Spring 2007, Volume 10 Newsletter:
Green Campus Loan Funds for New Construction
The Green Campus Loan Fund (GCLF), a $12 million revolving loan fund managed by the HGCI, known for its success as a provider of capital for high performance campus design, operations, maintenance and occupant behavior projects is launching a new fund for New Construction projects in FY08. The mission of both the old and new Green Campus Loan Fund is to facilitate organizational decision-making that seriously considers the environmental sustainability of campus life by funding innovative infrastructure and behavioral education projects aimed at reducing Harvard’s environmental impacts. The GCLF for New Construction covers the cost difference between a project in compliance with ASHRAE standard 90.1 2004 (Energy Standard for Buildings) and the environmentally preferable project. To qualify for the new loan, the project must have an internal rate of return (IRR) of 9% or greater (equal to a payback of about 10 years, adjusted for energy rate increases).
The current GCLF, which will remain in operation, is specifically designed for existing buildings, funds the full capital cost and is available to projects with payback periods of less than 5 years. Projects can be bundled together to allow for shorter payback projects to offset longer payback projects.
A special category of loans has also been established for onsite renewable energy installations in either existing or new constructions projects. Loans are provided regardless of the actual payback as long as the loan is fully repaid within 5 years. On Tuesday, April 3, 2007 the Green Campus Loan Fund Advisory Group approved the first Ground Source Heat Pump application under our renewable energy loans for the Byerly Hall Renovation at Radcliffe Institute.
To assist the HGCI in covering the mounting costs associated with managing this $12 million fund, an annual administrative fee will be introduced in FY08. As of March 2007, GCLF projects are projected to save the University $3,912,099 per year with an average project ROI of 35%. Along with the fund’s financial achievements, GCLF projects have also created significant environmental impact reductions for the University, including the following reductions:
GHG: 27,414 metric tons of eCO2
Water: 15,269,877 gallons
Waste: 200,000 lbs
The HGCI team leaders for the GCLF are Leith Sharp, Michael Crowley and Christine Benoit.