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How to Save a Planet – On a Budget Brought to you by #GreenFinance Stimulus That Works: Public-Private Cooperation for a Greener Economy Renewable ROI: The Economic Case for Renewable Infrastructure Hour 2 (10:15 – 11:15 EST):

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Page 1: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

How to Save a Planet – On a Budget

Brought to you by

#GreenFinance

• Stimulus That Works: Public-Private Cooperation for a Greener Economy

• Renewable ROI: The Economic Case for Renewable Infrastructure

Hour 2 (10:15 – 11:15 EST):

Page 2: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

About this Webinar

• Submit your questions in the GotoWebinar presentation window

• Follow along and share your thoughts on Twitter at #GreenFinance

How you can share:

#GreenFinance

Page 3: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

About Our Speakers

#TECLive#GreenFinance

Jo Danko is CH2M HILL’s Global Director for Sustainable Solutions. Jo helps the firm develop goals, strategies, key performance indicators, and targets for sustainability and measures performance against those goals. Jo actively engages in educating employees and raising awareness of sustainability issues.

Andrew Carman is Head of Americas for the Project & Structured Finance Infrastructure,Cities and Industry team at Siemens Financial Services. Prior to this role, Mr. Carmanwas Senior Vice President and General Manager, responsible for SFS Inc.’s EquipmentFinance group.

Kirk H. Edelman is the president and CEO of Siemens Financial Services, responsible for leading Siemens’ commercial finance and leasing business across North America. Mr. Edelman previously served as SVP of the company’s Energy Finance business, and has more than 20 years of finance experience focusing on energy, natural resources and infrastructure finance.

Lane Burt is Technical Policy Director at the U.S. Green Building Council. A mechanical engineer by training, Lane brings extensive technical and political knowledge to USGBC's advocacy and policy shop, having helped draft legislation related to energy efficiency including provisions of the Recovery Act and the American Clean Energy and Security Act.

Dr. Thiemo Gropp is a co-founder of the DESERTEC Foundation. He has been following the development of renewable energies for many years. As an entrepreneur he has built and led several nationally as well as internationally successful technology companies. Dr. Gropp studied physics in Germany and the USA and has a PhD in biochemistry.

Page 4: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Financing Infrastructure - a Siemens Financial Services Perspective

Andrew Carman

Head of Americas, Project & Structured Finance Infrastructure & Cities and Industry

Page 5: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Under the roof of Financial Services we providean extensive portfolio of financial solutions

Financial ServicesCopyright © Siemens AG 2011. All rights reserved

Page 6: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Page 6

Increasing importance of financing in city-context

Budget constraints at cities with concurrently essential needs for action lead to high importance of private sector finance

Europe

Asia-Pacific

North and South America

Africa, Middle East, CIS

Source: SFS Paper, Sustainable Cities, 2011 Financial ServicesCopyright © Siemens AG 2011. All rights reserved

Page 7: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Page 7

Significant investment gap as a consequence

1) Funds that governments can allocate in the development of infrastructures2) Funds potentially required from the private sector, including equity and deptSource: BCG analysis

Investment gap2)

$20-25 trillion

Public funding1)

$15-20 trillion

Global infrastructure investment needs until 2030

$35-40 trillion

Including $7-8 trillion for transport infrastructure

Financial ServicesCopyright © Siemens AG 2011. All rights reserved

Page 8: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Thank you for your attention.

Page 9: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Financing Green Infrastructure

Joseph DankoSenior Vice PresidentOperations Director, Urban ProgramsCH2M HILL

Page 10: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

• More than 30,000 employees• US$7 billion in revenue• 100 percent owned by our employees• Performing work in more than 140 countries• Delivering extraordinary projects, including

– London 2012 Olympic and Paralympic Games– Panama Canal Expansion Program

CH2M HILL is a global leaderin full-service planning, consulting, design, design-build, operations, and program management services

CH2M HILL – Copyright 2011

Page 11: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

New Revenues

Financing & Financial

Management

Procurement Strategies

Optimized & Sustainable Financial Plan

Expenditures

User Fees & Fares

Other Revenues

Local, State & Federal

Taxes

Federal Grants

Existing Funding

CH2M HILL Model for a Sustainable Financial Plan

CAPEXCost of Public

Disruption

OPEX & Life Cycle Costs

Industrial Capacity

Development Opportunities

Other Revenues

New Grant Revenues Taxation

CH2M HILL – Copyright 2011

Page 12: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

• $1.4 billion,11-km-long project — Ontario’s single largest highway investment• P3 agreement will deliver design,

construction, finance, and long-term maintenance of the corridor• Includes recreational trails, green

space, and habitat protection• Incorporation of a Greenroads

certification requirement to ensure that sustainability is built into the entire process

Windsor Essex Parkway, Procured under a P3 Model

12

Client: Infrastructure Ontario and Ministry of Transportation OntarioLocation: Windsor, Ontario

CH2M HILL – Copyright 2011

Page 13: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

• Comprehensive “green” infrastructure program captures stormwater and reduces impacts of runoff to the combined sewer system

• More than 60 green infrastructure projects completed or under construction in 2011–66,000 sf green roof on Convention Center–Capture and reuse system at the Onondaga

County War Memorial Arena; “green” Ice Rink

Onondaga County Green Infrastructure Program

“Save the Rain” Program

13

Client: Onondaga CountyLocation: Syracuse, New York

Porous concrete parking surface at City Lot # 3, Syracuse, NY

CH2M HILL – Copyright 2011

Page 14: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

• Green Improvement Fund: offers grants to private property owners in the combined sewer districts

• Incentivizes green infrastructure on private property by funding cost gap between gray and green infrastructure improvements

• Private landowners enter contract with County to maintain green infrastructure

“Save the Rain” P3 Components

P3 Components

14

Client: Onondaga CountyLocation: Syracuse, New York

Porous Basketball Courts - Skiddy Park, Syracuse, NY

CH2M HILL – Copyright 2011

Page 15: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Blighted Site Redeveloped into Menomonee Valley Industrial Center & Community Park

Client: City of MilwaukeeLocation: Milwaukee, Wisconsin

Converted property blighted by more than 125 years of locomotive maintenance into a new industrial center rich in recreational, economic and natural assets

Redevelopment will bring up to 1,500 jobs Created more than $120 million in

recreational, aesthetic, and ecological value for the people of Milwaukee

Reused materials such as crushed concrete, glass, timber, and brick, avoiding landfill

Stormwater management creates habitat, returns diverse/beneficial species to area

Created new “green” recreational spaces

MVIC has won numerous awards, including the 2011 Innovation in Sustainable Civil Engineering Award from the American Society of Civil Engineers

CH2M HILL – Copyright 2011

Page 16: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Creative Financing was Critical to MVIC’s Success

• The City created a $16 million Tax Increment District to fund roads and infrastructure and to remediate environmental contamination

• Most new MVIC businesses have received New Market Tax Credit loans through the Milwaukee Economic Development Corp.

• $24 million was obtained through 20 local, state, and federal grants, and dozens of private donations

• Additional savings through value engineering, new-found revenue streams, and materials reuseCH2M HILL – Copyright 2011

Page 17: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Financing Clean Energy

Financial ServicesCopyright © Siemens AG 2011. All rights reserved

Financing Clean Energy

Kirk H. Edelman

CEO, Project & Structured Finance – Energy

Siemens Financial Services

Page 18: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

SFS

SFS partner(via SAP Financing)

Project-related presence

Siemens Financial Services GmbH

Products Asset Finance & Leasing Vendor Finance Structured Finance Asset-Based Lending

Asset Management Private Equity Treasury Solutions

Project & Equity Participations Project & Export Finance Industrial Insurance Solutions Private Finance Solutions

Financial ServicesCopyright © Siemens AG 2011. All rights reserved

Page 19: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Under the roof of Financial Services we providean extensive portfolio of financial solutions

Financial ServicesCopyright © Siemens AG 2011. All rights reserved

Page 20: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Siemens Financial Services Supports Windy Flats Wind Farm Project Expansion

Challenge Cannon Power Group, an existing Siemens

Energy, Inc. customer, sought funding options to expand its Windy Flats wind farm project in Washington state.

Siemens Financial Services (SFS) outlined a creative financing structure for the project’s expansion.

Financial ServicesCopyright © Siemens AG 2011. All rights reserved

Page 21: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Solution SFS provided a $178 million senior secured

credit facility to fund the Windy Flats project expansion.

The funds were used to expand the project with additional Siemens wind turbines and to recapitalize a portion of the existing credit facility.

Siemens Financial Services Supports Windy Flats Wind Farm Project Expansion

Financial ServicesCopyright © Siemens AG 2011. All rights reserved

Page 22: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Benefits Siemens performed as the single supplier for

both the equipment and funding for the project expansion.

Upon completion, Cannon’s wind farm projects will provide a combined total of 400 megawatts of power to homes in Southern California.

Siemens Financial Services Supports Windy Flats Wind Farm Project Expansion

Financial ServicesCopyright © Siemens AG 2011. All rights reserved

Page 23: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

Lean EfficiencyNov 30th, 2011 for the Energy Collective &

Sustainable Cities Collective

Lane Wesley Burt, P.E. Technical Policy Director

U.S. Green Building Council

Page 24: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

20032004

20042005

20052006

20062007

20072008

20082009

20092010

20100

50

100

150

200

250

300

350

400

450

500

Growth in LEED EB:O&M Certified SpaceCe

rtifie

d Fl

oor A

rea

(mill

ion

sqft

)

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Page 26: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green
Page 27: How to Save a Planet - On a Budget: Hour 2: Public Private Partnerships for Renewable Infrasture, and the ROI of Going Green

25 PROJECTS

50 PROJECTS

100 PROJECTS

$75,000

$90,000

$110,000

150,000 AVG. SF 300,000 AVG. SF

LEED VOLUME PROGRAM: COST SAVINGS VS. ONE-OFF

LEED VOLUME PROGRAM PROJECT BUNDLE PRICING

44% SAVINGS

66% SAVINGS

79% SAVINGS

70% SAVINGS

82% SAVINGS

89% SAVINGS

$75,000

$90,000

$110,000