1. Home Energy Retrofit Forum Simón Bryce | May 3, 2010 Reno, Nevada

2. Original Architects of PACE Contracts cover 200+ governmental jurisdictions, 20+ million people Contracts in CA, WA, OR, NM, CO, OH, MD, LA Offices: CA, OR, NM, IL, DC

3. How PACE Works Property owner repays bond through property tax bill (up to 20 years) Proceeds from Revenue bond or other financing provided to property owner to pay for energy project Property owners voluntarily sign-up for financing and install energy projects City or county creates type of land-secured financing district or similar legal mechanism

4. The PACE Breakthrough: Senior Lien Senior Lien Revenue Bond General Obligation Bond Self-Financed By Municipality Long-Term Bank Financing Other Bond Structures

5. Municipal Risk vs. Competitive Interest Rate Revenue BondGeneral Obligation Bond Debt ServiceAssessmentGeneral Fund LiabilityParticipating PropertyGeneral Fund Interest RateBased on Pool of Participating Properties (Diversification & Creditworthiness) Municipal Credit Rating

6. Revenue Bonds Emerge So how to secure a competitive interest rate? Lower Interest Rate vs. Reduce Participation Costs (“APR”) Municipal Guarantee “Moral Obligation” or other form of credit enhancement Proper “Underwriting” Criteria, Property Qualification (White House Policy Framework) Quality Assurance/Quality Verification Direct Municipal Subsidy (reserve fund; energy audit) Incorporation of Rebates & Incentives “Micro Bonds” – Interim financing to provide on-demand funding

7. PACE Success LocationInterest Rate Max Loan Repayment Term Project Types Total Amount Berkeley, CA (Micro Bond/Revenue Bond) 7.75%$37,50020 yearsSolarUp to $80M Boulder, CO (Revenue Bond/Moral Ob.) 6.68% and 5.20% $50,00015 yearsSolar & EEUp to $40M Palm Desert, CA (General Fund) 7.0%$60K or approval 5, 10, 15 or 20 years Solar & EECurrently $10M+ Sonoma County, CA (Treasury/Utility) 7.0%$60K or approval 5, 10, 15 or 20 years RE, EE & Water Up to$100M San Francisco (Micro Bond/Revenue Bond 7.0%$50K5, 10, 15 or 20 years RE & EEUp to $150M

8. CaliforniaFIRST 14 Counties, 146 Cities - Launch: Summer 2010 Sponsor: CA Statewide Communities Development Authority Team: Renewable Funding; Royal Bank of Canada Capital Markets Eligible Projects: renewable energy, energy efficiency, water efficiency Requires energy efficiency projects before installing renewables Centralized administration and bond issuance, local customization Awarded $16.5 Million ARRA grant

9. Program Design Education & Administration Financial Package Renewable Funding Turnkey Services

10. Simón Bryce| simon@renewfund.com | (510) 451-7906