Florida HB 7179 & Energy Efficient Loan...
Transcript of Florida HB 7179 & Energy Efficient Loan...
RPR2011 2011 FESC Summit | 1
Florida HB 7179 & Energy Efficient Loan Programs
2011 FESC | Tuesday, September 27, 2011
Hal S. Knowles, III Program for Resource Efficient Communities
RPR2011 2011 FESC Summit | 2
Overview
Florida HB 7179 PAF/PACE Qualities of a successful energy efficiency
retrofit programs using revolving loan funds Insights from the building science side Discussion
RPR2011 2011 FESC Summit | 3
For More Information…
http://www.buildgreen.ufl.edu/FloridaGuide_order.pdf
http://www.floridaenergy.ufl.edu/?page_id=273
RPR2011 2011 FESC Summit | 4
Florida HB 7179
Florida House Bill (HB) 7179 provides counties, municipalities, and dependent special districts with the ability to enter into financing agreements with private property owners to fund qualifying building energy conservation/efficiency retrofits, renewable energy generation, and/or wind resistance improvements with repayment occurring through non-ad valorem property assessments on participating properties.
RPR2011 2011 FESC Summit | 5
Florida HB 7179: Energy Conservation/Efficiency
Air sealing and insulating Installing energy-efficient heating, cooling or ventilation
systems Building modifications to increase the use of daylight Replacement windows Installing energy controls or energy recovery systems Installing electric vehicle charging equipment Installing efficient lighting equipment Other similar measures to reduce consumption through
conservation or more efficient use of electricity, natural gas, propane, or other forms of energy
RPR2011 2011 FESC Summit | 6
Florida HB 7179: Renewable Energy
Biomass Geothermal Hydrogen Solar Wind
RPR2011 2011 FESC Summit | 7
Florida HB 7179: Wind Mitigation
Improving the strength of the roof deck attachment Creating a secondary water barrier to prevent water
intrusion Installing wind-resistant shingles Installing gable-end bracing Reinforcing roof-to-wall connections Installing storm shutters Installing opening protections Other similar improvements
RPR2011 2011 FESC Summit | 8
Florida HB 7179: Financing Program Name Variations
Property Assessed Clean Energy (PACE) Property Assessed Financing (PAF) Energy Loan Tax Assessment Programs (ELTAPs) Financing Initiative for Renewable and Solar
Technologies (FIRST) Voluntary Environmental Improvement Bonds
(VEIBs)
RPR2011 2011 FESC Summit | 10
Potential Barriers to Action (Beyond $)
Lack of information Transaction costs Lack of confidence in expected or anticipated
savings Split incentives Length of payback
RPR2011 2011 FESC Summit | 13
Financial Underwriting
Financing Sources: Banks Municipal Bonds Institutional Investors Community Development Financial Institution (CDFI) Qualified Energy Conservation Bonds (QECB) Other
RPR2011 2011 FESC Summit | 14
Financial Underwriting
Methodologies for segmenting, targeting, and soliciting households and businesses with the highest potential to achieve desired goals and objectives Measurable reductions Cost neutral investments Improved occupant comfort
Financing & billing vehicles Maximum and minimum loan thresholds and
cost eligibility
RPR2011 2011 FESC Summit | 15
Financial Underwriting
Repayment obligation security measures and interests Credit enhancement strategies to improve the
attractiveness of the EEFP to prospective borrowers and lenders Leveraged synergies in existing energy efficiency
and conservation incentives such as local electric utility demand side management programs and local, state, and federal rebates and tax credits
RPR2011 2011 FESC Summit | 16
Clean Energy Financing Sponsorship
Local Government-Sponsored Financing Program
Property Assessments
Collected on or in Utility Bill Direct Billing
RPR2011 2011 FESC Summit | 17
Clean Energy Financing Sponsorship
Utility-Sponsored Financing Programs
On-Bill
Tariff No-Tariff
Off-Bill
RPR2011 2011 FESC Summit | 18
Energy Underwriting
Energy consumption baselines and comparative metrics Methodologies and standards for calculating energy
savings Fiscally appropriate prerequisite and eligible pre-
qualifying measures (C+E) Tailor approaches based on energy consumptive use data
and energy audit feedback Useful lifespan potentials of measures (C+E) Homeowner education pedagogy and curricula Energy auditor and building contractor solicitation,
qualification, training, verification, management, and renewal
RPR2011 2011 FESC Summit | 19
Loan Servicing
Standardized procedures, methodologies, mechanisms, and documentation: Loan application, disbursement, repayment, default,
and reporting processes and other related intake and processing criteria
Customer service, management, and protection strategies Data collection, automation, and tracking
measures Financial quality assurance (QA) and quality
control (QC) protocols
RPR2011 2011 FESC Summit | 20
Energy Measurement & Verification
Measurement and verification (M&V) protocols Building performance quality assurance (QA) and
quality control (QC) protocols Estimating potential ROI for financed building
improvements Verify persistence of performance
RPR2011 2011 FESC Summit | 21
Effect of Program Attributes
Lower Interest Rate Higher
Senior Lien Junior Lien Springing Lien UCC1/Asset Based Unsecured
Property Attached Borrower Attached
On-Bill Repayment Separate Enclosure in Utility Bill Separate Billing
Multiple Credit Enhancements No Credit Incentives
Creditworthy Property Riskier Property
Creditworthy Borrower Attributes Riskier Borrower Attributes
Performance Energy Measures (More Efficient)
Prescriptive Energy Measures (Less Efficient)
RPR2011 2011 FESC Summit | 22
Hypothetical Calculations
Avg. Monthly Bill
Potential Avg. Savings with Retrofit Improvements
Package A Package B Package C 30% ↓ energy 30% ↓ water 10% ↓ insurance
30% ↓ energy 30% ↓ water
30% ↓ energy
Electricity @ $300 $90 $90 $90
Water @ $60 $18 $18 $0
Insurance @ $250 $25 $0 $0
Total Savings $133 $108 $90
RPR2011 2011 FESC Summit | 23
Hypothetical Calculations
Loan Term
Package C - Size & Terms of Loan for Financially Neutral Outcome
8% 7% 8% 9%
10 years $8,106 $7,751 $7,471 $7,104
15 years $10,665 $10,013 $9,417 $8,873
20 years $12,562 $11,608 $10,759 $10,003
& with a big enough hammer… Source: www.istockphoto.com
Energy is the ability to do work,
Source: http://www.istockphoto.com/stock-photo-13999264-old-rusty-car.php
22,658 human hours (or)
one human for 10.9 years (or)
330 miles in a VW bus
26 | 2011 FESC Summit
For conservation, there’s no place like home! Especially in Florida
What uses more energy? How we dwell?
Or how we move?
Source: Kathryn Ziewitz, University of Florida
27 | 2011 FESC Summit
HERS Reference Home (1500 sq ft – 3 bed) North Florida
28 | 2011 FESC Summit
Annual Cooling Load (1500 sq ft – 3 bed) Central Florida
29 | 2011 FESC Summit
House = Series of Nested Systems
Source: http://www.genewscenter.com/imagelibrary/detail.aspx?mediadetailsid=2369
30 | 2011 FESC Summit
Sustainable Dwelling (n. or v.) = Audit + Act + Adapt
Source: http://hes.lbl.gov/consumer
Source: Hal Knowles, University of Florida
31 | 2011 FESC Summit
Step 1: Air Seal
Source: Iowa Energy Center. Home Series 1: Home Tightening, Insulation and Ventilation. Source: http://www.energystar.gov/index.cfm?c=home_sealing.hm_improvement_sealing
32 | 2011 FESC Summit
Air Sealing Example: House 814
Source: John Linhoss, University of Florida
33 | 2011 FESC Summit
Results: House 814
• 11.2 % decrease in air infiltration • Originally built 1985 & Remodeled 2003 • 1200 sq.ft. single story • ACH50 – 8.84
House Pressure (Pascals)
Flow Rate (cfm) BEFORE WEATHERIZING
Flow Rate (cfm) AFTER WEATHERIZING
50 1669 1482
45 1560 1377
40 1417 1258
35 1342 1178
30 1224 1077
34 | 2011 FESC Summit
Step 2: Repair Ductwork
Source: http://www1.eere.energy.gov/consumer/tips/ducts.html Source: NREL PIX #04913 (http://www.nrel.gov/data/pix/)
35 | 2011 FESC Summit
Step 3: Insulate
Source: Craig Miller, University of Florida
Source: NREL PIX #15100 (http://www.nrel.gov/data/pix/)
36 | 2011 FESC Summit
Step 4: Evaluate Windows
SHGC ( ≤ 0.40 )
U-Factor ( ≤ 0.65 )
Visible Transmittance ( Higher = Better )
Air Leakage ( ≤ 0.30 cfm/sq ft )