CONFIDENTIAL Energy Efficiency Financing Innovation on College Campuses Billion Dollar Green Challenge Panel AASHE, October 11, 2011

CONFIDENTIAL Energy Efficiency as the First Fuel EE should be at the top of every college’s “To Do” List  Best way to reduce energy costs, address deferred maintenance  Most cost effective way to reduce carbon emissions Good news is that most energy efficiency projects can be paid for through energy savings Bad news is that delay means colleges are throwing away $$  Continued delay often means the loss of $100,000 – $300,000 / year  Over 5 years, loss can reach $500,000 to $1,500,000+  Result being many more tons of GHG emissions 2

CONFIDENTIAL Financing as Key to Accelerating EE Colleges know they should do it, but concerned about cost  In tight budgetary times, can’t seem to get it done  EE champions can’t persuade the CFO to move forward Innovative financing mechanisms & tools can help The Roadmap  Strategize EE priorities through careful audit of campus  Utilize innovative financing approach suited to your school  Build support with key campus stakeholders  Complete through major, phased program 3

CONFIDENTIAL 4 Energy Efficiency is the Best Investment Why your CFO should be on your side!!

CONFIDENTIAL Traditional Financing Approaches Funding from college’s operations budget Electric or natural gas utility rebates Performance contracts (10-20 year ESCO financing) Tax exempt bond financing Use them if they work for your college ! 5

CONFIDENTIAL Additional Financing Approaches Revolving Loan Funds  Such as through Billion Dollar Green Challenge  Great way to create momentum and establish fund for EE, etc. Student fees for sustainability/EE/RE investments Green donors Endowment financing Leasing arrangements Power purchase agreements State financing authorities (as in PA program) 0% or low interest financing availability (states or utilities) 6

CONFIDENTIAL 7 The Power of Innovative Finance Utility Rebates Operating budget contributions Illustrative College Energy Efficiency Installation Business as Usual = $8 million program over 5 years

CONFIDENTIAL 8 Power of Innovative Finance – A 5 year Program Utility Rebates Ops Spend Business as Usual = $8M Being Innovative = $24M Green Donors Endowment Financing Reinvested Savings Utility Rebates Ops Spend $

CONFIDENTIAL Thank You! Billion Dollar Green Challenge Panel AASHE, October 11, 2011