Financing ESPC Projects: Fundamentals for Federal Agencies  

Course ID: 
FEMPWS08202018J
Duration: 
2 Hours
Level: 
Introductory
Date: 
08-20-2018
Time: 
1:15 pm - 3:15 pm (EST)
Location: 

Cleveland, OH

FEMP IACET: 
0.2 CEUs
Take this Course: 

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Interest rates can represent a significant percentage of total energy savings performance contract
(ESPC) project costs and can vary widely among ESPC projects. With interest rates rising from recent lows, these projects are becoming even more significant. The projects appear to be low risk, so many agencies lack a good understanding of the factors that can lead to interest rate variations amongst different project types and energy service companies (ESCOs). In this workshop, leading financiers will inform agencies about the factors affecting project interest rates related to specific project types.

Instructors

Scott Foster, Managing Director, Bostonia Partners LLC   

Scott Foster is Managing Director at Bostonia Partners, LLC responsible for originating, structuring, and financing federal energy and infrastructure projects. Over the course of his career, he has completed over $5 billion of financings covering all asset classes essential to the U.S. Government. Marquee projects Scott spearheaded include: largest ESPC to date ($262 million) at Tinker AFB, commercial scale biomass cogeneration for DOE’s Savannah River Site, biomass gasification for DOE’s ORNL, renewable ESAs to reduce energy costs and provide energy resiliency and security for the U.S. Coast Guard (PR) and for the U.S. Army (WSMR), financing for submarine Fiber Optic System for USAKA, and financing for DOE’s ORNL Titan Cray supercomputer. Before joining Bostonia Partners, Scott was Senior Vice President and Managing Director of the Federal Business Unit at Hannon Armstrong Sustainable Infrastructure (HASI), responsible for originating and financing energy efficiency projects, renewable energy investments, information technology and telecommunication programs, transportation, modular buildings, and other federal projects. Before HASI, Scott was Vice President of Vendor Financial Services at GE Capital. Scott holds a B.A. and M.B.A. from Marymount University, and is a CPA. He served in the U.S. Navy, attended the Defense Language Institute, and served in the Army Reserve.

Josh Mersfelder, Director, Public Investment Team Lead, Hannon Armstrong   

Mr. Mersfelder leads the origination, structuring and execution of energy efficiency projects at Hannon Armstrong. Since 2008, he has been involved with closing more than 200 transactions with a value of over $3 billion, including over $2 billion in energy efficiency projects with the Government. He earned a Bachelor of Science in Finance degree from the University of Richmond in 2003, a Master of Business Administration degree from the University of Colorado in 2008. He holds Series 63 and 79 securities licenses.

Karen H. Gierhart, Managing Director, Energy Services, Banc of America Public Capital Corp   

Karen Gierhart is a Managing Director and Senior Leasing Sales Specialist for the Banc of America Public Capital Corp (BAPCC) Energy Services team, and is located in Providence, Rhode Island. Gierhart is responsible for business development and origination of energy efficiency, renewable energy, and information technology solutions for the federal government. Gierhart has over 28 years of experience in the leasing industry, with 23 of those years at Banc of America Leasing. Gierhart has held various management roles in sales, credit and capital markets. Prior to joining Bank of America Leasing, she worked in the capital markets group at PacifiCorp Capital. Gierhart has a B.A. in Economics from the University of South Florida.

Alan Riefenberg, Vice President-Sales, United Financial of Illinois, Inc.   

Mr. Riefenberg has more than 30 years of experience in the fields of municipal tax-exempt, commercial/industrial, and U.S. Government structured financings. As Vice President, Sales at United Financial for the past 25 years, he has been instrumental in managing several key contractor relationships responsible for originating energy efficiency project financing opportunities at Government facilities, with total contractor project costs in excess of $2 billion dollars. Mr. Riefenberg received his Bachelor’s Degree in business administration/finance from Loyola University of Chicago, School of Business.

Bruce Gross, Executive Vice President, Dominion Federal Corporation   

Bruce W. Gross is Executive Vice President of Dominion Federal Corporation in McLean, Virginia. Dominion Federal provides financial, marketing and consulting services to Federal Government prime contractors and Federal Government agencies. Bruce has more than 30 years of experience in the government market. He has been involved in the financing of over $1 billion of energy services projects. Bruce earned a Bachelor of Science degree in Finance from the Warrington College of Business at the University of Florida.

Learning Objectives

Upon completion of this workshop, attendees will:

  • Sources of project financing and associated considerations;
  • Determinants of interest rate spreads (above market index);
  • Impacts on interest rate spreads related to project size; energy conservation measurements, measurement and verification, and ESCO characteristics;
  • Feasibility of proactively addressing financing considerations in structuring notice of opportunities and selecting ESCOs;
  • Structuring financier bidding to help obtain lowest possible interest rate spreads;
  • Agency payment issues and;
  • Other agency task order finance concerns.
Federal Agencies and Facility Criteria: