Clean Energy Finance and Investment Authority Agenda Who is CEFIA What is CPACE The CPACE Advantage CEFIAs Role in Designing CPACE The CPACE Process 2 3 Energy Challenge in Connecticut ID: 663671
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Slide1
C-PACE:A financing tool for building owners
Clean Energy Finance and Investment AuthoritySlide2
Agenda
Who is CEFIA?
What is C-PACE?
The C-PACE AdvantageCEFIA’s Role in Designing C-PACEThe C-PACE Process
2Slide3
3
Energy Challenge in ConnecticutSlide4
Who is CEFIA?
Support the Governor’s and legislature’s energy strategy to achieve cleaner, cheaper and more reliable sources of energy while creating jobs and supporting local economic development
4Slide5
Agenda
Who is CEFIA?
What is C-PACE?
The C-PACE AdvantageCEFIA’s Role in Designing C-PACEThe C-PACE Process
5Slide6
Property Assessed Clean Energy
An innovative financing structure that enables
commercial, industrial, and multi-family
property owners to access financing for qualified energy upgrades and repay through a benefit assessment on their property tax.
6Slide7
CRE owners face barriers to upgrades
7Slide8
C-PACE Addresses Key Barriers
Near term plan to sell?
Lack of funding?
Cannot assume more debt?
Insufficient payback/ROI?
Split incentives?
Uncertain savings/technical expertise?
Tax obligation fixed to property
100% upfront, 20 year financing
Assessments may qualify as OPEX
Positive cash flow in year 1
Assessment/savings pass to tenants
Technical underwriting / SIR>1
8Slide9
Connecticut Special Session Public Act 12-2 (June 2012)
Commercial, industrial & multi-family
property
Requires the consent of the existing mortgage lenderRequires SIR>1; permanently affixed
Enables municipalities to
opt-in Enables CEFIA to administer a statewide program9Slide10
C-PACE Advantage to other stakeholders
10Slide11
Agenda
Who is CEFIA?
What is C-PACE?
The C-PACE AdvantageCEFIA’s Role in Designing C-PACEThe C-PACE Process
11Slide12
CEFIA’s Role in C-PACE
12Slide13
Municipalities Opted into C-PACE
13
Ansonia
AvonBeacon FallsBerlinBethelBloomfieldBranford
Bridgeport
BrookfieldCanaanCanton ChesterClintonCoventryDanbury
DarienDurhamEast Granby
East Haddam
Stamford
Stonington
Stratford
Suffield
Tolland
Torrington
Trumbull
Vernon
Waterbury
Waterford
Watertown
West Hartford
West Haven
Westbrook
Westport
Wethersfield
Wilton
Windham
Windsor
Windsor LocksNew HavenNew LondonNew MilfordNewtownNorth BranfordNorth CanaanNorwalkNorwichOld SaybrookPlainvillePortlandPutnamRocky HillSeymourSharonSimsburySouthburySouthingtonSpragueStaffordEast HamptonEast HartfordEast WindsorEnfieldFairfieldFarmington
Glastonbury
Granby
Greenwich
Groton
Hamden
Hartford
Killingworth
Manchester
Mansfield
Meriden
Middletown
Milford
Montville
New BritainSlide14
Municipalities Opted into C-PACE
80% C&I Market
14Slide15
How Municipalities Opt into C-PACE
Hartford
West Hartford
BridgeportNorwalkSimsburyStamfordStratfordSouthbury
A
written agreement, as approved by the municipality’s legislative body, pursuant to which the municipality has agreed to assess, collect, remit and assign, benefit assessments to the Authority in return for energy improvements for benefited property owners within the municipality and for costs reasonably incurred by the municipality in performing such duties.
15Slide16
How Municipalities Opt into C-PACE
Hartford
West Hartford
BridgeportNorwalkSimsburyStamfordStratfordSouthbury
Role
of Municipalities:Placing of Caveat on Land RecordsLevy of Benefit AssessmentContinuation, Recording and Release of LienAssignment of Benefit Assessment Lien
Billing and Collection;
Payment
to
CEFIA
Role
of CEFIA:
Design program
& financing requirements
Determine
the estimated benefit assessment and provide written notice of the estimated benefit assessment to the
Municipality
Compensate municipality for costs incurred
16Slide17
Customers Apply Into C-PACE
Hartford
West Hartford
BridgeportNorwalkSimsburyStamfordStratfordSouthbury
17Slide18
C-PACE Partners do Technical Underwriting
Hartford
West Hartford
BridgeportNorwalkSimsburyStamfordStratfordSouthbury
18Slide19
Determine project eligibility
Anything that saves energy from baseline
High
efficiency lightingHVAC upgrades New automated building and HVAC controlsVariable speed drives (VSDs) on motors fans and pumps High efficiency chillers, boilers, and furnacesHigh efficiency hot water heating systems
Hartford
West HartfordBridgeportNorwalkSimsburyStamfordStratford
Southbury
…
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
19Slide20
CEFIA Sources Capital
Hartford
West Hartford
BridgeportNorwalkSimsburyStamfordStratfordSouthbury
Construction
and Term Financing from CEFIACEFIA authorized $40M short term facility for construction and term
financingSells down transaction through bid process
Qualified Capital Providers
CEFIA qualified 14 capital providers through a RFI.
Owner Arranged Financing
Property owner is free to choose their capital provider from the private market. There is no government financing required.
20Slide21
M&V: Data Management Platform
21Slide22
The C-PACE Process
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.com3. Third party review of technical and financial details
22Slide23
The C-PACE Process
4.
C-PACE alerts
municipality; lien is placed on property5. CEFIA offers 100% upfront financing to owner6.Project commences
23Slide24
The C-PACE Process
7.
Owner remits payment to municipality as benefit assessment charge
8. Municipality remits PACE assessment to CEFIA9. CEFIA “sells down” transaction to capital provider to replenish funds
24Slide25
Case Study: Solar and Lighting UpgradeNorwalk Shopping Center
Hartford
West Hartford
BridgeportNorwalkSimsburyStamfordStratfordSouthbury
Project
$550,000 exterior
LED lighting
upgrade and solar
parking
canopy.
Financing
$185,000 of lighting upgrade financed through 13 year C-PACE assessment. CEFIA providing construction financing.
$365,000 solar
parking canopy
received a ZREC
Savings of $55,000 plus 30%
ITC
Impact
741k
kBTUs
saved
Produces 5.8M kWh in clean energySlide26
Case Study: Energy Efficiency Upgrade 855 Main Street Bridgeport
Hartford
West Hartford
BridgeportNorwalkSimsburyStamfordStratfordSouthbury
Project
$1,990,000
energy
efficiency measures, ranging from the installation of variable frequency drives to chiller replacements to new energy efficient windows to new cooling towers.
Financing
S
ave
owners $241k per year
versus
$166k in annual C-PACE assessment. Net savings of $80k
.
Impact
133M
kBTUs
saved over life of projectSlide27
Case Study: Boiler ReplacementBushnell Center for the Performing Arts
Hartford
West Hartford
BridgeportNorwalkSimsburyStamfordStratfordSouthbury
Project
$650,000 boiler replacement
Financing
$384,000 of replacement financed through 20 year C-PACE assessment.
$250,000 covered with grant from Department of Economic and Community Development.
Impact
Annual savings
of
$48,000Slide28
Case Study: Energy Efficiency Upgrade in Simsbury
Hartford
West Hartford
BridgeportNorwalkSimsburyStamfordStratfordSouthbury
Project
$675,000 energy efficiency upgrade, including
Installation of Air Leakage Improvements
High
Efficiency lights
Occupancy
Sensors
and
Upgraded Energy Management System
New
Rooftop Units
Financing
Annual savings $61,000
Impact
18M
kBTU
savedSlide29
Case Study: Solar and Energy Efficiency Upgrade in Middletown
Hartford
West Hartford
BridgeportNorwalkSimsburyStamfordStratfordSouthbury
Project
$
2,535,766
including
the
installation of air units,
variable
frequency drives,
high
efficiency lights,
occupancy
sensors,
air
leakage improvements, an upgraded energy management system,
and
a 260 kW ground-mounted photovoltaic system.
Financing
Energy savings of $224,272 annually
I
mpact
51M
kBTUs
saved8.5M kWh clean energy producedSlide30
Case Study: Solar Project in Hartford
Hartford
West Hartford
BridgeportNorwalkSimsburyStamfordStratfordSouthbury
Project
$
145,000 solar installation
Financing
ZREC award of $164.22 /
MWh
from CL&P
,
With ZREC and energy savings, owner expected to see revenue of $21,385 per year
I
mpact
1.3M kWh clean
energy producedSlide31
Case Study: Solar Project in Hartford
Hartford
West Hartford
BridgeportNorwalkSimsburyStamfordStratfordSouthbury
Project
$
325,000 solar installation
Financing
ZREC award of $164.22 /
MWh
from CL&P
,
With ZREC and energy savings, owner expected to see revenue of $49,916 per year
I
mpact
2,8M kWh clean
energy producedSlide32
C-PACE & Clean Energy Communities ProgramSlide33
C-PACE & Renewable Requirement
Municipal Commitment
Opting into C-PACE earns
10% (nearly 2/3 of current requirement and 1/2 of 2018 requirement)Signed agreement with CEFIAOutreach OpportunitiesC-PACE Outreach campaigns earn 1-5% (depends on scope)Submit report detailing outreach efforts
10%Slide34
C-PACE Outreach Campaigns
B2B Breakfast Meeting
Partner with Town, Economic Development, Chamber of Commerce
Invite large commercial property ownersPostcard MailersSlide35
C-PACE & CEC Points
Each completed C-PACE project = 20 points
Each C-PACE application = 5 points
Participation in Energy Efficiency programs also earn points on EE Track
542 Westport Ave., Norwalk
Bushnell Theater, Hartford
InSports
, TrumbullSlide36
For More Information on C-PACE (
www.c-pace.com
):
Jessica Bailey, Director C-PACE, CEFIA860.257.2888Jessica.Bailey@ctcleanenergy.comWill McCalpin, Project Assistant, Commercial & Industrial Programs, CEFIA 860.257.2176Will.McAlpin@ctcleanenergy.com
For More Information on Clean Energy Communities (
www.EnergizeCT.com/communities):Bob Wall, Associate Director, Outreach, CEFIA860.257.2354Bob.Wall@ctcleanenergy.com