Kenneth Berlin's presentation at the PACE Energy Conference

1. How Important is Energy Efficiency? Coalition for Green Capital Kenneth Berlin, General Counsel (202) 371-7350 Kenneth.Berlin@Skadden.com) www.coalitionforgreencapital.com Presented at: PACE Energy Conference - Promoting Energy Efficiency in Commercial Buildings New York – June 1, 2011

5. The Context – CO2 Emissions by Sector and Source

10. Energy Efficiency – C02 Emissions in the Residential Sector

11. Energy Efficiency – Commercial Sector CO2 Reductions

13. Energy Efficiency Barriers *Financial transaction barriers and actual quality trade-offs are factored into the initial NPV-positive potential calculation as real costs. Source: McKinsey analysis

21. The Green Bank could create incentives for willing consumers or utilities to pay for retrofits….without up-front capital from the borrower 1. The Green Bank loans 100% of the cost of an energy efficiency project to a utility or other source at a low rate. 2. The utility disperses the funds to install energy efficiency measures in homes and small businesses, creating jobs in the local community. Residential property/ Small business Utility/Co-op Green Bank Energy Bill 5. After the loan is repaid, the consumer sees the full benefit of the efficiency measures, the utility has saved money and created local jobs, and the taxpayer has been repaid in full. 4. Through on-bill financing, a portion of the savings shows up on the consumer’s bill, and the rest is transferred to the utility, which uses the money to repay the initial loan from the Green Bank over an extended tenor. (For example, if there is a savings of $100/month, the consumer receives a $25 discount on the bill and the utility charges $75 for electricity that is not being provided in order to re-pay the loan). The utility will also have the right to place a lien on the property in order to obtain payment. 3. The owner of the residence/small business pays no up-front cost to have their building retrofitted, and sees a reduced energy bill.

24. Summary of New England Economic Impacts (Environment Northeast, Energy Efficiency: Engine of Economic Growth, Exec. Summary Oct. 2009)