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PACE Program Design Considerations June 4, 2014

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PACE Video (Click on PACE Video to play)

PACE WORKS

PACE TAKES OFF

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31 states and DC - 80% of US population

PACE enabled

2009

2009

2009

2013

2009

2009

2009

2009

2009

2009

2009

2009

2008 20132013

2013

2011

2010

2010

2010

2010

2010

2010

2010

2012

20102009

2009

HI Existing Authority

2014 / 2015 legislative interest or Bills

2013

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Early stage PACE program developmentPACE programs with funded projects

2010

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PACE enabled

27 Projects completed - $5 mil

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PACE programs with funded projects

PACE PROGRAMS TODAY256 Projects Closed - $75 mil - Pipeline of $250+ mil

Early stage PACE program developmentLaunched PACE programs

PACE enabled

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PACE MARKET DATA

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Project Uses, Sizes and Building Types

Renewable Energy

28%

Energy Ef -ficiency

62%

Mixed10%

$0 $10 $20 $30 $40 $50 $60 $70 $80

2009 2010 2011 2012 2013 Mar-2014

25%

6%

15% 13% 4%4%

5%

8%

22%

OfficeMultifamilyRetailServicesAgricultureHotel IndustrialOtherGovernment

PACE IMPLEMENTATION

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PROGRAM DESIGN

PACE Platform – Municipality as “Loan Servicer”

Sole municipality

• Edina (MN), San Francisco (CA), Ann Arbor (MI), Sacramento (CA)

Multiple municipalities – Consortiums

• California (CaliforniaFIRST, FigTree, LA County)

• Florida (Florida Green Energy Works, Ygrene)

• Michigan (MI Lean & Green)

• New York (Energize New York)

Comprehensive – Statewide, Uniformity and Scale

• Connecticut

Decentralize Market – Spectrum of Models

Low

High

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PROGRAM DESIGN

More is better• Property Owner

Develops project w Contractor Arranges financing

• Local Government Loan Servicer

• Program Administrator (can be local government) Statutory requirements are met – State & Local Other requirements are met

PACE Platform

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PROGRAM DESIGN

More is betterGrandview Tire & Auto, Edina MN

$35,000 Solar Project

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PROGRAM DESIGN

More is betterSimon Property Group, Mentor OH

$3.4 Mil Energy Efficiency

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PROGRAM DESIGN

More is better• Administration – more people to do more things• Marketing and outreach efforts

Segmentation – identifying low hanging fruit Contractors – PACE helps them make their sale Allies to help spread the word Marketing materials – print, online, and other media Project sourcing and development Website – media to publicize wins Awards – PACE property owners are the best sales people

Comprehensive – More is Better

PROGRAM DESIGN

HartfordWest Hartford

BridgeportNorwalk

SimsburyStamfordStratford

Southbury

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542 Westport Avenue, Norwalk CT

$185,000 Lighting Upgrades

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PROGRAM DESIGN

More is better• Political support counts• Build a bigger team – allies matter• Be aggressive – no Field of Dreams• Bird dog projects• Keep it simple• Start lender consent discussion early• Funding on demand is the trend• The only place success comes before work…

Lessons Learned

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THANK YOU

• PACENow is a foundation funded non-profit corporation• We provide information, resources, networking, advice and

direct assistance to a growing group of PACE stakeholders

Contact information:David Gabrielson

david@pacenow.org914.584.1733

Impartial, fact-based, consensus-driven advocate for PACE