San Francisco becomes a leader in energy financing for commercial buildings

 San Francisco becomes a leader in energy financing for commercial buildings

San Francisco buildings qualify for affordable energy and water upgrades
starting with Johnson Controls' project for Prologis at Pier 1

PR Newswire

SAN FRANCISCO, Nov. 13, 2012

SAN FRANCISCO, Nov. 13, 2012 /PRNewswire/ --San Francisco has launched a
green financing program to help its estimated 226 million square feet of large
commercial buildings become among the country's most energy and water
efficient. Buildings consume 40 percent of our nation's energy use, according
to the U.S. Department of Energy.


The Port of San Francisco's historic property at Pier 1, the corporate
headquarters of Prologis Inc., will be the first energy efficiency upgrade
funded through the city's GreenFinanceSF program that uses Property-Assessed
Clean Energy (PACE) bond financing. Johnson Controls, the global leader in
delivering solutions that increase energy efficiency in buildings, will design
and implement the project.

PACE financing helps building owners access capital for a wide range of energy
upgrades that can pay for themselves with reduced operating costs. San
Francisco established its PACE district in 2010 and was one of the first U.S.
cities to launch an "open market" PACE program last year, making $100 million
in bonding capacity available to the city's commercial property owners. The
city recently joined a new statewide alliance among 14 California counties and
126 cities to help attract owners and lenders to take advantage of the
benefits PACE brings.

"Since buildings contribute 53 percent of greenhouse gas emissions in San
Francisco, it is essential that we address inefficiencies in the built
environment. Projects like this exemplify the successful combination ofour
policies and programsto bothreduce emissionsand helpsave businesses
money.As more businesses take similar action,we'll continue togrow our
economy while decreasing carbon emissions to help ward off the worst effects
of climate change," said Melanie Nutter, director of the San Francisco
Department of the Environment.

Johnson Controls expects the retrofit project at Pier 1 to reduce annual
energy costs by over $98,000 and reduce purchased energy by 32 percent.
Upgrades include retrofits for 1,500 lighting fixtures, a 200-kilowatt rooftop
solar array and improvements to the building's heating, ventilation and air
conditioning systems. During its construction phase, the project is expected
to create nearly 30 local jobs and $3.7 million in additional economic
development in California, based on multipliers developed by the U.S.
Department of Commerce.

"San Francisco has a whole new claim to fame – in addition to the Bay and the
bridges, it will be known for better buildings, with the help of PACE," said
Chuck McGinnis, director commercial energy solutions, Building Efficiency,
Johnson Controls. "Billions of square feet of office space could be
transformed into more valuable property to save money, create jobs and reduce
greenhouse gas emissions and it's all beginning at Pier 1."

The project cost is approximately $1.6 million, of which 90 percent is being
funded by PACE bonds. The 20-year, low-interest bond was purchased by Clean
Fund of San Rafael Calif., a specialty PACE finance provider and will be paid
off through a special property tax assessment. With PACE, if the ownership of
the building changes, payments get transferred to the new owner.

Prologis has long been committed to sustainable development at Pier 1. The
facility was designed in the late 1990s with many sustainable features,
including preservation of the pier's existing warehouse, which launched a
waterfront redevelopment plan in San Francisco that continues today.
Participation in PACE is an extension of this commitment and Prologis hopes it
will provide a catalyst for the program to gain traction and encourage other
companies in San Francisco to make similar cost-effective and
environmentally-beneficial improvements.

Increasing energy efficiency financing represents one of the largest
opportunities for the U.S. to expand economic growth and create jobs. For
building owners, energy efficiency lowers operating costs, increases
occupancy, enhances building value and increases financial returns. The PACE
finance structure provides long-term, upfront financing that allows many
energy efficiency projects to generate positive returns from the start. PACE
also overcomes common project barriers such as insufficient credit and split
incentives where tenants pay the utility bills and buildings owners might not
see immediate incentives for major energy investments. Additionally, if
building ownership changes, PACE payments get transferred to the new owner.

For more information, visit:

About Johnson Controls 

Johnson Controls is a global diversified technology and industrial leader
serving customers in more than 150 countries. Our 162,000 employees create
quality products, services and solutions to optimize energy and operational
efficiencies of buildings; lead-acid automotive batteries and advanced
batteries for hybrid and electric vehicles; and interior systems for
automobiles. Our commitment to sustainability dates back to our roots in 1885,
with the invention of the first electric room thermostat. Through our growth
strategies and by increasing market share we are committed to delivering value
to shareholders and making our customers successful. In 2012, Corporate
Responsibility Magazine recognized Johnson Controls as the #5 company in its
annual "100 Best Corporate Citizens" list. For additional information, please

Kari Pfisterer
+1 414-524-4017

SOURCE Johnson Controls

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