The Kansas Corporation Commission (KCC) has received notice of award from the Department of Energy (DOE) on KCC’s Energy Efficiency Revolving Loan Fund (EERLF) application in response to Section 40502 of the Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL).

The award, totaling $6,706,230, will provide loans and grants for energy efficiency audits, upgrades, and retrofits to increase energy efficiency and improve the comfort of buildings. No matching funds are required.

The KCC will support this Program through the establishment of a new revolving loan fund program working with local federal and state chartered banks, credit unions, and community development financial institutions certified by the U.S. Department of Treasury CDFI Fund. With the KCC participating in the loans, it will reduce the interest rate for eligible borrowers and reduce the risk for lenders.

Eligible lenders, borrowers, and awarded recipients of the subgrants will be required to report at least quarterly. Reports required by DOE and/or the KCC may include measurable improvements of energy efficiency or conservation, stakeholders engaged, value of contracts or agreements with minority owned businesses for supplies, services, or equipment, and accountability toward meeting project milestones. 

Eligible lenders and borrowers will be required to report and comply with the provisions of the Davis-Bacon Act utilizing LCPTracker. This will require weekly submitting of payroll during the duration of the eligible project. 

The KCC is seeking applications from eligible lenders for participation in the EERLF program, and applications from eligible entities for subawards for an Energy Audit subsidy that meet the criteria set out herein. 

Program Guidance

• Eligible lenders include federal and state chartered banks and credit unions and community development financial institutions certified by the U.S. Department of the Treasury CDFI Fund with offices located in Kansas.
• KCC will participate in 50% of each eligible loan, which shall be paid to Program lenders on closing date. KCC's share of loan will be interest free or 0% which will result in the borrower receiving an interest rate of 50% of the Program lender's normal/customary yield on its capital. 

Eligible Projects (for Loans): 

• · Upgrades or retrofits recommended in a qualifying Energy Audit completed for: an agricultural building/facility, a building/facility owned and occupied by a nonprofit organization, a building/facility owned and occupied by a small business (500 employees or less; must conduct the majority of its business in Kansas), a publicly- or privately-owned school building/facility (K-12, college or university), or a publicly- or privately-owned building/facility occupied by state or local government 
• The project’s cost must be life-cycle cost-effective, which shall be demonstrated on the energy audit report showing that the estimated lifetime energy savings from the project upgrades/retrofits will be at least equal to the total project cost. Program Sponsor shall reserve the right to approve an alternative method of demonstrating cost-effectiveness if deemed acceptable. 
• The project must address at least one of the following: the energy efficiency of the building/facility;  the physical comfort of the building/facility occupants; or the quality of the air in the building/facility. 
• NOTE: Based on the criteria above, geothermal heating systems are eligible, but solar/PV systems would need to be paired with energy storage or designed to provide operation during utility electricity grid outage to be eligible. 
• The project must lead to at least one of the following outcomes: reduce the energy intensity of the building/facility; or improve the control and management of energy usage of the building/facility to reduce demand during peak times.
•  Loans may include any portion of the cost of Energy Audit paid for by the Eligible Borrower (not subsidized by the KCC)

Additional Information 

• Frequently Asked Questions (FAQs)
• Kansas Corporation Commission website 

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