Property Assessed Clean Energy Cisco DeVries Renewable Funding LLC

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Property Assessed Clean EnergyCisco
DeVriesRenewable Funding LLC

• Austin, TX November 20, 2009

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Climate and Energy Crisis
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Our Secret Weapon

• Reduce energy use
• Save money
• Create jobs
• Cut greenhouse gas emissions

520B investment by 2020 would yield savings of
1.2 trillion and 1.1 gigatons of GHG. (McKinsey
Report, 2009)
Create 6 million new jobs
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Whats the Hold Up?

• Utility Bills
• Simple monthly service
• Solar, Energy Efficiency
• Large upfront cost

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• Ciscos iPhone Bill
• 119/ month
• 1428/ year
• 28,560/ 20 years

• Ciscos Utility Bill
• 129/ month
• 1548/ year
• 30,960/ 20 years

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PACE Financing

• Property Assessed Clean Energy

• Voluntary Program allows property owners to
  install solar and energy efficiency projects with
  little or no upfront cost. Costs repaid on
  property tax bills over 20 years.

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PACE How it Works
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Benefits to Property Owner

• Removes many of the financial hurdles to
  installing solar systems and energy efficiency
  upgrades
• No upfront cost to the property owner
• Payments fixed for 20 years
• Customer chooses contractor/installer
• Property tax transfers to the new owner when the
  property is sold
• Utility bills decrease due to energy savings
• Credit analysis is on the property, not the person

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Benefits to Cities and Counties

• Low risk financing tool for cities and counties
• Helps cities and counties meet their climate and
  energy goals
• Program costs can be paid out of the financing
• No liability or other exposure to a citys
  general fund
• Financing mechanism well known to local
  governments and bond market
• Promotes the green economy, creates green jobs

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National Support
We are going to make it a lot easier to borrow
money.  We are doing this by encouraging
communities to give you the option to pay the
expense of retrofitting your home by paying it
back on your property taxes. -- Vice President
Joe Biden (October 19, 2009)
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States with Legal Authority
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Existing Financing Programs
Location Interest Rate Max Loan Repayment Term Project Types Approved Projects
Berkeley, CA 7.75 37,500 20 years Solar 1.5M
Boulder, CO 6.68 and 5.20 (APR 1.5-2) 50,000 15 years Solar, Wind, EE 10 M
Palm Desert, CA 7.0 60K or approval 5, 10, 15 or 20 years Solar, EE 7.5M
Sonoma County, CA 7.0 60K or approval 5, 10, 15 or 20 years Solar, EE, Water 30 M
California Statewide TBD Home Value Metric Up to 20 years Solar, Wind, EE TBD
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Texas Estimates
Market Penetration Owner Occupied Housing Units Number of Homes Total Value of Improvements Texas Jobs Created (Estimated)
1 52,789 1.3 Billion 14,319
5 263,946 6.6 Billion 71,595
25 1,319,729 32.9 Billion 357,796
Assumptions/ Sources 25,000 average
improvement Project mix half energy efficiency
and half solar Jobs multiplier Center for
American Progress (direct and indirect) Owner
Occupied Housing units U.S. Census Data
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Implementation Issues

• Legal Authority/ Structure HB 1937
• Voluntary program, private property
• Financing
• On-demand bond financing for small projects
• Administration/ Application Processing
• Line up expectations, requirements, timelines
• Cost effective administration
• Regulatory scheme, quality assurance
• Marketing and Outreach

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Emerging Financial Structures

• Aggregated Bond Issuance
• Boulder County, CO
• Interim Financing Model
• City/ County Funds
• Sonoma County and Palm Desert
• Private Capital
• Berkeley/ San Francisco/ San Diego (Renewable
  Funding)
• Babylon, NY model
• Commercial Banks

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Administration

• Coordinate stakeholders, integrate into system
• Cost effective administration
• Education, Marketing
• Decision Tools
• Customer Service
• Application Processing
• Funding
• Regulatory scheme, quality control
• Tracking and reporting

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BerkeleyFIRST Websitewww.berkeleyfirst.renewfund.
com
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Early Success
The entire process has been flawless, from quote
and installation through the rebate and funding
process. Everyone I dealt with was terrific and
made the process painless. -- Aaron Mann,
BerkeleyFIRST homeowner
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San Francisco Website
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Renewable Funding

• A partner to provide a turnkey PACE program for
  cities and property owners.

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• Cisco DeVries
• 510.451.7902
• cisco_at_renewfund.com
• www.renewfund.com