1. Contra Costa and CaliforniaFIRST PACE Financing for Home Energy and Water Upgrades October 8, 2014Jonathan Kevles

2. Agenda Why PACE Overview of CaliforniaFIRST Qualifying for Financing w/CAFIRST Projected Benefits in Contra Costa County Status of CAFIRST: Contra Costa County’s Local Governments Role of Local Governments in the CAFIRST Program

3. Why PACE? The Challenge: Homes use more energy and water than necessary. Investments to reduce energy and water use are worth the money... over the long-term Solar is now economical for homeowners... over the long- term But, these investments come with a high price tag Many homeowners don’t have the cash lying around, or can’t borrow under terms that make sense Terms that are too short Interest rates that are too high The utility bill savings might take more years to recoup the investment than the homeowner will stay in the home

4. Why PACE? The Opportunity: PACE provides capital with no upfront cost to the homeowner PACE provides financing terms of up to 20 years CaliforniaFIRST interest rates From 6.75% (5 years) to 8.75% (20 years) Interest portion of payments are typically tax deductible for homeowners, lowering the effective interest rate PACE repayment obligations, being on property tax bill, can stay with the property, transferring from one owner to the next PACE can fund: Water conservation Energy efficiency Renewable energy And improvements to a home necessary to accommodate these improvements (such as an energy panel upgrade)

5. CaliforniaFIRST: Team Structure CaliforniaFIRST Program Sponsor and Bond Issuer: CSCDA Program Administrator: Renewable Funding LLC Originator: Renewable Funding/ EGIA Bond Counsel: Jones Hall Trustee: Wilmington Trust Tax Administrator: David Taussig & Associates

6. 6 Components of CaliforniaFIRST Operations 1. Contractor Management Recruitment Enrollment & Training On-Going Management Dispute Resolution 2. Application Processing Consumer Marketing Call Center Property & Project Underwriting Document Generation 3. Project Installation to Lien Recordation Completion Certificate & Project Validation Lien Recordation & Validation 4. Bond Issuance to Funding Document Generation Approvals & Signatures Bond IssuedFunds Disbursed 5. Repayment Placement on Tax Roll Assessment Repayment Delinquency Management

7. 7

8. 8 Qualifying for Financing  No minimum credit score required  No recent missed mortgage or property tax payments  Homeowner must have at least 10% equity in the home  Project cost may not exceed 10% of the estimated market value of the home (or $200,000, whichever is less)  Minimum project cost: $5,000  Products to be installed must meet minimum efficiency and performance standards  Benefits  Same day approval  Project financing does not hit homeowner’s debt-to-income ratio  Up to 20 year repayment terms  Tax deductibility of interest portion of lien payments

9. 9 Potential Benefits in Contra Costa County Projected Impacts From One Year of Activity 2% of Detached, Single Family, Owner Occupied Homes4,000 Megawatt Hours of Solar-Generated Electricity10,600 MWHs of Saved Electricity4,100 Therms of Saved Natural Gas276,000 Gallons/Acre-Feet of Saved Water92,000,000 / 283 Tons of GHG Emission Reductions9,900 (or 2,100 cars) Jobs Generated (direct, indirect, and induced)750 Property Value Increases$164 million Gross Reduction in Utility Bills$2.7 million

10. 10 Status of CaliforniaFIRST in Contra Costa County Cities and County Status – By Late 2014, 40%+ of DSF O-O Homes Will Be CAFIRST Eligible AntiochOakley BrentwoodOrinda ClaytonPinole ConcordPittsburgOpted-In DanvillePleasant Hill El CerritoRichmondOpted-In HerculesSan Pablo LafayetteOpted-InSan Ramon MartinezOpted-InWalnut CreekOpted-In MoragaUnincorporated CCCOpted-In  To be eligible for CAFIRST financing, a homeowner’s local government must “Opt-In” to the CAFIRST Program  Once the Statewide Validation is complete (late 2014), all cities will be active that a) have already Opted-In, or b) subsequently choose to do so

11. 11 Role of Local Governments in the CAFIRST Program  CaliforniaFIRST is a program of CSCDA and exclusively administered by Renewable Funding & its team  Requires no actions once CAFIRST “Opt-In” resolution is passed (or re-affirmed)  And CSCDA membership resolution, if necessary  Local governments’ elected and appointed officials and staff are invited to help in promotion/marketing  CaliforniaFIRST recognizes local government as a partner  Strong working relationship, understanding of local government perspective  Job creation, reduce economic leakage  Climate Change Action Planning – for Mitigation and Adaptation, AB 32-related compliance

12. 12 Jonathan Kevles| jkevles@renewfund.com | (510) 350-3709jkevles@renewfund.com www.CaliforniaFIRST.orgwww.CaliforniaFIRST.org | info@californiafirst.org | (844) 589-7953info@californiafirst.org