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9A Page 9 Sustainable Cities Feature: CEC Funding for Energy Efficiency Available to Cities The California Energy Commission (CEC) has a special loan program for cities to help fund energy efficiency improvements and efforts to reduce greenhouse gas emissions (GHG). Called the Energy Partnership Program (EPP), since 1979 178 California cities have used the program for financing. The CEC estimates that cities' annual electric savings to date have been 16.8 million kWh with GHG reductions reaching 6,900 tons. The EPP falls under the CEC's Public Programs which helps cities, counties, special districts and public hospitals. Through the program, cities can apply for up to $3 million for each project. However, if a project costs more than that amount, the city can apply for an additionalloan(s) as it completes various stages of the project. The loans have a guaranteed 3.95 percent fixed Interest rate with a 10 year maximum payback period. This payback period gives cities 15 years to repay the loans plus interest. Because the loan is repaid with the money cities save by implementing these new efficiencies, they don't have to come up with money from their budgets to pay for the improvements. How this works: when a city gets a bill from the contractor/vendor doing the project, the city pays it and then the CEC reimburses the city for the cost. The loan repayment amount is based on the savings the city will realize. For example, if a project is going to save a city $20,000 annually, the annual payback will be based on that amount. The first loan payment isn't due until six-to-18 months after the project is complete so that the city is experiencing the savings to repay the loan. Loan Program Period Originally the EPP funding was expected to sunset in 2011. CEC expects however, that the sunset date wiU be extended or eliminated. Cities are encouraged though to apply for the funding as soon as possible. Of the original $50 million in funding, $20 million EPP funding is stili available. Qualifying Projects Cities can apply for this CEC for a variety of projects including: . Street light improvements . Lighting retrofitting . HV AC upgrades . Building insulation . Automated energy management systems/controls . Energy generation including renewable energy projects and cogeneration . Streetlights/LED traffic signals . And more Examples of City Projects California cities are using this CEC funding for various improvements. In total, Califomia cities are saving $2.2 million annually. For example: . The City of Oakland received $1.63 million in loans to upgrade lighting and HVAC systems at several facilities. CEC estimates that the city will save approximately $233,000 annually in reduced energy costs. . The City of Fairfield received a $2 million loan to install energy efficient fluorescent lighting controls, chiller. cooling tower and a new cogeneration system. CEC estimates that the city will save approximately $280,000 annually in reduced energy costs. . The City of Westlake received a $190,000 loan to install energy efficient lighting emitting diode traffic signals at all intersections. CEC estimates that the city will save approximately $34,000 annually In reduced energy costs. 9