The PFM Group
Environmental Finance implementation of the best financing solutions for their specific circumstances given the available options. Green initiatives, whether implemented on public or private property, generate benefits such as reduced utility bills, lower carbon emissions, local job creation and increased property values.
States, local governments, and non-profit agencies across the country are under pressure by constituents and regulators to reduce natural resource consumption, improve air quality, water quality, and provide sustainability services – all within budget. At Public Financial Management, Inc. (PFM), we partner with clients to identify cost savings through implementation of solutions that seek to achieve environmental benefits while also improving the bottom line.
What is Environmental Finance? Environmental Finance is a new and innovative way to leverage environmental projects’ benefits in combination with traditional financial tools. Funding for green projects typically provides environmental AND financial benefits. By reducing energy and water consumption, upgrading building efficiency, and generating power from renewable resources, our clients are meeting environmental standards, boosting the local economy, and enhancing their bottom line. Examples of a few of the financial structures include:
A Reliable Partner; A Valuable Asset PFM is on the forefront of the Environmental Finance movement. Our Environmental Finance Group has extensive experience with innovative programs dedicated to creating and implementing “green” projects and initiatives. “Green” efforts can cover a wide variety of projects, ranging from energy equipment retrofits to renewable generation and system-wide upgrades for energy and water distribution and consumption management.
We believe that our work with states, local governments and non-profits is unparalleled in breadth. PFM has worked with many clients on a broad range of financing opportunities that leverage project savings and incentives in order to fund the project costs. We have worked to PACE Programs – Property Assessed structure and assist in the implementation of Clean Energy (PACE) provides financing to financing tools that include Property Assessed private property owners for improvements Clean Energy (PACE), revolving loan funds, such as energy efficiency upgrades, water power purchase agreements, energy service conservation, and renewable energy generation. company (ESCO) contracts, on-bill financing, This assessment can then be included as taxable and tax-exempt leases, as well as an additional item on the property’s tax bill. municipal and green bonds. Project types include PFM’s role in these programs typically includes energy efficiency improvements, water efficiency identification of, assistance with, solicitation for, installations, renewable a and analysis of terms related TYPICAL PROJECT TYPES energy infrastructure tto third party funding for such RENEWABLES PROGRAM and implementation, and p programs. Additionally, we • Solar Photovoltaic (PV) IMPLEMENTATION streetlight upgrades, to p provide ongoing program • Solar Thermal • Property Assessed • Wind name a few. We have m management services to help Clean Energy (PACE) • Energy Revolving Funds the knowledge and ensure continued attention e BUILDING ENVELOPE MAJOR SYSTEMS experience needed to tto detail, keeping in mind the • Insulation • HVAC provide our clients with best interests of our client. b • Air and Duct Sealing • Water Heating • Windows advice on the creation and d • Lighting (interior/exterior) • Daylighting • Doors • Roofs
© March 2016 The PFM Group
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Streetlights Management Systems Greywater Systems High Efficiency Plumbing
Streetlighting Initiatives – Changing to LED technology is proving to be an improvement popular for the benefits of budgeting, maintenance, and safety. PFM works with individual as well as multi-jurisdictional regional agencies to provide financial analysis throughout the solicitation, evaluation, and financing associated with these programs.
The PFM Group
Taxable and Tax Exempt Leases and Loans – Whether projects are limited to a single technology or range across multiple efficiency and generating projects (such as ESCO projects), we work with our clients to model the savings, leverage the incentives and assist with the solicitation, evaluation, documentation review, and closing of lease and direct loan transactions. Green bonds – As the markets and investors become more interested in having their money invested in socially responsible investments, green bonds have become more and more attractive to potential investors. PFM has been at the forefront of this movement through work that we have done to identify and work with third party verification firms, create uniform standards, and advise clients on the issuance of green bonds. Revolving loan funds (RLFs) – RLFs provide agencies with a way to invest in and maintain capital projects by committing some (or all) of the savings and incentives to a fund that is available to be drawn upon for additional projects. PFM works with our clients to identify seed funding and establish sound fund mechanics, often including operating procedures, in order to maintain the fund over time.
environmental finance – the examples above are some of the most recent developments in this market.
An Industry Leader For 40 years, PFM has been a trusted advisor to many municipality, state, and non-profit clients, assembling an impressive track record facilitating financing based on each client’s specific circumstances. The PFM Group of companies, which includes PFM, are national leaders in providing independent financial advice as well as investment advisory, management and consulting services to local, state, and regional government and non-profit clients. We help our clients meet their financial challenges with a broad array of products, backed by professionalism and outstanding service. Environmental Finance is a rapidly developing new area of specialization, and PFM is beginning to be recognized nationwide as an innovator in the field. For example, programs for which we serve as financial advisor/program manager have recently won numerous awards, including the South Coast Air Quality Management District Clean Air Award, the Governor’s Energy Efficiency Leadership Award, the Urban Land Institute’s (ULI) Best of the Best Award for Organizational Leadership, and others. PFM’s Environmental Finance practice area believes that by leveraging available incentives while utilizing traditional and innovative financing solutions, we are assisting our clients and their constituents with improvements that save money, reduce natural resource consumption, increase property values, create jobs, and enhance local economies.
Many other types of financing structures and project types can be utilized within the scope of
To learn more, please contact: Laura Franke Managing Director
[email protected] 213.415.1625
Heather Casperson Senior Managing Consultant
[email protected] 612.371.3753
The material contained herein is for informational purposes only. This content is not intended to provide financial, legal, regulatory or other professional advice.
www.pfm.com © March 2016 The PFM Group
Public Financial Management, Inc. is a registered municipal advisor with the SEC and the MSRB under the Dodd-Frank Act of 2010.
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