The City of San Diego is launching a Clean Generation Program to allow property owners to finance renewable energy and energy efficiency upgrades through loans repaid via their property tax bills. The program will be administered by Renewable Funding and the California Center for Sustainable Energy. It offers $20 million in funding at a competitive 8.75% APR over 20 years. Eligible upgrades include solar, energy efficient appliances and insulation. The program aims to create jobs, demonstrate leadership in sustainability and reduce greenhouse gas emissions.

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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20. Clean Generation Program
Questions?
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