What is PACE?• Property Assessed

Clean Energy

Property Assessed Clean Energy (PACE) Financing

• HERO is Property Assessed Clean Energy (PACE) financing, which is designed to make payments affordable by offering a fixed interest rate that is payable over an extended period of time along with property taxes.• PACE Overview:

• New way to pay for homeenergy products

• Created in partnership with industry leaders

• Property owners pay for improvement through property tax bill

• Operation legislation AB811 passed July 2008

The Fastest Growing PACE Program in the U.S.

• HERO is the largest and most successful residential PACE based financing program in the nation, and the only program that has successfully securitized PACE based loans. All funding, support services and technology are provided at no cost to the municipality.• Our Proven Model Provides:

• Ongoing Lending Capital • Dependable Support Services• Comprehensive Technology

Infrastructure• Unrivaled Consumer Protections

Our Partnership Approach

• Consumer Protection:

• Contractor Training / Management

• Product Standards

• Product Verification

• Fair Pricing • Dispute

Resolution• Senior

Protections• ESL Services

Results Responsibility

Economic:

• Reduce Utility Bills

• Create Jobs

• Increase Property Values

Environmental:

• Reduced CO2 Emissions

• Decreased Energy Consumption

• Substantial Water Savings

The HERO Program:

• Helping Homeowners and Strengthening Communities

HERO Helps Communities

• When property owners invest in energy efficient upgrades, they do more than save energy. HERO also helps communities create new jobs, save water and increase property values.

• Economic Stimulus• Lower Utility Bills• New Job Creation• Increased Property Values

• Consumer Protection• Price / Value Confirmation • Pay Upon Job Completion• Dispute Resolution

• Environmental Impact• Reduced CO2 Emissions• Decreased Energy Consumption• Water Savings

HERO Makes it Affordable

Affordable Payment Options

0% Down Payment Requirement

Easy to Qualify

No Payment Up to 18 Months

Transfers with Property

Tax Deductible Benefits

Technology Platform

Add Community ValueWe provide the most comprehensive consumer protections in the industry

Consumer Protecti on Other Financing Opti ons

Energy Efficient Product Verification

Contractor Requirements

Fair Pricing Requirements

Permit Requirements

Funding Provided Only Upon Successful Completion of Project and Homeowner Sign Off

Pre- and Post-Funding Dispute Resolution

Protections for Seniors

HERO Supports Contractors

• Create Easy to Use Sales Tools• Test, Try and Iterate• Provide a Comprehensive Portal• Dedicated Co-Marketing Services• Marketing Review / Approval• Permit Verification• Training, Training and More Training• Great Relationship Management• Process and Procedural Guard Rails• Pay Upon Project Completion

• We provide the most comprehensive suite of software tools for estimating and financing.

Deliver Easy to Use Software

• Features:• Interactive Sales

Tools• Estimating

Calculators• Financing Document

Generation• Electronic Signature

Capabilities• Information and

Updates• Web-based Training

Curriculum• Marketing Resource

Center• Company-specific

webpage at heroprogram.com/companyname

HERO Pro

Real Time Data Tracking

• Community Impact• Project Types• Active Contractors• New Job Creation• CO2 Reduction• Economic Impact

HERO Gov

Recently launched!...(April 2015)

Every Community will have access to the HERO Gov app, which provides real-time program reporting on a number of key project metrics

Mobile app (downloadable from iTunes)• Economic stimulus & impact• Environmental impact & savings• Drill-down on metrics by community• Ability to view different time periods

HERO Pro

• HERO Registered Contractors have access to HERO Pro, an integrated, secure platform designed to make the estimating, approval, documentation and funding process as easy as possible form homeowners and contractors.

• Features:• Interactive Sales Tools• Estimating Calculators• Energy Savings

Calculators• Financing Document

Generation• Electronic Signature

Capabilities• Information and Updates• Web-based Training

Curriculum• Marketing Resource

Center• Company-specific

webpage at heroprogram.com/companyname

Community Support:• Consumer Protection

& Contractor Training

HERO Protects Consumers

• When you approve HERO in your community you’re protecting consumers before, during and upon completion of every project. Contractors must be in good standing with the Program and are only paid after the job is completed to the consumer’s satisfaction.

• #1 Consumer Protection Policyin the Industry:• Contractor ID Verification• Pricing Controls• Permit Verification• Payment Protection

HERO Protects Elderly Consumers

• Compliance agents provide the following additional services for elderly protection:

• In-home visits (regular follow-ups)

• Contractor/property owner mediation services

• Liaise with Elder Protection Organizations

• 100% resolution of all reasonable matters

Additional preventative controls in place for homeowners over the age of 64:

• Trained specialists who ask specific questions to gauge property owner’s capacity to enter into a contract

• Verbal confirmation of financing terms

• Verbal confirmation from homeowners before contractors are paid

• An additional courtesy call made to all property owners 74+

HERO Trains & Registers Local Contractors

• HERO provides a comprehensive training and registration program, designed to familiarize Contractors with the financing terms and the Property Owner approval process. • Training Covers:

• Sales• Software• Product Eligibility• Document Processing• Completion Certification• Payment Options• Co-Marketing Program• Brand Usage Guidelines

Community Support

• HERO Hotline (855-HERO-411)• Our full service Call Center is available to

homeowners and contractors from project start to completion.

• Contractor Training• Our representatives in the field provide

training and ongoing support for application processing and Program implementation.

• Dedicated Account Representatives• We provide continuing support for all

sales, marketing and customer service concerns.

• Dispute Resolution• Every Property Owner or Contractor

complaint receives a full investigation to find an acceptable resolution to any disputes.

HERO in Action:• Success & Awards

Awards & Recognition

Environmental & Economic LeadershipGovernor of California

Best Residential PartnershipU.S. Green Building Council

2014 Clean Air AwardSouth Coast Air Quality Management District

Best of the BestUrban Land Institute

Business Achievement AwardClimate Change Business Journal

Presidents Award for ExcellenceSouthern CA Association of Governments

Norton Younglove AwardWestern Riverside Council of Governments

65,000 approved applications for $3.2 Billion

39,600 completed residential projects

$785 Million funded in upgrades

6,560 local jobs created

$1.4 Billion in annual economic impact

1.5 Million tons of abated CO2 emissions

$1.6 Billion in utility bill savings

~77% California households can participate in the Program – 32 Counties, ~10.6 Million

households

330CA Cities &Counties

Said that HERO Program Representatives are friendly, knowledgeable and professional.

Said that they would recommend the HERO Program to a friend or relative.

97

96

HERO in California

As of May 27, 2015. Italicization indicates pre-launch phase

Southern California

• Imperial County• BrawleyCalexicoCalipatria• El CentroHoltvilleImperial• Unincorporated Area

• Los Angeles County

• Agoura Hills• Alhambra• ArcadiaArtesiaAvalon• Azusa• Baldwin ParkBell Gardens• BellflowerBeverly Hills• BradburyBurbankCalabasas• CarsonCerritos• City of Industry• ClaremontCommerce• CovinaCudahyCulver City• Diamond BarDowneyDuarte• El Monte• El Segundo

• GardenaGlendale• GlendoraHawaiian Gardens• Hawthorne• Hermosa BeachHidden HillsHuntington Park• Inglewood• Irwindale• La Canada FlintridgeLa Habra HeightsLa MiradaLa Puente• La VerneLakewood• Lancaster• Lawndale• LomitaLong BeachLos AngelesLynwoodMalibuManhattan Beach• Monrovia• Montebello• Monterey ParkNorwalk• Palmdale• Palos Verdes EstatesParamountPasadenaPico Rivera• Pomona• Rancho Palos VerdesRedondo Beach• Rolling Hills

• Rolling Hills Estates• Rosemead• San DimasSan Fernando• San Gabriel• San MarinoSanta ClaritaSanta Fe Springs• Santa Monica• Sierra MadreSignal Hill• South El MonteSouth Gate• South Pasadena• Temple City• Torrance• Walnut• West CovinaWest HollywoodWhittierUnincorporated Area

• Orange County• Aliso Viejo• Anaheim• Brea• Buena Park• Costa Mesa• CypressFountain Valley• Garden Grove• Huntington BeachLa HabraLa Habra Heights• La Palma• Laguna Beach• Laguna Hills• Lake Forest• Newport Beach

• PlacentiaRancho Santa MargaritaSan Clemente• Santa Ana• Stanton• Tustin• WestminsterYorba Linda

• Riverside County• Banning• BeaumontBlythe• Calimesa• Canyon LakeCathedral CityCoachella• CoronaDesert Hot Springs• Eastvale• Hemet• Indian Wells• Indio• Jurupa ValleyLa Quinta• Lake Elsinore• Menifee• Moreno Valley• Murrieta• NorcoPalm DesertPalm Springs• PerrisRancho Mirage• Riverside• San Jacinto• Temecula• Wildomar• Unincorporated Area

• San BernardinoCounty

• Adelanto• Apple Valley• Barstow• Big Bear Lake• Chino• Chino Hills• Colton• Fontana• Grand Terrace• Hesperia• Highland• Loma Linda• Montclair• Needles• Ontario• Rancho Cucamonga• Redlands• Rialto• San Bernardino• Twenty Nine Palms• Upland• Victorville• Yucaipa• Yucca Valley• Unincorporated Area

• San Diego County• Carlsbad• CoronadoDel Mar• El Cajon• Encinitas• Escondido• Imperial Beach• La Mesa

• Lemon Grove• National City• Oceanside• Poway• San Diego• San Marcos• Santee• Solana Beach• Vista• Unincorporated Area

• Santa Barbara County

Lompoc

• Ventura County• Fillmore• OjaiOxnardPort Hueneme• Santa PaulaSimi ValleyVentura

As of May 27, 2015. Italicization indicates pre-launch phase

Northern California

• Alameda County• AlbanyBerkeley

• Contra Costa CountyAntiochBrentwood• Concord• DanvilleLafayetteMartinezOakleyPittsburgPleasant HillRichmondSan PabloSan RamonWalnut Creek

• El Dorado County South Lake Tahoe

• Fresno County• Clovis• Coalinga• FresnoKerman• KingsburgParlier• Reedley• SangerSelmaUnincorporated AreaHumboldt CountyEureka

• Kern County• Arvin

• Bakersfield• California City• Delano• McFarland• Ridgecrest• Shafter• TaftTehachapi• Wasco• Unincorporated Area

• Kings County• Hanford• Lemoore

• Madera County• Unincorporated Area

• Merced County• AtwaterLivingstonLos Banos• Merced• Unincorporated Area

• Mono County• Town of Mammoth Lakes• Unincorporated Area

• Monterey CountyCarmel-by-the-Sea• Del Rey Oaks• MontereyPacific Grove• Unincorporated Area

• Napa County• American Canyon• Calistoga• Napa• St. Helena

• Yountville• Unincorporated Area

• Sacramento County• Citrus HeightsElk GroveGalt• Rancho CordovaUnincorporated Area

• San Francisco County San Francisco

• San Joaquin CountyLodiMantecaRipon• Stockton• Tracy

• San Mateo CountyBurlingameDaly City• Foster City• Menlo ParkRedwood CitySan BrunoSan CarlosSan MateoSouth San FranciscoWoodsideUnincorporated Area

• Santa Clara CountyGilroyMorgan Hill• San Jose

• Santa Cruz County• Capitola• Scotts Valley• Unincorporated Area

• Solano County• BeniciaDixonFairfield• Rio Vista• Suisun City• Vacaville• Vallejo• Unincorporated Area

• Sonoma County CloverdaleHealdsburgSebastopolSonomaWindsorUnincorporated Area

• Stanislaus CountyCeresHughson• Modesto• Newman• Oakdale• Riverbank• Turlock• Waterford

• Tulare CountyPortervilleTulare• Visalia

• Yolo County• Davis• West Sacramento• Winters• Woodland• Unincorporated Area• •

Bringing HERO to your Community

• Our turnkey solution was designed to integrate seamlessly into your community. After you pass the resolution to adopt HERO, you should expect the Program to be available in just a few short months. We’ll be here all along the way – from Validation to Launch – to guide you through the process.

Community Adopts HERO

Judicial Validation is Passed

Staff Are Trained

Contractors are Trained & Registered

HERO Launches

in Your Community