LEADERS IN ENERGY EFFICIENCY FINANCING NETWORK. INVESTING IN ENERGY EFFICIENCY: GREEN REVOLVING FUNDS WORKSHOP January 23, 2013

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From this document you will learn the answers to the following questions:

  • How many GRFs were distributed per student?

  • How many GRFs did a student receive per student?

  • What is the purpose of the Green Revolving Funds?

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1 INVESTING IN ENERGY EFFICIENCY: GREEN REVOLVING FUNDS WORKSHOP January 23, 2013

2 The Sustainable Endowments Institute The College Sustainability Report Card (National) The Billion Dollar Green Challenge (National Challenge) Leaders in Energy Efficiency Financing (Regional Network)

3

4 Characteristics of a Green Revolving Fund Funds are allocated and are available for efficiency projects. Selected projects have identifiable and measureable savings. Savings are captured and deployed for new efficiency projects.

5 Why choose a Green Revolving Fund? Transform expense into investment Convey reputational benefits Catalyze a culture shift Alleviate pressure from tight budgets Reduce internal transaction costs Institutionalize a mechanism for reinvesting Performance Tracking Seize new fundraising opportunities

6 Anatomy of a Green Revolving Fund Seed Capital Accounting Systems Fund Oversight Fund Operations and Project Selection Project Criteria Measuring Savings Long-term Strategy

7 10 Steps to a Successful GRF 1. Do your homework 2. Select your model 3. Access opportunity and run the numbers 4. Build buy-in 5. Secure seed capital 6. Establish financial flows 7. Launch and manage 8. Implement projects 9. Track, analyze, and assess performance 10. Optimize and improve

8 Goals: Financial Goals Environmental Goals Education or Community Goals Types: Efficiency Innovation & Engagement Hybrid Champions Sources of Capital Fund Size Project Selection Payback Criteria

9 Formation: Champions Sources of GRF Capital Fund Size Fund Structure & Management Payback Criteria Interest Charges

10 Management: ROI & Other Benefits Reported payback Loan vs. Accounting Model Estimating & Verifying Performance Tracking Savings GRF Restrictions

11 Greening the Bottom Line 2012

12 Number of GRFs LEADERS IN ENERGY EFFICIENCY FINANCING NETWORK Growth of Green Revolving Funds: N = 79 Year

13 Distribution of Green Revolving Fund Institutions by Enrollment Size N = Number of Institutions ,999 5,000-14,999 15,000-24,999 25,000+ Distribution of GRFs

14 Distribution of Green Revolving Funds by Endowment Value per Student N=68 35 Number of Institutions k 50-99k k k k 750k+ Endowment Value per Student

15 45 40 Green Revolving Fund Champions 38 N= Number of Institutions Champions

16 Number of Institutions Green Revolving Fund Common Sources of Capital N= Type of funding

17 30 Number of Green Revolving Funds by Capitalization 27 N= Number of Institutions Series1 Series2 5 0 Above $1 million $100k - $999k Under $100k Size of GRFs

18 Institution Fund Name Est. Fund Commitment Projects ROI Western Michigan University Quasi-Revolving Fund 1980 $385, % Stanford University Energy Retrofit Program 1993 $2,000, % Harvard University Green Loan Fund 2001 $12,000, % Stanford University Boston University Iowa State University University of Colorado, Boulder Caltech Swarthmore College Whole Building Energy Retrofit Program Sustainability Revolving Loan Fund Live Green Revolving Loan Fund Energy and Climate Revolving Fund Caltech Energy Conservation Investment Program Renewing Fund for Resource Conservation 2004 $8,000, % 2008 $1,203, % 2008 $1,000, % 2008 $521, % 2009 $8,000, % 2009 $43,500 N/A 28.6% University of Denver Energy Reserve Fund 2009 $6,570, %

19 Fast Facts Total green revolving funds: 79 GRFs at private institutions: 42 GRFs at public institutions: 37 U.S. states represented: 31 GRF Size Smallest fund: $12,000 (Bucknell University) Largest fund: $13 million (University of Vermont) Median fund size: $400,000 Average fund size: $1.41 million Return on Investment Payback Minimum reported ROI: 20 percent Maximum reported ROI: 57 percent (Boston University) Median reported ROI: 28 percent Minimum reported average project payback: 1.6 years Maximum reported average project payback: 7.8 years Average reported average project payback: 4.4 years

20 Green Revolving Investment Tracking System (GRITS) LEADERS IN ENERGY EFFICIENCY FINANCING NETWORK

21

22 Set Up LEADERS IN ENERGY EFFICIENCY FINANCING NETWORK

23 setup LEADERS IN ENERGY EFFICIENCY FINANCING NETWORK

24 Pilot, pilot, pilot LEADERS IN ENERGY EFFICIENCY FINANCING NETWORK

25 Structure LEADERS IN ENERGY EFFICIENCY FINANCING NETWORK

26 Fund Design LEADERS IN ENERGY EFFICIENCY FINANCING NETWORK Dartmouth Green Revolving Loan Fund FOM Projects Community Fund

27 Admin Effort LEADERS IN ENERGY EFFICIENCY FINANCING NETWORK Dartmouth Green Revolving Loan Fund FOM Projects Community Fund

28 Tools and Implementation LEADERS IN ENERGY EFFICIENCY FINANCING NETWORK

29 Challenges LEADERS IN ENERGY EFFICIENCY FINANCING NETWORK Existing accounting structures Organizational entanglements The lighting speed of large organizations Sustainability Project bandwidth and priorities

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