The Biden-Harris Administration has announced $45 million in awards to five states and the District of Columbia to establish Energy Efficiency Revolving Loan Funds. This funding, part of President Biden’s Investing in America agenda, is sourced from the Energy Efficiency Revolving Loan Fund Capitalization Grant (RLF) Program under the Bipartisan Infrastructure Law. The program aims to provide loans and grants for energy efficiency audits, upgrades, and retrofits.
U.S. Secretary of Energy Jennifer M. Granholm emphasized the significance of this initiative: "One of the biggest hurdles many states face in bringing clean energy to homeowners and small businesses is access to capital funds. The Revolving Loan Fund Program expands access to low-cost financing for energy efficiency improvements, allowing states to build an evergreen source of funds to offer their residents and businesses for clean energy projects."
A study by Lawrence Berkeley National Laboratory, the State and Local Energy Efficiency Action Network, and DOE supports this approach. It indicates that each federal dollar invested in a revolving loan fund can attract up to $20 in private capital. This leveraging effect is expected to stimulate local economies while addressing climate change.
The investments also align with the President’s Justice40 Initiative, which aims for 40% of certain federal investment benefits to flow to disadvantaged communities.
The specific allocations are as follows:
- **District of Columbia**: A new revolving loan fund will support affordable housing owners and developers in achieving higher energy efficiency standards.
- **Illinois**: A revolving loan fund will focus on commercial building owners, emphasizing energy savings and benefiting local communities.
- **Indiana**: Financing opportunities will be provided through co-lending with private lenders for residential and commercial sectors.
- **Pennsylvania**: Municipalities, particularly disadvantaged communities, will receive support for energy efficiency upgrades and on-site generation projects.
- **Tennessee**: Local government buildings will benefit from efficient, clean, affordable, and resilient building goals; grants will also be available for small businesses and homeowners.
- **Vermont**: Public buildings will see support for energy resilience and conservation retrofits.
This initial round is part of a broader plan where the RLF Program will eventually distribute $242 million across various awardees. Additional awards are expected later this year.
For more information about the Energy Efficiency Revolving Loan Fund Capitalization Grant Program, visit the Department of Energy's website.
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