June 30, 2016
Non-profit partners
Craft3, Puget Sound Cooperative Credit Union, Washington State Housing Finance
Commission build on early successes with commercial and residential loan
programs serving communities throughout the state.
OLYMPIA, WA – The Washington State Department of Commerce has
committed $9.7 million from the state’s Clean Energy Fund to three non-profit lending
institutions: Craft3, Puget Sound Cooperative Credit Union (PSCCU), and the
Washington State Housing Finance Commission. The grants will continue and
expand successful revolving loan funds that provide accessible financing to
businesses and homeowners for energy efficiency and renewable energy technology
projects.
Craft3, a regional community development financial institution and
PSCCU are joined this year by new partner the Washington State Housing Finance
Commission in the second generation of Washington’s Clean Energy Revolving Loan
Fund. The grant awards announced today are targeted at improving access to
capital for Washingtonians. Craft3 has been awarded a $4.2 million grant, PSCCU
$4 million and the Housing Finance Commission $1.5 million. Each entity will
capitalize separate revolving loan funds with the awards.
“Washington state is committed to developing the energy technologies
needed by communities and industries in the 21st Century low-carbon
economy. Clean Energy Fund investments are making buildings more efficient,
manufacturing renewable energy systems and equipment, and modernizing our
electric grid for greater capacity and resiliency,” said Governor Jay Inslee.
Increasing energy efficiency in commercial and residential buildings
delivers by far the greatest return-on-investment to property owners and the
community at large by reducing energy use and carbon emissions and lowering
energy costs overall. Washington has long been among the top tier of U.S.
states for energy efficiency.
Home and business projects financed through the first round of clean
energy loans are saving an estimated 112 million Btu per year. That is equivalent to the electricity used by
4,200 residential customers, representing about $40 million of future energy
cost savings.
“By supporting public-private collaborations that foster innovation,
entrepreneurship and capital investment in our clean energy future, we are
working to strengthen communities all across the state,” said Commerce Director
Brian Bonlender.
“The Puget Sound Cooperative Credit Union is proud of
the work it has done to leverage state funds to help homeowners from Aberdeen
to Zillah make their homes more energy efficient,” said Shannon Ellis-Brock,
chief operating officer of the credit union. “And because we leverage those
state dollars, the work we fund returns $1.60 in taxes to the state for every
$1 of state funds we use. That’s a good deal for our borrowers, the environment
and our state’s economy!”
Ellis-Brock said the credit union met its clean energy lending goal
three years early.
“With capital from Washington state and other sources, Craft3
has already deployed more than $12 million through its Future Energy Loan Fund
to increase energy-efficiency, reduce greenhouse gases and create jobs,” said
Adam Zimmerman, acting president and CEO of Craft3. “This new award of $4.2
million will allow Craft3 to continue supporting innovative entrepreneurs
having trouble securing financing in Washington. A strong economy requires
access to capital for emerging business sectors like clean tech – so programs
like this really move the needle.”
One of those businesses is Craft3 client Allumia, a
lighting-as-a-service company based in Seattle that serves mid-sized commercial
buildings.
“Allumia was able to speed up implementation of our customers’ energy
efficiency projects by three times, thanks to Clean Energy Fund 1 resources deployed to us by our partner
Craft3. This created both the need and the opportunity to hire a new operations
team of three full-time project managers. As an early-stage company, securing
revolving construction financing was a complex and challenging hurdle to
overcome,” said Allumia CEO Aaron Block. “In the time since we received the
loan through Craft3, Allumia has funded and developed efficiency projects that
will save Washington residents and businesses 4.5 gigawatt hours of electricity
each year.”
At the Washington
State Housing Finance Commission, the $1.5 million grant will
augment the Commission’s successful Sustainable Energy Trust. The trust will be
earmarked for energy-efficiency retrofits of apartment buildings and
nonprofits, as well as community solar projects.
“Utilities are major hidden costs of housing that really affect
affordability, so it’s important for us to help multifamily properties save
energy and to support community solar projects that generate energy for whole
neighborhoods,” said Karen Miller, chair of the Housing Finance Commission.
“Also, by helping nonprofits save energy in their facilities, we enable them to
direct more money toward their missions.”
Since 2012, the Commission has financed over $19 million in energy
projects. The Sustainable Energy Trust, a revolving loan fund, offers up to $1
million at below-market interest rates for terms of up to 10 years.
The revolving loan fund started in 2013 with $14 million in state
Clean Energy Fund grants awarded to Craft3 and PSCCU. To date, it has provided
more than 2,100 residential and commercial loans totaling more than $44
million. For the 2015-17 period, the program will expand to include a broader
range of eligible projects, targeted efforts to better reach rural and
underserved communities, and a third lending partner to extend the program’s
financial impact. On average, every $1 granted from the Clean Energy Fund will
leverage at least $10 in non-state investment, according to the State Energy
Office at Commerce.
The entire Clean Energy Fund, which includes three other grant
programs in addition to the non-profit revolving loan funds, is expected to
leverage a $40 million state investment for 2015-17 with an estimated $200
million in private funds from industry partners.
The Clean Energy Fund was proposed by Governor Inslee and funded by
the Legislature as part of the last two Washington State biennial capital
budgets. The fund is designated for clean energy and energy efficiency
projects. Clean Energy Fund investments are strengthening communities all
across the state by helping to secure a low-carbon future for Washingtonians.
“Clean energy technologies developed, demonstrated and deployed in
Washington are positioned well to sell into global markets, creating new jobs
and business opportunities here,” Bonlender said.
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About Commerce
Commerce is the lead state agency charged with enhancing and promoting sustainable community and economic vitality in Washington. For more information, visit www.commerce.wa.gov. For information on locating or expanding a business in Washington, visit www.choosewashington.com.
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Contact: Penny Thomas, Commerce Press Office, (206) 256-6106
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