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Sustainability Business Case with FUNDING assistance

Discover the benefits of sustainability for business, including increased profitability, access to funding, cost reduction, and talent attraction. Learn about the Property Assessed Clean Energy (PACE) program and how it can support major sustainability projects.

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Sustainability Business Case with FUNDING assistance

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  1. Sustainability Business Case with FUNDING assistance Lolalisa DeCarlo King Architect for Life, Sustainability Strategist Jonathan Blackburn Texas PACE Authority State Director Austin, Texas

  2. Key Presentation Take-Aways • Sustainability is more profitable • Sustainability gleans the best talent • Sustainability cuts cost of capital • Funding is available for major projects • PACE is in 32 states • What is PACE?

  3. Business Case Business Benefits of Sustainability Source: Huffington Post, John Friedman • enhanced speed to market • competitive workforce • updated procedures • cost reduction or avoidance • market advantage • employee engagement • innovation • access to capital Graphic source: MIT Sloan Review: Kiron, Kruschwitz & Goh

  4. PACE Funding States with PACE-enabling legislation: 32 plus DC States with active PACE programs: 19 plus DC PACE Programs in operation: 40

  5. LOWERUtility Costs INCREASENet Operating Income Bottom Line: Increased Building Value

  6. 100% LONG TERM FINANCING • PROJECT PAYS FOR ITSELF

  7. ELIGIBLE TECHNOLOGIES • MUST: • REDUCE ENERGY/WATER CONSUMPTION OR DEMAND OR • ONSITE GENERATION BEHIND CUSTOMER METER • PERMENANTLY AFFIXED

  8. LONG SIMPLE PAYBACK? NO PROBLEM! REPAYMENT UTILITY SAVINGS INCREASED NOI

  9. Financial Impact of PACE - An Example • Commercial Office Building • Project involves a $1.1M energy efficiency retrofit • Annual energy and maintenance savings of $125,000 (8.8 years simple payback) • The project does not pass the property owner’s hurdle rate for investment in energy efficiency • PACE funding available for 20 years at 6.0%. • Conventional Funding for 5 years at 4.0 (with 20% down payment%).

  10. CashFlows

  11. BARTON CREEK MALL • Measures: • Exterior LEDs • HVAC • VFDs • BAS • Weatherization of building shell • Low flow water fixtures • Project Cost: $1.25M • Annual Savings: $177,000

  12. Key Presentation Take-Aways • Sustainability is more profitable • Sustainability gleans the best talent • Sustainability cuts cost of capital • Funding is available for major projects • PACE – Property Assessed Clean Energy • PACE – Positive Cash Flow

  13. Thank you! Sustainability Good for Business PACE A good way to fund sustainable projects

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