State Facility Energy Efficiency Fund

B. 198 of 2008 established a revolving loan program to fund efficiency improvements in state facilities. The administrative rules also state that renewable energy projects are eligible for loans from this fund. The fund was capitalized with a transfer of $3,650,000 from the Stripper Well-Petroleum Violation Escrow Fund. The loan fund was later reduced and now holds $2.15 million. All repayments on loans will return to the fund along with any interest the fund earns. The State Building Board manages the loan program and reviews the applications prepared by state agencies. The State Building Board establishes criteria to determine loan eligibility and to prioritize energy efficiency measures. The Board also establishes a method of monitoring actual savings from energy efficiency measures implemented using loan money from the fund. Participating agencies which realize annual savings as a result of an efficiency measure funded by a loan cannot have those savings removed from their annual budgets by the legislature. The savings are intended to fund further efficiency projects.