Property Assessed Clean Energy (PACE) Financing

Transcription

1 Property Assessed Clean Energy (PACE) Financing New Economic Development & Infrastructure Financing Tool of the Future Midwest Energy Solutions Conference Panel: How Can Urban Locations Find New Energy Efficiency Savings Chicago, IL - January 15, 2014 Kevin P. Moyer, Executive Director TLCPA Energy Efficiency & Alternative Energy

2 Today s Topics Trends: Market Drivers & Technology. What is Commercial PACE? Benefits? Toledo Lucas County Port Authority (TLCPA) model & success with PACE. Future Opportunity.

3 Market Drivers - Energy Efficiency Huge Market: $279B Commercial & Public Building Energy Efficiency Market (Navigant 2013). Aging Urban Buildings, Water & Power Infrastructure. Community & Business Sustainability Strategies & Plans. Lack of Commercial Real Estate Re-investment. Buildings Systems Reaching End of Life Need Retrofit. 70% of Federal Renewable Energy Policies Drop in 2014 Driving Increased State & Local Focus & Success. Economic Development and CBD Revitalization. Technology Capabilities and Energy Cost Avoidance.

4 Technology Drivers - Energy Efficiency Smart Buildings LED Lighting Energy Efficient HVAC Energy Storage Combined Heat & Power (CHP) / Waste Heat Geothermal Heat Pumps Solar PV Integration Building Metering, Modeling & Software

5 What is Property Assessed Clean Energy (PACE) Financing? Innovative new financing structure for improving buildings through energy efficiency and alternative energy projects. Established in Ohio in 2009 / 2010 as a form of structure for energy projects under Ohio Revised Code (ORC)1710 Special Improvement Districts (SID). Commercial property owners can voluntarily make energy efficiency & alternative energy improvements & pay for them through a special assessment on the property.

6 How Commercial PACE Works Benefits to Property Owner: Financing available, no up-front costs, solves multi-tenant issues, increases building value & energy efficiency, treated like other property taxes or assessments. Benefits to Commercial Lenders: Assessment mechanism well understood, Increased NOI, increased value of building. Benefits to Urban Areas: Economic development, energy savings, community sustainability, revitalize CBD. Local Government Forms ESID; Enables PACE Assessment Building Owner Evaluates Projects for Energy Savings Local Government Assists or Provides Financing Property Owner Pays Assessment up to 20 years

7 PACE Activity in the United States

8 Toledo Success With PACE Financing One of the most active, largest PACE districts in US. Issued $16.5M Energy Bonds ; $21M total financing; $30M of projects. QECB s, State Energy Loans, Tax Equity, Utility Rebates. RLF turned over 2X. Over 80 building projects. $25M-$30M future project pipeline. Revolving Loan Fund for Construction, Aggregation, Term Loans NW Ohio Bond Fund Taxable Bond Pool Multiple Tranche Aggregates Smaller Deals QECBs, Tax Equity, SEP Better Buildings NW Ohio TLCPA Economic Development & Financing TLCPA Transportation Financing Development Operations Markets & Facilitates, Arranges Financing NW Ohio Advanced Energy Improvement District Signs Loan Agreement w/port PACE - Assessments

9 9

10 Toledo-Lucas County Port Authority leadership & City of Toledo partner. Establish energy strategy, policy, plans and targets. Improve energy efficiency 20% by million square feet in over 100 public & private buildings. $50 million of projects..

11 One Maritime Plaza President s Challenge Showcase Project Office building & parking garage. Early 80 s building 65,000 sq. ft. $1,000,000 + investment. 45% energy savings potential = Deep Retrofit. Lighting, building controls, cooling tower, mechanical systems, building envelope. Create productive work environment.

12 TLCPA Unique Financing Features Investment grade bond fund managed by TLCPA expands into energy financing & bond pooling. TLCPA establishes revolving loan fund to start construction / aggregate transactions. PACE Assessments provides lien security & revenue backing for bond issuance. Fixed Interest Rates up to 15 years. 100% turnkey financing available. Transaction size $50,000 to $5,000,000+.

13 TLCPA Key Success Factors Board strategy for growth. Experienced team. Customer service. Simple documentation. Funding available when customer needs it. Robust financial offering. Demand driven through partner relationships. Local brand recognition. Partner process education. Sustainable program. National recognition.

14 Future Vision Urban areas have strategic energy strategy reinforced by policy, plans, resources and partnerships. Energy strategy and plans are integrated with community sustainability strategy and plans. Form energy improvement districts to enable PACE financing and economic development. Include building energy efficiency, street lighting, water processing and renewable sources. New building and existing building energy efficiency standards target 30% - 50% reductions.

15 Kevin Moyer, Executive Director Energy Programs Toledo Lucas County Port Authority One Maritime Plaza, Toledo, OH O: (extension 126) M: THANK-YOU. 15

16 Download the FREE Midwest Energy Solutions Conference Mobile App Sponsored By: For ios For ios For Android 16