Qualified Energy Conservation Bonds
Qualified Energy Conservation Bonds (QECBs) were authorized by Congress in 2008 for states, territories, large local governments and tribal governments to finance energy efficiency and renewable energy projects. A $3.2 billion federal allocation was divided among eligible jurisdictions according to population; and, the states were directed to sub allocate a portion of their allocation to municipalities with populations of 100,000 or more. Counties, municipalities and tribes may issue bonds up to their sub-allocation amount or waive any part of it back to the state. (Source: Energy Programs Coalition Paper, 10/2015)
Michigan Department of Treasury oversees the state QECB program and works with the Michigan Agency for Energy (MAE) to ensure that the state’s entire allocation is used. Periodic surveys of original municipal recipients are conducted to identify unused QECB allocations, and to communicate options for local sub-allocation and/or voluntarily waiver and return to the state. The state in turn redistributes any waived QECB allocations to eligible projects via a competitive application process. During 2016, the State of Michigan awarded $29.8 million in waived QECB allocations to public projects that will benefit 11 communities when completed.