2

The Tennessee Department of Environment and Conservation through its Office of Energy

Programs is proud to launch a new Energy Education Initiative which will be delivered in

conjunction with Pathway Lending and other statewide energy resource providers. This

Initiative provides in depth training along with educational tools to support the implementation

of energy efficiency, renewable energy and energy management projects.

Funding for the Energy Education Initiative is provided by the Department of Energy through

the American Reinvestment and Recovery Act. As a result, the program will be able to

provide “tuition paid” workshops and conferences at many locations throughout the state over

the next several months. Some will focus on very specific topics such as multi-family housing

or industrial energy efficiency while others will have a broader approach to Sustainability. At

each of these events, the presentations and materials will be recorded and made available

for all Tennessee companies to access through an Online Resource Center to launch later in

the year.

Acknowledgment: This project is funded under an agreement with the State of Tennessee. This material is based upon work supported by the Department of Energy under Award Number DE-EE0000160. CFDA 81.041.

Date Event City

2-May Tennessee Chamber of Commerce and Industry Manufacturing Excellence Conference Nashville

2-May & 3-May Baker Center Electric Vehicle Symposium Knoxville

8-May Chattanooga Manufacturers Association Energy Efficiency Conference Chattanooga

17-May TREEDC Bethel University McKenzie

6-Jun TVA Preferred Partners Network Webinar Online

12-Jun TREEDC Columbia State College Franklin

13-Jun Business & Industry Energy Workshop Clarksville

26-Jun & 27-Jun Memphis and Shelby County Sustainability Summit Memphis

9-Jul TREEDC Austin Peay State University Clarksville

17-Jul & 18-Jul Industrial Energy Efficiency Summit Nashville

25-Jul National Association of Women Business Owners - Nashville Chapter - Focus on Energy Efficiency Nashville

26-Jul TREEDC Tennessee Tech University Cookeville

21-Aug & 22-Aug Oak Ridge National Laboratory Southeast Sustainability Summit Knoxville

July/Aug Business & Industry Energy Workshop East TN

July/Aug Business & Industry Energy Workshop West TN

22-Sep thru 24-Sep American Council National Conference on Energy Efficiency Nashville

3

Calendar of Events

TNEnergy.org

Qualified Energy

Conservation Bonds

Katie Southworth Program Manager TDEC Office of Energy Programs

7

QECB Background

• Low interest bonds for qualified energy projects

• Initially created by Congress in 2008; greatly expanded by

ARRA in 2009

• Total national allocation is $3.2 billion; Tennessee allocation

is $64,676,000

• 1%-5% effective interest rate for issuer

• Issuer gets 3%-4% subsidy from Treasury

• 15 to 22-year term

• Qualified projects are broadly defined

8

Large Local Government Allocations

• Large Local Governments in Tennessee receive a share of

the $64.7 million based on their percentage of the

Tennessee population

- Cities with populations of 100,000 or more

- Counties with populations of 100,000 or more, not including

any cities within the county that are large local governments

• 15 entities in Tennessee received allocations.

9

QECB Qualified Projects:

• Capital expenditures incurred for purposes of:

- Reducing energy consumption in publicly-owned buildings by at

least 20 percent

- Implementing green community programs (including the use of

loans, grants, or other repayment mechanisms to implement such

programs)

- Rural development involving the production of electricity from

renewable energy resources

- Certain research facilities and research grants

- Mass commuting facilities

- Demonstration projects

In Tennessee, bonds can only be issued if physical asset

development or improvement is critical component of project

10

Quick Aside: Energy Savings Performance

Contracts

• Also called Guaranteed Energy Savings Contracts with

energy service companies (ESCOs)

• Contract for the evaluation, recommendation, or

implementation of energy conservation measures

• Payments made over time

• Energy savings guaranteed to exceed costs

11

Allegheny County, PA: Municipal Building

Efficiency Improvements

• $9.3 million QECB for energy efficiency improvements to

County Jail and Regional Center, annual positive cash flow

of $1.56 million

• Upgrades included: Lighting & HVAC upgrades, new waste

disposal system and domestic water pumping upgrades for

the jail, and water upgrades & new high efficiency boilers for

the regional center

Initial guaranteed energy savings agreement project (both buildings)

$14,186,509

EECBG (Energy Efficiency and Conservation Block Grant) $4,848,602

QECB $9,337,907

1st year annual guaranteed energy savings (Starting 2012) $2,107,866

1st year payment (Starting 2012) ($523,994)

Measurement and verification service payment ($24,219)

1st year annual positive cash flow $1,559,653

12

Yolo County, CA: 1 MW solar photovoltaic (PV) to

supply power to both a jail and juvenile center

– Finance was a mix of new CREBs, QECBs, a California

Energy Commission (CEC) loan, a Pacific Gas and Electric

(PG&E) rebate, and a Tax Exempt Lease Program (TELP)

loan

– 3.9 percent interest rate with a 15 year tenor for QECBs

– Yolo is anticipating that it will have a net positive cash flow

of $100,000 per year starting in year 1 and $600,000 per

year starting in year 16 in utility expenditures

13

• OEP will evaluate requests for QECB

allocations through a competitive

process in October.

• Local governments and state

universities will be eligible to apply.

Thank You

14

OEP Energy Hotline: 615-741-2994

TDEC OEP Website

http://www.tn.gov/environment/energy/qualified-energy-conservation-bonds.shtml

Katie Southworth Program Manager TDEC Office of Energy Programs

15