1. PACE P ROPERTY A SSESSED C LEAN E NERGY National League of Cities Congressional City Conference, March 2012

2. W HY PACE? Private Market Solution to meet National Goals www.pacenow.org

3. Property owner pays assessment on tax bill (for up to 20 years) Local government provides financing – adds assessment to tax roll Property owner opts-in and makes energy improvements PACE IS P ROPERTY A SSESSED C LEAN E NERGY Local government creates assessment district How PACE Works www.pacenow.org

4. PACE – EARLY MOMENTUM WITH R ESIDENTIAL P ROGRAMS 2008 to 2011 Legislation passed in 27 States DOE best practices and guidelines Pilot programs in California, New York, and Colorado 3,176 EE/RE Projects $68+ million in spending 1,000+ Estimated Jobs FHFA stalls residential programs Legislation and Litigation Focus shifts to commercial programs www.pacenow.org PACE is a World Changing Idea … Scientific American, 2009

5. L EGISLATION TO R ESTORE R ESIDENTIAL PACE PACE Assessment Protection Act of 2011 HR 2599 introduced by Rep Nan Hayworth on July 20, 2011 Requires GSEs to establish fair underwriting standards for PACE mortgages Programs must conform with enhanced DOE standards set forth in the bill, such as: o Homes have at least 15% equity o Audit and work by qualified contractors that produce positive SIR 51 Co-sponsors – (Bipartisan support - 29 D, 21 R) Nita Lowey is a co-sponsor Stalled in Financial Services Committee www.pacenow.org

6. L ITIGATION TO R ESTORE R ESIDENTIAL PACE U.S. District Court in Northern California orders Rulemaking Federal Administrative Procedures Act requires FHFA to seek and weigh public comment prior to imposing rules 1.Advance Notice of Proposed Rulemaking published January 26 th Public has until March 26 th to enter comment Comment can take any form, may address any of the FHFA’s stated concerns, and can provide proposed guidance (i.e. a “rule” recommendation) A.PACE assessments are valid B.PACE poses no meaningful risk to mortgage lenders C.PACE programs can be designed to protect the interests of local governments, homeowners, and mortgage lenders D.PACE programs should be allowed to proceed Resources, including Template Letter and Talking Points at www.pacenow.orgwww.pacenow.org 2.FHFA issues Proposed Rule on April 26 Public will have at least 30 days to enter comments on proposed rule 3.FHFA issues Final Rule www.pacenow.org

7. R ESIDENTIAL P ROGRAM P ERFORMANCE www.pacenow.org Program Administrators, March 9, 2012

8. F OCUS S HIFTS TO C OMMERCIAL PACE www.pacenow.org Commercial PACE

9. www.pacenow.org P OTENTIAL FOR C OMMERCIAL PACE Source: McKinsey & Company, Unlocking Energy Efficiency in the US Economy, 2009 Potential for PACE – 10 years 100 bft 2 of Total Commercial by 2021 20% Retrofitted w PACE $50 Billion - direct spending (at $2.50 ft 2 ) 1+ Million jobs

10. www.pacenow.org B ARRIERS TO EE - C OMMERCIAL Source: EE Indicator – NA 2010, Johnson Controls and International Facilities Management Association (IFMA)

11. PACE S OLVES C OMMERCIAL B ARRIERS www.pacenow.org

12. PACE C OMMERCIAL – E MERGING P ROGRAMS 12 Sonoma County, CA Washington, DC WRCOG, CA Los Angeles, CA California PACE-Regional Santa Fe, NM Northeastern OH Ann Arbor, MI Boulder County, CO San Francisco, CA Palm Desert, CA Placer County, CA Milwaukee, WI FL-Regional Northampton, MA Bedford, NY Kansas City, MO Sacramento, CA State with emerging commercial PACE program State with PACE enabling legislation Edina, MN Commercial PACE program operational (or near) Commercial PACE program in development www.pacenow.org

13. C OMMERCIAL P ROJECTS TO D ATE www.pacenow.org

14. A CCELERATING C OMMERCIAL PACE PACENow focus on 4 key challenges 1.Support for establishing programs Legislation Local, regional, statewide Open market vs Sole source 2.Initiatives to drive CRE owner demand 3.Strategies for gaining support from existing mortgage lenders Track record of support from national, regional, and local lenders 4.Short-term and long-term financing strategies Short-term: owner arranged Long-term: aggregation of assessments and securitization www.pacenow.org