Qualified Energy Conservation Bonds (QECBs) In 2009, $3.2 billion in Qualified Energy Conservation Bonds (QECBs) were issued Broad range of uses: Energy efficiency Renewable energy Water conservation Alternative vehicles and fuels Green Community Programs

QECBs in Virginia $80.6 million in QECBs was allocated to Virginia Executive Order Number 21 (2010) Sub-allocated $45.4 million to 16 large local governments Sub-allocations ranged from $1 million to $10 million Executive Order Number 36 (2014) Reauthorized the $45.4 million in sub-allocations to the 16 LLGs $41 million waived back to the Commonwealth $35 million remained at the state level $15 million at the discretion of the QECB Allocation Direction $20 million designated for the Virginia’s first Green Community Program

Green Community Programs Fairly broad characterization under IRS Guidelines: Tied to policy at the statewide level – governmental or utility sponsored – supporting energy efficiency and energy savings; Benefits buildings generally available to the public (governmental or institutional); or Program generally available to the public (individuals and businesses) within certain guidelines Broad definition of Qualified Conservation Purposes with broad project types – energy efficiency, renewable energy, and alternative fuels Fewer “strings” attached for projects: not limited to larger localities; no private activity prohibition; no strict EE requirements; no inherent loan size restrictions

VirginiaSAVES In September 2014, the Commonwealth launched VirginiaSAVES, the state’s first Green Community program “Providing the public and private sectors with the tools they need to reduce energy consumption and save on energy costs is critical for building a new Virginia economy. VirginiaSAVES encourages investments that will save money, improve energy security, lessen Virginia’s dependence on federal spending and attract new jobs and advanced energy industries.” — Governor McAuliffe

Current Status of VA SAVES Pittsylvania County Schools $3.3 million energy efficiency loan Private K-12 School $2.5 million energy efficiency loan Warren County Public Schools $8.8 million energy efficiency loan An additional $20 million in QECB’s has been authorized Remaining funding = $25.5 million Possible Future Projects Hydroelectric dam Solar arrays Energy efficiency projects

Pittsylvania County Schools $3.3 million loan Project Financing: Term: 15 years Net interest rate: 0.70% ESCO: Improvements: Lighting and lighting controls upgrades; boiler replacements; chiller retrofits; building automation systems replacements and upgrades Savings: $220,000 annual energy, operations and management savings ($4.6 million over course of project) 2,125,841 kWh reduction annually Reduction in green house gas emissions is equivalent to removing 309 cars from Virginia roads or eliminating the emissions from 525 tons of waste sent to Virginia landfills