California Hub for Energy Efficiency Financing Pilot Programs
CAEATFA serves as the manager of the California Hub for Energy Efficiency Financing (CHEEF), and is developing program regulations to establish the necessary infrastructure for each of the pilot programs.
The Residential Energy Efficiency Loan (REEL) Assistance Program has launched, with the first loan enrolled in July, 2016.
CAEATFA has held 2 of 3 public workshops prior to the development of regulations for the CHEEF commercial pilots. Contractors and financial entities are encouraged to submit comments on proposed financing parameters and proposed project eligibility parameters. Please send comments to firstname.lastname@example.org or to email@example.com by December 15, 2016. If you prefer to schedule a conversation with us to discuss the proposed guidelines, please send an email to firstname.lastname@example.org.
Upcoming CHEEF Commercial Workshop
Workshop #3: On-Bill Repayment Program Parameters
December 2016: Date to be determined
- On-bill customer and property eligibility guidelines
- On-bill infrastructure and communication with the Master Servicer
- Details and timing of cash flows and payments
- Special situations: Late payments, disconnections, and removal from the bill
This workshop will cover the on-bill repayment parameters for the following pilot programs:
- Commercial on-bill (small business loan, small business lease and energy service agreements (ESA), large commercial non credit-enhanced)
- Single Family On-Bill residential (Pacific Gas and Electric (PG&E) Territory only)
- Affordable Multi-Family residential
Previous CHEEF Commercial Workshops
A Commercial Financing Program Parameters Workshop was held on July 20, 2016 (Workshop slide deck). This workshop covered the following:
- Credit enhancement structure (for small business pilots)
- Financial product eligibility
- Finance provider eligibility
- Borrower/Customer underwriting guidelines
- Eligibility measures and eligible projects
- Contractor requirements
- Project Quality Assurance (QA)/Quality (QC) requirements
- Data reporting
- Finance-only (non-rebate) pathway
A previous workshop on OBR Infrastructure was held on May 12, 2015. (Workshop slide deck)
The CHEEF pilots will be available to customers of PG&E, SCE, SCG and SDG&E. The programs are described below:
- Residential Energy Efficiency Loan Assistance Program
- The Residential Energy Efficiency Loan (REEL) Assistance Program enrolled its first loan in July 2016. It is available to single family residences of 1-4 units, and includes a loan loss reserve credit enhancement.
- Small Business Loans, Leases, and Energy Service Agreements
- A credit enhancement will be offered to encourage energy efficiency financing for small businesses. The option to make payments on customer’s utility bills (on bill repayments) will be available for loans, leases and energy service agreements. In addition, an off-bill option will be provided for leases and energy service agreements.
- Non-Residential On-Bill Repayment Program
- Customers and projects ineligible for the programs described above may still be eligible for on-bill repayment. In consultation with stakeholders, CAEATFA will determine other requirements that may be appropriate for this program.
- Master-Metered Multifamily Finance Pilot
- The Master-Metered Multifamily Finance Pilot will be available to multifamily properties that have a single, shared utility meter. The program may include a loan loss reserve, a debt-service reserve fund, and on-bill repayment.
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) serves as the manager of the California Hub for Energy Efficiency Financing (CHEEF). In this role, CAEATFA is developing the California Hub for Energy Efficiency Financing Pilot Programs in collaboration with the California Public Utilities Commission (CPUC) and the state’s investor-owned utilities (IOUs). The state's IOUs include Pacific Gas & Electric (PG&E), Southern California Edison (SCE), Southern California Gas (SoCal Gas), and San Diego Gas & Electric (SDG&E). These pilot programs are designed to help California achieve its energy efficiency goals by increasing the availability of lower-cost financing for energy efficiency investments throughout the state.
The pilot programs will encourage and leverage private lending and investment with various features such as loan loss reserves, debt service reserve funds, and the ability for IOU customers to include monthly loan payments directly on their monthly bills (on-bill repayment). These features also should allow lenders to offer better rates and terms by reducing their risk. In turn, consumers will have increased access to lower-cost financing, allowing them to upgrade their homes and businesses while saving money on energy. The CPUC has allocated $65.9 million for developing, administering and providing credit enhancements to the pilot programs.
If you have any questions about the California Hub for Energy Efficiency Financing pilot programs, please contact email@example.com at (916) 651-8157.