1. Maximizing ARRA Impacts With ESPC Tennessee Green Building Summit Nashville, TN September 22, 2009 1

2. Overview Introduction to ESCO Industry ESCOs in Tennessee Using ESPC to Leverage ARRA 2

3. What is ESPC? Energy Savings Performance Contracts – Turnkey projects – All project services: audits to long-term monitoring – Full range of efficiency and renewable technologies – Project costs paid from savings – Savings verified and guaranteed ESCOs delivering $5.5 B of projects in 2009 All US utility EE programs combined Only 20% of projects involve incentives 3

4. ESCO Industry History $35B in projects since 1990 $50B savings – guaranteed and verified 330,000 person-years of direct employment $25 billion of infrastructure improvements 420 million tons of CO 2 savings at no additional cost 4

5. ESCO Industry Growth 5

6. ESPC Market Segments 6

7. ESCO Contracting Arrangements 7

8. Technology/Project Types 8

9. ESCOs in Tennessee Ten ESCOs in place $112M of projects delivered $30M+ in project pipeline Industry ready to invest resources in TN 9

10. ESPC Can Leverage ARRA Funds Use ARRA funds as an incentive Leverage ARRA with private investment $50M of SEP = $250M -- $500M of projects – 5-10x the jobs – 5-10x the energy savings – 5-10x the GHG reductions – 5-10x the investment in public facilities 10

11. ESPC = Economic Development 11

12. ESPC Projects = Good Local Jobs Architects and engineers Construction trades – Carpenters, electricians, plumbers, steamfitters, roofers, glaziers, sheet metal workers, etc. Construction managers 12

13. Thank You Donald Gilligan NAESCO 781-793-0250 dgilligan@naesco.org 13