1. Financing EE Upgrades for K‐12 Schools:
A Comprehensive Approach
Memphis and Shelby County Sustainability Summit
June 26, 2013
Molly Cripps
Director, Office of Energy Programs
Tennessee Department of Environment and Conservation

2. RESOURCE OVERVIEW
• Federal and Other Resources
• Tennessee State Programs
• TVA/Local Power Company Offerings

3. Federal and Other Resources

4. The Lawrence Berkeley Lab recently
published a guide for funding K‐12 school
energy efficiency and renewable energy.
Topics include:
 Grants and Internal Cash
 Bonds and Leasing Arrangements
 Clean energy‐specific financing
Case Study: Williamson County, TN
• 42 schools / 32,000 students in K‐12
• Combined leasing, bank note and
general obligation bond for $5.7
million scope of work
• Improvements included:
 Replacing cooling towers, boilers
and HVAC systems
 Lighting retrofits
 Energy management controls
• 6.5 year simple payback period

5. The DOE Technical Assistance Program (TAP)
offers guidance, resources and information on
financing K‐12 schools
TAP is comprised of:
• One‐on‐one assistance
• Extensive online resource library
• Peer‐exchange forum for best practices and
lessons learned
• Webinar series on various energy efficiency
and renewable energy topics, featuring
expert presenters and case studies
 A webinar will be held Thursday, June 27,
2‐3:30pm EDT on “Energy Efficiency in K‐
12 Schools and State Applications.”
https://www1.gotomeeting.com/register/949982585

6. Other Resources:
• The US Environmental Protection Agency
(EPA) offers tools for financing K‐12 school
projects
• Energy Saving Performance Contracts
 A list of service providers is available
at http://www.naesco.org/

7. Tennessee State
Programs

8. Energy Efficient Schools Initiative (EESI)
• The Energy Efficient Schools Initiative (EESI) was established by the Tennessee
General Assembly in 2008 to:
 Provide grants and loans for capital outlay projects and district staffing
 Future funding will enable retro commissioning projects and provide cost
share to support energy manager positions
 Establish and support energy management programs and policies
 $4.3 million in total grant funding to establish district energy action plans
and energy conservation practices
 $250 grant for each facility that is registered in Portfolio Manager
 Assist districts with measurement and verification of energy savings
• More information is available at http://www.tn.gov/eesi/tech_inc.shtml

9. Qualified Energy Conservation Bonds (QECBs)
• Low interest bonds for qualified energy projects
 Attractive borrowing rates: 1%‐5% effective interest rate
 Issuer gets 3%‐4% subsidy from Treasury
 15 to 22‐year term
• Initially created by Congress in 2008; significantly expanded by ARRA in 2009
• Total national allocation is $3.2 billion; Tennessee allocation is $64,676,000
• Issued for qualified energy efficiency capital expenditures; qualified projects are
broadly defined

10. Qualified Energy Conservation Bonds (QECBs)
• Capital expenditures incurred for purposes of:
 Reducing energy consumption in publicly‐owned buildings by at least 20 percent
 Implementing green community programs (including the use of loans, grants, or other
repayment mechanisms to implement such programs)
 Rural development involving the electricity produced from renewable energy resources
 Energy‐related research facilities and research grants
 Mass commuting facilities
 Demonstration projects (for energy‐related processes)
• In Tennessee, bonds can only be issued if physical asset development or improvement is
critical component of project

11. Qualified Energy Conservation Bonds (QECBs)
• Utilization and Competitive Sub‐Allocation
• OEP will evaluate requests for QECB allocations through a competitive proposal process. An
RFP is expected to be released in October 2013.
• Rules for the sub‐allocation process are in development.
• Competitive sub‐allocation process will still require adherence to appropriate regulations and
conditions of original allocation.
• End result: more places across TN saving money!

12. Pathway Lending is a Private, Non‐Profit Economic Development Lender certified by
the U.S. Department of Treasury.
Founded: 1999
Mission: Providing underserved small businesses with lending solutions and
educational services that result in job creation and economic development.
Energy Efficiency and Renewable Energy Project Lender: Operated the Tennessee
Energy Efficiency Loan Program in conjunction with the State of Tennessee, TVA, and
Pinnacle Bank since 2010.

13. TVA/Local Power
Company Offerings

14. • In partnership with participating local power companies, TVA offers the energyright solutions
for business (ESRB) program for commercial energy efficiency projects
• Through ESRB, TVA provides incentives for implementation of recommended, prescriptive
energy efficiency measures that are identified during a professional facility assessment
• ESRB includes K‐12 schools, and more than 100 school districts have leveraged EESI funding
to complete projects for total first year energy savings of more than $4 million
• For the remainder of Fiscal Year 2013, all new applications are being put into a queue until
further funding for incentives becomes available

15. TEEI Partners

16. www.TnEnergy.org
This project is funded under an agreement with the State of Tennessee. This material is based upon work
supported by the Department of Energy under Award Number DE‐EE0000160. CFDA 81.041.