August 5, 2010 presentation to Green Energy Ohio, Central Ohio networking group

1. PACE Financing
Legislative Update
Renewable Concepts & Design, LLC
August 2010

2. Overview
2
Rapid Nationwide Adoption of PACE Districts
October 2009 – Whitehouse led interagency working group
HUD, NEC, CEQ, OMB, DOE, Treasury
May 2010 – Release of DOE/ARRA Guidelines and Funds for PACE
programs
Case Study
July 6th, 2010 – Regulators Block State Programs – Fannie Mae, Freddie
Mac, Office of Comptroller of Currency (OCC)
Current Litigation
Legislation
Action
Renewable Concepts & Design, LLC

3. Property Assessed Clean Energy (PACE)
www.dsireusa.org / July 2010
ME: 2010
MN: 2010
NH: 2010
NY: 2009
OR: 2009 VT: 2009
WI: 2009
NV: 2009 OH: 2009 MD: 2009
IL: 2009
CO: 2008
DC DC: 2010
CA: 2008
VA: 2009
MO: 2010
NC: 2009
NM: 2009 OK: 2009
GA: 2010
TX: 2009
LA: 2009
23 states + DC
authorize PACE
FL: 2010 (22 states have
passed
legislation and
HI: Existing
Authority* HI permits it
based on
PACE financing authorized existing law)

4. US DOE Guidelines for PACE
4
Guidelines released on May 7, 2010
Expected Savings to Investment Ratio > 1.0
Term of Assessment should not exceed the useful life
of the improvement
Mortgage Holder receives notification when liens
are placed
PACE lien non-acceleration upon property owner’s
default
Renewable Concepts & Design, LLC

5. US DOE Guidelines for PACE
5
Continued
Assessment should be appropriately sized –
improvement value should not exceed 10% of total
property value
Quality Assurance and Anti-Fraud Measurements
Rebates and Tax Credits
Participant Education
Debt Service Reserve Fund
Data Collection – Performance Monitoring
Renewable Concepts & Design, LLC

6. Sonoma County Energy Independence Program
(SCEIP) – Case Study
6
SCEIP is our nation’s largest PACE program
Operations commenced March 25, 2009
Initial available project capital $100 Million
No General Fund contributions
Cost neutral to County and City governments
Interest rate spread over all program costs
Sonoma County’s SCEIP Participants have a LOW
delinquency rate
Sonoma’s average tax delinquency rate is 3%
SCEIP Participants delinquency rate is 1.2%
Renewable Concepts & Design, LLC

7. SCEIP Case Study
7
SCEIP operations through June 30, 2010
Applications total 1,671
Applications approved 1,292
Projects complete and funded 967
Total $ funded $30,372,278
Projects in queue 347
Commercial projects 22
Projects on hold due to FHFA 10
Projects withdrawn due to FHFA 6
Renewable Concepts & Design, LLC

8. SCEIP Case Study
8
Additional Benefits of PACE:
330 new and maintained jobs per ARRA standards
7.5% increase in construction jobs per State EDD statistics
3 Mega Watts of new clean energy generation – enough
for 800 homes
1900 tons of carbon reduction
74% increase in retail sales for energy efficiency products
per Home Depot
Includes “cool roof”, fuel cell, and other innovative projects
Renewable Concepts & Design, LLC

9. July 6, 2010 Regulators Block PACE financing
9
FHFA
Fannie Mae
Freddie Mac
OCC
FDIC
Renewable Concepts & Design, LLC

10. Issues brought forth:
10
States’ rights and legal precedent
Ignored Safety and Soundness Guidelines
established by White House & DOE
Treats PACE like loan vs. assessment
Questions Senior Lien Status
Claims size and duration exceed typical assessments
Questions “community benefit”
Results in Red-lining any property in a PACE district
Commercial PACE participation also scrutinized
Renewable Concepts & Design, LLC

11. Litigation
11
State of California
Filed suit July 14, 2010
California Energy Commission took action on July 28,
2010 to vacate $30 million ARRA grant funding for
PACE programs which would have leveraged $370
million in projects.
California PUC warned that the FHFA’s actions could
jeopardize California’s $3.8 Billion energy efficiency
program.
City of Babylon, New York
Filed suit July 16, 2010 Renewable Concepts & Design, LLC

12. Current Legislation
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PACE Assessment Protection Act of 2010
Legislation would require that the underwriting standards of Fannie
Mae and Freddie Mac mimic the USDOE guidelines for PACE
H.R. 5766 – Introduced by Rep. Mike Thompson, cosponsored by 44
other members
Committee on Financial Services
Ohio Committee Members – Charles Wilson, Mary Jo Kilroy, Steve Driehaus
http://www.govtrack.us/congress/bill.xpd?bill=h111-5766
S. 3642 – Introduced by Sen. Barbara Boxer; cosponsored by Sen.
Bennett, Sen. Merkley, Sen. Begich, Sen. Udall, and Sen. Gillibrand
Banking, Housing & Urban Affairs committee
Ohio Committee Member – Sherrod Brown
http://www.govtrack.us/congress/bill.xpd?bill=s111-3642
Renewable Concepts & Design, LLC

13. For more information:
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www.pacenow.org
www.votesolar.org
www.icleiusa.org
www.renewableconcepts.net
Renewable Concepts & Design, LLC

14. Renewable Concepts & Design, LLC
14
Thank you for your time and interest.
Mary Cunnyngham
mary@renewableconcepts.net
614-571-4918
Russ Meeker
russ@renewableconcepts.net
614-638-5641
Renewable Concepts & Design, LLC