Energy Efficiency Lease Program for Public Facilities and Private "Nonprofit" Hospitals

Saving energy means saving money. Most public buildings in Mississippi were built during a time when little concern or regard was given to energy operating costs. Taking advantage of opportunities in energy efficiency improvements in your building can bring about cost control through improved building operations, maintenance, and energy efficient equipment. The Energy Division has a financing program that utilizes existing funding resources to implement identified energy conservation measures.

Section 31-7-14 of the Mississippi Code, allows universities, community colleges, public hospitals, private "nonprofit" hospitals, state agencies, local governing authorities and school districts to lease-purchase energy efficiency services and/or equipment for up to fifteen (15) years. The Energy Division can also select a third party financier to fund energy projects such as lighting, boilers, cooling systems, energy management systems, and windows. Through the Energy Efficiency Lease Program, public entities have access to pre-arranged, tax-exempt lease purchase financing. A public entity can reduce high origination fees, and streamline the otherwise lengthy funding process by participating in this program. Program participation also provides access to a team of technical, legal, and financial professionals.

The Energy Efficiency Lease Program can be used to fund the following types of contracts:

• Bid-Spec Procurement Contract
• Energy Services Contract
• Energy Performance Contract

General Program Steps:

1. Apply to the Energy Division for program assistance;
2. Identify the project and pass a resolution and intent to pursue an energy project utilizing this program to finance measures;
3. Contract with a design engineer (if necessary) to aid with design specification, solicitation for services, and project implementation;
4. Submit financial, technical, and legal information to MDA-ED;
5. After project approval, advertise for bids and select contractor;
6. Execute lease documents when the work has been accepted.

For more information on the Energy Efficiency Lease program, contact the Terrence Spears.

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