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School District HVAC Loan Program

SECO's School District HVAC Loan Program finances HVAC upgrades at public school district facilities. Low interest rate loans are provided to assist those public school districts. The program's revolving loan mechanism allows Applicants to repay loans through the stream of energy cost savings realized from the projects. Funds are made available at various times per year.

Sign up to receive funding and incentive notices when funds become available.


Applicant Eligibility

Eligible school districts must be public, taxpayer-supported Texas ISDs. The public independent school districts must own and occupy the facilities where the retrofit projects will take place. Each ISD is eligible for one loan. A single loan can cover multiple HVAC projects on different campuses within the district.

Open enrollment charter schools, county juvenile detention centers and Juvenile Justice Alternative Education Program facilities are not eligible.

Project Eligibility

The following projects are eligible for funding, as are labor and materials directly related to proper installation. The new equipment must replace existing equipment at existing buildings and facilities. Projects and/or equipment not specifically listed are not eligible.

New Direct Expansion (DX) Air Conditioning Systems

  • The minimum age of the equipment to be replaced is ten (10) years.
  • Unitary systems that provide both heating and cooling operations from one product.
    • Related materials: electrical contacts/disconnects, gas piping/connections, condensate lines and pumps, unit or wall mounted thermostats, control valves, supply air and return air grills
  • Rooftop package units (constant air volume or variable air volume systems)
    • Related materials: roof curb, roof curb adapters, condensate lines, gas piping/connections, control components, heavy duty coil guards, Variable Frequency Drives, supply/return/outside air ductwork and grills
  • Split system units (constant air volume or variable air volume systems)
    • Related materials: condensing unit mounting pad, refrigerant lines and insulation, electrical disconnect, furnace, DX coils, control components, supply/return/outside air grills, connecting ductwork and insulation

Energy Efficiency Improvements to New HVAC Systems

  • Retro-commissioning of control systems where HVAC systems have been replaced
  • Projects and/or equipment not specifically listed are ineligible for funding.

All projects must affect building spaces where academic classes are regularly held.

  • Administration buildings, field houses and auxiliary buildings are not eligible.

Restrictions and Ineligible Projects

  • Buildings that require Texas Historical Commission review or approval
  • Buildings 44 years old or older
  • Projects and/or equipment not specifically listed are not eligible.
  • Equipment cannot be purchased prior to the loan agreement being fully executed.
  • Indirect costs, such as general administration and overhead costs, are not allowable expenses for loan funding.

Installation Requirements

  • An air conditioning and refrigeration contractor licensed by the Texas Department of Licensing and Regulation must install eligible HVAC equipment, certify its proper installation and provide a TACL number with reimbursement requests.
  • All contractors must certify the following:
    • Proper installation in accordance with manufacturer's recommendations
    • Proper disposal of existing equipment and refrigerants pursuant to Texas Administrative Code ยง335
    • No conflicts of interest

For questions about the School District Loan Program, contact Eddy Trevino

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