Property Assessed Clean Energy

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					Home Energy Retrofit Forum
Reno, Nevada


Simón Bryce | May 3, 2010
Original Architects of PACE
Contracts cover 200+ governmental
jurisdictions, 20+ million people
Contracts in CA, WA, OR, NM, CO, OH, MD,
LA
Offices: CA, OR, NM, IL, DC
                     How PACE Works

City or county       Property owners       Proceeds from       Property owner
creates type of      voluntarily sign-up   Revenue bond or     repays bond
land-secured         for financing and     other financing     through property
financing district   install energy        provided to         tax bill
or similar legal     projects              property owner      (up to 20 years)
mechanism                                  to pay for energy
                                           project
 The PACE Breakthrough: Senior Lien



Self-Financed                        Revenue Bond
By Municipality


                      Senior Lien
Long-Term Bank                        General Obligation
Financing                             Bond


                  Other Bond Structures
Municipal Risk vs. Competitive Interest Rate


                Revenue Bond               General Obligation
                                           Bond
Debt Service    Assessment                 General Fund


Liability       Participating Property     General Fund


Interest Rate   Based on Pool of           Municipal Credit Rating
                Participating Properties
                (Diversification &
                Creditworthiness)
             Revenue Bonds Emerge
           So how to secure a competitive interest rate?


• Lower Interest Rate vs. Reduce Participation Costs (“APR”)

• Municipal Guarantee “Moral Obligation” or other form of credit
  enhancement

• Proper “Underwriting” Criteria, Property Qualification (White House
  Policy Framework)

• Quality Assurance/Quality Verification

• Direct Municipal Subsidy (reserve fund; energy audit)

• Incorporation of Rebates & Incentives

• “Micro Bonds” – Interim financing to provide on-demand funding
    PACE Success
     Location          Interest     Max       Repayment       Project      Total
                         Rate       Loan         Term          Types      Amount

Berkeley, CA         7.75%        $37,500    20 years       Solar        Up to
(Micro                                                                   $80M
Bond/Revenue
Bond)
Boulder, CO          6.68% and    $50,000    15 years       Solar & EE   Up to
(Revenue             5.20%                                               $40M
Bond/Moral Ob.)
Palm Desert, CA      7.0%         $60K or    5, 10, 15 or   Solar & EE   Currently
(General Fund)                    approval   20 years                    $10M+
Sonoma County,       7.0%         $60K or    5, 10, 15 or   RE, EE &     Up
CA                                approval   20 years       Water        to$100M
(Treasury/Utility)
San Francisco        7.0%         $50K       5, 10, 15 or   RE & EE      Up to
(Micro                                       20 years                    $150M
Bond/Revenue
CaliforniaFIRST
14 Counties, 146 Cities - Launch: Summer
2010
       Sponsor: CA Statewide Communities
       Development Authority

       Team: Renewable Funding; Royal Bank of
       Canada Capital Markets

       Eligible Projects: renewable energy,
       energy efficiency, water efficiency

       Requires energy efficiency projects
       before installing renewables

        Centralized administration and bond
       issuance, local customization

        Awarded $16.5 Million ARRA grant
Renewable Funding Turnkey
Services




  Program Design
  Education & Administration
  Financial Package
Simón Bryce| simon@renewfund.com | (510) 451-7906

				
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