Erik caldwell clean generation program pp 04162010


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Erik caldwell clean generation program pp 04162010

  1. 1. The City of San Diego’s Clean Generation Program<br />April 16, 2010<br />1<br />
  2. 2. Clean Generation Program Property Assessed Clean Energy Financing (PACE)<br />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.<br />2<br />
  3. 3. The Benefits<br />Loan made to property<br />Transferable on sale<br />Competitive 20 year rate<br />Repayment via property tax bill<br />3<br />
  4. 4. Why?<br />Job / Sector Development <br />Increase demand for localcleantech products and services <br />Leadership<br />Municipal leadership is required<br />Positive cash flow for participants<br />Low cost / low risk to the City<br />Environment <br />GHG reduction<br />4<br />
  5. 5. Clean Generation ProgramSelected Team<br />Renewable Funding, LLC.<br /><ul><li>Short term (Gap Financing)
  6. 6. Core administrative services</li></ul>California Center for Sustainable Energy (CCSE)<br /><ul><li>Administrative services
  7. 7. CSI integration (State of California Solar Incentive Program)</li></ul>5<br />
  8. 8. Clean Generation ProgramOverview<br />Funding: <br /><ul><li>20 million dollars with potential for accessing additional funds</li></ul>Fully loaded APR = 8.75% (Estimated) <br /><ul><li>Duration of Loan up to 20 years</li></ul>6<br />
  9. 9. Clean Generation ProgramEligible Measures<br />Energy Efficiency Retrofits<br /><ul><li>Insulation
  10. 10. Heating and Cooling Systems
  11. 11. A/C retrofits
  12. 12. Whole House Fan
  13. 13. Water heaters
  14. 14. Pool Pumps</li></ul>Renewable Energy Fixtures<br /><ul><li>Solar
  15. 15. Wind
  16. 16. Fuel Cells</li></ul>Water Efficiency Fixtures<br /><ul><li>Low flow fixtures
  17. 17. Reclaimed Water Systems
  18. 18. Water Efficient Irrigation</li></ul>7<br />
  19. 19. 8<br />Micro-Bond Process<br />Property Owner<br />Administrator<br />1 - Submit Application<br />Includes Project Details Package<br /><ul><li> Verify eligibility </li></ul>2 - Receive Notice to Proceed<br />Includes Funding Reservation<br />3 - Install Project<br />4 - Submit Funding Request<br />Includes Verification Documents<br /><ul><li> Verify project compliance
  20. 20. Generate contract docs</li></ul>5 - Receive Assessment Contract Documents<br /><ul><li> Place lien
  21. 21. Issue bond
  22. 22. Remit payment</li></ul>6 - Submit Assessment Contract Package<br />7 - Receive Payment<br />County<br />8 - Pay Back via Property Taxes<br />8<br />
  23. 23. Participation Options<br />Energy efficiency requirements <br />Short term goal<br />Educate and encourage<br />Long-term goal<br />Serve as a force for market transformation<br />Two Phase EE Implementation <br />Phase I: Thru December 2010<br />Phase II: Starts 2011 <br />9<br />
  24. 24. Prerequisites for all properties<br />Items that must be replaced:<br />Central Air Conditioners (SEER ≤ 7)<br />Single Speed Pool Pumps<br />Replaced with:<br />Central Air Conditioners (SEER ≥ 13)<br />Variable Speed Pool Pumps<br />10<br />
  25. 25. Energy Efficiency Prerequisites<br />HERS or equivalent audit <br />May bypass audit requirement if you use a BPI certified contractor<br />Must install fixtures that are pre-approved by the program administrator <br />11<br />
  26. 26. Renewable Energy Prerequisites<br />Home Improvement Path<br />Phase I<br />HERS audit<br />Must install fixtures that are pre-approved by the program administrator <br />Limited system size (70% of load or 130% of baseline)<br />Phase II<br />HERS audit<br />Participation in prescriptive track of Whole Home Retrofit program or HomeStar Silver<br />BPI Certified contractor required<br />12<br />
  27. 27. Renewable Energy Prerequisites<br />Home Performance Path<br />Phase I<br />HERS audit (Test out: with 20% reduction or HERS II ≤ 100)<br />Optional participation in either the performance track of the Whole Home Retrofit Program, or HomeStar Gold<br />Phase II<br />HERS audit (Test out: with 20% reduction or HERS II ≤ 100)<br />Required participation in either the performance track of the Whole Home Retrofit Program, or HomeStar Gold<br />13<br />
  28. 28. Renewable Energy Prerequisites<br />Already Efficient Homes<br />Phase I & II<br />HERS audit (HERS II ≤ 100) or Title 24 2005 / 2008 report<br />Demonstrate historical annual consumption ≤ 130% of baseline (Tier 1-2)<br />14<br />
  29. 29. 15<br />Clean Generation ProgramProgram Design<br />Program Eligibility: <br />Allocation: First come first serve<br />Property must reside within the City of San Diego<br />Multifamily - four units or less<br />
  30. 30. 16<br />Clean Generation ProgramProgram Design<br /><ul><li>Underwriting Criteria
  31. 31. Ownership: Property owner must initiate and sign application
  32. 32. Property Tax Payment / Title History:
  33. 33. Must have a good payment history
  34. 34. No delinquencies in the past 3 years
  35. 35. No involuntary liens may be on property
  36. 36. Loan to Value Ratio, 10:1 is suggested ratio</li></li></ul><li>17<br />Clean Generation ProgramHow will people use the program?<br /><ul><li>Arguably better financing options exist for solar PV
  37. 37. Ideal for property owners who:
  38. 38. Can’t get a home equity line of credit
  39. 39. Are considering a move in the near future
  40. 40. Are considering financing whole home retrofits that include both EE and renewable energy</li></li></ul><li>18<br />Sample Costs<br />Financed Project Costs: $24,000<br />Solar / Energy Efficiency Package<br /><ul><li>Term: 20 Years
  41. 41. Fixed APR: 8.74% (Estimated)
  42. 42. Annual Payment: $2,615
  43. 43. Application fee: $300</li></li></ul><li>19<br />Clean Generation ProgramTimeline<br /><ul><li>April - City Council
  44. 44. Public hearing on district formation
  45. 45. Approval of resolution of intent
  46. 46. Ordinance levying special tax approved
  47. 47. Approval of administrative agreement
  48. 48. May- City Council
  49. 49. 2nd reading of the ordinance levying special tax approved
  50. 50. Hold Public Election
  51. 51. June– Program Goes Live </li></li></ul><li>20<br />Clean Generation Program<br />Questions?<br />