AGC Surety Connection Project at California State University Chico
The efficiency for the program will be enabled by the digital process employed and data interoperability, from online contractor application and construction monitoring, to ongoing system performance that can impact cash flow.
Documentation required for participation
Action Plan and Request of Stakeholders:
Participate in drafting the contest outline and objectives.
Participate in the contest as a judge, and help make sure the shareware the entrants produce has the most value possible, aligns with utility and stakeholders systems.
XBRL-CET is a volunteer based working group to leverage the DOE Green and Orange Buttons, the Blue Button, along with the DATA Act and other mandates, and structures like On-Bill Financing and On-Bill Repayment programs, to help drive consensus for open standards based data interoperability to influence the direction of data standards.
Those data standards, along with specially tailored surety products and services, can then be employed by the On Bill program structure (“On Bill Surety Structure”) for greater efficiency and improved risk management, which can then attract capital at very competitive terms and act as a model for other solar programs.
The objective of the On Bill Surety Structure is encourage the utility rate payer to invest in solar and clean energy by simplifying procurement and ownership by de-risking both the construction and loan repayment default exposure by utilizing surety to attract low cost capital for solar and clean energy, particularly in neighborhoods where energy costs have a significant economic impact.
To promote engagement, and to create a shareware prototype application to prompt others to develop applications following the Green Button model, we are coordinating the IoT - Data Interoperability for Climate Change Contest across industry segments that will be good for all stakeholders, establish standards that are public resources that in turn promote application development and enables innovative data analytics for new products and services.
The Contest mission statement:
To help fight climate change by making solar more bankable while helping small business, veterans and promoting diversity by establishing the data set for a company profile and IECRE 61724 Data set for solar system performance.
Nationally the end result of the On Bill Surety Program and Contest will be improved access to capital for energy efficiency projects and to increase the bankability of solar.
For California it will help meet the of 50% renewable energy requirement as called for under SB350.
For investors and financiers it will provide safe and reliable returns, with structures in place to administer the loan portfolio, and efficient risk bearing management of defaults.
For diverse, small and veteran owned companies it will improve access to surety and bank credit for securing opportunities that help businesses grow and prosper.
For utilities, project owners and general contractors the supply chain will have a larger pool of diversity with qualified companies that have financial backing to mitigate the risk of non-performance or default.
Short Term Construction Financing and De-Risking Project Outline
The collaboration will explore developing a significant capital commitment as a short term construction finance lending pool along with a surety program to de-risk the construction phase for solar and energy efficiency projects administered either through internal funding or external funding, then utilizing the On Bill program for the construction loan take out financing.
Term Financing and De-Risking Project Outline
The collaboration will explore developing a significant revolving capital commitment as take out financing for the construction loans and surety program for payment of utility bills, with administration of the portfolio of loans though the On Bill structure. The term of the loans will be between five and ten years depending on regulatory guidelines for the On Bill program.