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40.12 – Sustainability Revolving Loan Fund

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  5. 40.12 – Sustainability Revolving Loan Fund

Owner:

  • Position: Director, Sustainability
  • Email: uofi-sustainability@uidaho.edu

Last updated: March 31, 2025

A. Purpose. The University of Idaho Sustainability Revolving Loan Fund (SRLF) funds innovative projects that reduce environmental impacts and provide economic benefits. The SRLF may fund energy conservation, renewable energy, waste and recycling and other sustainability projects that demonstrate sustainable design and that save money. Savings resulting from a SRLF funded project shall be used to repay the loan from the SRLF. The SRLF shall serve as a source of money from which loans may be made for projects; as repayments are made, the money is made available for additional projects.

The SRLF has several goals:

  1. To foster sustainable design and environmentally sound technologies and practices at UI-owned facilities.
  2. To reduce risk and budget shortfalls associated with rapidly rising energy, waste and other costs.
  3. To educate and inspire UI students, staff and faculty about the cost-effectiveness of sustainable practices.
  4. To create opportunities to use our campus as a living laboratory for students studying sustainability issues.
  5. To serve as a role model to other state and national organizations in environmental and fiscal responsibility.
  6. To maintain itself financially into the foreseeable future without compromising—and supporting when possible—student, community and institutional initiatives for a sustainable world.

B. Scope.Any university employee may apply for funding through the SRLF.

C. Policy.

C-1. Project types. Funded projects can be of any type as long as they advance the effort to increase the sustainability of University of Idaho operations and are for uses consistent with permissible uses of public funds. Several projects with different payoff periods and rates can be bundled in one proposal. This will enable projects with short-term payoffs to offset projects with long-term payoffs for an average that meets SRLF criteria. Funds can be used on new construction and renovation only to cover the cost difference between a code-compliant option and a high-performance option.

C-2. Project durations. Projects need to be paid off in 5 years or less.

D. Procedures.

D-1. Allocation of savings. After receiving startup funding, the SRLF will be self-sustaining. The intent is to grow the SRLF over time using the cost savings accrued from sustainability projects. Many formulas for allocation of savings and repayment are possible and will be considered. Example formulas include the following:

a. 80% of estimated savings paid to SRLF until 120% of loan is covered, adjusted for inflation, for projects with payback of 2 years or less.

b. 50% of estimated savings paid to SRLF until 150% of loan is covered, adjusted for inflation, for projects with payback of >2 to 5 years.

To be funded, projects need to explicitly state the repayment formula and the budget(s) from which loan repayment is to be made as well as the mechanism for repayment. Projects providing shorter payback periods and higher repayment percentages will be prioritized.

D-2. Award decision making process.

a. SRLF project proposals shall be reviewed by the SRLF Board ("Board"), which shall make funding recommendations to the University Sustainability Director. Board members shall be appointed by the University Sustainability Director to three-year terms. The Board shall consist of the Sustainability Manager, the Associate Vice President for Operations, and one representative from each of the following entities on campus: Architectural and Engineering Services, students, and faculty.

b. Board decisions will be made by majority vote, with a quorum present. Projects may only be funded in response to a request for proposals (RFP) issued by the Board. The Board shall issue an RFP at least once per year. The Board will determine which projects to recommend for funding based on the criteria in this policy and any additional criteria it establishes and includes in the RFP. The Board shall forward its recommendations for project funding to the University Sustainability Director or designee, who shall have final funding decision-making authority.

c. The Sustainability Manager will be responsible for managing the issuance of the RFP, collecting proposals, staffing the Board, notifying applicants of award decisions, and otherwise providing administrative support to the Board.

D-3. Administration of SRLF. The SRLF will be administered by the University Sustainability Director, or designee, subject to the University’s policies.

E. Contact Information. The Office of Sustainability is the primary resource center for the policy and is available to answer specific questions. https://www.uidaho.edu/sustainability

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