Renewable Municipal Resource Training

“Renewable Energy Financing Mechanisms”

Tim LizuraSenior Vice President, Business Development

6/10/08

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EDA – Who Are We?

• Independent, self-supporting finance and economic development agency dedicated to offering:

- Financing Assistance (loans/bonds/incentives)

- Real Estate Development Assistance

- Technical Assistance (training/mentoring)

Mission: To broaden New Jersey’s economic base by providing our customers with the necessary financial and technical

support to grow businesses, create jobs, and renew communities.

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EDA Role in the Energy Master Plan

“Expand the Edison Innovation Fund to invest in innovative

clean energy technologies including both energy efficiency and

renewable energy manufacturing businesses to stimulate the

industry’s growth in New Jersey.”

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EDA Role in the Economic Growth Strategy

• Edison Innovation Fund

• NJ Urban Fund

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EDA Role in the Energy Master Plan (EMP)

• Resources will fund innovative renewable energy and energy efficiency

technologies that will decrease electricity and heating costs, improve electric

reliability and maximize economic/environmental benefit to NJ’s ratepayers.

• EDA will offer assistance in the form of grants and loans to companies

manufacturing renewable energy, clean and energy efficiency equipment

and products in NJ.

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Edison Innovation Clean Energy Manufacturing Fund Program

• $12MM annual program to be funded by BPU and administered by EDA

• Targeted to energy efficiency and renewable energy manufacturing companies

• EDA currently finalizing program parameters with BPU

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Green Municipal Composite Bond

• EDA would issue tax-exempt bond, proceeds of which would fund direct loans to municipalities for qualified green uses.

• Participating municipalities could get low interest rates, reduced energy bills, support green initiatives and receive salable green credits.

• EDA currently advancing exploratory meetings with various potential stakeholders

• Program would dovetail BPU energy audits and serve as a financing component

• EDA currently finalizing program parameters with BPU

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Regional Greenhouse Gas Initiative (RGGI)• Under the law, the EDA, in consultation BPU and DEP, shall determine:

• Appropriate level of grants or other forms of financial assistance to be awarded to individual commercial, institutional, and industrial sectors and to individual projects within each of these sectors;

• Evaluation criteria for selecting projects to be awarded grants or other forms of financial assistance, including the ability of the project to result in a measurable reduction of greenhouse gases or a measurable reduction in energy demand; and

• Process by which grants or other forms of financial assistance can be applied for and awarded including, if applicable, the payment terms and conditions for authority investments in certain projects with commercial viability.

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Municipal Tools to Bridge Redevelopment Financing Gaps

• LDFF/Urban Plus

• Redevelopment Area Bonds (RAB)

• Tax-exempt bonds for nonprofits/manufacturers

• New Markets Tax Credits

• Brownfields (HDSRF)

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Urban Plus

• New lending program provides loans up to $5 million for projects in Atlantic City, Camden, East Orange, Elizabeth, Jersey City, Newark, New Brunswick, Paterson and Trenton.

- Terms up to 10 years with a 25-year amortization

- Use for fixed assets like buildings and equipment

- Finance up to 50 percent of total project costs

- Must have municipal support

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Redevelopment Area Bonds (RAB)

• Allows municipalities with designated redevelopment areas to issue tax-exempt bonds to fund certain portions of its redevelopment project.

• Some or all of the payments that are derived from a PILOT agreement are pledged to pay the debt service on the bonds.

• Qualifying bonds are excluded from the municipality’s gross debt.

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Redevelopment Area Bonds (RAB)

• 1180 Raymond Boulevard, Newark

- $7.9 million in taxable bonds issued through the EDA

- Part of $108-million financing package to renovate a 35-story office building and convert it to a mixed-use project involving residential and commercial space.

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New Markets Tax CreditsUnion Lake Crossing Shopping Center, Millville

Before

After

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Brownfields

• Hazardous Discharge Site Remediation Fund (HDSRF)

- Municipalities, Counties & Redevelopment Entities*Grants up to $3 million/year*Loans up to $3 million/year

- Commercial & Residential*50% Innocent Party Grants*25% matching grants for remedial action*Loans up to 100% of costs with a maximum of $1 million

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New Jersey Economic Development Authority609-777-4898

www.njeda.comFor more information about doing business in New Jersey visit

www.newjerseybusiness.gov or call 866-534-7789