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Allocate Savings (Ongoing)

Project History

  • 4/14/2011

    At some point in the past, perhaps FY 09, Terry Ruprecht and the Provost’s office worked out an agreement to provide a funding source for “quick payback projects.” This meant that the payback was expected to be quick, typically in the 1-3 year ran

Description

The 2015 iCAP, chapter 9, objective 2 is, "By the end of FY16, increase the size of the Revolving Loan Fund (RLF) to a level commensurate with our aspirational peers, expand the reach of the Fund, and increase the use of Energy Performance Contracting (EPC)." We suggest that the RLF be increased to at least $10 million; this would put us in the company of aspirational peers such as Caltech ($8M), Harvard ($12M), and UCLA ($15M)

Many sustainability projects can generate long-term energy savings, not only offering environmental benefits, but also representing sound financial investments. By allocating the savings from these conservation projects to other new conservation projects with future financial payback, the campus can build a benign cycle on increasing funding. 

Background

This objective primarily aims to increase the funding in Revolving Loan Funds (RLFs). There are currently two RLFs:1) The campus RLF is managed by Facilities and Services Utilities and Energy Services. 2) The Illini Union Revolving Pool is managed by the Illini Union. By summing $3.9 million in campus RLF and $1 million in the Union RLF we get a total of $4.9 million, leaving much room for improvement compared to our aspirational peers.  The campus RLF can grow through three ways: 1) a direct allocation, such as from the Chancellor, President, or SSC, 2) grant funding, such as from the Department of Commerce and Economic Opportunity or Illinois Clean Energy Community Foundation, or 3) 1% interest rate of the payback of conservation projects. For allocating campus RLF, the project proposals are reviewed and picked by the RLF selection committee, and the selection criteria can be found in the Related Files including RLF guidelines on RLF page. If your office wants to start an RLF, you can consider either of the above systems as a model.   Energy Performance Contracting (EPC) is handled through F&S, and more information can be seen on that project page.  F&S Utilities & Energy Services, in collaboration with the provost office and capital programs, is investigating potential solutions for funding future EPC projects.  

 

Themes

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