Request for Applications for the State Energy Conservation Office LoanSTAR Revolving Loan Program

Background
The Texas Comptroller of Public Accounts administers the LoanSTAR (Saving Taxes and Resources) Revolving Loan Program through its State Energy Conservation Office (SECO).

The program finances energy-related cost-reduction retrofits for eligible public sector institutions, providing low interest rate loans to assist these institutions in financing their energy-related cost reduction efforts. The revolving loan mechanism allows successful applicants to repay loans through the stream of energy cost savings realized from the projects.

This Request for Applications (RFA #BE-G29-2025) allows applications to be submitted from issuance until August 31, 2025, with applications reviewed on a first-come, first-serve basis during the open enrollment period.

Work Details
The LoanSTAR Revolving Loan Program provides funding for energy-related cost-reduction retrofits. Eligible projects may include:
- Building and mechanical system commissioning and optimization;
- Energy management systems and equipment control automation;
- High-efficiency heating, ventilation, and air conditioning systems;
- High-efficiency lighting fixtures and lamps;
- Building shell improvements such as insulation and cool roofs;
- Load management projects;
- Energy recovery systems;
- Low-flow plumbing fixtures;
- Renewable energy efficiency projects including rooftop solar installations and geothermal heat pumps.

Projects must have a composite simple payback of fifteen years or less and comply with applicable building energy codes. Maximum individual loan amounts are $6 million for State Energy Program funds and $8 million for ARRA funds, with interest rates set at 2.5% for SEP funds and 1.5% for ARRA funds.

Period of Performance
Applications can be submitted from the time of issuance until August 31, 2025. The loan repayment schedule will begin within sixty days of SECO’s acceptance of project completion.

Place of Performance
The geographic location for performance is within the state of Texas, specifically targeting eligible public sector institutions such as state agencies, public colleges, local governments, public school districts, and other defined entities.