1. The City of San Diego’s Clean Generation Program April 16, 2010 1

2. Clean Generation Program Property Assessed Clean Energy Financing (PACE) Purpose: Allows property owners to finance renewable energy and energy efficiency improvements through loans that would be repaid as an item on the property owner's property tax bill. 2

3. The Benefits Loan made to property Transferable on sale Competitive 20 year rate Repayment via property tax bill 3

4. Why? Job / Sector Development Increase demand for localcleantech products and services Leadership Municipal leadership is required Positive cash flow for participants Low cost / low risk to the City Environment GHG reduction 4

7. CSI integration (State of California Solar Incentive Program)5

10. Heating and Cooling Systems

11. A/C retrofits

12. Whole House Fan

13. Water heaters

15. Wind

17. Reclaimed Water Systems

18. Water Efficient Irrigation7

21. Issue bond

22. Remit payment6 - Submit Assessment Contract Package 7 - Receive Payment County 8 - Pay Back via Property Taxes 8

23. Participation Options Energy efficiency requirements Short term goal Educate and encourage Long-term goal Serve as a force for market transformation Two Phase EE Implementation Phase I: Thru December 2010 Phase II: Starts 2011 9

24. Prerequisites for all properties Items that must be replaced: Central Air Conditioners (SEER ≤ 7) Single Speed Pool Pumps Replaced with: Central Air Conditioners (SEER ≥ 13) Variable Speed Pool Pumps 10

25. Energy Efficiency Prerequisites HERS or equivalent audit May bypass audit requirement if you use a BPI certified contractor Must install fixtures that are pre-approved by the program administrator 11

26. Renewable Energy Prerequisites Home Improvement Path Phase I HERS audit Must install fixtures that are pre-approved by the program administrator Limited system size (70% of load or 130% of baseline) Phase II HERS audit Participation in prescriptive track of Whole Home Retrofit program or HomeStar Silver BPI Certified contractor required 12

27. Renewable Energy Prerequisites Home Performance Path Phase I HERS audit (Test out: with 20% reduction or HERS II ≤ 100) Optional participation in either the performance track of the Whole Home Retrofit Program, or HomeStar Gold Phase II HERS audit (Test out: with 20% reduction or HERS II ≤ 100) Required participation in either the performance track of the Whole Home Retrofit Program, or HomeStar Gold 13

28. Renewable Energy Prerequisites Already Efficient Homes Phase I & II HERS audit (HERS II ≤ 100) or Title 24 2005 / 2008 report Demonstrate historical annual consumption ≤ 130% of baseline (Tier 1-2) 14

29. 15 Clean Generation ProgramProgram Design Program Eligibility: Allocation: First come first serve Property must reside within the City of San Diego Multifamily - four units or less

31. Ownership: Property owner must initiate and sign application

32. Property Tax Payment / Title History:

33. Must have a good payment history

34. No delinquencies in the past 3 years

35. No involuntary liens may be on property

37. Ideal for property owners who:

38. Can’t get a home equity line of credit

39. Are considering a move in the near future

41. Fixed APR: 8.74% (Estimated)

42. Annual Payment: $2,615

44. Public hearing on district formation

45. Approval of resolution of intent

46. Ordinance levying special tax approved

47. Approval of administrative agreement

48. May- City Council

49. 2nd reading of the ordinance levying special tax approved

50. Hold Public Election