In a unique public-private collaboration, the State of Tennessee is creating a targeted loan program for financing energy efficiency improvementsenergy efficiency, loans, energy efficiency financing, Tennessee, Pathway Lending, business, energy efficiency improvements, energy efficiency loans

Clint Gwin

English

Research Papers in Economics

In a unique public-private collaboration, the State of Tennessee is creating 
a targeted loan program for ﬁ  nancing energy efﬁ  ciency improvements.
From the Tennessean Aug. 29 © 2010 
T
hanks to the leadership of Governor Brede-
sen and the legislature, Tennessee busi-
nesses will now have access to energy-
efﬁ  ciency ﬁ  nancing at an unprecedented level.
Through this leadership, the State of Tennessee 
is creating a unique public-private collabora-
tion to develop a model for the rest of the na-
tion to follow. This ﬁ  rst-of-its-kind collabora-
tion is leveraging state funds with capital from 
the Tennessee Valley Authority (TVA), Pinnacle 
National Bank, and Pathway Lending for the 
creation of a targeted loan program for ﬁ  nancing 
energy efﬁ  ciency improvements. This program 
is receiving additional support from the U.S. 
Economic Development Administration and the 
U.S. Department of Energy as a possible blue-
print for other states.
Why is it important that Tennessee and Path-
way Lending develop and launch this type of 
loan program at this time? As many businesses 
understand, energy costs are rising, corporate 
budgets for capital projects are shrinking, and as 
the Pew Foundation recently reported, lack of ﬁ  -
nancing is the number-one barrier to implement-
ing energy-efﬁ  ciency projects.
This program will bring businesses in our state 
what is currently unattainable—access to loan 
capital to ﬁ  nance energy efﬁ  ciency and renew-
able energy projects. The program will provide 
below-market-rate loans to ﬁ  nance energy efﬁ  -
ciency improvements ranging from $20,000 to 
$1 million in Tennessee facilities. Whether it’s 
building retroﬁ  ts, upgrading equipment, or add-
ing renewable-energy generation, businesses 
can now take the next step in achieving the sig-
niﬁ  cant, long-term energy savings they’ve been 
demanding, all while becoming more competi-
tive and reducing impact on the environment.
The study Energy Efﬁ  ciency in the South, re-
leased in April 2010, cites that by reducing the 
growth of electricity consumption, Tennesseans 
could save as much as $1.6 billion a year by 2020 
and $3.1 billion a year by 2030. More important, 
energy-efﬁ  ciency projects create and retain jobs 
right here in Tennessee. These economic im-
pacts are felt locally where trained contractors, 
consultants, and installers are needed for proj-
ect implementation. Over the next 10 years, it 
is expected that this loan program will generate 
more than $100 million in loans and will create 
and retain more than 3,500 jobs while decreas-
ing Tennessee’s demand for new electric power 
generation and reducing environmental impacts.
Tennessee has made signiﬁ  cant strides to be-
come a national leader in sustainability and 
green business over the past few years. Ma-
jor corporations specializing in solar energy 
are moving to our state. Organizations like the 
Southeastern Energy Efﬁ  ciency  Alliance  are 
educating businesses on the value of energy ef-
ﬁ  ciency. Oak Ridge National Laboratory is us-
ing commercially available and lab-developed 
technology for energy-efﬁ  ciency efforts such as 
the Net-Zero Energy Building and Sustainable 
Campus Initiative, all of which have been rec-
ognized as potential national models.
Energy efﬁ  ciency is a smart decision for busi-
ness and the economy of our state and an even 
better decision for the environment. Pathway 
Lending is launching an efﬁ  cient online applica-
tion process to assist businesses across Tennes-
see from sole proprietors to corporations in their 
efforts to become more energy efﬁ  cient, envi-
ronmentally friendly, and globally competitive.
Clint Gwin is president of Pathway Lending, a 
Community Development Financial Institution as 
certiﬁ  ed by the U.S. Department of the Treasury. 
ENERGY EFFICIENCY NEEDED FOR STATE BUSINESSES
by Clint Gwin
October 2010     Tennessee’s Business Vol. 19, No. 3
10
Clint Gwin

Energy Efficiency Needed for State Businesses

http://frank.mtsu.edu/~berc/tnbiz/green/gwin.pdf

Energy Efficiency Needed for State Businesses

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