1. 1 All financing proposals that are non-routine in nature and involve unique or unusual concepts or characteristics… (OMB, A-11) Third Party Financing: “Intermediary other than the U.S. Treasury can raise money in private capital markets on behalf of a federal program…” CBO OMB But Wait, What is this Whole “Budget Scoring” Thing?

2. The Basics 2

3. What is OK Revenue generating EULs - Non-federal income stream to support private borrowing Removing government expense for maintaining underutilized land Unlocking previously unavailable real estate for other public or private use Exchange for property or services (GSA) Historic property outleasing (Section 111) Energy savings (including ESPCs) 3

4. To see, or not to see ESPCs PPAs EULs for private use Energy EULs with minimum federal offtake Public-Public Partnerships (P4s) Long term federal tenant leases Stand-alone utility projects under ESPC Government purchase of 100% of output from energy EUL New MHPI ground-up transactions 4 Yes! Umm, probably not… But then again…. this is Washington (read: subject to change)

5. Recent Trends in Budget Scoring and PPPs OMB: Traditional Operating lease rules – more stringently followed CBO position to score “build to suit” leases as capital leases Congressional Review: - Recent Hearings and Roundtables (Senator Carper, Rep. Barletta, Rep. Chaffetz, House Veterans Affairs Committee) GAO: GAO-14-239 Capital Financing: Alternative Approaches for Federal Real Property (http://www.gao.gov/products/GAO-14-239). Stakeholder Input – Call for Change - Think tanks and Associations are blogging and advocating scoring change 5