Sustainable Energy Fund2010/2011 Annual Report

We are pleased to report that the Sustainable Energy Fund continues to make a difference. We have experienced a record year in funding renewable energy and energy efficiency projects. More than 400 students, professional educators and industry leaders now regularly attend the annual energypath conference. The growth in both programs is a result of our ability to take decisive and proactive steps to enable the fund to improve performance, enhance value, and meet mission. Changing, evolving, and expanding are core to our success.

While we pursue with great valor changes in our programs, there is a conservative manner in which we manage the financial resources of the Fund. Today we remain well positioned - even within an economy facing turbulent times.

The Sustainable Energy Fund is dedicated to helping energy users make informed decision and in financially supporting economically viable sustainable energy projects. We are proud of our consistency and transparency in the financial reporting and execution operations.

With the dedication of staff, board, and supporters, we continue the march towards a sustainable energy future for our children and grandchildren.

PRESIDENT

PRESIDENT

“Utilizing resources in such a manner as to meet the energy needs of today without compromising the ability of future generations to meet their needs.”

400+ conference attendees each year

Disbursed $7.4 Million for Projects

8603 educational hours

At the core of Sustainable Energy Fund’s Financial Services are its program related investments. These investments seek to assist energy users in overcoming financial hurdles in constructing economically viable sustainable energy projects. In general the Fund seeks projects that except for its financing would not otherwise come to fruition.

Financial Service programs include Loan and Lease Programs, the Energy Service Provider Network, Administration of an Energy Harvest Grant and the Allentown Interest Buy-Down Program.

Program Related InvestmentsThe Sustainable Energy Fund provides funding to facilitate a path towards a sustainable energy future. There continues to be a need for financing renewable energy and energy efficiency projects as financial institutions continue their tight lending criteria.

SEF’s financial programs seek to aid energy users in overcoming financial barriers through a variety of self-sustaining financial tools that include loans, leases, and equity investments.

Energy Efficiency

LED

Solar Thermal

Micro

HydroWind

Biomass 1 324

10

22

Solar PV

56

Technology Distribution

“Financing an LED lighting project with the Sustainable Energy Fund was a major success for us. They understood the ins and outs of financing the technology and had experience working with the state and federal incentives. The process was painless and we are presently planning another project to be financed by the Sustainable Energy Fund” Fegleys Brew Works.

Energy Service Provider NetworkWorking with and understanding the needs of sustainable energy contractors is critical to overcoming financial barriers in dynamic markets such as renewable energy. Through this network Sustainable Energy Fund works with contractors to rapidly develop financial products to meet the ever changing needs of the energy user. The network is a key asset that allows Sustainable Energy Fund to move the sustainable market long before traditional institutions are often aware of the market changes. In addition, this relationship with contractors allows the Fund to distribute information to contractors both timely and economically.

Energy Harvest GrantIn August of 2009, SEF was awarded a PA Energy Harvest Grant to provide a compact manure digester for electricity generation and odor control at Mains Dairy Farm in Newville, PA. The technology for this digester offers significant advantages over con-ventional digestion systems such as small tankage requirements, lower system capital costs, lower system construction costs, tolerance to shock loading, small foot print requirements, ability to expand, and ability to quickly recover from adverse operating conditions. Completed in August 2011, the digester will treat over 91,300 lbs of manure per day. The expected electric generation is between 100,000 to 140,000 kWh per year. The grant of $220,964 provided partial funding for the projected which has an estimated cost of $566,175.

Allentown Buy-Down ProgramSEF and the City of Allentown continued their Small Business Energy Loan interest rate buy down program. The loan buy-down program is available to small business and nonprofit entities located within the Allentown city limits. The program reduces the interest for borrowers to 1.5% on the first $25,000 of an energy efficiency or renewable energy project. Loan terms are extended up to five years and are structured to use the energy savings from the measures to pay back the cost of their loan. In 2010, Sunburst Property Management and Fegley Management & Energy LLC participated in the program. Information about each of these loans can be found in the Program Related Investment –Loan section of this report.

“Not only will atomic power be released, but someday we will harness the rise and fall of tides and imprison the rays of the Sun”

-Thomas Alva Edison

For the year ending June 30, 2011, SEF committed to fund 15 projects totaling $5,859,930. For the year ending June 30, 2011, SEF disbursed $6,246,989 for 16 of the projects. Information on these projects is listed below:

Fegley Management & Energy LLC. Allentown, PA $292,824 42 kW solar photovoltaic (PV)

Sunburst Property Management, Inc. Allentown, PA $207,900 37.8 kW solar photovol-taic (PV)

Seldom Rest Farm Myerstown, PA $162,000 101.2 kW solar photovol-taic (PV)

Thomas Jefferson University Philadelphia, PA $892,269 HVAC annual savings of 1,583,528 kWh’s

AquaPhoenix Scientific, Inc. Hanover, PA $1,337,000 201.6 kW solar photovol-taic (PV)

Potocnie Enterprise, Inc. Whitehall, PA $118,900 60 kW solar photovoltaic (PV)

Farm and Garden Station, LLC Warminster, PA $136,000 28.8 kW solar photovol-taic (PV)

Meck Energy Partners, LLC Orwigsburg, PA $653,616 448 kW solar photovol-taic (PV)

HACAG, LLC Hazelton, PA $319,125 55.5 kW solar photovol-taic (PV)

Michael Dinich Athens, PA, $170,000 30.94 kW solar photovol-taic (PV)

Phantom Entertainment Carlisle, PA $97,470 20.52 kW solar photovol-taic (PV)

AFC First Financial Corp. Allentown, PA $750,000 Energy efficiencyAlliance Hall of Allentown, Inc. Allentown, PA $65,195 Energy efficiencyElizabethtown Public Library Elizabethtown,

PA$250,000 Energy efficiency

Phalanx Associates, Inc. Manasquan, NJ $795,000 158kW solar photovoltaic (PV)

Dominic Episcopo LTD. Philadelphia, PA. $140,000 24 kW solar photovoltaic (PV)

Fegley Management & Energy LLC. Allentown, PA $292,824 42 kW solar photovoltaic (PV)

Sunburst Property Management, Inc. Allentown, PA $207,900 37.8 kW solar photovol-taic (PV)

Seldom Rest Farm Myerstown, PA $162,000 101.2 kW solar photovol-taic (PV)

Thomas Jefferson University Philadelphia, PA $892,269 HVAC annual savings of 1,583,528 kWh’s

AquaPhoenix Scientific, Inc. Hanover, PA $1,337,000 201.6 kW solar photovol-taic (PV)

Potocnie Enterprise, Inc. Whitehall, PA $118,900 60 kW solar photovoltaic (PV)

Farm and Garden Station, LLC Warminster, PA $136,000 28.8 kW solar photovol-taic (PV)

Meck Energy Partners, LLC Orwigsburg, PA $653,616 448 kW solar photovol-taic (PV)

HACAG, LLC Hazelton, PA $319,125 55.5 kW solar photovol-taic (PV)

Michael Dinich Athens, PA, $170,000 30.94 kW solar photovol-taic (PV)

Phantom Entertainment Carlisle, PA $97,470 20.52 kW solar photovol-taic (PV)

AFC First Financial Corp. Allentown, PA $750,000 Energy efficiencyAlliance Hall of Allentown, Inc. Allentown, PA $65,195 Energy efficiencyElizabethtown Public Library Elizabethtown,

PA$250,000 Energy efficiency

Phalanx Associates, Inc. Manasquan, NJ $795,000 158kW solar photovoltaic (PV)

Dominic Episcopo LTD. Philadelphia, PA. $140,000 24 kW solar photovoltaic (PV)

200 kW photovoltaic array at Garrod Hydraulics, York, PA

I know using Sustainable Energy is for my benefit so could you please turn out those lights for me?

I know using Sustainable Energy is for my benefit so could you please turn out those lights for me?

Sustainable Energy Fund’s educational programs, branded Energypath, assist energy users in acquiring the knowledge needed to support their journey towards a sustainable energy future. Educational programs include monthly green bag lunches, an annual conference, science fair, speaker’s bureau, resource locator and interactive website. Green bag lunches provide attendees with information on specific sustainable energy topics. The annual Energypath conference creates a passion for and understanding of sustainable energy in the leaders of today and tomorrow. The Energypath Science Fair encourages middle school students to apply their interest in science to creating new applications for or improving existing sustainable energy technologies. The speakers bureau facilitates speakers for community organizations requiring speakers on sustainable energy related topics. The interactive website and resource locator serve as a modern version of the

card catalog aiding energy users in their search for resources.

Photovoltaic Installation Training at energypath 2011

Energypath 2010 and 2011The annual Energypath conference seeks to create a passion for and understanding of sustainable energy in the leaders of today and tomorrow. In the last fiscal year Sustainable Energy Fund powered two conferences, Energypath 2010 and Energypath 2011. Energypath 2010 was held at Lehigh University and Energypath 2011 was held at DeSales University both located in the Lehigh Valley. Energypath 2012 will return to DeSales University June 25 to June 29, 2012.

Each year the conference was attended by more than 400 students, professional educators, dislocated workers and industry leaders. Each year SEF offers 200 scholarships that include pre-conference energy camp, books, room and board to students, educators and dislocated workers. Pre-conference energy camps provide detailed hands on training in various technologies including solar photovoltaic, solar thermal, wind energy and energy efficiency. In both 2010 and 2011 pre and post conference surveys revealed a significant increase in sustainable energy knowledge among attendees. Consequently, Sustainable Energy Fund was requested to present the results at the Global Landscapes Conference.

Each year the conference featured more than 50 seminars and 60 different speakers. Some of the speakers have included Governor Ed Rendell, Commissioner James Cawley, Commissioner Gardner, former FERC Commissioner Nora Mead Brownell, Dr. Susan Christophreson, Dr. Philip Hoffmeyer, Nobel Laureate Dork Shagian, State Representative Eugene Depasquale, Congressman Joseph Sestak, and Dr. Vera Cole.

The conference attracts educators from across the region including more than 90 of Pennsylvania’s intuitions of higher learning. The combination of Solar Scholar grants and the conference have resulted in construction of 20 3 kW photovoltaic systems for training students. The conference has also been credited as a significant factor in the creation a new degree program at Penn State Hazleton BS in Alternative Energy & Power Generation.

New for 2011 was the Middle School Science Fair. Students representing 16 schools participated in the first annual Renewable Energy Science Fair. Each team presented their poster board and research data. These projects were evaluated for creativeness, scientific thought, clarity and skill. The team with the highest score, St Joseph’s Worker School, was presented their award at the Keynote Dinner.

Science Fair

Dan Griffiths, Energypath 2010

Governor Rendell Energypath 2010

PUC Chairman Cawley Energypath 2010

County Executive Cunningham with John Costlow

Energypath 2011

Brian BeckerMarketing Manager

Chris FlynnCapacity Development Champion

Jennifer HopkinsPresident

Scott DeStefonPRI Analyst

Scott LindsayProgram Leader

John CostlowDirector of Technical Services

Evan CookCapacity Development Specialist

Jennifer KucheravyAdministrative Assistant

John OrsiniBusiness Development Specialist

Andy SteinChairman

Scott PaternoChairman Human Resources

Daniel Griffiths

Pam PolacekVice Chairman

Kenneth Mickens

Alan RomanPRI Chairman

Father Jack RyanFinance Chairman

Brian BeckerMarketing Manager

Chris FlynnCapacity Development Champion

Jennifer HopkinsPresident

Scott DeStefonPRI Analyst

Scott LindsayProgram Leader

John CostlowDirector of Technical Services

Evan CookCapacity Development Specialist

Jennifer KucheravyAdministrative Assistant

John OrsiniBusiness Development Specialist

Andy SteinChairman

Scott PaternoChairman Human Resources

Daniel Griffiths

Pam PolacekVice Chairman

Kenneth Mickens

Alan RomanPRI Chairman

Father Jack RyanFinance Chairman

Lafayette CollegeLehigh Career Technical InstituteLehigh UniversityLehigh University Energy Systems Engineering SystemsLehigh University Enterprise Systems CenterLehigh Valley Associate of Independent CollegesLehigh Valley Green BuildersLehigh Valley Land Recycling InitiativeMAREAMoravian CollegeMuhlenberg CollegeNJHEPSPenn FuturePennsylvania Lehigh Valley Workforce Investment BoardPetrucciReading Area Community CollegeSchaedler YescoSchucoUGI Corp

Ann ClausenDr. Vera ColeDr. Andrew ColemanJohn CusackHeather DeschenesHolly EdingerMichael GibsonLauren GiguereRobert GustafsonChristine KnappGina KormanikDr. David LapinskyDr. Bonnie Lynch

Abel PEO ServicesAFC FirstAir Products - LocationBen Franklin Technology PartnersBerkshire Asset ManagementBP WindCity of AllentownCity of AllentownCommunity EnergyConstellation EnergyCR&YDa Vinci Science CenterDavinci Science CenterDesalesDynamic SolarEFMR EnginuityEPA Region IIIGray ConnectiveGreen Impact Solutions, Inc.

Paul PhilpottJennifer PritchardKalyna ProcykRandy QuinnBenjamin SandersDiane ShellenhamerRobert ThompsonVirginia ThompsonJames VozarLarissa WalkerMary Wildford-HuntBruce Wilson

Founded in 1999 via a settlement approved by the Pennsylvania Public Utility Commission during the state’s electric deregulation proceedings Sustainable Energy Fund has been a leading funder of sustainable energy projects and education.Sustainable Energy Fund (SEF) is a private non-profit organization that assists energy users in overcoming education and financial barriers to a sustainable energy future. We envision a future in which energy is harvested, converted, distributed and utilized in a manner that allows all to meet their energy needs without compromising the ability of their children and grandchildren to meet their needs.

We seek to initiate a transformation to a sustainable energy economy through a forward-looking long-term coordinated strategy. Individual programs seek to overcome specific barriers for energy users seeking to follow a path towards a sustainable energy future. Key program areas of support are education, finance and regulatory. The development of factual energy knowledge and the ability to fund energy projects are critical of achieving a sustainable energy future.

At the Sustainable Energy Fund we strive valiantly for the mission of a sustainable future for our children. The dedication of Staff, Board, and Supports are positioned, with great enthusiasm, to continue the journey until the goal is obtained.

Projects Total $80,314,370

KliloWatt Hours Generatedfrom projects

Total Committed

11,709,420

$33,009,654

kWH Generated

110,783,342

Lafayette CollegeLehigh Career Technical InstituteLehigh UniversityLehigh University Energy Systems Engineering SystemsLehigh University Enterprise Systems CenterLehigh Valley Associate of Independent CollegesLehigh Valley Green BuildersLehigh Valley Land Recycling InitiativeMAREAMoravian CollegeMuhlenberg CollegeNJHEPSPenn FuturePennsylvania Lehigh Valley Workforce Investment BoardPetrucciReading Area Community CollegeSchaedler YescoSchucoUGI Corp

1005 Brookside Road Suite 210 Allentown, PA 18106 610-264-4440 Website: thesef.org