2. 2
The Tennessee Department of Environment and Conservation through its Office of Energy
Programs is proud to launch a new Energy Education Initiative which will be delivered in
conjunction with Pathway Lending and other statewide energy resource providers. This
Initiative provides in depth training along with educational tools to support the implementation
of energy efficiency, renewable energy and energy management projects.
Funding for the Energy Education Initiative is provided by the Department of Energy through
the American Reinvestment and Recovery Act. As a result, the program will be able to
provide “tuition paid” workshops and conferences at many locations throughout the state over
the next several months. Some will focus on very specific topics such as multi-family housing
or industrial energy efficiency while others will have a broader approach to Sustainability. At
each of these events, the presentations and materials will be recorded and made available
for all Tennessee companies to access through an Online Resource Center to launch later in
the year.
Acknowledgment: This project is funded under an agreement with the State of Tennessee.
This material is based upon work supported by the Department of Energy under Award Number DE-EE0000160. CFDA 81.041.

3. Date Event City
2-May Tennessee Chamber of Commerce and Industry Manufacturing Excellence Conference Nashville
2-May & 3-May Baker Center Electric Vehicle Symposium Knoxville
8-May Chattanooga Manufacturers Association Energy Efficiency Conference Chattanooga
17-May TREEDC Bethel University McKenzie
6-Jun TVA Preferred Partners Network Webinar Online
12-Jun TREEDC Columbia State College Franklin
13-Jun Business & Industry Energy Workshop Clarksville
26-Jun & 27-Jun Memphis and Shelby County Sustainability Summit Memphis
9-Jul TREEDC Austin Peay State University Clarksville
17-Jul & 18-Jul Industrial Energy Efficiency Summit Nashville
25-Jul National Association of Women Business Owners - Nashville Chapter - Focus on Energy Efficiency Nashville
26-Jul TREEDC Tennessee Tech University Cookeville
21-Aug & 22-Aug Oak Ridge National Laboratory Southeast Sustainability Summit Knoxville
July/Aug Business & Industry Energy Workshop East TN
July/Aug Business & Industry Energy Workshop West TN
22-Sep thru 24-Sep American Council National Conference on Energy Efficiency Nashville
3
Calendar of Events

5. TNEnergy.org

6. Qualified Energy
Conservation Bonds
Katie Southworth
Program Manager
TDEC Office of Energy Programs

7. 7
QECB Background
• Low interest bonds for qualified energy projects
• Initially created by Congress in 2008; greatly expanded by
ARRA in 2009
• Total national allocation is $3.2 billion; Tennessee allocation
is $64,676,000
• 1%-5% effective interest rate for issuer
• Issuer gets 3%-4% subsidy from Treasury
• 15 to 22-year term
• Qualified projects are broadly defined

8. 8
Large Local Government Allocations
• Large Local Governments in Tennessee receive a share of
the $64.7 million based on their percentage of the
Tennessee population
- Cities with populations of 100,000 or more
- Counties with populations of 100,000 or more, not including
any cities within the county that are large local governments
• 15 entities in Tennessee received allocations.

9. 9
QECB Qualified Projects:
• Capital expenditures incurred for purposes of:
- Reducing energy consumption in publicly-owned buildings by at
least 20 percent
- Implementing green community programs (including the use of
loans, grants, or other repayment mechanisms to implement such
programs)
- Rural development involving the production of electricity from
renewable energy resources
- Certain research facilities and research grants
- Mass commuting facilities
- Demonstration projects
In Tennessee, bonds can only be issued if physical asset
development or improvement is critical component of project

10. 10
Quick Aside: Energy Savings Performance
Contracts
• Also called Guaranteed Energy Savings Contracts with
energy service companies (ESCOs)
• Contract for the evaluation, recommendation, or
implementation of energy conservation measures
• Payments made over time
• Energy savings guaranteed to exceed costs

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Allegheny County, PA: Municipal Building
Efficiency Improvements
• $9.3 million QECB for energy efficiency improvements to
County Jail and Regional Center, annual positive cash flow
of $1.56 million
• Upgrades included: Lighting & HVAC upgrades, new waste
disposal system and domestic water pumping upgrades for
the jail, and water upgrades & new high efficiency boilers for
the regional center
Initial guaranteed energy savings agreement project (both
buildings)
$14,186,509
EECBG (Energy Efficiency and Conservation Block Grant) $4,848,602
QECB $9,337,907
1st year annual guaranteed energy savings (Starting 2012) $2,107,866
1st year payment (Starting 2012) ($523,994)
Measurement and verification service payment ($24,219)
1st year annual positive cash flow $1,559,653

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Yolo County, CA: 1 MW solar photovoltaic (PV) to
supply power to both a jail and juvenile center
– Finance was a mix of new CREBs, QECBs, a California
Energy Commission (CEC) loan, a Pacific Gas and Electric
(PG&E) rebate, and a Tax Exempt Lease Program (TELP)
loan
– 3.9 percent interest rate with a 15 year tenor for QECBs
– Yolo is anticipating that it will have a net positive cash flow
of $100,000 per year starting in year 1 and $600,000 per
year starting in year 16 in utility expenditures

13. 13
• OEP will evaluate requests for QECB
allocations through a competitive
process in October.
• Local governments and state
universities will be eligible to apply.

14. Thank You
14
OEP Energy Hotline: 615-741-2994
TDEC OEP Website
http://www.tn.gov/environment/energy/qualified-energy-conservation-bonds.shtml
Katie Southworth
Program Manager
TDEC Office of Energy Programs

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