Vermont

The Clean Energy Development Fund (CEDF) Loan Program seeks to promote the development of clean electric-energy technologies by providing funding for purchasing land and buildings (when specific to qualifying projects), purchasing and installing machinery and equipment, and working capital. Low-interest loans with a fixed rate of 2% are available to individuals, companies, nonprofits and municipalities. Eligible clean electric-energy technologies generally include solar, wind, biomass, fuel cells and combined heat and power (CHP). Applicants are encouraged to review the CEDF Strategic Plan (2007) for more information regarding eligible technologies.  
 
The minimum loan amount is $50,000; the maximum amount is $500,000. Loans may not be used for more than 90% of the cost of a project. All financing must be used for activities or assets directly related to the project. Feasibility studies are not eligible expenses.  
 
The term for real estate loans is 10 years, amortized on a 15-year basis. The maximum term for machinery and equipment loans is seven years. The term for working capital loans is three years (some flexibility may apply). Borrowers must pay an application fee of 1% on the loan amount, capped at $1,500, after the loan is approved. And, borrowers must pay closing costs. Applications are due quarterly (July 1, October 1, January 1, and April 1). The CEDF Board reviews applications and makes loan determinations typically within 60 days.  
 
Projects will be evaluated on credit worthiness (according to standard underwriting practices), financial leverage, likeliness to increase renewable energy generating or CHP capacity to Vermont ratepayers, economic impact, market impact, public benefit, strength of management team, reductions in greenhouse gas emissions, conformity with goals of the American Recovery and Reinvestment Act (ARRA), compliance with building energy codes (additional consideration given to high performing buildings or above code energy efficient buildings), and financial need.  
 
See the program web site or contact the Vermont Department of Public Service (DPS) for an application form. Applicants are encouraged to discuss their proposed project with the fund manager before submitting a final application to the board. It should be noted that applications funded by ARRA will be subject to certain federal requirements, including the National Environmental Policy Act (NEPA), Buy American provisions and Davis-Bacon wage requirements. The application contains additional information.  
 
The CEDF was established in 2005 and is funded through proceeds due under the terms of two memoranda of understanding between the Department of Public Service and Entergy, an investor-owned electric utility operating in Vermont. The CEDF will receive payments between $4 million to $7 million annually from Entergy through March 2012.