About MCED

We often are asked;  “why can’t people just go to their bank and do the same thing?”  And the answer is, they can! . . . But they generally don’t.  And here is the perfectly simple reason why not.

Any bank worth its salt knows its customers and wants to help them finance their needs. That’s why they are in business after all.  

A property owner’s first natural impulse is to visit the bank and they are invariably met by their friendly banker who wants to help.

The problem often encountered next is neither the fault of the borrowing customer nor the willing banker. The problem is in getting to the terms of an agreement for a transaction that the bank is unable to fund because of the project type itself.

Banks are restricted from lending to customers for long periods of time at fixed interest rates. This restriction is imposed by federal and state banking regulators.  Normally, that isn’t a problem. However, because the project types we are discussing most often require a long-term, fixed-rate transaction it becomes a problem for energy improvement financing.

The reason is because most energy improvement projects are intended to pay for themselves through energy cost savings. Often this requires a longer term borrowing with a preference for a fixed rate. No one wants to risk an interest rate reset that might jeopardize their positive cash flow project. (see “This is Bob” )

Because this problem was recognized by policy makers, special authority has been provided to MCED to establish programs bringing the proper capital sources to communities throughout Missouri –not because we desire to compete with banks or deprive them of any business, but rather to address a market need that until now has not been able to be served.

It has long been recognized that traditional financing methods and public funding of energy improvement programs have been inadequate. These factors, in conjunction with Missouri legislative support, led to the creation of the Missouri Clean Energy District which was established as a statewide political subdivision in 2011.

A determination to structure the district as an intergovernmental compact was an obvious choice. Attraction of capital relies on an ability to create a saleable program. While any town, city or county can stand up its own authority, doing so doesn’t address the practical aspect of providing opportunity for rightsized investment as an incentive for capital providers.

By addressing this issue, the district has achieved a significant presence and support statewide.  MCED’s Intergovernmental arrangement now encompasses over 350 jurisdictions.  The district’s jurisdictional members gain access through their own legislative efforts to join with the district. As a result of the district’s efforts and actions of membership, MCED currently stands as the state’s largest political subdivision consisting of over 3.6 million people or nearly 60% of total population.

To date the district has arranged funding commitments of over $2 billion. Both residential and commercial project financing has been made available through the district’s authority. Thousands of projects have been funded. And the resulting creation of jobs, economic growth and reduction of utility costs have only just begun. This is but a small fraction of the work necessary to address the opportunities to be found within the built environment of Missouri.

We continue to seat additional membership and collaborate with like-minded organizations in support of a cause that is so important to everyone. This desire extends to encouraging public and private funders to find the work of MCED useful and worthy of support. We welcome any and all participation in our work to meet the needs of Missourians.

The way we accomplish our mission is to design programs that simply and professionally provide previously unavailable capital to trigger change.

Missouri Clean Energy District is a statewide initiative committed to uniting Missourians to strive toward reaching our state’s energy goals. That’s why MCED is inviting you to Do Your Part™—to help increase energy efficiency for the future of Missouri; our part of the world. We’re here to give you the financing tools, knowledge and, above all, inspiration to do your part, for yourself, your organization and your community, to save energy.

It takes every one of us to keep moving Missouri forward as a smart energy leader, so we can’t succeed without you. We support the State of Missouri in its quest to expand energy efficiency and reduce greenhouse gas emissions. If that seems ambitious, that’s because it is.

The good news is that all it takes to get started is the flip of a light switch or the turn of a dial; even investing in an energy project. In fact, we are already on track to secure unlimited capital resources for energy projects across every community in our state.

At MCED we know that all those, energy-efficient upgrades, like switching to LED light bulbs or installing an efficient HVAC system, add up to a cleaner, healthier, more prosperous state, and can preserve our incredible environment for generations to come.

MCED recognizes the value of operating as an open-source platform to bring borrowers and investors together. We are pleased to engage with a broad range of interests from both sides of the transaction. Our attitude is simple; more options are good for everyone.

MCED is supported by an alliance of market partners, local governments, community choice advocates, businesses and nonprofits to assist communities in meeting state and local energy and environmental action goals. Our funding comes entirely from district operations. MCED does not use one dollar of taxpayer, state general revenue or local government money.

MCED is the only issuer in the State of Missouri to successfully issue Qualified Tax Credit Bonds. These very valuable direct pay tax credit bonds unfortunately are no longer available as a result of the new tax law but continue to provide substantially reduced borrowing costs for those qualifying projects that were funded.

The District continues to seek out innovative ways to finance the important energy improvements of Missourians.