PacificWest energy Solutions, Inc.Energy Efficiency and Conservation StrategiesPatrick A. Weller, LEED APExecutive vice president

The American Recovery and Reinvestment Act

American recovery and reinvestment actOn February 17, 2009, President Obama signed into law the American Recovery and Reinvestment Act (ARRA) of 2009, H.R. 1. The spending and tax-cut plan is intended to help stabilize state budgets and spur economic growth. The stimulus package commits a total of $787 billion nationwide. California share (AS OF JULY 16, 2009) for Energy and Climate Programs: $1,587,212,344 ($1.6B) ENERGY PROGRAM APPROPRIATIONS (DIVISION A)Efficiency & Conservation Block Grant Program, State Energy Program, Smart Grid, EnergyWeatherization Assistance Program, Alternative Fueled Vehicles Program (Clean Cities), Energy Efficient Appliance Rebate Program & Energy Star® Recovery Funding… TAX INCENTIVE PROVISIONS (DIVISION B)Clean Renewable Energy Bonds, Long-term Extension and Modification of Renewable Energy Production Tax Credit, Tax Credits for Energy-Efficient Improvements to Existing Homes, Temporary Election to Claim the Investment Tax Credit in Lieu of the Production Tax Credit, Qualified Energy Conservation Bonds…

California Energy and climate Recovery ProgramsU.S. Dept. of Energy Office of Energy Efficiency and Renewable Energy Energy Efficiency and Conservation Block Grant - $302M for LC&CClean Cities ProgramCalifornia Energy CommissionEnergy Efficiency and Conservation Block Grant - $29.8M for SC&CState Energy Program (SEP) – $226MState Energy Efficient Appliance Rebate Program (SEEARP) – $35.2MCalifornia Department of Community Services and Development Weatherization Assistance Program – $185MBids directly through U.S. Dept. of EnergyDOE Competitive Financing Program

Energy efficiency and conservation strategiesTechnical Consulting ServicesStrategic PlanningInvestment Grade Audit ReportsEECBG ApplicationSolar Photovoltaic ConsultingAB 811 Program DevelopmentBudget Reduction ProgramsEnergy efficiency measures with short term paybacksPositive cash flow transactionsMeets CEC cost-effective /GC 4217 requirementsComprehensive EE/RE ProgramsLonger term paybacksEnergy and operational savingsRenewable and capital improvement measuresSustainable public building and community programsAlternative Project Funding Options

Comprehensive Energy and Environmental Programs for SC&CAN EECBG Case Study

Energy Efficiency and Conservation Block GrantDepartment of Energy, State and Local Grant Allocations (LC&C), CLOSE DATE: August 10, 2009 - $302MAttachment D: Energy Efficiency and Conservation StrategyGoals and ObjectivesImplementation PlanCollaborations with adjacent units of governmentsCommunications to state on the maximized use of fundsDescribe benefits beyond the EECBG funding periodDescribe auditing and monitoring for transparency and accountability.

Energy Efficiency and Conservation Block GrantPreliminary Guidelines for Small Cities and Counties, FORMULA-BASED GRANTS - $29.8M (60% of $49.6M to SC&C)265 small cities and 44 small counties eligible for this fundingEnergy Commission will issue a solicitation documentEligible applicants will apply to the Energy CommissionA sample funding award agreement is developed by SC or CGoverning Board DocumentationProjects will be screened for completeness and then evaluated for eligibility and technical accuracy onlyFunding Formula: Base Population Calculation with an Unemployment AdderProject Funding: EECBG, ARRA SEP, Energy Efficiency Loan Program Funding (3%), Incentives for Energy Efficiency and Renewables and Private Sector Funding (Tax-Exempt Municipal Lease) (4.5% ?!)

Performance contracting solutionsPOSITIVE CASH FLOW TRANSACTIONSA procurement methodology of financing a capital and operational improvement project within the constraints of City existing budgets. Project finance for facility improvements is paid for by guaranteed savings.Capital BudgetFacility Infrastructure UpgradeTechnology Infrastructure UpgradeOperational BudgetUtilityMaintenanceTechnologyCommunications

A procurement methodology of financing a capital and operational improvement project within the constraints of City existing budgets. Project finance for facility improvements is paid for by guaranteed savings.

Capital Budget

Facility Infrastructure Upgrade

Technology Infrastructure Upgrade

Operational Budget

Utility

Maintenance

Technology

Communications

EecbgProgram developmentPHASE 1 – STRATEGIC PLANNING (2 - 3 Weeks)PHASE 2 – PROJECT DEVELOPMENT (3 - 6 Weeks)PHASE 3 – PROJECT FINANCE (2Weeks)PHASE 4 – PROJECT DELIVERY (4 - 8 Weeks)

Basic project informationCustomer Authorization and Release FormsOne year of utility bills or online passwordUtility Representatives (Electricity, Water, Heating Fuel, Waste)Site Maps of All FacilitiesSquare Footage of All FacilitiesFacilities Access w/Key ContactsPrevious Energy AuditsNumber of Occupants & Operating Schedules

benchmarkingCourtesy NREL

Comprehensive energy and environmental programsCourtesy NREL

Pacificwest Energy and environmental programTechnical Consulting ServicesInvestment Grade Audit ReportSolar Photovoltaic ConsultingAB 811 Program DevelopmentEECBG ApplicationBudget Reduction ProgramComputer and Vending ControlsLighting retrofits and controls.Street lighting and traffic signal retrofits.Heating, ventilation and air conditioning (HVAC) modifications and controls.Automated energy management systems, motors, variable speed drives and pumps.Comprehensive EE/RE ProgramsBudget Reduction ProgramHeating, ventilation and air conditioning (HVAC) replacementsWeatherization (Window Replacements)Solar Photovoltaic System (50 kW)

Financial options and analysis (Pop: 20,000, UA Rate 11.5%)

Cost of delay

Traditional and Alternative Project Funding

Traditional Project funding sources

Traditional Transaction participants

New Sources of Project finance/tax monetization TAX INCENTIVE PROVISIONS (DIVISION B)Renewable Energy Electricity Production Tax Credit (PTC)Investment Tax Credit (ITC) in Place of the PTCGrants in Place of Tax CreditsBusiness ITC, Repeal of Limit with Subsidized FinancingBusiness ITC, Repeal of Credit CapsClean Renewable Energy Bonds (CREBs)Energy Conservation Bonds (ECBs)Labor Standards for Energy BondsEnergy Efficiency Tax CreditsEfficiency Improvements to Existing HomesEfficiency and Renewables Equipment, Credit LimitAdvanced Energy Manufacturing FacilityParity for Transportation Fringe BenefitsAlternative Fuels & Vehicles Tax CreditsAlternative Fuel Refueling Infrastructure Tax CreditINTERNAL FINANCINGGeneral FundsRevolving Funds UTILITY RESOURCESIncentives for Renewables and Efficiency PUBLIC RESOURCESMunicipal BondCREBsCEC Low Interest Loan PRIVATE RESOURCESPerformance ContractingTax-Exempt Municipal LeaseSolar Power Purchase Agreement NON PROFIT GRANT PROGRAMS ENERGY PROGRAM APPROPRIATIONS (DIVISION A)Weatherization Assistance ProgramState Energy ProgramEnergy Efficiency and Conservation Block Grant Program

TAX INCENTIVE PROVISIONS (DIVISION B)

Renewable Energy Electricity Production Tax Credit (PTC)

Investment Tax Credit (ITC) in Place of the PTC

Grants in Place of Tax Credits

Business ITC, Repeal of Limit with Subsidized Financing

Business ITC, Repeal of Credit Caps

Clean Renewable Energy Bonds (CREBs)

Energy Conservation Bonds (ECBs)

Labor Standards for Energy Bonds

Energy Efficiency Tax Credits

Efficiency Improvements to Existing Homes

Efficiency and Renewables Equipment, Credit Limit

Advanced Energy Manufacturing Facility

Parity for Transportation Fringe Benefits

Alternative Fuels & Vehicles Tax Credits

Alternative Fuel Refueling Infrastructure Tax Credit

Solar power purchase agreementsCourtesy : The Rahus Institute

strategic planning informationContact:Patrick A. Weller, LEED APDirect : (714) 310-9509Email: pweller@pacwestes.com Ask about PACIFICWEST’sDOE ESCO ServicesTechnical Consulting ServicesEngineeringConstruction ManagementProgram AdministrationCommunity and Behavioral Modification ProgramsAB811 ProgramsSchool District Programs

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