A new program to increase energy efficiency in municipal buildings in Pennsylvania

HARRISBURG, PA — The Pennsylvania Energy Development Authority (PEDA) recently unveiled a new funding program to help local governments increase energy efficiency in municipally-owned buildings. On June 3, 2024, the call for applications began under the “Municipal Opportunities for Modernization and Energy Efficiency” (MORE) program, under which eligible municipalities are eligible for grants and loans.

Jessica Shirley, Acting Secretary of the Department of Environmental Protection and Chair of the PEDA Board, emphasized the dual benefits of the program. “Reducing energy use both reduces local government utility bills and helps fight climate change, making this a win-win program,” Shirley said. She encouraged local governments to use this opportunity to finance energy projects that could lead to lower energy bills for communities.

Geoff Bristow, acting executive director of PEDA, shares these views. “PEDA is excited to add new tools to help Pennsylvanians reduce energy costs and improve energy efficiency,” Bristow said. He described the MORE program as a creative use of public funds that are intended to be a catalyst for local governments wanting to increase the energy efficiency of their buildings.

PEDA administers the program on behalf of the Pennsylvania Department of Environmental Protection (DEP) in partnership with the National Energy Improvement Fund (NEIF), an Allentown-based lender specializing in energy efficiency financing.

The MORE program combines funds from the Energy Efficiency and Environmental Protection Block Grant and the Energy Efficiency Revolving Loan Fund, both from the U.S. Department of Energy under the Infrastructure Investment and Jobs Act.

Approximately $1.8 million in grant funds will be available on a first-come, first-served basis through October 25, 2024. Eligible applicants may apply for grants up to $50,000. These grants can be used to identify and design energy efficiency projects and reduce loan interest rates.

The MORE Loan program offers financing for energy efficiency upgrades, building retrofits and on-site renewable energy generation combined with energy efficiency measures. Loans start at $5,000 and offer repayment terms of up to 15 years. Loan applications will remain open as long as funds are available.

To qualify for the loan, applicants must submit a Tier 2 commercial energy audit and a project design that can be funded by a MORE grant. This subsidy can also potentially reduce the loan interest rate to as low as 0%.

Eligible local governments include counties, cities, townships, townships, and municipalities that have not received an Energy Efficiency and Environmental Protection Block Grant from the U.S. Department of Energy.

Pennsylvania’s MORE Program: Pioneering Sustainability and Economic Efficiency

The launch of MORE is a significant step in Pennsylvania’s efforts to promote sustainability and economic efficiency. By supporting local governments to reduce energy use, the program aims to reduce utility costs and address broader environmental issues.

This initiative is consistent with national priorities set out in the Infrastructure Investment and Jobs Act, providing a framework for other countries to model. MOST’s emphasis on energy efficiency is especially timely as communities look for ways to mitigate the effects of climate change.

For Pennsylvania, the consequences are significant. Lower energy bills mean local governments can allocate more resources to essential services. Moreover, reduced energy consumption contributes to environmental goals, helping the country move towards a more sustainable future.

The MORE program aims to help Pennsylvania leverage its resources to build a cleaner, more efficient future. As local governments take advantage of these grants and loans, the state anticipates significant progress in both the economic and environmental spheres.

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