5. ECCSR 04-21-2011Energy Efficiency Improvement Program
Purpose: The Energy Efficiency Improvements Program is avaIlable to property
owners of commercial or iidustrial buIldu7gs in Ellx River to provide capital
to businesses to invest in energy efficiency and improve their profitability
through reduced energy costs and enhance their ability to retain and create
jobs. In addition, the program helps the City of Ellc River use energy
conservation as an economic development tool.
Amount: Applicants may apply for the cost of improvements up to ~j74,9)9
Eligible Uses: Energy efficiency measures installed in or on abuilding include:
• Facility systems optimization (cotmmissioning or re-commissioning)
• Faciht5~ systems control improvements
• Process efficiency improvements (CenterPoint Energy)
• Lighting efficiency improvements
• Heating, ventilation and nit conditioning system modifications
• Exterior envelope improvements
• Motor and pump efficiency improvements.
• Ground-source-heat pump systems used to heat or cool a facility
• Installation of equipment ox devices Ghat use renewable energy sources to
generate electricity or heat ox cool a building including solo electricity
(photovoltaic), wind-turbine ox solar thermal.
Equity: Must have a min;mum of 10% ° equity piovtded by dte borrower.
Rate: Ftxed at 4%
Term: The maximum maturity-date will be determined by the useful life of the
improvement and the energy payback achieved. For projects that have a
shoxterlength of-payback (2-5) years as calculated according to energy
savings, the loans will have an initial maturity of up to 5 years fiom the date
of closing. Longer life improvements (5-15 years) may apply for a longer
maturity of up to 10 years.
Repayment: Monthly installment payments will be made to the Elk River EDA according
to the amortization schedule approved as part of the loan. Utility rebates as
applicable will be assigned to the Elk River EDA and applied toward
principal repayment of the loan.
Criteria: Applicant must agree to energy audits conducted under the utility company's
Conservation Improvement Program (CIP). If warranted, engineering
studies then are performed on facilities with conservation opportunities
under the utility company's CIP Program.
Proposed energy efficiency improvements that do not qualify for the utility's
prescriptive rebate program will be reviewed and approved by the utility
company servicing the upgrade measures (e.g. Ella River Municipal Utilities,
nlicro Loan Fund Policy & Guidelines Page 4 of IG
Amended A2arch 2011 DA,4F"I'
Connexus, CentexPoint) along with a letter indicatuig eligible utility rebates.
An Elk River Energy City Commission member will be asked to participate
in the EDA Finance Committee review and recoimnendation of the
application.
The loans will be secured by personal and corporate guarantees, and if
applicable a lien on equipment financed and subordinate mortgage on the
property. Installation must be certified through a licensed contractor and
electrician.
Loans less than X75,000 do not qualify as a "business subsidy" by state law
and are therefore exempt fiom state businesssiibsidy reporting requirements.
However, the EDA may track jobs retauied and created as a result of the
project
ID~Gcio Love Fund Policy & Giudelines Page 5 of 16
Amended March 2011 DAAFI'