ENERGY EFFICIENCY AND CONSERVATION BLOCK GRANT PROGRAM
NOTICE 10-002
EFFECTIVE DATE: December 7, 2009
SUBJECT: REVOLVING LOAN FUNDS UNDER THE ENERGY EFFICIENCY
AND CONSERVATION BLOCK GRANT PROGRAM – FORMULA AND
COMPETITIVE
PURPOSE: Provides guidance to recipients for revolving loan funds under the Energy
Efficiency and Conservation Block Grant (EECBG) formula and competitive (“Retrofit
Ramp-up” and “General Innovation Fund”) programs.
SCOPE: The provisions of this guidance apply to recipients of EECBG program funds
named in the Notification of Grant Award from DOE under the EECBG program.
LEGAL AUTHORITY: Title V, Subtitle E of the Energy Independence and Security
Act, as amended, authorizes the Department of Energy (DOE) to administer the EECBG
program. All grant awards made under this program shall comply with applicable law
including the American Recovery and Reinvestment Act of 2009 and other procedures
applicable to this program.
BACKGROUND: A revolving loan fund (RLF) is self-replenishing pool of monies
created when the interest and/or principal payments from previous loans (or proceeds
from their sale) provide funding for additional lending. Revolving loan funds are an
eligible activity under the EECBG program under 42 U.S.C. 17154 (4) authorizing the
use of funds for the “establishment of financial incentive programs for energy efficiency
improvements.”
GUIDANCE: The following guidance applies to all recipients of EECBG program
funds except where noted.
The contents of this guidance are:
1. Limitation on the Use of Funds
2. Leveraged Funds
3. Obligation and Expenditure of Funds
4. Fund Structure
Energy Efficiency and Conservation Block Grant Program Notice 10-002
Page 2
Limitation on the Use of Funds
EECBG funds recipients must comply with statutory law regarding revolving loan funds.
42 U.S.C. 17155 (b)(3)(B) mandates a limitation on the use of funds for the establishment
(i.e., the capitalization) of revolving loan