1. Making It Count 2: Understanding the Value of Energy Efficiency Financing Programs Funded by Utility Customers February 18, 2016

2. Making It Count 2 Features: Chuck Goldman, Lawrence Berkeley National Laboratory Bryan Garcia, Connecticut Green Bank Deana Carrillo, California Alternative Energy and Advanced Transportation Financing Authority Andy Brydges, Connecticut Green Bank Chris Kramer, Energy Futures Group

3. www.seeaction.energy.gov About SEE Action 3 Network of 200+ leaders and professionals, led by state and local policymakers, bringing EE to scale at state & local levels Facilitated by DOE and EPA; successor to the National Action Plan for Energy Efficiency The SEE Action Network is active in the largest areas of challenge and opportunity to advance energy efficiency Goal: All cost-effective energy efficiency by 2020

4. www.seeaction.energy.gov Support on energy efficiency policy and program decision making for: Energy office directors, utility regulators, air directors Legislators, governors, mayors, county officials Consumer advocates, other stakeholders Based on experience, a library of: Best practices Considerations for decision making Analysis of current approaches What SEE Action Does 4

5. www.seeaction.energy.gov Making it Count: Report’s Objectives 5 1.Explore options for placing EE financing in an appropriate regulatory context. 2.Explore ways of adapting EE program planning and evaluation tools to the unique features of EE financing.

6. www.seeaction.energy.gov California Public Utilities Commission has authorized 7 EE Financing Pilots  First open-market, third-party capital, on-bill repayment platform in country  Use of ratepayer funds as a credit enhancement to leverage private capital participation  Project Flexibility to drive deal flow: 70% of financed proceeds must be for EE measures; 30% may be for other improvements  Robust data collection  Pre and post project energy consumption data  Loan/lease performance data  $8 million Marketing, Education & Outreach Effort  Pre and post project energy consumption data  Loan/lease performance data

7. www.seeaction.energy.gov CHEEF Pilots Residential Program Comparison Residential Energy Efficiency Loan Assistance Program Efficiency Finance Line Item Charge Master-Metered Affordable Multi-Family Products Loans, Retail Installment Contracts Loans, Retail Installment Contracts, Payment Plans Loans, Leases, ESAs RepaymentOff-BillOn-Bill Credit Enhancement ($22MM total) Loan Loss Reserve Debt Service Reserve Fund Occupancy RequirementTenant or OwnerOwner OccupantsOwner Service TerritoryStatewidePG&EStatewide California Hub for Energy Efficiency Financing (CHEEF)

8. www.seeaction.energy.gov California Hub for Energy Efficiency Financing (CHEEF) CHEEF Pilots Commercial Program Comparison Small Business LeaseSmall Business LoanCommercial OBR Products Leases & ESAsLoansLoans, Leases, ESAs Repayment On-Bill and Off-BillOn-Bill Credit Enhancement ($10MM total) Loan Loss Reserve None Occupancy RequirementTenant or owner occupants Borrowers Small Businesses and Non-Profits Small Businesses & Non- Profits Any size business, government and Non-Profit

9. www.seeaction.energy.gov Time Clean Energy Deployment (SCT – ∞) Leverage Private Capital Investment A green bank is a public financing authority that leverages private capital with limited public- purpose dollars to accelerate the growth of clean energy markets Limited Public- Purpose Dollars (PACT – ∞) What is a Green Bank Utility Bill Clean Energy Improvement Financing Payment BEFORE AFTER (PCT – 1) Net Savings Jobs CO 2 Grid Electricity Clean Energy Improvement (DER) Make clean energy more affordable and accessible to consumers - Cheaper - Cleaner - More Reliable

10. www.seeaction.energy.gov Connecticut Green Bank – Products 10 Residential and Commercial Financing Programs Comparison Energize CT Smart-E Loan CT Solar Loan (GoSolarCT) CT Solar Lease (GoSolar CT) C-PACE Market SegmentResidential Residential and Commercial Commercial Products Loans through local lenders Loan Lease fund with tax equity and debt syndicate Benefit assessment to own, lease, PPA RepaymentOff Bill Property Tax Bill Credit Enhancement2 nd LLRLLR, Sub Debt Warehouse, Sub Debt Occupancy Requirement Owner Service TerritoryStatewide (Opt-In by Town) Capital Deployed~$10MM~$6MM +~$50MM~$75MM

11. www.seeaction.energy.gov Topic Areas for Panelist Discussion  Importance of Financing Evaluation  Market Transformation: Objectives, metrics, and evaluation approach  Overall policy objectives: Financing as Substitute vs. Complement  Assessing the impact and influence of your financing program: Attribution  Regulatory/Legislative context  Audience Q/A

12. www.seeaction.energy.gov Questions: Importance of Financing Evaluation 1.Overall Importance: Financing evaluation is an emerging field. What makes it so important to your jurisdictions? 2.Leadership: Describe your approach to financing evaluation. In particular, what puts your jurisdiction at the forefront of this emerging field? 3.Goals & Objectives: What are the goals and objectives of your evaluation process? What questions do you hope to answer through evaluation? How important is increasing energy savings as a metric you are trying to observe? What are your other metrics?

13. www.seeaction.energy.gov Importance of Financing (cont.) 4.Outside Expertise: Talk about your decision to hire outside financing evaluation firms. Why did you seek outside expertise to help you in this area? What skills do they bring to the table? 5.Stakeholder Process: What other stakeholders have you brought into the process to help you develop your approaches to financing evaluation? What processes have you used to gather feedback from these stakeholders? 6.Suggestions: Would you recommend that other jurisdictions engage in an EM&V process for their financing programs?

14. www.seeaction.energy.gov Market Transformation: Objectives, metrics, and evaluation approach “Making It Count” discusses a number of best practices when evaluating a program from a market transformation perspective, including developing a program logic model and a timeline of interim metrics to track progress. 7.Do your programs operate according to a logic model, and if so, could you describe it? 8.What kind of interim metrics might you expect to develop to correspond to this logic model and on what timeframe? 9.What ultimate impact do you expect your programs to have on the broader market?

15. www.seeaction.energy.gov Connecticut Green Bank – Program Logic Model (Leadership) 15

16. www.seeaction.energy.gov Overall policy objectives: Financing as Substitute vs. Complement “Making It Count” distinguishes between using financing as a substitute vs. a complement, where “substitute” means exploring the potential to use financing as a way to reduce the use of utility customer funds, while “complement” means using financing alongside other programs to increase total benefits. 10.Is your jurisdiction interested in exploring both of these possibilities?

17. www.seeaction.energy.gov Assessing the impact and influence of your financing program: Attribution “Making It Count” also suggests that it may be particularly important to isolate impacts that are directly attributable to program financing if you’re exploring the possibility of using it as a substitute for other programs, since you may want to know whether savings will go up or down without other programs still in place. 11.How is your jurisdiction approaching the question of whether savings are directly attributable to program financing?

18. www.seeaction.energy.gov Regulatory/Legislative Context 12.What is the role of the PUC or other governing body in overseeing the financing program and evaluation process in your jurisdiction? 13.What has been the role of the legislature in your jurisdiction in authorizing financing programs or determining how financing programs would be evaluated?

19. www.seeaction.energy.gov Contact Information 19 Chris Kramer (802) 482-5001 Energy Futures Group ckramer@energyfuturesgroup.com Johanna Zetterberg (202) 288-7414 Coordinator for SEE Action Network Johanna.Zetterberg@ee.doe.gov Chuck Goldman (510) 486-4637 LBNL Energy Analysis & Environmental Impact Division cagoldman@lbl.gov Bryan Garcia Connecticut Green Bank bryan.garcia@ctgreenbank.com Deana Carrillo CAEATFA deana.carrillo@treasurer.ca.gov Andy Brydges Connecticut Green Bank andrew.brydges@ctgreenbank.com