How to finance energy management projects solving the lack of capital problem

How to Finance Energy Managment Projects How to Finance Energy Managment Projects Solving the “Lack of Capital Problem” Eric A Woodroof, Ph.D., C.E.M., CRM Albert Thumann, P.E., C.E.M Library of Congress Cataloging-in-Publication Data Thumann, Albert How to finance energy managment projects : solving the “lack of capital problem” / Albert Thumann, Eric A Woodroof 1st ed p cm Includes bibliographical references and index ISBN 0-88173-701-1 (alk paper) ISBN 0-88173-702-X (electronic : alk paper) ISBN 978-1-4665-7153-2 (taylor & francis distribution : alk paper) Energy conservation Finance Project management I Woodroof, Eric A II Title HD9502.A2T5196 2012 658.2’6 dc23 2012025797 How to Finance Energy Managment Projects / Eric A Woodroof, Albert Thumann ©2013 by The Fairmont Press, Inc All rights reserved No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the publisher Published by The Fairmont Press, Inc 700 Indian Trail Lilburn, GA 30047 tel: 770-925-9388; fax: 770-381-9865 http://www.fairmontpress.com Distributed by Taylor & Francis Ltd 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487, USA E-mail: orders@crcpress.com Distributed by Taylor & Francis Ltd 23-25 Blades Court Deodar Road London SW15 2NU, UK E-mail: uk.tandf@thomsonpublishingservices.co.uk Printed in the United States of America 10 ISBN 0-88173-701-1 (The Fairmont Press, Inc.) ISBN 978-1-4665-7153-2 (Taylor & Francis Ltd.) While every effort is made to provide dependable information, the publisher, authors, and editors cannot be held responsible for any errors or omissions for Bella… v Table of Contents Foreword: By Al Thumann, PE, CEM ix Contributors: xi Part I: Why & How .1 Chapter 1: If You Read Anything… Do This First Chapter 2: A Simple Introduction to Financing Energy Management Projects .7 Part II: Tools And Techniques 53 Chapter 3: Choosing the Right Financing and How to Use Energy Star Tools .55 Chapter 4: The Evolution of Performance Contracts as a Financial Solution 85 Chapter 5: Power Purchase Agreements for Solar Electric Systems .97 Chapter 6: PACE Financing 115 Chapter 7: How to Make it Easy for the Lender to Work with You 143 Part III: Extra Information That Can Make the Difference Between “Yes” and “No” .155 Chapter 8: How Energy Projects Improve Stock Prices .157 Chapter 9: Energy Conservation Also Yields: Capital, Operations, Recognition and Environmental Benefits 169 Chapter 10: Overcoming the Barriers That Delay “Good” Projects 189 Chapter 11: Opportunities Via Codes, Standards and Legislation 201 vii Appendix A: Fundamentals: Time Value of Money Calculations .223 Appendix B: Links to M&V Guidelines 305 Appendix C: Energy Auditing Basics 307 Appendix D: Sample Project Development Agreement 325 Appendix E: A Sample Performance Contract .331 Appendix F: Explanations of Sample Performance Contract .353 Index .371 viii Foreword As Executive Director of the Association of Energy Engineers (AEE), I have witnessed major changes in project financing In 1977 when AEE was started, performance contracting was not widely accepted—energy project financing relied on ”shared savings” but lacked the measurement and verification component With the passage of the National Energy Policy Act of 1992, the federal government spearheaded the acceptance of “Energy Service Performance Contracting.” Today the energy manager can avoid many of the financing pitfalls of the past and utilize proven performance contracting methodologies How to Finance Energy Management Projects provides indispensable guidance on how to overcome barriers, how to choose the right financing options, and how to understand a performance contract agreement By using this reference, the reader will gain the tools necessary to implement energy efficiency and clean energy projects Albert Thumann, PE, CEM Executive Director Association of Energy Engineers ix Appendix F 367 operates as designed but that the Utility will not be responsible for indirect or consequential damages that may arise if the ECM operates improperly In addition, this Section points out that the Utility will not be liable if damages arise from the Government’s negligence WR.4 Utility Default—Self Explanatory WR.5 Prompt Payment—Self Explanatory WR.6 Disputes—Self Explanatory WR.7 Differing Site Conditions—Sections WR.4-7 paraphrase and reference FAR provisions that are often included by reference in contracts between Utilities and the Government They are explicitly cited in the Civilian Model Agreement because they are important issues to the parties as well as financiers FINANCING AND PAYMENT PROVISIONS FP.1 Energy Savings and Financing—It is envisioned that the savings from the ECM will exceed the payments to the Utility The Civilian Model Agreement recognizes that the repayment period for financing of the ECM should not exceed 10 years FP.2 Financial Incentives, Rebates, and Design Assistance—This Section confirms that the Government will receive the same rebates, incentives and other services that other Utility customers in the same class receive FP.3 Calculation of Payment—Government payments will be determined using the ECM Cost These payments will not begin until two events have occurred: 1) the Government takes Possession of the ECM and 2) ECM Performance Verification Testing is successfully competed FP.4 Buydown—It is critical to the financiers that the consequences of a buydown be clearly defined in the agreement between the Government and the Utility FP.5 Pre-Acceptance Termination—As noted elsewhere in this Explanation, financiers want to know with certainty what they will be paid should 368 How to Finance Energy Management Projects the Government terminate the Task Order prior to Acceptance It is impossible to develop a schedule that would be able to predict how many construction dollars would have been spent at any one point in time Therefore the Civilian Model Agreement recommends that the parties develop a formula that can be applied to the actual dollars spent to determine what the Government will pay should it decide to terminate the Task Order prior to Acceptance FP.6 Post-Acceptance Termination—This Section describes what will happen should the Government terminate the Task Order It recommends that a Termination Schedule be developed by the parties so that there will be a pre-agreed sum the Government will pay upon termination The creation of a Termination Schedule will be critical to attracting financing and will be required by the financiers FP.7 Assignment of Claims—In most cases, Utilities will finance ECMs using third party financiers rather than internal cash The financiers provide the money for the project in exchange for the Utility assigning to the financier all of the payments the Government is obligated to make under its agreement with the Utility In order for an assignment of claims to be successful, the parties need to use specific language and follow specific procedures FP.8 Novation—A novation agreement is one in which the parties agree that the Civilian Model Agreement shall be binding even if the Utility is purchased by or merges with another company The Civilian Model Agreement recommends a novation clause be considered, but it is not necessarily required SPECIAL REQUIREMENTS SR.1 Environmental Protection—This Section and the ones that follow set out the Utility’s and Government’s obligation regarding environmental protection issues and hazardous wastes SR.2 Environmental Permits—It is the Utility’s responsibility to acquire all of the necessary environmental permits and the Government’s responsibility to help where necessary Appendix F 369 SR.3 Handling and Disposal of Hazardous Materials—It is the Government’s responsibility to handle and dispose of pre-existing hazardous materials The Government agrees that the Utility has assumed no obligation to search for pre-existing hazardous materials and if the Utility discovers such materials during its work, it shall stop Work and notify the Government SR.4 Asbestos and Lead-Based Paint—Asbestos and Lead-Based Paint may be the exception to the rule that the Government is responsible for removal of hazardous wastes This Section offers some suggestions as to how the Government and Utility may agree to have the Utility perform the testing, removal or abatement of lead-based paint or asbestos SR.5 Refrigerants, Fluorescent Tubes and Ballasts—Self Explanatory Index A abnormal return of firms announcing energy management projects 162 acceptance 332 additional benefits 169, 170 after-tax cash flows (ATCF) 16, 230, 231 after-tax cost of capital 25 after-tax cost of debt financing 25 after tax IRR 110 alternative research and development 210 American Recovery and Reinvestment Act (ARRA) Public Law 111-5 203 American Recovery and Reinvestment Act of 2009 (ARRA) 69 American Society of Heating, Refrigerating, and Air Conditioning Engineers (ASHRAE) 215, 306 analysis intervals 160 annual worth 254 application guidance manuals 306 arrears 10 ASHRAE Standard 55 218 ASHRAE Standard 62 218 ASHRAE Standard 90.1 216 ASHRAE Standard 90.2 216 assignment rights 152 attention 190 audit data sheets 320 audit, one-day 309 audit process 315 audit report 321 audit tools, basic 319 audit workbooks 317 B balloon payments 75 bankable project 143 bank financing within PACE programs 127 bargain price 11 bargain purchase option 11, 30 baseline energy use 132 baseyear data 93 before tax cash flows (BTCF) 231 benchmark audit 307, 309, 315, 318 benchmark indices 308 benefits from a focused effort on energy conservation 184 Better Building Initiative 129 bonds 9, 14, 22, 42 buyers 27 borrowing rate British thermal units 85 building information 322 Building Owners and Managers Association (BOMA) 61 building value improved 171, 180 Building Upgrade Value Calculator 59, 61 bull market 161 Buonicore, Anthony J xiv Business Credits for Renewable Energy Property 204 371 372 How to Finance Energy Management Projects C call to action 193 Capehart, Barney xvi capital 169 budget process 57 constraints expense budget dollars 57 expenses 56 lack of lease 11, 14, 28, 30, 32, 43, 48, 76 capital-intensive modifications 310 detailed analysis of 310 capital investment, avoided 171, 178 capital investment characteristics 225 capital investment cost 226 capital investment decisions 224 capitalization rate factor 172 capitalize 48 carbon capture and sequestration 210 carbon-neutral 179 carbon offsets, avoided purchases 171, 179 Carr, Millard xvii carrying charge 332, 356 cash flow 4, 9, 110 diagram 226 predictable 158 Cash Flow Opportunity Calculator 59 Cash Flow Opportunity (CFO) Calculator 63 CEOs 85 certification programs 313 Certified Energy Auditor (CEA) 313 Certified Energy Auditor, Masters level (CEAM) 314 Certified Energy Auditor in Training (CEAIT) 313 Certified Energy Manager (CEM®) 314, 315 CFO 85 calculator 63 chattels 75 Clean Energy Finance and Investment Authority (CEFIA) 79 clean renewable energy bonds 204 climate change 217 codes and standards 215 collateral 11, 151 Commercial Building Energy Consumption Survey (CBECS) 60 commercial leasing 67, 75 commercial real estate (CRE) market 115 common barriers 189 compound interest 238 computer simulation 308, 313 Conferences of the Parties 217 configuring 193 Connecticut Energy Efficiency Fund 79 constrained analysis, observations 269 construction agreement 103 construction/installation 147 construction/installation, funding 150 consumption data 312 contracting officer 332, 356 contracting officer’s representative (COR) 332, 356 contracting officer’s technical representative (COTR) 332 Index contractor 99 Coombes, James xiv CORE benefits 169 Corporate Average Fuel Economy (CAFE) 207 cost-competitive 158 cost factors 342 cost of borrowing 15 cost of capital 15 cost of delay counterparty risk 147 coupon interest payment 22 covenants 57 creditors 27 credit risk 149 cutting-edge strategies 189 D debt financing 15 debt-to-equity 57 Decision Guide 59 default protection 129 Department of Energy’s Weatherization Program 208 depreciation 48, 49, 231, 232 deterministic analysis constrained 264 unconstrained 262 developer 99 distributed generation (DG) 143 dividend payments 27 dividends 10, 14 domino effect 36 down payment 21 E ECM 320, 321 determination 132 economic analysis 261 373 economic analysis, capital lease 35 economic analysis, for a bond 26 economic analysis, loan with 20% down payment 24 economic analysis, loan with no down payment 23 economic analysis of projects 223 economic analysis selling stock 29 true lease 33 under inflation 278 using retained earnings 20 education and collaboration 190 elevated parking structure 114 EMP characteristics 45 end user 144 energy analysis 310 energy and water savings, options 305 energy audit 34, 307, 321 types of 307 energy conservation 169, 170 measure 323, 332, 356 measure cost 332, 356 project 333, 357 energy efficiency 143 loan underwriting 131 provisions 214 scorecard map 80 Energy Independence and Security Act of 2007 207 Energy Information Administration 60 energy intensity 202 reducing 206 energy management goals 212 energy management projects 7, 157 energy performance contracts 67, 71 374 How to Finance Energy Management Projects energy performance contracts, types of 73 Energy Policy Act of 2005 212 energy savings in buildings and industry 208 energy savings in government and public institutions 209 energy savings insurance 130 energy service agreement 125 energy service companies (ESCOs) 34, 48, 87 Energy Services Coalition 72 Energy Star® 6, 55 label 58 program 58 tools 8, 58 energy survey and analysis 310 energy systems data 312 energy transportation and infrastructure 211 energy use index (EUI) 309, 318 engineering economy enhanced image 171, 179 environmental benefits 169 Environmental Protection Agency 209 EOY = End of Year 16 EPC company 100 EPC price 113 equipment purchase 19 equipment residual value 15 equity financing 15 option 25 equity investors 99 equity/residual risk 152 equivalence 247 ESCO 6, 34, 88, 89 energy efficiency expertise 91 fee 95 financing 123 financing using the PACE structure 124 risk assessment 92 services 90 evaluation study 326 event-study methodology 166 example solar project financials (SPF) analysis 106 Executive Order 13423 205 Executive Order 13514 202 executive orders 201 executive summary 322 extended payment plans 32 external personnel 185 external risk 15 F facility characteristics 45 feasibility study 325 federal energy management 212 federal fleets, management 206 federal investment tax credit (ITC) 105 Feed-In Tariff (FIT) 98 FEMP 306 finance lease 76 finance rate financial arrangements pros and cons 42 strategic issue with selecting 44 financial drivers of PPAs 104 financial health 21 financial lease 48 financial instruments 67 financial ratios 57 financial structure 95 financing 7, 75, 106 Index and payment provisions 347 cash flows cost of Financing Programs Decision Guide 62 first-cost fixed payment plan 12 fixed tilt 104 fixed shared savings agreement 74 flexible payment plan 12 FP.1 Energy Savings and Financing 347, 367 FP.2 Financial Incentives, Rebates, and Design Assistance 348, 367 FP.3 Calculation of Payment 349, 367 FP.4 Buydown 349, 367 FP.5 Pre-Acceptance Buyout 349 FP.5 Pre-Acceptance Termination 367 FP.6 Post-Acceptance Buyout 349 FP.6 Post-Acceptance Termination 368 FP.7 Assignment of Claims 350, 368 FP.8 Novation 350, 368 FREE bonus 193 free money free tax and utility incentives/rebates 196 Frito Lay’s Sun Chips brand 186 G GC.3 Term 334, 358 GC.4 Services to be Provided by the Utility 334, 358 GC.5 Information 334 GC.6 Relationship of Parties 334, 358 375 GC.7 Subcontractor Selection 359 GC.8 Authority of Contracting Officer 335, 359 GC.9 Ownership of Work Product 335, 359 GC.10 Responsibility for Operation and Maintenance 335 GC.11 Government Projects 335 GC.12 ECM Performance Verification 335, 360 GC.13 Emission Credits 336, 360 GC.14 Order of Precedence 336, 360 GC.15 Preliminary Audits 336, 361 GC.16 ECM Proposal 336, 361 GC.17 Energy Conservation Projects (ECPs) 337, 361 GC.17.1 ECM Restrictions 338, 362 GC.17.2 Facility Performance Requirements of ECMs 339 GC.18 Task Orders 339, 362 GC.19 ECM Feasibility Study Phase 340, 363 GC.20 ECM Engineering and Design Phase 363 GC.20.1 Verification of Floor Plans 343, 363 GC.20.2 Government Design Review 343, 364 GC.20.3 Site Plans 343, 364 GC.20.4 ECM Implementation Proposal 343, 364 GC.21 ECM Implementation Phase 344, 364 GC.21.1 Pre-Work Requirements 344, 364 GC.21.2 Interruptions 344 GC.21.3 Construction Documentation 344 376 How to Finance Energy Management Projects GC.21.5 Water Conservation Measures 345, 365 GC.21.6 Operation and Maintenance Manuals 345 GC.21.7 Government Personnel Training for ECPs 345, 365 GC.21.8 As-Built Drawings 345 GC.21.9 Installation and Acceptance 345, 365 GC.22 Operation and Maintenance Phase 346, 365 GC.23 Required FAR Clauses 346, 365 gradient series 245 green benefits 198, 199 green jobs 211 green projects 189 gross domestic product (GDP) 116 ground 104 ground mount 114 guaranteed fixed dollar savings 37 guaranteed fixed energy (MMBtu) savings 37 guaranteed savings agreement 73 guarantee results 12 guideline lease 28, 76 H Hansen, Shirley J xiii Hatcher, Caterina (Katy) xii Healthy High Performance Schools 209 Heffington, Warren M xvi host 48 customer 98 I IAQ 218 incentive revenue 108 incentives and tax benefits, government and utility 105 indemnity 327 indifference 247 indoor air quality 217 standards 217 indoor environmental quality (IEQ) 306 industry standards or protocols 132 in-house salaried personnel 185 initial cost obstacle installer 100 installment loan 11 insurance 150 integrator 100 intellectual property 36 interest 151 charge 15 internal rate of return 8, 110, 255 International Energy Agency 89 international energy programs 210 International Performance Measurement and Verification Protocol (IPMVP) 218, 305 interpolating interest tables 273 investment credit in lieu of production credit 204 investment grade audit 90, 92, 312, 313 investment tax credit (ITC) 99 investor reaction 164 IPMVP 305 J joint ventures 158, 195 K key capital markets provisions 153 Kyoto Protocol 217 Index 377 L Lawrence Berkeley National Laboratory 79 lease 28 payments 10 period 30 leasing 28 company 10 lenders 48, 99 lessee 10, 48, 50, 76 lessor 10, 48, 50 Level II Audit leverage 57 leveraged lease 49 life-cycle cost 8, 224 calculations 209 line of credit 49 liquidity 49, 57 loans 9, 21, 14, 42 long-term debt 68 of return) 49 measurement and savings verification 38, 90, 94 mergers 158 minimum attractive rate of return (MARR) 15 model agreement explanation 355 Modified Accelerated Cost Recovery Schedule (MACRS) 105 modified accelerated cost recovery system (MACRS) 16 monetizing 103 money 190 morale mount 104 movable property 75 multi-tenant 122 MUSH 140 markets 80 M&V guidelines 38 M MACRS depreciation percentages 18 percentages 234 property classes 233 maintenance 150 maintenance, administrative and capital benefits 185 maintenance labor costs, reduced 170, 176 maintenance material costs, reduced 169, 170, 175 Managed Energy Service Agreements (MESAs) 74 management of energy policy, improved 210 marketing 190 MARR (minimum attractive rate N National Association of Energy Service Companies 79 National Defense Authorization Act (NDAA 2007) 211 Natural Gas Policy Act 220 net present value (NPV) 8, 49, 51, 52 New Clean Renewable Energy Bonds (NCREBs) 69 new metering (NEM) 98 new product lines 158 non-annually compounded interest 275 not-for-profit organizations 66 NY State Energy Research and Development Authority (NYSERDA) 72 378 How to Finance Energy Management Projects O obligor 144 credit risk 146 occupied period 333 off-balance sheet 28 financing 50, 76 Office of Commercial High Performance Green Buildings 208 O&Ms 320, 321 operating 28 expenses 56, 106 lease 10, 50, 76 operation and maintenance 93, 169, 321 measures 323 Oregon Department of Energy 72 organization-wide budget data 181 outsourcing 103 P PACE 77 financing 115 underwriting criteria 122 tax-lien financing 118 parking structure 104 Park, Ryan xiii par value or face value 50 pass-through operating expense 125 pay-as-you-go 67 pay-as-you-use 67 payback calculations 92 payback period 260 payment logistics 150 payment obligations 149 penalty costs 36 people factor 310 performance contracts 6, 8, 12, 14, 34, 43, 88, 92 performance risk 148, 149 planning horizon issue 270 political consequences 57 Portfolio Manager 59, 308, 318 positive cash flow 91 possession 333, 357 postponed projects 189 post-site work 315, 320 power purchase agreement (PPA) 67, 75, 97, 98, 103 provider 99 rate 103 revenue 108 sponsor 99, 102, 103 Pratt, David B xviii preferred stock 50 preliminary energy use analysis 309 prequalification criteria 92 presentation point present worth 251 pre-site work 315, 316 procurement costs, avoided 171, 178 production of biofuels, increased 207 poduction tax credit 203 productivity profit margin 3, 57 profits 157 project development agreement 34, 74 project financing 50 project life 15 project management 94 project measures of worth 251 project risk 15 Property Accessed Clean Energy (PACE) 77 Index public announcements 158 publicity gaining 157 public press, free 199 public relations 171, 179 public-sector organizations 70 Public Utilities Regulatory Policies Act (PURPA) 219 Public Utility Holding Company Act of 1935 220 purchase PV 104 Q Qualified Energy Conservation Bonds 69, 205 Qualified School construction Bonds (QSCBs) 69 quality assurance evaluator 333, 357 quality control 333, 357 quantitative factors 45 quantity 93 R reciprocal business agreements 195 recognition 169, 171, 179 regulations 201 renewable energy grants 204 renewable energy, increasing use of 206 renewable fuels standard (RFS) 207 rent 10 resources restrictive covenants 57 retained earnings 14 (cash on-hand) 19 using 20, 42 return on investment (ROI) 312 379 returns, abnormal 161 revenue bonds 68 revenue-enhancing projects 157 risk 94 analysis 280 roof 104 mount 113 Royal Dutch Shell 87 rules of thumb 43 S sales taxes 186 sales taxes/environmental penalties, reduced 171, 179 salvage value 226 Sarbanes-Oxley Act of 2002 58 savings cash flow 9, 11 savings investment 258 savings = waste Section 501(c)(3) 66 secured loan 50 security 151 deposit 11 selling stock 10, 14, 25, 42 sensitivity analysis 280 series cash flows 242 shared savings 88 agreement 74 simple interest 236 simple payback single sum cash flows 240 site sketch 318 site-specific factors 169 site visit 315, 319 small business energy programs 211 smart grid 211 soft benefits 185 solar contractor 102 380 How to Finance Energy Management Projects solar incentives 105 solar PPA 98 solar project financial drivers 107 solar project profit and loss (P&L) 109 solar services agreement (SSA) 102 special purpose entity (SPE) 99 sponsor equity investors 99 SR.1 Environmental Protection 350, 368 SR.2 Environmental Permits 350, 368 SR.3 Handling and Disposal of Hazardous Materials 351, 369 SR.4 Asbestos and Lead-Based Paint 351, 369 SR.5 Refrigerants, Fluorescent Tubes and Ballasts 352 standard audit 308 standards 201 for appliances and lighting, improved 207 stock 10 price 7, 157 price returns, abnormal 158 structural risk 149 submetering 312 summary of additional benefits 181 sustainable buildings, design and operation 206 system purchase 103 T tangible benefits 179 task order 333, 356 taxable income 16, 39 tax and utility incentives/rebates, free 196 tax credit bonds 69 tax-deductible business expense 28 tax deductions 19 tax equity investors 99 taxes 16, 150 tax-exempt lease-purchase agreement 69, 70 tax lease 76 tax-oriented lease 50 tax provisions 213 technical factors 341 technical representative 356 technology risk 148 Temporary Increase in Credit for Alternative Fuel Vehicle Refueling Property 205 termination provisions 151 termination schedule 333, 357 Texas’ LoanSTAR Revolving Loan Program 79 The Energy Policy Act 201 The Energy Policy Act of 1992 213 The Secret Benefits from Energy Conservation 185 third-party financing 11 third-party lease 12 third-party ownership 99 Thoma, Jim xv time value of money 6, 223 concepts 235 factors, summary 247 time zero Title 151 Title I 207 Title II 207 Title III 207 Title IV 208 Title IX 210 Title V 209 Index Title VI 210 Title VII 210 Title VIII 210 Title X 211 Title XI 211 Title XII 211 Title XIII 211 tracker 104 traditional funders 78 triple-net-lease 121 true lease 10, 11, 28, 30, 50, 52, 76 true shared savings agreement 74 Turner, Wayne C xvi turnkey price 113 types of energy audits 307 U uniform series cash flows 243 U.S Department of Housing and Urban Development (HUD) 72 U.S Environmental Protection Agency (EPA) 55 utility 100 utility summary 322 V vehicle fuel economy, improved 207 vendor-financed 11 381 W WACC (weighted average cost of capital) 51 walk-through analysis, level one 309 walk-through audit 308, 309 warranties and remedies 346 water intensity, reducing 206 Wingender, John R Jr xv Woodroof, Eric A xi, Woody Woody’s Winning Way WR.1 Warranties 346, 366 WR.2 No Other Warranties 346, 366 WR.3 Utility Limitation of Liability 347, 366 WR.4 Utility Default 347 WR.5 Prompt Payment 347 WR.6 Disputes 347 WR.7 Differing Site Conditions 347, 367 WR.8 Suspension of Work 347 www.DSIREusa.org www.ProfitableGreenSolutions com Z Zobler, Neil xi ... for the Guide to Energy Management textbook, founding editor of the Encyclopedia of Energy Engineering and Technology, and co-author or editor of five other energy books Dr Capehart is the creator... negotiate to buy the truck at the fair market value If PizzaCo wanted to secure the option to buy the truck (for a bargain price) at the end of the lease, then they would use a capital lease A capital. .. How to Finance Energy Managment Projects Solving the Lack of Capital Problem Eric A Woodroof, Ph.D., C.E.M., CRM Albert Thumann, P.E., C.E.M Library of Congress Cataloging-in-Publication