The program provides low cost and flexible financing for energy efficiency and renewable energy projects to help drive down costs for all eligible Bond Bank borrowers from towns to school districts.
Eligible Activities
- Lighting
- Waste Heat Recovery
- Renewable Energy Systems
- Space conditioning including HVAC
- Compressed Air Systems
- Energy Efficient Appliance Upgrades
- Building Envelope Improvements
- Water Heaters
- Water Heaters
- Motor Systems
- Fuel Switching
- Necessary and incidental activities and investments related to implementation
Saving Requirements: Loans must achieve measurable energy use or cost savings. The target is 15%, although projects above 5% savings will be considered.
Compatibility with Elective Pay: An eligible use of loan proceeds is the bridging of elective pay credits. The Bond Bank engaged Clifton Larson Allen on a fixed fee basis to assist in the filing of elective pay documentation with the IRS for borrowers.
The Bond Bank can provide fee schedules after initial inquiry. Related costs may be included in the loan amount.
| Measurement & Verification Requirements |
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Loan Process
Contact Vermont Bond Bank loan officer, Ken Linge, to start. Potential borrowers will be invited to apply following a preliminary review of proposed project and/or energy audit.
| Amount | No minimum or maximum |
|---|---|
| Term | Up to 10 years |
| Interest Rate* | 2.125% |
| Closing Costs | Pass through of environmental review cost (approximately $3,000) |
| Payment Dates | Monthly repayment following draw down period |
| Drawdown Period | Up to three months subject to commitment fee for unused balance |
| Prepayment | At any time with no penalty |
| Requisition of Funds | |
| Security | General obligation or appropriation |
| Legal | Local bond counsel opinion |
| Environmental | |
| Covenants | |
| Other | Contractors must provide an equal opportunity and nondiscrimination certificate |
| * Evaluated monthly based on underlying market conditions |
