Cuyahoga County Leading by Example Shanelle L. Smith, Local Director - - PowerPoint PPT Presentation

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Cuyahoga County Leading by Example Shanelle L. Smith, Local Director Emerald Cities Cleveland-Cuyahoga County March 23, 2012 Emerald Cities Cleveland-Cuyahoga County Council Executive Council Council of Small Enterprises (COSE) Policy Matters

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Shanelle L. Smith, Local Director Emerald Cities Cleveland-Cuyahoga County March 23, 2012

Cuyahoga County Leading by Example

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Emerald Cities Cleveland-Cuyahoga County Council

3/28/2012 2

Executive Council

Council of Small Enterprises (COSE) Policy Matters Ohio Union Construction Industry Partnership-Apprenticeship Skill Achievement Partnership (USCIP-ASAP) Building Trades Council-Cleveland Northshore Federation of Labor Ohio Weatherization Training Center

General Body

Cleveland NAACP Enterprise Community Partners-Cleveland Environmental Health Watch Hard Hatted Women NE Ohio Chapter of U. S. Green Building Council Mechanical and Plumbing Industry Council (MPIC) Urban League of Greater Cleveland Lutheran Metropolitan Ministries Sustainable Cleveland 2019 Green Dots Working Group Sustainable Cleveland 2019 Green Dots Working Group Northeast Ohio Sustainable Communities Consortium Construction Employers Association Northeast Alliance for Hope Employment Connection

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Goals

3/28/2012 3

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Emerald Cities Cleveland-Cuyahoga County Council

3/28/2012 4

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High Road Retrofit Economic Development Process

3/28/2012 5

Demand Generation/Marketing Energy Performance/ Assessment & Management Project Development & Management, including Financing Workforce Development Civic/Community Engagement Financing

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M.U.S.H+

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One Step Ahead

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Cuyahoga County Owned Buildings Municipal Energy Program After a study conducted last year Cuyahoga County plans to invest in 22 of 66 properties. The realigned portfolio scales the counties’ properties to 5,682,750 sq ft. Conducted(26) 52% ASHRAE Level II Audits of the 53 Audits in its program. 11 (22%) audits have been submitted but not yet reviewed, (3) 6% not yet submitted, 9(14%) submitted after 8/15/2011 and 1(2%) are in progress. Based on 24 preliminary audits a total of 4 million sq. ft. (523 buildings and facilities) have been identified with $12, 259, 458 Energy Conservation Measurements (ECMs).

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Financing Sustainability Investments

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The ‘Egg’ Map

Cleveland- Cuyahoga County collaboration, communication, innovation, networking, national/global market presence comprehensive $$ strategies National Partners Capital Channels Selling to Investors Cleveland- Cuyahoga County Cleveland- Cuyahoga County Cleveland- Cuyahoga County Info & Knowledge

communities deal flow local partners

Transaction/Portfolio framework Strategic Platform Underwriting

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Financing Sustainability Investments

Funding Flexibility – One Size Does NOT Fit All

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Source Funding Type Cost of Capital Flexibility Barriers Government Grant/Loan Low – None Low – Variable

Future Uncertainty, Strict Rules

Foundation Grant/Loan Low – None Variable

Limited Capital

ESCO Performance Contract Moderate – High Moderate Off-Books *

High ROI, low-hanging fruit

Utilities Loans, Rebates Low – Moderate Moderate On-Bill *

Limited by regulations

Commercial Banks Loans Moderate Low

Upfront Costs & Strict Underwriting

Owners Equity High High

Liquidity and access to capital

PPESCO **

(** A Public Benefit ESCO)

Performance Contract/Loan Low – Moderate High

Promising but not yet available

* Recently adopted accounting rules for off-book financing have limited this benefit. * On-bill payment typically requires regulatory authority.

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Financing Sustainability Investments

Funding for MUSH + (maybe some good news)

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MUSH + portfolios represent (scale) sizeable business

volume, good credit borrowers/partners

Possibility to leverage non-traditional EE funding sources

» Block Grants, Muni Bonds, etc

Public asset owners are typically very motivated by cost

reduction and guaranteed lower operating expenses

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Financing Sustainability Investments

Innovative Finance/Investment: Now and on the Horizon

3/28/2012 11

AFL-CIO $10B commitment to CGI
Private PACE/On-Bill (commercial and residential)

Funds

National Private Fund Pools (Fund of Funds) for EE

Loans

Attracting Institutional Grade Global Investors

(Hint: “The Whales” want portfolio diversification)

Public Benefit ESCO tied to low-cost capital sources
Green Infrastructure Equity / Credit Enhancement

Funds

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Can We Fix It? Yes We Can.

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Electricians, heating/air

conditioning installers, carpenters, construction equipment operators, roofers, insulation workers, carpenter helpers, industrial truck drivers, construction managers, building inspectors.

Source: Building Retrofit Representative Jobs (Pollin, Heintz, & Garrett-Peltier, 2009)

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Cuyahoga County Owned Buildings

Total Square Feet Level of Investment Per Square Feet Amount of Total Investment Direct Jobs Indirect Jobs Direct and Indirect Jobs 5,682,750 $3.71 $21,083,003 148 103 251

Cuyahoga County’s Municipal Energy Program (MEP)

Total Square Feet Level of Investment Per Square Feet Amount of Total Investment Direct Jobs Indirect Jobs Direct and Indirect Jobs 4,000,000* $3.00 $12,259,458 86 60 146 4,000,000** $3.71 $14,840,000 104 73 177

* Completed 24 Audits **Estimated for remainder of ASHRAE Level II Audits

Better Buildings Challenge Signatories

Cleveland Clinic

Total Square Feet Level of Investment Per Square Feet Amount of Total Investment Direct Jobs Indirect Jobs Direct and Indirect Jobs 24,000,000 $3.64 $87,360,000 612 428 1040

Forest City

Total Square Feet Level of Investment Per Square Feet Amount of Total Investment Direct Jobs Indirect Jobs Direct and Indirect Jobs 14,000,000 $3.71 $51,940,000 364 255 618

Releasing the Job Potential

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Policies to Promote High Road EE

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For Governments conducting EE work Purpose

Living or Prevailing Wage Ensure that EE jobs are High Road First-Source or targeted hiring policies Require contractors to hire certain percent of their workforce locally or from targeted communities Apprenticeship utilization requirements Require use of apprentices on projects as a way to create opportunities in the building trades Safety and training requirements Require certain training or certification to ensure safety and quality of work Community Workforce Agreements Address the interests of under-represented communities Inventory building Use Identify and prioritize projects Publish building energy data Transparency Capture savings for future EE work Retain a portion of the cost savings achieved to fund additional EE work

Source: Making MUSH Energy Efficient, Center on Wisconsin Strategy

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Only the beginning…

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Don’t Piece Meal

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{A targeted, intelligent approach can unlock MUSH+

market, producing jobs quickly}

{Cherry picking will not capture full energy savings
r capitalize on job potential}
{Full suite of buildings & aggregate with other

countywide projects}

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How do we get there?

Pass Resolution to:
Partner with ECC
Seek financing mechanisms for County Buildings and MEP
Create Community Workforce Agreements
Participate in Better Buildings Challenge
Lead by Example