and letters to respective legislators.

ConstructionLoan recipients have 18 months to complete construction. ELP staff conduct an initial communication after receipt of fully executed loan documents, monthly contacts during construction, and on-site monitoring visits after construction is complete and before reimbursement.

ReimbursementLoan recipients submit

reimbursement requests for project expenses in accordance with loan agreements. ELP staff review and

approve reimbursements within 2 weeks. ELP staff mail Promissory Note

and satisfaction survey to recipient after reimbursement is deposited.

Note: Application processing times are estimate.

~ June 2018 ~ November 2019~ May 2018~ April 2018 ~ April 2018

Loan Map FY2015 – FY2017

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FY2014: Ste. Genevieve County Memorial Hospital

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Project:HVAC System and Outdoor Air Reduction

Loan Amount: $315,800

Annual Savings: $40,273

Loan Term: 10 Years

FY2013: Ozarks Medical Center

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Project:Hot water boiler upgrades, chiller replacement, steam boiler replacement, lighting upgrades, domestic hot water upgrades

Loan Amount: $2,340,000

Annual Savings: $267,700

Loan Term: 10 Years

FY2015 Emergency Loan: Orrick R-XI School District

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Project: HVAC System

Loan Amount: $358,250

Annual Savings: $39,691

Loan Term: 10 Years

Video Testimonial: https://youtu.be/qry9OdiU_qM

Further Information

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Visit our website:

https://energyloan.mo.gov/

Contact Information:

Tracy ParkerEnergy Loan Clerk(573) 526-9544tracy.parker@ded.mo.gov

Dan DahlerProject Manager(573) 522-3371daniel.dahler@ded.mo.gov

Rob MockProgram Manager(573) 751-5955rob.mock@ded.mo.gov

Ron SeylProject Manager(573) 526-4623ronald.seyl@ded.mo.gov

Chatchai PinthuprapaProgram Coordinator (573) 526-7770chatchai.pinthuprapa@ded.mo.gov