SB-Cal Core Issue Area          Success Metrics:

  Energy:  Increasing CA small    business sustainability with  comprehensive energy efficiency investments, substantially lowering energy costs while increasing profit

Access to Capital: More CA small businesses utilize OBF capital for efficiency improvements than 2006 IOU Pilot programs are currently projecting

San Francisco Chronicle September 23rd, 2005 article on upcoming On Bill Financing programs in California

CA OBF Development Background and Early Progress

SB-Cal Core Issue Areas Addressed: Energy, Access to Capital

This SB-Cal ACTION INITIATIVE is designed to continue the efforts we led that have resulted in On Bill Financing (OBF), Pilot programs being introduced to CA small businesses by CA investor owned utilities starting in 2006. SB-Cal will work to assure CA OBF programs are deemed successful and that more funds are allocated beyond the current $ 31.5 M by June 30th, 2007.  Began January 15th, 2004

Problem: 

• Energy costs rising: electricity, gas, water
• Too much wasted energy consumed in too many CA buildings where high HVAC, refrigeration  water and lighting costs diminish CA competitiveness compared to other states with lower energy costs,
• Small businesses do not have the ability to invest substantial funds for comprehensive energy efficiency investments that can lower monthly energy costs,
• Current available programs underutilize potential for end user investment by offering very high incentives or no cost targeted installations, limiting available funds to a smaller pool of CA small businesses.

Action Log:

• 8/29/05 - Meeting at PG&E to offer planning help with OBF program designs
• 8/29/05 - Phone conference bringing together PG&E with Dennis O'Connor, Manager of the United Illuminating Small Business Energy Advantage On Bill Financing program in CT
• 8/30/05 - Meet with Frank Spasaro at SDG&E to address OBF design issues
• 9/22/05 - Projected date for final CPUC decision regarding 2006-08 energy efficiency programs
• 9/22/05 - San Francisco Chronicle September 23rd, 2005 article on upcoming On Bill Financing programs in California
• 10/5/05 - SB-Cal presentation on OBF to L.A. County Small Business Commission
• 10/6/05 - SB-Cal presentation on OBF to Redding Area Economic Development Department
• 4/5/06 - OBF update offered by F.Spasaro of SDG&E at statewide PAG - Department of Ratepayer Advocates requests details from H. Ryan
• 8/7/06 - Update on the CT United Illuminating Small Business Energy Advantage program which SB-Cal used as the template for a successful OBF program.  For 2006, eligibility has been raised for ratepayers up to 250 kW maximum demand versus the earlier 150 kW limit.  The UI OBF program has also started offering "positive cash flow" where loans that may take, for instance, 13 months to pay down using neutral cash flow can be stretched to a 30 month re-payment schedule.
• 8/8/06  - Pacific Gas & Electric is not offering actual On Bill Financing in 2006, but has begun offering a loan program where PG&E pays the interest costs.  The pilot program is currently offered in limited PG&E ratepayer areas.  See the PG&E "Energy Edge" link for details.
• 8/8/06 SoCalGas/SDG&E provides an update at the August 1st PAG on requests to the CPUC for changes to the OBF program -
  nProposed Program Changes:

  ¨Raise loan ceiling from $25,000 to $50,000

  ¨Extend maximum loan term for qualified business and multifamily projects from 3 years to 5 years.

  ¨Change “credit” eligibility requirements from:

  nActive accounts for past two years . No more than 3 over-due notices and no disconnect notices in past 12 months. No deposit on hand   To:

  Active accounts for past two years  No disconnect notices in past 12 months. No deposit on hand