Presented by: Bob Barton, CEO Catalyst Financial Group, Inc. working in support of EPA
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Transcript of Presented by: Bob Barton, CEO Catalyst Financial Group, Inc. working in support of EPA
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Presented by:Bob Barton,Bob Barton, CEOCatalyst Financial Group, Inc.working in support of EPA
National Tools for Schools Symposium 2001
Financing Financing Considerations Considerations
IAQ Tools for Schools
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• What’s happening in your school?
• IAQ and Energy Efficiency
• Sources of Funding
• Costs of Delay
IAQ Financing - Summary
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The Problems
• ________________________________• ________________________________• ________________________________• ________________________________• ________________________________• ________________________________• ________________________________• ________________________________• ________________________________
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“Soft” vs “Hard” Solutions
Soft – Behavioral Modifications• Animal Allergens• Cockroach Allergens• Mold and Moisture• Secondhand Smoke• Dust Mites• Asthma Management Plan• School-Based Asthma Education
Programs• Chemical pollutants and cleaning
agents
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Hard – New Equipment• Air Circulation
• HVAC
• Mites• Carpets
• Mold Moisture• Roofing
“Soft” vs “Hard” Solutions
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IAQ and Energy Efficiency
Most of these problems will be improved or
eliminated with effective HVAC system.
How can you use energy dollars saved to pay for
the improvements?
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Energy Efficiency Projects
• Unlike other capital projects• Dollars you need are buried in your
Utility Bill (operating exp)
• Delaying the installation is an expen$ive decision.
• You have the authority and resources
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Capital vs. Operating Budget
Capital Budget (Debt)
• What is the approval process? • Board/Council• Referendum
• Ceiling on capital expenses?
• Restructure capital expense budget?
Operating Budget (Expense)
• Already in utility payments
• Easier approval process
• Energy efficiency projects may provide access to captive funds for other needs
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Categorizing Financial Instruments
• Capital Expense•Bonds•Loans• “Performance
Contract”
• Operating Expense• Lease/Lease-
Purchase• “Performance
Contract”
• No Expense• Grants• Rebates/Incentives
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What Services Can An ESCo Provide?
• • • • • • • • • • •
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Common Performance Contracts
• Shared Savings Agreement• Fixed payment
•One-time verification•Taxable or tax-exempt
• Variable payment•Requires measuring and
monitoring•More expensive
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• Guaranteed Savings Agreement• ESCo or insurance company• Can separate financing from technical
performance• Most commonly used for Public
Sector
• Own-Operate• ESCo owns facility and sells back
“output”
Common Performance Contracts
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Benefits of Tax Exempt Lease Purchase Agreements
• Title to the Equipment Rests with Lessee
• Access to Low Cost, Tax-Exempt Funds
• Payments Are Subject to Annual Appropriation of Funds by Lessee (Not a Capital Budget Item)
• Easy paperwork• Fast• You may already be leasing
something!
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Additional Considerations
• Three Treatments• Legal
• Authority• Voter Approval Issues
• Financial Reporting• GAAP/GASB• “Materiality”
• Internal Accounting
• Construction Financing• Escrow Accounts
• Master Lease
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Note: Leasing legislation and interpretations are constantly changing. Always check with
local counsel to insure compliance.
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“Equal Opportunity Sources”
• Internal Sources• Operating or capital budgets• Available fund balances
• Third Party Lenders• Existing Lenders
•Lease-purchase master lease (line of credit)
• New Lenders• Upcoming bond issue• Lease-purchase agreement
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Specialty Sources
• Federal Programs• Dept of Agriculture
• Community Facilities Loan Fund
• Dept of Education• QZAB• Urgent School Renovation
Grants
• State Programs• Utility Programs
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Specialty Sources
US Dept of Agriculture• Community Facilities
Loan Fund•Rural population focus•Up to 40 years or useful
life•Must show economic
need•Formula based pricing
•Average income of population
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• $1.2 billion for urgent school renovation• School Renovation $901 million• IDEA/technology Activities $274 million• Charter School Facility $25
million
• Grants and 0% Loans• Authorized under part B of the
Individuals with Disabilities Education Act (IDEA)
Urgent School Renovation Funds
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• Awarded on competitive basis• Student-age population• Need for school repairs• Fiscal capacity to meet repair
needs
Urgent School Renovation Funds
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• Act Now!• Federal Cut off date = 9/30/02• State cut off date = 9/30/03
Urgent School Renovation Funds
Percentage Poverty
Percentage Match from Local Funds
0-9.99% 70%10-19.99% 50%20-29.99% 30%30-39.99% 10%
40% or greater None
• States have option to impose matching requirements. Example:
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• http://www.ed.gov/inits/construction/allocations.html
• For additional information, please contact Sylvia Wright at (202) 260-3778.
• Contact your state Dept. of Ed.
Urgent School Renovation Funds
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Grants
Getting to Yes
• Match eligibility requirements• Talk their language• Demonstrate need and solutions with
social impact• Always submit preliminary proposal
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Grants
Getting to Yes
• Match eligibility requirements• Talk their language• Demonstrate need and solutions with
social impact• Always submit preliminary proposal
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Sample Grants
American Lung Association School Partnership Grants For Asthma
Education• David & Lucile Packard Foundation, CA
• $98,748 for San Mateo County Schools• $116,420 for Santa Clara County Schools
• Meadows Foundation, TX• $94,950 for TX Elementary Schools
• Kate B. Reynolds Charitable Trust, NC• $69,885 for Western, NC Schools
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Sample Grants
Public School Building Renovation Grants
•McBean Charitable Trust, CA• $1,000,000 for Newport, RI
• Abell Foundation, MD• $150,000 for Baltimore
•Beazley Foundation, VA• $400,000 to Portsmouth, VA
• Medtronic Foundation, MN• $209,400 for Minneapolis, MN
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Sample Grants
Public School Health Program Grants
•The Ahmanson Foundation, CA• $30,000 to LA Unified School District
•The California Endowment, CA• $80,000 to Pajoro Valley USD• $107,500 to East Side Union HS
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In Summary…
• IAQ can be “piggy-backed” on Energy Efficiency projects
• Tax-exempt lease purchase agreements can provide cost effective financing alternatives
• Costs of delay can be very expensive
• Alternative Financing may be available
• EPA can help
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What Services Can An ESCo Provide?
• Walk-through energy audit• Comprehensive energy audit• Design and specification of new
equipment• Vendor of energy efficiency equipment• Installation/construction management• Ongoing maintenance• Training of personnel• Performance guarantees• Measurement and verification of project
performance• Financing• IAQ problems• Procurement and purchase of energy
commodity
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The Problems
• Chemical pollutants from building or building maintenance materials
• Chemical pollutants from science and art classes
• Improperly maintained ventilation systems• Allergens from classroom animals and
cockroaches or pests• Mold growth• Outdoor air pollutants and pollens• Second hand smoke• Dust mites
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For More Information...
Bob Barton Tel: 802.276.3846(Catalyst Financial Group, Inc.)[email protected]
• The Cadmus Group, Inc. is an EPA contractor working for ENERGY STAR
• E-mail [email protected]
• Call the ENERGY STAR Hotline at 1-888-STAR-YES (1-888-782-7937)
• Visit www.energystar.gov