This spring Bank of America announced a new program to fund energy retrofits of older buildings. The bank said it was launching a $55 million program to encourage energy efficiency improvements to older buildings. The new competitive program will provide low-cost loans and grants to Community Development Financial Institutions (CDFIs) specializing in financing energy efficiency improvements.
Under its new program, Bank of America will select up to 12 CDFIs with the most effective solutions for funding energy efficiency improvements to existing buildings.
“Residential and commercial buildings account for approximately 40 percent of all primary energy consumption in the United States. That’s why, if we really want to address climate change, we have to improve the energy efficiency of existing buildings, particularly older ones that tend to be the least efficient,” said Anne Finucane, Global Strategy and Marketing officer, Bank of America.
“Through this program, Bank of America will fund the community lenders that have developed creative and effective approaches to financing energy efficient retrofits, with the aim of bringing these innovative financing structures to scale for greatest impact in reducing U.S. carbon emissions,” she added.
The $55 million includes $50 million in low-cost, long-term loans to CDFIs with innovative energy efficient retrofit programs that finance the upfront investment costs for building owners to make energy efficient improvements. The energy cost savings realized over time will create cash flow to repay the loan. An additional $5 million in grants will also be awarded to help with staffing, training, reserves, and marketing needs associated with the implementation of the programs.
Once CDFIs have made loans to property owners, Bank of America will work with them to collect pre- and post-retrofit data in order to measure program outcomes, including impacts on energy and water usage and associated financial savings. EnergyScoreCards, a subsidiary of Bright Power, Inc., will be the third party consultant for data collection and analysis.
This article appears in the July/August issue of Sustainable Communities magazine. To receive 6 issues a year of Sustainable Communities magazine become a member today for only $49.
