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FOR
IMMEDIATE RELEASE
Berkeley
to Create $50-$100 Million ‘Clean Energy Fund’ With City of Oakland Council
approves plan for a ‘Clean Energy Fund’ to provide funding for
installation of combined heat and power, energy efficiency, and solar
projects in both cities. Unique
financing eliminates city costs. Berkeley, CA – On
Tuesday, the Berkeley City Council moved forward with an innovative $50 -
$100 million Clean Energy Fund as part of a joint partnership with the
City of Oakland and the Berkeley-based firm Power Factors.
Specifically, the Council approved a contract for the development
of the Fund that would service Berkeley and Oakland. If the final
implementation plan proves the viability of this project and the funding
is confirmed, the Fund will be available starting in 2006 to provide the
up front capital costs for Berkeley and Oakland businesses to install
solar, combined heat and power, and energy efficiency projects.
The up-front capital costs paid out of the Fund would be repaid
over time out of the realized energy savings. The unique program, which
is an outgrowth of the Mayor’s Sustainable Business Working Group, would
be a major investment in clean energy and energy reduction, create energy
savings to local businesses and property owners, boost to the local
economy, reduce emissions. Overall, it is anticipated that the Fund would create between
10-20 megawatts of annual clean energy production and 5-10 megawatts of
annual energy savings – enough power for 3,000 homes. Funding comes from a
variety of sources, including federal tax credits, bond financing, state
incentives, and other sources. While
the City of Oakland and the City of Berkeley would sponsor and organize
the effort, the Fund does not rely on credit or financing from either
City. “This is a truly
innovative and exciting opportunity to jumpstart clean energy efforts in
both cities,” said Berkeley Mayor Tom Bates.
“Not only can we can make a serious investment in our local
economy and our environment, but we can provide leadership that other
cities will follow.” The concept and financial
structure for the program was created by Dwight Kuhns and John Schultheis,
two partners of Power Factors, a local professional services firm that
specializes in funding clean energy projects and companies. They have
formed a non-profit company, Clean EnGen Group, to conduct the feasibility
study and develop the financing structure. “The biggest challenge
was to create a financial structure that didn’t take more money out of
City treasury,” said Dwight Kuhns. “Most municipal bonds require that
the municipality back up the bond with a lien on future revenues. The
municipal bonds structure created by Power Factors will look to the
projects themselves to back-up debt service on the bond, leaving Berkeley
and Oakland ‘off the hook.’” # # # |
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