2015 CALED CONFERENCE PACE Financing

Background The PACE Program provides financing to property owners to improve their homes and businesses with energy efficient, renewable energy and water conserving improvements. Funding is paid back through property taxes over time. State legislation (AB 811) enables this Program. One example of a PACE program is the HERO Program, intiated in December 2011 for WRCOG members. WRCOG expanded its Program (now called California HERO) to allow other cities and counties in the State to participate.

Economic Stimulus Lower Utility Bills New Job Creation Increased Property Values Environmental Benefits Reduced CO2 Emissions Decreased Energy Consumption Substantial Water Savings Impacts

Who qualifies to participate? Property owners may be individuals, associations, commercial business entities, cooperatives or non-profits Bottom line: Any qualifying owner paying property taxes have clear title to property be current on property taxes be current on mortgage payments have some equity in the property no bankruptcies lender consent (commercial only)

How does it work for the property owner? It’s a voluntary program Property owners apply for Program coverage and select improvements desired If approved, property owner enters into contract with administrator; all up-front costs are paid and assessment lien is placed on property Property owner / subsequent property owner repays through property tax assessment over a period of years

Types of projects

Alameda County Albany Berkeley Contra Costa Antioch Brentwood Concord Danville El Cerrito Lafayette Martinez Oakley Pleasant Hill Pittsburg Richmond San Pablo San Ramon Walnut Creek El Dorado County South Lake Tahoe Fresno County Clovis Fresno Fresno County Unincorporated Kerman Kingsburg Parlier Reedley Sanger Selma Humboldt County Eureka Imperial County Brawley Calexico Calipatria El Centro Holtville Imperial Imperial County Unincorporated Kern County Arvin Bakersfield California City Delano Kern County Unincorporated McFarland Ridgecrest Shafter Taft Tehachapi Wasco Kings County Lemoore Los Angeles County Alhambra Arcadia Avalon Azusa Baldwin Park Bellflower Bradbury Carson Claremont Commerce Covina Diamond Bar El Monte El Segundo Gardena Glendora Hawthorne Hermosa Beach Industry Inglewood Irwindale La Cañada Flintridge Lancaster La Verne Lawndale Lomita Malibu Monrovia Montebello Monterey Park Palmdale Pomona Rancho Palos Verdes Redondo Beach Rolling Hills Rolling Hills Estates Rosemead San Dimas San Fernando San Gabriel San Marino Santa Monica Sierra Madre South El Monte South Pasadena Temple City Torrance Walnut West Covina Madera County Madera County..Unincorporated Merced County Atwater Livingston Merced Merced County Unincorporated Mono County Mammoth Lakes Mono County Unincorporated Monterey County Carmel-by-the-Sea Del Rey Oaks Monterey Monterey County Unincorporated Pacific Grove Napa County American Canyon Calistoga Napa Napa County Unincorporated St. Helena Yountville Orange County Aliso Viejo Anaheim Brea Buena Park Costa Mesa Cypress Fountain Valley Garden Grove Huntington Beach La Habra La Palma Lake Forest Laguna Hills Newport Beach Placentia Rancho Santa Margarita San Clemente Santa Ana Stanton Tustin Westminster Yorba Linda Riverside County Beaumont Blythe Cathedral City Coachella Desert Hot Springs E. Riverside County …Unincorporated Indian Wells Indio La Quinta Palm Desert Palm Springs Rancho Mirage Sacramento County Citrus Heights Elk Grove Galt Rancho Cordova Sacramento County ….Unincorporated San Diego County Carlsbad Coronado Del Mar El Cajon Encinitas Escondido Imperial Beach La Mesa Lemon Grove National City Oceanside Poway San Diego San Diego County Unincorporated San Marcos Santee Solana Beach Vista San Francisco County San Francisco San Francisco County …Unincorporated San Joaquin County Lodi Manteca Ripon Stockton Tracy San Mateo County Burlingame Daly City Foster City Menlo Park Redwood City San Bruno San Carlos San Mateo San Mateo County Unincorporated South San Francisco Woodside Santa Barbara County Lompoc Santa Clara County Morgan Hill Gilroy San Jose Santa Cruz County Scotts Valley Santa Cruz County Unincorporated Solano County Benicia Dixon Solano County Unincorporated Suisun City Vacaville Vallejo Sonoma County Healdsburg Sebastopol Sonoma Sonoma County Unincorporated Stanislaus County Hughson Modesto Newman Oakdale Riverbank Turlock Waterford Tulare County Tulare Visalia Ventura County Fillmore Ojai Oxnard Port Hueneme Santa Paula Simi Valley Yolo County Winters WRCOG Banning Calimesa Canyon Lake Corona Eastvale Hemet Jurupa Valley Lake Elsinore Menifee Moreno Valley Murrieta Norco Perris Riverside Riverside County Unincorporated San Jacinto Temecula Wildomar ________________ HERO Communities as of April 14, 2015 Indicates launched California HERO cities and counties and counting

Program results 221 cities and counties have joined WRCOG’s California HERO Program Represents 6+ million households $431+ million for 20,000+ completed projects have been funded: $253 million in Riverside County $178 million in California HERO 25,000+ applications approved $2.1+ billion in approved applications

Thank you Phil Bowman CEO Muni-Fed Energy, Inc Questions ?