Presentation on theme: "Financing Energy Efficiency & Renewable Energy Clean Energy Now Conference October 8, 2010 Flat Rock, NC Dr. Ken Mitchell U.S. Environmental Protection."— Presentation transcript:
Financing Energy Efficiency & Renewable Energy Clean Energy Now Conference October 8, 2010 Flat Rock, NC Dr. Ken Mitchell U.S. Environmental Protection Agency Atlanta, Georgia
Many (many, many) ways to finance energy projects….. Private Equity Financing Project Finance Municipal Bond Financing Direct Municipal Funding Lease Financing Rebates Tax Incentives Revolving Loan Funds Grants Loans
Why Energy Efficiency is a GREAT Thing! A recent study by Duke University and GA Tech showed aggressive EE initiatives in the South could, by 2020: Prevent 16% growth in energy consumption in the residential, commercial, industrial (RCI) sectors Retire almost 25 GW of older power plants and avoid 49 GW from new plants Generate jobs and cut utility bills Energy bills reduced by $41 billion Electricity rate increases moderated 380,000 new jobs created Grow Regions economy by $1.23 billion Result in significant water savings 8.6 billion gallons freshwater conserved in 2020 (56% of projected growth in cooling water needs) 20.1 billion gallons conserved water by 2030 (or 45% of projected growth) Source: Southeast Energy Efficiency Study: Energy Efficiency in the South
Renewable energy technologies are key to creating a clean energy future for not only the nation, but the world Constantly replenished and will not run out Southeast has abundant renewable energy resources Can have a smaller environmental impact than traditional (e.g., fossil fuel) sources Why Renewable Energy? See: http://www.nrel.gov/learning/
What about green jobs? DOL Bureau of Labor Statistics Definition of Green Jobs Two Types of Green Jobs Produce goods and services which benefit the environment or conserve natural resources Jobs in which workers duties involve making their establishment's production processes more environmentally friendly or use fewer natural resources Green Goods and Services Energy from Renewable Sources Energy Efficiency Pollution Reduction and Removal, Greenhouse Gas Reduction, and Recycling and Reuse Natural Resources Conservation Environmental Compliance, Education and Training, and Public Awareness
Promoting EE and RE is Key for Governments Government leaders motivate others by setting an example Frequently, government is one of the largest local employers and property space owners Promoting EE and RE in government can be a strongly motivating factor for citizens and businesses Set an Example Save Money Reduce GHGs What did a group of recently elected officials have to say about the reason for implementing local sustainability practices?? Save Money
Promoting Clean Energy Alternatives Government Avenues for Promoting EE and RE Land use planning and control Direct services (public transportation) Internal business practices (buildings, transportation, water/wastewater, procurement, materials management) Community education and support Research Direct finance incentives and programs
Government Finance Capabilities Acquiring capital at competitive rates and terms Pooling/aggregating resources for public purposes Collecting taxes and fees Providing tax incentives, subsidized audits, rebates, loans, and grants
Some Example Options for Local Community Energy Finance Programs* (typical projects select one item from each column) CapitalizationSecurityCollection Methods Types of Projects Target Market GO bondsProperty - Lien with or without Priority Status Property Tax Bill Energy Efficiency Residential Private CapitalFull faith and credit of issuer Fee for Service (e.g., Utility Bill) Renewable Energy Commercial EECBG FundsInstalled/ Funded Asset Stand-alone Bill to Local Government Water Efficiency Multi-family Private DonorsOther Real Property Third Party Servicing Electric Vehicles Institutional *This list is not meant to be exhaustive, but rather to serve as an example.
Other Government Financing Programs Revolving loan funds Initial sum of money to establish a bank to fund energy efficiency, clean energy or energy conservation projects Loan loss reserve funds or interest rate buy downs Credit enhancement for third- party lenders Provides partial risk coverage to lenders by providing a pool of funds they can draw from to cover default losses Potential leverage: 10-20 times
Some EE and RE Financing Opportunities through EPA State Revolving Loan Program for water projects (e.g., waste grease to biodiesel, energy efficiency at wastewater treatment plants) Clean Diesel Grant program (next RFP opens November 1; http://www.southeastdiesel.org/)http://www.southeastdiesel.org/ Energy Star Tax incentives and rebates (www.energystar.gov)www.energystar.gov Climate Change Showcase Community Grants (http://epa.gov/statelocalclimate/local/showcas e/index.html)http://epa.gov/statelocalclimate/local/showcas e/index.html Other opportunities discussed at www.epa.gov/Cleanenergy and www.epa.gov/LMOP www.epa.gov/Cleanenergy www.epa.gov/LMOP Combined heat and power Landfill methane outreach program Etc.
Some Key Resources to Know EPAs Center for Environmental Finance http://www.epa.gov/efinpage/ The Environmental Finance Center (EFC) Network http://www.epa.gov/efinpage/efcn.htm In North Carolina, the EFC is at the University of North Carolina-Chapel Hill: http://www.efc.unc.eduhttp://www.efc.unc.edu EPAs State and Local Climate and Energy Program http://epa.gov/statelocalclimate/ EPAs Clean Energy Program http://epa.gov/cleanenergy DOEs American Recovery and Reinvestment Act Website http://www.energy.gov/recovery/index.htm Database of State Incentives for Renewables and Energy (DSIRE) http://www.dsireusa.org/