Mayor Greg Fischer announced today that the Office of Sustainability has implemented its first Energy Project Assessment District (EPAD) project with partner Citizens Union Bank (CUB).
EPAD is a tool that encourages property owners install energy efficiency mprovements, renewable energy and water conservation measures at commercial and multi-family properties, by allowing them to acquire private funding that can be paid off through a voluntary assessment administered by the Jefferson County Sheriff in the same manner as a property tax bill. The program allows property owners to extend the term of the loan to 30 years and finance up to 100 percent of an energy project’s cost.
The city’s first EPAD project was made possible through a loan from CUB and allowed property owner Tony Holland to construct a 15-unit apartment at 110 Weisser Avenue with high-efficiency heating and cooling controls, an exterior insulation system and cool roofing materials.
“I applaud the Office of Sustainability, CUB and Tony Holland for forming a partnership to make our city more sustainable. This project is a showcase of how property owners and developers can make a great financial choice that will have great environmental benefits for our community,” Mayor Fischer said. “Our city needs more lending institutions and property owners to partner with us on projects like this one.”
“We are thrilled to close on the first project of our EPAD program. EPAD will help promote energy efficiency and will ultimately contribute to reducing greenhouse gas emissions and improving the quality of life in Louisville,” said Louisville Metro Office of Sustainability Director Maria Koetter. “We applaud Tony Holland and CUB for paving the way.”
“At CUB we care a great deal about conservation efforts that benefit the communities we serve”, said David Bowling, CUB’s CEO. “We are proud to be able to partner with the City and property owners like Tony Holland on the EPAD Program. They were great to work with and hopefully this will be just the beginning of many similar projects in the future.”
The EPAD program offers unique benefits to the property owner, including low interest, and fixed rates that are affixed to the property title and not the property owner. That separation means the property owner is not tying up other credit lines for essential operating expenses.
Energy efficient improvements and renewable energy projects—like solar panels, green roofs and LED lighting—aid in Louisville Metro’s efforts alleviate urban heat and decrease the amount of pollutants impacting local air quality.
EPAD financing is available to office, retail, industrial, non-profits and multi-family residential units consisting of five or more dwelling units. Commercial properties include for-profit businesses and non-governmental, non-residential, tax-exempt properties such as privately operated community centers and hospitals.
An eligible energy-efficient, water-efficient or renewable energy improvement project must have a minimum cost of $20,000, a useful life of at least five years and be permanently affixed to the property title. Additionally, the property owner must demonstrate that the project reduces energy or water usage or generate renewable power for the property and that the improvements will remain with property upon sale or transfer of title.
The Kentucky General Assembly enacted legislation in 2015 authorizing local governments to establish EPADs and an ordinance approved by Metro Council in 2016 designated the entirety of Louisville Metro as an EPAD.