Student Involvement in Revolving Loans: A Case Study

1. Student Involvement in Revolving Loans: A Case Study University of Illinois Student Sustainability Committee: Marika Nell, Katie Kinley, Marcus Ricci and Emily Cross

2. 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

3. 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

4. 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

5. 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

6. 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

7. Funding Priorities • Payback period • Reduction of coal • Fund size impact • Visibility • Project coordination (leverage of additional funds)

8. 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

9. Leveraging Funds for the RLF • Utility Savings • Fully Loaded Rate Structure • Grant Funds

10. 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

11. Fully Loaded Rate Structure • Fully Loaded Rate • Students were very involved in the discussions with administrators to push for fully-loaded rate

12. Grants Project grants written by Facilities and Services serve also increase RLF SSC-funded solar decathlon house

13. Lessons Learned

14. 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

15. 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

16. Lessons Learned Overall: • 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

17. Thank you! http://ssc.union.illinois.edu sustainability-committee@illinois.edu