Energy Exchange

PACE 2.0: California Leading the Next Evolution in Clean Energy Finance

Economy_iStock_000019093094_RFProperty Assessed Clean Energy (PACE) is an innovative financing technique for clean energy retrofits that was first developed in Berkeley in 2008, giving energy efficiency projects a huge boost throughout the U.S.

Here’s how it works: Property owners agree to a long-term tax assessment on their home or building in exchange for the upfront funding to pay for a retrofit. What’s great about the program is its ability to essentially eliminate one of the biggest barriers to energy efficiency retrofits: up-front costs.

And, just as with any other property tax assessment, the obligation transfers to the new owner upon a sale of the property.  This transferability allows property owners to consider projects with longer payback periods as the obligation does not become immediately due upon sale. Read More »

Posted in California, Clean Energy, Energy Financing, State / Tagged , | Comments are closed

Upcoming Webinar: How Commercial PACE and ICP are Raising Investor Confidence in Energy Efficiency

By: Matt Golden, Senior Energy Finance Consultant

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The Investor Confidence Project (ICP) and Commercial Property Assessed Clean Energy (PACE) programs offer many opportunities for collaboration in the buildings and energy efficiency sector.  We will be exploring this potential for partnership in the upcoming webinar, Commercial PACE: Raising Confidence in Energy Savings to Ramp-Up Investment and Demand, held on January, 30th 2014, at 2pm ET/ 11am PT.

This one-hour, Environmental Defense Fund (EDF) / PACEnow webinar is designed to help Commercial PACE administrators, investors, project developers and building owners understand how standardization can facilitate multiple stakeholder alignment, ensure underwriting needs are met and enable energy efficiency investment while lowering transaction costs.  It will include a brief presentation on EDF’s Investor Confidence Project, followed by panel discussion focusing on how Commercial PACE programs are using ICP to address the owner and investor projected savings-confidence challenge, which has been an impediment to energy retrofit financing nationwide.  Moreover, the panel will share how ICP is enabling energy efficiency financing to become a mainstream financial asset class with the high degree of standardization, predictability and scale that investors demand. Read More »

Posted in Energy Efficiency, Investor Confidence Project / Tagged | Comments are closed

New Protocol Will Help Create Investor Confidence in Small-Scale Energy Efficiency Retrofits

##logoBy: Matt Golden, Senior Energy Finance Consultant

The Investor Confidence Project (ICP), which aims to bring transparency and accountability to the energy efficiency market by introducing a system of standardization, is pleased to announce the release of the Energy Performance Protocol for Targeted Commercial projects.  Unlike whole building retrofits, targeted commercial projects are typically projects that can upgrade a single measure, such as lighting or windows, or multiple measures that are very basic. The protocols standardize how projects are baselined, engineered, installed, operated and measured, and are aimed at boosting investor confidence in the resulting savings.

The Targeted Commercial Protocol complements the ICP’s two existing Energy Performance Protocols: 1) Large Commercial Protocol, which involves a whole building retrofit greater than $1 million and with annual energy savings of more than 20%, and 2) Standard Commercial Protocol, which is a whole building retrofit priced at below $1 million.

The Targeted Commercial Protocol further develops the ICP family of protocols and addresses the range of project types increasingly common in the growing energy efficiency retrofit marketplace. Reflecting market realities for smaller projects, this protocol was developed in collaboration with industry experts, including organizations that are part of the ICP Ally Network.  It strikes a balance between the need to minimize overhead for less complex projects, while maintaining the necessary rigor to attract investment for smaller projects.  Read More »

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EDF and Allies Defend EPA Emission Standards for Oil and Gas Pollution

Source: Angela Keck Law Offices LLC

Source: Angela Keck Law Offices LLC

By: Tomás Carbonell, EDF Attorney, and Brian Korpics, EDF Legal Fellow

A new year may be upon us, but – unfortunately – some members of the oil and gas industry would prefer we roll back the clock on common sense, long-overdue emission standards for oil and gas equipment.

Oil and natural gas production continues to expand rapidly in the United States – and with it the potential for emissions of climate-destabilizing pollutants (especially methane), smog-forming compounds and carcinogenic substances, such as benzene.  We urgently need rigorous national standards that comprehensively address the full suite of pollutants from oil and gas facilities, protect public health and the environment and conserve needless waste of our nation’s natural resources.

In August 2012, the U.S. Environmental Protection Agency (EPA) took a promising first step by issuing emission standards for new natural gas wells and other oil and gas equipment, including the thousands of large storage tanks built near gas wells, pipelines and processing facilities each and every year.  These “New Source Performance Standards” (NSPS) were based on proven and highly-effective emission control technologies that leading companies have been using for years.  Many of these control technologies also directly benefit a company’s bottom line by reducing avoidable waste of natural gas from vents and leaks – saving money while protecting our climate and air.  Read More »

Posted in Climate, Natural Gas, Washington, DC / Read 1 Response

Old Cities, New Tricks: Sustainability for Economic Revitalization

This commentary originally appeared on our EDF Voices blog by Ben Schneider, EDF Communications Manager

Love Park in Center City, Philadelphia, Pennsylvania. The park is nicknamed Love Park for Robert Indiana's Love sculpture which overlooks the plaza.

Love Park in Center City, Philadelphia, Pennsylvania. The park is nicknamed Love Park for Robert Indiana’s Love sculpture which overlooks the plaza.

Curbing pollution to protect the world now and for future generations is an obvious argument in favor of sustainability. But as organizations and companies throughout the country are demonstrating, sustainability is also big business. So much so, in fact, that some of America’s oldest cities are embracing it as a way to revitalize their economies.

Want proof it can work? Look no further than Philadelphia. It’s a quintessentially historic city – the Founding Fathers signed the Declaration of Independence and established the U.S. Constitution there, after all. And if you’ve ever spent any time there, you’ve probably noticed its history is still a central part of its identity. The William Penn statue atop City Hall, Independence Hall, the cobblestone streets – Philadelphia has gone to great lengths to preserve the past as an intrinsic part of its modern character.

Digging a little deeper, it’s clear the city has its eye on the future much more than the past. Greenbuild held their annual conference in Philadelphia last month, and it was abundantly clear public and private entities alike are investing time and resources to aggressively reinvent Philadelphia as a model of 21st century efficiency and sustainability, and they’re not alone.

Hundreds of companies and organizations, and 30,000 attendees, set up shop throughout the city’s Convention Hall to show off their latest work in sustainable building practices. The expo has grown so large it attracted former Secretary of State Hillary Clinton for the key note address, who spoke of the potential for green building to bolster the nation’s economy and help America achieve energy independence.

Philadelphia organizations embraced their time in the green building spotlight and emphasized the city’s progress and intent:

  • The city’s water department is two years into a 25-year plan to implement a groundbreaking, city-wide storm water management plan that will drastically reduce water pollution and reinvent the city’s infrastructure in the process.
  • The Navy Yard — which dates back to 1776, when the United States needed to bolster its navy for the Revolutionary War and was shuttered in the mid-1990s – has been remade into a 1,200 acre business campus where 130 companies now utilize the space for offices, manufacturing, research and development, and more.

These kinds of stories are important to remember as the environmental movement continues to broaden our circle of supporters. Within the traditional base of the environmental movement, calls to preserve the world we leave our kids resonate deeply. But we’ll need more non-traditional allies if we’re going to enact the kind of sweeping reforms needed to fight climate change. Adding the economic and financial benefits of sustainability to the conversation are one way to do that.

Philadelphians embrace their rich heritage as much as any city in America – and as they demonstrate, that’s no reason not to look toward the future with excitement as well.

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EDF’s Energy Efficiency Protocols Gain Traction

By: Matt Golden, Senior Energy Finance Consultant, Environmental Defense Fund

Source: Spark Energy

Source: Spark Energy

Environmental Defense Fund’s (EDF) Investor Confidence Project (ICP) aims to bring transparency and accountability to the energy efficiency market by introducing a system of standardization. Traditionally, most energy efficiency analyses are done by the companies selling retrofit services to commercial building owners and investors, resulting in biased results that do not always ensure return on investment (ROI).  Additionally, inconsistencies in the methodology for arriving at these ROI metrics have created barriers to standardizing a measure of success for energy retrofits.

For the first time, ICP’s Energy Performance Protocols were used to leverage financing for a $2 million office building retrofit in Bridgeport, Connecticut.  This new model could accelerate the vast potential of energy efficiency retrofits in commercial buildings.

ICP’s protocols have been developed with broad stakeholder participation including engineers, industry allies, financial market participants, insurers, regulators and utilities.  The protocols aim to significantly increase stakeholder confidence in the resulting savings by: Read More »

Posted in Energy Efficiency, Investor Confidence Project / Tagged | Read 1 Response