RFI for Energy Efficiency Revolving Loan

The Michigan Department of Environment, Great Lakes, and Energy (EGLE) has issued a Request for Information (RFI) to solicit market intelligence regarding the development of the Michigan Energy Efficiency Revolving Loan Fund, a program capitalized with $13,327,440 in federal Department of Energy funding under the Infrastructure Investment and Jobs Act Section 40502. The procurement seeks information on financial products, lending practices, and institutional capacity from potential program lenders to support energy efficiency projects for eligible Michigan commercial and residential borrowers. The program will finance energy audits and efficiency upgrades for commercial buildings with 500 or fewer employees and residential properties including single-family homes, condominiums, duplexes, and manufactured housing units, with all projects required to demonstrate life-cycle cost-effectiveness and address energy efficiency, occupant comfort, or indoor air quality through qualifying energy audits. Key objectives include maximizing loan volume while leveraging private capital, accelerating energy savings, and supporting job creation. The RFI requests organizational information and detailed feedback on loan product offerings, underwriting criteria, borrower characterization, co-lending structures (including potential loan loss reserve or subordination models), interest rate adjustments, higher-risk lending criteria, and compatibility with loans up to 15 years in duration. Vendor questions must be submitted by 3:00 p.m. Eastern on Friday, February 20, 2026, with responses posted by March 4, 2026, while completed RFI responses are due by 3:00 p.m. Eastern on Wednesday, March 18, 2026, submitted electronically through www.michigan.gov/SIGMAVSS in modifiable native formats (Microsoft Word, Excel, Google Docs, or Sheets) with individual document file sizes not exceeding 6 MB.

Program Lenders must be federally or state-chartered banks, credit unions, or CDFI-certified community development financial institutions with offices in West Michigan, and will originate, service, and collect loans while maintaining full reporting responsibility. The program structure allocates $1,125,690 for program management, $3,331,890 for subsidizing energy audits and project costs for low-income homeowners, and approximately $8.8 million to $8.2 million for loan participation depending on the co-lending model selected. The Program Sponsor will participate in 50 percent of each eligible loan at a fixed 2 percent interest rate, with Program Lenders setting their normal customary rates on the remaining 50 percent share, resulting in blended rates benefiting borrowers. All projects must comply with Davis-Bacon Act wage requirements for commercial work (with residential projects exempt if funds flow directly to homeowners), the Build America Buy America Act, and the National Environmental Policy Act where applicable. Vendors may request confidential treatment for trade secrets and proprietary financial information using the required Confidential Treatment Form and must submit a redacted public copy; however, all responses become public record immediately upon receipt unless properly designated as confidential. The State reserves the right to invite selected vendors for oral presentations and will determine final authority on Freedom of Information Act exemption applicability.