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NOW ACCEPTING APPLICATIONS

Apply for the EE RLF Loan here

 

The New Jersey Board of Public Utilities (“NJ BPU”) Division of State Energy Services is excited to announce the launch of a new Energy Efficiency Revolving Loan Fund (“EE RLF”) Program made possible by the Bipartisan Infrastructure Law (“BIL”) and the U.S. Department of Energy (“US DOE”). Approved by the BPU on January 15, 2025, this program aims to support and accelerate energy efficiency projects at state facilities.

 

The EE RLF will introduce a specialized Loan to help state agencies finance energy efficiency improvements, building electrification and distributed renewable generation projects. State agencies that have done energy audits do not always have capital available to implement the recommendations from audits. The EE RLF is an opportunity for state agencies to borrow money to implement energy conservation measures and pay back over time with the savings from those measures.

 

The EE RLF offers bridge loans for federal Direct Pay tax credits. Federal tax credits have traditionally been nonrefundable, meaning that if their tax credits exceed the amount owed in taxes, they would not get refunded. This poses a problem for state agencies because they do not pay taxes and cannot receive these incentives. Under the Inflation Reduction Act (“IRA”), state governments are now eligible for direct payments for certain clean energy projects instead of tax credits. However, the delay in receiving these payments can hinder project implementation.

 

To minimize this gap, EE RLF Bridge Loans will offer low-interest, short-term financing up to $2,000,000. Loans are available for up to 12 months post-construction.

Key features of the program include:
  • Loan Amounts: Ranging from $300,000 to $2,000,000
  • Term: Up to 15 years
  • Interest Rate: Below market, low interest rate 1.5%
Eligibility Requirements:
  • Eligible Entities: Executive branch agencies and authorities, commissions, or boards that fall under the executive branch which own and operate state facilities.
  • Project Costs: Must be consistent with U.S. Treasury requirements.
  • Energy Audit: Projects must be paired with a standardized energy audit as per U.S. Department of Energy guidelines.
  • Application Proof: Evidence of Direct Pay application submission to the U.S. Treasury if applicable. Must provide copy of energy audit that meets US DOE standards.

 

To learn more about the Energy Efficiency Revolving Loan Fund Capitalization Grant Program, please visit: Energy Efficiency Revolving Loan Fund Capitalization Grant Program | Department of Energy.

 

Additional Resources

EE RLF One-Pager
EE RLF FAQ
EE RLF Audit Requirements

EE RLF Application Instructions