CaliforniaFIRST is a pilot program in several California counties that provides property assessed clean energy (PACE) financing for energy efficiency and renewable energy projects. It administers the financing program for participating cities and counties. CaliforniaFIRST identifies eligible projects, chooses contractors, applies for financing, and repays the financing through assessments on property tax bills. The program helps meet climate goals, promotes local jobs, and requires no funding from city or county general funds. It has the potential to create 124 jobs and spur $10 million in investments.

1. CaliforniaFIRST Annie Henderson| April 16, 2010

2. CaliforniaFIRST: Pilot Partners

3. CaliforniaFIRST Pilot Alameda Fresno Kern Monterey Sacramento San Benito San Diego San Luis Obispo San Mateo Santa Clara Santa Cruz Solano Ventura Yolo

4. CaliforniaFIRST in SD County Unincorporated County Carlsbad Chula Vista Coronado Del Mar Encinitas Escondido La Mesa Lemon Grove Oceanside Poway Santee Solana Beach * City of San Diego will have a stand-alone PACE program

5. CaliforniaFIRST: Overview Creates financing district Provides complete admin Provides upfront capital through bond sales Identifies work & chooses contractor Applies for financing $$ Upfront $$ Repaid on tax bill City /County “ opts-in” Repays financing on property tax bill Repayment obligation transfers with ownership

6. Key Benefits for Cities & Counties Helps meet energy and climate goals Promotes local jobs Tax neutral and no exposure to General Fund

7. 124 jobs created with $10 million investment

8. Potential Program Reach

9. Contractor Qualifications Standard Appropriate State license Participation in State rebate programs Agreement to Code of Ethics Compliance with CEC HERSII requirement (as available and applicable) Under Development Energy Efficiency certification requirement will be dependent on State standards currently under development by HERCC, WHPP, Home Star, etc.

10. Integration of Programs

11. Main Points Loading Order 10% EE improvement required prior to financing for on-site renewable generation (does not include SWH) Emerging EE rebate program may increase requirement to 20% Multiple pathways to meet loading order Residential properties Specific underwriting criteria Commercial properties Process under development Financing available to RE and EE projects Water efficiency to follow

12. Participation Pathways BPI, HERSII, Equivalent Based on Rebate Requirements

13. Property Qualification

14. CaliforniaFIRST.org

15. Annie Henderson| annie@renewfund.com | (510) 451-7911 www.CaliforniaFIRST.org