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C-PACE: A financing tool for building owners

Clean Energy Finance and Investment Authority. C-PACE: A financing tool for building owners. Clean Energy Finance and Investment Authority. … transitioning programs away from government-funded grants, rebates, and other subsidies, and towards deploying private capital

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C-PACE: A financing tool for building owners

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  1. Clean Energy Finance and Investment Authority C-PACE:A financing tool for building owners

  2. Clean Energy Finance and Investment Authority …transitioning programs away from government-funded grants, rebates, and other subsidies, and towards deploying private capital …CEFIA was established in 2011 to develop programs that will leverage private sector capital to create long-term, sustainable financing for energy efficiency and clean energy to support residential, commercial, and industrial sector implementation of energy efficiency and clean energy measures.

  3. Energy Challenge in Connecticut 3

  4. Property Assessed Clean Energy • An innovative financing structure that enables commercial, industrial, and multi-familyproperty owners to access financing for qualified energy upgrades and repay through a benefit assessment on their property tax.

  5. PACE is around the country

  6. The Customer (Building Owner):PACE Addresses Key Barriers • Lack of funding? Near term plan to sell? Cannot assume more debt? Split incentives? Uncertain savings/technical expertise? • 100% upfront, 20 year financing Tax obligation fixed to property PACE assessments qualify as OPEX Assessment/savings pass to tenants Technical underwriting / SIR>1 Hartford West Hartford Bridgeport Norwalk Simsbury Stamford Stratford Southbury

  7. Connecticut Special Session Public Act 12-2 (June 2012) • Commercial, industrial & multi-family property • Requires the consent of the existing mortgage lender • Requires SIR>1; permanently affixed • Enables municipalities to opt-in • Enables CEFIA to administer a statewide program

  8. Benefits to Other Stakeholders Hartford West Hartford Bridgeport Norwalk Simsbury Stamford Stratford Southbury

  9. Avon Beacon Falls Bridgeport Canton Coventry Danbury Durham East Hartford Glastonbury Greenwich Hartford Killingworth Stratford Tolland Torrington Waterbury West Hartford Westbrook Westport Wethersfield Wilton Windham Windsor Manchester Meriden Middletown New London Newtown Norwalk Old Saybrook Putnam Simsbury Southbury Stamford Municipalities Opted into C-PACE *Contingent upon 5/20 vote Coming Soon: Bethel, Cheshire, Clinton, East Windsor, North Branford, East Granby, Fairfield, Hamden, Meriden, Milford, New Haven, Suffield, Trumbull, Windsor Hartford West Hartford Bridgeport Norwalk Simsbury Stamford Stratford Southbury

  10. Customers Apply Into C-PACE Hartford West Hartford Bridgeport Norwalk Simsbury Stamford Stratford Southbury

  11. C-PACE Partners do Technical Underwriting Hartford West Hartford Bridgeport Norwalk Simsbury Stamford Stratford Southbury

  12. Anything that saves energy from baseline High efficiency lighting HVAC upgrades New automated building and HVAC controls Variable speed drives (VSDs) on motors fans and pumps High efficiency chillers, boilers, and furnaces High efficiency hot water heating systems …as long as it isn’t going anywhere Combustion and burner upgrades Fuel switching Water conservation Heat recovery and steam traps Building enclosure/envelope improvements BMS Renewable energy systems Upgrades: What’s Eligible Hartford West Hartford Bridgeport Norwalk Simsbury Stamford Stratford Southbury

  13. How does it work? • 1. Building owner engages contractor to develop scope of work; works with utilities (CEEF) to incorporate incentives • 2. Owner applies to C-PACE program at www.c-pace.com • 3. Third party review of technical and financial details

  14. How does it work? • 4. C-PACE alerts municipality; lien is placed on property • 5. CEFIA offers 100% upfront financing to owner • 6.Project commences

  15. How does it work? • 7. Owner remits payment to municipality as benefit assessment charge • 8. Municipality remits PACE assessment to CEFIA • 9. CEFIA “sells down” transaction to capital provider to replenish funds

  16. Capital Partners Construction and Term Financing from CEFIA • CEFIA authorized $20M short term facility for construction and term financing. Qualified Capital Providers • CEFIA qualified 10 capital providers through a RFI. • “Lending tree” model Owner Arranged Financing • Property owner is free to choose their capital provider from the private market. There is no government financing required. Patolan Partners Hartford West Hartford Bridgeport Norwalk Simsbury Stamford Stratford Southbury

  17. Jessica Bailey, Director C-PACE Clean Energy Finance and Investment Authority 860.257.2888jessica.bailey@ctcleanenergy.comwww.c-pace.com

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