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C-PACE: A financing tool for building owners C-PACE: A financing tool for building owners

C-PACE: A financing tool for building owners - PowerPoint Presentation

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C-PACE: A financing tool for building owners - PPT Presentation

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

hartford pace financing energy pace hartford energy financing west project cefia 000 bridgeportnorwalksimsburystamfordstratfordsouthbury efficiency amp assessment savings property clean

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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