State of Michigan awards Qualified Energy Conservation Bond allocations to five projects
July 5, 2016
Contact: Judy Palnau, 517-284-8300
Agency: Michigan Agency for Energy
LANSING, Mich. – Five public agencies will benefit from reduced interest rates and substantial energy savings as they finance capital improvements at their facilities. Today, the State of Michigan awarded $25 million in Qualified Energy Conservation Bond (QECB) allocations through an open application process coordinated by the Michigan Agency for Energy (MAE), in cooperation with Michigan Department of Treasury.
The state’s QECB allocation awards were matched by approximately $8.9 million in local contributions. The estimated annual energy cost savings for these projects are $695,983 for the life of the improvements.
- City of Battle Creek
- $5,365,636 - QECB Allocation
- $9 million - Total Project Cost
- Upgrade Wastewater Treatment Facility with high efficiency aeration blowers and advanced control systems, which is projected to reduce total energy use by 22 percent.
- City of Holland
- $11 million – QECB Allocation
- $16 million – Total Project Cost
- Renovate Civic Center to model a new District Heat Utility for select downtown area; use waste heat from a natural gas-powered generating plant to heat this and up to 32 more buildings; install LED lighting, Building Automation System controls and green infrastructure for storm water management. It is projected to reduce building energy use by 37 percent.
- Delhi Charter Township
- $4,712,493 – QECB Allocation
- $4,767,493 – Total Project Cost
- Upgrade electrical and mechanical systems; install energy conservation measures in public buildings, streetlights and wastewater treatment plant; and, reduce energy use by at least 20 percent with a guaranteed energy performance contract.
- Marysville Public Schools District
- $2,075,000 – QECB Allocation
- $2,169,500 – Total Project Cost
- Conduct investment grade energy audit; upgrade electrical and mechanical systems; and install energy conversation measure in six district buildings using a guaranteed energy performance contract. It is projected to reduce energy use by 21 percent.
- South Huron Valley Utility Authority
- $1,872,000 – QECB Allocation
- $3,700,000 – Total Project Cost
- Upgrade Wastewater Treatment Facility with high efficiency aeration blowers, bubble diffuser system, advanced controls; also, rehabilitate two back-up bio-decks with the best of the replaced equipment, which is projected to reduce total energy use by 58 percent.
“Reducing energy waste has played an important part in reaching Michigan’s energy goals,” said Valerie Brader, executive director of MAE. “These projects will build on the state’s successes well into the future.”
QECBs were authorized by the federal government for states, territories, large local governments and tribal governments to finance energy efficiency and renewable energy projects. The benefit for the bond issuers is the substantial interest rate subsidy throughout the term of the financing, reducing the overall cost of making capital improvements.
For more information on QECBs, visit the MAE website.
For more information about MAE, please visit www.michigan.gov/energy.