HomeMy WebLinkAbout1994-091-06/07/1994-CLIP COMMERCIAL LOAN INCENTIVE ELECTRICAL ENERGY ENERGY EFFICIENCY ZERO INTEREST LOANS RESOLUTION 94-91
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AUTHORIZING IMPLEMENTATION OF A
COMMERCIAL LOAN INCENTIVE PROGRAM (CLIP)
TO ENCOURAGE THE EFFICIENT USE OF ELECTRICAL ENERGY
WHEREAS, on October 19, 1993, the Council of the City of Fort Collins
passed Resolution 93-150 adopting the Integrated Resource Planning (IRP) Standard
pursuant to the Comprehensive National Energy Policy Act of 1992, and Resolution
93-151 authorizing the development and implementation of an Electric Utility
Integrated Resource Plan; and
WHEREAS, the City Council appropriated $350,000 in the 1994 Light and Power
Budget for the purpose of developing and promoting energy efficiency programs;
WHEREAS, subsequent to the enactment of said Resolutions and the
appropriation of said funds, the Electric Board and City staff have developed
guidelines for a Commercial Loan Incentive Program (CLIP) , attached hereto and
incorporated herein by this reference as Attachment "A, " containing the
parameters under which the CLIP programs will be implemented; and
WHEREAS, the City Council wishes to promote the efficient use of electrical
energy in the City of Fort Collins and has determined that the proposed program
would be beneficial to the ratepayers of the Light and Power Utility and would
promote a valid public purpose.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS
as follows:
Section 1. That the CLIP programs identified in Attachment "A" as CLIP I,
CLIP II, AND CLIP II & 112 are hereby authorized for immediate implementation up
to the amount of the annual appropriation made to the Light and Power fund by the
City Council for that purpose.
Section 2. That the program identified as CLIP I, for zero interest loans,
will only be available for improvements to City-owned property and only for the
purpose of pilot testing and refining the CLIP program.
Passed and adopted at a regular meeting of the of the C��, Fort
Collins held this 7th day of June, A.D. 1994. i
ATTEST: 'Mfyor
City Clerk
ATTACHMENT "A"
COMMERCIAL LOAN INCENTIVE PROGRAM GUIDELINES:
The following parameters apply to the Commercial Loan Incentive Program (CLIP I):
a) Zero interest loans will be made for improvements that will decrease
electrical consumption or increase electrical use efficiency (load
factor) .
b) Improvements must individually pass the Total Resource Cost (TRC) test.
c) The length of the loan shall be the lesser of; the payback period of the
improvement -OR- one-half the projected life of the improvement -OR- ten
years, all as determined by Light and Power Energy Services engineering.
d) The payback period of the loan shall be calculated on retail electrical
savings only.
e) Terms, zero interest on the principle for the projected pay back period.
There will be no loan processing or administrative fees during the pilot
testing phase of this program.
f) Lien requirements and payment methodologies vary based on ownership status
(see following) . Not applicable to city owned facilities.
g) Various administrative details to be adapted from ZILCH program
experience.
LOAN ELIGIBILITY REQUIREMENTS (Security considerations, not applicable to city
owned facilities) :
Loan applicants will meet one of the following criteria:
a) Owner Occupied: Must grant lien on real property upon which improvements
are made, loan payments will be made as part of Electric Bill or by
Automatic Fund Transfer (AFT) .
b) Non-Owner Occupied: Owner must grant lien on real property upon which
improvements are made, loan payments will be made as part of responsible
party's Electric Bill or by AFT.
c) Non-Owner Occupied (No Owner Participation) : Loan applicant must grant
lien on real property within the City of Fort Collins, loan payments will
be made as part of Electric Bill or by AFT.
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-- AND --
Existing businesses must have a satisfactory payment history of all bills
rendered by the City of Fort Collins. Negative loan decisions may be appealed
to the Fort Collins Electric Board, whose decision shall be final .
Note: Real property offered as collateral must have sufficient unencumbered
equity to fully secure the amount of the requested loan.
CLIP II (Commercial Leveraged Investment Plan) :
Program Concept:
To utilize the interest earned on a portion of Light and Power's reserves to
promote energy efficient improvements by "buying down" the interest rates on
commercially available financing. The net benefit to the customer is equivalent
to CLIP I .
Program Features: (Modified from CLIP I "Program Parameters")
a) Interest supplements will be made for improvements that will decrease
electrical consumption or increase electrical use efficiency (load factor) .
b) Improvements must individually pass the Total Resource Cost (TRC) test.
c) The length of the interest supplement shall be based on the lesser of; the
payback period of the improvement -OR- one-half the projected life of the
improvement -OR- ten years, all as determined by L & P Energy Services
engineering analysis.
d) The interest supplement payment shall be based on the payback period as
calculated on retail electrical savings only.
e) The interest supplement will be calculated based on the net present value of
the interest due over the term of the loan, where the interest rate is equal
to L & P's earning rate on invested reserves. There will be no L & P
processing or administrative fee to the applicant.
f) The minimum/maximum interest supplement will vary based on specific
improvement evaluation, L & P funding availability, and arrangements with the
private lender.
g) Lien requirements and payment methodologies vary based on the individual
requirements of the private lender.
h) Various administrative details to be adapted from ZILCH program experience.
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CLIP II & 1/2 (Commercial Leveraged Incentive Plan) :
Program Concept:
To utilize the interest earned on a portion of Light and Power's reserves to
promote energy efficient improvements by "rebating" an amount equal to the
interest rate buy down proposed in CLIP II when a Commercial/ Industrial customer
uses their own capital to purchase the qualified improvement.
Program Features:
Same qualifiers, limitations, and terms presented in CLIP II except the financial
support goes direct to the customer.
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