Last DSIRE Review: 05/30/2012
||State Loan Program
|Eligible Efficiency Technologies:
||Lighting, Lighting Controls/Sensors, Chillers , Furnaces , Boilers, Heat pumps, Central Air conditioners, Heat recovery, Programmable Thermostats, Energy Mgmt. Systems/Building Controls, Building Insulation, Motors, Motor VFDs, Custom/Others pending approval, Led Exit Signs, Energy Management Systems
|Eligible Renewable/Other Technologies:
||Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Geothermal Heat Pumps
||Nonprofit, Schools, Local Government, State Government, Public Schools, Public Universities, Public Tax District Supported Hospitals, Community-Based and House-of-Worship Nonprofit (Pilot Program)
|Maximum Incentive:||$5 million|
|Terms:||Interest rates are set with each Request for Application. Loans are repaid through energy cost savings. Projects must have composite payback of 10 years or less. |
|Funding Source:||Petroleum Violation Escrow Funds; ARRA |
|Program Budget:||$190 million (including ARRA funds)|
Texas Government Code § 2305.032|
1993 (subsequently amended)
Note: Postings for applications occur annually in April and October. Visit the Texas State Energy Conservation Office LoanSTAR web site for additional details.
Through the State Energy Conservation Office (SECO), the LoanSTAR Program offers low-interest loans to all public entities, including state, public school, colleges, university, and non-profit hospital facilities for Energy Cost Reduction Measures (ECRMs). Such measures include, but are not limited to: HVAC, lighting, and insulation. Funds can be used for retrofitting existing equipment or, in the case of new construction, to finance the difference between standard and high efficiency equipment. The evaluation of on-site renewable energy options (e.g., solar water heating, photovoltaic panels, small wind turbines) is encouraged in the analysis of potential projects.
The LoanSTAR Program funds “Design-Bid-Build, Design-Build projects or Energy Savings Performance Contracts. All projects are approved based on the Detailed Energy Assessment Report, which must be prepared according to LoanSTAR Technical Guidelines or the Performance Contracting Guidelines. SECO performs design specification review and on-site construction monitoring at the very minimum when the project is 100% complete. Repayment of the loans does not begin until after construction is 100% completed.
Between September 2010 and April 2012, LoanSTAR originated nine loans totaling over $28.9 million. Applications are available on the program website. The technical guidelines for the LoanSTAR program can be found on the program web site.
In June 2011, lawmakers passed H.B. 2077 to expand the LoanSTAR Program to include non-profit organizations and religious institutions in a pilot program. The Texas State Energy Office developed a pilot program targeting these organizations. The pilot program will still require a composite utility savings payback of 10 years or less. In April 2012, a Notice of Loan Fund Availability (NOLFA) and Request for Application (RFA) was announced. Borrower applications are due on June 28, 2012.