1. Energize NY PACE Update
October 4, 2017
Sarah Smiley - Energize NY Director of Member Services
Mark Thielking – Energize NY Executive Director

2. EIC Energy Improvement Corporation
Not-for-profit, Local Development Corporation
Mission to increase clean energy adoption across NYS
Controlled by member municipalities
Shared service structure
Funded by NYSERDA, US-DOE, revenue from financings
Serve property owners with services through Energize NY
Investment in local economy
Supports local business stability and expansion
Supports Property Values: well maintained buildings with low energy costs are more attractive to buyers and potential employers
Spur job creation and increased opportunity in engineering, architecture, HVAC and renewable energy
Support healthier, livable communities by reducing emissions and pollution

4. Public Benefits:
Services authorized by local municipalities to achieve a defined public benefit:
Water + Sewer Infrastructure
Fire and Police
Sidewalks + Roads
Public Lighting
PACE Finance to support energy related improvements to buildings
Commercial.EnergizeNY.org 3

5. Clean Energy Public Benefits Property Assessed Clean Energy (PACE)
“Municipalities would fulfill an important public purpose by providing financing to property owners for the installation of renewable energy systems & energy efficiency measures.”
- Article 5L of the NYS General Municipal Law
Repayments collected by municipality via tax bill charge
By Darwinek [CC BY-SA 3.0], via Wikimedia Commons
Energize NY Finance is NY State’s Commercial PACE program
EIC’s Local Development Corporation structure allows for simplified state wide adoption of Article 5-L:
Aggregated Capital Sources
Legal constructs; capital structure tested and operational
Funded reserves + credit facilities
Joint marketing and outreach
No cost to participating Municipality
Same state wide facility
Combines strength of NYS’s Tax Laws and LDC structure

6. Energize NY PACE Finance Benefits
Property Assessed Clean Energy (PACE) = alternative, affordable financing
Up to 100% of the cost of solar and energy efficiency projects of all sizes
Eligibility is not based on traditional credit metrics, but on the building’s ability to carry the extra tax charge and generate positive cash flow from reduced energy costs
Is repaid through an annual charge on the tax bill for the property over the term of the loan
Automatically transfers to new owner if the property is sold
Flexible customizable loan terms up from years
Competitive interest rates (4.75% to 6%)* depending upon market conditions and even lower rates for not-for-profits located in Westchester County.
Property Assessed Clean Energy (PACE) Finance = alternative, affordable financing for renewable energy and energy efficiency upgrades to buildings
PACE provides another capital source to achieve building upgrades
PACE is NOT a bank loan
The use of PACE is tied to the financial value and health of the building. The improvements stay with the building, and the “loan” remains with the building for the length of the financing
*Rates as of

7. Eligible Building Types
Commercially-owned buildings
Multifamily
Healthcare
Hospitality
Industrial
Warehouse
Not-for-profit
Office
Retail
Agricultural
Institutional
Private colleges

8. Eligible Improvements
Renewables: Solar PV, Solar Thermal, Geothermal, Wind
Efficiency: Lighting, Boiler Conversions, Furnace Upgrades, Insulation, HVAC, Chillers, Windows, Pumps, Smart Controls

9. Energize NY PACE Projects
Lead
NYSERDA Multifamily Partner Customer
Scope of Work
Fuel conversion
Boiler
Hot water heater
Pipe insulation
Lighting
Windows

10. Energize NY PACE Projects
Lead
Southern Tier Solar Works
Scope of Work
Façade-mounted Solar PV

11. Energize NY Active + Closed 31 Projects, Building Type – $6.670m

12. NYS PACE NEWS
Article 5-L Amendments (Requires Amended Local Law + Muni Agreement)
10% Cap Removed
Community Solar/Remote Net Meter projects allowed
Access to non-federal reserves: All NYS Counties / Cities may participate
New NYSERDA Commercial PACE Guidelines
Annual Savings test moved to cumulative Savings Investment Ratio of SIR > 1 (Requires Amended Local Law + Muni Agreement)

13. NYS PACE Technical Guidelines
NYSERDA has issued guidelines to allow project developers to qualify projects
a) Cumulative Savings Investment Ratio of SIR > 1
b) Three Technical Pathways for PACE:
NYSERDA programs: NYSERDA programs for energy audits and/or feasibility standards
Utility and LIPA programs
NY State Commercial (C-PACE) Guidelines
Responders establish and utilize their own process for complying with the NY State C-PACE Guidelines.
EIC will review and approve responder’s proposal as a condition to qualification
EIC will collaborate to develop quality assurance review

14. Energize NY PACE – Additional Innovations
Energize NY Finance will accept Power Purchase Agreements (PPA)
The Solar Project Owner agrees to sell solar power to the Property Owner through a long term contract called a Power Purchase Agreement or “PPA”
ITC Linked PACE Capital
Short Term Capital that is paired with Federal ITC and/or Depreciation Tax Benefit payments AND a long-term PACE Financing
PACE Construction Phase Capital
Construction Phase Capital that is paired with Long Term PACE to create a seamless clean energy finance process < available in phases starting in 2018

15. EIC RFQ
EIC seeks to encourage the development of clean energy projects in New York State, especially within our Member municipalities.
EIC would like to leverage our PACE facility and is looking for project developers to bring multiple projects on a large scale.
Responders will need to demonstrate the ability to complete $3 million of financing annually, and $5 million annually for those choosing to use their own capital.
Large scale experienced developers who don’t need EIC to help prepare and document a project prior to financing. And/or developers who run their own projects and provide their own capital.

16. PACE Pairs with NYS Clean Energy Initiatives
Property Assessed Clean Energy (PACE) pair with:
Utility Programs – 100mm+ of annual incentives related to electricity and gas efficiency improvements, demand management, small business,
NYSERDA Programs, Efficiency: Financial Assistance related to geo thermal, agriculture, new construction, multi family, commercial and demand management programs
NYSERDA Programs, Renewables – Financial Assistance for solar (NY Sun), wind and storage (soon)
Empire State Development - economic development agency of NY initiatives provide assistance specifically for building revitalizations in the urban core sections of NY State that can include energy improvements.

17. Energize NY Services: Energize NY Partner support
Energize NY Trainings
Property owner support
NYSERDA + Utilities
Finance Application support
Municipal Member support
PACE Finance support
Pair PACE to building code initiatives
Pair PACE to economic development initiatives
Pair PACE to grant opportunities
Troy waterfront CC-BY-SA-3.0/ Matt H. Wade at Wikipedia

18. Contact information
Mark Thielking
Executive Director
x8109
Sarah Smiley
Director of Member Services
x8105
Susan Morth
Director of Business Development
x8114

19. APPENDIX Finance Criteria
Estimated annual energy savings from improvements must be greater than annual finance payments
Improvements have savings-to-investment ratio > 1
Commercially or Not-for-Profit owned property
Property’s existing loan-to-value is no greater than 80%
Financing up to 10% of value of benefitted property
No bankruptcy within last 7 years
At least 3 year history of timely property tax payments
Existing lender consent required
NYSERDA/Utility energy assessments and verification

20. APPENDIX ENY Finance Process
Action
Timing
1. Submit on-line Pre-application
Receive conditional reservation number
Obtain an appraisal if needed
2 business days
b. Client dependent
2. Scope of Work
Technical review
NYSERDA/Utility program/contractor
3. Submit Finance Application
Title search
Lender consent if needed
Organizational documents
ENY internal approval process
Sign and return Finance Agreement documents
Notice to Proceed
7-10 business days
Client dependent
15-20 business days
1 business day
4. ENY disburses capital
Certificate of Completion or equivalent
a. Completion date dependent