Local Law Requirements for Residential Clean Energy Programs
For residential clean energy programs, many municipalities prohibit sole-source contracting and require strict adherence to local laws in selecting the financial institution partner.
Grantees and those assisting them should draft request for proposal (RFP) procedures using existing city and county RFPs as a template, covering “boilerplate” procedural topics including the RFP schedule, RFP questions and answers, evaluation and selection, and negotiating procedures. See a U.S. Department of Energy (DOE) RFP template and a sample RFP from one city in Missouri.
Once an financial institution partner is selected, grantee municipalities will negotiate and execute an loan loss reserve fund (LRF) Agreement with the financial institution that will lay out the terms of lending for the energy efficiency program. See a DOE LRF Agreement template and a sample LRF Agreement from Michigan.
The Program Lead should also execute additional agreements covering the roles and responsibilities of the energy efficiency program partners. Such agreements lay out responsibilities for monitoring and reporting on loans, energy savings, and jobs and responsibilities for other important functions, such as marketing and outreach. See the DOE Loan Program Agreement template.