green capital global challenge - PBworksgreenideacity.pbworks.com/f/Carbonwarroom+case+study+Vancouver.… · Sir richard BranSon (uK) The Virgin Group ... Postcode Lottery. idan

green capital — global c hallenge

february 15-18, 2010vancouver

Connecting Cit ies to Capital for Low-Carbon Economic Development

T a b l e o f C o n T e n T s

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Introduction.to.Carbon.War.Room . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3Introduction.to.City.of.Vancouver..Vancouver: A Bright Green Future — Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5Green.Capital.—.Global.Challenge.Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Green.Capital.—.Global.Challenge.Roadmap. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Sponsor.Profiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14

Proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17Agenda. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19Attendee.Bios .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .25Attendee.List.by.Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Background Materials .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .61City.Reference.Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

Carbon War Room City Process Memo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65Guide to Energy Efficiency & Renewable Energy Financing Districts For Local Governments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69Green Finance SF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117PACE: Property Assessed Clean Energy Financings — Capital Markets Financing Issues Paper. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .119

Finance.Reference.Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .125Carbon War Room Finance Process Memo. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .127

Industry.Reference.Materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133Green Recovery: A Program to Create Good Jobs and Start Building a Low-Carbon Economy. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135

Acknowledgments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188Notes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189

T o o u r G r e e n C a p i Ta l — G l o b a l C h a l l e n G e aT T e n d e e s

Welcome to the 2010 Winter Olympic Games and the Carbon War Room’s kick off of its Green Capital — Global Challenge.

We’re glad that you are able to join us and hope that your stay in Vancouver is both rejuvenating and educational.

We would like to thank our hosts, the City of Vancouver, and acknowledge their partnership in this effort. They are the perfect hosts for this event not only because they have been green leaders for many years but also – in the spirit of global competition embodied in the Olympics – the City has announced their plans to be “the greenest city.”

Like many of you in attendance, the challenge now is to implement a program that can achieve this aspiration.

Implementation is the focus of our discussion over the next two days and we will be hearing from mayors, sustainability directors, finance leaders, and industry leaders about particular implementation challenges and “lessons learned.” Our focus is on energy efficiency financing as one of the biggest opportunities for low-carbon economic growth and investment.

Then, in the 45 days following this conference, we will be soliciting funding targets from mayors who want to implement energy efficiency financing programs in their cities. It is the mission of the Carbon War Room, with our partners, to deploy capital to build sustainable businesses that support a sustainable future.

We see the cities – as well as the finance institutions and energy equipment providers – as our partners in developing the post-carbon economy.

We have a very full agenda, so please take a few minutes to read through the information in this packet. It includes our itinerary, connections to your fellow attendees, and a selection of background materials on innovative energy efficiency financing.

We look forward to working with you on a problem that has stalled the energy efficiency industry since the 1970s but which innovative financing mechanisms such as PACE are now helping us address. Thank you for joining us.

Sincerely,

Jigar Shah CEO Carbon War Room

I n t r o d u c t I o n

Our MissiOn

The Carbon War Room harnesses the power of entrepreneurs to unlock market-driven solutions to climate change.Our team of business, non-profit, and government innovators creates and implements solutions that benefit both the economy and the environment.

THE Crisis — Danger and Opportunity

Climate change presents the greatest challenge in human history – a challenge that transcends national boundaries, ideology, race, and ethnicity. Overcoming that challenge will result in one of the greatest wealth creation opportunities ever – a modern industrial revolution that will radically reshape society and our planet.

Victory over this crisis is vital, creates prosperity, and must be our highest priority. — This is our Great War!

Our FOCus — Power of Entrepreneurs

Systems do not change themselves; the world needs entrepreneurial leadership to create a post-carbon economy where humanity can thrive within global resource limitations.

The world can no longer afford to be intimidated by the magnitude of the climate crisis, nor into believing that we must choose between economic prosperity and environmental security. It is time for our most talented and driven leaders to come together, collaborate, and innovate until victory is assured.

Our APPrOACH — Market-Driven solutions

The Carbon War Room gathers world-class intelligence and convenes the people and organizations that know and care most about solutions across relevant areas. We then work to determine key leverage points and the best implementers. Once established, we drive the plan to success.

Our main targets include the market barriers that reinforce the status quo and prevent capital from flowing to sustainable solutions. Barriers include legacy technology, information, and policy gaps, but also include a lack of common standards and metrics, and failed market structures.

We focus where market-driven solutions to climate change can be applied to generate gigaton-level carbon savings, develop and demonstrate those solutions, and then catalyze their rapid adoption worldwide.

green capital — global challenge 3

i n T r o d u C T i o n T o C a r b o n Wa r r o o m

Our COrE FunCTiOns — Know and ActThe War Room has three core functions:

• The inTelligence Team maintains a comprehensive map of the carbon industrial complex, enabling us to get a complete, integrated view of the targeted “Theaters,” including:

TRANSPORT, ELECTRICITY, BUILT ENVIRONMENT, INDUSTRY, LAND USE, EMERGING ECONOMIES, AND CARBON MANAGEMENT.

Theaters are separated into 25 tightly defined “Battle Areas,” that collectively make up 100% of the Carbon War. Our Research & Intelligence team compiles reliable, independent, and comprehensive reconnaissance on all Battle Areas from a variety of trusted sources from around the globe, with a focus on identifying market failures and their solutions.

• The communicaTionS Team convenes successful entrepreneurs, experts, and leaders to ensure solutions are strategically sound, fast acting, and well presented.

• The operaTionS Team identifies suitable operations within each Battle Area where economic solutions to climate change exist. They plan the path to victory for each operation, using appropriate tools and partners to achieve maximum leverage. Milestones are created and supplemental funding resources are obtained. Pressure is applied until goals are achieved.

Our unique contribution complements existing efforts and organizations, leveraging our convening power, our market-driven, solutions-oriented focus, and our powerful global network to develop and implement gigaton-level solutions.

Our ACTiVE OPErATiOns — underwayDetails about active operations are available on our website. Currently they include:

Shipping Biochar energy efficiency geoengineering

Operations currently being developed include:

gloBal finance ghg chemicalS Solar india aviaTion iSland naTionS

Our TEAM — Proven innovatorsThe team includes accomplished experts and leaders from the business and environmental worlds, including:

• chairman — JoSÉ marÍa figuereS Former President of Costa Rica & Ex-CEO of World Economic Forum

• ceo — Jigar Shah Founder of SunEdison, Renewable Energy Visionary

• coo/cfo — TraviS Bradford Founder of Prometheus Institute, Professor – U. Chicago, Author

• dir. of operaTionS — peTer Boyd Former CEO of Virgin Mobile SA, Ex- McKinsey & Co. Consultant

• dir. of reSearch — claire TomKinS Co-Author of the Gigaton Throwdown, Stanford Ph.D.

Vancouverites.want.to.live.in.a.city.that.is.vibrant,.affordable.and.sustainable ..They.cherish.the.beauty.of.this.spectacular.setting,.and.rely.on.the.prosperity.that.has.been.created.from.abundant.natural.resources ..They.also.hope.that.tomorrow.will.be.at.least.as.good.as.today,.perhaps.even.better ..They.want.an.environment.that.is.healthy.for.themselves.–.and.for.their.children.–.and.they.want.jobs.that.are.rewarding.and.secure ..They.work.hard.in.the.prosperous.present.and.they.deserve.a.bright,.green.future .

Why. green?. Because. in. the. highly. competitive,. highly. mobile. modern. world,. the.elements. that. make. a. community. healthy. also. make. it. wealthy .. Functionally,. a..compact,. efficient. city. with. a. well-organized. transportation. system. and. a. light.environmental.footprint.is.cheaper.to.run.and.easier.to.maintain ..The.bright,.creative.people.who.are.the.key.to.conceiving.and.expanding.a.globally.competitive.economy.also.gravitate.to.the.most.desirable.—.most.livable.—.cities .

So,. Vancouver. starts. with. a. fabulous. natural. advantage:. ours. is. often. named. as. the.most.livable.city.in.the.world ..But.our.environmental.footprint.is.almost.four.times.the.sustainable.level ..That.is,.if.everyone.on.earth.lived.as.Vancouverites.do.today,.we.would.need.three.to.four.planets.to.support.that.level.of.consumption .

We.only.have.one.Earth,.and.Vancouverites.are.well.positioned.to.show.the.world.how.to.live,.and.live.well,.within.its.limits ..We.can.be.the.greenest.city.on.Earth .

That.is.a.bold.goal,.especially.when.the.competition.includes.international.cities.like.London,.New.York,.Sydney,.Stockholm.and.San.Francisco ..But.it’s.a.challenge.that.we.can.succeed.in,.because.we.have.a.head.start.and.because.every.effort.we.make.—.every.innovation.—.will.enrich.our.lives,.whether.or.not.it.delivers.an.unqualified.“victory .”.For.that.matter,.the.challenge.itself.can.only.produce.winners.because.the.contestants.will.all.share.their.successes ..In.victory,.we.all.will.share.a.sustainable.world .

The.Vancouver.2020:.A.Bright.Green.Future.report.is.a.pathway.to.victory ..Authored.by.Mayor.Gregor.Robertson’s.Greenest.City.Action.Team,.it.identifies.10.long-term.goals,.supported.by.a.set.of.measurable.and.attainable.targets.that.will.have.Vancouver.well.on. its. way. to. environmental. sustainability. by. the. year. 2020 .. Every. green. business,.green.building,.new.rapid.transit.line.and.electric.bus,.new.community.garden,.and.new.greenway.will.generate.additional.momentum ..Each.success.will.create.demand.for.more.action .

This. is,. once. again,. a. path. to. prosperity .. It. is. a. roadmap. to. health. and. long. life,. for.Vancouver’s.residents.today.and.for.all.the.world’s.children.tomorrow ..Implemented.aggressively. and. creatively,. this. plan. will. cement. Vancouver’s. position. as. a. Green.Capital. —. a. hotbed. of. green. commerce. and. innovation .. It. will. show,. unequivocally,.that. when. it. comes. to. economic. —. and. ecological. —. competitiveness,. Vancouver.means.business,.but.not.business.as.usual .

The.following.are.10.long-term.goals.that.will.turn.Vancouver.into.the.greenest.city.in.the.world ..These.are.ambitious.goals,.some.of.which.may.take.20.to.30.years.to.achieve ..Each.goal.is.accompanied.by.a.measurable.2020.target.to.ensure.we.remain.on.track .

Author: Greenest City Action team

title: Vancouver 2020: A Bright Green Future: An Action Plan for Becoming the World’s Greenest City by 2020

reProduCed From: http://vancouver.ca/greenestcity/PdF/Vancouver2020-ABrightGreenFuture.pdf.

ou r Fou n dErS

The Founders comprise a core group of some of the world’s most successful entrepreneurs, including:

Sir richard BranSon

(uK) The Virgin Group & Virgin Unite

BoudewiJn poelmann

(ne) Co-Founder of Dutch Postcode Lottery

idan ofer (iS)

Chairmanof Better Place, Chairman of Israel Corporation Ltd. & Zim Integrated Shipping Services Ltd.

craig coguT (uSa)

Founder and Co-Managing Partner of Pegasus Capital Advisors, Co-Founder of Pegasus Sustainable Century MB

marK

ShuTTleworTh (Sa)

Internet Entrepreneur, Founder of the Shuttleworth Foundation

henK Keilman (ne)

Chairman, RIG Investments N.V

vladaS laSaS (lT)

CEO/Founder Skubios Siuntos UAB Kaunas & UPS Authorized Service Contractor for Lithuania

i n T r o d u C T i o n To C i T y o f Va n C o u V e r

Va n c o u V E r 2 0 2 0 : a B r I g h t g r E E n F u t u r E — E x E c u t I V E S u m m a ry

4 carbon war room green capital — global challenge 5

The.goals.listed.here.are.undeniably.bold ..But.they.are.achievable. with. current. technology,. policy. and. best.practices .. In. each. category,. the. Greenest. City. Action.Team.has.outlined.actions.that.have.been.tested.and.proven.in.other.jurisdictions ..Each.is.also.ultimately.affordable .. Some. will. require. significant. capital.expenditures.upfront ..But.all.will.pay.dividends.that.will.make.Vancouver.more.efficient,.more.affordable.and.finally.sustainable ..Together,.they.will.make.this.the.Greenest.City.on.Earth ..

onEGrEEn ECOnOMy, GrEEn JObs

1 Green Economy Capital: Secure Vancouver’s international reputation as a mecca of green enterprise

2020 Target: Create 20,000 new green jobs

2 Climate Leadership: Eliminate Vancouver’s dependence on fossil fuels 2020 Target: Reduce greenhouse gas emissions 33 per cent from 2007 levels

3 Green Buildings: Lead the world in green building design and construction 2020 Targets: All new construction carbon neutral; improve efficiency of existing

buildings by 20 per cent

thrEEHuMAn HEAlTH

8 Clean Water: Enjoy the best drinking water of any major city in the world 2020 Target: Always meet or beat the strongest of B.C., Canada, and World Health

Organization drinking water standards; reduce per capita water consumption by 33 per cent

9 Clean Air: Breathe the cleanest air of any major city in the world 2020 Target: Always meet or beat World Health Organization air quality guidelines,

which are stronger than Canadian guidelines

10 Local Food: Become a global leader in urban food systems 2020 Targets: Reduce the carbon footprint of our food by 33 per cent

twoGrEEnEr COMMuniTiEs

4 Green Mobility: Make walking, cycling, and public transit preferred transportation options

2020 Target: Make the majority of trips (over 50 per cent) on foot, bicycle, and public transit

5 Zero Waste: Create zero waste 2020 Target: Reduce solid waste per capita going to landfill or incinerator by 40 per cent

6 Easy Access to Nature: Provide incomparable access to green spaces, including the world’s most spectacular urban forest

2020 Targets: Every person lives within a five-minute walk of a park, beach, greenway, or other natural space; plant 150,000 additional trees in the city

7 Lighter Footprint: Achieve a one-planet ecological footprint 2020 Target: Reduce per capita ecological footprint 33 per cent

reProduCed From: http://vancouver.ca/greenestcity/PdF/Vancouver2020-ABrightGreenFuture.pdf. reProduCed From: http://vancouver.ca/greenestcity/PdF/Vancouver2020-ABrightGreenFuture.pdf.


“The fight for sustainable development will be won or lost in our cities.”K l a u s T ö p f e r , u N e p

Greening our cities makes good sense. Investment in energy efficiency upgrades for existing buildings, often with paybacks on months or a few years, stimulate low-carbon economic recovery and growth within our cities. Getting these investments to happen, though, is sometimes hard. Mayors and their teams play the vital role of leaders and innovators, and many of these leaders have plans, personnel, and public support in place. However, progress has historically been slowed by lack of sufficient capital.

The Carbon War room has launched a 30-month challenge to help cities around the world use innovative mechanisms to bring capital, energy technologies, and jobs to their citizens in a sustainable and wealth-creating way. Beginning in Vancouver in February of 2010 and culminating in July of 2012 in London, this Global Challenge is designed to accelerate the implementation of scalable, replicable efficiency and generation technology solutions employing innovative financial mechanisms. Our collective success will come by seeing Challenge participants reach the finish line of real capital deployed quickly, and then their models scaled up in cities around the world.

Welcome to the Challenge!

Why participate in the Challenge?

The purpose of the Green Capital – Global Challenge is to get substantial private-sector money quickly flowing into energy efficiency and renewable generation projects in cities that are highly motivated and have the team and plan in place to make it happen.

The resulting city-led financing initiatives will bring economic development to their cities, create jobs, reduce energy costs for their residents and businesses; and enable achievement of their emissions reduction targets.

Figuring out what to do and what has worked well and poorly in other places is challenging for any stakeholder, so the Global Challenge is designed to provide substantial additional support to cities, financial partners, and solution providers in making this happen. If you are serious, we are here to help you succeed.

How big is the opportunity?

The opportunity has been clearly identified: A dollar invested today in energy efficiency saves three dollars in future energy costs, freeing up capital slated for new generating plants for higher value purposes.

Reduced energy costs create more economic growth capital in cities. For cities, investment in energy efficiency creates short-term construction jobs and economic growth. It is also an investment that helps ensure an energy-secure future.

Recognized barriers to investing in energy efficiency include high upfront costs, cost of invested capital, amortization of costs, and the ability to recover value of investments upon sale of the property). New finance mechanisms, of which PACE (Property Assessed Clean Energy) is a leading example, address these issues.

It will take a team — cities, finance institutions, energy equipment providers, and implementation partners — to implement innovative finance mechanisms such as PACE.

The Challenge

ciTieS — At its core, the Green Capital-Global Challenge is an invitation to self-selecting City leaders who are ready to grasp the opportunity. The Green Capital-Global Challenge is a challenge to put programs in place today at a scale that makes a difference for their residents and businesses, and inspires others to emulate them.

finance — The Challenge would not be possible without a finance community open to new ideas and new mechanisms: It is also a challenge to financiers willing to unleash the capital currently waiting on the sidelines, and develop a new class of investment and open up a new market.

SoluTion providerS — Energy efficiency services and equipment providers are also a necessary element of the Challenge’s success. They must be ready to deliver the benefits, grow their companies, generate jobs, and lead this transformation.

The next 30 Months

The Green Capital – Global Challenge is an initiative that kicks-off during the time of the Olympics in Vancouver in February 2010 and runs to the target check-in over two years later, in the summer of 2012 in London.

We believe that tremendous momentum can be built over this time period, with energy efficiency deals done at scale by pioneering cities, showing the way for the rest of the world. We believe over $1bn of deals done over this challenge period will demonstrate real potential and bring meaningful additional public and private support to the effort.

c a S E S t u dy: VA N C O U V E R

populaTion: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .578,041reSidenTial BuildingS:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,900 reSidenTial reTrofiTS (year 1):. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,600

annual inveSTmenT*: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40M-$190M10-year SavingS:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$66M-$250M* Assumes investment range of $5-$25K per residence

In.the.U .S ..alone.there.are.over.120m.homes.and.more.than.5m.commercial.buildings,.presenting.an.investment.opportunity.somewhere.between.$400bn.to.$960bn ..

The.PACE.market,.which.includes.commercial.real.estate,.has.been.valued.at.$500bn .

Th e G reen CapiTal — G lobal ChallenG e


from vancouver…The Carbon War Room has partnered with the City of Vancouver due to its highly motivated mayor and council backed by a skilled team with a strong plan (the Vancouver 2020: A Bright Green Future report). They are in a position to accelerate their ‘Green Capital’ initiatives in a way that can lead the world.

…To london…Already London has put many bold sustainability initiatives in place, and is ready to take the next step to finance energy efficiency retrofits at scale. With 3m homes, a large commercial stock, and

33 separate local councils, a city of this scale will necessarily take more time, but the economic and environmental impact will be large.

…wiTh many ciTieS in-BeTweenCarbon War Room’s Vancouver conference has over 20 cities represented, with many more expressing interest in participating in the project. The challenge will ensure that learnings are shared across the participants, with events and side-events for mayors and their sustainability directors planned throughout the next two years.

Carbon War room’s role

The Green Capital — Global Challenge is a program to monitor and build investment in energy efficiency for existing building stock by removing barriers that include information and access to capital. The War Room will leverage its convening power, network of experts, and business acumen to support and monitor cities that commit to action in a five-step plan. Participating cities that are most ready to go will:

• commiT To The challenge — Within 45 days of this summit (April 2nd), the most committed cities will submit their team and funding targets to the Carbon War Room

• form a dedicaTed Team for energy efficiency financing

• aSSemBle The adminiSTraTive and finance parTnerS

• puT enaBling policy in place

• launch The financing program

The Carbon War Room will put its weight of support behind the most ambitious teams in a ‘first wave’ of 5-10 cities, aiming to get deals completed by end 2010. We will also start to nurture the ‘second wave’ of 25-30 cities, for deal completion in 2011. The pace of development will be driven as much by the city as by Carbon War Room.

Throughout the next two years the Carbon War Room team will:

• convene relevanT groupS in both targeted settings and wider forums to move the process forward. These convenings will be more than educational; they will be gatherings of innovators aiming to get scalable, replicable deals over the finish line

• foSTer an inTernaTional neTworK of financial institutions, cities and solution providers, and connect cities to resources and best-practice legislation

• worK wiTh ngoS and other institutions with local expertise that can most help the cities

• provide proceSS guidance and templates

• moniTor, evaluaTe and diSSeminaTe information on progress

Celebrating Progress in 2011 & 2012

The Carbon War Room aims to celebrate progress at a midway point in 2011, and in London in 2012, in a way that shines a justified spotlight on the pioneers but also showcases those who have built a platform for others to emulate and succeed. The emphasis is on achieving progress within the electoral cycle and in time to make a difference for the city’s economic recovery, and the planet. Examples of categories to celebrate will include:

• capiTal — Total deployed in energy efficiency through city-led financing initiatives

• leverage — Leverage of public funds to total capital deployed

• leaderShip — Innovative financial models most replicated by other cities

• implemenTaTion — Largest % of building stock retrofitted

• carBon — City with most reduced carbon footprint from the built environment

The Carbon War Room will report back on progress on the above initiatives across the participating cities, and beyond as appropriate.

Defining success

The Carbon War Room believes this project can help bring about over $1bn in non-recourse financing for energy efficiency retrofits across at least three continents by 2012. Ultimately benefiting 15-30 cities by 2012, our goal is to facilitate implementations in five cities by end 2010, and to work with partners to develop relevant standards and regulations in ten cities by 2013. This will put the built environment, which represents over 20% of global CO2e output (IPCC), on a path to reducing CO2e emissions by over 5bn tons annually within ten years.

About The Carbon War room

The Carbon War Room is an independent non-profit that harnesses the power of entrepreneurs to unlock market-driven solutions to climate change. We bring together business, non-profit, and government innovators to create and implement solutions that benefit both the economy and the environment.

“Mayors are the entrepreneurial CEOs of the civic world”

s i r r i c h a r d B r a N s o N



CWR

FINANCIERS

CITIES

Q1-10 Q2-10

Feb 10 Mar 10 Apr 10 May 10 Jun 10 Jul 10 Aug 10 Sep 10 Oct 10 Nov 10 Dec 10 Jan 11 Feb 11 Mar 11 Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11Jun 12 Jul 12 Aug 12

Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q3-12

Commit to join the GCGC

Create EERE initiative

Identify policy support

Engage demand analysis

Draft program expectations

Initiate validation process

Identify funding strategy

Initiate supportive policy

Perform demand analysis

Stakeholders commitment

Define program variables

Solicit partnerships / RFP process

RFP response review

RFP selection / Negotiation

Program implementations

Consumer outreach

Construction & Funding

GCGC progress reporting

GCGC progress meeting

GCGC progress calls

GCGC program summary

Commit to join the GCGC

Identify capital allocation commitment

Engagement with municipality

Identify origination partner

Issuance of term sheet

Term negotiations

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GCGC celebration

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Commit to the challenge —- Within 45 days of this summit (April 2nd), cities who choose to participate will submit their team and funding targets to the Carbon War RoomForm a dedicated team for energy efficiency financingAssemble the administrative and finance partnersPut enabling policy in place

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G r e e n C a p i T a l — G l o b a l C h a l l e n G e r o a d m a p

s p o n s o r p r o f i l e s

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silver level

locKheed marTin

As a global security company, Lockheed Martin recognizes the economic and strategic challenges posed by a dependence on foreign oil, the potential destabilizing effect of climate change, and the vulnerability of our nation’s aging power grid. That is why we are bringing decades of relevant experience and more than 140,000 innovating minds to help address global energy and climate challenges—from energy efficiency, storage, and management, to alternative energy generation and climate monitoring. We are investing our talent in clean, secure, and smart energy—supporting global security, a strong economic future, and climate protection for future generations.

Our vision starts with energy efficiency—the cleanest, cheapest, fastest energy source. The vision continues with leveraging our innovations and manufacturing capabilities to design and produce the next-generation of alternative energy solutions—and make traditional energy sources cleaner. That mix of traditional and alternatives energies then needs to be smartly and securely stored, managed and distributed to consumers; Lockheed Martin is leveraging its command-and-control, systems integration, nanotechnology, and cyber security expertise to make that vision a reality. Finally, space-based climate monitoring and information technology, areas we have been supporting for 50 years, will ensure that our Nation and the world are making positive progress.

greenScape capiTal group

Greenscape Capital Group’s mandate is to increase the environmental sustainability, social responsibility, and profitability of companies and their operations. Greenscape, through its wholly owned subsidiary, Green.Switch Capital, focuses on dramatically increasing the profitability of commercial facilities through enhanced energy efficiency and environmental best practices. Our full service energy retrofit process begins with the assessment of client issues and infrastructure, through to project design, capitalizing improvements, attaining government incentive grants when applicable, contracting, installation and monitoring. A unique business model governs this process whereby the entire energy retrofit may be financed through energy savings, at no upfront cost to the client. When marked opportunities arise, Greenscape Capital also invests in other companies that operate in the environmental space, providing strategic capital and business advisory services to assist companies in achieving their environmental and corporate goals.

Please visit our website at www.greenscapecapital.com

Knauf inSulaTion

With 30 years of experience in the insulation industry, Knauf Insulation represents one of the fastest growing and most respected names in insulation worldwide. Offering a wide range of insulation materials, Knauf Insulation is committed to meeting the increasing demand for energy efficiency in new and existing homes, non-residential buildings and industrial applications. Knauf Insulation has nearly 5000 employees active in more than 50 countries around the world with more than 30 manufacturing sites for the production of glass wool, stone wool, wood wool, extruded polystyrene (XPS) and expanded polystyrene (EPS). Knauf Insulation is a global business representing a turnover in excess of Euro 1.2 billion and is part of the wider Knauf Group, a family-owned manufacturer of building materials and construction systems.

Sustainability is driving our business with energy having become one of the defining issues of the 21st century. Greenhouse gas emissions from energy use are causing global warming and climate change. Global energy consumption, combined with the tightening of supplies of gas and oil, are leading to rising energy prices. Knauf Insulation is in a strong position to have a positive impact on these global issues through both our product range and our approach. Our range of insulation offers one of the easiest and most cost effective methods of saving energy in buildings.


P r o c E E d I n g S

Bc hydro • carBoneTworKS • offSeTTerS • pulSe energy • wellS fargo SecuriTieS

Go-Green level

cooley godward KroniSh

Cooley Godward Kronish is a national law firm for the converging worlds of clean technology, renewable energy project finance and carbon management. The Firm’s legal expertise enables our attorneys to serve as counselors, strategists and advocates for the foremost private and public companies in the clean energy space. As investments in renewable energy, energy-efficient technologies and other clean technologies increase exponentially, Cooley Godward Kronish is at the forefront, helping to commercialize innovative clean technology solutions and take those solutions to refinery and utility scale. The attorneys in the Clean Energy and Technology group serve the companies, entrepreneurs, developers, financiers and investors that are pioneering the most innovative approaches in clean technology, renewable energy project development, carbon management and sustainability.

Cooley’s Clean Energy and Technologies group regularly provides companies with business-driven legal counsel and serves as a strategic business partner in all stages of their development, from obtaining early stage funding to structuring and negotiating complex supply and distribution agreements, joint ventures and other strategic alliances to dealing with the myriad of real estate, construction, offtake, permitting, REC sales and financing issues critical to successful project deployment. We partner with experts in Cooley’s Intellectual Property, Real Estate, Environmental, Tax and Technology Transactions practices, when necessary, to advise our cleantech clients on protecting, licensing and commercializing their technologies, permitting the most challenging of clean energy projects and structuring investments and projects in the most tax efficient manner. Cooley’s Clean Energy and Technologies group incorporates one of the leading renewable energy project development and finance teams in the business. Our attorneys have acted as lead advisors on project development and finance transactions in onshore and offshore wind energy, biofuels, biomass electricity generation, waste to energy, carbon mitigation, merchant transmission, scalable energy efficiency and concentrating solar.

We are one of the few law firms in the world which offers strength throughout the clean energy value chain, an approach that we believe best matches the needs of this rapidly growing and evolving sector and readily distinguishes us from other firms active in the sector.

16 carbon war room

Monday February 15th — Day 0 — The Opening EveningLocation: Pan Pacific Hotel, Cypress Room on Level R

1730-1830 gueSTS arrive / checK-in

1830-2030 welcome recepTion, inTroducTion To vancouver green capiTal, and neTworKing

Welcoming Remarks

• JigarShah,CEO,CarbonWarRoom

• GregorRobertson,Mayor,CityofVancouver

• JoséMaríaFigueres,ChairmanoftheCarbonWarRoom,FormerPresidentofCostaRicaandFormer CEO of World Economic Forum

• Co-networkingeventwiththeseniorbusinessexecutivesparticipatinginMetroVancouverCommerce’s Green Enterprise and Technology program

a G e n d a

h I g h - L E V E L S u m m a ry

DAy 0 PM inTroducTionS and neTworKing

DAy 2 AM launch The green capiTal – gloBal challenge and ShowcaSe SoluTionS in vancouver

DAy 2 PM QuanTify The Scope of applying innovaTive finance mechaniSmS To oTher ciTy prioriTieS, and eSTaBliSh nexT STepS for The 2 year-long gloBal challenge

DAy 1 AM eSTaBliSh a prioriTized liST of SucceSSeS and roadBlocKS for each conSTiTuency (ciTieS, finance, induSTry)

DAy 1 PM refinemenT of innovaTive finance mechaniSmS and diScuSSion of live caSe STudieS on how proBlemS are Being addreSSed


Speakers:

• TrentonAllen,Director,MunicipalSecuritiesDivision,Citi

• StephenDeBerry,ChiefInvestmentOfficer,BronzeInvestments;Member,EmeraldCities

• BryanSlusarchuk,CEO,GreenscapeCapitalGroup

• WayneA.Seaton,ManagingDirector&HeadofSustainablePublicInfrastructure,WellsFargoSecurities

1130-1230 a perSpecTive from induSTry leaderS — execuTion and growTh in The induSTry

Execution on the ground is available for both commercial and residential contractors. There is also an emerging technology industry to support EERE projects. This session will cover the current state of the EERE industry, growth forecasts, and what’s possible if current constraints are addressed.

Moderator:

• TonyPaulson,SeniorAdvisor,CarbonWarRoom

Speakers:

• JamesKohlhaas,VicePresident,EnergyInitiatives,CorporateEngineering&Technology,Lockheed Martin

• MichaelMeehan,President&CEO,Carbonetworks

• JeffreyBrisley,SeniorVicePresident,Sales&BusinessDevelopment,KnaufInsulation

1230-1330 neTworKing lunch

Speaker:

• MarcPorat,OperatingAdvisor,PegasusCapital,ChairmanoftheBoardofZETACommunitiesand CalStar Products

1330-1430 a perSpecTive from The experTS — The nuTS and BolTS of financing mechaniSmS for ciTieS

Top practitioners detail mechanisms for EERE financing, including PACE. This session will cover how these mechanisms work, when they work best, and considerations for international implementation.

Moderator:


Speakers:

• JackHidary,ExecutiveBoardMember,CarbonWarRoom

• BillCampbell,CEO,EqRM

• CraigHill,Co-founder&Partner,NorthCross,Hill&Ach,Inc.

1430-1445 Summary of The opTionS preSenTed

Speaker:

• TravisBradford,COO/CFO,CarbonWarRoom

1500-1930 men’S olympic hocKey game: canada vS. norway (for confirmed participants)

Tuesday February 16th — Day OneLocation: Pan Pacific Hotel, Oceanview Room on Level R

0730-0830 conTinenTal BreaKfaST

0830-0900 welcome and opening remarKS

Setting the stage for the Green Capital – Global Challenge



• JoséMaríaFigueres,ChairmanoftheCarbonWarRoom,FormerPresidentofCostaRicaandformer CEO of World Economic Forum

0900-0915 KeynoTe — The opporTuniTy: TranSforming The BuilT environmenT in ciTieS

Efficiency upgrades and renewable energy for buildings are the biggest win-win for cities with respect to economic development and climate change. Job creation, increased property values, and attractive investment go hand-in-hand. New financing mechanisms such as PACE and others stand to address the market failure and capitalize on the opportunity.

• JigarShah,CEO,CarbonWarRoom&Founder,SunEdison

0915-1015 a perSpecTive from ciTy leaderS — whaT ciTieS need in order To implemenT energy efficiency and renewaBle energy (eere) financing: oBSTacleS and ideaS for reSoluTion

Cities have yet to widely adopt EERE financing programs. This session will cover lessons learned and implementation challenges from the perspective of city leadership.

Moderator:

• SadhuJohnston,DeputyCityManager,CityofVancouver

Speakers:

• SandyTaylor,HeadofClimateChangeandSustainability,CityofBirmingham,UK

• DorianDale,EnergyDirectorandSustainabilityOfficer;Babylon,NY

• KarolineSteen,DeputyDirectorofSustainabilityandInternationalAffairs,CityofCopenhagen

1015-1030 coffee BreaK

1030-1130 a perSpecTive from finance leaderS — how To unleaSh The capiTal from The SidelineS

Financing EERE projects at the city level poses a unique challenge to commercial banks and other finance institutions. Finance programs could be modeled after mortgage lending or infrastructure bonds. This session will cover the criteria and structure favored for setting up large EERE programs.

Moderator:



Wednesday February 17th– Day TwoLocation: Pan Pacific Hotel, Oceanview Room on Level R

0800-0900 conTinenTal BreaKfaST

0900-0930 review of previouS day

Speakers:



0930-1000 launch of The green capiTal — gloBal challenge

The Green Capital – Global Challenge is a roadmap for accelerated city action to transform the built environment in time for the London 2012 Summer Olympics.

• What’sinitforcitiesandthepotentialglobalimpact

• Collectiveactionandmeasurement

• Individualachievement(awards)

Speaker:


• SirRichardBranson,FounderofVirginGroupandFounderoftheCarbonWarRoom

• JoséMaríaFigueres,ChairmanoftheCarbonWarRoom,FormerPresidentofCostaRicaandFormer CEO of World Economic Forum

1000-1100 viSionS for green capiTal

Mayor Robertson host select mayors as they share their visions for their cities.

Speakers:


• EduardoPaes,Mayor,CityofRiodeJaneiro

• BobKiss,Mayor,CityofBurlington

• PegeenHanrahan,Mayor,CityofGainesville

• GavinNewsom,Mayor,CityofSanFrancisco

1100-1130 coffee BreaK/ media inTerviewS (aS appropriaTe)

1130-1200 gameS wiTh a purpoSe — how vancouver 2010 raiSed The Bar for SuSTainaBiliTy in The olympic movemenT

Vancouver describes the greening of the 2010 Winter Games City from the starting to finishing lines, and the handoff to upcoming cities: Sochi, London, and Rio.

Speaker:


• AnnDuffy,CorporateSustainabilityOfficer,VancouverOrganizingCommitteeforthe2010Olympic and Paralympic Winter Games (VANOC)

1200-1230 vancouver induSTry parTnerShipS

Vancouver industry leaders describe their partnership efforts with the Vancouver 2010 Winter Games to achieve its sustainability goals for the Winter Games and beyond.

Speakers:

• JamesTansey,CEO,Offsetters

• DavidHelliwell,CEO,PulseEnergy

• BevVanRuyven,ActingPresident&CEO,BCHydro

1230-1345 neTworKing lunch

Identifying and meeting specific needs and wants from communities and cities.

1345-1445 worKShop — inTegraTing The eSSenTial elemenTS of financing mechaniSmS for energy efficiency and renewaBle energy reTrofiTS

Drawing on the city, finance, and industry perspectives, this workshop-style session will drill down into the component parts of a successfully financed retrofit program. Discussion and Q&A will follow the speaker’s presentations.

Moderator:


Speakers:

• CraigHill,Co-founder&Partner,NorthCross,Hill&Ach,Inc.

• SusanLeeds,Director,CapitalMarkets,EqRM;FinancialPolicyAdvisor,NRDC

• MartinPowell,DirectorEnvironmentandCapitalProjects,LondonDevelopmentAgency

• JohannaPartin,Mayor’sDirectorofClimateProtectionInitiatives,City&CountyofSanFrancisco

• TrentonAllen,Director,MunicipalSecuritiesDivision,Citi

1445-1515 carBon war room’S ngo affiliaTeS

The Carbon War Room collaborates with other non-profit organizations in support of their efforts. A brief introduction to these affiliates and how they compliment the Green Capital Global Challenge.

Moderator:

• TravisBradford,COO/CFO,CarbonWarRoom

Speakers

• AdamBrowning,Co-FounderandExecutiveDirector,VoteSolarInitiative

• SusanLeeds,Director,CapitalMarkets,EqRM;FinancialPolicyAdvisor,NRDC

1515-1530 coffee BreaK


1530-1630 The role of a SuSTainaBiliTy direcTor

Sustainability Directors share their perspectives and brainstorm actionable items to take back to their cities.

Moderator:

• SadhuJohnston,DeputyCityManager,CityofVancouver&Founder,UrbanSustainabilityDirectors Network

Speaker:

• JuliaParzen,Coordinator,UrbanSustainabilityDirectorsNetwork

1630-1700 concluding remarKS – The STarT line; noT The finiSh line

Members of the Carbon War Room will share Green Capital Global Challenge’s toolkit, define roles for the year to come, and inform participants about how to recruit others and participate in future gatherings.

Speaker:

Jigar Shah, CEO, Carbon War Room

aT T e n d e e b i o s

Trenton AllendirecTor, MuNicipal securiTies divisioN, ciTiMr. Allen is a Director in Citi’s Municipal Securities Division and a member of the Public Utilities practice. Mr. Allen has over 10 years of experience developing comprehensive financing plans for energy projects throughout the US. Mr. Allen has assisted clients, including both utilities and developers, in the financing of traditional utility scale projects in addition to distributed energy projects including, renewable energy and energy efficiency.

Currently, Mr. Allen is leading Citi’s efforts to finance municipal clean energy programs. These efforts include financing utility scale wind, solar and geothermal projects for public power utilities. Additionally, Mr. Allen is working with municipalities to implement Property Assessed Clean Energy (PACE) and on-bill programs to finance distributed renewable energy and energy efficiency projects forprivatepropertyowners.Since2007,Mr.Allenhasservedassoleunderwriter/arrangertotheDelaware Sustainable Energy Utility in developing its financing program to utilize tax-exempt bonds to finance energy efficiency projects for public sector clients throughout the state of Delaware. Mr. Allen is a frequent speaker on issues surrounding municipal clean energy finance. Recently, Mr. AllenwasappointedtotheGreenJobs-GreenNewYorkAdvisoryCouncil.

During his career, Mr. Allen has been senior manager or financial advisor in over $16 billion of financing, including tax-exempt and taxable bonds and various financial products. Prior to joining Citi, Mr. Allen served as manager of the Quantitative Strategies Group for a leading municipal financial advisory firm. Mr. Allen graduated from Harvard College with an A.B. in Chemistry.

Tom AmisparTNer, cooley Godward KroNishTom Amis is a partner in the Cooley Godward Kronish Business department and co-chair of the Firm’s Clean Energy and Technologies group. He joined the Firm in 2010 and is resident in the Washington, DC office.

Mr. Amis has developed and financed projects in a number of industry sectors over the course of his career, with an emphasis on electric power projects. Mr. Amis’ practice focuses on project development and finance, renewable energy policy, carbon management and renewable energy technology. Acting for both developers and lenders, he has negotiated joint development agreements; joint venture, partnership and other ownership documentation; turbine supply contacts; balance of plant contracts and REC sales agreements; transmission and interconnection agreements; operating agreements; financing documents; and land use agreements. He also is highly experienced in developing projects structured around CERs generated pursuant to the Kyoto protocol.

Representative experience include:

• Leadcounselinnegotiatingaseriesofinnovativeutilityscalesolarprojectsoncommercialwarehouses.

• Leadcounselinnegotiationof$600millionframeturbinepurchaseagreementonbehalfofamajor United States wind energy developer.

• LeadcounselinacquisitionofaleadingeasternUnitedStateswindenergydevelopmentcompany.


• Leadcounselinstructuringascalableenergyefficiencysolutionforaninvestmentfund.

• Leadcounselindevelopmentofseriesofinterstatetransmissionlinesforrenewableenergy.

• Leaddevelopmentcounselinthefinancinganddevelopmentofoneofthelargest run-of-river hydro projects developed to date (incorporating Kyoto credits).

• Leadcounselindevelopmentandfinancingofcoalbedmethaneproject(incorporating Kyoto credits).

• Leadcounselinnegotiationofpowerpurchaseagreementfor450MWAtlanticOcean wind farm.

Mr. Amis received his J.D., with honors, from Columbia Law School in 1982. He received his M.B.A., also with honors, from INSEAD in Fontainebleau, France, in 1983. Mr. Amis received his M.S. from The London School of Economics and Political Science in 1979, and a B.A., magna cum laude, from YaleUniversityin1978.HeislistedinChambersUSA:America’sLeadingLawyersforBusiness2009,The Best Lawyers in America, 2009 and serves as adjunct professor of project finance and renewable energy at the McDonough School of Business at Georgetown University. He lectures widely on topics relevant to the renewable energy industry.

Murat Armbruster seNior advisor, carBoN war rooMMurat is a founding partner of the clean technology hedge fund, Atlas Capital Investments, LP. After graduating from the University of Michigan with high honors, Murat launched GlobaLearn in 1993, the first K-12 eLearning website to help prepare our nation’s children for global citizenship. GlobaLearn was acquired by Houghton Mifflin in 2001 and featured in Don Tapscott’s bestselling Growing Up Digital. Murat represented the education sector as a member of the U.S. delegation led by Vice President Gore to the G-7 Information Society Summit. During the 2004 presidential campaign, he served as Deputy Executive Officer to General Wesley K. Clark during his bid to become the Democratic Party’s nominee. In 2005, he was a founding partner and Chief Operating Officer of Adina for Life, a San Francisco-based beverage company focused on fair trade and sustainable business practices. Murat is a member of the Social Venture Network, has a black belt in karate, and speaks French and Mandarin.

Michael ArmstrongseNior susTaiNaBiliTy MaNaGer, ciTy of porTlaNdMichael Armstrong is the Senior Sustainability Manager for the City of Portland Bureau of Planning and Sustainability. His responsibilities include programs addressing climate change, energy efficiency, renewable energy, waste prevention and recycling, green building, sustainable practices in city government operations, and sustainable food systems. Michael coordinated the public processes that led to Portland and Multnomah County’s 2001 Local Action Plan on Global Warming and 2009 Climate Action Plan and tracks the implementation of local carbon-reduction efforts. He has staffed Portland’s involvement in Oregon Public Utility Commission proceedings, the citizen Peak Oil Task Force, and the city’s sale of carbon offsets to the Climate Trust.

Michael received an M.P.A. from Indiana University’s School of Public and Environmental Affairs, a B.A. from Cornell University, and attended Deep Springs College.

Dr. Penny ballemciTy MaNaGer, ciTy of vaNcouverWith more than 30 years of experience in senior management positions in the Canadian public sector, City Manager Dr. Penny Ballem has extensive experience in managing large organizations, building relationships across private and public sectors, and collaborating with civic, provincial, and federal levels of government.

Dr. Ballem is trained as a clinical hematologist and has served as the deputy minister of Health for British Columbia, as well as the vice-president of Women’s and Family Health at the Children’s and Women’s Health Centre of BC. She also served as a corporate director for Bentall Capital G.P. Ltd., as well as a senior advisor to RPO Management Consultants.

Christopher ian bennettdirecTor of coMMuNicaTioNs, BesT Buy caNada direcTor, GreeNscape capiTalWith 15 years of political and public policy communications experience, Mr. Bennett is the former Leader of the Green Party of British Columbia. The youngest person to ever lead the party, Christopher helped build public support to almost 20 per cent from five per cent during his interim term. In 2007 he was elected to the Green Party of Canada’s Federal Council where he completed a one-year term and acted as a senior communications strategist to the executive committee. Mr. Bennett brings more than 10 years of public relations and media communications experience to the group. He has expertise in corporate communications, issues management, crisis communications, investor relations and media training to clients across the board. An experienced strategist, Mr. Bennett has worked with CEOs, politicians and senior government officials both provincially and nationally. In 2006, Christopher was the only Canadian named to PR News’ ‘Top 30 under 30 to Watch’ list. He has been profiled in BC Business Magazine, PR Week and the National Post. Christopher was also the keynote speaker at the IABC’s National ‘NEXT Communications’ conference.

David r. boydco-chair, GreeN ciTy acTioN TeaM, ciTy of vaNcouverDavid R. Boyd is one of Canada’s leading environmental lawyers and an expert in the field of human health and environmental policy. He is a Trudeau Scholar at the University of British Columbia, an Adjunct Professor at Simon Fraser University, and a Research Associate with the POLIS Project on Ecological Governance at the University of Victoria. Boyd has advised the governments of both Canada and Sweden on environmental issues and often works with the David Suzuki Foundation.

Boyd has written a number of pioneering publications about environmental health:

• providingacomprehensiveroadmapforgovernmentstoaddressthemostimportantenvironmental hazards to human health in Canada;

• estimatingtheenvironmentalburdenofdiseaseinCanada(thenumberdeathsandillnessesassociated with exposure to environmental hazards); and

• comparingthestrengthofairqualityrules,drinkingwaterstandards,andpesticideregulationsin industrial nations including Canada, the U.S., Australia, and the European Union.


Boyd’s most recent publication, Prescription for a Healthy Canada: Towards a National Environmental Health Strategy, enjoys the support of the Canadian Medical Association, the Canadian Cancer Society, the Canadian Medical Association, and the Canadian Association of Physicians for the Environment. Boyd is also a co-author of David Suzuki’s Green Guide, the author of Sustainability Within a Generation: A New Vision for Canada (endorsed by former Prime Minister Paul Martin while he was in office) and the award-winning Unnatural Law: Rethinking Canadian Environmental Law and Policy.

Peter boyd direcTor of operaTioNs, carBoN war rooMPeter joined as Director of Operations after serving as Launch Project Director for the Carbon War Room since February 2009, following over ten years in the Virgin Group.

He has recently moved to Washington DC after two years as CEO of Virgin Mobile South Africa, leading the first and only Virtual Mobile Operator on the African continent, tripling its size over theperiod.Priortothat,hewasVPofMarketingforVirginMobileUSAinNewYork,leadingthelaunch of the inaugural Virgin Festival USA and its Pro-social initiative, while the company grew from 0.5m to 5m customers. This followed various managerial and marketing roles in the Virgin Group in London.

Peter’s started his career at McKinsey & Company (working in London, India and South Africa) after graduating from Oxford University with BA Honours in Philosophy, Politics & Economics.

Travis bradfordcoo/cfo, carBoN war rooMTravis Bradford founded the Prometheus Institute for Sustainable Development, a nonprofit organization focused on harnessing the power of the business sector to develop cost-effective and sustainable solutions in technologies, including energy, water, food, and recycling. Bradford also founded Atlas Capital Investments, LP, a global hedge fund dedicated to investing in sustainable technology companies in energy, water, food, and materials. Previously, he has served as a deal partneratSteelPartnersII,LLC,inNewYork;dealprincipalattheHoldingCapitalGroupinNewYork;andstatisticalandfinancialanalystattheFederalReserveBankinAtlanta.

Since 2008, Bradford has been a professor of renewable energy for MBA students at University of Chicago’s Booth School of Business, and has lectured on finance, entrepreneurship, and alternative energy economics to a wide audience including many of the world’s top institutions. His published works include Solar Revolution: The Economic Transformation of the Global Energy Industry, published by the MIT Press.

Bradford earned a bachelor’s degree in finance from Georgia State University in 1992 and an MBA in 1996 from the NYU Stern School of Business with distinction in finance, management, andinternational business. In 2006, he received a master’s degree in public administration from the Kennedy School of Government at Harvard University.

richard branson fouNder of virGiN Group aNd fouNder of The carBoN war rooMSir Richard Branson is a successful international entrepreneur and is Founder and Chairman of the Virgin Group. Virgin is one of the world’s most recognized and respected brands and has expanded into everything from air and ground travel to telecommunications, health, space travel and renewable energy through more than 200 companies’ worldwide, employing approximately 50,000 people in 29 countries.

In the same way he approaches starting a business, Richard works with partners on the frontlines to tackle tough social and environmental challenges with talented people and innovative approaches. In 2007, along with Nelson Mandela, Graça Machel and Peter Gabriel, Richard and a group of wonderful partners announced the formation of the Elders, a group of global leaders to contribute their wisdom, independent leadership and integrity to tackle some of the world’s toughest problems.

Richard is also putting significant focus into Virgin Unite, the not-for-profit foundation of the Virgin Group which unites people to tackle social and environmental issues in an entrepreneurial way. Virgin Unite supports a number of efforts ranging from the creation of sustainable healthcare models in Africa, to fostering young entrepreneurs through the Branson School of Entrepreneurship in South Africa, to supporting homeless teenagers in the US.

Jeffrey brisley sr. vice presideNT, sales aNd BusiNess developMeNT, KNauf iNsulaTioNJeffrey Brisley - Sr. Vice President, Sales and Business Development -Over 35 years experience within the insulation industry in both manufacturing and contracting. He is a graduate of the University of Toledo, degreed in Marketing.

Jeff joined Knauf Insulation in 1982 and is currently responsible for the North American sales organization and business development for North American markets. In addition, Jeff holds various leadership positions within the insulation industry including his current role as Chairman of the Council of NAIMA (North American Insulation Manufacturers Association). Jeff is based in Knauf’s North American corporate headquarters in Shelbyville, Indiana USA.

Dave bronconnierMayor, ciTy of calGaryDave Bronconnier, three-time Mayor of Calgary, Alberta, is known as one of the most innovative and outspoken municipal leaders in the country.

He’s credited with successfully and decisively leading Calgary through a period of rapid growth, staggeringly rapid and sustained growth at a rate never before seen in Canada.

A third-generation Calgarian who served nine years as an alderman on Calgary City Council, Dave was first elected Mayor on October 15, 2001. He was re-elected, with huge majorities, in 2004 and 2007.

From his first days in office, Mayor Bronconnier moved to put in place new revenues, new policies and new projects that would enable Calgary to catch up with its own growth.

He negotiated a re-balancing of the revenue-sharing arrangements with both the federal and provincial governments, thereby ensuring the city would have more equitable, secure and ‘no strings’ long-term funding for necessary municipal infrastructure, facilities, and services.


Adam browningco-fouNder aNd execuTive direcTor, voTe solar iNiTiaTiveAdam is the co-founder and Executive Director of the Vote Solar Initiative, a non-profit organization with the mission of bringing solar energy into the mainstream. Vote Solar got its start with a successful ballot initiative for a $100 million solar revenue bond in San Francisco in 2001, and since then has been working with state and municipal governments on pro-solar policies with the goal of jumpstarting the national transition to renewable energy.

Prior to Vote Solar, Adam spent eight years with the U. S. Environmental Protection Agency’s San Francisco office, where he won the Agency’s top pollution prevention award for developing a program that reduced air emissions of mercury from gold mines in Nevada by over five tons annually.

Adam received a BA with Distinction from Swarthmore College in 1992, and served with the Peace Corps in Guinea-Bissau, West Africa.

bill Campbell ceo, equiliBriuM resource MaNaGeMeNT (eqrM)Bill Campbell is CEO of Equilibrium Resource Management (EqRM.) He has led the research, design, infrastructure establishment, and recruiting work behind the establishment of this new model of financing energy efficiency retrofits. Prior to his work at EqRM, he served as chair of Ater Wynne LLP, a multicity US west coast law firm, where he served as general counsel to high growth companies in energy and technology. In that capacity he has been involved in the design, contracting, and implementation of energy efficiency business, financing, and deployment models since 1979. He servesonseveralenergy-relatedboards,coalitions,andworkinggroups.HeholdsdegreesfromYaleUniversityandYaleLawSchool.

linda Coadyvice presideNT, susTaiNaBiliTy, vaNoc, ciTy of vaNcouverAs Vice President of Sustainability for the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games (VANOC), Linda Coady led development and execution of the sustainability platform for the Games. VANOC is the first Organizing Committee to take a fully integrated approach to managing the social, economic and environmental impacts and opportunities of an Olympic Games.

The product of five years of work by 2010 partners, sponsors, external stakeholders and over 50 internal business units at VANOC, the sustainability program for Vancouver 2010 achieved a number of climate milestones for the Olympic Movement including:

• Constructionofthelargestnumberofsingleproject-relatedbuildingsinNorthAmericatoapply for certification under the LEED green building system

• Implementationofthemostcomprehensiveprogramtodateformeasuring,reducingandoffsetting the carbon footprint of a Games

• 15%across-the-boardreductionincarbonemissions

• ‘First’OrganizingCommitteetobeCarbonNeutraloveritssevenyearlifespanfromwinningthe Bid through to the end of both the Olympic and Paralympic Games

• ‘First’CarbonNeutralAthletes,CarbonNeutralRelay,CarbonOffsetSponsor

Prior to joining VANOC Linda worked for World Wildlife Fund Canada and Weyerhaeuser Company, where she helped lead a series of collaborative initiatives that reduced conflict over coastal forests and introduced

Dorian DaleeNerGy direcTor aNd susTaiNaBiliTy officer, ciTy of BaByloNDorian Dale was appointed to the newly created position of energy director by Town of Babylon’s Supervisor Steve Bellone in 2006. The following year, the Town codified Energy Star standards for new home construction; 11 of Long Island’s 13 municipalities have followed suit. By the end of that year, the Town required all new commercial construction over 4,000sf to be LEED-certified. Realizing that existing buildings constitute 64% of Babylon’s carbon footprint, the Town introduced the Long Island Green Homes (LIGH) program that is enhancing the energy efficiency of the Town’s 65,000 detached houses by 30%. The innovative self financing formula has drawn the interest of municipalities from around the country, has been cited by McKinsey & Co as an exemplary program, and has been featured in conferences sponsored by ICLEI, Green for All, and Living Cities, as well as webinars from DOE and USGBC, for which Dale as served as a presenter. Eight of Long Island’s nine major towns have just joined in a joint application for DOE’s Retrofit Ramp-up competitive grant opportunitytobeannounced3/15/10thatcouldbringaquarterofabilliondollarsofefficiencywork to this region based on a scaled version of the successful LIGH pilot that has over 300 homes retrofitted or in the queue awaiting retrofit. Babylon’s was the first operational property assessed clean energy (PACE) program in the nation.

Prior to becoming Babylon’s energy director, Dale was an operations analyst evaluating security links in the supply chain. He serves as executive director for The Babylon Project, is a charter member of the national Urban Sustainability Directors Network, a member of the Associations of Old Crows and Former Intelligence Officers and serves on the board of the LI chapter of the USGBC and as its regional rep. As an undergraduate at the University of Pennsylvania, he was one of the directors of the original Earth Day in 1970 and helped start an environmental management program at Wharton.

Ann Davlin direcTor of developMeNT, carBoN war rooMAnn Davlin has over 20 years experience in capital raising, brownfields development and government and environmental policy arenas, as well as six years in the environmental insurance industry.

As managing director, Bayberry Green Fund, a division of Bayberry Capital Group, Ms. Davlin led the team to establish fund structure and to management company. Oversaw both deal flow and capital raise. Created $100,000,000 site pipeline and raised capital from pension funds, high net worth individuals and institutional investors.

For three years, Ms. Davlin ran Davlin Development Group, consulting firm which worked with individuals and institutions to source and develop brownfield real estate opportunities both domestically and internationally. Ann advised on remediation and site reuse including, raising capital, using government and tax incentives; obtaining environmental insurance, innovative technologies and land reuse.

Ms. Davlin served for six years as Director, Government Programs, AIG Environmental, where she worked with military, developers, communities and government officials to use environmental insurance as a tool to address financial security and assure the remediation and reuse of former government sites.


She was the tri-state brownfield Coordinator for the Regional Plan Association and has extensive experiencewithstateandfederalregulators.SheservedontheNewYorkStateBrownfieldsPocanticoRoundtablewhichdevisedtheNYSinitialbrownfieldslegislativestrategy.Ms.Davlinwasthespecialassistant for environmental projects to Senator Al Gore; and served in both the White House and the Department of Defense creating and implementing environmental policy.

Her Board and Advisory Committee appointments include the following: Fuel:Bio Holdings, LLC, Green-Links, the parent of Green Drinks USA; and The FD Element Agency; Steering Committee for Clean Economy Network. She holds an MPA in Environmental Policy from Columbia University, School of International and Public Affairs. She is an adjunct teacher at the Columbia University CenterforEnvironmentalResearch(CERC),andhaslecturedatYaleSchoolofArchitectureandNewYorkUniversityWagnerSchool.

stephen Deberrychief iNvesTMeNT officer, BroNze iNvesTMeNTsStephen DeBerry manages endowment with a focus on providing strong financial returns and positive social impact. In addition to its traditional multi-asset class endowment management business, Bronze Investments drives three direct investment strategies, with a focus on energy efficiency, distressed mortgages and food access.

Stephen has been one of the leaders of the Emerald Cities Finance Working Group. That group has been spent the past year working with the White House, government agencies and the private sector to lay the foundation for a successful energy efficiency marketplace.

Previously, Stephen was Investment Director at Omidyar Network, the mission-based investment firm started by eBay founder Pierre Omidyar and his wife, Pam. Before that Stephen was a senior manager of business development at Interval Research, the research lab established by Microsoft co-founder, Paul Allen.

Stephen is a Trustee and Member of the Investment Committee at The California Endowment. He is the Chairman of Friends of New Orleans and also serves the boards of The Association of Marshall Scholars and The Dalai Lama Foundation. Stephen earned a Bachelor’s degree in Anthropology with highest honors from UCLA as well as a Master’s degree in Social Anthropology and a Master of Business Administration degree from Oxford University. He is a Marshall Scholar and a Crown Fellow at the Aspen Institute. He lives in the San Francisco bay area with his wife and daughter.

Ann DuffycorporaTe susTaiNaBiliTy officer, vaNoc, ciTy of vaNcouverAnn Duffy is the Corporate Sustainability Officer for the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Games (VANOC). She is the architect of VANOC’s approach to planning and reporting on the Games’ environmental, social, and economic performance and legacies. Her collaborations have led to innovative supply chain programs for sponsors, partners and knowledge transfer resources for sport event organizers and future host cities. She is VANOC’s media spokesperson for sustainability and advisor to the Olympic Movement.

Ann’s 25 year career has focused on engaging people and organizations on sustainability goal-setting and action in work and lifestyle choices. A frequent speaker, Ann profiles trends and insights from her experience with ambitious organizations - large and small - on progress toward realizing extraordinary goals

She is an advisor to the Global Reporting Initiative and the Canadian Standards Association and board member of the International Centre for Sustainable Cities and The Natural Step Canada.

Before joining VANOC, Ann was Vice President Sustainable Development with CH2M HILL Canada, a national project delivery firm. Previously, she operated her own practice and worked internationally for the World Wide Fund for Nature (WWF) in Switzerland.

Born in Alberta and raised in Quebec, Ann graduated from the University of Calgary with a Master of Communications Studies and the University of Guelph with a degree in Human Geography and Environmental Studies. She resides in Vancouver and when time permits - enjoys the great outdoors and the local culture scene with friends and family.

Mark E M ElbornepresideNT & ceo, Ge uK, irelaNd aNd BeNeluxMark is President & CEO, GE UK, Ireland and Benelux. In this role, he represents one GE, leads GE’s relationships with Governments, customers, employees and other key stakeholders, works to raise GE’s profile, represents GE’s values and culture and identifies new opportunities for innovation, engagement and growth. His goal is to grow GE by showing Governments and customers that GE is uniquely positioned to be their strategic partner to help solve their energy, healthcare, transportation, financing and other infrastructure needs. Mark was appointed President & CEO, GE UK Ireland & Benelux in April 2009.

GE has 18,000 employees in the UK, with 24 sites engaged in R&D, manufacturing and servicing high technology products in the energy, aviation, defence, healthcare, industrial sensing, oil & gas and transportation sectors. The Global Headquarters of GE Healthcare and GE Global Banking are also in the UK.

Mark, a GE Officer, previously held the position of Vice President and General Counsel, Europe and European Regulatory Affairs, GE International, based in Brussels, were he was responsible for leadership of the legal & compliance functions and regulatory affairs in Europe.

Mark joined GE in March 2004 as Executive Vice President and General Counsel of GE Insurance Solutions (ERC), based in Kansas City, MO. Before joining GE, Mark was a senior partner in the Insurance & Reinsurance group at CMS Cameron McKenna in London.

Mark graduated with Honours in History & Politics from Exeter University in 1979 and attended the College of Law in London (1979-81). He qualified as a solicitor at Hewitt Woollacott & Chown (a predecessor firm of Cameron McKenna) in 1983 and was made a partner in 1988. Mark was admitted to the Missouri Bar in September 2004.

Mark is 52, and is married with five children. He lives in the UK.

Wynecta FisherdirecTor, Mayor’s office of eNviroNMeNTal affairs, ciTy of New orleaNsWynecta Fisher is the Director of the Mayor’s Office of Environmental Affairs and a firm believer in seeing issues from the perspectives of diverse constituencies. The office manages the city’s Brownfields, Coastal Restoration, Environmental Justice and Climate Initiative Programs. Ms. Fisher’s focus, post-Katrina, has been researching and utilizing mechanisms that will deter the depletion of the city’s natural coastal barriers and developing a sustainability program for New Orleans. She has worked with her colleagues to develop goals for “greening” the city and currently chairs the city’s green council. As a member of Parishes Against Coastal Erosion (PACE), she continues to lobby both the state and federal governments for an increase in coastal restoration funding for the City of New Orleans and South Louisiana. She is a member of several state and local boards that promote sustainability, science education and coastal restoration. Ms. Fisher is a 2007 recipient of the BGR Excellence in Government award.


Ms. Fisher is a Supply Corps Officer with the Marine Aviation Group, 4th Marine Air Wing HQ unit. She is a reservist at the New Orleans NAS Joint Reserve Base and was commissioned on March 6, 2009.

Prior to relocating to New Orleans, Ms. Fisher lent her expertise as the Education Manager for the Solid Waste Association of North American (SWANA), a 7,200 member organization of private and public industry solid waste professionals. Ms. Fisher earned a Bachelor’s degree in Communications with a concentration in Public Relations at Clark Atlanta University.

Craig Fitzpatrick direcTor of fuTure eNerGy services, locKheed MarTiNCraig Fitzpatrick is the Director of Future Energy Services within Lockheed Martin’s Global Services unit. He is responsible for projects and investments in energy efficiency, sustainability management, and supply chain-based energy solutions. Prior to his current work in Future Energy, Craig’s background is in logistics, most recently as the General Manager of Maersk’s Supply Chain Development practice. He holds a Bachelor of Science in Engineering from the United States Air Force Academy, a Master’s Degree in Public Administration from Saint Louis University, and has completed the Climate Dynamics and Carbon Management programs at MIT.

Dr. Jennifer Greenco-direcTor, BurliNGToN leGacy projecT: 2030 ciTy visioN, ciTy of BurliNGToNJennifer Green is an environmental specialist with the City of Burlington, Vermont, USA and co-director of the Legacy Project: Burlington’s 2030 Sustainability Plan. She has over 20 years of community development and environmental management experience, including work with the World Resources Institute, CARE International, US Peace Corps, and the World Bank. After many years working internationally on environmental action plans, and gender issues and resource management in particular, Jennifer and her family moved to Burlington, Vermont to focus on domestic environmental issues (and to pursue outdoor activities not easily found in the Washington, DC-area – such as skiing). Upon moving to Vermont, Jennifer worked with Efficiency Vermont, the nation’s first energy efficiency utility, later joining as a staff person with the City of Burlington. Jennifer teaches environmental and sustainable development courses at the University of Vermont, has a mastersdegreeinpublicadministrationfromColumbiaUniversity,NY,andaPhDinenvironmentalsociology from American University in Washington, DC.

Pegeen Hanrahan, P.E. Mayor, ciTy of GaiNesvilleA native and lifelong resident of Gainesville, Florida, Pegeen Hanrahan is in her twelfth year of elective service, and her second term as Gainesville’s Mayor (term limited in May, 2010). She is a registered Professional Engineer, and a consultant to the Trust for Public Land’s Conservation Finance Program. In this capacity, she helps other local governments develop and fund land conservation and recreational programs in Florida. With TPL, Mayor Hanrahan has worked on successful bond or sales tax initiatives for the Town of Davie (2005), Martin County (2006), North Bay Village, St. Augustine Beach, Flagler County, Alachua County and Hillsborough County (2008).

Mayor Hanrahan has over twenty years of experience in environmental remediation, public participation, grant writing, land conservation, and local government finance. She has authored and managed successful grants to the Florida Communities Trust, the USEPA Environmental Justice Program, the USEPA Sustainable Communities Program, the USEPA Brownfields Program and numerous private foundations including the Beldon Fund, the Rockefeller Brothers Fund, and the Elizabeth-Ordway Dunn Foundation. She served as an Engineer and Hazardous Materials Program Manager for the Alachua County Environmental Protection Department for over five years, served as Senior Vice President of Terra-Com Environmental Consulting for five years, and as Executive Director of Alachua Conservation Trust, one of Florida’s most accomplished land trusts, for three years. She has been the Engineer of Record on numerous remediation projects to remove hazardous contaminants from soil and groundwater, and has completed work in the fields of landfill design, stormwater management, hazardous waste management, climate change, sustainability, and energy conservation. She has managed or consulted to four different environmental non-profit agencies in Florida, and has completed projects for over thirty different cities, counties, water management districts, state agencies and private clients.

Mayor Hanrahan is the immediate past President of the Florida League of Mayors, immediate past Chair of the Alachua County Library District, and serves on the boards of Florida State University’s LeRoy Collins Institute, the University of Florida’s Reubin O’D. Askew Institute, the Mayors’ Innovation Project, ICLEI-USA: Local Governments for Sustainability, the Florida League of Cities, Alachua Conservation Trust and the Alachua County Children’s Alliance. Mayor Hanrahan was appointed by Governor Charlie Crist to serve on Florida’s 2010 Census Complete Count Committee. She has received numerous honors, including being named a “Woman Who Makes a Difference” by the Gateway Girl Scout Council, a “Woman of Distinction” by Santa Fe College, and twice being named “Democratic Elected Official of the Year” by the Alachua County Democratic ExecutiveCommittee. She holds Master’s (1992) and Bachelor’s (1989) degrees from the University of Florida in Environmental Engineering, and a B.A. in Sociology (1989), also from U.F.

Pegeen is married to Tony Malone, a Professional Engineer in the field of civil infrastructure with CH2MHill. Together they are the delighted parents of Evyleen Mary, 4, and Quinn Joseph, 2.

David Helliwellceo, pulse eNerGyPulse Energy is led by its co-founder, David Helliwell, whose career has spanned 3 continents and has been focused on the energy sector since 1994. David has been an exploration geophysicist, a poorly-paid professional windsurfing racer, a Paris-based management consultant to large multinational organizations and has spent three years running the policy shop for a cabinet minister in the Canadian federal government. While with the Canadian government, David was responsible for reducing costs and improving environmental performance of 700 million square feet of office space across the country. David is an Action Canada Fellow, a member of the BC Cleantech CEO Alliance, and is on the Imagine BC advisory board.

Jack HidarychairMaN, hidary fouNdaTioNJack D. Hidary built his career as an entrepreneur and is focused on clean energy technology and policy. In April 2009, the Hidary Group bought the majority interest from JP Morgan in Primary Insight – a leading expert network used by top-tier investment funds. Primary Insight covers sectors ranging from energy and renewables to technology, media, telecom and emerging markets.


Hidary recently launched and serves as Chairman of Global Solar Center, a marketplace which connects solar installers and customers. Prior to GSC, Hidary co-founded Vista Research in 2001, an independent network of 50,000+ experts serving institutional investors.

Committed to community and philanthropic causes, Hidary has received several industry and community awards as well as being recognized as a Global Leader of Tomorrow at the WEF, Davos. Hidary is also a member of the Council on Foreign Relations and of the Clinton Global Initiative. Hidary has been particularly involved in issues of energy and transportation. He is chairman and co-founder of the Freedom Prize Foundation, which provides monetary prizes to cities, schools and other entities that can most reduce their petroleum use. The Freedom Prizes were mandated by Congress in the Energy Policy Act of 2005 (Title X: 1008). Hidary is the founder and publisher of the OpinionSource Energy Newsletter which provides summaries of major op-eds and editorials around the world on topics in the energy sector.

Mr. Hidary helped coordinate and organize the initial development of the Cash for Clunkers bill. This aim of this bill is to reduce America’s dependence on foreign oil, decrease greenhouse gas emissions and stimulate the economyby promoting auto sales. InNewYorkCity,Hidarywas aleading proponent of switching over the taxi fleet to high mileage hybrids. Hidary serves as Chairman of SmartTransportation.org, a non-profit dedicated to promoting clean energy and transportation policy in the US. Hidary serves on the advisory board of the National Renewable Energy Laboratory.

Hidary studied philosophy and neuroscience at Columbia University and was then awarded a Stanley Fellowship in Clinical Neuroscience at the National Institutes of Health.

G. Craig HillpriNcipal, NorThcross, hill & ach, fiNaNcial advisors To puBlic aGeNciesMr. Hill began his professional career in 1986 working as a financial analyst for the Sacramento Municipal Utility District working on energy efficiency loan and rebate programs as well as evaluating the financial and economic feasibility of the Rancho Seco Nuclear Power Plant. His energy efficiency work continued with the State of California in the Office of Energy Assessments to develop financing programs for the State’s facility energy efficiency upgrades.

Since 1989, Mr. Hill has worked in public finance and served local government interests as a financial advisor for capital projects as vast as amusement parks, community facilities, infrastructure and master planned development projects. His work includes debt issuance of every type including the new energy bonds. Mr. Hill currently serves as financial advisor to over 50 different public agencies throughout California.

Mr. Hill was one of the originators of the City of Berkeley’s solar financing program back in 2007 and is currently working with the City and County of San Francisco to develop their solar financing programs as well as the County of Marin on determining the feasibility of PACE programs. In addition to working on PACE program development, Mr. Hill is a regular speaker at conferences and forums related to local government participation in carbon reduction and financial support of PACE programs.

Mr. Hill received his degree from the University of California at Davis.

James W. Hunt, iiichief of eNviroNMeNTal aNd eNerGy services, ciTy of BosToNJim Hunt serves on Mayor Thomas Menino’s Cabinet as Chief for Environmental and Energy Services for the City of Boston. In this capacity, Jim Hunt is the Mayor’s lead advisor on environmental and energy policy and oversees several City agencies including the Inspectional Services Department, the Environment Department, Parks Planning, and Boston’s Recycling Program. Jim also serves as a Mayoral Appointee to the Board of Directors of the Massachusetts Water Resources Authority (MWRA) and as a Trustee on the Boston Groundwater Trust.

The City of Boston has recently implemented a number of sustainability initiatives under Mayor Menino’s leadership, particularly in the areas of green building policy, renewable energy and efficiency, and groundwater protection. In January, Boston became the first major city in the nation to require private development to follow the US Green Building Council’s LEED standards as part of the City’s zoning review process. Boston has also been recognized by the US EPA as the largest municipal purchaser of green power and biodiesel fuel in New England. This commitment to sound environmental and energy practices has led to the City of Boston being ranked the “7th Most Sustainable City” in the nation by SustainLane Government, a national organization dedicated to introducing innovative green practices to cities and towns across the US.

Prior to joining the City, Jim Hunt served as Assistant Secretary for the Commonwealth’s Executive Office of Environmental Affairs (EOEA) and was responsible for administering the Massachusetts Environmental Policy Act (MEPA). As administrator of the Commonwealth’s MEPA program, Jim was in charge of major project reviews for the state including downtown waterfront development, MBTA transit projects, and a wide range of energy projects such as Cape Wind, LNG and NSTAR’s 345kV Transmission Project. Jim Hunt served on the Commonwealth of Massachusetts Ocean Management Task Force and served on the Environmental Oversight Committee for the Central Artery/TunnelProject.

An attorney, Jim received his Juris Doctorate from Suffolk University Law School and his Bachelors Degree from the University of Massachusetts, Amherst. Jim serves on several non-profit boards, includingtheBostonHarborAssociationandtheDorchesterYouthAcademy,analternativemiddleschool serving the at-risk youth in Boston.

sadhu Aufochs JohnstondepuTy ciTy MaNaGer, ciTy of vaNcouverDeputy City Manager Sadhu Aufochs Johnston has extensive experience as a city administrator and leader. For six years he was the deputy chief of staff to Chicago Mayor Richard Daley and served as the chief environmental officer for the mayor’s office, the first position of its kind in United States’ city government, where he pioneered environmental programs, strategies and regulations for the City of Chicago.

Mr. Johnston has a Bachelor of Arts in Environmental Studies and Political Science from Oberlin College and Vassar College, and is a recipient of Crain’s Chicago Business 40 under 40 and Building Design and Construction 40 under 40.


bob KissMayor, ciTy of BurliNGToNMayor Bob Kiss is serving his second term as the mayor of Burlington, Vermont. He was first elected in 2006 and re-elected again in 2009. Prior to being Mayor he was a three term legislator in the Vermont House of Representatives. Bob has always been elected to office as a member of the Vermont Progressive party.

Before becoming an elected official Bob had a long career working in human services. He was employed by The Champlain Valley Office of Economic Opportunity for 18 years, 12 years as executive director. While at CVOEO, Bob strengthened and expanded core anti-poverty services like Head Start, The Low Income Home Weatherization Program, Chittenden Emergency Food Shelf, and developed the Warmth Program, Micro Business Development Program, Employee Ownership Program, Fair Housing Project and Vermont Tenants, Inc.

Jim Kohlhaasvice presideNT, eNerGy iNiTiaTives, locKheed MarTiNJim Kohlhaas recently accepted the position of Vice President, Energy Initiatives with Corporate Engineering & Technology (CE&T) reporting to Dr. Ray Johnson. Jim is now responsible for developing the strategic direction for the CE&T Energy Campaign and will be working closely with business areas and Corporate Strategy and Business Development to leverage capabilities and grow the business in the expanding energy market.

Prior to this new position, Mr. Kohlhaas served as Vice President of Spatial Solutions, within the Information Systems & Global Services-INTEL business for the Lockheed Martin Corporation. He was charged with delivering spatial intelligence and information solutions to national, tactical, and civil communities.

Mr. Kohlhaas orchestrated Net-Centric strategies across LM’s programs and initiatives. As part of this role he was responsible for delivering prototypes, experiments and analysis that demonstrates the advantages of a net-centric approach. This content is displayed at Lockheed Martin’s Center for Innovation in Suffolk, VA. In its first year, over 15,000 visitors have been to the Center creating a key discriminator for LM.

Mr. Kohlhaas has been with Lockheed Martin for 20 years, mostly involving classified space and information systems within the intelligence community. He has served as Chief Engineer, Chief Architect, and Program Manager on those programs. Next, he started the Solutions Program to better focus company investments on understanding the applicability of commercial solutions to customer problems. The output of this effort was the Intelligent Information Factory, an architecture instance that has been tailored for key customers.

Graduating with a degree in Petroleum Engineering from Penn State University and completing the coursework towards a Masters in Engineering Science, Mr. Kohlhaas is a certified Program Manager, LM Fellow Emeritus and 2 time winner of the LM NOVA award. In addition, he servers on Penn State University’s College of IS&T advisory board.

susan leedsdirecTor of capiTal MarKeTs, equiliBriuM resource MaNaGeMeNT, iNc. (eqrM)SusanleadsEQRM’sCapitalMarketsfunction,whichwillbelocatedinNewYorkCity.Shebringsmore than seventeen years experience in investment banking, capital markets and financial guarantyinsurance,servinginNewYork,London,andHongKongwithcompaniessuchasDeutscheBank Securities (Director, Mortgage and Asset-Backed Group, serving in New York, Hong Kong,andBuenosAires),GECapital (Director, inLondonandNewYork respectively for thecompany’sFinancial Guarantee Insurance Corporation subsidiary), and Prudential Securities (Vice President, Financial Institutions Group). She has most recently served as Senior Finance Fellow in the Center for Market Innovation at the Natural Resources Defense Counsel, where for two years she has managed high-level advocacy with major investment banks and other financial sector actors, with the goal of directing capital towards clean energy solutions by incorporating carbon risk in financing and investment practices, and by developing innovative financial products to stimulate greater investment in clean energy and energy efficiency.

Mary MacDonald head of eNviroNMeNT & susTaiNaBiliTy, ciTy of ToroNToMary MacDonald is Head of Environment and Sustainability, in the Office of Mayor David Miller at the City of Toronto.

Mary has over 20 years experience implementing sustainability and environmental policies and programs on five continents – with a focus on innovation and partnership. She has held senior positions at the Stockholm Environment Institute, the World Bank, the United Nations Commission on Environment and Development, the Earth Council, the University of Toronto, the City of Toronto and with two Toronto-based engineering firms. She holds a Masters degree in environment and energy studies from the University of Toronto.

Michael Mageechief of sTaff, Mayor of vaNcouverMichael is currently the Chief of Staff to Mayor Gregor Robertson in Vancouver where he oversees the implementation of the Mayors political agenda for the administration.

Michael is a founder of Vision Vancouver, a new civic Party that brought Mayor Robertson and his team to power on a promise of making Vancouver the greenest city in the world by 2020, fighting homelessness and creating a new creative economy for the City.

Michael bring with him a background in business and social change and well over 25 years of experience in creating effective social change campaigns and programs across Canada and the US.

His work as President of Convergence Communications has helped his clients find the nexus between financial resources, business investment, philanthropy and strategic action. His clients have included some of the most visionary philanthropic and business leaders across North America working on major environmental initiatives to social equity programs. As both a thought leader and organizer with a history of making things happen, he is rooted in a lifelong focus on strengthening democracy at both the movement, political and business levels.

His services range from developing nuanced political strategies to leveraging social investment for maximum social and environmental impact. He is a veteran of dozens of media, public affairs and financing campaigns from across North America. Michael has a rich background in conservation and social justice issues, ranging from climate change and wilderness protection to aboriginal rights and affordable housing.


Known as a broker and convener, Michael works with an outstanding network of financial, communications, political and opinion research associates. As a campaign and program designer, coach and political advisor, Michael is passionate about connecting people to their deepest values - and to each other - in order to leverage lasting, positive change.

In his role as Chief of Staff to Mayor Robertson, Michael is focused on implementation of a strategic plan and city reorganization to make Vancouver the greenest city in the world by 2020, ending street homelessness by 2015 and boosting the city’s creative economy.

Michael is currently the Chief of Staff to Mayor Gregor Robertson in Vancouver where he oversees the implementation of the Mayors political agenda for the administration.

Michael is a founder of Vision Vancouver, a new civic Party that brought Mayor Robertson and his team to power on a promise of making Vancouver the greenest city in the world by 2020, fighting homelessness and creating a new creative economy for the City.

Michael bring with him a background in business and social change and well over 25 years of experience in creating effective social change campaigns and programs across Canada and the US.

His work as President of Convergence Communications has helped his clients find the nexus between financial resources, business investment, philanthropy and strategic action. His clients have included some of the most visionary philanthropic and business leaders across North America working on major environmental initiatives to social equity programs. As both a thought leader and organizer with a history of making things happen, he is rooted in a lifelong focus on strengthening democracy at both the movement, political and business levels.

His services range from developing nuanced political strategies to leveraging social investment for maximum social and environmental impact. He is a veteran of dozens of media, public affairs and financing campaigns from across North America. Michael has a rich background in conservation and social justice issues, ranging from climate change and wilderness protection to aboriginal rights and affordable housing.

Known as a broker and convener, Michael works with an outstanding network of financial, communications, political and opinion research associates. As a campaign and program designer, coach and political advisor, Michael is passionate about connecting people to their deepest values - and to each other - in order to leverage lasting, positive change.

In his role as Chief of Staff to Mayor Robertson, Michael is focused on implementation of a strategic plan and city reorganization to make Vancouver the greenest city in the world by 2020, ending street homelessness by 2015 and boosting the city’s creative economy.

Mandy schmitt MahoneydirecTor of susTaiNaBiliTy, ciTy of aTlaNTaMandy is Director of Sustainability for the City of Atlanta. This initiative is aimed at improving the city’s green programs and policies such as water and energy conservation, reducing our solid waste, reducing emissions, and improving the rates of recycling. Mandy is proud that she was part of the team that launched the BeltLine. Other work experience includes Ahmann, Weeks Properties Group and the Georgia Department of Natural Resources. She serves on the Board of the Atlanta Chapter of Ducks Unlimited, the Green Chamber of the South, Urban Sustainability Directors Network and runs GoGreenInStyle.com, a green lifestyle website, with her husband Sean. She is also a member of the LEAD Atlanta 2010 class. Mandy graduated from Duke University with a master’s degree in environmental management. She also earned a law degree and a bachelor’s degree in biology and environmental studies from Emory University.

suzanne Malec-McKenna coMMissioNer, ciTy of chicaGoSuzanne Malec-McKenna was nominated by Mayor Daley in August 2007. Malec-McKenna brings more than 15 years of experience in environmental issues including sustainable development and ecological preservation and restoration.

Malec-McKenna has served for nearly 14 years in the Department of Environment most recently as Deputy Commissioner of Natural Resources and Water Quality. Prior to joining City government she worked as an Urban Forestry Manager for the Openlands Project.

“Suzanne has worked tirelessly in her previous role to protect and preserve our green spaces, water and other natural resources,” said Mayor Daley. “As we move forward, I am confident that Suzanne will continue the work that has put Chicago well on its way to being the most environmentally-friendly city in the nation.”

Malec-McKenna has worked on key projects for the department including Greencorps Chicago; Chicago Center for Green Technology; the Calumet Initiative and various water conservation and protection efforts.

“I am truly honored to serve the people of the City of Chicago in this position,” said Malec-McKenna. “I look forward to working with former Commissioner Sadhu Johnston, other City Departments and Sister Agencies, and Aldermen as we make Chicago the Greenest City in America.”

Malec-McKenna serves on various boards and committees including the Chicago Wilderness Coalition; the Mayor’s Urban Agriculture Sub-Committee; the University of Illinois at Chicago’s Institute for Environmental Science and Policy; and the State of Illinois’ Natural History Survey.

Malec-McKenna graduated from the University of Illinois with a bachelor’s degree in Ornamental Horticulture, and graduated from Northwestern University with a master’s degree in managerial communications. She is currently seeking her Ph.D. from Northwestern in communication studies.

Michael MeehanpresideNT aNd ceo, carBoNeTworKs corporaTioNMichael Meehan is Carbonetworks’ President & CEO and is responsible for the company’s operational and strategic direction. As one of the company founders he created the Carbonetworks concept and was originally the primary architect of the network. Michael’s professional history spans 14 years in software, including senior roles in product management, marketing and technology development. Prior to joining Carbonetworks Michael held senior positions in systems management and software service vendors, and also founded the Climate Resource, an online climate change information provider.Nominatedas2009E&YEntrepreneuroftheYear,MichaelhaswrittenforPointCarbon’sTrading Carbon Magazine, Greener Computing, ClimateBiz, CleanTechnical, Huffington Post and the San Jose Mercury News. Michael has an undergraduate degree in Environmental Studies and an MBA.MichaelliveswithhisfamilyinSanFrancisco,California.http://twitter.com/michaelmeehan

Ken Melamed Mayor, ciTy of whisTlerKen Melamed was born in Philadelphia, Pennsylvania in 1954, and moved to Montreal in 1966 when he was 13. He majored in science at Dawson College (CEGEP), Quebec, graduating in 1973 before heading west, to Jasper, Alberta.


Ken arrived in Whistler in February, 1976 and fell in love with the mountains and the small community of Whistler. He started as a lift operator for Whistler Mountain and became a professional ski patroller two seasons later in 1977, a position he’s held ever since.

In 1978, Ken worked in construction in the off-season and 10 years later started his own artisian-oriented contracting business, Ken Melamed Stoneworks, creating much of the beautiful rock walls throughout the valley.

In 1989, Ken helped initiate Whistler’s grassroots, citizen environmental organization, AWARE, serving as president for six years between 1990 and 1996. He was also a founding director of Smart Growth BC in 1999, serving for six years. He successfully ran for Council in November 1996 and served three terms as councillor before being elected mayor in 2005.

As mayor, Ken’s primary goals are to champion the implementation of Whistler’s long-term sustainability plan, Whistler2020, which he helped to develop, and to direct Whistler’s planning for the 2010 Winter Olympic and Paralympic Games. He serves on numerous boards and community committees, including Tourism Whistler, Fraser Basin Council, and American Friends of Whistler.

Married, with two sons, Ken remains an avid skier and mountain biker.

nils MoeMayor’s susTaiNaBiliTy advisor, ciTy of BerKeleyNils Moe currently serves as the Mayor’s Sustainability Advisor for the City of Berkeley. In this role, he is helping to implement Berkeley’s Climate Action Plan and working with the city staff and the community to reduce their GHG emissions. He has participated in the design and implementation of the nation’s first PACE program that continues to garner international attention. He has also helped to launch Berkeley’s citywide climate action plan that sets goals to lower our city’s greenhouse gas emissions over the next 50 years. The plan recently won the United Nation’s award for excellence. Most recently Nils participated in a United Kingdom Climate and Behavior Change delegation and was selected by the Heinrich Boll Foundation as one of five US representatives to meet with environmental leaders across Europe.

Gavin newsomMayor, ciTy aNd couNTy of saN fraNciscoGavin Newsom, 42, is the youngest San Francisco mayor in over a century. Newsom, the son of William and Tessa Newsom, grew up in the San Francisco Bay Area. He attended Santa Clara University on a partial baseball scholarship, graduating in 1989 with a B.A. in political science.

After college, Newsom sold orthotics and worked as an assistant at a real estate firm. In 1991, Newsom recruited investors and founded PlumpJack, a wine shop, which he grew into a thriving enterprise of 15 businesses including wineries, restaurants, and hotels.

In 1996, Newsom was appointed by San Francisco Mayor Willie Brown to the city’s parking and traffic commission. Soon he was elected president of the commission. In 1997, Brown appointed him to the city’s board of supervisors. Voters elected Newsom to the board in 1998 and re-elected him in 2000 and 2002.

As a supervisor, Newsom focused on combating homelessness. His initiative, Care Not Cash, provided homeless individuals services instead of welfare. Although the city’s political establishment opposed Care Not Cash, the voters approved it in November, 2002. One year later, after a fiercely-contested race, Newsom was elected mayor.

After only 36 days as mayor, Newsom gained worldwide attention when he granted marriage licenses to same-sex couples. This bold move set the tone for Newsom’s first term. Under his energetic leadership, the economy grew and jobs were created. The city became a center for biotech and clean tech. He initiated a plan to bring universal health care to all of the city’s uninsured residents. And Newsom aggressively pursued local solutions to global climate change.

Under Mayor Newsom’s leadership, San Francisco has become a world leader among cities in the promotion of clean energy, alternative transportation and environmental protection initiatives. San Francisco has set an ambitious goal of reducing CO2 emissions to 20% below 1990 levels by 2012, and complete carbon neutrality for City Government by 2020. Under Mayor Newsom’s leadership, San Francisco has implemented the nation’s most comprehensive green building standards, the nation’s most aggressive recycling and composting requirements (leading to the City’s current 72% diversion rate), and the nation’s largest solar incentive program, GoSolarSF. The City has also implemented innovative commercial energy efficiency programs, saving 1,500 San Francisco businesses over $5.7 million in utility bills annually over the last 2 years. Mayor Newsom recently announced the creation of the SF Sustainable Financing program, the country’s largest local property tax-based loan program focused on greening local commercial and residential buildings, and the development of legislation to implement the recommendations of the Existing Commercial Building Task Force, including requiring energy benchmarking and reporting for all commercial buildings in the City.

In 2007, Newsom was re-elected with over 73% of the vote. Since then he has built upon the successes of his first term, launching new environmental initiatives and a comprehensive strategy to transform one of the city’s most troubled neighborhoods into a life sciences, digital media, and clean tech center. More than 80% of the previously uninsured are now covered by city’s first-of-its-kind universal health care program.

Newsom’s commitment to combating homelessness has never waned. As mayor, he has moved 10,000 homeless individuals off the street, and his volunteer initiative, Project Homeless Connect – now imitated in over 130 cities – has attracted over 20,000 San Franciscans who give their time to help the homeless.

Newsom is married to Jennifer Siebel Newsom. Their daughter, Montana, was born on September 18, 2009.

linda OglovolyMpic liaisoN, ciTy of vaNcouverAn international consultant based in Vancouver, Linda Oglov is one of Canada’s top professionals in organizing, funding and promoting major events. Over the past 25 years, Linda has helped advance the business agenda of numerous BC, Canadian and international companies, including Bell Canada, RBC International, Barclays Bank and British Telecom. She is a highly experienced negotiator and has been a coach and mentor to Canada’s most senior executives.

Lindaheldexecutivepositionsand/orservedasaconsultantformanyofthemajoreventsinCanadaover the past 25 years, including EXPO 86, the Calgary 88 Olympics and the 1994 Commonwealth Games. Internationally, she was a lead consultant to the 1998 Kuala Lumpur Commonwealth Games, as well as to many of the National Olympic Committees in Southeast Asia during the period 1994-1998 when she ran the Asia office of an international agency. She has consulted to a number of Olympic, Commonwealth Games and Asian Games’ bids, most recently to the Halifax (Canada) bid for the 2014 Commonwealth Games and the Madrid Bid for the 2016 Summer Games.


Linda is considered one of the chief organizers behind Vancouver’s successful win of the rights to host the Vancouver 2010 Olympic and Paralympic Winter Games, having been Vice President Marketing from 2000-2004. She currently works for a number of Olympic and non-Olympic clients including the City of Vancouver and CleanWorks BC (an alliance of clean tech and independent power producers). She was a leader in developing the “Vancouver Green Capital” business brand for the City of Vancouver.

José María FiguereschairMaN of The carBoN war rooM, forMer presideNT of cosTa rica aNd forMer ceo of world ecoNoMic foruMAs President of Costa Rica, José Maria Figueres created a comprehensive national sustainabledevelopment strategy, combining sound macroeconomic indicators, strategic human development investments, and a strong alliance with nature. In the international arena, President Figueres has pioneered the linkage between sustainable development and technology. He helped create and lead the United Nations ICT Task Force as its first Chairperson. He was the first person to be named CEO of the World Economic Forum, where he strengthened global corporate ties to social and governmental sectors by identifying common long-term interests.

Currently President Figueres is CEO of Concordia21 in Spain, dedicated to supporting organizations which promote development and democratic values around the world. He holds an Industrial Engineering Degree from the U.S. Military Academy at West Point, and a Masters in Public Administration from the JFK School of Government, Harvard University.

Eduardo PaesMayor, ciTy of rio de jaNieroEduardo Paes assumed the position of Mayor of Rio de Janiero, Brazil, on January 1, 2009. Previously, he served as Federal Deputy and Alderman for Rio de Janiero. Paes was Chairman of the Budget Committee in the House, where he created the national budget, which enabled the population to participate in decisions regarding the use of local government resources. With the second election of his predecessor, Cesar Maia in 2000, Paes was appointed Secretary of Municipal Environment Management in Rio, where he continued the city’s reforestation program, which planted more than one million tree seedlings in degraded areas of the city. Mayor Paes has established a strong reputation for his tireless efforts to end corruption in the national government, and for showing loyalty to the people and the nation over any individual political party. For his efforts, the “Review Period” honored him as one of the 100 most influential Brazilians in the year 2009.

shannon Parry, lEED APsusTaiNaBiliTy direcTor, ciTy of saNTa MoNicaShannon Parry manages the City of Santa Monica’s Sustainable City Program. She focuses on the development, implementation and evaluation of programs and policies related to the Sustainable City Plan. Her work includes sustainability indicators, business and community greening, sustainability management, green building and a host of other urban planning and municipal sustainability projects. She is an Executive Committee member of the STAR Community Index whose purpose is to develop a national, consensus-based rating system to measure community sustainability. Shannon serves on the Steering Committee of Green Cities California in order to work cooperatively and collectively with other CA cities to accelerate local, regional, and national efforts to achieve sustainability. She sits on the Board of the Westside Urban Forum to engage diverse stakeholders in critical dialogue around urban issues in Los Angeles. Shannon is a member of the Urban Sustainability Directors Network and the Vice Chair of the Santa Monica Chamber of Commerce’s Environmental Affairs Committee. She is a LEED accredited professional. Shannon has authored curriculum for college students and the general public that promote sustainable practices in the urban environment. She received her Masters Degree in Urban Planning from UCLA where she was the Director of the Environmental Coalition and founding member of the Chancellor’s Advisory Committee on Sustainability. Shannon receivedtheErinBrockovich/EdMasryFellowshipforLeadershipinEnvironmentalJusticeandtheJeffrey L. Hanson Distinguished Service Award. She holds a B.S. in Environmental Science, Policy and Management and a B.A. in Peace and Conflict Studies from UC Berkeley.

Johanna PartindirecTor of cliMaTe proTecTioN iNiTiaTives, ciTy of saN fraNciscoJohanna Gregory Partin serves as Director of Climate Protection Initiatives in the office of Mayor Gavin Newsom, where she advises Mayor Newsom on citywide sustainable energy, climate, transportation, green building and other programs promoting sustainability for San Francisco. From 2006-2009, Ms. Partin served as Renewable Energy Program Manager at the San Francisco Department of Environment, where she worked to help the City meet its renewable energy targets, focusing on the residential and commercial sectors. Ms. Partin has over 14 years’ experience in the fields of renewable energy, microfinance, gender equity and sustainable development, and has worked both locally and in more than 14 countries around the world. Johanna has a Master’s degree in Energy & Environmental Policy from the University of Delaware and a Bachelor’s degree in Environmental Studies and Anthropology from UC Santa Barbara.

Julia ParzencoordiNaTor, urBaN susTaiNaBiliTy direcTors NeTworKJulia Parzen is a sustainability consultant to government, foundations, and nonprofit organizations. Currently she spends two thirds of her time as Coordinator of the 70-member Urban Sustainability Directors Network, a network formed to enable public sector sustainability leaders to learn from each other and accelerate achievement of ambitious city sustainability goals. She recently finished a two-year stint as advisor to the City of Chicago on the development and implementation of the Chicago Climate Action Plan. Julia has held both public and private sector positions that prepared her to launch JP Consulting and bring real and significant value to sustainable development program design, project management and evaluation. She has been a foundation program officer for conservation and employment (The Joyce Foundation); a triple bottom line entrepreneur (co-founder and Chief Executive Officer, Working Assets Money Fund); and a leader in state government energy financing (Deputy Director of Office of Policy, Planning, and Research, Department of Business and Economic Development, State of California) and federal government economic assistance programs (Acting Branch Chief of Industrial Analysis, U.S. Environmental Protection Agency).


Julia has taught courses and design studios on development finance, industrial policy, and financial innovation at UC Berkeley and while serving as an adjunct faculty member at the UIC Center for Urban Economic Development while writing her book Credit Where It is Due: Development Banking for Communities (Temple University Press, 1990). She also co-editedEnterprising Women with Sara Gould (OECD, 1990) and co-authored Financing Transit Oriented Development with Abby Siegel, a chapter in The New Transit Town: Best Practices in Transit-Oriented Development, edited by Hank Dittmar and Gloria Ohland (Island Press, 2004). Julia is a member of Urban Sustainability Associates a national network of practitioners committed to advancing innovation in the application of sustainability strategies to urban centers. She has served as the board chair of Working Assets, Muir Investment Trust, Center for Neighborhood Technology, Newberger Hillel Center at the University of Chicago, and Akiba-Schechter Jewish Day School. She also has been a board member for I-Go Car Sharing, Sand County Venture Fund, and Anawim Fund of the Midwest.

Tony PaulsonseNior advisor, carBoN war rooMMr. Paulson is a senior executive specializing in renewable energy and energy efficiency financial structuring, strategy, and business development. Mr. Paulson joined the Carbon War Room as a Senior Advisor and is the resident expert in EERE public finance.

Prior to joining the Carbon War Room, Mr. Paulson served as the North American Director of Finance for Canadian Solar where he designed a vendor finance program utilizing foreign capital for international solar projects. Mr. Paulson co-founded PowerHouse Service, an origination and program management services company focusing on EERE programs for public agencies. He also served as a member of SunEdison’s sales force. In this capacity, he proposed energy sales agreements to public agencies for solar projects and municipal syndicated solar programs. Prior to joining SunEdison, Mr. Paulson co-founded an origination company, whose business model was to aggregate for syndication to the secondary market power purchase agreement contracts for renewable energy projects. Previously, Mr. Paulson worked in the venture capital and investment banking industry as an associate with Silicon Valley Bank and BankBoston Robertson Stephens.

Mr. Paulson received a Bachelor Degree in Finance from the University of Colorado at Boulder, Leeds School of Business. He an avid fly fisherman and telemark skier. Mr. Paulson resides in San Francisco, and is a father of two.

Marc Porat operaTiNG advisor, peGasus capiTal, chairMaN of The Board of zeTa coMMuNiTies aNd calsTar producTsMarc has led pioneering technology and materials companies for 25 years, first in the information sector and now in energy efficiency. Seven years ago he moved into cleantech with a vision to radically reduce energy consumption in the built environment, create green jobs and attack climate change. He has created a group of venture-backed green manufacturing companies to reinvent traditional building materials and transform building design, construction and operation. Marc founded three companies focused on creating jobs, reducing energy consumption and mitigating climate change: Serious Materials,CalStarProducts,andZETACommunities.ThegeographicalfocusisUSAandChina.

In 2009, Marc joined Pegasus Capital Advisors as an Operating Advisor. Pegasus is a multi-billion dollarprivateequityfirmheadquarteredinNYCwithoperationsinWashingtonDCandCalifornia.The firm is establishing its fifth fund exclusively focused on sustainability, energy efficiency and renewable energy. The Pegasus Sustainable Century merchant bank and fund is designed to create a portfolio of companies that can consequentially impact energy supply and demand, create green collar jobs and mitigate climate change. Marc is developing an operating company, “GreenCube”, focused on transforming existing commercial and residential buildings in the USA at-scale, improving building performance, health and comfort while eliminating 50% of their energy consumption.

Marc completed his Stanford University doctoral dissertation, The Information Economy in 1976. Following, he served as Senior Economist at U.S. Department of Commerce, then Director of the Aspen Institute. At the Aspen Institute, he produced, wrote and hosted a PBS documentary, “The Information Society”. In 1983, he founded Private Satellite Network, a DBS pioneer that built and operated television and data networks for Fortune 500 companies, serving as its Chairman & CEO (sold). In 1988, Marc joined Apple Computer and led a project that developed a smart personal communicator. Apple spun out the project as General Magic, building communication hardware and software for PDAs and intelligent agents. Marc was Chairman & CEO (IPO 1995). In 1998, Marc founded Perfect Commerce and served as its Chairman. The web-based enterprise software company provides CRM, sourcing, procurement software, and supply chain optimization (merged). In 2002, Marc transitioned from information technology to cleantech and founded Serious Materials.

Marc is a Board Member of the Clean Economy Network Foundation and a supporting member of Natural Resource Defense Council, Environmental Defense Fund, U.S. Green Building Council, China-U.S. Energy Efficiency Alliance, Environmental Entrepreneurs, Rocky Mountain Institute and Global Green.

Martin PowelldirecTor eNviroNMeNT aNd capiTal projecTs, loNdoN developMeNT aGeNcyMartin is Director of Environment & Capital Projects at the LDA where he is responsible for the delivery of the core Regeneration and Climate Change projects.

He was formally a Management Consultant responsible for delivery of business improvement and project management improvement projects for several global organisations.

Martin’s has a degree in Engineering. He worked for an Italian Engineering Company in Rome before joining Ove Arup & Partners where he was responsible for the delivery of several high profile projects in Italy, Spain and Asia.

Martin has written several papers on Project Management and is one of the authors of the Wiley Guide to Project Management. He also features on the. NBS learning channel presenting on project management.

Dave ramslie MaNaGer, susTaiNaBle developMeNT proGraM, ciTy of vaNcouverDave Ramslie is the City of Vancouver’s Sustainable Development Program Manager. In this role Dave is responsible for developing and delivering programs and policy supporting the development of green infrastructure and green buildings. His current projects include developing a strategic plan to achieve carbon neutral buildings city-wide by 2020 and a comprehensive building retrofit program. In addition to this he is also developing a green jobs training program. Dave’s work has won national awards from the Canadian Institute of Planners for Vancouver’s EcoDensity Initiative, and from the Canadian Green Building Council, for Government Leadership in Green Building.


Andrea reimercouNcillor, ciTy of vaNcouverDeputy Mayor Andrea Reimer was elected to Vancouver City Council in 2008 a member of Mayor Gregor Robertson’s Vision Vancouver team. She is a recognized leader on environmental issues, a powerful speaker, with a personal background that gives her compassion for troubled youth and the homeless.

Andrea is the lead councilor for the Mayor’s Greenest City Action Team, chairs the City’s Planning and Environment Committee, and sits on the Vancouver Economic Development Commission. At the Metro level Andrea is a Director of the Greater Vancouver Regional District, a member of Metro Vancouver’s Regional Planning Committee and sits on the Agriculture Committee .

The Greenest City Initiative — which Councilor Reimer leads for the Mayor and council — is a hallmark of Mayor Robertson’s first term in office. It resulted in 31 new “quick start” initiatives in 2009: these include the launch of Green Capital, world leading green building standards, continent-leading electric vehicle infrastructure requirements, and community based initiatives such as the car-free streets program and Burrard Bridge bike lanes,. These actions in the last year were directly responsible for Corporate Knights naming Vancouver the most sustainable city in Canada. Through leadership, example and friendly competition, Vancouver plans to make its contribution to sustainability felt globally through the Vancouver 2020 Bright Green Future action plan.

In addition to environmental responsibility, Councilor Reimer has led the city in establishing the highest policy standards for open data and open sourced information access for citizens in the world. She also has championed expanded supports for children, youth and families.

Prior to being elected to Vancouver’s City Council, Andrea served for eight years as the Executive Director of the Wilderness Committee, Canada’s largest membership-based organization dedicated to the preservation of biodiversity.

Andrea became active in party politics in 1996 through involvement in the Green Party. Andrea became chair of the Vancouver Green Party in 2002. That same year she was elected to the Vancouver School Board, becoming the first school board trustee to be elected under a Green Party banner in Canada. She left the Green Party in 2008, bringing her environmental ideals to the recently founded municipal party, Vision Vancouver.

Andrea’s compassion for the homeless and for youth springs in part from her own experiences. As a teenager Andrea lived on the street, an experience which solidified her understanding of life’s hardships, as they are experienced daily by thousands of struggling people, particularly in Vancouver’s Downtown Eastside. She emerged from her challenging circumstances to become one of Vancouver and British Columbia’s key political and environmental leaders and an inspiration to many.

Andrea lives in Vancouver with her husband and teenage daughter.

Elise rindfleischoperaTioNs execuTive, carBoN war rooMElise Rindfleisch recently joined the Carbon War Room, building on 10 years of education and experience in the environmental and climate change fields. Prior to joining CWR, Elise assisted Brazilian NGO Instituto Terra in evaluating the carbon offset potential for their Atlantic Rainforest reforestation activities, and worked on brownfields and solar development legal matters.

EliserecentlyreceivedaMasterofEnvironmentalManagementfromtheYaleSchoolofForestryand Environmental Studies with concentrations in climate change and industrial environmental management. Elise’s research focused on the natural personal care industry; her Master’s Project case study on Clorox’s purchase of Burt’s Bees is published and taught at the Yale School ofManagement.WhileatYale,ElisewroteabackgroundpaperonclimatechangeadaptationfortheUNDP and was student delegate to the 13th and 14th COPs of the UNFCCC.

Also a licensed attorney, Elise has a Juris Doctor magna cum laude from Vermont Law School. At Vermont Law School, Elise focused on environmental and climate change law, particularly as these fields relate to business transactions. She has published law review articles on climate change-related shareholder proposals and brownfields redevelopment funding and was an editor for the Vermont Journal of Environmental Law. During law school, Elise worked in a legal capacity for Alston & Bird LLP; McMahon DeGulis LLP; the US EPA; and the City of Cleveland.

Elise was formerly a Research Associate at Harvard Business School and an EH&S Intern at GE. She has a BA, with High Honors in Environmental Studies, from Oberlin College.

Gregor robertsonMayor, ciTy of vaNcouverIn November 2008, the people of Vancouver chose Gregor Robertson as their new Mayor. He was elected on a platform of ending street homelessness in the City of Vancouver by 2015, and making Vancouver the greenest city in the world.

Under Mayor Robertson’s leadership, Vancouver has taken swift action on becoming more sustainable by doubling the City’s bicycle infrastructure budget, setting the highest electric vehicle charging standards for new buildings in North America, and approving laneway housing. Since being elected, Vancouver City Council has also expanded the popular ‘car-free days’ throughout the city, doubled the number of pedicab licenses, created more community garden plots, and installed protected bicycle lanes on the Burrard Street bridge.

On his first day in office, Mayor Robertson moved quickly on homelessness and established the Mayor’s Homeless Emergency Action Team (HEAT). HEAT rapidly opened five low-barrier shelters that immediately filled to capacity, providing close to 500 people a night with a safe, secure place to sleep. The Mayor has since secured over $170 million in new funding from the provincial government for social housing throughout the City.

Mayor Robertson is committed to building a sustainable and prosperous future for Vancouver. Prior to entering politics, Gregor co-founded Happy Planet, and grew the Vancouver-based socially responsible company up to 50 employees in 10 years. Happy Planet produces organic juices, promotes health and nutrition, and for his achievements as a successful entrepreneur and community leader, Gregor was named one of Canada’s “Top 40 under 40” by The Globe and Mail in 2004.

Gregor and his wife Amy have four children: Terra, Satchel, Jinagh and Johanna. He is an avid cyclist and loves to play soccer.


Helen shilleralderMaN, ciTy of chicaGoHelen Shiller has been the Alderman of the 46th Ward since April 1987 and the Chairman of the Chicago City Council’s Committee on Human Relations since October 2009. In City Council, she has sponsoredand/orlobbiedformanylegislativeactsthatfocusonimprovingthequalityoflifefortheresidents of her ward and the entire city. She fought for the passing of the human rights ordinance, recycling programs and city responsibility for public health and safety in the Chicago Public Schools. She initiated and passed a tough anti-apartheid ordinance in 1990, and her budget amendment tripled the city’s AIDS budget in 1992. She co-sponsored the domestic partners ordinance extending benefits for unmarried couples. Throughout her aldermanic career, Alderman Shiller has struggled in support of affordable housing and a city budget that makes Chicago a more affordable place to live.

SuStAinABility

A strong voice for sustainability and green technologies, Alderman Shiller took the lead on a voluntary pilot program for multi-unit residential building recycling and created a task force to improve the city’s recycling program. She is an advocate for LEED certification in all Planned Developments as well as in other development projects throughout the city.

Wayne seatonMaNaGiNG direcTor, puBlic fiNaNce, susTaiNaBle puBlic iNfrasTrucTure Group, wells farGo securiTiesMr. Seaton has sixteen years of experience assisting major municipal issuers with infrastructure financings. Prior to joining Wells Fargo Securities, Mr. Seaton was head of public finance for a minority-owned investment banking firm for four years, and before that, managing director at a major Wall Street firm. Mr. Seaton has lead managed over $10 billion in transactions for some of the largest and most complex capital programs in the nation.

At Wells Fargo, Mr. Seaton is head of Sustainable Public Infrastructure. His group assists municipalities nationwide with financing projects designed to use energy more efficiently, and is at the forefront of developing a Property Assessed Clean Energy (PACE) program. In addition, his team has considerable expertise with certain provisions that were created or enhanced under the American Recovery and Reinvestment Act, such as Build America Bonds, Recovery Zone Bonds,New Clean Renewable Energy Bonds, Qualified Energy Conservation Bonds, and the increase to $30 million from $10 million for a bond to be bank-qualified.

Mr. Seaton holds NASD Series 7, 53 and 63 and licenses. He received his AB from Harvard University and MBA degree in Finance and International Business from Columbia Business School.

Jigar shah ceo, carBoN war rooM & fouNder, suNedisoNA renowned visionary committed to renewable energy, Jigar Shah launched SunEdison in 2003 based upon a business plan he developed in 1999 for a university class. That plan became the basis of the SunEdison business model: Simplify solar as a service. This model changed the status quo, allowing organizations to purchase solar energy services under long-term predictably priced contracts and avoid the significant capital costs of ownership and operation of solar energy systems. Under Shah’s guidance, SunEdison pioneered the solar power services agreement (SPSA) model, which has turned solar services into a multi-billion dollar industry. SunEdison now has more solar energy systems and megawatts under management than any other company.

Shah is an expert on energy project finance, changing energy policy, working with entrenched stakeholders, convincing different type of customers to embrace energy technology. Today, Shah works closely with some of the world’s leading influencers and guides policy makers around the globe on key issues surrounding renewable energy, global warming and sustainability. Shah holds a BS in Mechanical Engineering from the University of Illinois, Champaign-Urbana, and an MBA from The University of Maryland. He sits on the boards of the Prometheus Institute and Greenpeace USA.

brian P. sheehan, lEED AP direcTor of susTaiNaBiliTy, deparTMeNT of plaNNiNG, preservaTioN & susTaiNaBiliTy, ciTy of charlesToN Brian Sheehan — BA, Miami University; MCRP, University of Oregon; LEED AP

In key government and non-profit roles, Brian has won recognition for leadership and creativity in tackling renewable energy, environmental, affordable housing, urban redevelopment, regional transportation and climate change challenges. Leading planning, urban development and sustainability efforts for communities in Salem OR, San Diego CA, Chula Vista CA, Portland OR and now Charleston SC, Brian has spearheaded award winning sustainability programs and projects including creation of a US$250 million Smart Growth Incentive Program, development of the National Energy Center for Sustainable Communities and numerous other innovative public private partnerships.

ryan skomorowskifouNder, direcTor, aNd ceo, GreeN.swiTch capiTalRyan Skomorowski is the founder, director and Chief Executive Officer of Green.Switch. He has significant experience in finance, securities, property development, construction and environmental initiatives. Major projects recently spearheaded by Mr. Skomorowski include the $250-million Burnaby Mountain Sports & Medical Centre and a boutique hotel and fishing resort in Costa Rica.

bryan slusarchukceo aNd direcTor, GreeNscape capiTalMr. Slusarchuk has significant experience financing and operating companies involved in a wide range of sectors. Mr. Slusarchuk, prior to establishing a track record as a successful private and public company CEO, raised and managed venture capital at a premier Canadian investment dealer. Mr. Slusarchuk has experience on the board of several private and public Canadian companies and has developed extensive corporate governance expertise while involved with multiple companies operating in consumer goods, retail, media and manufacturing. He has an extensive European and North American financial network and has worked within it to finance and structure multiple North American and European ventures. Mr. Slusarchuk is a founder and CEO of Skanderbeg Capital Group, a company focused on deploying venture capital to fast-growing venture situations.


Joel solomonceo, reNewal parTNers & chairMaN, reNewal2 iNvesTMeNT fuNdJoel Solomon is President and CEO of Renewal, and Chairman for Renewal2 Investment Fund.

In 1993, Joel joined Carol Newell in the development of Renewal Partners and the Endswell Foundation. Renewal has since invested in over seventy-five companies that share its commitment to socially responsible growth, including some of the best-known social purpose companies in Canada: Happy Planet Foods, Small Potatoes Urban Delivery (SPUD), and Communicopia, and Michael Jantzi Research Associates. Joel is Co-Founder & Chairman to the Renewal2 Investment Fund, a fund that provides investors the opportunity to participate in the development of business at the forefront of social and environmental innovation.

Joel is a founding member of Social Venture Network (SVN), Business for Social Responsibility (BSR), Canadian Business for Social Responsibility (CBSR), Renewal Land Company, Tides Canada Foundation and the Sage Centre. He is Chair of the Board of Tides Foundation (US) and sits on numerous other boards throughout North America.

Karoline Amalie steen depuTy direcTor for susTaiNaBiliTy aNd iNTerNaTioNal relaTioNs, ciTy of copeNhaGeNAs Deputy Director for Sustainability and International Relations, Karoline Amalie Steen’s main current responsibilities are developing and implementing the City’s Green Growth Strategy; and advising the Mayor on Climate Issues and International Relations. Her former responsibilities in the City of Copenhagen were coordinating and implementing activities in Copenhagen during COP 15 (Climate Summit for Mayors and Hopenhagen-LIVE (public activities on climate change during COP 15)) and the OECD-report on Copenhagen’s competitiveness.

Karoline Amalie Steen has been 4 years in the City of Copenhagen and has before that been employed in the Ministry for Finance in the Central Government advising the Minister on financial and European Affairs.

As international experiences Karoline Amalie Steen has been a consultant in the French Prime Minister’s Economic Council of Analysis in Paris and been employed in the Environmental Cabinet in the European Commission.

James Tansey, PhDexecuTive direcTor, ceNTre for susTaiNaBiliTy aNd social iNNovaTioNJames Tansey joined UBC in 2006 and is an Associate Professor, leading the Sauder School of Business’ activities on sustainability and social innovation. James is Director of the Centre for Sustainability and Social Innovation. He also works closely with the Business Family Centre to identify areas where advances in social innovation can meet philanthropic goals. James’ research activities cover a number of areas including social enterprise, climate change the social impacts and acceptability of new technologies. He has written extensively on the role of public consultation in the governance of industrial societies, industrial ecology, scenario methods and climate change. His current research focuses on international markets for carbon exchange, innovation and social innovation and strategic corporate social responsibility.

James received his PhD in Environmental Sciences from the University of East Anglia in 1999. Prior to joining UBC he was based in the UK as a lecturer in Science and Technology Studies with the Said Business School in Oxford, where he was also deputy director of the James Martin Institute for Science and Civilization.

James is co-founder of a Canadian carbon offset company called offsetters.com and works with start-up companies in the green technology sector. He has taught on MBA, EMBA, Executive Education, MSc and Undergraduate programmes in the UK and Canada. He is co-director of Sauder’s new Accelerated Leadership Programme. He currently contributes to the MBA core and to graduate teaching in the Faculty of Graduate Studies. James has recently worked as an advisor and contributor to the World Economic Forum, the UK National Audit Office, Oxford Analytica, Cisco, Isis Innovation (Oxford), and the Canadian Environmental Assessment Agency.

Mr. sandy Taylorhead of cliMaTe chaNGe aNd susTaiNaBiliTy, BirMiNGhaM ciTy couNcilSandy is Head of Climate Change and Sustainability in Birmingham City Council, responsible for the development of Birmingham’s response to Climate Change, working across City Council Directorates and with other city partners through the City’s Local Strategic Partnership.

He is a member of the Birmingham Environment Partnership and Vice-Chair of City’s Carbon Reduction Partnership. He also leads Birmingham Science City’s Low Carbon Group. He is also the City Council officer representative on the Eurocities Environment Forum and is co-Chair of the Eurocities Air Quality, Energy Efficiency and Climate Change Working Group.

He is an economist with a Diploma in Town Planning and is a member of the RTPI, Institute of Economic Development (IED), IEMA (Institute of Environmental Management and Assessment), the Academy of Urbanism and was also recently elected a Fellow of the Royal Society of Arts (FRSA).

Dagmar TimmerdirecTor, oNe earThDagmar Timmer is an Associate with the International Institute for Sustainable Development (IISD) and Principal of Resourceful Solutions Consulting, based in Vancouver. Dagmar is a co-founder and Managing Director of the One Earth Initiative, a non-profit that stimulates action on sustainable consumption and production issues. With her sister Vanessa, she co-hosts The Sustainable Region, an award-winning television show. She writes and teaches on sustainability. From 2003-2005, Dagmar worked in Nairobi, Kenya with the World Agroforestry Centre (ICRAF, www.asb.cgiar.org). Focusing on research and policy change, her program facilitated a network of rainforest-agriculture margin sites in the Amazon of Brazil and Perú, the Congo Basin of Cameroon, Sumatra in Indonesia, northern Thailand, and Mindanao in the Philippines. While at ICRAF, Dagmar was a co-author of the Millennium Ecosystem Assessment (MA). She worked from 1999-2003 on global forest issues at IUCN (International Union for the Conservation of Nature) in Switzerland. Dagmar’s work has spanned from local to international levels – from grassroots campaigns in Vancouver to advocacy in international policy fora such as the UN Conference on Human Settlements. She organized the inaugural dialogue amongst NGOs and the World Trade Organization staff on sustainability concerns in 1998. Dagmar holds an MA in Political Science.


Vanessa TimmerdirecTor, oNe earThVanessa Timmer, PhD, is a co-founder and Director of the Vancouver-based, One Earth Initiative, a nonprofit research and advocacy group engaged in accelerating the transition to sustainable consumption and production patterns in North America and internationally. Timmer is also a Research Fellow at the University of British Columbia (UBC) and teaches courses on social change, systems thinking and sustainability at UBC, Simon Fraser University, Metro Vancouver and the International Institute for Sustainable Development. Timmer co-hosts the award-winning Canadian television show, The Sustainable Region, and sits on the Board of two nonprofits which engage the arts for social change. Timmer previously worked for the International Centre for Sustainable Cities (ICSC) in launching the Partners in Long-term Urban Sustainability (PLUS) Network and for the regional government, Metro Vancouver, in shaping the regional sustainability principles and framework and developing its public engagement programs. Timmer holds a Ph.D. in Environmental Studies from the University of British Columbia, a M.Sc. from Oxford University and a Queen’s University Bachelor of Arts Honours. She was a Fulbright Research Fellow at the Kennedy School of Government at Harvard University as part of the Initiative on Science and Technology for Sustainability.

brent Toderian, MCiPdirecTor of plaNNiNG, ciTy of vaNcouverBrent Toderian was appointed the City of Vancouver’s Director of Planning in 2006, succeeding celebrated Co-Directors Larry Beasley and Dr. Ann McAfee. His broad mandate involves development planning and architectural design approval, including many projects related to the 2010 Winter Olympics, as well as city-wide policy and visioning, central area planning, and community planning. Since assuming the Director’s role, Brent has been encouraging candid and constructive dialogue around an evolving urbanism, with new opportunities around sustainability, creativity, and architectural risk-taking.

Brent came to Vancouver from the City of Calgary, where as Manager of Centre City Planning + Design, he oversaw visioning, planning, development and design in Calgary’s Downtown, Midtown and Beltline communities. Brent also created and was leading Calgary’s award-winning Centre City Plan, which took a creative and unusually holistic approach to the future success of Centre City.

Brent previously spent 4 years championing a new tone for innovative neighbourhood design and integrated communities in Calgary as its Chief Subdivision Planner. For almost 10 years before that, Brent was an award-winning planning and design consultant based in Ontario, working for and with manymunicipalities,communitygroupsanddevelopersfromTorontotoYellowknife.Brenthadaparticular consulting emphasis on downtown and inner city planning and revitalization.

A passionate advocate for creative city building, urban design and architecture, Brent speaks and writes globally on the subjects, has taught and lectured at numerous universities, and is a co-founder and President of the Council for Canadian Urbanism while sitting on numerous other boards and groups related to cities.

In real life he’s an avid skier and loves anything in the outdoors (urban and natural), is passionate about all aspects of the arts, and is an avid traveler and student of cultures.

Claire Tomkins direcTor of research, carBoN war rooMClaire Danielle Tomkins is an expert in water and energy markets and the environment, with 10 years experience working on a broad range of environmental management issues and an entrepreneurial background that has led her to spend time at Silicon Valley startups and investigating energy technologies.

Tomkins recently earned her PhD in Management Science & Engineering at Stanford University, where she was one of a handful of interdisciplinary scholars in the Economics and Finance Group pioneering new market models for energy and water. At Stanford, Tomkins worked closely with top scholars in the legal, natural resource, and economics programs to create applied market models that have relevance to public utilities, financial institutions, and policy makers.

Prior to joining Carbon War Room, Tomkins served as Director of the Gigaton Throwdown Initiative founded by well-known entrepreneur and investor Sunil Paul. The Initiative brought together a unique group of academics, entrepreneurs, and business leaders to study at-scale energy solutions to climate change. The report released by the group received national media attention and raised the level of discourse in Washington D.C. around the scale up potential for new energy technologies, defining “gigaton scale.”

beverly (bev) Van ruyven, bAacTiNG presideNT aNd ceo, Bc hydro aNd power auThoriTyMs. Van Ruyven is appointed as the Acting President and CEO of BC Hydro on January 2010.

Her previous position was Executive Vice President, Customer Care and Conservation. She joined BC Hydro in 1997 as manager of Key Accounts and was promoted to progressively more senior management positions.

She holds a BA from the University of Victoria and completed the Executive Management Program at the Richard Ivey School of Business of the University of Western Ontario. In November 2009, she was named as one of Canada’s Most Powerful Women – Top 100.

Ms. Van Ruyven is past chair of the Western Energy Institute and serves on the boards of Accenture Business Services for Utilities, Fraser Basin Council, Vancouver Board of Trade Women’s Leadership Circle, BC Business Council and the Board of Governors for the University of Victoria.

Alicia Zatcoff, J.D., lEED APciTy of richMoNdAliciaZatcoff isanattorneyandLEEDAPcurrentlyworkingfortheCityofRichmondwhereshecoordinates its sustainability initiatives.

During her career, Alicia has achieved success in a variety of fields including private practice, government and academia. She has over twelve years of local government experience in areas including municipal law, governmental process, complex real estate transactions, community development, public safety and sustainability.

Alicia received her Bachelor of Arts degree in Economics from the University of Virginia and her Juris Doctor from the T.C. Williams School of Law at the University of Richmond. She is a former Class V whitewater kayaker who now spends her free time pursuing her passions of kiteboarding and travel.


aT T e n d e e s

ciTyarmSTrong, m ichael City of Port land Senior Susta inabi l i ty Manager

BJorn Bi llehoJ,clauS City of Copenhagen Program Manager Nordhavn Urban Development & Green Growth

Broncon n i er, dave City of Calgary Mayor

dale, dorian City of Babylon Energy Di rector and Susta inabi l i ty Off icer

decoSTerd, den iS City of Lausanne Head of External Relat ions

fiSh er, wyn ecTa City of New Or leans Di rector, Mayor ’s Off ice of Envi ronmental Affa i rs

goeS, feli pe City of R io Development Secretary

g reen, J en n i fer CEDO, City of Bur l ington Co-Director, Bur l ington Legacy Pro ject : 2030 City V is ion

han rahan, peg een City of Gainesv i l le Mayor

h en ry, marc City of Calgary Chief of Staff

hu nT, Jam eS City of Boston Chief , Envi ronmental & Energy Serv ices

KiSS, roBerT City of Bur l ington Mayor

KoloSov, dm iTry City of Sochi Organiz ing Committee

macdonald, mary City of Toronto Head of Envi ronment & Susta inabi l i ty, Off ice of the Mayor

mahon ey, man dy City of At lanta Di rector of Susta inabi l i ty

malec-mcKen na, Suzan n e City of Chicago Commiss ioner

maTTh ewS, eSTh er City of Aust in Di rector, Aust in Cl imate Protect ion Program

m elam ed, Ken City of Whist ler Mayor

moe, n i lS City of Berke ley Susta inabi l i ty Advisor to the Mayor

n ewSom, gavi n City of San Francisco Mayor

ovcharov, dan i la City of Sochi Organiz ing Committee

paeS, eduardo City of R io Mayor

parry, Shan non City of Santa Monica Susta inabi l i ty Di rector

parTi n, Johan na Off ice of Mayor Gavin Newsom, City & County of San Francisco Di rector of C l imate Protect ion In i t iat ives

powell, marTi n London Development Agency Di rector, Envi ronment and Capita l Pro jects

Sh eehan, Brian City of Char leston Director of Susta inabi l i ty

Sh i ller, h elen City of Chicago Alderman

amali e STeen, Karoli n e City of Copenhagen Deputy Di rector of Susta inabi l i ty and Internat ional Affa i rs

Taylor, San dy Birmingham City Counci l Head of C l imate Change & Susta inabi l i ty

yerSi n, nadia City of Lausanne External Relat ions

zaTcoff, alicia City of R ichmond

carBon war roomarm BruSTer, mu raT Carbon War Room Senior Advisor

Boyd, peTer Carbon War Room Director of Operat ions

Bradford, TraviS Carbon War Room COO/CFO

BranSon, richard Carbon War Room Founder

davli n, an n Carbon War Room Director of Development

lago, m ich ele Carbon War Room Event Coordinator

larSen, an n e Carbon War Room Event Coordinator

JoSe maria figu ereS Carbon War Room Chairman

pau lSon, Tony Carbon War Room Senior Advisor

ri n dfleiSch, eliSe Carbon War Room Operat ions Execut ive

Shah, J igar Carbon War Room CEO

warwicK, liz Carbon War Room Event Di rector

vancouver economic developmenT councilBoSTwicK, BrenT Plas2Fuel VP, Bus iness Development

carTm ell, Ben Southfac ing Director

coward, marc Riverbank Power Pro ject Manager

doug laS, Joh n Riverbank Power Pres ident & CEO

harriSS, lucy Southfac ing Director

horn, Joh n 3M Vice Pres ident

hu nTer, Jam i e Metro Vancouver Commerce Pro ject Manager

KaiSer, Swen Holz and Form Managing Director

KaSSian, JonaThan Metro Vancouver Commerce Manager, Research & Communicat ions

Kumar, Sn eh Traco Research Engineer, Superv isor

lei, zhang Modern Green Development Chairman

malleau, lee Metro Vancouver Commerce Bus iness Development Di rector

m i n dala-freeman, m ich elle Landis+Gyr VP Product Management

m iTch ell, marK Ser ious Mater ia ls COO

moore, Tracy lan diS+gyr Senior V ice Pres ident

n ereng, lau ra 3M Business Development Manager

parK, KiSu h KC-Cottre l l Ltd Vice Pres ident

ran dall, BoB Viracon Vice Pres ident

Schu ller, Kelly Viracon Vice Pres ident

Ti n ianov, Bran don Ser ious Mater ia ls CTO

Tylee, Joh n Metro Vancouver Commerce Di rector, Research & Communicat ions


vancouver mayor’S officeBallem, pen ny City of Vancouver City Manager

Boyd, davi d City of Vancouver Co-Chair, Green City Act ion Team

coady, li n da City of Vancouver V ice Pres ident , Susta inabi l i ty, VANOC

du ffy, an n VANOC Corporate Susta inabi l i ty Off icer

Joh nSTon, Sadhu City of Vancouver Deputy City Manager

Ki rKBri de, mau reen Vancouver Economic Development Commiss ion Chair

leviTT, Karen City of Vancouver Di rector, Bus iness P lanning Secretar iat

mag ee, m ichael City of Vancouver Chief of Staff

m eggS, g eoff City of Vancouver Counci l lor

og lov, li n da City of Vancouver Olympic L ia ison

pan der, Sean City of Vancouver Manager of Susta inabi l i ty

ramSli e, davi d City of Vancouver Manager, Susta inable Development Program

reim er, an drea City of Vancouver Counci l lor

roBerTSon, g regor City of Vancouver Mayor

Solomon, Joel City of Vancouver Pres ident and CEO of Renewal , and Chairman for Renewal2 Investment Fund

Toderian, BrenT City of Vancouver Di rector P lanning

weSTlaKe, an dy

u lum, ch riS Plas2Fuel CEO

van li erop, wal Chrysal ix

you ng lee, Tae KC-Cottre l l Ltd Pres ident

zhang, roBBi e Modern Green Development Ass istant to Chairman

ngoBrown i ng , adam Vote Solar Execut ive Di rector

cam pBell, Bi ll EQRM Act ing CEO

h i dary, JacK Hidary Foundat ion Chairman

h i ll, craig Northcross , Hi l l & Ach, F inancia l Advisors to Publ ic Agencies Pr inc ipal

leedS, SuSan EQRM Director of Capita l Markets

parzen, Ju lia Urban Susta inabi l i ty Di rectors Network Coordinator

oTherchoi, ch riSTi n e Virg in Management USA, Inc . PR Director

dolf, maTT AISTS

elBorn e, marK GE Pres ident & CEO, GE UK, I re land and Benelux

manSon, Jan-an derS AISTS

STricKer, clau de AISTS Dr.

SponSorallen, TrenTon Cit i Di rector

am iS, Tom Cooley Goddard

Ben n eTT, ch riSToph er Greenscape Capita l Di rector

deBarry, STeph en Bronze Investments Chief Investment Off icer

fiTzpaTricK, craig Lockheed Mart in Di rector, Future Energy Serv ices

h elliwell, davi d Pulse Energy CEO

Koh lhaSS, Jam eS Lockheed Mart in VP, Energy In i t iat ives

lyn ham, Barry Knau f i nSu laTion Head of Publ ic Affa i rs Europe & CIS

m eehan, m ichael Carbonetworks Pres ident & CEO

poraT, marc Pegasus Capita l Operat ing Advisor, Pegasus Capita l , Chai rman of the Board of ZETACommunit ies andCalStar Products

SeaTon, wayn e Wells Fargo Secur i t ies Publ ic F inance , Susta inable Publ ic Infrastructure Group

SKomorowSKi, ryan Green.Switch Capita l Founder, Di rector, and CEO

SluSarchu K, Bryan Greenscape Capita l Group CEO

TanSey, Jam eS Offsetters Pres ident

van ruyven, Bev BC Hydro Act ing Pres ident & CEO

BriSley, J eff Knauf Insulat ion Senior V ice Pres ident , Sa les & Market ing


B a c k g r o u n d m at E r I a L S

60 carbon war room

c I t y r E F E r E n c E m at E r I a L S

m e m o

To: mayors and Sustainability directors of leading Cities

from: tony Paulson, Senior Advisor to the Carbon War room

SuBJecT: ProCeSS Guide re enerGy eFFiCienCy & reneWABle enerGy FinAnCinG in CitieS

daTe: February 8, 2010

This. memo. serves. as. general. outline. of. process. for. public. agencies. in. developing. an. energy.efficiency. and. renewable. energy. (EERE). program .. The. overview. covers. general. information.starting.with.the.formation.of.an.initiative,.through.an.overview.of.options.currently.available.for. public. agencies,. through. identified. process. (next. steps),. to. implementation .. Additional.background.on.Energy.Financing.Districts.(EFDs).can.be.found.in.the.excellent.Guide.to.Energy.Efficiency.&.Renewable.Energy.Financing.Districts.for.Local.Governments.by.Fuller.et.al .

Creation of a “Green initiative”

The first step in developing an EERE program for a city is to identify the public agencies’ commitment to develop a program and to identify the internal stakeholders and secure support. This is typically done through the adoption of a “green initiative”. The initiative should highlight the goals of the agency, such as economic development, reduced energy costs, job creation, and the reduction of carbon emissions. The action plan should identify the stakeholders within the organization and indicate the requirements for internal approval. Lastly, the action plan should identify steps to approval in securing buyoff from key stakeholders within the organization.

identification of Opportunity

The next step in the process is to quantify the opportunity with respect to the identified goals. When considering a program rollout the actual transaction volume should be considered through an analysis of the housing and commercial space within the community. By identifying the size of the opportunity in terms of total potential demand on both the commercial and residential side for an energy efficiency and renewable energy program, the agency can determine options for participation for financing.

Secondly, the agency needs to identify the technology focus of the program. Energy efficiency projects typically offer a greater short-term payoff to consumers and make sense as a first step, even when paired with renewable energy projects.


Demand Analysis

The agency should determine the transaction potential for the community to inform the potential partners and internal funding strategy. Demand analysis is considered a first step in the public outreach to consumers within the community. Demand analysis is typically performed by a third party vendor, and will provide an indication of the capital requirement for the EERE program. By identifying the transaction opportunity, the public agency can approach the financing community with relevant information and begin the process of identifying an outline of transaction terms for the agency and consumers.

Policy review

The agency should review the policies affecting EERE projects, including the federal and state initiatives as well as local authority. Federal support should be considered with respect to financial support including any tax benefits, or funding opportunities available. Currently in the United States, there are investment tax credits (ITC) available to support EERE projects. Under discussion is federal policy to support additional funding sources through proposed “green banks” or credit enhancements through partial guarantees or grant programs. Within the United States, there are programs under development for Energy Efficiency and Conservation Block Grants (EECBG) and Qualified Energy Conservation Bonds (QECB) that may be applicable for EERE programs.

State policies should be reviewed to determine funding mechanisms available and additional support through state based incentive programs. In the United States, there are various pieces of legislation available on a state by state basis, providing a mechanism for financing EERE projects on a non-recourse basis.

The current trend at the state level is focused on the property assessed clean energy (PACE) structure. Additionally, many states have implemented additional support through the development of renewable energy portfolio standard (RPS) requirements for utilities. RPS requirements may offer additional financial support to consumers through additional state based incentive programs.

Local agencies also need to consider their authority in creating policy to encourage and or require the development of EERE projects through zoning or other legislation. Specifically, the creation of an Energy Financing District (EFD) to allow the local government to issue bonds to raise a pool of money to support clean energy projects should be an initial consideration. In 2007, Berkeley, California, pioneered an EFD.

Another example of local policy is the ability for public agencies to require more stringent energy and green building certification (such as LEED certification) for new real estate development and redevelopment projects. The majorities of real estate and development firms are creating green initiatives, and would benefit from a reduction in energy consumption as a cost saving feature. Given that the funding for such properties is becoming available, this requirement would not likely meet much opposition.

utilities

Public agencies may consider municipal utilities as potential partners in developing EERE programs. It is noted that the utilities typically operate independent of the public agency and are focused on delivering the lowest cost of power to consumers independent of any initiatives in place. However, there may be financial incentives for utility participation in a city-led initiative. Motivations range from RPS requirements to direct financial impact to the utility for the reduction energy consumption at the local level. Utilities typically supporting EERE programs have positive cash flow impacts from energy conservation programs and may be a good model to consider within generation territories with similar characteristics.

Funding strategy Considerations

In determining the funding strategy, public agencies should consider the funding sources available, as well as the ability to fund programs on balance sheet versus. third party financing. The three primary funding strategies are as follows:

• Utilityfinancing,alsoreferredtoas‘on-billfinancing’

• Publicagency’sbalancesheet,e.g.useofCitygeneralobligationfunds

• Thirdpartyfinancing,e.g.commercialbank

On-bill financing is available through the utility collection mechanism through all utility services including energy, water and telecom. The public agency should consider both investor owned and public owned utilities for all services. However, energy providers are traditionally the most appropriate partners in delivering an EERE program. Public agencies such as water or telecom may also provide a solution where electric utility partnerships are identified and deemed the least efficient and effective. The City of Babylon is an example of such a program. It is noted that the on-bill financing mechanism offered through a municipal utility program may have an impact of the lending capacity, if the debt remains on the balance sheet of the public agency.

Public agencies have the ability to finance EERE programs through general obligation funds in the same way general services are procured. Currently, EERE programs financed through the balance sheet of the municipality have impacted the financial recourses of the agency and have been somewhat limited in scope. It is believed that if third party non-recourse debt was available that there would have been a larger program rollout. As discussed in the financing summary, municipalities typically do not want to take the liquidity and interest rate risk. Therefore, third party financing may be the best solution.

Third party financing through a PACE model is attractive as a source of lower-cost capital on a non-recourse basis to the consumers, while protecting the municipalities lending capacity. Third party financing includes private placements and EERE programs through banks. Private placements typically focus on the “take out” debt, and require the public agencies to pooling the loans on the balance sheet. Funding programs through banks are in development, and offer warehousing features talking both the liquidity and interest rate risk.

Procurement requirements and Process

The majority of public agencies are required to follow formal request under procurement guidelines through a request for proposal (RFP). Public agencies should identify the desired strategy, to be informed through the analysis above. The RFP should indicate the primary functions of an EERE program, and assign responsibility to partners. Core functions of an EERE program include:

• Marketingandoutreach

• Loanorigination

• Funding

• Collections

Given the specific tasks of outreach, loan origination and collections, public agencies should consider the internal resources available. It is anticipated that internal resources are constrained, and should be used for tasks of determining program opportunity, demand analysis, RFP process management and analysis and coordination with partners.


EERE programs are a recent development internationally, with few examples of replication available. Within the United States, there are resources available for public agencies that have gone through the process, as well as non-government organizations (NGO) available for support. Several of the public agencies that have initiated EERE programs are identified with the Guide to Energy Efficiency & Renewable Energy Financing Districts for Local Governments. NGOs supporting the development of EERE programs include Urban Sustainability Directors Network, Solar Cities of America, and Vote Solar.

summary

The development of an EERE program provides public agencies with a direct means of reducing the carbon footprint of their community. Further, EERE programs offer significant job creation opportunities within their communities. The considerations highlighted above provide a general guideline, but do not cover all issues relevant to the creation of a program.


reProduCed From: http://rael.berkeley.edu/files/berkeleysolar/howto.pdf.

ENERGY EFFICIENCY &RENEWABLE ENERGY FINANCING DISTRICTS


reProduCed From: http://rael.berkeley.edu/files/berkeleysolar/howto.pdf. reProduCed From: http://rael.berkeley.edu/files/berkeleysolar/howto.pdf.

Contents

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1616171819

202226313638404144


reProduCed From: http://rael.berkeley.edu/files/berkeleysolar/howto.pdf.reProduCed From: http://rael.berkeley.edu/files/berkeleysolar/howto.pdf.

3Guide to Energy Efficiency & Renewable Energy Financing Districts For Local Governments

Executive Summary Acknowledgments

Acronyms




1. Introduction to Energy Financing Districts

5Guide to Energy Efficiency & Renewable Energy Financing Districts For Local Governments4Guide to Energy Efficiency & Renewable Energy

Financing Districts For Local Governments












2. Getting Started





3. Financing Elements









4. Case Studies








5. Identifying the Demand in Your Community





6. Legal Authority






An Energy Financing District could support the development of new “zero-energy” homes and commercial properties with many of the energy efficiency and renewable energy features funded through the program. This would reduce the considerable misalignment of interests between the builder and the initial buyer of a new property.




7. The Financing Mechanism

There are two factors that differentiate Energy Financing Districts from other types of financing for privately-owned renewable energy/energy efficiency improvements: 1) the addition of an assessment or special tax on the property tax bill, backed up by a lien on the property, which makes the investment extremely secure, and 2) the attachment of the repayment responsibility to the property instead of the individual.














8. Administration & Program Costs








9. Defining Eligible Projects & Getting Results





10. Education & Outreach





11. Conclusion






12. Resources




Appendix



In response to this challenge, San Francisco is developing an accessible financing program that residential and commercial property owners can use to finance sustainable building improvements. This effort has coincided with efforts across California and the United States to establish similar financing programs.

Green Finance SF will be available for interested home and business owners to finance privately-owned energy efficiency, renewable energy and water conservation improvements. The repayment obligation is attached to the property, rather than the individual, and is paid back through property taxes over the life of the financing.

In the coming months, we will be launching the program, please check back here for updates.

Frequently Asked Questions

HOW DOES THE PROGRAM WORk?The program will be structured through the establishment of a Citywide Mello-Roos Special Tax District. Owners of individual properties would apply to join the district and, if approved, would file documents authorizing the levy of a special tax against their property. In return for opting into the district and agreeing to pay the special tax over the life of the financing, the building owner would receive funds to pay the up-front cost of the approved improvements.

HOW DOES THIS PROGRAM DIffER fROM LOANS AVAILABLE fROM A PRIVATE LENDER? Since the City and County of San Francisco is the lender, the loan is repaid through a special line item on the property tax bill. If the property is sold or transferred, the tax payment obligation will be assumed by the new owner. Standard property sales disclosures will indicate the existence of a tax, so owners will know that they are benefiting from the retrofit improvements at the time of sale and can set their price accordingly.

WHAT TYPES Of BUILDINGS WOULD qUALIfY fOR THIS PROGRAM? Residential and commercial buildings of all sizes will be eligible. Project qualification criteria are being developed, and will focus primarily on the scope of improvements proposed, the property’s tax and mortgage payment history and the value of the property relative to its outstanding debt.

Almost.half.of.San.Francisco’s.greenhouse.gas.emissions.come.from.energy.usage.in.local.buildings ...At.the.same.time,.excessive.water.usage.in.buildings.strains.California’s.water.resources ...Currently,.the.largest.constraint.to.San.Francisco’s.buildings.becoming.more.efficient.in.their.use.of.energy.and.water.is.the.large.up-front.cost.of.these.improvements ...Despite.government.incentives.to.decrease.the.up-front.cost.for.energy.and.water.efficiency.projects,.as.well.as.solar.installations,.these.improvements.still.cost.several.thousand.dollars ...As.a.result,.many.San.Francisco.building.owners.find.it.difficult.to.make.these.environmental.upgrades.to.their.buildings ..

reProduCed From: http://greenfinancesf.org/.

Author: City of San Francisco

title: Green Finance SF


reProduCed From: http://rael.berkeley.edu/files/berkeleysolar/howto.pdf.

WHAT PROjECTS WILL THE GREEN fINANCE Sf PROGRAM fUND?While the types of improvements that will qualify for the program are still under development, eligible improvements would include energy efficiency upgrades—such as adding insulation, replacing windows, and upgrading heating systems; and water efficiency upgrades—such as installing low flow toilets. Financing will also be available for installation of renewable energy generation on buildings such as solar arrays – in conjunction with energy efficiency improvements.

WHAT WILL BE THE AMOUNT Of INCREASE IN A PARTICIPANT’S PROPERTY TAxES?Participants only pay a tax on a fixed payment schedule that over time will defray the cost of their project plus charges for interest and administration. Each individual financing will bear interest at a fixed rate assigned on the date of funding.

fOR HOW MANY YEARS WILL THE PARTICIPANT HAVE TO PAY THE ADDED SPECIAL TAxES?The special tax payment period will match the expected useful life of the improvements, so the property does not wind up paying taxes in future years where it is not expected to gain the energy or water savings from the retrofit. Therefore the length of time will vary according to the projects installed, up to 20 years.

CAN PARTICIPANTS DEDUCT THE ENERGY EffICIENCY AND SOLAR fINANCING COSTS ON THEIR INCOME TAxES AS THEY DO fOR OTHER PROPERTY TAxES?Participants will be permitted to deduct the interest component of their project financing tax, similar to a home equity line of credit or a home mortgage.

HOW MUCH WILL A PARTICIPANT SAVE ON THEIR WATER AND ENERGY BILLS?Every property is different, and savings often depends on behavioral factors as well as the building improvements. However, home performance energy audits will allow building owners to make an educated projection of their savings in determining whether to apply. The program goal is to utilize the latest analytical tools to structure financings so that a building’s utility bill savings from the retrofits will “pay the owner back” for the special taxes paid over the life of the financing.

CAN THE PROPERTY OWNER USE ANY CONTRACTOR?The owner will contract directly with a contractor qualified to perform the retrofit. The City is developing qualification criteria for contractors and energy auditors. The program objective is to establish a ready supply of workers skilled in the energy and water projects common to San Francisco building types, with linkages to workforce development programs in an effort to grow our local green economy.

ARE THERE OTHER PROGRAM REqUIREMENTS?The City will institute a requirement that participants complete a whole home performance energy audit. The borrower may elect to include the audit in the financing amount to spread that up-front cost over time. Additionally, energy efficiency improvements are required prior to the financing of solar PV projects.

WHAT IS THE SOURCE Of fUNDING fOR THE PROGRAM?The program will use private capital to fund the retrofits. Grant dollars received for this purpose under the American Recovery and Reinvestment Act will be applied as a targeted public investment to ensure a successful launch of the program and interest rates attractive to as many qualifying projects as possible.

pa C e : p r o p e r T y a s s e s s e d C l e a n e n e r G y f i n a n C i n G s — C a p i T a l m a r k e T s f i n a n C i n G i s s u e s pa p e r

background

Certain states have enacted legislation to enable clean energy improvement districts (the “CE Improvement Districts”) to finance the installation of certain approved clean energy equipment for residential and commercial properties. The installation of said equipment will be financed by individual property owners who opt in to the program through special property tax assessments (Special Property Tax Assessments) on their properties that amortize over periods no greater than 20 years.

These same certain states have enacted legislation to enable these CE Improvement Districts to issue bonds (the “PACE Bonds”) to finance the disbursements to property owners to install the clean energy equipment. The PACE Bonds are to be secured by a pledge of the Special Property Tax Assessments collections. (Barclays Capital has reviewed the enabling PACE legislation for one state, Colorado (HB 08-1350), to determine how the program would work from one state’s viewpoint.)

The size of the bond issues are likely to vary greatly in size depending upon the demand for the installation of clean energy equipment, the size of the CE Improvement District, the cost of financing the bonds which must be passed on to the property owners, the acceptance of the program by property owners, the perceived risk of the bonds to investors and the demand from investors for these bonds.

The credit quality of the PACE bonds:

Despite the fact that the PACE Bonds will be secured by Special Property Tax Assessments which can be a very strong municipal revenue stream with the passage of time, it is more than

likely that at first, absence any credit enhancement, the PACE Bonds will not be able to achieve investment grade credit ratings from the rating agencies for the following reasons:

• ThePACEBondswilllikelyonlybebackedbySpecialPropertyTaxAssessmentsonaselectnumber of properties in any particular municipal entity so that the PACE Bonds will not be backed by as diverse a population of property taxes than a broader municipal ad valorum property tax would be.

• TheCEImprovementDistrictwillnothavethetrackrecordofcollectionofcleanenergySpecialProperty Tax Assessments compared to a broad-based ad valorum property tax.

Purpose:.To.assess.the.capability.of.large.scale.capital.markets.financing.for.the.Property.Assessed.Clean.Energy.(PACE).program .

reProduCed From: http://pacenow.org/documents/5a.%20Barclays%20memo.pdf.reProduCed From: http://greenfinancesf.org/.

Author: Christopher moriarty & John rhow, Barclays Capital

title: PACe: Property Assessed Clean energy Financings — Capital markets Financing issues Paper


The PACE legislation for at least one state, Colorado, appears to be based on the municipal bond structures for TIF or Special Assessment Districts (commonly known as “Dirt Bonds”) which are almost always issued as unrated municipal bonds with very high interest rates and sold to high yield municipal bond funds. It is extremely difficult to place these bonds today at any interest rate because of the perceived risk of exposure to the completion of new real estate development which will be the source of property tax revenue to pay debt service on Dirt Bonds. Initially, PACE Bonds may be confused with Dirt Bonds because of their structure, even though they do not have development risk. Utilizing an underwriter who has intimate knowledge of both these programs will be crucial in educating investors on the more attractive risk profile of PACE program.

Obtaining investment grade ratings for the PACE Bonds will be crucial to be able to find a market for these bonds at reasonable interest rates and to convince property owners to opt in to the program by offering a reasonable financing rate for installing the clean energy equipment. Furthermore, even obtaining investment grade ratings may not be sufficient to place bonds at reasonable rates. Most municipal bonds now need unenhanced credit ratings of AA- or better to get a definite chance of being placed. In the current market, bonds in the A rating category can be sold but at significantly higher credit spreads. However, despite the historically wide divergence in credit spreads across rating categories, we are encouraged by the acceptance of traditional corporate taxable investors in the Build America Bond program, established in President Obama’s American Recovery and Reinvestment Act. As this new taxable municipal market evolves, we would expect more investor comfort in lower-rated PACE bond issuance.

Since PACE Bonds cannot now find a large market based on their own credit quality, it is likely that the PACE Bonds will need credit enhancement of some sort, either credit enhancement from a pledge of the general obligation of a state or highly rated city or by a provision for some form of insurance from the Federal Government (in this case under various authorities enacted by Congress for the Dept of Energy to provide insurance for renewable energy loans.) PACE Bonds insured or guaranteed by a credit worthy guarantor will be given ratings based on the strength of the credit enhancement and not on the underlying credit of the Special Property Tax Assessments. In this situation, it is the credit enhancer that would be taking the credit risk on payments from the Special Property Tax Assessments.

Fundamental criteria for credit enhancement from states or highly rated municipalities or the Department of Energy in order for PACE Bonds to receive high investment grade municipal credit ratings (AA- or better):

• Thecreditenhancementshouldbedulyauthorizedbytheentityprovidingthecreditenhancement;

• Thereshouldbenodefensesagainstpaymentonthecreditenhancement(e.g.theentitycouldnot claim that it will not pay because the energy equipment was not providing the energy savings that was expected or that the funds have not yet been expended.);

• Thenoticeandtimingforpaymentunderthecreditenhancementmustbestipulatedinthecredit enhancement documents (e.g. the credit enhancement will pay $xxx dollars to the bond trustee within 3 days after presentment of a notice from the bonds trustee that a payment default on property tax collections has occurred and that a credit enhancement payment must be made in order to avoid a payment default on the PACE Bonds);

• TheremustbesufficientreservesintothePACEBondstrustestatetocoverdebtservicepayments in the interim while awaiting credit enhancement payments. There must also be sufficient reserves into the PACE Bonds to convert any credit shortfalls not covered by the credit enhancement (e.g. FHA mortgage insurance only covers 99% of principal balance insured, does not pay for up to 9 months and does not cover lost interest for the first 30 days on the insured mortgage note. Any bonds backed by FHA insured mortgage notes must have sufficient cash reserves to cover the FHA 1% assignment fee, 9 months debt service reserve and lost interest of 30 days in order to achieve AAA bond ratings.); and,

• FullfaithandcreditenhancementsforPACEBondsproperlystructuredshouldcarrythegeneral obligation credit rating of the credit enhancer. Credit enhancements that are subject to appropriation or are moral obligation credit enhancements would typically carry a credit rating one full step below the general obligation credit rating of the credit enhancer.

One example of a PACE financing rated very recently were the Boulder County Clean Energy Options Local Improvement District , Colo.’s $7.5 million special assessment bonds, series 2009 for which the Standard & Poor’s rating of A+ was released on May 14, 2009. The rating was based on the moral obligation of the County of Boulder, Colorado to make up the debt service reserve fund, if tapped, subject to annual appropriation. The general obligation of Boulder County appears to be AAA, so the rating on the Boulder County Clean Energy Options Local Improvement District appears to be a full two rating categories below the County’s general obligation bond rating. Pricing for the bonds is not yet available.

Handling the Acquisition Period for renewable Energy Property Tax liens

It will take time for a PACE Bond issuer to disburse the money to pay for renewable energy equipment and assemble the Special Property Tax Assessments. As the equipment will be financed it will be necessary for the CE Improvement Districts to lock an interest rate for the liens in order to be able to have sufficient collections to service the PACE Bonds. Preferably the PACE Bonds would be issued in advance to provide a pool of money to advance funds when the equipment is placed in service. The proceeds of the PACE Bonds issuance would be placed in an acquisition account which would be invested in approved investments (say US Treasuries) and would be disbursed to pay approved invoices for approved equipment. Funds could only be disbursed for purposes designated in the program and would have to be audited. Any funds not expended by a certain date (say, three years) would be used to redeem PACE Bonds with an unused proceeds call. The bond proceeds would have to provide enough funds to cover negative arbitrage during the acquisition period. The PACE Bonds would have to have any credit enhancement in place at time of issuance in order to achieve the desired credit rating. Therefore the credit enhancer would have to have assurance that the disbursement of the acquisition funds was being properly handled by the CE Improvement District. The implicit interest rate on the PACE Bonds achieved when issued (the “Bond TIC”) would be used to set the underlying interest rate on the Special Property Tax Assessments so that the payments on the Special Property Tax Assessments would be sufficient to paythePACEBondsdebtserviceinallevents.Astructuringagents/investmentbankerwouldhaveto run PACE Bond cash flows to demonstrate that the Special Property Tax Assessment payments are sufficient to pay the PACE Bonds debt service. State Housing Finance agencies have been using a similar process for decades to raise capital to fund the acquisition of affordable single family mortgage loans.

reProduCed From: http://pacenow.org/documents/5a.%20Barclays%20memo.pdf. reProduCed From: http://pacenow.org/documents/5a.%20Barclays%20memo.pdf.


In the event that issuers wanted to reduce the negative arbitrage of raising capital and funding the acquisition of Special Property Tax Assessments over longer periods of time, issuers could do more frequent issuances of Pace Bonds in smaller amounts, however, issuers are going to have to weigh the cost of issuance of more frequent bond issuances vs. the cost of negative arbitrage of fewer issuances but with larger dollar amounts which incur more negative arbitrage. As the market and legal documentation of this program mature, the cost of issuance of more frequent issuances may drop. Needless to say, a program involving more frequent, but smaller issuance sizes increases the need for having some form of credit enhancement – taxable investors are less likely to invest the time and resources required to analyze the underlying credit for small-sized, illiquid transactions.

Capital Market Access

Issuers who could issue PACE Bonds in sufficient size (say $100 million for each offering) that had achieved high investment grade credit ratings could access the capital markets by issuing bonds directly assuming that the issuers’ general obligation pledge or moral obligation pledge was on the bonds - that is a pledge to back the bonds with a full faith and credit of tax revenues from the municipal entity or a moral obligation to back the bonds subject to appropriation of the revenues of the municipal entity.

Issuers who could not issue bonds of that size would be better off selling bonds through a pooling structure that could aggregate bonds to achieve larger economies of scale, obtain better pricing andhandlethecreditenhancementprocess.Thepoolswouldbeassembledandsoldbyaconduit/underwriter (the “Pooling Agent”) that would assemble structure and sell securities backed by pools of smaller PACE Bonds. The Pooling Agent could be a designated state agency or a securities firm. The Pooling Agent would commit to buy PACE Bonds at a certain interest rate, purchase and assemble pools of the PACE Bonds, arrange credit enhancements, servicing providers and trustees, structure securities backed by pools of the PACE Bonds, get the pools rated by credit rating agencies and then sell highly rated securities into the capital markets. As the PACE Bonds are all taxable, the Pooling Agents that are securities firms could assemble pools of PACE Bonds that have geographic diversity. Pooling Agents that are state agencies would bring knowledge of state local conditions and issuers, and, in the case of State Housing Finance Agencies, have long track records in servicing single family and multifamily mortgage loans in their states. However, their limitations would be that they could only assemble pools located in one state. In the event that Congress may make PACE Bonds tax exempt, having a statewide issuer would add benefits in achieving lower costs (usually, although not necessarily now) that come from funding the PACE Bonds with tax exempt bond issuance.

Pooling Agents typically have long experience in hedging markets while assembling pools of smaller assets for securitization so Pooling Agents could provide fixed pricing for smaller PACE Bonds while they assemble pools of PACE Bonds for later securitization.

A requirement for widespread securitization of PACE Bonds will be standard documentation: standardized notes, liens, bonds, opinions, assignment documents, etc., similar to what Fannie Mae and Freddie Mac have done in the mortgage industry.

Delinquencies, Defaults and recovery

Inevitably there will be delinquencies, defaults and recoveries from defaults on the Special Property Tax Assessments. Recoveries can come from a tax sale of the properties or simply a sale of the delinquent tax lien to a third party. Procedures must be worked out to ensure that delinquencies and defaults do not interrupt the payment of debt service on the PACE Bonds. These procedures may vary from state to state or even municipality to municipality depending upon the laws relating to achieving recovery from delinquent Special Property Tax Assessments. These procedures will probably result in having a prompt draw on a credit enhancement while the delinquent tax recovery proceeds unless there are sufficient reserves to cover debt service during the process. The credit enhancer (let us assume that it is DOE, here) will want to be assured that ultimately the recovery of the funds advanced to install the clean energy equipment will occur and that the CE Improvement Districts will move with move with sufficient diligence to achieve a recovery so that the credit enhancer is reimbursed for any credit enhancement payments. Assuming however, there are sufficient reserves to cover debt service, then the DOE wrap is acting in effect as a “back-stop” to the initial delinquency coverage of the local agency from reserves. It is important to note that from the DOE’s perspective, its risk exposure is only the delinquent tax payments and not the entire bond amount, so the potential funding exposure is small relative to the amount of outstanding bonds.

One way to better assure the recovery of any credit enhancement payments may be to require risk share of any losses on delinquent Special Property Tax Assessments between the DOE and the local municipality that must settled within a certain time period. This would provide incentives to the municipality to use sufficient diligence to achieve a satisfactory Special Property Tax Assessments lien recovery. Another method would be to require that municipalities pursue delinquent Special Property Tax Assessments on a certain timeline and using certain approved procedures. Any credit enhancer of bonds backed by renewable energy Special Property Tax Assessments will surely want effective recovery procedures in place that protect their credit enhancement rights.

Credit Enhancement Fees

Credit enhancers should be paid for any credit enhancement for these transactions with fees based on assessment of underlying credit risk. Barclays Capital can provide comparable fees for credit enhancement charged by providers currently in the market place. Due to recent dislocations in the credit markets fees have moved upward lately. Credit enhancers would be expected to retain outside legal counsel to draft credit enhancement documents and comment on other transactions documentation. The cost of the credit enhancers outside legal counsel should be reimbursed out of bond proceeds.

reProduCed From: http://pacenow.org/documents/5a.%20Barclays%20memo.pdf. reProduCed From: http://pacenow.org/documents/5a.%20Barclays%20memo.pdf.


F I n a n c E r E F E r E n c E m at E r I a L S

124 carbon war room

m e m o

To: managing directors of the major Commercial Banks

from: tony Paulson, Senior Advisor to the Carbon War room

SuBJecT: neW FinAnCe ProduCtS For enerGy eFFiCienCy & reneWABle enerGy FinAnCinG

daTe: February 15, 2010

This. memo. outlines. the. current. state. of. the. emerging. energy. efficiency. market,. as. expanded.beyond.the.ESCO.sector.that.has.historically.addressed.a.small.market.segment ..The.particular.focus.is.on.the.opportunity.for.third.party.finance ..This.memo.outlines.the.current.state.of.the.emerging.energy.efficiency.market,.as.expanded.beyond.the.ESCO.sector.that.has.historically.addressed. a. small. market. segment .. The. particular. focus. is. on. the. opportunity. for. third. party.finance.in.conjunction.with.city-led.energy.efficiency.and.renewable.energy.(EERE).initiatives ..

This is a large market opportunity conservatively valued at $500 billion in the u.s.

It also represents an attractive low-risk investment vehicle for finance institutions when structured as a property tax lien under such programs as Property Assessed Clean Energy (PACE).

Recognition of the market opportunity and an appetite for lower risk investments is creating considerable interest in this market. For cities leading EERE finance initiatives, the opportunity is for economic development through reduced energy costs and direction of capital previously used for energy to higher-return areas, as well as growth in construction and technology sectors.

Below, remaining barriers and current issues that are coming to light with respect to third-party finance of energy efficiency and renewable energy are discussed in detail. The focus is on PACE. An outline of preliminary strategies for providing non-recourse financing to consumers for energy efficiency and renewable energy projects is also presented.

Capital Market Overview

As background, we note that municipalities across the nation have seen an overall decrease in credit as revenues (property tax, sales tax, etc.) decrease from the downturn in the economy. In the current financial market, mortgage interest rates are currently less than bond interest rates.


Current Transaction structures EErE Financing

To date, there are five known operational programs in the United States based on the PACE model, and announcement of the launch of a sixth program in San Francisco. The majority of the programs have either been financed through the municipalities’ general fund, or a variation thereof. Berkeley is the only sponsoring public agency who financed the program through a third party investor. Performance has been limited due to unique program characteristics, pooling issues and the take out financing rates adjusting, a cap on the program size, or a change at the municipality in risk appetite. The primary issue in funding a program through the balance sheet of the municipal is the resulting decrease in lending capacity for other city services (schools, roads etc.) and may ultimately result in a decrease in the credit rating.

Municipalities may consider the option of funding the individual loans out of the general fund, with the intention of pooling the loans and selling the portfolio once volume is achieved. The two primary issues with pooling the loans on balance sheet include liquidity risk and interest rate risk. Simply put, there is not currently a syndication desk that the municipality can rely on to trade the portfolio of loans. Additionally, given the current instability of interest rates, there is a concern that interest rates will rise and the municipality will be prevented from selling the portfolio at its original basis.

Agency rating for bond Pools – Cost implications

Given that the financing instruments are new, it is noted that the cost of funds discussed among the financing community is currently higher than typical assessment or revenue bonds in some cases. There have been efforts to obtain a credit rating on the bond pools, reducing the cost of capital. This requires pooling of loans to reach a minimum size threshold, and may not address the pooling issue. Lastly, the majority of municipal transactions are tax exempt bonds, and may not offer the most appropriate comparison given that PACE structured transactions are taxable.

Municipal staff issue

Public agency resources are currently constrained and challenge the management to meet daily operations. Taking on a PACE program is one more task that may be considered by many to be a “non core business”. EERE financing under the PACE model is relatively new financial product design, and the implementation of programs will require significant resources to execute effectively. There are multiple business functions within a program designincluding;marketing/outreach,origination,funding,verificationandmeasurement,andcollections.Theprivate sector is currently developing business models and technologies to address these needs, and may be better suited to manage the program as a vendor. The municipality brings to the program the “right to collect” and should remain responsible for the assignment of the collection right to the appropriate vendor.

Adoption rate (Demand Analysis) issue

Given that there are relatively few transactions to date, there is an overall lack of information on demand expectations at a national level in the United States, or internationally. Additionally, a number of the programs financed under the PACE model have either been capped at a small allocation level or stopped during the implementation. California’s Sonoma County may provide the best indication of demand expectations.

Sonoma County is considered the most successful program to date, having funded roughly $17m in transactions. The County did a preliminary demand study within their generation area, which reportedly indicted an adoption rate of approximately 1% of total housing stock. Given that Sonoma County represents roughly 250,000 residents, and an average transaction size of $40,000 per unit, the total expected capital volume for the program is approximately $1B. It is also noted that the initial 1% represents the “early adopters” and most likely will result in a significantly larger capital volume as the community become familiar with the program.

Interest rates considered:

• TaxableAssessmentbonds(A+)areabout8.50%

• TaxableRevenuebonds(A+)arearound7.75%

• Firstmortgagesarecurrentlybelow5%

• Secondmortgagesaredifficulttoobtain,mostlyvariablerate,andareapproximately9%

• NonrecoursedebtprovidedbyFannieMaeisapproximately14%

Credit Enhancement Characteristics of EErE Projects

For the purposes of this discussion, we are focusing on the Property Assessed Clean Energy (PACE) structure in the United States. Information on the PACE structure is available at www.pacenow.org.

The individual consumer loans currently considered under the PACE structure have credit enhancement qualities. Given the unique ability to move the PACE lien into a first position (beside existing property tax collections), the repayment risk of the individual notes is reduced significantly. The financial risk to the programs is based on repayment timing. Additionally, it is noted that energy efficiency and renewable energy (EERE) projects provide an increase in the property value to the consumer. Lastly, pooling assets results in a diversification of risk for anyindividualproject/transactionperformance.

limitations of EErE Financing through Debt Products

Given the deterioration of the current debt market, financing EERE projects through second mortgages or commercial loans is somewhat limited to relatively few consumers that qualify. There is some speculation that the debt markets will continue to contract as the commercial real estate market deteriorates. Current indications point to banks shoring up capital resulting in an overall decrease in liquidity. It should be noted that there are relatively low interest rates loans available for first mortgages to consumers that qualify. However, the consumer would have to refinance their loan in order to enjoy the low interest rates, all for a relatively low EERE project cost. Additionally, the consumer would take responsibility of determining the value of the project. Mortgages are recourse loans to consumers, and typically result in full repayment at transferability (sale). This prevents the assignment of the note to the new property owner and may be disadvantageous to the seller.

Perspective on EErE Financing rates to Consumers

EERE financing is best described as a hybrid of a consumer loan and a municipal bond under the PACE structure. Given that PACE financing is non-recourse and backed solely by the assessment lien, municipalities typically compare EERE micro loans with assessment or revenue bonds. At the same time, consumers individually opt in to EERE programs and typically compare the loans with mortgages or commercial debt.

The burden has been placed on the financiers to reflect the credit characteristics of the debt instrument with a comparable market rate. The debt instrument proposed is a new financing product requiring the interest rate to reflect the inherent additional risk of developing the new financial product. The perception from the municipalities and the consumers is that the interest rates should be less than both an assessment bond and closer to a first mortgage rate. It is again noted that the PACE structure allows for non-recourse financing to the consumer, attaching the lien to the home. This primary benefit is what differentiates the product and will require new considerations.


Pooling issue

The primary issue with the PACE structure is the challenge of turning a $7,000 - $40,000 residential project loan into an annuity stream that will be attractive to the typical annuity buyer. Syndication buyers of cash flow streams typically purchase loan portfolios or other annuity instruments at a minimum threshold of $50M.

The entity pooling the individual loans takes both the interest rate risk, and liquidity risk. Individual consumer loans typically require a set interest rate for EERE projects. However, the interest rate for the loan portfolio is unknown until the loan pool is ready to sell. Interest rate risk can be mitigated through a hedging instrument, locking in a purchase price for the loan pool. This places the interest rate risk on the seller of the derivative, and requires an additional cost that is pasted down to the consumer. The costs associated with fixing a rate for the loan pools may be cost prohibitive.

Municipalities could pool the loans from the general operating reserves or investment funds, however there is liquidity risk if hedging instruments are not used. If interest rates increase beyond the interest rate of the individual loans within the pool, the municipality will be forced to retain ownership of the loans or sell at a discount. Additionally, municipalities do not typically engaging in highly structured financial transitions, and may require the support of a banking team, which may increase the overall cost of funds to the consumers.

Banks currently developing loan programs are more likely to take both the interest rate and liquidity risks. However, there is an increase in rate associated with the risk over standardized assessment or revenue bonds.

Origination Management issue

Currently several banks have their municipal finance teams within banks are developing EERE programs. Said investment bankers are familiar with assessment and revenue bond structures, and have the relationships in place with the syndicated buyers of the debt.

That said, public financing transactions can be significant in size and are typically sold as individual transactions. EERE loans structured under the PACE model are individual “opt in” transactions, and more closely mirror the traditional mortgage revenue bond transactions. Thus, the origination function would most likely reside on the mortgage arm of the banks.

There is an indication that the banks will provide loan programs through third party origination companies, modeledafterthemortgagebanking/mortgagebrokeragebusiness.

Currently, there are few companies focusing on the origination side of the business. However, it is anticipated that once the availability of capital is apparent, there will be a significant growth in origination services.

Measurement and Verification

Job creation, carbon reduction and energy conservation are often individual motivators for various stakeholders; mayors want to go green while unions may have a focus on job creation. Additionally, financiers have expressed concerns of managing capital investments to these types of projects that will provide positive cash flow for consumers who implement the projects on their properties. It is noted that companies are currently developing various reporting components for measurement and verification and we anticipate that the technology will be available shortly.

Conclusion

The issues highlighted within this document are in process and may impact the success of a public agencies program offering. They deserve special consideration given the size of the opportunity at stake and will be the ongoing focus of efforts in this space, with new examples and anticipated over the upcoming months.

It is noted that the respondents to the survey for the program indicated strong interest in participating. The same respondents had concern about incurring additional personal debt. Given that the PACE structure is non-recourse to the consumer, all indications point to an adoption rate greater than 1%.

The second reason for success may be based on the Sonoma County commitment to fund over $100M in projects through its existing treasury investment pool. This commitment provided many of the industry installers and supplies to have confidence that the program would stay in existence for an extended period of time and give them certainty that “ramping up” could potentially provide for a successful private sector business model. Many of the other programs have had limited programs which has made the industry reluctant to invest time or capital into marketing in those communities.

Capital Volume / Transaction size issue

The transactions identified through the PACE model are considered similar annuity investments as bonds and are most appropriately syndicated to the secondary market. It should be noted that there are currently relatively few channels to deliver these investments to the secondary market. This is a result of the PACE structure creating a new financing instrument (not a bond, and not a mortgage). There is demand from the annuity cash flow buyers (insurance companies, pension funds, etc.) and the investment banking community is currently undergoing the education process.

The anticipated minimum transaction size of loan portfolios is $50M. There are lending institutions approaching the EERE financing space, and may be able to provide lower traunches of capital in effort to seed the program. However, the transaction size to seed a program is anticipated to be in $10M-15M traunches of capital at a minimum.

syndication Overview

There is a significant market for the EERE annuity streams. Annuity buyers typically trade standardized products (bonds), which are rated and regulated. There is significant interest from the buy side in investing in EERE products. However, there is an overall lack of education on what the products risks and mitigants are. The most likely channels of funding include private placements and banks.

Private placements by boutique investment banking firms have been considered. However, there is a general lack of knowledge available on the underwriting criteria for the agents selling the products. Additionally, the transaction costs for individual private placements will require significant capital volume ($50M +) to spread the fees among the individual loans.

Thus, banks may be better suited to syndicate the loan pools under a program. The transaction fees could be over multiple traunches ($10M-15M), and more efficiently spread among the individual loans.

The banks perspective in creating a loan program is that the costs would be amortized over the course of the program. The expectation is that the first few transactions are loss leaders, and fee income will be forthcoming.

lack of standardization

ThemainissueforbanksindevelopingEEREprogramsistheissueofamortizingthetransaction/program expenses over a relatively short time period. There is a general lack of standardization for policy, underwriting guidelines and purchasing platform among the cities, all of which are impediments to an efficient funding system. Inefficiencies result in higher expenses and ultimately a higher cost of funds for the consumers.


I n d u S t ry r E F E r E n c E m at E r I a L S



reProduCed From: http://www.americanprogress.org/issues/2009/08/pdf/rebuilding_america.pdf.

AP PH

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WWW.AMERICANPROGRESS.ORG WWW.ENERGYFUTURECOALITION.ORG

Rebuilding AmericaA National Policy Framework for Investment in Energy Efficiency Retrofits

Bracken Hendricks and Benjamin Goldstein Center for American Progress

Reid Detchon and Kurt Shickman Energy Future Coalition

August 2009


reProduCed From: http://www.americanprogress.org/issues/2009/08/pdf/rebuilding_america.pdf. reProduCed From: http://www.americanprogress.org/issues/2009/08/pdf/rebuilding_america.pdf.

The Center for American Progress and the Energy Future Coalition have teamed up to develop a national policy framework on “Rebuilding America” through energy efficiency retrofits, to meet the economic and environmental challenges of the 21st century.

The Center for American Progress is a non-partisan think tank dedicated to improving the lives of Americans through ideas and action. It combines bold policy ideas with a modern communications platform to help shape the national debate and challenge the media to cover the issues that truly matter. The Center is committed to restoring America’s global leadership to make America more secure and build a better world, seizing the energy opportunity to create a clean, innovation-led economy that supports a sustainable environment, and creating progressive economic growth that’s robust and widely shared, restoring economic opportunity for all.

The Energy Future Coalition is a non-partisan public policy initiative supported by foundations that seeks to speed the transition to a new energy economy. Combining expertise and advocacy, the coalition brings together business, labor, and environmental groups to identify new directions in energy policy with broad political support, especially those that address three great challenges related to the production and use of energy: The political and economic threat posed by the world’s dependence on oil; the risk to the global environment from climate change; and the lack of access of the world’s poor to the modern energy services they need for economic advancement.

This report is a detailed examination of how the United States can build a low-carbon economy by harnessing energy efficiency as our “first fuel.” By retrofitting existing homes and businesses, we can cost-effectively reduce end-use waste and pollution, and at the same time jump start an economic recovery, create good jobs, and give consumers real energy cost savings�even as we ensure a safer, healthier, and more secure future by combatting global warming.

This report sets a goal of developing an energy efficiency industry that will retrofit 40 percent of our nation’s building stock, or 50 million buildings, within the next 10 years. This project would require over $500 billion in public and private investment, and create approximately 625,000 sustained full-time jobs directly and indirectly throughout the decade. Rebuilding America’s buildings for energy efficiency will reduce energy use, household bills, and global warming pollution by 20 to 40 percent for 50 million homes and small businesses, all while generating $32 billion to $64 billion in annual consumer energy cost savings.

A vibrant national retrofit market starts with rebuilding America for energy efficiency, directed with real leader-ship and innovative policy, and resulting in the launch of a new generation of competitive American businesses and sustainable careers. This paper offers a national framework to achieve this complex but critical goal.

– Bracken Hendricks and Benjamin Goldstein for the Center for American Progress– Reid Detchon and Kurt Shickman for the Energy Future Coalition

August 2009

Foreward

Rebuilding AmericaA National Policy Framework for Investment in Energy Efficiency Retrofits

Bracken Hendricks and Benjamin Goldstein Center for American Progress

Reid Detchon and Kurt Shickman Energy Future Coalition

August 2009



Executive summary | www.americanprogress.org 1

Executive summary

Investments in building efficiency retrofits can simultaneously address the challenges of economic recovery, energy insecurity, and global warming by laying the foundation for sustained economic growth, driving demand in the construction and manufacturing sec-tors, and creating hundreds of thousands of good jobs across the country. Retrofitting our homes and businesses will also slash consumer energy expenditures, increase real estate values, and provide low-cost, near-term reductions in global warming pollution.

Today, buildings account for 70 percent of all U.S. electricity consumption and 40 percent of total U.S. greenhouse gas emissions. Yet much of our housing and building stock is old, inefficient, and unnecessarily wasteful. While building codes and green building standards offer a tool for achieving deep improvements in energy use for new buildings, half of the buildings that will be standing in 30 years already dot our landscape. Any strategy to cap-ture the benefits of energy efficiency in our “built environment” must include a program to retrofit our existing stock of residential, commercial and industrial structures.

Deep building retrofits can cut energy use by 20 to 40 percent with proven techniques and off-the-shelf technologies. Best of all, they can pay for themselves from the energy they save.

“Rebuilding America,” a national program to cut energy waste in buildings, could reduce energy bills economy-wide by hundreds of billions of dollars annually. Energy efficiency retrofits also create good local construction jobs across the country at a time when well over a million construction workers sit idle in a sagging housing market. Demand for the manufactured products needed to retrofit buildings will also result in jobs by revitalizing the manufacturing sector and contributing to sustainable, long-term economic growth.

If building retrofits can be profitable and offer so many additional social and economic benefits, why has a large-scale market not yet materialized? The short answer is that the market for energy efficiency faces many information failures and real market barriers. Without specific public policies to encourage widespread private investments in energy efficiency, the great value of this market will be left unclaimed. The U.S. economy will be worse off for this failure to act. So too will our planet.

The failures evident in the lack of a thriving nationwide marketplace for energy efficiency products and services include:

1 Executive summary

5 A national energy efficiency market: obstacles and benefits

15 The architecture of a national retrofit market

26 Transforming the retrofit market: A strategy for moving forward

33 Recommendations for the executive branch

43 The last word

44 Glossary

46 Endnotes

47 About the authors

49 Acknowledgments

Contents



Executive summary | www.americanprogress.org 3

Easier access for new customers to energy-retrofit programs and financing.Improved capacity of businesses to meet this new demand for retrofits.Training and certifying workers to handle this new demand and assure quality.Affordable financing for residential and small business retrofits.New institutions that will organize this market.

All of these measures are necessary building blocks for a strong national energy efficiency strategy, but this paper also looks at what more is needed. We’ve identified five key areas where focused national policy leadership is required immediately to launch a nationwide energy efficiency retrofit industry:

Technical assistance and capacity building to create a national energy efficiency effort that builds and strengthens existing state, local, and private sector initiatives.Retrofit financing and cost recovery mechanisms to facilitate investment and capture the value of energy efficiency.Retrofit performance standards and quality assurance to improve consumer confi-dence and facilitate measurement and verification of energy savings, in this now deeply fragmented market.Smart codes and regulations to shift incentives toward efficiency and provide certainty for investors.Workforce development programs and job quality standards to supply the requisite high-quality labor force.

This architecture must be created through a comprehensive national policy approach con-sisting of a strategic combination of incentives and standards, both of which are critical to overcoming the numerous obstacles that have thus far discouraged consumers and busi-nesses from taking action on energy efficiency. To create the market conditions needed to stand up an industry large enough to perform deep retrofits of 50 million buildings, Congress and the Obama administration should take two key actions:

1. Mobilize major institutions that have strong customer relationships with building own-ers to market energy efficiency to every building owner in America, provide improved tools for financing and repayment through existing billing mechanisms, and provide a trusted point of access for energy efficiency services that are certified and guaranteed. These institutions include:

Utilities and other suppliers of electricity and gas. Banks and insurance companies that provide mortgages, insurance, and other financing.Local governments to whom building owners pay property taxes for public services.

2. Encourage the growth of a high-performance, high-standards retrofit industry by taking early steps to ensure performance standards and verifiable energy savings, and engaging market participants at every level, including:

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Poor availability of information for consumers about their energy consumption.Split incentives between building owners and tenants to invest in energy efficiency retrofits.Lack of capital or access to capital to support investments in energy efficiency.Limited tenancy or ownership structures that encourage short-term decision making and do not take into account the benefits of energy efficiency.Perceived costs of retrofits, and a lack of knowledge about available solutions.General risk aversion by consumers, especially when loans are tied to their personal credit instead of conveying with property. Disaggregated energy efficiency markets where many small decisions about purchasing, materials, operations, and maintenance are required in order to realize savings.High up-front borrowing costs for retrofits.The risk of creditor default in a real estate finance market that today is severely constrained.

Congress and the Obama administration have an historic opportunity to ensure that investments made in weatherization and energy efficiency as part of the recently passed American Recovery and Reinvestment Act evolve into a sustainable clean-energy retrofit program and a linchpin of the American economy for years to come. Together, govern-ment policymakers can forge a strategy that pursues clean energy as a tool for local and regional economic development in states and communities nationwide, as well for U.S. global economic competitiveness.

Retrofitting our houses and office buildings cannot be accomplished by public programs alone, however. Rebuilding our “built environment” will require changes in our real estate markets, new energy efficiency financing tools, more skilled labor to handle the construc-tion and inspection work, and new private capital investments in the industries, infrastruc-ture, and workforce required for energy efficiency. A coherent and coordinated national strategy for unleashing the market for energy efficiency is essential.

“Rebuilding America” focuses on the challenge of dramatically increasing investment in residential and commercial building energy efficiency, with a goal of retrofitting 50 million buildings�40 percent of our building stock�by 2020. Reaching that goal will require $500 billion in public and private investment but will directly and indirectly generate approximately 625,000 sustained full-time jobs and save consumers $32 billion to $64 bil-lion a year in energy costs, or $300 to $1,200 a year for individual families.

Clean energy and climate legislation recently passed by the House of Representatives calls for reducing greenhouse gas emissions from 2005 levels by 17 percent by 2020, and by 83 percent by 2050. Rapidly improving the efficiency of our existing buildings is essential to meeting these goals, and the House bill and a companion Senate bill now under consider-ation could help in some very specific ways by supporting:



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A national energy efficiency market: obstacles and benefits

The challenge of retrofitting the nation’s existing buildings is immense. There are 115 million residential and small commercial structures in the United States. Even if we achieve the Obama administration’s ambitious goal of retrofitting one million build-ings per year, it would still take over a century to capture all the energy-saving potential within the existing built environment. Our economic and environmental crises do not afford us the luxury of 100 years.

Fortunately, these potential energy savings represent a huge, profitable, and virtually untapped resource. To seize the opportunity before us with the scale and urgency required, we need a robust and market-driven nationwide retrofit effort capable of rebuilding 50 mil-lion buildings by 2020�approximately 40 percent of all U.S. residential and small commer-cial building stock. “Rebuilding America” would cheaply and effectively make a significant contribution to the energy savings necessary for the United States to meet the near-term global warming pollution reduction goals outlined in emerging climate legislation, while providing consumers and small businesses much-needed savings on their utility bills, as well as driving job creation to help lift the country out of a difficult economic recession.

The urgency of action

Two challenges�the urgent need for economic recovery and job creation, and the grow-ing threat of climate change�demand immediate action. Average global temperatures have already risen 1.5 degrees Fahrenheit since 1900 and are expected to continue to rise another 2 to 11.5 degrees by the end of the century if greenhouse gas emissions continue unabated.1 The effects of a temperature rise even on the lower end of this range will be dramatic and felt throughout the United States. Changes in weather patterns, wildfire frequency, and a rising sea level will have major negative consequences on agriculture, infrastructure, ecosystems, public health, and the economy and society as a whole.

Meanwhile, the current recession is proving both severe and sustained. There are currently 14.7 million unemployed Americans, nearly double the number in December 2007.2 And while recent reports indicate that the home foreclosure crisis may be close to cresting, the damage has been severe and will likely continue. The Congressional Joint Economic Committee estimates that the subprime mortgage crisis resulted in $71 billion in direct

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Consumers: Enhancing confidence with standards for auditing, performance mea-surement and verification, and better labeling of energy efficient buildingsWorkers: Building strong labor markets through career training, job quality stan-dards, and community-based pre-apprenticeship programsIndustry: Empowering building owners and contractors to act by providing better information to markets through standards, incentives, and data

Without a strong public policy framework, the private sector acting alone will not invest to maximize the clear private and public benefits of encouraging comprehensive energy efficiency, and the harm to the global climate will continue unabated. Over time, however, the public-sector role in jump starting these new energy efficiency markets can be reduced as the private sector develops improved business and finance models and once a price is established on global warming pollution. That is the path outlined in this paper.

Energy consumption of a typical household, 2009 U.S. greenhouse gas emissions by end use sector

13% Water heating

38% Space heating/cooling 18.2% Commercial

20.8% Residential

7% Refrigeration/freezer

15% Other uses

3% Cooking

27.3% Industrial

5% Clothes washer/dryer

11% Lighting

1% Dishwashers

5% Television

2% Personal computers39% Buildings

33.6% Transportation

Source: US EIA Emissions of Greenhouse Gases in the United States 2007 Table 6.Source: Energy Information Association, Annual Energy Outlook 2009: Table A4.




Getting to five million retrofits a year will require investments averaging $50 billion a year. Spending on this scale can only come from the private sector, but last year utilities spent only $3.1 billion on efficiency programs, largely to comply with public policy mandates driven by innovative state programs in states such as Texas, New York, and California. Energy service companies spent only $2.5 billion on efficiency in 2006 (the last year for which data is available), primarily on large facilities. And commercial building owners spent even less.7 A national strategy is needed that combines strong policy signals with incentives and standards to transform the market.

Residential potential

There are slightly more than 111 million single family homes and individual apartment units in the United States.8 Approximately 70 percent are owner occupied. The average U.S. home is about 40 years old and uses roughly 40 percent more energy than homes built after 2000.9, 10

While the results of individual retrofits vary based on a number of factors, most existing residential retrofit programs can achieve energy savings of 20 to 40 percent with an aver-age investment of $5,000 to $20,000 per home. Federal low-income residential weatheriza-tion assistance is currently capped at $6,500 per home (up from $2,500 in recent years), but cost effective measures frequently justify significantly higher investment levels. Using a figure of $10,000 per home, retrofitting 40 percent of residential building stock over the next ten years would create a total market value of $444 billion�many times greater than the business-as-usual market scenario.11

Installing high efficiency insulation.

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losses to homeowners, an additional $32 billion in related costs, a decrease in housing values by $2.3 trillion dollars, and foreclosures totaling 3.1 million in 2008, up from 1.2 million in 2006, a staggering 225 percent increase.3 4 5 Commercial real estate markets could also face strongly adverse economic conditions for some time to come.

A large-scale building efficiency retrofit effort will address both of these challenges: providing good jobs for hundreds of thousands of Americans while delivering consumer relief in the form of lower energy costs, increasing the value of our building stock through capital improvements and lower operating costs, and reducing greenhouse gas emissions from the building sector, the country’s most significant energy user.

Market potential

The real estate market is typically divided into four segments: residential, commercial, industrial, and public, the last of which is often referred to as the MUSH sector as it includes municipal, university, school, and hospital buildings. This paper focuses on resi-dential and small commercial buildings in particular because they:

Represent the segments facing the most severe barriers and market failures.Cumulatively account for over half of all building-related global warming emissions.Offer tremendous potential for public engagement around the importance of energy-efficiency savings because these buildings are inextricably connected to the lives of millions of citizens and business owners nationwide.

Existing policies and market forces have enabled the larger commercial and industrial seg-ments of the industry to be decently served by a retrofit industry through energy service companies. The service companies provide in-depth efficiency retrofit and conservation solutions and performance contracting, as well as offering a direct model for large commer-cial users to finance capital investments with verifiable energy savings. The more substantial total energy savings potential in large commercial buildings and the smaller transaction costs of retrofitting these buildings due to their scale have attracted more capital invest-ment. Public buildings have also attracted significant investment in building efficiency�a trend that was greatly accelerated by the American Recovery and Reinvestment Act, which invested heavily in retrofitting government buildings to reduce energy use.

Meeting “Rebuilding America’s” goal of 50 million retrofits by 2020�an average of five million buildings a year over the next decade�will require a tremendous increase in financing, human capital, and manufactured goods. In the residential market, for example, the country currently only retrofits approximately 200,000 homes a year, spread across publicly subsidized programs such as the low-income Weatherization Assistance Program and the private home performance industry.6




percent of small commercial buildings to this standard would create a total market of $144 billion to $432 billion by 2020.17 Again, a significant increase compared to business as usual.

The commercial real estate market is divided into owner-occupied and rental units, pre-senting a distinct, split-incentive challenge to boosting energy efficiency that we address later on in the paper. The real challenge today in the commercial market, however, is a toxic combination of plummeting property values and increased vacancy rates. Building owners are highly reluctant to make capital improvements when the value of their asset is decreasing and the building may end up vacant for a period of time.

Scale of the opportunity

The building sector is both urban and rural, and touches older northern industrial towns and rapidly expanding Sun Belt communities alike. Every region in America stands to gain from a robust national effort to retrofit 50 million buildings by the year 2020 because of the job creation it will spark, the energy savings it will foster, and the reduced carbon emissions it will ensure. The building and construction trades, and their supporting manufacturing and service industries, form a foundation of well paying, high-skill jobs in all parts of the country.

Job creation

Retrofitting our building stock to reduce energy waste would put Americans back to work in the industries hardest hit by the economic downturn�construction and manufactur-ing. The need for a major source of new job creation is urgent. Nationwide, approximately 1.6 million construction workers, or roughly 17 percent of the construction workforce, are without jobs. That number reaches 25 percent in some particularly hard-hit areas of the

= $50 billion per year $50 billion per year ÷ $1 million invested × 12.5 jobs = 625,000 jobs sustained year over year

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The payoff from these investments is equally impressive. Americans currently spend $200 billion per year to light, heat, and cool their homes.12 Thus, energy savings of 20 to 40 per-cent in 40 percent of the residential building stock would produce total household savings on the order of $16 billion to $32 billion annually.13 These energy cost savings would be accompanied by the benefits of substantial carbon emission reductions and the develop-ment of a more energy efficient economy overall.

Of course, there is a good deal of diversity within residential real estate markets. This creates challenges for developing a nationwide retrofit strategy. There are real distinctions between owner-occupied homes and rental properties, and between single- versus multi-family dwellings�differences that influence the structure of retrofit companies’ business models. Incentives and building standards also vary widely by state and region, as do market structures. Different ownership and tenancy agreements within both residential and small commercial markets result in further complications for policy makers.

Low-income properties�both owner-occupied and rental units�deserve special atten-tion within a national policy framework. The Weatherization Assistance Program, run by the Department of Energy, relies on annual appropriations that normally do not support more than 100,000 retrofits per year. This paper presumes the need for robust support for the Weatherization Assistance Program and similar programs, but looks beyond to explore how to access the far broader private market potential.

Commercial potential

U.S. businesses occupy 36 billion square feet of commercial space in over 4.6 million build-ings of 50,000 square feet or less.14 The small commercial market accounts for 95 percent of total U.S. commercial buildings.15 A recent study by Pike Research found that an investment of $10 to $30 per square foot could reduce energy usage by 40 percent.16 Retrofitting 40

We use the conservative calculation of 12.5 direct and indirect full-time-equivalent jobs created per $1 million invested in building efficiency retrofits. This estimate fits squarely in the range of retrofit job creation estimated by the Political Economy Research Institute, the National Association of Homebuilders, the Center on Wisconsin Strategy, and many others. Approximately ⁄ of these jobs are created from direct installation of energy efficiency retrofit measures, and 1/3 are created indirectly, in the manufacture of parts and materials.

Retrofitting 50 million buildings at a conservative estimate of $10,000 per building would generate $500 billion in investments over 10 years. $500 billion times 12.5 jobs/million produces 6.25 million person-years of employment, which averaged over 10 years equals 625,000 jobs sustained annually. This does not include the jobs that are induced in other sectors of the economy through an increase in economic activity and local spending.

Job creation through building efficiency retrofits

12.5 jobs per $1 million invested $10,000 per retrofit × 50 million retrofits = $500 billion $500 billion ÷ 10 years (average)




person years of construction jobs and program support, and 3 to 4 person years of indirect employment in manufacturing supply chains.20 Through a combined average of direct and indirect jobs, a conservative working estimate is that every $1 million investment in energy efficiency retrofits will result in 12.5 full-time-equivalent jobs per year.

Assuming an average of $10,000 is invested in each retrofit,21 our target of 50 million build-ings would require a $500 billion investment over 10 years, creating approximately 6.25 million person-years of work in construction, manufacturing, and program administration (direct and indirect job creation). Spread out over 10 years, this would result in an average of 625,000 full-time-equivalent jobs sustained annually, not including the induced labor resulting from additional local economic activity.22

Energy savings

Based on demonstrated retrofit performance, cost-effective energy savings of 20 to 40 percent can reliably be achieved throughout U.S. building stock, according to the National Action Plan for Energy Efficiency, a public-private partnership led by the U.S. Environmental Protection Agency and Department of Energy, along with representatives of the utility industry, state regulators, consumer advocates, and other businesses.23 “Cost effective” in this case means that the particular efficiency upgrades can pay for themselves

Source: U.S. Environmental Protection Agency. Source: U.S. Environmental Protection Agency.

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country. Additionally, 2 million manufacturing workers are unemployed, equivalent to 12 percent of the total manufacturing workforce.18

Fortunately, the job-creation potential from building efficiency retrofits is significant. Unlike other infrastructure investment projects that are concentrated in particular geographic areas, retrofitting would create good, skilled jobs in every community because building efficiency gains and light manufacturing potential are available throughout the country.

With so many unemployed construction workers, there is a large reserve of ready labor in need of only moderate retraining and the proper certifications to enter the building retrofit workforce. Moreover, dramatically increasing demand for energy efficient build-ing materials has the potential to invigorate domestic manufacturing centers to produce advanced-performance windows, insulation, appliances, and other high-efficiency durable goods that have ample potential to be produced right here in the United States.

The majority of these construction and manufacturing jobs will be in familiar occupa-tions, repurposed and expanded with clean energy skills and knowledge, and directed towards low-carbon outcomes. What is the potential? According to a study by the Center for American Progress and the Political Economy Research Institute at University of Massachusetts at Amherst, every $1 million invested in building efficiency retrofits directly creates 12 full-time-equivalent jobs.19

This number is corroborated by the Center on Wisconsin Strategy, which estimates that every $1 million invested in residential and commercial retrofits directly creates 10 to 14

Job creation through 2020

Investment per retrofitAverage annual investment

for 50,000 retrofitsJob-years created

$5,000 $25 billion 312,500

$10,000 $50 billion 625,000

$20,000 $100 billion 1,250,000

Source: Energy Information Administration, Annual Energy Outlook with Projection to 2030, tables 4 and 5. Energy Information Administration, Emissions of Greenhouse Gases Report, table 6 (2008).

Annual savings to 2020

Reduction in energy consumption

Total annual average energy savings

Annual emissions reductions (CO

2)

Based on 2007 data

Annual consumer savings

20% 2.22 quadrillion btu 18.69 million metric tons $32 billion

40% 4.45 quadrillion btu 37.33 million metric tons $64 billion

Source: Energy Information Administration, Annual Energy Outlook with Projection to 2030, tables 4 and 5. Energy Information Administration, Emissions of Greenhouse Gases Report, table 6 (2008).




in greenhouse gas emissions from 2005 levels by 17 percent by 2020, and 83 percent by 2050. Rapidly seizing the opportunity to system-atically reduce energy waste from buildings is essential to meeting both of these goals.

Small commercial and residential buildings currently use nearly 40 quadrillion British Thermal Units, or BTU’s, of energy each year,30 an amount of energy equal to 6.88 billion barrels of oil.31 A 20 to 40 percent reduction consistent with “Rebuilding America’s” goals would yield a savings of approxi-mately three to six quadrillion BTU’s of energy annually, the equivalent of taking 48 to 96 mil-lion passenger cars off the road.

From local programs to a national market

Some state and local energy effi-ciency programs have been quite successful and offer important lessons to inform the creation of a national market. At the municipal level, a handful of innovative programs are being developed and tested, includ-ing ones in Babylon, New York; Berkeley, California; and Cambridge, Massachusetts. In each case, local governments have used existing authorities in new ways to provide citi-zens with access to low-cost financing for energy efficient home retrofits with little or no out-of-pocket payments and ongoing repayment of retrofit costs through energy savings. Establishing these programs using local government provides a trusted point of contact for homeowners, and provides local businesses a way of accessing a growing pool of residen-tial retrofit customers.

In addition, a number of states�most notably California�have used a combination of incentives and mandates to induce their utilities to invest in efficiency. Critical to success is regulatory reform to “decouple” utility sales from profits. Utility revenues in most states are linked to the amount of energy they sell. If efficiency programs reduce consumption, and if that in turn cuts profits, there clearly will be little utility enthusiasm for efficiency. In

Bill summary

Average monthly bill, pre-retrofit $100

Amount this month $70

Savings from retrofit $30

Retrofit repayment $20

Net monthly savings $10

John Smith1234 Any StreetAny City, US 56789

Your average energy usage Pre-retrofit usage

This month's usage

Energy bill: $70based on reading from June 1–July 1, 2009

Please pay by August 1, 2009

Mock-up of “on-bill” retrofit financing.

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through energy savings over time.24 Investing in building efficiency creates real economic benefits for consumers by reducing their energy expenditures. The country as a whole spends approximately $400 billion annually to power our residential and commercial buildings.25 A 20 to 40 percent reduction in energy use in 50 million buildings would generate $32 billion to $64 billion in annual consumer energy savings.

These savings can make a real difference for the average American family, which spends more than 5 percent of their income on home energy costs. Low-income households�those at 150 percent or less of the poverty line�spend 16 percent.26 For the average homeowner spending $1,500–$3,000 per year on residential energy, savings of 20 to 40 percent amount to $300 to $1,200 in annual savings. Two successful local retrofit programs in cold areas of the country are currently reporting significant annual savings of $600 and nearly $1,000, respectively.27

Similarly, small commercial buildings have tremendous potential energy savings, yet like residential real estate, these buildings have not been effectively served by existing commer-cial energy service companies and other existing providers, leaving substantial unclaimed value throughout this sector.

Other social benefits of energy efficiency include improved air quality due to decreased energy generation, (which in turn leads to improved public health outcomes), increased

property values as the building stock is improved, and gains in consumer spending in other sectors due to lower energy bills, creating a ripple effect of induced economic activity.

Reductions in carbon emissions

Cutting energy waste is the cheapest, fastest, and most important step we can take to address the growing crisis of global warming. The cleanest form of energy is the energy we do not use: the “nega-watt,” as coined by physicist and energy efficiency evangelist Amory Lovins. Buildings account for 40 percent of total economy-wide energy use and a nearly equal amount of greenhouse gas emissions, a number that rises to nearly 48 percent when indi-rect energy use from the manufacture and transpor-tation of building materials is factored in.28, 29

Clean-energy and climate legislation recently passed by the House of Representatives calls for a reduction

"Rebuilding America" Energy savings projections

Quadrillion Btu

Source: Energy Information Administration, Annual Energy Outlook with Projections to 2030. Table 2.

30

35

40

45

50

20092010

20122014

20162018

20202011

20132015

20172019

Total projected residential and commercial energy consumption

“Rebuilding America” 20% reduction in energy consumption

“Rebuilding America” 40% reduction in energy consumption




The architecture of a national retrofit market

Major legislative and regulatory policy changes are required to create the conditions to sup-port a vibrant national retrofit market, built on sustainable long-term private-sector invest-ment, adequate capital, new business models, and well-trained workers to do the job.

Five key elements must develop simultaneously to grow the retrofit market on a national scale. Yet each area presents distinct challenges that will require specific policy-led solu-tions. These market components and key challenges include:

Customers: Demand for retrofits must overcome barriers to entry such as the lack of up-front capital as well as uneven quality control.Businesses: Creating qualified retrofit businesses and facilitating access to the current fragmented market will require new standards, and certifications.Workforce: Supplying new workers will require training and certification as well as opportunities for career advancements.Financing: Attracting private capital and establishing dependable repayment mecha-nisms are essential to growing the market.Institutions: New organizations and agencies will be required to send the right policy signals that will create this market on a national scale.

In this section we describe why each of these components is significant, identify current market barriers and the policy levers necessary to surmount the existing barriers, and examine some innovative local models that address these challenges and point the way forward for a national retrofit effort.

Customers

Most people would love to cut their energy waste, save money on their utility bills, and improve the comfort of their home or business, but many barriers make the “product” (greater energy efficiency performance) too much of a hassle to pursue. These market bar-riers are numerous and complex:

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the Northeast, a number of states use a consumer surcharge to support a “public benefits fund” that invests in efficiency. Other states, including Vermont and Delaware, have cre-ated “efficiency utilities” to deliver services directly to consumers. Increasingly, energy regulators have also allowed efficiency and demand management to compete directly with new energy supplies, bidding against new power plant construction for the ability to meet future energy needs at the lowest cost.

With the influx of $18 billion from the American Recovery and Reinvestment Act, public officials across the country are ramping up programs to move this new funding out the door and into local retrofit programs. Federal spending has been used for local energy efficiency block grants, public housing efficiency measures, federal building efficiency upgrades, and expanded Weatherization Assistance Programs. Results of these efforts are already being seen on the ground today, as recovery funds reach state energy offices, local governments, and non-profit community action partnerships, to invest in projects around the country.

However, unless private capital markets begin to take over when direct public spend-ing ends within two years, then these emerging businesses will quickly run into trouble. Smart federal legislation and executive branch leadership can support real and perma-nent market transformation to produce the conditions necessary for these local pro-grams and supporting businesses to flourish and grow beyond this period of economic stimulus. With major pieces of clean energy and climate policy legislation currently moving through Congress, there is no better time than today to address this question.




businesses entering this line of work will require national accreditation, monitoring, and verification for quality control.

Utilities, for example, are natural candidates to serve the home and small commercial ret-rofit market, but they often operate under an outdated regulatory system that creates dis-incentives for them to pursue cost-effective energy efficiency. Energy service companies have had success only by serving the large commercial, or MUSH�municipal, university, schools, and hospitals�segments of the real estate market. And the small number of building performance contractors currently serving the residential and small commercial markets have a tiny consumer base, consisting of proactive owners with access to financ-ing, a long-term investment strategy, and often a measure of altruism.

To date, a paucity of successful business models and an unsupportive policy environment have severely hampered the growth of the private retrofit industry. The energy efficiency retrofit sector currently occupies only a small niche in the larger ecosystem of building contracting. Many businesses specialize in specific components of building performance, such as windows and heating, ventilating, and air conditioning systems�or HVAC�insulation, but very few businesses actually understand whole-building systems and the science and techniques behind comprehensive energy efficiency improvements.

But as a national industry grows, expect to see a proliferation of full-service building performance contractors qualified to perform or supervise all the requisite retrofit work. These full-service contractors will be able to perform most of the necessary work and hire and supervise subcontractors to bring down the total cost of a large pool of retrofits through specialization and efficiencies in the work performed.

Contractors currently shy away from individual residential and small commercial retro-fits�one-off contracts for small jobs that include the time and opportunity costs of meet-ing with potential customers, assessing and estimating the cost of the job, and performing the actual work. Yet several local efforts show that it is possible to grow a pool of qualified businesses able to achieve profitability by accessing a large pool of ready customers. To thrive, businesses need the following market conditions:

A mechanism to aggregate large numbers of individual retrofit projects in order to simplify the contracting process, reduce transaction costs, and help achieve economies of scale.A clear and dependable set of carrots and sticks�incentives and standards�that drive and reward customer demand, particularly at the outset as the market gets on its feet.A clear set of standards for contractor accreditation to ensure continuity across geogra-phies and to support consumer confidence in the quality of work.

Let’s consider each of these points in turn. A pool of customers can be aggregated by bundling multiple units into one retrofit contract or pooling retrofit projects by geography, for example, block-by-block or neighborhood-by-neighborhood. This aggregation could

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Consumers have inadequate information about their current energy consumption and therefore don’t fully recognize the value of efficiency.The energy efficiency retrofit industry is not well established, and there are very few full-service retrofit contractors, making it difficult for customers to know where to turn and whom to trust to do the work.Many consumers have short planning horizons and prefer investments with near-term results, whereas the payoff for energy efficiency is more long-term.Building owners are skeptical about making an investment that won’t transfer if they sell the property, particularly if access to capital is tied to their personal credit rather than attached to the property.High up-front costs can make access to capital a problem, especially for home and busi-ness owners with suboptimal credit histories or large existing debt burdens.Renters and owners are caught in a “split incentive” paradox in which the owner respon-sible for making capital investment decisions is not the same as the renter who pays the utility bills and reaps the benefits of improved building performance.

Any successful retrofit program must overcome these market barriers and increase indi-vidual consumer demand by making it cheap and easy to say “yes” to retrofits. Several local retrofit programs are showing increasing degrees of customer uptake by providing a complete retrofit product and then facilitating market transactions by:

Creating a clear and accessible point of contact for the consumer for all information related to the retrofit. Requiring little or no up-front expenditures for customers who are cash-short, have inad-equate credit, or who simply wish to spread their repayment obligation into the future.Financing at low interest rates.Designing a simple repayment mechanism that strives to remain cash-positive over time so that the energy savings are greater than the monthly loan payment.Ensuring that quality work is performed by certified contractors.Attaching the costs of the retrofit to the property title or the utility meter rather than the building occupant. Monitoring the work performed to verify the energy savings.

This list captures the most important characteristics of a successful retrofit program. Addressing all seven of them in a national retrofit program will go a long way toward over-coming the market barriers inhibiting customers from pursuing efficiency retrofits.

Businesses

Achieving real energy savings�and customer satisfaction�is largely contingent on the quality and the efficiency of the work being performed. Ensuring the integrity of this retrofit work by hundreds or thousands of new businesses across the country or existing




Nearly all successful local retrofit business programs utilize some sort of implementing institution to facilitate customer aggregation, streamline the contacting process, admin-ister the financing, cost recovery and incentive packages, and verify the credentials of the contractor pool so that this administrative work does not encumber the business itself. Relieving businesses from performing these aggregating functions improves the profitabil-ity of the industry as a whole. Additional roles and the overall importance of these kinds of institutions are elaborated in detail on page 24.

Workforce

There is very promising job-creation potential associated with an ambitious scale-up of building energy efficiency retrofits. Yet the capability to rapidly train or re-train and certify workers to perform these jobs has the potential to create a bottleneck in the growth of a large-scale retrofit industry.

We estimate that retrofitting 50 million buildings over the next 10 years will create and sustain an average of 625,000 full-time-equivalent jobs for a decade. Most of these jobs will be in traditional occupations, repurposed and expanded with “green” skills, knowl-edge, and certifications.

Entry-level jobs in building efficiency retrofits include blowing insulation, caulking, and sealing air ducts. More advanced jobs include auditors who evaluate building performance, HVAC technicians, carpenters, and electricians. At the higher end of the training scale are the engineers versed in whole-house energy performance and the project managers who oversee multiple work crews. In general, most of the jobs created in the retrofit industry will require only basic upgrades to existing skills already existing within the building and construction trades.

Given the congruence between new jobs in the retrofit industry and more traditional con-struction jobs, enlisting an adequate supply of labor to serve a national retrofit market at scale will not be difficult. With over one-and-a-half million construction workers currently unemployed, there is a large reserve of ready labor in need of only moderate retraining and proper certification to enter the building retrofit workforce. This new retrofit market also creates an opportunity to build strong career ladders into jobs with family-sustaining wages for currently low-income and underemployed workers, connecting those who most need work with the work that most needs to be done.

Worker certification is necessary to guarantee the quality of retrofit work, and provides assurance to customers who would otherwise find it difficult to identify a qualified retrofit professional. Certification also helps elevate job quality across the industry and provide a foundation for career pathways into higher-skill specializations within the industry.

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be accomplished by a municipal govern-ment or non-profit energy efficiency utility providing a point of access for contracts with multiple customers within the same geographic area.

Consumer incentives are justified to incentivize individual action for the larger public good, but should be performance based to reward verifiable energy sav-ings. Technology-based incentives, such as the $1,500 tax credit currently available to homeowners through the American Recovery and Reinvestment Act, reward new products rather than energy savings, and often disincentivize low-cost, labor-intensive retrofit measures such as caulking and duct sealing because they reward only capital investments.

Standards for accrediting contractors and certifying workers are critical to growing an industry that is trusted by consumers and for enabling businesses to serve local mar-kets throughout the country. Without ade-quate standards, there is a very real danger that sub-par work will do irreparable harm to the reputation of the retrofit industry, particularly in the formative growth years. Certification also offers more certainty to financial institutions. Retrofit financing will face lower default risks if quality retrofit work results in real energy savings.

The Building Performance Institute is the nationwide gold standard for accreditations for contractors and certifications for efficiency technicians. The Residential Energy Services Network is the national standards-setting body for building energy efficiency rating systems and energy rater certifications. These two institutions are the result of years of successful collaboration between industry stakeholders�and their standards should form the foundation of any national retrofit strategy. The Environmental Protection Agency’s Home Performance with Energy Star program already incorporates these two standards and maintains a network of accredited contractors.

A national energy-efficiency retrofit market must bring together four groups

of actors around new financing and cost-recovery mechanisms and perfor-

mance standards to achieve long-term energy savings and carbon reductions.

Customers: The owners and renters of residential and small commercial

building whose properties would benefit from a retrofit, thereby reducing

energy waste, saving money on utility bills, and improving the comfort of

their homes or businesses.

Businesses: Accredited building performance contractors, energy service

companies, or other private-sector companies qualified to perform retrofit

work subject to third-party verification.

Workforce: The estimated 625,000 full-time-equivalent employees

sustained over 10 years needed to perform direct retrofit work and some

manufacturing of efficient building materials. In general, preparing this

workforce will require only basic upgrades to existing skills already within

the building and construction trades.

Financing and cost recovery: A dependable source of inexpensive capital

to pay for the upfront cost of the retrofit, with some security to lower the

risk of creditor default, and a hassle-free mechanism for servicing the loan.

Institutions: These include utilities, state and local energy agencies, munici-

pal governments, or nonprofit organizations that oversee the market and

coordinate transactions amongst the different actors. These institutions’ pri-

mary responsibility is to increase demand by simplifying the retrofit process

and removing market barriers.

Key ingredients for a national retrofit market




How to ensure that the jobs created in building efficiency retrofits are good jobs with liv-ing wages, benefits, and opportunities for advancement along career pathways?How to create pathways into the retrofit workforce for the economically disadvantaged to help lift people out of poverty and provide meaningful employment in a growing industry?

The first challenge is critical to ensuring that the building retrofit industry contributes to both short-term recovery and long-term economic development. It is not enough to sim-ply create large numbers of jobs if these jobs are low-caliber. Retrofit jobs are not automati-cally good jobs, but they can be made so if adequate attention is given to the development of labor standards, wage classifications, training supports, and performance standards. A national strategy is critical.

The second challenge has received strong attention from community-based social justice groups, and increasingly from advocates on the national stage. There is a growing recogni-tion that the emerging green economy can be a vehicle for reducing poverty and persistent unemployment. Civil rights, community, and workforce development groups have had various degrees of success in building these “pathways out of poverty” into good jobs in the emerging clean energy economy.

Less clear, however, is what these local efforts require from a national policy perspective in order to be successful. The Green Jobs Act, a piece of job training legislation originally passed in the 2007 Energy Independence and Security Act, contains specific language on building “pathways out of poverty.” Yet it has never been funded. The American Recovery and Reinvestment Act provides $500 million for green jobs training, of which $180 million is directed toward the economically disadvantaged�a good first step but still insufficient compared to the magnitude of the challenge. What’s more, this funding will expire in 2010.

One strategy being explored in several states and localities is a requirement that busi-nesses that receive taxpayer support reach out and support disadvantaged or underserved populations through targeted hiring, workforce investment boards, apprenticeships, and similar programs. Ensuring that public funds are employed to benefit the broader public good is a smart and fiscally responsible strategy, with potential for application in a national retrofit market.

Financing and cost recovery

Financing and cost recovery represent two critical and interrelated components of the residential and commercial retrofit market. Financing provides the capital to pay for the up-front cost of the retrofit, and cost-recovery mechanisms establish a procedure for servicing the loan, typically in installments that are less than the anticipated value of the energy savings in order to create a transaction that is cash-positive for the customer.

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The current scarcity of certified workers should not impede the development of the retrofit market. As demand for retrofits increases, contracting companies will hire workers currently “on the bench” (skilled but unemployed), provide them with the necessary train-ing, and assist them in obtaining the requisite certifications. This is one area where market mechanisms should function relatively well. Training and hiring pathways are well estab-lished in existing labor-management partnerships in the building and construction trades.

Third-party certifiers, such as the Building Performance Institute and the Residential Energy Services Network, are well established and deliver certifications that receive broad industry, government, and public support. These existing certifications should be relied upon heavily in the development of a worker certification system for the national retrofit market.

Despite the readiness of the labor pool and a template in place for worker certification, policy makers and industry stakeholders still confront two major challenges that the mar-ket will not automatically address:

Workers install energy efficient windows in a home in West Columbia, South Carolina.




Recoverable by the lender through a repayment system that attempts to remain cash-positive for the consumer by amortizing the loan over a long term.Provides some security on the loan to lower the risk of default.

From a lender’s point of view, this is not an easy mix of conditions to assemble. Conventional financing options, including consumer loans from banks or credit unions, home equity loans, and energy efficiency mortgages have all been largely ineffective as a financing tool for energy efficiency retrofits due to the myriad barriers described above.

A recent study of over 150 residential energy efficiency loan programs revealed that most energy efficiency loan programs reach less than 0.5 percent of potentially eligible partici-pants each year.32 These existing financing options should not be discarded as part of a national strategy to scale up building efficiency retrofits, but it is clear that an additional suite of financing tools will be necessary to build a national retrofit market.

Cities and states around the country are currently experimenting with innovative new approaches to financing and cost recovery, and their efforts offer insights as to how to deliver financing in a national retrofit market. One approach being explored in San Diego, CA�and elsewhere�is known as “on-bill financing,” where utilities provide a loan that is then serviced on the monthly utility bill.

“Tariffed installment payments” are a variant of on-bill financing that tie the repayment obligation to the utility meter rather than the customer, thus solving the problem of build-ing-owner transience by transferring the loan to the new owner if the property changes hands. First Electric Cooperative, an Arkansas-based electricity provider, allows hom-eowners with good credit to secure loans of up to $15,000 with a property lien, and the state of Pennsylvania provides secured loans up to $35,000. In both of these approaches, the threat of utility shut-off adds a degree of security to the loan.

“Clean-energy assessment districts,” sometimes known as the PACE model, or Property Assessed Clean Energy, are being piloted in a few locations around the country, includ-ing Berkeley, CA, and Babylon, NY. This approach involves establishing a municipal financing district that enables individual building owners in the district to repay their loan over an extended term via a special assessment on their property tax bill or in some cases via a monthly municipal services fee, or “benefits assessment.” Initial loan capital is usually raised through a municipal bond, the financing can be secured by a lien on the property superior to the first mortgage, and the repayment obligation transfers with property ownership.33

Implementing these innovative financing and cost-recovery mechanisms involves navigat-ing a host of logistical, legal, and regulatory challenges, but states and localities are proving that these can be overcome. Problem is, the finance community has very little experience lending or investing for residential and small commercial energy efficiency retrofits. This

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High up-front costs: High up-front costs are a deterrent for potential

customers who lack the available cash to pay for the retrofit or face

competing demands on a limited pool of funds. Even retrofit projects

with a rapid payback will rarely take precedence over more pressing

expenditures such as medical bills, mortgage payments, or car loans.

Split incentives: Split incentives occur when the individual who pays

the utility bill and would benefit from efficiency gains is not the indi-

vidual who owns the building and makes the investment decisions. This

most commonly occurs in a rental arrangement where the tenant pays

the monthly bill and the landlord maintains the property and makes

the capital investments. Rental units currently constitute about 30

percent of the U.S. residential housing stock.

Efficiency is an illiquid asset: Americans move frequently, yet building

retrofits are fixed capital investments that can not be easily trans-

ported. This creates an enormous disincentive to invest in cost-effective

retrofits that may take 10 to 5 years to pay for themselves, particularly

because the value of future energy savings is very difficult for the owner

to internalize in the selling price of the property.

Difficulty securing the loan: One reason private banks have thus far

been reluctant to finance building retrofits is the difficulty establishing

appropriate security for the loan. Energy efficiency retrofits simply do

not constitute good collateral, and establishing a second lien on the

property superior to the mortgage is a difficult procedure requiring the

proper legal framework.

Suboptimal credit: Many consumers who would be desirable to reach

from an energy-savings perspective have a bad credit history, may be

ineligible for a standard loan, or would be subject to an interest rate so

high it would nullify the savings from the efficiency retrofit and result in

a transaction that is no longer cash-positive.

Hurdles to retrofit financing

Experience thus far shows that first-cost investment barriers (large out-of-pocket pay-ments) are difficult to overcome. Consumers often have short investment horizons, tend to be skeptical of the energy savings projections, and are deterred by the “split incentive” challenge. Or they may simply not have the cash on hand or creditworthiness required to qualify for normal financing.

Even people with good credit and access to standard loans often don’t care to take on more debt, particularly if it is expensive debt, and particularly in today’s economy. Moreover, loan terms of 15-to-20 years are needed to achieve deep energy savings and still remain cash-positive in terms of monthly energy savings for the building owner. All these financial factors conspire against consumer demand for retrofits. (See box below.)

Access to low-cost financing and cost recovery in a national retrofit market can help remove these and other barriers inhibiting participation by both businesses and consum-ers. To overcome these barriers, a national retrofit effort must offer financing options with the following attributes:

Inexpensive (low interest), with little or no up-front costs and hassle-free to the consumer. Accessible to those with below-average credit scores.




Providing and overseeing mechanisms for quality assurance and quality control.Publicizing and delivering incentives to the consumer or business.Administering the financing and cost-recovery systems best suited to the needs of the customer base.

One potential role for the federal government in helping to nurture a national retrofit market could be to provide financial support for the initial administrative costs of these institutions, which can be substantial. Once the core organizational infrastructure is built, however, the marginal cost of increasing retrofit volume is nominal.

These implementing institutions at the local, state or regional level should continue to be the primary market administrators in any nationwide retrofit effort. The objective should engen-der and incubate a self-sustaining national retrofit market, rather than to develop a federal program requiring administrative overhead, new bureaucracy, and annual appropriations.

Enabled and supported by reliable public investment, a vibrant marketplace�where energy efficiency is appropriately valued and thus profitably targeted by the private sec-tor�can unleash a torrent of entrepreneurial businesses eager to capitalize on the chance to retrofit not just 40 percent of our nation’s existing residential and small business build-ing stock but all of it.

That being said, Congress and the executive branch need to establish the ground rules, conditions, ongoing support and oversight of a national retrofit market. Congress will be responsible for developing appropriate legislation. Federal agencies will set standards, disseminate technical assistance, and facilitate financing. And equally important, the President can elevate the status of energy efficiency and urge a nationwide retrofit effort that responds to differences in regional conditions. These roles are all further elaborated in the following section.

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makes it difficult to gauge the riskiness of the investment and causes lenders to charge higher interest rates, discouraging consumers from taking out the loan. And the lack of a clear underlying security on the loan can give pause to prospective institutional inves-tors, who otherwise might invest in these loans when lenders bundle them for sale in the secondary market.

A national retrofit effort will require policies to help drive down the cost of capital. Interest rate subsidies are one possible approach to drive down rates, yet this can be expensive for taxpayers. A cheaper approach is for the federal government to provide credit enhancements in the form of loan guarantees or bond insurance to help shoulder some of the risk and partially insulate lenders and investors against creditor default. These interventions would help leverage large amounts of private capital and lower interest rates for retrofit customers.

Finally, there is the potential of a national “Green Bank” or “Clean-Energy Deployment Administration,” now codified in legislation currently moving through Congress. A Green Bank could provide low-cost public financing or credit enhancements for retrofit pro-grams, as part of a larger clean energy financing strategy targeting large capital-intensive renewable and energy efficiency projects. The CEDA is described in greater detail in the policy section below.

Institutions

Institutions such as utilities, state and local energy agencies, and municipal governments can be both the brains and the connective tissue of the residential and small commercial retrofit market, overseeing market transactions and coordinating the different actors. Their primary responsibility should be to increase demand by simplifying the retrofit process and removing market barriers normally confronted by consumers.

These intermediating institutions can take a variety of forms besides the ones listed above, including public-private partnerships such as the sustainable energy utilities operating in Delaware and Vermont.34 In some cases, it may be a combination of several different enti-ties. Here are some examples of responsibilities that may fall under their jurisdiction:

Building public awareness of the retrofit program and its benefits.Serving as a focal point of contact for consumers looking for information and businesses seeking access to the market. Aggregating individual retrofit jobs to increase efficiency and scale. Coordinating bulk procurement to bring down the cost of materials.Facilitating transactions between all the different market actors.Maintaining a list of accredited contractors and periodically monitoring and verifying the integrity of their work.




different retrofit financing strategies, with options including credit enhancements or interest rate subsidies, providing projects with initial up-front capital, and allocating funds for utility-run programs. REEP also requires that public and assisted housing retrofit projects receive a minimum of 10 percent of available funds.

REEP is funded through the State Energy and Environment Development, or SEED program, and must receive at least 5.5 per-cent of the allowances allocated to SEED, which itself receives 9.5 percent of total value of emissions allowances starting in 2012 and decreasing thereafter.

Despite REEP receiving a relatively small minimum percentage of over-all SEED funding, the scale of state-initiated retrofit measures will sig-nificantly vary due to the leeway provided to states in how they spend their SEED dollars. According to the legislation, 20-to-80 percent of SEED allowances can be spent on various efficiency measures, includ-ing REEP. Other measures that can be funded through SEED include building performance labeling, renewable energy resources, smart-grid deployment and transportation projects.

The REEP program provides both prescriptive and performance-based pathways for home or building owners to qualify for direct support. In Section 202, the ACESA authorizes REEP grants for homeowners of $1,000 for prescribed measures that achieve a reduction of more than 10 percent and $2,000 for prescribed measures that achieve more than 20-percent reduction in energy consumption. For more stringent, performance-based retrofits, grants of $3,000 are provided for residential building improvements that achieve savings of more than 20 percent, with an additional $1,000 for awarded for every 5 percentage points above 20 percent achieved. Awards are also available for commercial buildings on a similar tiered structure, allocating from $0.15-$2.50 per square foot for demonstrated projects that reduce consumption 20 to 50 percent. Individual grant awards are capped at 50 percent of the total cost of the retrofit.

One important detail worth noting is that all retrofit work benefiting from REEP support must adhere to high standards. Residential Energy Services Network certifica-tion or Building Performance Institute certification is required for building auditors, inspectors, and raters�or an equivalent certification system as determined by the EPA Administrator�and retrofit contractors must be BPI-certified or licensed by the states. This strategy of tying access to federal funding to high standards is essential to develop-ing a quality national retrofit industry capable of satisfying customers and achieving verifiable energy savings.

A technician from Sustainable Spaces, a home performance contractor based in San Francisco, conducts a blower door test to identify air infiltration.

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Transforming the retrofit market: A strategy for moving forward

Creating a national building efficiency retrofit market will require changes in how we view and value energy efficiency in the marketplace. There are clear steps that both Congress and the Administration can take in the near term to begin building a low-carbon economy that prioritizes energy efficiency in the built environment, and supports diverse regional approaches. These include immediate legislative opportunities, executive action, and an ongoing outreach and public information campaign.

At the time of this writing, there are two major pieces of clean energy legislation mov-ing through Congress. The American Clean Energy and Security Act of 2009, or ACES, passed the House on June 26. The American Clean Energy Leadership Act, or ACELA, was reported by the Senate Energy and Natural Resources Committee on June 17 and awaits Senate action in the fall, most likely in combination with legislation to reduce global warming pollution.

Both ACESA and ACELA contain valuable provisions that would help create a national energy efficiency retrofit market, but neither is sufficient to fully develop a “whole build-ing” retrofit industry for the residential and small business real estate sector.

This section identifies provisions in ACESA and ACELA that should be kept or strength-ened as these bills move through Congress, and describes holes where legislation could provide additional leverage. These policies are more fully elaborated in the Additional Recommendations section below.

The American Clean Energy and Security Act of 2009

ACESA contains a number of provisions that will help grow the retrofit market. Overall, this bill is strong�yet still incomplete�in its support of establishing a building energy efficiency retrofit industry at scale.

The most relevant provision in ACESA is the Retrofit for Energy and Environmental Performance program, or REEP, to support efficiency improvements in residential and commercial buildings. REEP provides states with funds for direct subsidies, energy audits, technical assistance, and workforce training. States are permitted flexibility to support




Finally, ACESA contains several significant provisions for energy efficiency retrofits originally put forth by Rep. Ed Perlmutter (D-CO) in H.R. 2336, the Green Resources for Energy Efficient Neighborhoods Act, including:

Assisting in the development of location- and energy-efficient mortgages by develop-ing and recommending model mortgage products and underwriting guidelines, and by facilitating the development of green banking centers that will provide information to customers who wish to seek information regarding such mortgages and similar loans.

Directing Fannie Mae and Freddie Mac to develop loan products and flexible under-writing guidelines to facilitate a secondary market for location- and energy-efficient mortgages for very low, low- and moderate-income communities that facilitate energy efficiency, renewable energy improvements or both.

Establishing incentives for mortgages for energy-efficient multifamily housing.

Requiring residential and non-residential buildings owned by the Department of Housing and Urban Development to comply with energy-efficiency standards, including those set forth by ASHRAE, the American Society of Heating, Refrigerating and Air-Conditioning Engineers and the 2009 International Energy Conservation Code, which are the two prin-cipal recognized standards for commercial and residential building efficiency.

Establishing a residential energy efficiency block grant program for single-family or multi-family housing.

Requiring that federally related transactions appraisers must consider any renewable energy sources, energy efficiency or energy conserving improvements or features of the property.

Establishing a revolving loan fund for states and Indian tribes that allow for 10-year loans to be made for renewable energy sources and energy efficiency improvements for structures.

Authorizing HUD to guarantee the repayment of green portions of eligible mortgages pertaining to the new construction of single or multi-family housing or sustainable building elements for housing units.

The numerous provisions contained in the Green Resources for Energy Efficient Neighborhoods Act are valuable contributions to a larger strategy of market transforma-tion, but most of them are incremental refinements to existing housing market architec-ture, rather than drivers for dramatic innovation.

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ACESA introduces a new federal regulatory approach to drive adoption of renew-able energy and energy efficiency by utility companies. The Combined Efficiency and Renewable Electricity Standard, or CERES, requires utilities to obtain 20 percent of their electricity from clean, renewable energy by 2020. Utilities must meet 5-to-8 percent of the total 20 percent through energy efficiency gains, defined as reductions in energy consump-tion relative to business-as-usual projections. Most likely, much of this energy savings will be obtained in the industrial and commercial sectors, where large efficiency gains are readily available and easier to access from large facilities than from small and heteroge-neous buildings. Innovative tools for aggregating residential and small commercial energy efficiency are being developed that may ultimately increase the ability for these sectors to contribute more significantly. But ultimately, a more ambitious and independent Energy Efficiency Resource Standard is needed, as explained later in this section.

ACESA also creates the Clean Energy Deployment Administration, or CEDA, a public “green bank” established to serve as a government-owned independent corporation.35 Authorized for an initial capitalization of $7.5 billion, CEDA will support the private capital market by offering access to affordable financing for accelerated and large-scale deployment of clean-energy and energy-efficiency technologies. CEDA includes as one of its stated goals to support the “sufficient availability of financial products” to encourage and enable the private sector to make energy efficiency improvements in residential, com-mercial and industrial settings.

CEDA will provide support in the form of direct loans, letters of credit and loan guaran-tees. Significant attention is given to the development of breakthrough technologies, yet the effort can also provide important capital for deployment of energy efficiency projects. The creation of this new entity will significantly help overcome barriers to project finance resulting from the collapse of credit markets and will offer new opportunities for establish-ing innovative energy efficiency financing mechanisms.36

CEDA credit support includes a wide-ranging toolbox that will assist states, localities, and the private sector in rolling out innovative mechanisms to finance building energy efficiency retrofits, including municipal bonds, utility loans with on-bill repayment, and commercial banks more inclined to provide loans for retrofits once CEDA lowers the tech-nology risk associated with a lack of historic performance data.

Notably, access to all forms of direct support from CEDA are contingent on the bor-rower providing reasonable assurances that the construction work being financed will pay prevailing wages and adhere to a set of labor standards established by the Secretary of Labor according to existing statutes.38 As is the case with REEP, CEDA ensures that public dollars are being utilized to build a high-road economy that engenders widespread social benefits and contributes to long-term economic development.




the Multifamily and Manufactured Housing Energy Efficiency Grant Program for state and local governments or non-profits to establish and work to promote efficiency pro-grams in this sector as well.

Other sections of the bill support retrofits by improving the quality and availability of performance data for building energy efficiency. Section 281 attempts to bolster build-ing data gathering by improving the Residential and Commercial Energy Consumption Surveys, and improve information on comparative energy use. Among other things, Section 282 directs the Secretary of Energy, within 2 years of enactment, to promulgate uniform rules for documenting building energy savings and avoided greenhouse gas emissions from retrofits programs.

ACELA also includes a “Green Bank” or Clean Energy Deployment Administration provi-sion similar to the one in ACESA, with some differences in authority and institutional structure. One notable strength of the House proposal is that it creates an independent agency housed outside of the Department of Energy. This structure would likely speed deployment of projects. In addition, the House version specifically ensures that invest-ments will flow to a diverse array of technologies, further encouraging energy efficiency project development.

With several other committees working on global warming legislation and Senate leader-ship not calling for floor action before October 2009, there remains a significant window of opportunity to influence the final content of the Senate bill, which could be improved or expanded upon in important ways. Specifically:

An independent Energy Efficiency Resource Standard of 15 percent by 2015 could eas-ily be justified, based on the cost-effectiveness of energy efficiency as a carbon emission reduction strategy, and would be very helpful in rapidly driving conservation and effi-ciency opportunities. A recent report by the American Council for an Energy-Efficient Economy found that such a standard would yield 222,000 net permanent quality con-struction and manufacturing jobs in addition to preventing the emission of 262 million metric tons of greenhouse gas emissions�the equivalent to taking 48 million cars off the road.39 A guaranteed demand for these projects would have real benefits in providing certainty and security to lenders and investors.

Local electric utilities are currently the recipients of 35 percent of all free carbon emis-sions allowances. They could be required to dedicate a significant share of this money to energy efficiency programs approved by State Public Utility Commissions or established through the states. ACESA currently requires that natural gas utilities and home heating oil, propane and kerosene distributors use one third and one half, respectively, of their allowance allocation for cost-effective energy efficiency programs to reduce overall fuel costs and lower consumer energy bills. Using widely accepted estimates, this requirement will result in a $3 billion annual investment by natural gas utilities and another $1 billion

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The American Clean Energy Leadership Act

As passed out of the Senate Energy and Natural Resources Committee, ACELA includes three provisions critical to market transformation, and is a very strong bill in its offer-ings for building efficiency retrofits. However, like ACESA, ACELA is missing a few key policies necessary to dramatically change the rules of the game. These missing pieces are articulated after this summary of the legislation.

The State Energy Efficiency Retrofit program, or SEER, authorizes competitive grants to states to implement residential and commercial retrofit programs. For the residential sec-tor, the program provides for grants of $1,000 to homeowners who undertake prescribed efficiency improvements that result in 10-percent reductions in energy use and $2,000 for 20-percent reductions, based on a list of energy savings measures determined by the Secretary of Energy. If the homeowner pursues a verifiable, performance-based approach, the grant award increases to $3,000 for 20-percent reductions and up to $12,000 or 50 percent of the total retrofit cost for achieved savings above 20 percent. Savings must be documented using approved whole-house simulation software, or through a test-in/test-out�before and after�HERS Index measurement. For quality-control purposes, at least through year one, 15 percent of performance-based retrofits are subject to third-party verification. Contractors must achieve a level of certification determined by the EPA administrator in consultation with the Secretary of Energy.

ACELA establishes a similar program for commercial retrofits, providing grants of $0.15-$3.00 per square foot for energy savings of 20-to-50 percent�slightly higher than provisions found in ACESA. Funding for both the residential and commercial retrofit grant programs would be evenly split, and the authorization is based on “such sums as are necessary” for the years 2010-2015. However, since the Senate has yet to determine the allocation of funds from carbon emission credits for ACELA, the actual funding available for the SEER program remains to be determined.

Section 266 of ACELA creates the Home Energy Retrofit Finance Program that autho-rizes grants to states to capitalize revolving loan funds to finance residential retrofit projects directly through interest rate buy-downs�not more than 20 percent�or direct funding or other financial support. To qualify for these grants, states�or the qualified program delivery entity of their designation�must establish a method for homeowners to pay back loans over time, through such techniques as property tax bill payback, energy utility programs that offer “on-bill” financing, as well as traditional financing. In general, this home retrofit finance program helps incentivize states to build the financing and cost-recovery infrastructure necessary to deliver effective and sustainable retrofit programs.

Also of significance is that ACELA authorizes $1.7 billion per year from 2011 to 2015 for the Weatherization Assistance Program (Section 251) for low-income households, and $250 million per year to the State Energy Program (Section 255). Section 242 establishes




Recommendations for the executive branch

Beyond the specific legislative policies listed above, there are a number of immediate actions that could be undertaken by executive branch agencies to support a national pro-gram of building retrofits. Strong White House leadership is needed to coordinate across agencies, starting with a concerted push for energy efficiency deployment and financ-ing. The White House should establish a Presidential Task Force on Low-Carbon Energy Infrastructure and Economic Transformation, prioritizing cost-effective energy efficiency in the built environment, and supporting this commitment with the full engagement of all Cabinet agencies. Other policies that could be coordinated through this White House Task Force are included below.

These policy recommendations are organized into five discrete categories, each represent-ing an unmet need for scalable solutions to build a sustainable energy-efficiency market. These include:

Technical assistance and capacity building.Financing and cost recovery.Performance standards and quality assurance.Smart regulations to reform the energy market.Workforce development.

A successful program of market transformation requires that progress is made on all tracks simultaneously. For instance, policies to dramatically increase demand for energy efficiency services�such as new consumer incentives�must be balanced with financing tools and new utility regulatory regimes sufficient to allow the retrofit industry to become established. Scaling up demand too rapidly before the product delivery infrastructure is in place could lead to consumer dissatisfaction and a poorly functioning market. In the past, these “chicken-and-egg” problems have led to stalemate and inaction.

Technical assistance and capacity building

Successful state efficiency programs such as leading programs in California, New York, and Texas require a great deal of expertise and human resources to develop, implement, and maintain. Many states simply do not have the capacity or dedicated resources to capture the potential efficiency opportunity.

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by oil, propane, and kerosene distributors. A one-third requirement for electric utili-ties would result in an additional annual investment of $10 billion, enough to create an additional 125,000 full-time-equivalent direct and indirect jobs and finance one million whole building retrofits, assuming an average $10,000 investment per retrofit.

Link federal financial support for state and local energy efficiency efforts including techni-cal assistance and other retrofit incentives to: high standards for workforce training and certification, contractor accreditation, and job quality; measurement, monitoring and veri-fication of retrofit performance data; and access to utility usage data. Creating a sustainable national market for energy efficiency, and standing up a high-quality industry to serve this market, will require a policy architecture that is developed deliberately, with high standards and built-in access to good data established at the outset. ACESA goes further than ACELA in these regards, but whatever legislation emerges from the Senate floor or House-Senate conference should be stronger still.

Include provisions for accelerated depreciation, investment tax credits, and other incentives for smart meters, advanced HVAC, and other energy-efficiency technology, to accelerate adoption of advanced energy-saving technology, particularly in the com-mercial sector. Incentives of this nature are effective at encouraging upgrades to more efficient equipment, particularly in a time when many businesses are reluctant about making major capital improvements.

The Long Island Green Homes Initiative in Babylon, New York is a resi-

dential energy-efficiency program that provides retrofits at no upfront

cost to homeowners. When a resident chooses to participate in the

program, an accredited energy auditor performs an evaluation of the

house. The resident receives a report on how their home uses energy,

what retrofit measures would reduce energy waste most cost effective-

ly, and an estimate of the savings the homeowner could expect.

The owner then chooses the improvements they want. A Building

Performance Institute-accredited private contractor performs the work,

and the town pays the contractor from its solid waste fund, which

creatively expands the definition of waste to include carbon emissions.

Homeowners then repay the town in monthly installments on their

municipal services bill through a benefit assessment on the property.

These monthly payments are typically lower than the energy savings, re-

sulting in a positive cash flow to the resident. And the benefit assessment

stays with the property when it is sold, thus overcoming the challenge of

owner transience.

Long Island Green Homes




for retrofits are typically not first-lien loans�mortgages are�but rather second-lien or perhaps even third-lien loans, which translates into higher borrowing costs.

This problem is further exacerbated by the current conditions in the credit market, where lenders are reluctant to lend to anyone but the most creditworthy and where lenders can-not sell these loans to institutional investors in the secondary market. Property tax liens programs such as the Property Assessed Clean Energy program described on page 23 appear particularly attractive, because they overcome the lien barrier and dramatically reduce the risk for the lender

The administration should open and accelerate a dialogue to address issues and ques-tions surrounding the implementation of such a program on a nationwide scale for all stakeholders. Within this dialogue, the Department of Housing and Urban Development should commit to examining underwriting standards so that buildings with efficiency investments financed through property tax liens do not become a separate and compli-cated class of assets that investors try to avoid.

Because the potential market for retrofit financing is much too big to be funded solely through a government effort, the federal focus needs to be on credit enhancements to reduce risk for private investors. The federal government should establish an independent entity to lower the cost of capital and risk involved with any of these programs by granting access to low-cost government financing or loan guarantees.

The Clean Energy Deployment Administration, or CEDA, proposed in both the House and Senate energy and climate bills is a good first step in this direction. CEDA is a government-owned independent bank that would provide the type of financing described above, along with some limited direct lending. Congress should adopt the House proposal to set the bank up as an independent entity and capitalize the effort with at least $10 bil-lion. Energy efficiency projects, which have development timelines measured in months rather than years for renewable energy projects, should have priority status within the CEDA approval process.

Given that the fate of clean-energy legislation in Congress is unknown, the Department of Energy should reexamine its existing loan guarantee program established under Title XVII of the Energy Policy Act of 2005, the department should identify ways it could be employed to provide credit support for private financing of energy-efficiency retrofit programs.

The administration and Congress should also amend federal mortgage rules to capture the value of energy efficiency. As part of new banking rules now being developed, banks should adopt new mortgage underwriting criteria to include energy and transportation costs so that the value of energy efficiency is fully captured in every mortgage. Buyers purchasing energy-efficient homes should have their lower monthly energy costs reflected in the amount they are allowed to borrow�as provided by Fannie Mae�the Federal Housing Administration

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This problem is exacerbated by the economic downturn, which is severely crimping state fiscal resources. The federal government could play an extremely useful role in facilitat-ing the transfer of resources, tools, and public models to state energy offices, utilities, and other intermediaries to help build stronger institutions across the nation and establish common protocols and better monitoring and quality assurance. We have two specific recommendations for the administration:

Establish a “National Energy Efficiency Advocate” within the Department of Energy or jointly with the Environmental Protection Agency to provide technical assistance to state and local stakeholders. Many utility commissions, energy offices, and other policymakers do not have the time or resources to gather and analyze detailed energy consumption data or to digest and enact the many examples of best practices available to them. Yet this data will be critical to assessing the success of building efficiency measures and making the case for investment in them. A national efficiency advocate could provide a dynamic link between federal government resources and policymakers at the local, state, and regional level through:

Economic analyses.Information technology tools to track energy savings and greenhouse gas emissions.Legislative and regulatory templates and implementation road maps.Innovation success stories.

Develop a model state energy-efficiency planning framework, based on the best practices employed by leading states. Funding should be provided to the states to develop their plans according to protocol designs and data standards that will allow the 50 individual outputs to be assembled into a single national plan.

Financing and cost recovery

Two key barriers to scaling-up demand for retrofits are high up-front project costs and a lack of access to low-cost financing. The federal government can help address this issue by lower-ing the risk and cost of project financing, supporting the proliferation of innovative financing and cost-recovery mechanisms at the state and local levels, and convening a broad dialogue with the financial services and insurance communities on establishing the information base needed to mainstream efficiency-related financial and insurance products.

There are a number of innovative ways to help consumers finance the up-front costs of a retrofit, including performance contracting, on-bill or on-meter financing, retail install-ment contracts, and incorporating efficiency retrofits into new mortgage financing.

Currently, energy efficiency retrofits require up-front capital that, in most cases, requires homeowners and businesses to seek loans. Lending institutions require that their invest-ment be appropriately collateralized to reduce their risk in the transaction. However, loans




The administration should also work with the appraisal industry to update the Uniform Standards of Professional Appraisal Practice to take the increased value resulting from a building retrofit into greater account. The administration should simultaneously work with Congress and the commercial banking industry to identify other regulatory require-ments to amend, in order to accommodate greater consideration of efficiency in building value, including maximum loan-to-value limits, debt service coverage tests, and the use of third party appraisals.

There is a very real chance that over the next year or two the crisis in commercial real estate could metastasize and seriously threaten the tenuous stability of the U.S. economy., The Obama administration, in this case, is sure to feel pressure to extend a lifeline to com-mercial lenders and/or owners. If the administration does move ahead with any type of federal assistance, then it should capitalize on the opportunity to leverage major energy savings from commercial buildings. There is a diversity of policy options available that could all be tied to an energy efficiency retrofit�from interest rate subsidies on refi-nanced mortgages to loan guarantee programs to instituting a temporary moratorium on commercial foreclosures.

Regardless of the specific intervention, the additional marginal costs incurred by the government and building owner to finance the retrofit will be far outweighed by the net economic benefit of these capital improvements and reduced operating expenses over time, not to mention the long-term benefits of efficiency savings for energy security, pub-lic health, and climate stability.

Performance standards and quality assurance

National policy has a critical role to play in reducing complexity and uncertainty in the retrofit market, improving transparency for consumers, and providing businesses with a clear set of expectations. The development of a national set of protocols and standards to govern the retrofit industry is critical to establishing the clear and level playing field neces-sary for the market to function properly.

Thus, the administration should work with stakeholders to codify a basic protocol for energy audits, and national standards for building efficiency rating systems, worker technical certifications, contractor accreditation, verification of energy savings, and assessment tools for cost-effectiveness of different retrofit measures. In fact, the imperative for a uniform set of evaluation, certification, performance, measurement and verification standards is so great that adoption of these nationwide standards at the state and local levels should be a precon-dition to receiving incentives and other supports within a national retrofit policy.

The administration should also establish national standards for energy efficiency labeling of buildings. As the Energy Star program has demonstrated for appliances, a nationally

36

and other housing agencies. Some of these changes are reflected in the GREEN Act provisions in ACELA, and should be added to the Senate bill.

Any large-scale restructuring of home mortgage loans should include a trigger for whole-home energy audits and retrofit financing as a part of the mortgage refinancing process. Such a measure would improve the long-term value of the assets, thus offering greater security to lenders even as it reduced operations and maintenance costs creating greater affordability for homeowners.

Insurance companies have had a difficult time evalu-ating how energy efficiency improvements affect the risk profile of a building�yet another example of market failure. The administration should engage the insurance industry and lead an effort to locate

and consolidate all performance data on high efficiency buildings, including average energy savings, emissions reductions, changes in vacancy and lease rates, and other information, to provide the insurance industry with adequate actuarial data to appropriately reflect the value of energy efficiency in its loan products. This effort will also help reveal precisely how much building energy efficiency reduces risk and lowers operating costs, and how the mar-ket value of efficient buildings compares to that of comparable yet inefficient building stock.

In addition, the administration should ask Congress to create incentives for time-of-sale energy audits and energy consumption disclosures to make energy data more available and to facilitate energy use-based valuation adjustments. These data should also be pro-vided to insurance companies to promote the value of building energy efficiency in setting terms for their insurance products.

Finally, the administration should work with Congress to establish new banking rules to allow energy efficiency investments to count as equity on a dollar-for-dollar basis in the recapitalization of commercial buildings. As commercial property values fall in the current financial environment, banks are demanding that building owners increase their equity in the property. Commercial landlords should be allowed to treat efficiency investments as increases in their equity.

To help ameliorate pressures in the commercial loan market�with at least $300 billion of commercial-multifamily loans set to mature later this year and in 2010�Treasury and the Internal Revenue Service should take administrative action to mitigate the tax impedi-ments to commercial mortgage loan modifications, provided that building owners agree to perform cost-effective efficiency retrofits�those with a 5-to-10 year payback�to enhance the value and reduce the operating costs of their buildings

Transforming the market for energy efficiency retrofits

20002002

20062010

20142018

20202004

20082012

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Retrofit market potential through “Rebuilding America”Business as usual investments

in energy efficiency retrofits, including ARRA


reProduCed From: http://www.americanprogress.org/issues/2009/08/pdf/rebuilding_america.pdf.reProduCed From: http://www.americanprogress.org/issues/2009/08/pdf/rebuilding_america.pdf.


of energy savings and cost-effectiveness, and establish nationwide standards for states and localities to follow in order to access federal grants or credit enhancement programs. Linking access to federal resources to adoption of national standards will motivate rapid uptake of the new standards and integration of these tools into existing local retrofit programs.

Utilities companies also have roles to play. They should be required to provide energy consumption data to federal agencies and to consumers to help further refine energy efficiency standards around the country. The availability of energy usage data is funda-mental for consumers in making the retrofit investment decision as well as being central to any monitoring and verification scheme. Utilities are often reluctant or unable to release this information, for business, technical or legal reasons. When data is available, it is often provided in cumbersome formats that are difficult to for consumers to manipulate and use.

What’s more, the type of data and metrics available varies across jurisdictions and some-times within service territories, making it very hard for consumers to understand and make informed decisions about their energy use patterns. Utilities and regulators will need to address a number of issues including customer information system functionality, customer privacy and security issues, data quality standards and appropriate metrics, cost recovery policies, smart meter deployment, and standardization of electronic transmissions.

The Environmental Protection Agency recently published a report outlining the steps required to improve energy efficiency data collection and sharing.40 The EPA should work with the Department of Energy and the national labs to evaluate existing best practices in customer data sharing and work with utilities, regulators, and other stakeholders to create a technical and legal roadmap to standardize the type and format of data shared. This effort should be accompanied by federal support to help utilities, municipals, coops, and other entities that currently hold customer data as they convert to new data standards.

Smart regulations to reform the energy market

As soon as it reaches his desk, President Obama should sign a robust clean-energy and climate legislation that puts a price on pollution and invests in solutions.

This legislation should include a robust national energy efficiency resource standard of 15 percent by 2015 that is “approach neutral” and allows states to meet the efficiency targets in the manner best suited to their unique conditions. In most cases, the most effective way to do so will be to change utility regulations to provide an incentive for pursuing all cost-effective efficiency at a level that reflects the benefit to society. DOE would provide guidance and assistance to regulators and utilities through the new efficiency advocate office to facilitate the transition, with particular focus on programs that take a “whole building” approach and that aggregate individual retrofit projects to achieve economies of scale, reduce investor risk, and provide an easier interface with contractors.

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recognized performance standard can significantly increase customer confidence and brand awareness of energy efficiency, driving increased market penetration.

Fortunately, even in the absence of a national retrofit policy architecture, many of these national standards already exist, having been developed over time through broad col-laboration between industry, government, and public stakeholders. The Home Energy Rating System, or HERS index is developed and administered by the Residential Energy Services Network, and is widely utilized across the building industry by certified home energy raters to measure the relative energy efficiency of residential structures. And, while not quite as ubiquitous as HERS, RESNET also maintains the National Home Energy Audit Standard, which provides a framework for the actual audit process. Meanwhile, the Building Performance Institute provides nationally-recognized certifications for all types of building efficiency technicians, and accreditations for contractors.

The Home Performance with Energy Star program, which is a joint program of the Environmental Protection Agency and the Department of Energy, is a nationally accepted model for retrofitting existing homes, incorporating contracting and quality assurance standards, including third-party verification, and an active network of accredited contrac-tors. Home Performance with Energy Star represents a successful program and brand in the home retrofitting industry and is a tested existing system for retrofitting homes. The administration should consider basing national standards on the Home Performance with Energy Star model, while continuing to strengthen and improve upon it.

The widespread acceptance of RESNET and BPI certifications and accreditations, and the Home Performance with Energy Star program, are the result of years of successful coop-eration between diverse stakeholders in the industry, and their standards should form the backbone of any formal set of national retrofit standards developed by the administration.

The Obama administration also should create and disseminate nationwide methodolo-gies for measuring and verifying energy savings and assessing cost-effectiveness. There has been a proliferation of state and local methodologies to evaluate the effectiveness of efficiency investments in the absence of a nationwide approach to building retrofits. Yet programs vary widely in their quantitative rigor, data inputs, assumptions and reporting timeframe. A lack of standard measurements makes it difficult or impossible to do any comparative studies or performance benchmarking across jurisdictions. Without national standardization, the cost and time commitment of understanding and complying with dif-ferent definitions of “cost effective” and measuring real energy savings increases exponen-tially as contractors expand their operations. This hampers efforts to operate nationally. A national standard will also provide needed consumer awareness and confidence in retrofit savings, to help bolster and grow demand for energy efficiency services.

The Department of Energy (through the national labs) or the National Institute of Standards and Technology should evaluate existing methodologies for measurement and verification




Workforce development

The administration should be sure to enforce and periodically update national certifi-cations for requisite skill sets in the retrofit workforce. Consistent national standards and certifications will be easier to enforce, improve confidence in the skill level of the workforce for consumers and employers, and increase the marketability of workers who earn them.

To help meet the demand for a skilled and certified workforce, the Obama administration should work with Congress to establish national guidelines for worker training programs. In order to ensure a steady flow of qualified workers to service the retrofit industry at all levels, the Department of Labor, Housing and Urban Development, the Small Business Administration, the Department of Agriculture, and the Department of Commerce’s Economic Development Administration and Minority Business Administration and the Department of Energy should collaborate to identify existing successful training models and link federal support to their adoption.

Training the efficiency workforce starts by building a pool of candidates with basic job skills. Programs should encourage collaborative workforce development through promotion, outreach, recruitment, and pre-apprenticeship programs with an emphasis on successful public-private workforce training partnerships with community-based organizations. Promoting labor-management training programs can foster career ladders for incumbent workers in the retrofit industry. Training models should also offer “path-ways out of poverty” for disadvantaged workers and others entering the clean energy workforce, including providing a pipeline into formal placement in registered, jointly-administered apprenticeships.

Training programs must be coordinated with job placement efforts so that trainees have a reasonable expectation of employment once training is complete. Where demand for workers is outpacing training, programs should encourage high-quality on-the-job train-ing so workers can “learn while they earn.” The use of community retrofit workforce agree-ments with enforceable construction career policies should be encouraged, as well as local hire rules, collective bargaining and other tools to ensure the industry creates long-term careers rather than short-term jobs.

Investments in education are critical to developing a skilled workforce but also to foster-ing innovation in the science of building efficiency. The administration should provide universities, colleges, and community colleges with resources to expand their engineering department course offerings to include curricula associated with developing, installing, operating, and maintaining energy efficiency technologies as well as measuring and verify-ing energy savings. Resources should be allocated to land grant colleges to train engineers in the building efficiency issues unique to rural communities.

40

The administration also should review how governors have fulfilled their commitments, as a condition of receiving funding under the American Recovery and Reinvestment Act, to implement policies that align utilities’ financial incentives with helping their customers use energy more efficiently. In the meantime, the Federal Energy Regulatory Commission should explore its ability to direct Regional Transmission Organizations and Independent Systems Operators, which coordinate the movement of wholesale of electricity across several states, to include demand response and energy efficiency assets in forward capacity market auctions for energy supply.

About half of U.S. electricity is consumed in areas covered by a Regional Transmission Organization or an Independent Service Operator that ensures adequate supply to meet demand by holding periodic auctions for future electricity capacity. Enabling aggregated quantities of demand response and energy efficiency to participate in these auctions could transform the electricity market landscape, because these “resources” almost always cost less than fossil fuel generation and are readily available throughout the country.

Recently, New England ISO and PJM Interconnection�a Regional Transmission Organization�have allowed demand response and energy efficiency assets to be treated as a part of the auction on equal footing with traditional power generation. Both efforts resulted in large amounts of energy efficiency and demand response being committed and substantially lowered the overall price to acquire electricity by underbidding the price to deliver most new and some existing generation. FERC should direct the RTOs and ISOs to replicate these models in their forward capacity markets and provide the technical and financial support necessary to adapt this practice to specific regional circumstances.

Specifically, FERC, with additional authority provided by Congress if needed, should expand and build upon FERC’s Order 719 to require that all cost-effective demand-side capacity be deployed before any new capacity is built thereby putting energy efficiency on an equal footing with new generation in utility planning. Regulatory processes should allow Aggregators of Retail Customers�whether utilities, non-profit energy efficiency utilities, or other institutions�full access to compete in capacity markets on an even foot-ing with traditional electricity suppliers, and allow other entities such as cities, or other third parties that aggregate residential and small business retrofit projects to participate in organized wholesale energy markets to appropriately recognize the ability of energy efficiency and demand management to play a robust role in meeting energy demand.

FERC should also call on state regulators to codify an electricity loading order that priori-tizes cost-effective energy efficiency investments to meet increasing anticipated demand. Currently, most state regulators turn initially to the cheapest source of new generation to meet growing demand for power. Energy efficiency is rarely even given equal weight as a resource. Switching this logic, and encouraging state regulators to proactively pursue the enormous potential of cost-effective energy efficiency in buildings and equipment, could have major transformative effects on the market for efficiency.




The last word

The American people today face an economy buffeted by sustained job losses, contracting consumer demand, declining purchasing power, and tight credit conditions. The Great Recession, now 20 months old and counting, is probably at least as frightening to the aver-age American as the gathering threat of global warming. Yet the prospect of rebuilding our homes and businesses to capture the gains from energy efficiency provides a rare oppor-tunity to restore our economy by reinvesting in our communities while simultaneously reducing global warming pollution.

The United States can build a low-carbon economy by harnessing energy efficiency as our “first fuel.” The cheapest and cleanest source of power is the energy we never have to use. By retrofitting existing buildings with the latest energy-saving materials and appliances we can cost-effectively reduce waste and pollution while jump-starting economic recovery, creating good jobs, reinvigorating our manufacturing sector, and providing consumers with real energy cost savings. These same steps will help ensure a safer, healthier, and more secure future by deploying the lowest-cost strategy for reducing carbon emissions.

In short, energy efficiency makes the United States more productive, more competitive more secure and more prosperous. Yet without the public policies described in this report, the private sector acting alone will not invest to realize the clear private and public benefits of deep and comprehensive energy efficiency retrofits, and the harm we are doing to the global climate will continue unabated. Today, America needs immediate and decisive public action. This includes a strong roll for federal government leadership from both Congress and the Obama Administration, including fixing incentives for capital invest-ment, improving information flow to the market, and finally putting a price on global warming pollution. Over time, however, the public-sector role in jump starting these new energy efficiency markets can be reduced as the private sector develops durable business and finance models and a new and vibrant industry steps in to create good jobs

“Rebuilding America” for a clean energy future.

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Existing federal weatherization programs are a good point of entry for apprenticeships in building energy efficiency retrofitting trades. Programs should ensure current weatheriza-tion workers enjoy highest worksite standards and encourage workers to continue training and move into more sophisticated and higher-paying retrofitting markets, and careers in the building and construction trades

Any national guidelines for workforce training must be supported by and tied to consis-tent and adequate funding to facilitate implementation. The administration should work with Congress to establish a permanent funding stream for the Green Jobs Act authorized in the 2007 Energy Independence and Security Act, and to reauthorize the Workforce Investment Act this year.




Tax Lien: A legal claim imposed on a property to secure the payment taxes. Tax liens transfer with the property, meaning that the new property owner becomes responsible for payment even if the tax obligation was incurred by a prior owner.

National Home Energy Audit Standard: A standard developed by RESNET to determine energy performance of existing homes through uniform and comprehensive home energy audits. The standard defines a framework for a home energy audit process performed by an accredited provider.

Negawatt: A term coined by Amory Lovins to describe energy saved through conservation and efficiency as an alternative to building new generation and transmission capacity.

On-Bill Financing: A method of retrofit financing in which the utility provides a loan that is then serviced via the customer’s monthly utility bill.

Public Benefit Funds: State funds dedicated to energy efficiency and renewable energy projects. Funds are typically collected through small charges on the bill of all electric or natural gas customers or through specified contributions from utilities.

Regional Transmission Organizations: Similar in function to an Independent Systems Operators (see above), but with a larger jurisdiction.

Residential Energy Services Network, or RESNET: An industry not-for-profit membership corporation that maintains standards for building energy efficiency rating systems and provides energy rater and home energy auditor certifications.

Retrofit for Energy and Environmental Performance program, or REEP: A program established in ACESA that allocates funding for residential and commercial retrofits for both prescriptive and performance-based measures.

State Energy and Environment Development Accounts, or SEED: Accounts established in ACESA that allocate funding to states for a wide range of energy efficiency programs, includ-ing building codes, retrofit incentives, low-income energy efficiency programs and the expansion and deployment of renewable energy technologies.

State Energy Efficiency Retrofit Program, or SEER: A program established in ACELA, similar to REEP that allocates funding for residential and commercial retrofit programs for both prescriptive and performance-based measures. SEER includes slightly higher incentives for commercial businesses.

Tariffed Installment Payments: A form of on-bill financing that ties a repayment obligation to the utility meter rather than the individual customer. This method of financing avoids the issue of building-owner transience by transferring the loan to the new owner if the property is sold.

Weatherization Assistance Program: A program run by the Department of Energy to increase the efficiency of dwellings oc-cupied by low-income Americans through home weatherization; thereby reducing energy bills and improving health and safety.

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Glossary

Aggregators of Retail Customers: Businesses that pool efficien-cy or demand side- management capacity of smaller retail loads into a single larger account in order to bid the availability into organized energy markets, including forward capacity markets.

American Clean Energy and Leadership Act, or ACELA: Legislation passed out of the Senate Committee on Energy and Natural Resources on June 17, 2009, that contains a number of energy efficiency-related provisions, including the Clean Energy Deployment Administration and retrofit incentives for residential and commercial buildings.

American Clean Energy and Security Act of 2009, or ACESA: A comprehensive clean-energy and climate bill passed by the House or Representatives on June 26, 2009, that includes, among other things, renewable energy and energy efficiency standards for utilities, retrofit incentives for residential and commercial buildings, and a cap-and-trade program to reduce greenhouse gas pollution.

American Recovery and Reinvestment Act of 2009: Eco-nomic stimulus package signed into law on February 17, 2009, that includes funds for building energy efficiency, renewable energy, and state and local clean-energy programs.

Building Performance Institute: Nationally-recognized organization that provides workforce certification, contractor accreditation, and quality assurance verification.

Clean-Energy Assessment Districts: A method of financ-ing retrofits in which a special municipal financing district is established that allows individual building owners to repay their loan over an extended term via an assessment on their property tax bill.

Clean Energy Deployment Administration: Two different ver-sions of CEDA have been proposed in ACESA and ACELA, that establish an independent, government-owned “green bank” to provide direct loans, letters of credit, loan guarantees and other financial instruments to support clean energy projects.

Energy Efficiency Resource Standard: An Energy Efficiency Resource Standard is a market-based mechanism to encourage more efficient generation, transmission, and use of electricity and natural gas. An EERS requires utilities to reduce demand at a certain percentage below business-as-usual growth projections.

Energy Service Companies: Businesses that “develop, install, and arrange financing for projects designed to improve the energy-efficiency and maintenance costs for facilities over a 7- to 20-year time period. Energy service companies gener-ally act as project developers for a wide range of tasks and assume the technical and performance risk associated with the project.”41

Forward Capacity Market: A market used by regional transmis-sion organizations and independent system operators “to purchase sufficient capacity for reliable system operation for a future year at competitive prices where all resources, both new and existing, can participate.”42

Green Jobs Act: Legislation passed as part of the Energy Independence and Security Act of 2007 to help train American workers for jobs in the renewable energy and energy-efficiency industries, with resources targeted specifically at underserved populations. The Green Jobs Act has yet to be funded, although $500 million in training money consistent with the principles of the Green Jobs Act was provided in the American Recovery and Reinvestment Act.

Home Energy Rating System: The HERS Index is a building efficiency scoring system established by the Residential Energy Services Network, or RESNET. The lower a home’s HERS In-dex, the more energy efficient it is in comparison to the HERS Reference Home (based on the 2006 International Energy Conservation Code).

Home Performance with Energy Star Program: This is a joint program between the U.S. Environmental Protection Agency and the U.S. Department of Energy which offers a compre-hensive, “while house” approach to home energy-efficiency. The program sets standards and provides accreditation to building professionals and has 23 state programs that engage third party auditors to ensure that its quality metrics and being met.

Independent System Operator: An organization that coordi-nates, controls, administers, and monitors nondiscriminatory access to the electric power system, independent from the owners of the generation and transmission facilities. ISOs are formed at the direction or recommendation of FERC and are similar to RTOs but usually cover a smaller area (within just one state).



About the authors | www.americanprogress.org 47

About the authors

Bracken Hendricks works at the interface of global warming solutions and economic development. He is a longtime leader in promoting policies that create green jobs, sustainable infrastructure, and investment in cities.

Hendricks served as an advisor to the campaign and transition team of President Barack Obama, and was an architect of clean-energy portions of the American Recovery and Reinvestment Act. He also served in the Clinton administration as special assistant to the Office of Vice President Al Gore, with the Department of Commerce’s National Oceanic and Atmospheric Administration, and with the President’s Council on Sustainable Development.

He was founding executive director of the Apollo Alliance for good jobs and energy independence and has served as an energy and economic advisor to the AFL-CIO, Pennsylvania Governor Ed Rendell’s Energy Advisory Task Force, and numerous other federal, state, and local policymakers and elected officials. Hendricks’ publications include the book Apollo’s Fire: Igniting America’s Clean Energy Economy, which he co-authored with U.S. Congressman Jay Inslee (D-WA).

Benjamin Goldstein is a Policy Analyst on the Energy Opportunity team at the Center for American Progress. He works on a range of issues related to climate change and energy policy, with a focus on green jobs and building the clean energy economy. Goldstein holds a dual master’s degree in interna-tional affairs and natural resources and sustainable development from American University and the U.N. University for Peace. Originally from California, Benjamin received his bachelor’s degree with high honors from UC Berkeley, where he constructed an interdisciplinary major around issues of international trade and rural development. He is proficient in Spanish and spent two years studying abroad in Central America.

Reid Detchon is Executive Director of the Energy Future Coalition. He is also Vice President for Energy and Climate at the United Nations Foundation. He previously served as Director of Special Projects in Washington for the Turner Foundation; as a principal at Podesta Associates; as the Principal Deputy Assistant Secretary for Conservation and Renewable Energy at the U.S. Department of Energy from 1989 to 1993; as principal speechwriter for Vice President George H. W. Bush; and as a staff member and legislative director for U.S. Senator John Danforth of Missouri.

Kurt Shickman is the Director of Research at the Energy Future Coalition, where he works on issues of climate change, energy efficiency, electric transmission, and natural gas. He was Manager of Financial Planning and Analysis at Federal Realty Investment Trust and has a background in corporate and real estate finance. He earned his Master’s degree from the Johns Hopkins School of Advanced International Studies with concentrations in energy policy and economics.

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Endnotes

1 U.S. Global Climate Change Program, “Global Climate Change Impacts in the United States” 2009.

2 Bureau of Labor Statistics, “The Employment Situation, June 2009” (2009).

3 Joint Economic Committee, “The Subprime Lending Crisis: The Economic Impact on Wealth, Property Values and Tax Revenues, and How We Got Here,” 2007.

4 RealtyTrac, “2006 U.S. Foreclosure Market Report” (2007).

5 RealtyTrac, “2008 U.S. Foreclosure Market Report” (2008).

6 Personal communication with Matt Golden, energy efficiency expert and CEO of Sustainable Spaces, July 9, 2009. Approximately 140,000 homes are weather-ized annually by WAP, see more at http://www.carnegieendowment.org/files/weatherization-final.pdf; Approximately 60,000 are retrofitted by the private home performance industry, although this number is difficult to estimate because many homeowners only undertake small improvements, like installing new windows or replacing old furnaces. But suffice it to say that the whole-house energy efficiency retrofit sector is very small.

7 Nicole Hopper and others, “A Survey of the U.S. ESCO Industry: Market Growth and Development from 2000 to 2006.” (Berkeley: Ernest Orlando Lawrence Berkeley National Laboratory, 2007).

8 Energy Information Association, “Residential Energy Consumption Survey. Table HC2.1” (2005).

9 U.S. Census Bureau, “American Housing Survey for the United States: 2007” (2008).

10 National Association of Homebuilders Research Center, Inc, “The Potential Impacts of Zero Energy Homes Report #EG5049_020606_01,” 2006.

11 40 percent of 111 million residential units, with an average retrofit investment of $10,000, equals $444 billion dollars over 10 years.

12 Energy Information Association, “Consumption, Price and Expenditure Estimates: Price and Expenditures. Tables S2b,” (2008).

13 20-to-40 percent energy savings on a 40 percent retrofit of $200 billion annual residential energy expenditures equals $16–to-$32 billion.

14 Energy Information Agency, “2003 Commercial Buildings Energy Consumption Survey: Table A1. Summary Table for All Buildings (Including Malls)” (2003).

15 Ibid.

16 Pike Research, “Energy Efficiency Retrofits for Commercial and Public Buildings; Table 1.1” (2009).

17 An investment of $10-to-$30 per square foot on 40 percent of 36 billion square feet produces $144 to $432 billion market over 10 years.

18 Bureau of Labor Statistics, “Economic News Release, Table A-11,” July 2009.

19 Robert Pollin and others, “The Economic Benefits of Investing in Clean Energy.” (Washington: Center for American Progress, 2009) .

20 Joel Rogers, “Seizing the Opportunity (for Climate, Jobs, and Equity) in Building Energy Efficiency” (University of Wisconsin-Madison: Center on Wisconsin Strategy, 2007).

21 Federal low-income residential weatherization assistance is currently capped at $6,500 per home (up from $2,500), but cost effective measures frequently justify significantly higher levels of investment.

22 12.5 direct and indirect full-time-equivalent jobs are created per $1 million invested in retrofits. Retrofitting 50 million buildings at a conservative estimate of a $10,000 investment per building would generate $500 billion in investments over 10 years. $500 billion times 12.5 jobs/million produces 6.25 million person-years of employment, which averaged over 10 years equals 625,000 jobs sustained annually.

23 Based on a performance review of existing public and commercial retrofits.

24 National Action Plan for Energy Efficiency (NAPEE), “Vision for 2025: A Framework for Change” 2008.

25 Energy Information Agency, “Consumption, Price and Expenditure Estimates: Price and Expenditures. Tables S2b, S3b, S4b” (2008).

26 Weatherization Assistance Program Technical Assistance Center, “Questions and Answers, Frequently Asked Questions,” available at http://www.waptac.org/si.asp?id=1029 (last accessed July 2009).

27 This is a wide range, but reflects the very low end to the very high end of average savings. Twenty percent energy savings on $1500 annual expenditure equals $300, while a 40 percent savings on $3000 annual expenditure equals $1200. Several local retrofit programs are reporting savings in the upper end of this range.

28 Energy Information Association, “Annual Energy Review 2008; Table 2.1a Energy Consumption by Sector Overview” (2008).

29 “The Building Sector: A hidden culprit” available at http://www.architec-ture2030.org/current_situation/building_sector.html (last accessed July 2009)

30 Energy Information Administration, “An Updated Annual Energy Outlook 2009 Reference Case Reflecting Provisions of the American Recovery and Reinvest-ment Act and Recent Changes in the Economic Outlook” (2009).

31 1 British Thermal Unit is equal to 172 million barrels of oil. See: “Apples, Oranges and BTU” U.S. Department of Energy, Energy Information Agency, available at http://www.eia.doe.gov/neic/infosheets/apples.html (last accessed July 2009)

32 Merrian Fuller, “Enabling Investments in Energy Efficiency: A Study of Programs that Eliminate First Cost Barriers in the Residential Sector” (Burlington: Efficiency Vermont, 2008).

33 See PACE NOW, available at http://pacenow.org/; and Renewable Funding, avail-able at http://www.renewfund.com/.

34 See Efficiency Vermont, available at http://www.efficiencyvermont.com/pages/; and Delaware Sustainable Energy Utility, available at http://www.seu-de.org/.

35 Sections 182-189

36 For more information in the “Green Bank,” see http://www.americanprogress.org/issues/2009/05/pdf/green_bank_memo.pdf

37 Section 188, “Indirect Support.”

38 Section 187 (e)

39 Laura Furrey, Steven Nadel and John Laitner, “Laying the Foundation for Implement-ing a Federal Energy Efficiency Resource Standard” (Washington: ACEEE, 2009).

40 National Action Plan for Energy Efficiency (2008). Utility Best Practices Guidance for Providing Business Customers with Energy Use and Cost Data. ICF Interna-tional, available at www.epa.gov/eeactionplan (last accessed July 2009).

41 “Resources – What is an ESCO?” available at http://www.naesco.org/resources/esco.htm (last accessed July 2009).

42 “Forward Capacity Markets” available at http://www.iso-ne.com/markets/othrm-kts_data/fcm/index.html (last accessed July 2009).



About the Center for American Progress

The Center for American Progress is a nonpartisan re-

search and educational institute dedicated to promoting

a strong, just and free America that ensures opportunity

for all. We believe that Americans are bound together by

a common commitment to these values and we aspire

to ensure that our national policies reflect these values.

We work to find progressive and pragmatic solutions

to significant domestic and international problems and

develop policy proposals that foster a government that

is “of the people, by the people, and for the people.”

Center for American Progress

1333 H Street, NW, 10th Floor

Washington, DC 20005

www.americanprogress.org

About the Energy Future Coalition

The Energy Future Coalition is a broad-based, non-

partisan alliance that seeks to bridge the differences

among business, labor, and environmental groups

and identify energy policy options with broad

political support. The coalition aims to bring about

changes in U.S. energy policy to address the economic,

security and environmental challenges related to the

production and use of fossil fuels with a compelling

new vision of the economic opportunities that will be

created by the transition to a new energy economy.

Energy Future Coalition

1800 Massachusetts Avenue, NW, Suite 400

Washington, DC 20036

Tel: 202.463.1947

www.energyfuturecoalition.org


Acknowledgments

This paper benefitted from the wisdom and expertise of many people. Significant contributions were made by Bob Baugh and Jeff Rickert of the AFL-CIO, Mark Ayers, Bob Ozinga and Jeff Grabelski of the AFL-CIO Building & Construction Trades Department, Betsy Boyle of Ceres, Chris Chafe and Kevin Pranis of Change to Win, Ted Greene of the Laborers International Union of North America, Melissa Bradley of Green for All, Mark Wagner and Anna Pavlova of Johnson Controls, Kate Offringa of North American Insulation Manufacturers Association, Roger Platt of The Real Estate Roundtable, Gerry Hudson of Service Employees International Union, and Stan Kolbe of Sheet Metal and Air Conditioning Contractors’ National Association.

Bracken Hendricks and Benjamin Goldstein wish to thank Stockton Williams of the Living Cities Foundation, Joel Rogers of the Center on Wisconsin Strategy and the Emerald Cities Initiative, Jason Walsh of Green for All, and Matt Golden of Sustainable Spaces. Kate Gordon, VP for Energy Policy at the Center for American Progress, was instrumental in driving the production of this work. Gideon Burdick, a Summer 2009 CAP intern, contributed considerably to the research and drafting process. Lastly, we are indebted to the intelligence, creativity and keen eyes of Ed Paisley, Shannon Ryan and the entire CAP Editorial team.

Reid Detchon and Kurt Shickman gratefully acknowledge the contributions of David Gardiner, Ryan Hodum and Dan Seligman of David Gardiner and Associates, Shelley Fidler of Van Ness Feldman, and Leslie Cordes, Corinne Hart, Mark Hopkins, and Patrick Hughes of the Energy Future Coalition.

a C k n o W l e d G e m e n T s

The Carbon War room would like to acknowledge and thank the following people for their contribution to the success of the Green Capital – Global Challenge Program:

Thanks to and from the Carbon War room Team

ciTy of vaNcouver• MayorGregorRobertsonandhisteamincluding:

• DanaBertrand

• MariaDobrinskaya

• SadhuJohnston

• MikeMcGee

oGlov BusiNess developMeNT iNc.• LindaOglov

cwr ‘recoNNaisaNce’ TeaM• DagmarTimmer

• VanessaTimmer

fd eleMeNT• DonMillar

• GrantDraper

• MikeWilson

• OlgaOrda

• AJGoodman

sTraTeGyplus• LizWarwick

• MicheleLago

• AnneLarsen

vehicle providers:• BCHydrogenHighway

• MuratArmbruster

• PeterBoyd

• TravisBradford

• DavidColt

• AnnDavlin

• DarianRodriguezHeyman

• MarcMorgan

wiTh parTNers:• AutomotiveFuelCellCooperation

• CanadianHydrogen&FuelCellAssn.

• Mercedes-Benz

• FordMotorCompany

• Sacre-DaveyGroup

coNsTellaTioN eNerGy• JoshBaker

peGasus parTNers• GregHorn

NorThcross, hill & ach• CraigHill

eNerGeTics• RossBrindle

carBoN war rooM• Founders

• ExecutiveBoard

ModoKu• NicholasParedes

• TonyPaulson

• EliseRindfleisch

• DavidSchwartz

• JigarShah

• ClaireTomkins

• SaraWalther


n o T e s



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