The Nebraska Department of Environment and Energy’s Dollar and Energy Saving Loans (DESL) program works with the state’s lending institutions to provide low-interest loans to Nebraskans who want to make energy efficiency improvements in their homes or buildings.

Between March 1990 and Sept. 30, 2021, NDEE’s DESL program helped finance more than 30,000 energy saving projects across Nebraska’s 93 counties. These projects total more than $379 million, with NDEE providing more than $188 million from its revolving loan fund. The state’s participating lenders have provided more than $137 million in funds, and the balance of roughly $53 million was spent by borrowers.

NDEE Planning and Aid Division Administrator Sarah Starostka said the fact that the DESL program is used across the state is significant.

“The DESL program provides low-interest loans to Nebraskans, no matter if they’re in urban or rural areas,” Starostka said. “Plus, it’s rewarding to know the energy efficiency measures the DESL program helps fund can lead to savings on energy bills.”

The DESL program was created using oil overcharge funds. During a period of federal price controls from 1973 to 1981, oil companies overcharged their customers. Courts ordered the companies to pay indirect restitution by providing funds to states, and the states used those funds to create energy assistance and efficiency programs.

Nebraska used those funds to create the DESL program, which is a revolving loan fund; money from borrowers’ loan repayments is put back into the program, according Starostka. She said a few other states used their funds as grants.

“Nebraska took a unique approach in how it uses its original oil overcharge funds,” Starostka said. “Because the state chose a revolving loan fund, the money NDEE puts into the loans comes right back to the agency. That way, the program can help even more Nebraskans.

The DESL program was later augmented with funds from the American Recovery and Reinvestment Act of 2009.

Nebraska residents, businesses, non-profits, local governments and school districts are among those that can apply for a DESL loan. Those interested in receiving a loan can start the process by applying though their participating lending institutions.

Starostka said once the lender has granted preliminary approval, it sends the application to NDEE to review the proposed project. If the project qualifies and meets energy requirements, NDEE lets the lender know the project can proceed. The applicant and the lender work to complete the loan process.

The lender and NDEE sign a participation agreement, and NDEE provides a percentage of the loan, which allows the bank to provide a lower interest rate to the applicant.

A few typical improvements that can be financed through this program include:

• Adding insulation to walls, floors, ceilings, attics and other building envelope surfaces
• Replacing inefficient furnaces, air conditioners and heat pumps
• Replacing doors and windows
• Upgrading lighting
• Adding photovoltaic systems
• Replacing irrigation pumps and motors
• Replacing grain dryers

For more information, visit NDEE’s website.