Aggregating QECB Allocations and Using QECBs to Support the Private Sector: A Case Study on Massachusetts

Qualified Energy Conservation Bonds (QECBs) are federally-subsidized bonds that enable state, tribal, and local government issuers to borrow money to fund a range of energy conservation projects at very attractive interest rates and long terms. While small allocation sizes have deterred some local governments from pursuing issuances, state agencies in Massachusetts have partnered with local governments to aggregate QECBs to support a range of public and private projects. In most states, QECBs have been utilized primarily to fund energy conservation projects for public entities, but Massachusetts has facilitated over $10 million of private activity QECB issuances to support three privately-owned renewable energy projects—with more projects in the pipeline.