EPAD Program

Louisville’s Energy Project Assessment District (EPAD) program is a tool that allows property owners to repay private loans for energy efficiency, renewable energy and water conservation measures through a voluntary assessment administered by the Jefferson County Sheriff in the same manner as a property tax bill. The program allows property owners to secure more favorable financing terms than with traditional financing mechanisms. Through the EPAD program, property owners may also finance up to 100 percent of an eligible project’s cost. To see a case study of Louisville's first EPAD project, click here

Eligibility

A full list of eligibility requirements, including example projects, is included in the EPAD Program Manual

Property Owners

The Program is only available to properties located within Jefferson County. Eligible property types include office, retail, industrial, agricultural, non-profits and multi-family residential units consisting of five (5) or more dwelling units. Commercial properties include for-profit businesses and non-governmental, non-residential, tax-exempt properties such as privately-operated community centers and hospitals. 

Projects

An eligible energy efficiency, water efficiency or renewable energy improvement project must have a minimum cost of $20,000, a useful life of at least five (5) years and be permanently affixed to the property or building. Additionally, the project must reduce energy or water usage or generate renewable power for the property. 

Lenders and Contractors

All lenders and contractors are initially eligible to participate in Louisville's EPAD Program. However, Louisville Metro Government reserves the right to bar lenders and contractors from participating in EPAD projects if they are found to be in violation of program goals.

The Benefits of EPAD

  • EPAD capital comes from private sources. Unlike traditional financing, property owners can finance up to 100% of an energy project’s cost for EPAD projects. 
  • Improvements financed through EPADs are designed to reduce building operating expenses thereby improving the cash flow of the property owner.
  • Improvements financed through EPAD have been demonstrated to increase the value of properties and may reduce maintenance and repair costs. In addition, energy improvements may increase the efficiency, health, and comfort of a building, making it more attractive to tenants and future owners. 
  • The responsibility of repaying the loan through the annual EPAD assessment transfers to the new owner of the property upon sale or transfer. This enables property owners to reserve other lines of credit for working capital or non-energy related improvements.

How to Participate

Step 1 - The property owner completes an Initial Eligibility Form.

Step 2 - If the property owner and proposed project meet eligibility requirements, the Office of Sustainability works with the applicant to prepare and submit the Formal Program Application and related documents.

Step 3 - The Office of Sustainability reviews the Formal Program Application and approves the project if all requirements are met. 

Step 4 - The property owner, lender, and Louisville Metro Government sign a tri-party agreement and complete the finalization documents during the financial closing.

Step 5 - The property owner repays the loan through an annual assessment administered by the Sheriff each July.  

Program Documents

EPAD Program Manual

List of Forms and Documents

Initial Eligibility Form

Formal Program Application

EPAD Program Financing Agreement

Energy Project Completion Certificate

Authorization

  • Kentucky Revised Statutes Sections 65.206 - 65.209 (the "EPAD Act") authorized Louisville and other consolidated local governments in the Kentucky to establish an EPAD program.
  • Louisville Metro Code of Ordinances Chapter 165 designates the entirety of Louisville Metro as an Energy Project Assessment District.

For more information on Louisville's EPAD Program, email sustainability@louisvilleky.gov, or call 502-574-6285.

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