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 Ohio Union Construction Industry Partnership-Apprenticeship Skill Building Trades Council-Cleveland Achievement Partnership (USCIP-ASAP) 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 3/28/2012 2
Goals 3/28/2012 3
Emerald Cities Cleveland-Cuyahoga County Council 3/28/2012 4
High Road Retrofit Economic Development Process Demand Financing Generation/Marketing Energy Performance/ Civic/Community Assessment & Engagement Management Project Development Workforce & Management, Development including Financing 3/28/2012 5
M.U.S.H+ 3/28/2012 6
One Step Ahead Cuyahoga County Owned Municipal Energy Program Buildings After a study conducted last Conducted(26) 52% ASHRAE year Cuyahoga County plans to Level II Audits of the 53 Audits in invest in 22 of 66 properties. its program. 11 (22%) audits The realigned portfolio scales have been submitted but not yet the counties’ properties to reviewed, (3) 6% not yet 5,682,750 sq ft. 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). 3/28/2012 7
Financing Sustainability Investments The ‘Egg’ Map collaboration, communication, innovation, networking, national/global market presence comprehensive $$ strategies Cleveland- Cleveland- Cuyahoga Cuyahoga National Info & County County Partners Knowledge Strategic Platform Underwriting local partners communities Capital Channels Selling to Investors Transaction/Portfolio Cleveland- Cleveland- Cuyahoga framework Cuyahoga County County deal flow 3/28/2012 8
Financing Sustainability Investments Funding Flexibility – One Size Does NOT Fit All Source Funding Type Cost of Capital Flexibility Barriers Future Uncertainty, Government Grant/Loan Low – None Low – Strict Rules Variable Foundation Grant/Loan Low – None Variable Limited Capital ESCO Performance Moderate – Moderate High ROI, low-hanging fruit Contract High Off-Books * Limited by Utilities Loans, Rebates Low – Moderate regulations Moderate On-Bill * Commercial Loans Moderate Low Upfront Costs & Strict Underwriting Banks Owners Equity High High Liquidity and access to capital PPESCO ** Performance Low – High Promising but not (** A Public Benefit ESCO) yet available Contract/Loan Moderate * Recently adopted accounting rules for off-book financing have limited this benefit. 3/28/2012 9 * On-bill payment typically requires regulatory authority.
Financing Sustainability Investments Funding for MUSH + (maybe some good news) • 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 3/28/2012 10
Financing Sustainability Investments Innovative Finance/Investment: Now and on the Horizon • 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 3/28/2012 11
Can We Fix It? Yes We Can. • 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) 3/28/2012 12
Releasing the Job Potential Cuyahoga County Owned Buildings Total Square Feet Level of Investment Amount of Total Direct Jobs Indirect Jobs Direct and Per Square Feet Investment 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 Amount of Total Direct Jobs Indirect Jobs Direct and Per Square Feet Investment 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 Amount of Total Direct Jobs Indirect Jobs Direct and Per Square Feet Investment Indirect Jobs 24,000,000 $3.64 $87,360,000 612 428 1040 Forest City Total Square Level of Amount of Total Direct Jobs Indirect Jobs Direct and Feet Investment Per Investment Indirect Jobs Square Feet 14,000,000 $3.71 $51,940,000 364 255 618
Policies to Promote High Road EE 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 3/28/2012 14
Only the beginning…
Don’t Piece Meal • {A targeted, intelligent approach can unlock MUSH+ market, producing jobs quickly} • {Cherry picking will not capture full energy savings or capitalize on job potential} • {Full suite of buildings & aggregate with other countywide projects} 3/28/2012 16
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
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