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Public Private Partnerships as a Role to Lead the Energy Revolution
Ben TaubeBLT Sustainable Energy
October 2013
georgiatransitconnector.org
www.AtlantaBBC.com2
• National competition initiated by US Department of Energy
• Started in June 2011 with 3 pilot cities: Los Angeles, Seattle and Atlanta
• Mayor Reed launched program locally in November 2011
• Now 36 Community Partners (cities, states, school districts) representing 2 billion square feet
Atlanta Better Buildings Challenge Background
georgiatransitconnector.org
www.AtlantaBBC.com3
Atlanta’s Goal:To engage the local community to reduce energy and water consumption by at least 20% in participating buildings across Atlanta’s central business district by 2020 and become one of the country’s top sustainable cities.
Atlanta Better Buildings Challenge Background
georgiatransitconnector.org
www.AtlantaBBC.com4
Atlanta Better Buildings ChallengeWestside TAD Grant Program
$8 million of Westside TAD Tax Increment for energy audits and project implementation for ABBC Participants
• RFP/RFQ Process completed in July• 4 Buildings awarded Investment-Grade
Energy Audits (IGA)• 2 Service Providers selected to perform
IGAs• After IGAs are completed, participants can
apply for retrofit implementation funding (up to 40% of project cost)
• Property Assessed Clean Energy (PACE)
• Utility On-Bill Finance and Pay Integration
• Energy Service Agreements & Securitization
• State & Federal Innovations
• MLPs, REITS, Venture Capital
• Finance Integration Platforms
• Energy Efficiency Insurance
• Deep Retrofit Value Methodologies
EE Finance Innovation
Growing Model
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LOCAL GOVERNMENT:Form District Under State
PACE Legislation
LOCAL TRADES:Utilize the Fund to
Market Projects
PROPERTY OWNERS:Access the Fund to
Finance Projects
Form a Public Private Partnership
What are the mechanics of PACE?
Property Owners:• Voluntary to participate • Utility bills decrease due to energy and water savings • Little or no upfront costs for upgrades • Payments are low and fixed
Local Governments:• Elect to participate • Promotion of increased energy and water capacity to prospective
employers • No risk to general fund • Substantial progress in achieving water and energy consumption
reduction goals
© 2011 Ygrene Energy Fund All Rights Reserved
PACE Case Studies
City Program Type Projects Funding Notes
Palm Desert Energy Independence Program (CA)
PACE; Residential & Commercial
220 (Res = 216, Comm = 4)
$7.5M 8.4% job growth in construction trades
ClimateSmart – Boulder County (CO)
PACE; Residential
598 $20M Launch 2009; 126 short-term jobs; $125k savings for residents in 1st year
Sonoma County Energy Independence Program (CA)
PACE; Residential & Commercial
1,329 (Res = 1,290, Comm = 39)
$42M 5.3 MW; 3100 mtCO2; 54 job years
Long Island Green Homes – Town of Babylon (NY)
PACE; Residential
678 $5.6M Approx. 30 new full-time direct jobs (verified)
Berkeley PACE; Residential
13 projects completed
$336,552(7 ¾% interest)
Launched 11/5/089 mi.—40 App’s
Key Points of PACE Programs• Property Assessed Clean Energy Program funds energy efficient upgrades, water
efficiency, and renewables in commercial buildings and residential homes • Provides owners with a way to fund 100% energy efficient upgrades in buildings
with no upfront costs and savings will outpace the cost of implementation• Up to 10% of fair market value of property is available for energy and water
retrofits• No credit rating credit on the ownership but based on the value of the building as
collateral• Can be amortized up to 20 years• Funding assessment for the energy or water project stays with the property and
therefore does not have to be settled sold upon the sale• Off balance sheet financing since the repayment is through an annual payment via
the property tax bill
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• $5,700,000 On-Bill Financing Program
– Started in 2010 with $700,000 GEFA loan
– Expanded in 2012 using cash reserves
• Extremely Effective Growth & Retention Tool
– Available to participating Members’ credit-worthy residential homeowners where natural gas is available
– For the purchase & installation of ENERGY STAR gas appliances
– Maximum loan amount: $5,000
– Maximum term: 60 months
– Interest rate: 0%
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Residential On-Bill Financing Program
05
101520253035404550
Number of Loans Originated 2010-11
$-
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
Value of Loans Originated 2010-11
Save and Sustain Program
Georgia Green Loans was awarded a statewide contract from the Georgia Environmental Finance Authority (GEFA) to help Georgia’s small businesses reduce their energy bills and improve sustainability by:
1. Paying the majority of costs for energy audits;2. Assisting with energy-related rebate programs and tax incentives;3. Providing low-interest loans for improving energy-efficiency thus reducing operating expenses.
With the expertise of Georgia Green Loans and our energy audit partners, we create a triple-bottom-line value for Georgia small businesses. Our program will:
1. Increase Profitsa. Reduce operating expenses by cutting utility costsb. Grow revenues through an improved company image
that attracts environmentally-conscious customers2. Empower People
a. Improve employee satisfaction with a safe, healthy, efficient and eco-friendly work environment3. Protect Our Planet
a. Take less from the Earth and do less damage to the Earth
Southeast – Scaling Municipal Partnerships
The Evaporcool solution combines multiple proprietary technologies.
Electronic and ActiveWater Conditioning
Precise Sensing and Control Optimal evaporationwater conservation
Performance & PersistenceDevice-Cloud M&V
Diagnostics & Fault DetectionAlerting & Reporting
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Utility Benefits• High Benefit/Cost Ratio, TRC 2.0 and greater• 15 Year asset life• Persistent HVAC Hot/Dry Climate Energy Efficiency Measure• Large Market - Existing Buildings, Commercial & Industrial • Reduces Coincident Summer Peak Demand• Capacity (demand reduction) improves as temperatures get hotter• Geo-targeting to relieve congested feeders• Highly scalable: 100’s of MW of opportunity
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LEAP-VA Mission
The mission of the Local Energy Alliance
Program is to lead the effort to retrofit
buildings with energy efficient technologies.
Our overarching goals include cost savings,
job creation, energy self-reliance, and local
economic development.
Outcomes of LEAP’s Work
10,000+ homeowners participating in contests, in home evaluations, etc.
1400 residential upgrades between two regions
15 commercial upgrades
Low income multifamily 800+ units (projected)
Outcomes of LEAP’s Work
2010: Year LEAP launched 2,000: Number of home energy evaluations
(“audits”) completed 1,215: Number of home energy retrofits
completed 34: Percentage of all retrofits in SEEA’s 13-city
consortium completed by LEAP $700,000: Savings for LEAP clients annually $13,000,000: Revenues to Virginia contractors
Local Energy Alliance Program (LEAP)
Charlottesville Area Power Plant
Contact: Ben TaubeBLT Sustainable Energy, Inc.Atlanta, [email protected] 931 1518