Grant Procurement and Alternative Financing
# Grant Procurement and Alternative Financing
Capital-Free Funding for Public Facilities
The biggest obstacle to facility modernization is funding. Many Texas school districts, cities, and counties do not have the capital budget to replace aging HVAC units, upgrade lighting, or install smart building controls.
E3’s dedicated funding team specializes in identifying, applying for, and securing alternative financing and non-taxpayer funding. We help our clients combine state grants, low-interest public loans, and guaranteed energy savings to fund major capital projects with zero upfront taxpayer capital.
Key Funding Programs We Manage
### 1. State Energy Conservation Office (SECO) Grants SECO (a division of the Texas Comptroller’s office) regularly offers competitive grants for energy efficiency audits and retrofits in public buildings. E3’s in-house engineering team provides the professional, stamped engineering drawings required to successfully apply for and secure these competitive grants.
### 2. Texas LoanSTAR Revolving Loan Program The LoanSTAR (State Energy Conservation Office Low-Income Support and Alternative Resources) program offers low-interest loans (typically 1% to 2% interest) to public entities to fund energy-efficiency retrofits. The loan is paid back entirely using the utility savings generated by the project. E3 handles the entire application process, engineering energy models, and required Measurement and Verification (MandV) reporting.
### 3. Energy Savings Performance Contracts (ESPC) Governed by Texas Education Code Chapter 44 (for school districts) and Local Government Code Chapter 302 (for cities and counties), an ESPC allows you to bundle lighting, HVAC, and water upgrades into a single project. The capital cost is financed through a tax-exempt lease-purchase agreement, and E3 contractually guarantees that your annual utility savings will exceed the annual financing payments, making the project 100% budget-neutral.
### 4. Qualified Zone Academy Bonds (QZAB) For eligible K-12 school districts with low-income student populations, QZABs provide interest-free or low-interest financing for facility renovations and energy retrofits. E3 assists in verifying district eligibility and coordinating with bond counsels to secure QZAB funding.
### 5. Utility Rebates and Federal Incentives We coordinate with your local utility company (such as Oncor, CenterPoint Energy, AEP Texas, or TNMP) to secure the maximum commercial rebates. We also help public entities leverage federal energy tax deductions (such as Section 179D of the tax code), passing the value directly back to you to reduce net project costs.
Turnkey Funding Sourcing
E3 manages the entire funding lifecycle: 1. Funding Audits: Analyzing your eligibility for local, state, and federal grants. 2. Application Preparation: Engineering the energy models, calculating paybacks, and compiling all application documentation. 3. Project Execution: Designing, procuring, and installing the upgrades under a fixed-cost agreement. 4. Long-Term Reporting: Handling all post-project energy tracking and reporting required by funding agencies.