NEW PROGRAM OFFERS LOW-INTEREST LOANS TO INCREASE ENERGY EFFICIENCY OF COMMERCIAL, INSTITUTIONAL AND INDUSTRIAL BUILDINGS
TRENTON, N.J. (July 18, 2011) – Building on the Christie Administration’s commitment to a greener and more affordable use, management, and development of energy in the State, the New Jersey Economic Development Authority (EDA) today launched the Clean Energy Solutions Energy Efficiency Revolving Loan Fund (EE RLF). New Jersey-based commercial, institutional or industrial entities that have already received an approved Energy Reduction Plan under the New Jersey Board of Public Utilities’ (BPU) Pay for Performance program can now apply for a low-interest loan up to a maximum of 80 percent of total eligible project costs, not to exceed $2.5 million.
“This program will provide much needed gap financing to ensure that commercial and industrial buildings are able to achieve energy efficiency improvements that benefit New Jersey ratepayers, reduce operating costs for businesses, and enhance the environment,” said EDA Chief Executive Officer Caren S. Franzini. “As a revolving loan program, the EE RLF was designed to be a sustainable funding source that will support these important projects now and well into the future.”
The supplemental financing must be used for whole-building energy efficiency improvements, and projects must meet the requirements defined under Pay for Performance. Specifically, existing buildings must have generated a peak demand over 100 kW for any of the preceding 12 months. For new construction, buildings must have at least 50,000 square feet or more of planned conditioned space. Applicants must have an energy reduction plan that defines a comprehensive package of measures capable of reducing energy consumption by 15 percent or more or achieving energy costs 15 percent below the current energy code. Existing buildings undergoing substantial renovations may also be eligible. Hospitals, public colleges and universities, 501 (c) (3) organizations and local governmental entities are exempt from the 100 kW and 50,000 square feet requirements.
“The new Revolving Loan Fund provides a critical financing source for the installation of energy efficiency measures,” said BPU President Lee A. Solomon. “Providing business owners and local government officials with new opportunities to reduce their energy use helps lower the cost of doing business in New Jersey, improving our economy and our environment.”
The EE RLF is a companion to BPU’s Pay for Performance, which provides grant incentives to large commercial and industrial customers who build or upgrade their facilities by making comprehensive investments in energy efficiency. There is a minimum 1.1:1 debt service coverage ratio and personal guarantees are required for any person or entity with 10 percent or more ownership in a project. Applicants will be required to provide evidence of a source of funds needed to complete a project and BPU will take a lien on equipment to be financed, business assets, and/or collateral. Businesses should also create or maintain jobs in New Jersey. Financing under the program cannot exceed 100 percent of total eligible project costs from all public State funding sources.
For additional information on the EE RLF, visit www.njeda.com/EERLF. To learn more about opportunities for business growth throughout New Jersey, visit the State’s business portal at www.NewJerseyBusiness.gov.