In an effort to generate more bidder interest in its energy project, the Bowie City Council voted to rebid the qualified energy conservation bond proposal with a few recommended enhancements.

At Tuesday night’s council session Paul Jasin, managing director with Specialized Public Finance, said the city received two request for proposals to finance the $3.7 million project and neither met the specifications.

Financing is being sought through the Texas Local Government Code which allows cities to update their infrastructure through an energy performance contract financed through an energy conservation low interest plan. Bowie’s project has been approved by the Texas Bond Review Board for a $4.1 million allocation based on its projected energy savings of $7.4 million over the 20-year life span of the project.

The QEBC is not actually a bond, but an interest rate subsidy through the U.S. Department of the Treasury. It is anticipated the interest rate will be less than one percent. In the process an investor purchases the project and receives a tax credit in lieu of receiving a market interest rate on the bond. Jasin recommends the city rebid the proposals and enhance it with a tax pledge, which they believe will get more bank bids and lower interest, as well as provide flexibility for the tax credit. Read the full story in the weekend News.