State offers loans for energy efficiency projects

The Missouri Department of Economic Development announced Tuesday it is making available $7.5 million in low-interest loans to public schools, public or private colleges and universities, local governments, public water and wastewater treatment facilities, and public/private not-for-profit hospitals to complete energy-efficiency and renewable energy projects throughout Missouri.

The department's Division of Energy will accept loan applications through Oct. 31 for projects costing between $5,000 and $1.5 million. Loan applications will be evaluated on a competitive basis. If any funds are left over after applications have been reviewed and prioritized, consideration will be given to loans in excess of $1.5 million.

Amy Susan, director of marketing and communications for the Missouri Department of Economic Development, said in an email the division opens a new loan cycle every year.

The funds are made available through Missouri's Revolving Energy Loan Program, established in 1989 following the federal judgment against oil companies that exceeded price regulations in the 1970s. This was referred to as the Petroleum Violation Escrow (or PVE fund). A federal judge mandated that the funds be divided among the 50 states. Missouri chose to use the funds to establish a loan program.

Since 1989, the Division of Energy has awarded more than 538 loans, accounting for nearly $89 million in energy-efficiency projects being completed and more than $167 million in estimated cumulative energy savings. Applicants realize significant energy savings that translate into extra capital, which can be redirected to essential services, she wrote. The projects provide needed improvements to facilities, encourage the use of green technology, reduce greenhouse gases, and help create jobs and stimulate local economies.

The Sikeston School District upgraded its HVAC system for the entire school district through the loan program. Once the loan is paid off, they expect to see $148,806 in annual energy savings.

Ste. Genevieve County Memorial Hospital received a loan to upgrade its HVAC system, which will result in an annual energy savings of $27,443.

Loans are repaid from energy savings achieved. Loans to public schools and local governments do not count against debt limits or require a public vote or bond issuance. Projects with the quickest payback, based on cost versus anticipated energy cost savings, will receive priority. To apply, visit ded.mo.gov/division-of-energy/financial/energy-loan-program. For more information, call 855-522-2796.

rcampbell@semissourian.com

388-3639

Pertinent address:

Sikeston, Mo.

800 Ste Genevieve Dr, Ste. Genevieve, MO 63670