1 Program Overview Part I March 2, 2016

2 Paul Scharfenberger: Director, Finance & Operations, CO Energy Office Chairman, New Energy Improvement District Brian McCarter: CEO, SRS – CO C-PACE Program Administrator Susie Strife: Sustainability Coordinator, Boulder County Mark Job: Branch President, Citywide Banks Keirsten Beck: Principal, Integro Panelists

3 Program Background Program Structure Stakeholder Perspectives Paul: State government perspective Brian: Program administrator perspective Susie: County government perspective Mark: Capital provider perspective Keirstin: Project developer perspective Audience Q&A Session Topics

4 New Energy Jobs Creation Act authorized the New Energy Improvement District (NEID) to create the statewide C-PACE “District” NEID Board is comprised of seven members, incl. representatives from: Colorado Energy Office Commercial Real Estate Industry Banking Industry Energy Efficiency & Renewable Energy Industry Public Utilities C-PACE Program Background

5 May 2015: NEID issued public RFP for C-PACE Program Administrator Aug 2015: NEID Board selected SRS as C-PACE Program Administrator SRS has substantial C-PACE experience nationwide 4Q 2015: NEID & SRS collaboration on myriad of launch plan activities Feb 2016: Public launch of C-PACE program C-PACE Program Background (cont.)

6 Counties must opt-in to participate in the C-PACE statewide “District” Participating Counties: Boulder In-Discussion Counties: (check copace.com website for opt-in updates) Adams Arapahoe Broomfield Denver Eagle Garfield County tax offices will bill & collect PACE assessment fees County will remit building owner’s PACE assessment collections to NEID NEID will disburse PACE funds to private capital providers C-PACE Program Structure Jefferson Mesa Pitkin Pueblo Summit

7 C-PACE is designed as an “open source funding model” No state / public funds are available to finance projects Pre-qualified private Capital Providers fund eligible projects In cases where building owner does not have a preferred capital provider the Program Administrator may review pre-approved projects with pre-qualified capital providers to determine funding interest C-PACE requires owners to receive written consent of mortgage holder C-PACE Program Structure (cont.)

8 C-PACE is a great representation of the public-private-partnership (P3) model: Private sector dollars finance projects by leveraging the public sector infrastructure, not the coffers Statewide approach standardizes administration in a way that can be quickly scaled Voluntary nature puts the counties in the drivers seat in terms of participation Open source funding model allows all types of lenders to participate, creating secure investment opportunities across the state Stakeholder Perspective: State Government

9 CO C-PACE is right-structured for success:  Statewide program with CEO / NEID as sponsor agency  Ensure consistent, repeatable and scalable process  Technically sound Program Guidelines & independent review  Overcome owner & mortgage holder skepticism of savings projections  “Open Market” access to private capital  Facilitate building owner selection of “Best-Fit” capital provider Stakeholder Perspective: Program Administrator

10 C-PACE program supports County economic development & sustainability goals: Increase local jobs Improve local commercial building stock Reduce energy consumption Reduce greenhouse gas emissions Increase renewable energy deployment Stakeholder Perspective: County Government

11  Patient capital  Access to long term, 100% financing  Excess cash flow  Incentive to invest in energy savings equipment Stakeholder Perspective: Capital Provider

12 C-PACE enables project developers to meet owner’s capital intensive building modernization needs with: 100% long-term financing Cash flow positive projects No personal guarantees Owner retains all tax & utility incentives Automatic transfer upon sale Preserves capital for core business Stakeholder Perspective: Project Developer

13 At next CO C-PACE Part II session: Immediately following this Program Overview session Also see C-PACE Program website: Learn More “How it Works” Details

14 “How it Works” Part II March 2, 2016

15 Phillip Saieg:Session Moderator – Energy Solutions, McKinstry Paul Scharfenberger: Director, Finance & Operations, CO Energy Office Chairman, New Energy Improvement District Brian McCarter: CEO, SRS – CO C-PACE Program Administrator Susie Strife: Sustainability Coordinator, Boulder County Mark Job: Branch President, Citywide Banks Keirsten Beck: Principal, Integro Panelists