LoanSTAR Revolving Loan Program (Texas)

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Summary

Last modified on March 19, 2013.

Financial Incentive Program

Place Texas

Name LoanSTAR Revolving Loan Program
Incentive Type State Loan Program
Applicable Sector Local Government, Nonprofit, Schools, State Government, Public Schools, Public Universities, Public Tax District Supported Hospitals, Community-Based and House-of-Worship Nonprofit (Pilot Program)
Eligible Technologies Boilers, Building Insulation, Central Air conditioners, Chillers, Custom/Others pending approval, Energy Mgmt. Systems/Building Controls, Furnaces, Heat pumps, Heat recovery, Lighting, Lighting Controls/Sensors, Motor VFDs, Motors, Programmable Thermostats, Geothermal Heat Pumps, Passive Solar Space Heat, Photovoltaics, Solar Space Heat, Solar Water Heat, Wind
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Energy Efficiency Incentive Programs, Renewable Energy Incentive Programs
Amount Varies







Start Date 1989







Maximum Incentive $5 million




Program Budget $190 million annually




Terms Interest rates are set with each Request for Application. Loans are repaid through energy cost savings. Projects must have composite payback of 10 years or less.
Program Administrator Comptroller of Public Accounts State Energy Conservation Office (SECO)
Website http://www.seco.cpa.state.tx.us/ls/
Date added to DSIRE 2005-06-15
Last DSIRE Review 05/30/2012
Last Substantive Modification
to Summary by DSIRE
06/28/2011


References DSIRE[1]


Summary

Note: Postings for applications occur annually in April and October. Visit the Texas State Energy Conservation Office LoanSTAR web site for additional details.

Through the State Energy Conservation Office (SECO), the LoanSTAR Program offers low-interest loans to all public entities, including state, public school, colleges, university, and non-profit hospital facilities for Energy Cost Reduction Measures (ECRMs). Such measures include, but are not limited to: HVAC, lighting, and insulation. Funds can be used for retrofitting existing equipment or, in the case of new construction, to finance the difference between standard and high efficiency equipment. The evaluation of on-site renewable energy options (e.g., solar water heating, photovoltaic panels, small wind turbines) is encouraged in the analysis of potential projects.

The LoanSTAR Program funds “Design-Bid-Build, Design-Build projects or Energy Savings Performance Contracts. All projects are approved based on the Detailed Energy Assessment Report, which must be prepared according to LoanSTAR Technical Guidelines or the Performance Contracting Guidelines. SECO performs design specification review and on-site construction monitoring at the very minimum when the project is 100% complete. Repayment of the loans does not begin until after construction is 100% completed.

Between September 2010 and April 2012, LoanSTAR originated nine loans totaling over $28.9 million. Applications are available on the program website. The technical guidelines for the LoanSTAR program can be found on the program web site.

In June 2011, lawmakers passed H.B. 2077 to expand the LoanSTAR Program to include non-profit organizations and religious institutions in a pilot program. The Texas State Energy Office developed a pilot program targeting these organizations. The pilot program will still require a composite utility savings payback of 10 years or less. In April 2012, a Notice of Loan Fund Availability (NOLFA) and Request for Application (RFA) was announced. Borrower applications are due on June 28, 2012.


Incentive Contact

Contact Name Eddy Trevino
Department Comptroller of Public Accounts
Division State Energy Conservation Office (SECO)
Address 111 E. 17th Street
Address 2 LBJ State Office Building, Room #1118
Place Austin, Texas
Zip/Postal Code 78701
Phone (512) 463-1876
Phone 2 (512) 463-1931

Email Eddy.trevino@cpa.state.tx.us
Website http://www.seco.cpa.state.tx.us
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: Texas Government Code § 2305.032

Date Enacted 1993 (subsequently amended)


Authority 2: HB 2077
Date Effective 06/17/2011
Date Enacted 06/17/2011

















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"