PACE Financing 2015 CALED CONFERENCE Background The PACE

PACE Financing 2015 CALED CONFERENCE

Background ü The PACE Program provides financing to property owners to improve their homes and businesses with energy efficient, renewable energy and water conserving improvements. ü Funding is paid back through property taxes over time. ü State legislation (AB 811) enables this Program. ü One example of a PACE program is the HERO Program, intiated in December 2011 for WRCOG members. ü WRCOG expanded its Program (now called California HERO) to allow other cities and counties in the State to participate.

Impacts Economic Stimulus ü Lower Utility Bills ü New Job Creation ü Increased Property Values Environmental Benefits ü Reduced CO 2 Emissions ü Decreased Energy Consumption ü Substantial Water Savings

Who qualifies to participate? ü Property owners may be individuals, associations, commercial business entities, cooperatives or non-profits ü Bottom line: Any qualifying owner paying property taxes ü have clear title to property ü be current on property taxes ü be current on mortgage payments ü have some equity in the property ü no bankruptcies ü lender consent (commercial only)

How does it work for the property owner? ü It’s a voluntary program ü Property owners apply for Program coverage and select improvements desired ü If approved, property owner enters into contract with administrator; all up-front costs are paid and assessment lien is placed on property ü Property owner / subsequent property owner repays through property tax assessment over a period of years

Types of projects 2% 1% Solar PV 9% 24% Most Commonly Installed Products 36% HVAC Windows, Doors, Skylights Cool Roof Other 28% Water Conservation

California HERO - 221 cities and counting Alameda County Albany Berkeley Contra Costa Antioch Brentwood Concord Danville El Cerrito Lafayette Martinez Oakley Pleasant Hill Pittsburg Richmond San Pablo San Ramon Walnut Creek El Centro Holtville Imperial County Unincorporated Kern County Arvin Bakersfield California City Delano Kern County Unincorporated Mc. Farland Ridgecrest Shafter Taft Tehachapi Wasco El Dorado County South Lake Tahoe Kings County Lemoore Fresno County Clovis Fresno County Unincorporated Kerman Kingsburg Parlier Reedley Sanger Selma Los Angeles County Alhambra Arcadia Avalon Azusa Baldwin Park Bellflower Bradbury Carson Claremont Commerce Covina Diamond Bar El Monte El Segundo Gardena Glendora Hawthorne Hermosa Beach Humboldt County Eureka Imperial County Brawley Calexico Calipatria Industry Inglewood Irwindale La Cañada Flintridge Lancaster La Verne Lawndale Lomita Malibu Monrovia Montebello Monterey Park Palmdale Pomona Rancho Palos Verdes Redondo Beach Rolling Hills Estates Rosemead San Dimas San Fernando San Gabriel San Marino Santa Monica Sierra Madre South El Monte South Pasadena Temple City Torrance Walnut West Covina Madera County. . Unincorporated Merced County Atwater Livingston Merced County Unincorporated Mono County Mammoth Lakes Mono County Unincorporated Stanton Tustin Westminster Yorba Linda Monterey County Carmel-by-the-Sea Del Rey Oaks Monterey County Unincorporated Pacific Grove Riverside County Beaumont Blythe Cathedral City Coachella Desert Hot Springs E. Riverside County …Unincorporated Indian Wells Indio La Quinta Palm Desert Palm Springs Rancho Mirage Napa County American Canyon Calistoga Napa County Unincorporated St. Helena Yountville Orange County Aliso Viejo Anaheim Brea Buena Park Costa Mesa Cypress Fountain Valley Garden Grove Huntington Beach La Habra La Palma Lake Forest Laguna Hills Newport Beach Placentia Rancho Santa Margarita San Clemente Santa Ana Sacramento County Citrus Heights Elk Grove Galt Rancho Cordova Sacramento County …. Unincorporated San Diego County Carlsbad Coronado Del Mar El Cajon Encinitas Escondido Imperial Beach La Mesa Lemon Grove National City Oceanside Poway San Diego County Unincorporated San Marcos Santee Solana Beach Vista Santa Cruz County Scotts Valley Santa Cruz County Unincorporated Solano County Benicia San Francisco Dixon County Solano County San Francisco Unincorporated San Francisco County Suisun City …Unincorporated Vacaville Vallejo San Joaquin County Lodi Sonoma County Manteca Healdsburg Ripon Sebastopol Stockton Sonoma Tracy Sonoma County Unincorporated San Mateo County Burlingame Stanislaus County Daly City Hughson Foster City Modesto Menlo Park Newman Redwood City Oakdale San Bruno Riverbank San Carlos Turlock San Mateo Waterford San Mateo County Unincorporated Tulare County South San Francisco Tulare Woodside Visalia Santa Barbara County Lompoc Santa Clara County Morgan Hill Gilroy San Jose Ventura County Fillmore Ojai Oxnard Port Hueneme Santa Paula Simi Valley Yolo County Winters WRCOG Banning Calimesa Canyon Lake Corona Eastvale Hemet Jurupa Valley Lake Elsinore Menifee Moreno Valley Murrieta Norco Perris Riverside County Unincorporated San Jacinto Temecula Wildomar ________ HERO Communities as of April 14, 2015 Indicates launched

Program results ü 221 cities and counties have joined WRCOG’s California HERO Program ü Represents 6+ million households ü $431+ million for 20, 000+ completed projects have been funded: ü $253 million in Riverside County ü $178 million in California HERO ü 25, 000+ applications approved ü $2. 1+ billion in approved applications

Questions ? Thank you Phil Bowman CEO Muni-Fed Energy, Inc pbowman@munifedenergy. com