Qualified Energy Conservation Bonds

ARRA Provisions

$3.2 billion in national bond volume cap allocated by Treasury to states
Not less than 70% of allocation to States and local governments shall be public purpose bonds (limit of 30% on private activity bonds)
Private activity bonds must be used for capital expenditures
Benefit to borrower is 70% interest rate subsidy
Maturity and tax credit rates set daily by Treasury (See www.treasurydirect.gov)
Local governments may waive their allocation for further allocation within the State
Davis-Bacon wage rates apply

Qualified Energy Purpose

Capital expenditures incurred for purposes of:
- reducing energy consumption in public buildings by 20%;
- implementing green community programs (including loans, grants or other repayment mechanisms to implement such programs: will not be treated as private activity);
- rural development involving the production of electricity from renewable energy resources; or
- any qualified facility
Expenditures with respect to research facilities and research grants to support research in:
- development of cellulosic ethanol or other nonfossil fuels
- technologies for the capture and sequestration of carbon dioxide,
- increasing the efficiency of existing technologies for producing nonfossil fuels,
- automobile battery technologies and other technologies to reduce fossil fuel consumption in transportation,
- technologies to reduce energy use in buildings
Mass commuting facilities and related facilities that reduce the consumption of energy, including expenditures to reduce pollution from vehicles used for mass commuting
Demonstration projects designed to promote the commercialization of:
- green building technology,
- conversion of agricultural waste fir use in the production of fuel or otherwise,
- advanced battery manufacturing technologies
- technologies to reduce peak-use of electricity, and
- technologies for the capture and sequestration of carbon dioxide emitted from combusting fossil fuels in order to produce electricity
Public education campaigns to promote energy efficiency

Georgia Allocation: $100,484,000

Allocation Process

GSFIC approved allocations August 20, 2009
Georgia Qualified Energy Bond Allocations (GA QECB Allocations link below)

Waiver and Re-allocation Process

GSFIC approved guidelines August 20, 2009 (QECB Waiver and Allocation Process link)
Local governments receiving an allocation may waive their allocation at any time (Sample QECB Waiver Resolution link)
Applications due to GEFA March 2, 2011
Overview of QECBs and Georgia’s process (QECB Overview link)
Local governments issuing QECBs are required to notify GEFA (QECB Confirmation of Issuance link)

Contacts
GEFA: Andrew Ladd aladd@gefa.ga.gov
GSFIC: Susan Ridley susan.ridley@gsfic.ga.gov
www.gefa.ga.gov