Renewable Energy Finance Program “Save Some Green” River Falls Municipal Utilities Mike Noreen Conservation and Efficiency Coordinator April 7, 2010

Who We Are Non profit and locally owned and operated electric, water/sewer, and wastewater utility. Serves around 5,800 customers in River Falls, WI. WPPI Energy is wholesale power provider. Community ownership and control is the hallmark of public power — local people working together to meet local needs. Mixture of agricultural, university and bedroom community with a progressive spirit.

Our Challenge Selected by WPPI Energy to “Lead By Example” and become one of four “model communities”. Committee was established to help River Falls become a model in the state and region for implementing community-wide sustainability initiatives. Comprised a group of concerned citizens representing the university, hospital, public school, private sector, city government, and utilities.

POWERful Choices! Mission Statement: A community-wide effort to install a strong local conservation ethic while demonstrating the effectiveness of energy efficiency, conservation and renewable resources

“Lead by Example” Locally LEED Silver Certified City Hall Hired Conservation and Efficiency Coordinator Formed employee “Green Teams” to reduce energy in municipal facilities by 10% Performing Energy Audit on all municipal facilities Installed Wind Test Tower Purchased Plug-in Electric Hybrid Vehicle

The BIG Picture Governor Doyle selected University of WI-River Falls 1 of 4 campuses to be “off the grid” by 2012. EPA Green Power Community and Top 10 List for green power usage - first community in Wisconsin and the Midwest. U.S. DOE’s National Renewable Energy Laboratory Top 10 List for green power sales. Full participation in the WPPI Energy, Solar Buy Back Tariff. First new construction LEED Silver City Hall in Wisconsin! Selected to be 1 of 4 Midwest Efficiency Cities. NREL - # 9 for customer participation rate and #3 for green power sales as a percentage of total retail electricity sales Midwest Efficiency Cities At a glance, it might seem like the cities of Milwaukee, Apple Valley, MN, Grand Rapids, MI and River Falls, WI have little in common. But scratch the surface and you will find that they share a goal—they are all on the way to becoming models of community-wide energy efficiency. Community demand.

Our Latest Project Innovative Renewable Energy Finance Program called “Save Some Green”. Install renewable energy system on home. Solar photovoltaic panel system Solar hot water Solar thermal heating Geothermal heating and cooling system Wind turbines Major energy efficiency projects (in conjunction with renewable energy project) Repay on property taxes.

Program Details Residential customers within city limits. Funding and administration through the utility. 4% loan ranging from 5-20 years. $2,500 - $50,000 range. Loan paid back as a “special charge” on city property taxes.

Renewable Energy in 10 Easy Steps Review program guidelines. Complete Focus on Energy Home Performance with ENERGY STAR evaluation. Obtain bid proposals. Pay application fee ($25-100). Utility internal review of application. Utility customer. Project to be put on residential dwelling. Home within the city limits. Utility payment history. To be reviewed by Utility General Manager, Utility Commissioner, and Conservation and Efficiency Coordinator. Utility Commission updated quarterly. Public Service Commission approved.

10 Easy Steps Continued… 6. Sign required documentation including: Loan Agreement, Promissory Note, Mortgage document, Standard Distribution Generation Application, and Distributed Generation Interconnection Agreement. 7. Proceed with installation. 8. Conduct final inspection and submit copy of final bill for payment. 9. Process payment directly to installer, record mortgage and submit info to the city for collection on property taxes. 10. Pay “special charge” on city property taxes. Request submitted to Public Service Commission to have loan paid back on monthly utility bill.

Funding Source Electric revenue funded. $500,000* utility commitment for “Save Some Green” program in 2010. Funding sources for 2011 yet to be secured. * An additional 1.7% of revenue has been dedicated for additional conservation programs and services, as approved through the Public Service Commission of Wisconsin. Uc reviews program to determine future funding.

Why Program Was Created Eliminate “cost first” barrier when considering renewable energy installation. Offer additional low interest funding options. Increase the proliferation of renewable energy systems into residential market. Help customer through the complex web of city codes, financial rebates, renewable energy options and deadlines.

Program Uniqueness No improvement district formed or municipal bonds sold. Funding acquired from utility revenue. Commitment to energy efficiency required. Not tax deductible. Homeowner signs mortgage document and owns the renewable energy system. Incentives are not required to be repaid immediately. Loan to be paid off at the sale of the property.

Potential Concerns Limited pool of funding. Trailblazers and program guidelines may change. Attempt to have all projects with energy savings of at least 75% of the cost of the loan. Is the renewable energy technology ready?

Project Timeline April—Approved "Leading By Example” participation 2007 November—Started following Berkley model February—First met with City staff 2008 March—Subcommittee formed November—Presented program concept to governing bodies 2009 04/07 - City Council and Utility Commission approved resolution to participate in "Leading By Example” initiative 11/07 - PC started following Berkley model 02/08 - PC first met with City staff regarding property taxes 03/08 - Subcommittee formed to research and develop conceptual model 11/09 - Presented program concept to Utility Commission and City Council at Joint Workshop and made recommended modifications. 11/09 - City Council approved Resolution authorizing collection on property taxes 03/10 - Utility Commission approved Resolution authorizing use of funds 03/10 - Press release and mass marketing 03/10 - First customer application November—Approved collection on property taxes March—Approved funding allocation 2010 March—Mass marketing March—First customer application!!

"Our goal is not to take over the market for financing solar and energy efficiency," says Francisco DeVries. "It's to provide a financing mechanism for people who otherwise could not or would not get solar and energy efficiency.” [DeVries is a confessed save-the-climate junkie and chief of staff for Berkeley, California, that was in charge of implementing an ambitious new measure to cut the city's greenhouse gas emissions 80% by 2050.] Gather support: Mayor (maybe signed mayoral pact), utility general manager, Look to other communities that have a program or wholesale energy provider

Questions and Comments? Mike Noreen, Conservation and Efficiency Coordinator 715-426-3467 mnoreen@wppienergy.org River Falls Municipal Utilities 222 Lewis Street, Suite 228 River Falls, WI 54022 www.rfmu.org