EEFC is serving as a financial advisor for the following initiatives:
To MacDonald Miller Facility Solutions (MMFS) to structure and arrange financing for the MMFS/Seattle Steam Company (SSC) energy efficiency (EE) program, to develop and finance EE projects for Seattle Steam Company customers. $8.5 million has been raised to date in senior debt, subordinated debt and project equity. Funding sources include private investors, a commercial bank and ARRA (American Reinvestment & Recovery Act of 2009) funds through both the Washington State Department of Commerce and the City of Seattle. EEFC has had lead role in all financing arrangements and structuring. First project closing anticipated Spring, 2011. Customer payments for the EE projects will be integrated with the SSC bill.
To MMFS to structure and arrange $10 million tax-exempt bond private placement debt facility for funding energy efficiency projects in non-profit facilities and low-income multi-family housing in Washington State working with the Washington State Housing Finance Commission (WSHFC) as bond issuer. $1 million in ARRA grant funds for credit enhancement arranged with the WA State Department of Commerce. Grant agreement closed September, 2010 and WSHFC/Lender agreement executed December, 2010. EEFC has had the lead role with MMFS and WSHFC to structure the program, prepare the ARRA grant proposal, arrange the bond purchaser and is engaged now in structuring the initial transactions. First project financial closing anticipated Q4 2011.
As part of a US Department of Energy team to support state and local governments in Washington State and nationally to develop and set up EE project financing programs for residential, public/institutional, commercial and industrial sectors. Clients being served through this program and on similar assignments under direct engagement include: Chicago Metropolitan Agency for Planning, Cities of Milwaukee, Madison, Los Angeles, San Diego, Bellingham, Bainbridge Island, Counties of Snohomish, Kitsap, Santa Barbara, Sustainable Works (a non-profit working in King, Peirce and Spokane Counties), and the State of Washington. Several EE finance programs are now operating and several others are under development with this support.
EEFC roles include: program design, ARRA grant proposal preparation, finance structuring, RFP/RFI document preparation, procurement of financial institution partners, preparing and negotiating implementing financing agreements, drafting bond documents and transaction support. Financial structures implemented include: Loan Loss Reserve Funds, Qualified Energy Conservation Bonds (QECB), Revolving Loan Funds, Commercial PACE, and Debt Service Reserve Funds.
To investor owned utilities in Illinois (Ameren, ComEd, People's Gas and Nicor) to develop and set up a residential EE project financing program with on-bill collections. Financial partner procured; implementing contracts under development. Program mandated by State Legislature.
To the World Bank to establish $100 million credit line for China Export-Import Bank for financing industrial EE projects in China.
To European Bank for Reconstruction & Development (EBRD) on setting up a $140 million district heating enterprise loan facility for DH enterprises in Kazakhstan.
To Asian Development Bank to set up industrial EE finance program and $100 million credit line with Provincial Government of Hebei Province, China.
As part of its forthcoming series of reports on “Global Power Best Practices,” the Regulatory Assistance Project (RAP) has engaged EEFC to prepare a report on current state of knowledge and best practice in EE finance.
The report will focus on the four regions -- United States, European Union, India and China -- distilling and evaluating EE finance experience and identifying trends in these markets. The core principles of successful EE finance mechanisms and programs will be addressed. Secondly, the report will provide recommendations on future program strategies and policies, which organizations can undertake and advocate to promote EE finance market development. The primary audience for the paper is RAP, the ClimateWorks Foundation and its network of funders, and secondarily, non-governmental organizations and other entities, including government and international agencies.