Prior to execution of the Loan Agreement by the Lender, the Borrower also shall have furnished to the Lender, in form and substance satisfactory to the Lender, an opinion of Borrower’s counsel to the effect that:
(1) the Borrower has been duly created and is validly existing and has full power and authority (under its Charter and By-Laws or general law, if applicable, and other applicable statutes) to enter into and carry out the terms of this Loan Agreement;
(2) this Loan Agreement is duly executed and constitutes a valid and binding contract of the Borrower, enforceable in accordance with its terms except as the enforceability thereof may be limited by bankruptcy, reorganization, insolvency, moratorium, or similar laws affecting the enforcement of creditors’ rights generally;
(3) this Loan Agreement is not in conflict in any material way with any contracts or ordinances of the Borrower; and (4) there is no litigation materially adversely affecting this Agreement or the financial condition of the Borrower.
Prior to execution of the Loan Agreement by the Lender, the Borrower shall have furnished to the Lender, in form and substance satisfactory to the Lender, a certificate of the Borrower certifying the resolution authorizing the Borrower to enter into this Loan Agreement.
All projects must be professionally commissioned and a commissioning report submitted to EESI. The Commissioning Plan establishes the framework for how commissioning will be handled and managed on a given project. This includes a discussion of the commissioning process, schedule, team and team member responsibilities, communication structures and a general description of the systems to be commissioned.
No more than ninety (90%) percent of the Loan shall be disbursed to the Borrower prior to the time the Project has been completed and approved by the Lender. After approval by the Lender, the remaining ten (10%) percent of the Loan will be disbursed to the Borrower. When requesting final payment from the Fund, the Borrower shall submit the requisition required by Section 3.03 of the Loan Agreement and a Completion Certificate signed by an Authorized Borrower Representative.
Construction Progress Reports
Upon Council loan execution, schools districts or their authorized representatives must provide monthly construction progress reports to EESI during the construction phase of the project. The reports will be used to track progress, project changes, and/or delays. Upon receipt of the Completion Certificate, schools districts or their authorized representatives must provide a final construction progress report to close out the project.
Energy Star Portfolio Manager
ENERGY STAR Portfolio Manager®, is an online tool used to measure and track energy and water consumption, as well as greenhouse gas emissions. It may also be used to benchmark the performance of one building or a whole portfolio of buildings, all in a secure online environment. Schools districts or their authorized representatives must enter baseline utility consumption and cost data in Energy Star Portfolio Manager for each facility for the year prior to project implementation, and shall update that data each month during the repayment period. EESI shall be given access to reports on such data upon request.
The Loan Agreement is the official funding document between the Energy Efficient Schools Council (the “Lender”) and a municipal corporation or political subdivision (the “Borrower”), which provides financing of all or a portion of a qualifying capital outlay project (the “Project”) on behalf of the school district.
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.
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:
1. Loans equal to or less than $3,000,000
— 1.5% for the term of the loan.
2. 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.
[Download Loan Terms & Repayment Policy Link]
Measurement and Verification Reports
Measurement and verification (M&V) is the collection of pre and post energy use and building performance data for determining and documenting energy and non-energy benefits resulting from energy efficient project measures. School Districts utilizing a performance contract, shall require the contractor to provide annual measurement and verification reports, which meet the current International Performance Measurement and Verification Protocols. All other projects will utilize Energy Star Portfolio Manager for M&V.