E NERGY P ROJECT A SSESSMENT D ISTRICTS ePAD CHP P OLICY S UB -C OMMITTEE M EETING A UGUST 14,

Nonprofit economic development agency –Public-Private Partnership Energy Efficiency Services –Education/Outreach –Project Management –Financing Solutions Total regional investment: $42 million G REATER C INCINNATI E NERGY A LLIANCE 2

W HAT IS ePAD? E NERGY P ROJECT A SSESSMENT D ISTRICT Clean energy finance tool –Energy efficiency, renewable energy, and water efficiency upgrades Works through property tax assessment –All assessments are voluntary Based on special improvement district model –With a few changes... Creates revenue stream to leverage third party capital 3

W HO CAN USE ePAD? Commercial Building Owners Industrial facilities Multi-family building (>4 units) Agricultural buildings and processes Not-for-profits & Government buildings –Organizations that do not pay taxes are eligible –Every building is listed on tax rolls

A DVANTAGES TO ePAD 5 Barriers to EE/RE Upgrades ePAD Solutions 1.Lack of funds 2.No lenders 3.Poor ROI – Short term funding 4.Debt limitations 5.Might sell property 6.Split incentives 1.100% external source 2.Unlimited private capital 3.Positive cash flow – Long term funding up to 30 yrs 4.Tax treatment as operating expense 5.Transfers to new owner 6.Tenants share cost/savings

ePAD P ROGRAMS T ODAY Projects Closed - $75 mil - Pipeline of $275+ million PACE programs with funded projects Early stage PACE program development Launched PACE programs PACE enabled

ePAD L EGISLATIVE P ROCESS HB 404 adopted by Kentucky House in March –Session ended before approved by Senate Back before the legislature in January Kentucky ePAD Council is a multi-year effort to support the adoption and implementation of ePAD in Kentucky

C ONTACT I NFO G REATER C INCINNATI E NERGY A LLIANCE 200 W. 4 TH S T., S UITE 600 C INCINNATI, OH W: GCEA (4232) WWW. GREATERCEA. ORG WWW. GCPACE. ORG 8 J EREMY F AUST B USINESS D EVELOPMENT D IRECTOR GREATERCEA. ORG