the clean energy financing and investment authority...
TRANSCRIPT
The Clean Energy Financing and Investment Authority: Creating and Managing a Green Bank Bryan Garcia, President and CEO, CEFIA
February 6, 2014
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202.777.7700 Creating and Managing a Green Bank Agenda
• Foundation for Success and Overview
• Important Decisions We Made Early On
• “Top 3” Biggest Successes
• “Top 3” Biggest Challenges Going Forward
• The Green Bank Model Works
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202.777.7700 Foundations for Success
• POLICY: State energy policy was (and is) an important focus for the Governor - sweeping energy legislation June 2011
• INDEPENDENCE: Connecticut’s green bank would become its own quasi-public organization, but with existing staff
• FUNDING: Connecticut’s green bank would take over existing sources of capital – Clean Energy Fund and RGGI allowance proceeds
• GOVERNANCE: New Entity & New Board. Board of the Clean Energy Fund – the predecessor to CEFIA – was disbanded by act of legislation that created CEFIA on July 1, 2011
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…transitioning programs away from
government-funded grants, rebates, and other
subsidies, and towards deploying private capital
…CEFIA was established in 2011 to develop
programs that will leverage private sector capital
to create long-term, sustainable financing for
energy efficiency and clean energy to support
residential, commercial, and industrial sector
implementation of energy efficiency and clean
energy measures.
Overview Visionary Leadership
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202.777.7700 Overview Organization
• Quasi-public organization – created by PA 11-80 and successor to the Connecticut Clean Energy Fund
• Focus – finance clean energy (i.e. renewable energy, energy efficiency, and alternative fuel vehicles and infrastructure)
• Balance Sheet – currently $100 million in assets
• Support – supported by a $0.001/kWh surcharge on electric ratepayer bills that provides approximately $30 MM a year for investments, RGGI (EE and RE) about $5-$10 MM a year, federal competitive solicitations (i.e. SunShot Initiative) and non-competitive resources (i.e. ARRA-SEP), private capital, etc.
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Third Party Insurance
Special Capital Reserve Fund
On-Bill Repayment
Commercial Property Assessed Clean Energy
Energy Savings Performance Contracts
Loan Loss Reserves
Grants Loans Equity
Subordinated Debt Connecticut Green Bank
Bonding
Leases, PPAs, and ESAs
Overview Financial Tools
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202.777.7700 Important Decisions We Made Early On Decision #1 – Governance
Board of Directors
President & CEO
Bryan Garcia
Administrative Staff
(CII)
Professional Staff
(CEFIA)
Chair
Catherine Smith
DECD
Vice Chair
Dan Esty
DEEP
Secretary
Matthew Ranelli
Shipman & Goodwin
B&O
Dan Esty
DEEP
Positions Committees
Deployment
Reed Hundt
Coalition Green Capital
AC&G
Matt Ranelli
Shipman & Goodwin
REFERENCES Established Board of Directors in September of 2011 – bylaws, operating procedures, employee handbook, etc.
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202.777.7700 Important Decisions We Made Early On
Decision #2 – Who Are We (Stakeholder Views)
REFERENCES Strategic Planning Retreat at the Pocantico Conference Center (November 2011)
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202.777.7700 Important Decisions We Made Early On
Decision #2 – Who Are We (Board of Directors View)
CLEAN TECH
CLEAN ENERGY FINANCE
or
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202.777.7700 Important Decisions We Made Early On Decision #3 – What Programs Do We Keep?
Education
Training
Clean Tech
Green Bank
37 PROGRAMS
4 PROGRAMS
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202.777.7700 Important Decisions We Made Early On Decision #4 – What Are Our Goals
Support the Governor’s and legislature’s energy strategy to achieve cleaner, cheaper and more reliable sources of energy
while creating jobs and supporting local economic development
• Attract and deploy capital to finance the clean energy goals for Connecticut
• Develop and implement strategies that bring down the cost of clean energy in order to make it more accessible and affordable to consumers
• Reduce reliance on grants, rebates and other subsidies and move towards innovative low-cost financing of clean energy deployment 11
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202.777.7700 Important Decisions We Made Early On Decision #4 (cont’d)–…and Metrics of Success?
• Maximize the amount of clean energy produced (or energy saved) per dollar of public funds at risk
• Amount of clean energy (i.e. energy efficiency, renewable energy, etc.) produced and deployed. Jobs created and amount of emissions reduced
• Deploy X amount of private capital leveraged by Y amount of public funds by Year Z. Total dollars of investment in clean energy
• Ratio of private capital to public funds and ratio of ratepayer funds invested in subsidies (i.e. grants) versus financing programs (i.e. loans)
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202.777.7700 Important Decisions We Made Early On Decision #5 – What Structure Do We Build?
Residential Sector
C&I Sector
Institutional Sector
Legal
Marketing
Policy
HR
IT
Operations Infrastructure Sector
Finance President and CEO
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Residential Sector
C&I Sector
Institutional Sector
Legal
Marketing
Policy
HR
IT
Finance
Operations
President and CEO
Infrastructure Sector
Marketing (Future Hire)
REFERENCES Everybody depicted in this slide, was not with the organization before May 31, 2011. Each of them is here at the Green Bank Academy.
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3 4 5
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Biggest Successes #1 Rebuilt the Organization
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202.777.7700 Biggest Successes #2 Municipalities Opted into C-PACE
• Ansonia
• Avon
• Beacon Falls
• Berlin
• Bloomfield
• Branford
• Bridgeport
• Brookfield
• Canaan
• Canton
• Chester
• Clinton
• Coventry
• Danbury
• Durham
• East Granby
• East Haddam
• East Hampton
• Torrington
• Trumbull
• Vernon
• Waterbury
• Waterford
• West Hartford
• West Haven
• Westbrook
• Westport
• Wethersfield
• Wilton
• Windham
• Windsor
• Windsor Locks
• New Milford
• Newtown
• North Branford
• North Canaan
• Norwalk
• Norwich
• Old Saybrook
• Plainville
• Portland
• Putnam
• Rocky Hill
• Simsbury
• Southbury
• Southington
• Sprague
• Stafford
• Stamford
• Stratford
• Suffield
• Tolland
• East Hartford
• East Windsor
• Enfield
• Fairfield
• Farmington
• Glastonbury
• Granby
• Greenwich
• Groton
• Hartford
• Killingworth
• Manchester
• Mansfield
• Meriden
• Middletown
• Milford
• Montville
• New Britain
• New Haven
• New London
Over 80% of Connecticut is Open for Business
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$/W kW
Biggest Successes #3 Residential Solar PV
Reduced installed cost $/Watt by about 10% year-over-year since 2011
Lowered subsidy by 20% since 2011
CT Solar Lease 2 ($60 MM), CT Solar Loan ($5 MM), and Smart-E Loan ($30 MM)
Installed capacity grew 150% year-over-year since 2011
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202.777.7700 Biggest Challenges Going Forward #1
State Budget Deficits and CEFIA Balance Sheet
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202.777.7700 Biggest Challenges Going Forward #2
Collaboration with the Utilities
▪ Use of Funds – ratepayer funds vs. private capital (credit enhancement strategy of IRBs versus LLRs)
▪ Additionality – utility model of cost-effectiveness testing (i.e. free-rider and spill-over effects)
▪ Goal Congruence – energy savings + private capital to achieve deeper savings
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202.777.7700 Biggest Challenges Going Forward #3
Financial Innovation AND Marketing Innovation
Increase the attractiveness to capital providers
Increase the attractiveness to customers
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202.777.7700 The Green Bank Model Works Recap
• Green banks support the energy policy
• Organizational independence is key
• Focus on clean energy finance
• Hire the right people
• Demonstrate (then communicate) impactful results
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202.777.7700 The Green Bank Model Works Doing More, Faster and Efficiently
$220 MM
INVESTMENT
10:1 LEVERAGE
30 MW DEPLOYMENT
1,200↑ JOBS ECONOMY
250,000↓ TCO2
ENVIRONMENT
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Thank You
Bryan Garcia, President and CEO Clean Energy Finance and Investment Authority 845 Brook Street, Rocky Hill, CT [email protected] (860) 257-2170 www.ctcleanenergy.com