1. EFFICIENCY FINANCE WORKSHOPS
Session 1. Project Financing and Project Opportunities
A Groundbreaking High-Performance
Building District in Downtown Seattle

4. Performance Targets
The 2030 Challenge for Planning
Existing Buildings
10% 50% reduction in
20% water
35% consumption
50%
+ 50% reduction in
Vehicle Miles
Traveled (VMT) for
auto and freight

5. STATEMENT OF ENERGY
PERFORMANCE
Seattle 2030 District Office Building
Building ID: 0000000
For 12-month Period Ending: Dec 31, 20121
Date SEP becomes ineligible: N/A Date SEP Generated: Jan 20, 2013
Facility
Seattle 2030 District Office Building
2030 District
Seattle, WA 98104
Year Built: 1987
Gross Floor Area (ft2): 350,000
Energy Performance Rating2 (1-100) 60
Site Energy Use Summary3
Electricity - Grid Purchase(kBtu) 22,866,666
Natural Gas - (kBtu)4 11,433,334
Total Energy (kBtu) 34,300,000
Energy Intensity5
Site (kBtu/ft2/yr) 98
Source (kBtu/ft2/yr) 252
Emissions (based on site energy use)
Greenhouse Gas Emissions (MtCO2e/year) 3,233
Electric Distribution Utility
Seattle City Light
National Average Comparison
National Average Site EUI 110
National Average Source EUI 283
% Difference from National Average Source EUI -11%
Building Type Office/Retail

6. S2030D Preliminary Assessment results
savings $$
operational savings 20% - $ 52,185
system upgrade savings 60% - $ 156,556
shell improvement 20% - $ 52,185
savings
water savings $ 9,736
cost $$
operational costs 4% - $ 65,232 - payback – 1.25 years
system upgrade costs 43% - $ 782,781 - payback – 5 years
shell improvement costs 53% - $ 974,476 - payback – 18.75 years
water improvement costs $ 68,152 - payback – 7 years

7. General Funding Guidelines
• Pre-approval required
SCL Commercial & Industrial kWh
– Bring your ideas, even before the project Savings Breakdown
has been clearly defined
– Site visits can help assess opportunities Other HVAC
19% 20%
• Incentive amount
– based on total energy saved and
Refrigeration
measure life 8%
– Funding capped at 70% of total cost
(SCL and PSE)
• Post-Installation
– Inspection to confirm equipment and Lighting
operation; may require trend-logs or 53%
metering
– As-built conditions used to calculate final
savings
- and -

8. Technical Assistance
• Site Visits
– Recommendations for energy conservation and
O&M measures
– Identify measures that qualify for financial
incentives
– Review/assess bids for funding
• Energy Analysis Assistance (SCL)
– Funding for in-depth energy analysis done by a
consultant or a design team
– Ranked recommendations by cost/benefit
analysis
• Lighting Design Lab Assistance
– Design assistance and mock-up services
– Education and training
- and - 8

9. Prescriptive Rebates (SCL and PSE)
• Fixed amount per unit
• Pre-authorization required
• Typical Rebates
– Occupancy sensors for lighting (SCL, PSE)
– Commercial kitchen equipment (SCL, PSE)
– IT server virtualization (SCL)
– PC power management and thin Client (SCL, PSE)
– HVAC equipment (PSE)
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10. Standard Incentives (SCL)
• For common measures in existing
buildings
– Lighting retrofits (fluorescents, exit signs, LEDs, etc)
– Lighting controls (central and OS)
– Chillers (air and water cooled)
– Air conditioners (Standard, CRAC, and PTAC)
– Heat pumps (air to air, hydronic, and PTHP)
– VSDs for Fans and Pumps
• Pre-formatted workbooks
– Estimates savings and incentives
– Can be filled in by contactors, customers or SCL
energy analyst, step by step instructions
– Contains all documents required, download via web
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11. Custom Incentives (SCL and PSE)
• Customized calculations for non-
routine measures
– Typically includes multiple systems
– May require pre-monitoring to determine
baseline
• Incentive based on savings and
measure life
• Numerous applications
– HVAC (controls, heat recovery, chillers
and cooling towers)
– Data centers (hot/cold isle)
– Special environments (labs, industrial,
etc)
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12. Potential Incentives – Sample Building
Savings % of Savings Savings Savings Savings
Total Use kBtu Measure kWh therms $ Utility Rebates
Electric Gas
Current Energy Use 34,300,000 6,701,836 114,333
Retro-
Operational Savings 8.8%
3,018,400 commissioning 884,642 $53,079
System Upgrade Savings 26.4% 9,055,200 Lighting 444,533 $102,243
HVAC 1,333,598 29,882 $306,728 $149,411
Shell Improvement Savings 8.8% 3,018,400 Shell 592,710 10,172 $59,271 $50,860
Total Savings 44.0% 15,092,000 3,255,484 40,054 $521,320 $200,271
• Lighting
– Prescriptive and standard incentives to upgrade lighting and lighting controls
• HVAC Systems and Controls
– Standard and/or custom incentives to upgrade equipment and controls
• Shell Measures
– Custom incentives for insulation, sealing, improved glazing, etc
• Retro Commissioning
– Enroll building in Retro commissioning program to capture operational savings
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13. Contact us to get Started
• Please remember to contact us BEFORE you start a project so
that we can discuss eligibility and help you with the rebate
process
• Call us: (206) 684-3800 Seattle City Light Energy
Advisors
• Email us:
SCLEnergyAdvisor@seattle.gov
• Visit us online:
www.seattle.gov/light/conserve
• Call us: (800) 562-1482 Puget Sound Energy
Advisors
• Visit us online:
http://www.pse.com/savingsandenergycenter/ForBusinesses/Pages/Co
mprehensive-Building-Tune-Up-Program.aspx
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16. Energy Services Contracting
A different mindset
Design-spec-build Integrated Delivery
• Segmentation • Single point of accountability
• 1st cost • Total Cost of Ownership
• Task/problem driven • Holistic view and deep dive on
• Diffused responsibility building systems
• Fix the root cause, not the
symptom
• Guaranteed project outcomes
• Cost
• Savings
• Take advantage of grants and
incentives
• CPW
• P4P/Utility rebates
• Low–cost financing

17. Optimizing the Capital Stack
Utility
Rebates
Cash 25% 10%
Incentives
15%
Debt 50%

18. Energy Services Contracting Financing
• ESCO finance
• ESCO Brokerage
• See handout for cash flows of model building at commercial rates
• Property Assessed Clean Energy (Commercial PACE)
• Senior lien property tax assessment to fund efficiency measures
and/or renewable energy on private commercial property
• Concept in infancy, slowly gaining traction
• Not available in Washington State at this time
• Qualified Energy Conservation Bonds
• With enactment of King County’s Green Community Initiative,
private property owners will be able to access QECBs for energy
efficiency improvements
• QECBs enable rates of ~ 2.0%-3.0% and tenors up to 24 years
• See King County Green Community Initiative handout
Contact: Rachel Brombaugh, rachelb@mckinstry.com, (206) 832-8132

19. The Sustainable Energy Program:
Qualified Energy Conservation Bonds and Beyond…
Avi Jacobson
Senior Sustainable Energy Coordinator
Washington State Housing Finance Commission
avi.jacobson@wshfc.org
206-254-5359

20. The Sustainable Energy Program
• Introduction
• What are QECBs? How Do They Work?
• QECB Aggregation Efforts
• Green Communities Programs
• Sustainable Energy Trust
• Conclusion
• Questions

21. QECB Aggregation:
WSHFC as State QECB Clearinghouse
• Washington State:
o $67.8M Allocated across WA
o ~$32M Issued
o In conjunction with WA Department of
Commerce, have contacted all
jurisdictions with remaining QECB
Authority
o $27M reallocated to WSHFC, $13.5M+
issued, more promised so far…

22. What is a Green
Community Program?
Two Required Elements:
• Program Purpose
• Program goal must be to promote energy conservation,
energy efficiency or environmental conservation initiatives
related to energy consumption.
• General Public Use or Broad Public Availability
• Financing must involve either:
• Property available for general public use, or
• Loan or grant program broadly available to members
of the general public.

23. Financing Energy Efficiency Projects:
Presented by:
Dan Clarkson
Energy Efficiency Finance Corp.
dclarkson@eefinance.net
206-310-8733

24. Energy Efficiency Pays Off

25. Offer to Building Owner
• Energy Services Agreement (ESA)
• No upfront capital costs; preserve capital for other purposes
• Turnkey implementation by ESCO: engineering, equipment
procurement, installation, commissioning, services, savings
monitoring, savings guarantees
• Grant/incentive funds used for subordinated debt financing,
debt service reserve, & carbon reduction incentives
• Project paid through operating cost savings; breakeven
savings are guaranteed by ESCO
• Payments on utility bill reduces risk for investor

26. How it Works Seattle
City
Light
Utility
Incentives
Energy Services
Turnkey Agreement
Energy Project
Sub-
Loan Capital ESCO Customer
Solutions
CPW
Energy
supply
Incentive &
Reserve
Fund Retail Energy
Lock
Box Utility Steam &
EE project payments via ESA Payments
Escrow Services
Agreement

27. ECS Cashflow Model
1200000
1000000
Retrofit
22% Net Customer Savings
800000 Savings
ESA Payments
600000
400000
200000
Utility Costs
Cumulative Customer Savings
0
Year -3 Year -2 Year -1 Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10