LEAP is a nonprofit energy services organization with a mission to lead the effort in local communities to implement energy efficient technologies in buildings to promote cost savings for families and businesses, job creation, energy self-reliance, local economic development, and the mitigation of climate change. LEAP’s alliance model is a community-based, public-private partnership.
A guest blog post by Abby Johnson and Josh Doyon, Abacus Property Solutions
You may have heard by now about legislation passed in the 2015 Virginia General Assembly session (and signed into law by Governor McAuliffe) enabling an energy efficiency financing mechanism known as PACE, an acronym for Property Assessed Clean Energy. PACE is an innovative way for commercial property owners to finance energy efficiency and renewable energy improvements in their buildings. In a nutshell, where localities set-up PACE programs, loans provide 100% funding of total project costs by placing a special assessment lien on the property that the owner repays over time as part of his/her tax bill. These PACE loans are typically financed by capital providers who receive the PACE assessment payment via the local taxing authority.
PACE is unique to other kinds of equipment financing in a number of ways including:
From a macroeconomic standpoint, benefits include:
PACE legislation is in some stage of development or adoption in more than thirty states and the District of Columbia, and is already thriving in California, Connecticut, Florida and Ohio. Success stories include the landmark Universal Studios Hilton hotel, which used PACE to finance the energy efficiency portion of a larger upgrade project totaling $12 million. The PACE loan – approximately $7 million – was used to replace aging chillers, install water efficient fixtures, install LED lighting and other measures for an estimated first year savings of $800,000. Another example is a project financed through the Toledo-Lucas Port Authority in Ohio to upgrade the One Maritime Plaza property. The Authority used $1.4 million in PACE financing to upgrade the cooling tower, interior lighting, and hot water pumps, reducing annual electricity usage by 48%.
Although it can be a powerful financing tool for larger, well capitalized assets, PACE provides probably the most value for the less comprehensive projects – too small to obtain competitive financing from larger banks or ESCOs and often unable to self-fund the upfront costs. Projects under $250k and even under $100k are coming online all the time for measures such as solar plus LED that provide a great return on investment.
PACE is soon to be implemented in Virginia, as the legislation will go into effect on July 1. Stakeholders in both the public and private sector will begin developing underwriting criteria catered to Virginia. A cohesive “PACE in a box” system that would provide the essential tools for localities to adopt PACE will soon be under development. The coming months will prove to be a busy time in the world of energy efficiency and renewable energy as Virginians will be able to realize the significant benefits that PACE can have on their buildings, portfolios, and communities.
At Old Dominion Electric Cooperative, we are always exploring and evaluating new ways to operate in harmony with the environment. ODEC’s energy innovation initiatives are promoted under the slogan “We Put All of Our Energy into Energy” to outline our commitment to conserving energy.
Highlights Include Briefings on New Legislation, Federal Clean Power Plan
The Spring Meeting of the Virginia Energy Efficiency Council attracted an overflow audience on May 11, filling the meeting room at the Science Museum of Virginia in Richmond. Efficiency advocates gathered for the biannual meeting representing a wide variety of perspectives, including business of all sizes, utilities, nonprofits, national associations, local governments and state agencies.
The agenda featured several particularly timely topics, and speakers’ presentations can be found on the VAEEC website on our Resources page. A few highlights from the 2015 Spring Meeting:
latest details on the proposed federal Clean Power Plan and how it could be addressed in Virginia, with a specific focus on the potential of EE as a cost-effective solution.The meeting was peppered with many additional updates and announcements, including; a sneak preview of the VAEEC’s latest industry census results; Borna Kazerooni offering updates from Virginia DMME; and Matthew Cooper sharing the exciting news that his Virginia-based firm, PEG, was honored by ENERGYSTAR as a national Partner of the Year.
As always, we greatly appreciate the many individuals who attended the Spring Meeting, traveling to Richmond from across the Commonwealth and beyond. A special thank you to Dominion Virginia Power for sponsoring this year’s Spring Meeting. We look forward to seeing everyone at the Fall Meeting for another opportunity to share information and insights, catch up with friends and colleagues and make new connections.
Four Members Also Serve on VAEEC Governance Board
The Virginia Energy Efficiency Council (VAEEC) is pleased to share the news that today Gov. McAuliffe appointed the members of the new Governor’s Executive Committee on Energy Efficiency. The Committee was created by the governor as part of the Virginia Energy Plan published in October, and it will be chaired by the state’s Chief Energy Efficiency Officer, Hayes Framme. The Committee is tasked with developing strategies to meet the state’s longstanding voluntary goal of reducing energy consumption in Virginia by 10% over 2006 levels by 2022 – a deadline that the governor has indicated should be moved up to 2020.
Statement by Ken Rosenfeld, VAEEC Executive Director:
“The creaton of the Governor’s Executive Committee on Energy Efficiency reflects the administration’s commitment to making energy efficiency a pillar of the Commonwealth’s energy future. The VAEEC applauds Governor McAuliffe for appointing this impressive group to accomplish its important work. The state’s 10% energy efficiency goal has been on the books for years, but without any plan to achieve it. This Committee has enormous potential to move energy efficiency forward in the Commonwealth, and to meet our efficiency goal in a way that generates significant benefits in terms of energy savings, financial savings, and job creation. The roster includes four VAEEC Governance Board members — Cynthia Adams, Bill Greenleaf, David Koogler and Saifur Rahman – and many other VAEEC member organization are represented as well; in total this is a remarkable collection of individuals who understand these issues in great detail. We look forward to working with the Committee to help ensure that every perspective is considered and to support its work in any way possible.”
Read the governor’s announcement.
The full list of appointees to the Governor’s Executive Committee on Energy Efficiency:
*VAEEC Governance Board Member
“The VAEEC thanks the Governor, his Administration, the bill sponsors, and the General Assembly for the great support of PACE financing and the CARE Act fix,” said Ken Rosenfeld, Executive Director of the VAEEC. “Both bills were overwhelmingly passed, reflecting the bipartisan support for energy efficiency in Virginia.”
“PACE financing provides a substantial new option to expand opportunities for commercial property owners. The CARE Act clarification, by providing a better measure of the true cost effectiveness of utility efficiency programs, promises to bring new opportunities to Virginia consumers. These two laws are a significant step forward for energy efficiency in the Commonwealth, and that means lower energy bills, cleaner air and local jobs. We have much more to do to reach the state’s energy goals, but this year’s General Assembly session was a home run for energy efficiency.”
PEG’s “Tactical Technical” mission is to provide world class engineering and environmental consulting for the THINKING ENVIRONMENT.
Join us for the Spring 2015 VAEEC Meeting, your twice-yearly opportunity to network with other leaders in the energy efficiency industry, hear from speakers about the state of the industry in the Commonwealth, and help chart the course for the VAEEC.
Topics and speakers on the agenda:
The meeting is free and open to all. Non-VAEEC members are asked to make a small donation. We encourage you to invite friends and colleagues. Parking is free. Thank you to Dominion Virginia Power for sponsoring the meeting.
Trane’s Performance Contracting Portfolio consists of healthcare, higher education, laboratories, military bases, local governments, and K-12 schools. Having worked with many PC clients in the Commonwealth, Trane has earned a reputation for responsible project development, quality design and execution, and “getting results” for customers.
The Virginia Energy Plan Released.
The Virginia Energy Efficiency Council (VAEEC) applauds Gov. Terry McAuliffe’s Virginia Energy Plan, released on October 1. As the Governor says in his opening letter, “the cleanest and cheapest energy is the energy that is not consumed,” underscoring the central role energy efficiency will play in the Commonwealth’s energy future.
The plan is intended to provide a strategic vision for energy policy in Virginia, providing a comprehensive view of current assets and future opportunities. It will be formally presented at an event October 14, will be explored in detail as a featured agenda item at the VAEEC Fall membership meeting, which will be held two days later in Richmond. The meeting is open to everyone; click here to register.
