Erik caldwell clean generation program pp 04162010
1. The City of San Diego’s
Clean Generation Program
April 16, 2010
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2. Clean Generation Program
Property Assessed Clean Energy Financing
(PACE)
Purpose: Allows property owners to finance
renewable energy and energy efficiency
improvements through loans that would be
repaid as an item on the property owner's
property tax bill.
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3. The Benefits
• Loan made to property
• Transferable on sale
• Competitive 20 year rate
• Repayment via property tax bill
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4. Why?
• Job / Sector Development
– Increase demand for local cleantech products and
services
• Leadership
– Municipal leadership is required
– Positive cash flow for participants
– Low cost / low risk to the City
• Environment
– GHG reduction
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5. Clean Generation Program
Selected Team
Renewable Funding, LLC.
• Short term (Gap Financing)
• Core administrative services
California Center for Sustainable Energy (CCSE)
• Administrative services
• CSI integration (State of California Solar Incentive
Program)
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6. Clean Generation Program
Overview
Funding:
• 20 million dollars with potential for accessing
additional funds
• Fully loaded APR = 8.75% (Estimated)
• Duration of Loan up to 20 years
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7. Clean Generation Program
Eligible Measures
• Energy Efficiency Retrofits • Renewable Energy Fixtures
• Insulation • Solar
• Heating and Cooling • Wind
Systems • Fuel Cells
• A/C retrofits • Water Efficiency Fixtures
• Whole House Fan • Low flow fixtures
• Water heaters • Reclaimed Water
• Pool Pumps Systems
• Water Efficient Irrigation
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8. Micro-Bond Process
Property Owner Administrator
1 - Submit Application
Includes Project Details Package
• Verify eligibility
2 - Receive Notice to Proceed
Includes Funding Reservation
3 - Install Project
4 - Submit Funding Request
Includes Verification Documents
• Verify project compliance
• Generate contract docs
5 - Receive Assessment Contract Documents
6 - Submit Assessment Contract Package • Place lien
• Issue bond
7 - Receive Payment • Remit payment
County 8 - Pay Back via Property Taxes
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9. Participation Options
• Energy efficiency requirements
• Short term goal
– Educate and encourage
• Long-term goal
– Serve as a force for market transformation
• Two Phase EE Implementation
– Phase I: Thru December 2010
– Phase II: Starts 2011
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10. Prerequisites for all properties
• Items that must be replaced:
– Central Air Conditioners (SEER ≤ 7)
– Single Speed Pool Pumps
• Replaced with:
– Central Air Conditioners (SEER ≥ 13)
– Variable Speed Pool Pumps
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11. Energy Efficiency Prerequisites
• HERS or equivalent audit
• May bypass audit requirement if you use a BPI
certified contractor
• Must install fixtures that are pre-approved by
the program administrator
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12. Renewable Energy Prerequisites
• Home Improvement Path
– Phase I
• HERS audit
• Must install fixtures that are pre-approved by the program
administrator
• Limited system size (70% of load or 130% of baseline)
– Phase II
• HERS audit
• Participation in prescriptive track of Whole Home Retrofit
program or HomeStar Silver
• BPI Certified contractor required
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13. Renewable Energy Prerequisites
• Home Performance Path
– Phase I
• HERS audit (Test out: with 20% reduction or HERS II ≤ 100)
• Optional participation in either the performance track of the
Whole Home Retrofit Program, or HomeStar Gold
– Phase II
• HERS audit (Test out: with 20% reduction or HERS II ≤ 100)
• Required participation in either the performance track of the
Whole Home Retrofit Program, or HomeStar Gold
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14. Renewable Energy Prerequisites
• Already Efficient Homes
– Phase I & II
• HERS audit (HERS II ≤ 100) or Title 24 2005 / 2008
report
• Demonstrate historical annual consumption ≤ 130% of
baseline (Tier 1-2)
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15. Clean Generation Program
Program Design
Program Eligibility:
• Allocation: First come first serve
• Property must reside within the City of San Diego
• Multifamily - four units or less
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16. Clean Generation Program
Program Design
• Underwriting Criteria
– Ownership: Property owner must initiate and sign
application
– Property Tax Payment / Title History:
• Must have a good payment history
• No delinquencies in the past 3 years
• No involuntary liens may be on property
– Loan to Value Ratio, 10:1 is suggested ratio
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17. Clean Generation Program
How will people use the program?
• Arguably better financing options exist for solar PV
• Ideal for property owners who:
• Can’t get a home equity line of credit
• Are considering a move in the near future
• Are considering financing whole home retrofits that
include both EE and renewable energy
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18. Sample Costs
Financed Project Costs: $24,000
Solar / Energy Efficiency Package
• Term: 20 Years
• Fixed APR: 8.74% (Estimated)
• Annual Payment: $2,615
• Application fee: $300
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19. Clean Generation Program
Timeline
• April - City Council
– Public hearing on district formation
– Approval of resolution of intent
– Ordinance levying special tax approved
– Approval of administrative agreement
• May- City Council
– 2nd reading of the ordinance levying special tax approved
– Hold Public Election
• June– Program Goes Live
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