Community Retrofit Program Residential Advisory Committee Anne Brink February 3, 2011

The Clean Energy Works - Oregon A financing solution - Local lenders offer competitive loans that can be paid back on utility bills, where energy savings help cover loan amounts. Simplifies the transformation of older homes into energy efficient and livable homes by offering bundled energy remodel services in collaboration with Energy Trust of Oregon, utilities, financial institutions, local communities and contractors A non-profit committed to positive environmental and social change that reduces a community’s environmental impact and creates jobs with family-supporting wages, benefits and career pathways.

Goals Clean Energy Works 6,000 residential and small business energy remodels by the end of 2013, leveraging $100 million in private capital and fulfilling the terms of a 2010 investment by US Dept. of Energy. High road agreement Create lasting green jobs

Clean Energy Works provides Centralized branding and marketing services Education workshops for homeowners Online customer application Consumer rebates – partnered w/ETO

Clean Energy Works Provides Customer support provided by highly-trained Energy Advisors Highest quality contractors and building science professionals 100% quality control verification Up to 100% financing with attractive terms, including utility bill repayment

Eligible Improvements Weatherization Insulation: wall, attic, floor Air sealing: windows, doors, attic, basement Duct sealing Equipment Space heating: furnace and heat pump Water heaters: tank and tankless

Clean Energy Works Process Online application Credit Screen (underwriting) Home Performance Assessment Bid Proposal Loan signing Construction and QC On-bill Repayment

Financing solution Low Touch Underwriting Product Specifications Non‐Traditional: Utility payment history, FICO >590 IT Platform: Linked to utilities and loan management Product Specifications Rate: 5.99% (3.99% for <250% Federal Poverty) Term: 20 year amortized Security: blind subordinate lien on property Servicing: on‐bill repayment (heating utility) Risk: cash funded loan loss reserve = 10% loans Transferable: at time of home sale (processing fee)

Program Successes Results to date Average energy savings: $500/year Carbon redutions: 2.7 metric tons per home Median project costs: $12,600 Projects funded: $5,750,000 Loans signed:461 Homes Retrofitted: 415 Median loan payment: $76 per month Overall cutomer satisfaction rating: 93%

Community Power Works - Seattle a neighborhood based community retrofit program that will achieve deep energy savings and create lasting green jobs.

Goals Community Power Works Achieve energy and carbon savings – 15% savings Create lasting green jobs Engage the entire community Successfully retrofit at least 2,000 homes Implement the high road agreement Deliver cost-effective energy efficiency

Eligible Improvements Modeling 15% improvement Energy Performance Scores

Financing solution Low Touch Underwriting Product Specifications Non‐Traditional: Utility payment history, FICO >590 IT Platform: Linked to utilities and loan management Product Specifications Rate: 5.99% (3.99% for <250% Federal Poverty) Term: 20 year amortized Security: blind subordinate lien on property Servicing: on‐bill repayment (heating utility) Risk: cash funded loan loss reserve = 10% loans Transferable: at time of home sale (processing fee)

Community Power Works - Process Online application Credit Screen (underwriting) Home Performance Assessment Bid Proposal Loan signing Construction and QC On-bill Repayment

Key differences Community Power Works Clean Energy Works Targeted at low income Energy Modeling w/Performance Score Auditors employed by the program Clean Energy Works Broader demographic target Prescriptive approach Independent auditors providing the home energy audits