Colgate University's Green Revolving Loan Fund (GRLF) is an internal fund earmarked for energy efficiency, renewable energy, and other sustainability projects that generate cost-savings over time while reducing carbon and ecological footprints. Savings are tracked and reinvested into the fund to finance the next round of green investments.

FUND BACKGROUND

In 2017, Colgate University approved the Bicentennial Plan for a Sustainable and Carbon Neutral Campus.  One of the key recommendations in the plan was to create a green revolving loan fund at Colgate University.  In 2018, Colgate's Sustainability and Climate Action Reserve officially became the Green Revolving Loan Fund with an additional investment by the university of $800,000.  Altogether, the university contributed over $1.25 million to get the Green Revolving Loan Fund officially established in 2018.

FUND OVERSIGHT AND ADMINISTRATION

The GRLF Committee provides oversight of the process and administers the GRLF.  The primary responsibilities of the GRLF Committee are to: evaluate project proposals, make determinations of which projects are funded, ensure that projects repay the Fund from identified cost savings, and provide annual reports on the status of the fund and projects supported by the fund.  

The GRLF prioritizes projects within Facilities that reduce annual operating costs and greenhouse gas emissions, and also have a relatively quick return on investment.  

The GRLF Committee is made up of the following members of the Colgate Community:

• • • Finance/Budget designate (Dan Partigianoni)

    • Provost/Dean of Faculty designate (Trish St. Leger)

    • AVP of Facilities and/or Energy Manager (Steve Hughes)

    • Director of Sustainability (John Pumilio)

The chair is appointed from the membership by the VP for Finance and Administration.

OPERATING PROCEDURES

Project Submission

In order for projects to be considered, the GRLF Application must be completed and sent to the director of sustainability for initial review.  Particularly strong proposals often meet the following criteria:

• • • Identify specific environmental benefits such as resource conservation or greenhouse gas reduction;

    • Demonstrate ability to measure or estimate project outcomes;

    • Demonstrate ability to identify savings to repay the fund, normally within 3-5 years, but longer paybacks may be considered; and

    • Highlight the potential for community education, engagement, and collaboration.

Project Selection and Execution

The GRLF Committee meets to review proposals as they come in. All proposals will be subject to modification by the GRLF Committee before acceptance. Should a proposal be modified, the affected author(s) will be notified and extended an opportunity to respond.

Up to 10 percent of the Fund can be allocated to projects that don’t have a payback, such as the installation of resource metering.

If a proposal is approved, the revolving fund finances the cost of the upgrades as a loan. The savings from a project’s implementation repay the loan, plus 10 percent, thereby growing the overall pool of money to fund future projects.

When possible, exact measurements should be used to determine finances. In those scenarios where this is impossible or very costly, a calculated estimate should be used in its place. The GRLF Committee will have the final determination of all proposal estimates.

Occasionally, in exceptional circumstances, the GRLF Committee may approve a project by consensus that may not produce a financial return but provides striking sustainability advantages or offsets unusually high energy costs. These proposals will be considered as long as they do not threaten the long-term viability and success of the Fund.

All financially affected parties are to sign a written contract before project execution. Terms of a payment plan may be modified during a full committee meeting at the request of the project recipient. Special flexibility should be considered for those projects involving volatile markets or external costs. A majority of the committee members must approve the modified terms. 

Payback Formula

Cost savings from all funded projects will accrue to the Fund and the university operating budget according to the following formula:

100% of project cost savings will be returned to the fund annually until 110% of the initial project cost has been restored.

Upon complete repayment, all savings are retained by the university's operating budget.

Tracking and Evaluation of Projects and the Fund

The Green Revolving Investment Tracking System (GRITS) web tool is used to help manage Colgate’s GRLF, including project selection, savings tracking, and project/portfolio reporting on energy, financial, and carbon data.