The Nebraska Energy Quarterly features questions asked about 6% Dollar and Energy Saving Loans. Loan forms may be obtained from participating lenders or the Energy Office.
|6% Dollar and Energy Saving Loans|
Have there been changes in who can borrow money and the amount that can be borrowed?
Yes, several changes were made beginning in January 1997:
1. Dollar and Energy Saving Loans to public school districts are no longer available.
2. Firms that become Climate Wise partners are limited to loan maximums of $150,000. Climate Wise is a voluntary federal and state effort to increase energy efficiency and reduce waste by manufacturers. Climate Wise action plans must be filed with the Energy Office prior to loan approval.
3. A business with more than 25 employees and more than $2.5 million in annual sales could borrow up to $100,000 if the firm becomes a Rebuild Nebraska partner. Rebuild Nebraska is a voluntary effort to increase the use of energy efficient technologies in commercial buildings. The firm's Rebuild action plans must be filed with the Energy Office prior to loan approval.
4. Owners of apartment buildings or multiple family housing units with 25 or more employees or annual revenues of more than $2.5 million can now borrow up to $60,000 for making energy efficient improvements in each building. By becoming a Rebuild Nebraska partner and filling an action plan with the Energy Office before loan approval, these larger housing operations can now access low-interest energy loans.
5. Light density railroad rehabilitation was eliminated as a pre-qualified project that could be financed. These projects must now be supported by a technical audit in order to qualify for a loan.
What are waste reduction or waste minimization loans?
These loans are primarily for commercial businesses and manufacturers that need low-cost, long-term financing to make improvements in systems and processes to reduce the volume or toxicity of wastes. Examples of projects that could be financed include:
To calculate the amount of financing available divide the cost of the project by the total annual dollar savings in energy bills, disposal costs, permit fees, replacement materials purchased, and operations and maintenance costs. The simple payback for the loan cannot exceed ten years or the expected useful life of the equipment. Form 36 has additional information on these projects and can be obtained from the Energy Office.
Waste reduction loans are available to any person or entity eligible for loans. However, the same borrower maximums for other loans available from the Energy Office apply. ¶
Return to the Summer 1997 Newsletter