erik caldwell clean generation program pp 04162010
DESCRIPTION
TRANSCRIPT
The City of San Diego’s
Clean Generation Program
April 16, 2010
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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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The Benefits
• Loan made to property
• Transferable on sale
• Competitive 20 year rate
• Repayment via property tax bill
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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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Clean Generation ProgramSelected 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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Clean Generation ProgramOverview
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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Clean Generation ProgramEligible Measures
• Energy Efficiency Retrofits
• Insulation
• Heating and Cooling Systems
• A/C retrofits
• Whole House Fan
• Water heaters
• Pool Pumps
• Renewable Energy Fixtures
• Solar
• Wind
• Fuel Cells
• Water Efficiency Fixtures
• Low flow fixtures
• Reclaimed Water Systems
• Water Efficient Irrigation
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Micro-Bond Process
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1 - Submit ApplicationIncludes Project Details Package
2 - Receive Notice to ProceedIncludes Funding Reservation
4 - Submit Funding RequestIncludes Verification Documents
5 - Receive Assessment Contract Documents
8 - Pay Back via Property Taxes
Property Owner Administrator
• Verify eligibility
• Verify project compliance• Generate contract docs
3 - Install Project
6 - Submit Assessment Contract Package
7 - Receive Payment
County
• Place lien• Issue bond• Remit payment
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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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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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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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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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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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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Clean Generation ProgramProgram 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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Clean Generation ProgramProgram 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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Clean Generation ProgramHow 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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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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Clean Generation ProgramTimeline
• 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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Clean Generation Program
Questions?