The SAVES Programs in North and South Carolina
The SAVES Green Community Program Platform was deployed three times across the Carolinas: the North Carolina Agricultural Finance Authority Green Community Program, The North Carolina SAVES Green Community Program, and the South Carolina SAVES Green Community Program.
The North Carolina Agricultural Finance Authority Green Community Program offered tax-advantaged financing to qualified energy efficiency and renewable energy projects in North Carolina associated with the agricultural industry. Qualified conservation measures included energy efficiency (e.g., lighting, HVAC, controls, envelope, process improvement upgrades), renewable energy projects, alternative fueling vehicles and infrastructure, and water conservation measures. In total NCAFA GCP deployed $35.8MM in Qualified Energy Conservation Bond financing (QECBs). These bonds provide a federal subsidy to offset interest rates on private financing, making energy projects more affordable.
2 Ground Mounted Solar Projects: A leading NC-based and internationally diversified renewable energy generation developer used $20 million in tax-advantaged funding for 2 ground mounted utility scale photovoltaic projects. Construction helped replace traditional energy sources in the local economy saving 26,485 metric tons of greenhouse gas emissions.
2 Anerobic Digester Projects: An NC-based swine-to-energy project developer used $9.35MM and $6.5MM for the construction of a two swine-waste-to-energy projects. Construction included one anaerobic digester project aggregating multiple biogas streams at a common refinery, eliminating swine waste across 3 farms, and producing pipeline quality gas which is sold into a common carrier pipeline. Construction of a second anaerobic digester project helps collect biogas from the wastewater treatment infrastructure at the world’s largest swine packing plant and again produce pipeline quality gas for use in a common carrier pipeline.
South Carolina SAVES Green Community Program
The South Carolina SAVES™ Green Community Program (the "Program") provided low-interest financing for energy efficiency projects in public and institutional buildings across South Carolina. The Program again leveraged Qualified Energy Conservation Bonds (QECBs). South Carolina received an allocation of $46.5 million in QECBs. The QECB-funded initiatives include energy efficiency measures, water conservation, alternative transportation, and green community programs.
QECBs offer a direct pay subsidy from the Treasury to offset interest on financing qualified conservation purposes. This financial structure is beneficial for both public and private entities, allowing for funding of energy efficiency projects without the private activity limitations typically associated with such bonds. The South Carolina SAVES Program, helped to utilize these funds to support energy-efficient upgrades in government buildings, universities, hospitals, and non-profits, with a focus on lighting, HVAC systems, insulation, renewable energy generation, and alternative fuel conversions.
Economically, the South Carolina SAVES Program reduced operational costs for businesses through energy savings, helped them maintain competitiveness, and created jobs. The Program facilitated significant projects, including the conversion of vehicles to compressed natural gas (CNG) and energy performance contracts for schools and county buildings. These projects not only lower energy costs but also generate substantial greenhouse gas (GHG) emission reductions.
Environmentally, the Program supports South Carolina's goal of becoming more energy efficient and sustainable. By targeting a broad range of eligible measures, from basic energy efficiency upgrades to advanced renewable energy projects, the Program aims to reduce the state's overall energy consumption and environmental footprint.
CNG Truck Conversion: SC SAVES provided two tranches of subsidized funding to a Gaffney-based trucking company, for the purchase of compressed natural gas (“CNG”) trucks to replace its diesel fleet. In total, 14 trucks were purchased using Qualified Energy Conservation Bonds, which significantly reduced the interest rate on the financing, benefiting the company. With just 14 CNG trucks in operation, the company displaces over 200,000 gallons of diesel fuel annually with CNG fuel, resulting in significant fuel cost savings and reducing GHG emissions by approximately 900 metric tons annually. This is equivalent to removing 190 cars from the road each year.
Two County Buildings projects:
A public school system in South Carolina installed various energy conservation measures at 6 schools buildings around the county, including lighting upgrades, HVAC equipment replacements, energy management systems, water conservation, electrical transformer upgrades, PC power management systems, ventilation and controls retro-commissioning, and energy diagnostics and monitoring. The School System used $5.2M in Qualified Energy Conservation Bonds to receive a direct pay credit.
Similarly, another South Carolina County used Qualified Energy Conservation Bond financing available through South Carolina SAVES to upgrade 12 various-use municipal buildings. In total $5.2M was used to various energy conservation measures.
North Carolina SAVES Green Community Program
The North Carolina SAVES Green Community Program was established in 2017, to further the energy efficiency and conservation policies of the State of North Carolina. NC SAVES works with both public and private funding sources to arrange and provide subsidized financing for energy efficiency, renewable energy, distributed energy, alternative fuels, and water conservation projects. Projects can be developed by public and/or private sponsors in furtherance of their sustainability and climate adaptation goals and programs.
North Carolina SAVES provided $40MM in funding supporting a total project of $112MM project for a newly built Energy positive status Class A commercial building. The building will be a premier mixed-use development in the heart of Downtown Raleigh's Innovation District. The project will be the area's first energy positive building, producing an amount of energy that exceeds the on-site needs.
