1. Sustainability Business Case with FUNDING assistance
Lolalisa DeCarlo King
Architect for Life, Sustainability Strategist
Jonathan Blackburn
Texas PACE Authority State Director
Austin, Texas

2. Key Presentation Take-Aways
Sustainability is more profitable
Sustainability gleans the best talent
Sustainability cuts cost of capital
Funding is available for major projects
PACE is in 32 states
What is PACE?

3. Business Case Business Benefits of Sustainability
Source: Huffington Post, John Friedman
enhanced speed to market
competitive workforce
updated procedures
cost reduction or avoidance
market advantage
employee engagement
innovation
access to capital
Graphic source: MIT Sloan Review: Kiron, Kruschwitz & Goh

4. PACE Funding States with PACE-enabling legislation: 32 plus DC
States with active PACE programs: 19 plus DC
PACE Programs in operation: 40

5. INCREASE Net Operating Income Bottom Line: Increased Building Value
LOWER Utility Costs
Bottom Line: Increased Building Value

6. PROJECT PAYS FOR ITSELF
100% LONG TERM FINANCING
PROJECT PAYS FOR ITSELF

7. ELIGIBLE TECHNOLOGIES
MUST:
REDUCE ENERGY/WATER CONSUMPTION OR DEMAND OR
ONSITE GENERATION BEHIND CUSTOMER METER
PERMENANTLY AFFIXED

8. LONG SIMPLE PAYBACK? NO PROBLEM! UTILITY SAVINGS REPAYMENT
INCREASED NOI
REPAYMENT

9. Financial Impact of PACE - An Example
Commercial Office Building
Project involves a $1.1M energy efficiency retrofit
Annual energy and maintenance savings of $125,000 (8.8 years simple payback)
The project does not pass the property owner’s hurdle rate for investment in energy efficiency
PACE funding available for 20 years at 6.0%.
Conventional Funding for 5 years at 4.0 (with 20% down payment%).

10. Cash Flows

13. BARTON CREEK MALL Measures: Exterior LEDs HVAC VFDs BAS
Weatherization of building shell
Low flow water fixtures
Project Cost: $1.25M
Annual Savings: $177,000

14. Key Presentation Take-Aways
Sustainability is more profitable
Sustainability gleans the best talent
Sustainability cuts cost of capital
Funding is available for major projects
PACE – Property Assessed Clean Energy
PACE – Positive Cash Flow

15. A good way to fund sustainable projects
Thank you!
Sustainability
Good for Business
PACE
A good way to fund sustainable projects