San José implemented an Energy Fund in 2005 to provide ongoing support for energy efficiency and renewable energy projects at municipal facilities. The initial funding came from a $200,000 incentive check from PG&E, provided for electricity savings generated through the City’s street lighting upgrades. The fund is replenished by depositing incentives from implemented energy projects and the expected energy cost savings for the first two years from those projects. After two years, the savings revert to the General Fund. The Energy Fund has been able to cover the cost of a new Energy Officer (EO) position who facilitates the implementation of municipal energy efficiency and renewable energy projects.
Revolving loan funds use a source of capital to make direct loans to borrowers for energy efficiency and renewable energy projects. As these loans are repaid, the proceeds flow back into the fund and become available for more loans. More information on revolving loan funds is available in a 2011 report from NREL.
More information is available on this site regarding similar funds created by Alameda County, El Cerrito, Arvin, Riverside County, Visalia, and Long Beach – just click on the revolving loan fund tag.