The Ohio Air Quality Development Authority (OAQDA) administers the Qualified Energy Conservation Bonds (QECB) program in Ohio. QECBs have been used by local governments and public universities to finance the installation of energy conserving equipment in publicly owned buildings. Under a QECB financing package, OAQDA authorizes Air Quality Development Bonds for issuance as a Series A federally tax-exempt bond and a Series B Qualified Energy Conservation Bond (QECB) federal tax-credit bond. Combining funding from the two separate sources results in a lower, "blended" interest rate for the participating entity.
Qualified conservation purposes include:
Capital expenditures that will reduce energy consumption in publicly owned buildings by at least 20%, fund green community programs, or support rural development involving the production of electricity from renewable sources;
Research expenditures that support the development of cellulosic ethanol or other non-fossil fuels, technologies for the capture and sequestration of carbon dioxide, increasing the efficiency of existing technologies for producing non-fossil fuels, automobile battery technologies to reduce fossil fuel consumption in transportation or technologies to reduce energy use in buildings;
Mass commuting facilities;
Demonstration projects that promote commercialization of green building technology, conversion of agricultural waste, advanced battery manufacturing technologies, technologies to reduce peak electricity consumption or technologies for the capture and sequestration of carbon dioxide emitted from fossil fuels that produce electricity; and
Public education campaigns to promote energy efficiency.