student involvement in revolving loans: a case study

Student Involvement in Revolving Loans: A Case Study

University of Illinois Student Sustainability Committee:Marika Nell, Katie Kinley, Marcus Ricci and Emily Cross

Student Sustainability Committee

• Two green fees passed in 2003 and 2007– $2 Clean Energy Fee– $12 Sustainable Campus

Environment Fee• Annual revenue ~$1.05

million• 10 student voting

members

Revolving Loan Funds• What is a revolving loan fund?– Initial lump sum of money is set aside– Projects are selected that will have a quantifiable payback– Returns from the projects are reinvested into the fund to

continue to invest in other projects• Over 50 other RLFs country-wide• Benefits of Revolving Loan Funds– Long-term financing solution– Capital investments possible

Starting the University of Illinois RLF

• Wind turbine project failed in 2011– Student Sustainability Committee had

allocated $640,000 toward the project• Students proposed creating a

revolving loan fund using the money committed by other entities (Office of the Chancellor and the Office of the President) for the turbine

Revolving Loan Fund Investors

Total: $2.25 million• Student Sustainability Committee: $500,000• Chancellor’s Office: $1,000,000• President’s Office: $750,000

• Chancellor committed to matching any additional SSC funds

Voting Board

• Board includes Student Body President, Student Trustee, and one at-large student member and Chair of the Student Sustainability Committee

• Non-students: Representatives from F&S, Provost, Research and Student Affairs

• Meets once a year

Funding Priorities

1. Payback period2. Reduction of coal3. Fund size impact4. Visibility5. Project coordination

(leverage of additional funds)

Projects Completed

• First Round:– $1.5 million: T12—T8 lighting

retrofits– $750,000: LED exit signage

and occupancy sensors (split 50/50 with the SSC)

T-8 lighting retrofits

Leveraging Funds for the RLF

1. Utility Savings2. Fully Loaded Rate Structure3. Grant Funds

Utility Savings

• Students advocated for having 100% of the utility savings return to the RLF

• The RLF is credited for the amount of savings from its contribution

Fully Loaded Rate Structure

• Fully Loaded Rate• Students were very involved in the

discussions with administrators to push for fully-loaded rate

Grants

Project grants written by Facilities and Services serve also increase RLF

SSC-funded solar decathlon house

Lessons Learned

Lessons Learned• In creating the Revolving Loan Fund:– Student empowerment important– Challenging administration– Got all stakeholders together: administration, Facilities

and Services, students, faculty– Made sure the Agreement was thought out and clear

• Structure:– Savings and rate structure were chosen to maximize

effectiveness of RLF

Lessons Learned• Looking Back:– Make clear the process of SSC funding projects through

the RLF– Formalize a procedure for deciding slate of projects– One meeting a year

Lessons LearnedOverall:• Revolving Loan Fund is a good tool to finance energy

conservation projects while helping the University• Use existing green fee pools to challenge

administration• Helps the SSC because we can focus on other

aspects of sustainability

Thank you!

http://ssc.union.illinois.edusustainability-committee@illinois.edu