Innovations in Energy Efficiency Implementation & Finance: By Jeffrey Eckel, President and CEO, Hannon Armstrong

1. Innovations in Energy Efficiency Implementation and Finance Jeffrey Eckel President and CEO HANNON ARMSTRONG

2. Hannon Armstrong Experience Transactions across the United States Hannon Armstrong Capital, LLC is a 31-year-old, Annapolis, Maryland based investment and merchant bank focused on providing financing for energy and infrastructure investments in the United States. Locations of representative transactions financed by Hannon Armstrong

3. State & Local (S&L) is the Oldest of the Financed EE Markets Balance sheet concerns of T-E Obligors is giving rise to the Service Contract -- at a higher cost of capital Millions $/Year The original innovation in EE Finance was the Tax-Exempt Lease

4. Federal Market has the Greatest Scalability Potential If and When Congress expands ESPC to include Mobile Assets, the Federal Market Will grow ten-fold Millions $/Year Federal ESPC Grew to a $500m market when securitization vehicles like our Hannie Mae commenced.

5. The Commercial Market Remains a Challenging Market to Achieve Scale Finance Models PACE remains the best way to solve Security Interest issues…if only it were possible On-Bill financing would solve many of the Security Interest Issues. Hannon is pursuing Unsecured portfolio models for Commercial Office Buildings. It has promise but not scale. Millions $/Year

6. Hannon Armstrong Capital, L.L.C. 1997 Annapolis Exchange Suite 520 Annapolis, MD 21401 410.571.9860 Hannonarmstrong.com