1. EPAD-Louisville 101 EPAD-Louisville 101 Making Cent$ of Energy
Andrea Webster
July 26, 2017

2. EPAD-Louisville: Overview EPAD: Energy Project Assessment District
Known as PACE (Property Assessed Clean Energy) in other states

3. EPAD-Louisville: Overview
Energy/Water Improvement Services $$
EPAD Contractor
Property Owner
Project Types:
Energy efficiency
Renewable energy
Water conservation
Open to:
All Lenders
All Contractors

4. EPAD-Louisville: Overview$$
Energy/Water Improvement Services
EPAD Contractor
Property Owner $$
EPAD Lender
Project Types:
Energy efficiency
Renewable energy
Water conservation
Open to:
All Lenders
All Contractors

5. EPAD-Louisville: Overview
Energy/Water Improvement Services $$
Payment via Annual Assessment
EPAD Contractor
Property Owner
Jefferson County Sheriff
Sheriff Remits Annual Payment to LMG $$
EPAD Lender
Louisville Metro Government (LMG)
LMG Remits Annual Payment to Lender
Project Types:
Energy efficiency
Renewable energy
Water conservation
Open to:
All Lenders
All Contractors

6. EPAD-Louisville: Eligibility
Participants
Office
Retail
Industrial
Agricultural
Non-profits
Multi-family residential properties with 5 or more units
Projects
Energy efficiency
Renewable energy
Water conservation
Minimum cost - $20K
Minimum useful life – 5 years
Permanently affixed to the property

7. EPAD- Louisville: Example Projects
Mechanical
HVAC upgrades
Combined Heat and Power (CHP)
Elevator and escalator upgrades
Building automation (energy management) systems
Envelope
Roofing with insulation
Window and door replacements
Green roofs
Lighting
High efficiency lighting such as LED lighting
Automated controls
Parking lot lights
Renewable Energy Systems
Solar electric or thermal
Geothermal
Water
Low or no flow fixtures

8. EPAD-Louisville: Benefits
Can finance up to 100% of an energy project’s cost (meaning NO down payment)
Improvements are designed to increase the cash flow of the property owner
Improvements increase the value of the property
Improvements can reduce maintenance and repair costs
Loan repayment transfers to the new owner upon sale or transfer
On Notice of EPAD Special Assessment: Total cost of improvements, Total financing requested, term of repayment period, total estimated annual payment

9. EPAD-Louisville: How to Participate Office of Sustainability
Initial Eligibility Form
Formal Program Application
Loan Closing
Repayment
Property owner contact
General property information
Parcel ID
Square footage
Type of business
Existing mortgages
Project information
Has an energy audit been completed?
Estimated project cost
Requested financing amount
Property appraisal
Office of Sustainability
Approval
At this point, you should have begun talking to prospective lenders and contractors

10. EPAD-Louisville: How to Participate
Initial Eligibility Form
Formal Program Application
Loan Closing
Repayment
First 2 pages = Initial Eligibility Form
Legal description of the property
Found on County Clerk’s Website
Energy project summary
List of contractors
Signed project bid
Project budget
Lender contact information
Title search
Mortgage lien holder consent
Submit to Office of Sustainability with Application Fee:
lesser of $500 or 1% of the cost of the project
At this point, you should have selected your lender and contractor(s)
Office of Sustainability
Approval

11. EPAD-Louisville: How to Participate
Initial Eligibility Form
Formal Program Application
Loan Closing
Repayment
First 2 pages = Initial Eligibility Form
Legal description of the property
Found on County Clerk’s Website
Energy project summary
List of contractors
Signed project bid
Project budget
Lender contact information
Title search
Mortgage lien holder consent
Submit to Office of Sustainability with Application Fee:
lesser of $500 or 1% of the cost of the project
At this point, you should have selected your lender and contractor(s)
Office of Sustainability
Approval

12. EPAD-Louisville: How to Participate
Initial Eligibility Form
Formal Program Application
Loan Closing
Repayment
Loan closing documents from lender
EPAD Program Financing Agreement
Property Owner
Louisville Metro Government
Lender

13. EPAD-Louisville: How to Participate
Initial Eligibility Form
Formal Program Application
Loan Closing
Repayment
Annual Requirements
Pay your bill every July
Billed issued just like property tax assessment
Track your energy use in Portfolio Manager
Share account with Office of Sustainability
Respond to annual survey from Office of Sustainability
Bill transfers to new owner upon sale or transfer
Included in Your Bill
Installment payment
Administrative Fee (lesser of: $200 or 1% of the installment)
Sheriff’s Commission (1% of the installment)

14. EPAD-Louisville: Sample Project
Project Cost: $40,000
Application Fee: $400
Loan terms:
4% interest rate
25 year term
Annual Assessment:
Installment $2,560
Administrative Fee $26
Sherriff's Commission $26
TOTAL ASSESSMENT $ (~218 per month)
(lesser of $500 or 1% of the cost
of the project)
(lesser of $200 or 1% of the installment)
(1% of the installment)
For example, the property owner of a project costing $40,000 would pay an application fee of $400 (1% of the cost of the project). After obtaining a 4% interest rate on a $40,000 loan with a 25 year term, the property owner will pay an annual assessment of $2, plus the 1% administrative fee ($25.60) and the 1% Sheriff’s fee ($25.60), for a total amount due each year of $2,

15. EPAD-Louisville: Tips
You can include in your loan:
Audit costs
Feasibility study costs
Engineering and design expenses
Application and permit fees
And more
Get started on these right away
Find a contractor
Project cost estimate / loan estimate
Notify existing mortgage lien holders
Find a lender
Title search
On Notice of EPAD Special Assessment: Total cost of improvements, Total financing requested, term of repayment period, total estimated annual payment

16. EPAD-Louisville: Benefits
> EPAD Program
Andrea Webster
More resources:
On Notice of EPAD Special Assessment: Total cost of improvements, Total financing requested, term of repayment period, total estimated annual payment

17. Go Green Loan Program Contact: Louisville Forward 574-4140
Small businesses can take advantage of a below market-rate incentive program aimed at increasing energy efficiency and creating “green” jobs.
Can be used for energy-efficiency upgrades, or creating green products or services.