HomeMy WebLinkAbout1410 - Low-Interest, Energy-Efficient Loans for Business Customers **Rescinded 8/6/19 by Resolution No. 2019-074 **CITY OF REDDING, CALIFORNIA
Council Policy
SU BJ ECT Resolution Policy Effective
Numl3er Numl3er Date Page
Low-interest, Energy-Efficient Loans for
Business Customers 98- 14 0 ! 4, I 0 ] 0 / 06 / 98 1
Back~round
On June 2, 1998, the City Council adopted a resolution instituting a Public Benefits Program for thc City
of R. edding Electric Utility. Public Benefits programs were mandated by AB 1890 (Electric Utility
Restructuring Legislation) and signed into law by the §ovemor of California in September of 1996. The
mandated expenditures under the program are a fixed percent ofa utility's revenues. For municipal
utilities like the City'of R.cdding, the charge is calculated by taking 2.85 percent of the current year's
revenues from 1998-2000 and 2.7 percent in 2001. The percentage equates to approximately $1,700,000
annually for R. cddinl~ls Public Benefit Program.
Consumer-owned utilities like R. edding can decide, within broad de£mcd categories, how these funds
should be spent for the benefit of the local community. At the June meeting, the City Council decided
that low-interest, energy-efficient loans for business customers are a justifiable and appropriate usc of
these Public Benefit monies. Thc City Council felt that businesses may be interested in rcaJi~ing energy-
efficiency savings but may be reluctant to commit their own funds for such improvements. Thc low-
interest loan program is designed to mitigate this reluctance. Businesses that are energy efficient have
thc advantage of higher productivity, lower costs, and arc also good showcases for energy-efficiency
technology.
Purpose
The goal of this policy is to define the parameters and procedures for implementation of the Low-interest
Loan program for business customers.
counci1~.99.98 I
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CITY OF REDDING, CALIFORNIA
Cc ncil Polic'
gUI.Il lt./il I 'vg,v,Jr .,.
Resolution Policy Effective
SU BJ ECT Number Numt)er Date Page
Low-Interest, Energy-Efficient Loans for
Business Customers 98-i40 1~, 10 10/06/98 2
Policy
Eligibility Criteria
To obtain a low-interest loan under this program, an applicant needs to fulfill the following criteria:
1. Must be a commercial business and City of Redding customer.
2. Loans are intended solely for energy-efficient equipment and retrofits.
3. Projects funded will fall within one of the following categories:
1. Lighting
2. Heating, Ventilation, and Air Conditioning (HVAC)
3. Industrial processes
4. Non-electro mechanical products that increase building energy efficiency (solar screens,
awnings, insulation, etc.)
Projects are expected to push the envelope of energy efficiency (exceed minimum mandated
energy-efficiency standards).
4. The Electric Department shall establish and keep current a list of minimum technical
specifications for lighting and HVAC that a proposed project will be required to meet for
energy-efficiency upgrades. Applications for industrial processes loans will be assessed on an
individual case-by-case basis.
5. Loans are intended for new installations or projects. Loans are not intended to finance projects
counci1~299.98 2
CITY OF REDDING, CALIFORNIA
Council Polic !
~UUI lull I vm· v~r
Re, solution Policy Effe~ive
SU BJ ECT Number Numl:)er Date Page
Low-Interest, Energy-Efficient Loans for
Business Customers 98- 140 14 10 10/06/98 3
that have already been completed.
6. Projects will require a pre- and post- inspection from City of Reddinl~ Electric Department staff.
7. The loan amount will apply only to equipment purchases and contract labor. Internal labor is not
eliEible for interest rate subsidization.
8. If projects require a conwactor, every effort should be made tO utilize a Shasta County conWactor.
...-..
9. To be eligible, a customer is required to have a good credit history as reported by standard credit
reporting a~encies and procedures.
10. Loans will be processed and provided by financial institution(s) in parmership with the City. The
institution will actually make the loan. The City is a passive participant in the loan and assumes
no liability for repayment of the loan.
11. The City of Reddin8 will subsidize interest rate payments to the financial institution(s) for the
purpose of this low-interest loan program.
12. The maximum amount of interest subsidized for any one customer will be $10,000:
13. The maximum loan period is ten years.
14. A citizens' committee made up ofF-lectric D.epartment statYand business representatives selected
by Council will review applications and prioritize projects to receive the low-interest loans.
15. Generating technologies or fuel switching do not qualify under this prol~ram.
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