Renewable Energy Project Appraisals, Valuation and Cost Segregation Studies

Renewable Energy Project Appraisals, Valuation and Cost Segregation Studies

April 3-4, 2023 | Online :: Central Time

“EUCI programs provide an opportunity for strong leaders to meet, learn, and collaborate. Highly recommend their events.” Director – Valuation & Advisory, Cushman & Wakefield

Appraisals and cost segregation studies: project developers, investors and sponsors, lenders and other parties essential to these deals pin most of their proprietary decisions on this critical valuation component. 

This 1½ day symposium will examine the various dimensions that make a project “bankable”:

  • Dominant appraisal methodologies
  • Appraisal nuances among the various classes of renewable energy project types
  • Accounting for differences in used, mature and repowering assets vs. new project assets
  • Best practices for assigning costs appropriately through cost segregation studies
  • What boundaries and roles that different partiesproject developers, investors and sponsors, lenders and advisors play in the formulation of a sound, enduring appraisal
  • Impact of Inflation Recovery Act and other policy initiatives on appraisals and cost segregation studies

Project developers, investors and sponsors, lenders and other parties involved in renewable energy project development and M&A will glean compelling insights to ensure the formulation of sound, enduring best practices related to appraisal and related cost segregation studies.

Learning Outcomes

  • Review the three approaches to value of an appraisal
  • Explore the role of an appraisal in M&A and tax equity financing transactions
  • Assess the manifold externalities that can affect the appraisal
  • Analyze fair market value for debt underwriting purposes
  • Examine appraised values for tax equity investment purposes
  • Evaluate the distinctions between cost segregation and cost certification studies to assign costs appropriately
  • Discuss the use of appraisals for property tax purposes
  • Identify prominent distinctions in appraisals between various renewable energy resources and their development cycle

Agenda

Monday, April 3, 2023 : Central Time

12:45 – 1:00 p.m.
Log In

1:00 – 5:00 p.m.
Course Timing

 

1:00 – 1:20 p.m. :: Overview & Introductions

1:20 – 2:45 p.m. :: Anatomy of an Appraisal

  • Purposes of an appraisal
  • Three approaches to value
  • Typical standards of value
  • Factors that can affect the appraisal
  • Post-IRA vs. pre-IRA considerations

Fernando Sosa, Director – Valuation & Advisory, Cushman & Wakefield

James F. Duffy, Partner & Chair – Renewable Energy Tax Credit Team, Nixon Peabody LLP

Tony Grappone, Partner, Novogradac & Company LLP

2:45 – 3:00 p.m. :: Afternoon Break

3:00 – 4:00 p.m. :: Analyzing the Cost Approach

  • Indirect method
  • Direct method
  • Indirect vs. Direct method
  • Useful life
  • The three forms of depreciation

Tony Grappone, Partner, Novogradac & Company LLP

Patty Tuite, Managing Director, Deloitte & Touche LLP

4:00 – 5:00 p.m. :: Analyzing the Income Approach

  • Overview
  • Evaluating project cash flows and inputs / assumptions
  • Calculating a discount rate
  • Other considerations
  • Critical inputs and assumptions

Caroline Walters, Senior Director, Alvarez & Marsal

Mark Williams, Managing Director – Structured Finance Solutions Group, PNC Corporate & Institutional Banking

5:00 p.m. :: Program Adjourns for the Day

 

Tuesday, April 4, 2023 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

12:15 – 1:00 p.m.
Lunch Break

9:00 a.m. – 5:00 p.m.
Course Timing

 

9:00 – 9:45 a.m. :: Analyzing the Market Approach

  • Application of the market approach in appraisals
  • Guideline companies
  • Secondary market sources

Don Nimey, Principal – Valuation Advisory Services, CohnReznick

James F. Duffy, Partner & Chair – Renewable Energy Tax Credit Team, Nixon Peabody LLP

9:45 – 10:30 a.m. :: Analyzing the FMV for Debt Underwriting

  • Loan-to-value (LTV)
  • Debt coverage service ratio (DSCR)

Moderator: Tony Grappone, Partner, Novogradac & Company LLP

David Boisture, Partner, Novogradac & Company LLP

Joseph Ritter, Executive Vice President, Seminole Financial Services LLC

10:30 – 10:45 a.m. :: Morning Break

10:45 a.m. – 12:15 p.m. :: Analyzing Appraised Values for Purposes of Tax Equity

  • Evaluating and appraisal determination
  • Tax equity credit insurance
  • Effect on financial model

Moderator:  James F. Duffy, Partner & Chair – Renewable Energy Tax Credit Team, Nixon Peabody LLP

Tony Grappone, Partner, Novogradac & Company LLP

Gary Blitz, Senior Managing Director/Co-Practice Leader, Aon Transaction Solutions

Camelia Miu, CFO, Nautilus

Mike Bammel, Managing Director & National Practice Lead – Renewable Energy, JLL Valuation Advisory

12:15 – 1:00 p.m. :: Lunch Break

1:00 – 2:15 p.m. :: Assigning Costs Appropriately

  • What is a cost segregation study?
  • MACRS eligibility
  • Depreciation
  • What is a cost certification study?
  • Differences between cost segregation and cost certification
  • Legal precedents
  • CARES Act impact on cost segregation studies
  • Distinguishing between different classes of renewable energy assets

Patty Tuite, Managing Director, Deloitte

Tony Grappone, Partner, Novogradac & Company LLP

2:15 – 3:00 p.m. :: Accounting for Differences in Project Development Stage

  • Used
  • Mature
  • Repowering Assets vs. New Property

Fernando Sosa, Director – Valuation & Advisory, Cushman & Wakefield

James F. Duffy, Partner & Chair – Renewable Energy Tax Credit Team, Nixon Peabody LLP

3:00 – 3:15 p.m. :: Afternoon Break

3:15 – 4:00 p.m. :: Considerations in Evaluating a Property Tax Assessment and Estimating Property Taxes in an Acquisition

  • Introduction
  • Case law overview
  • Other criteria for determining intangible asset valuation
  • Key factors in valuation for property taxes
  • Other factors and considerations

Mark Simzyk, Managing Director – Tax Services, Duff & Phelps

4:00 – 5:00 p.m. :: Addressing the Impact of Externalities on Appraisals and Cost Segregation Studies

Panel Discussion

5:00 p.m. :: Course Adjournment

Instructors

  • Mike Bammel, Managing Director & National Practice Lead – Renewable Energy, JLL Valuation Advisory

  • Gary Blitz, Senior Managing Director/Co-Practice Leader, Aon Transaction Solutions

  • David Boisture, Partner, Novogradac & Company LLP

  • James F. Duffy, Partner & Chair – Renewable Energy Tax Credit Team, Nixon Peabody LLP 

  • Tony Grappone, Partner, Novogradac & Company LLP

  • Camelia Miu, Chief Financial Officer, Nautilus

  • Don Nimey, Principal – Valuation Advisory Services, CohnReznick LLP

  • Joseph Ritter, Executive Vice President, Seminole Financial Services, LLC

  • Fernando Sosa, Director – Valuation & Advisory, Cushman & Wakefield

  • Mark Simzyk, Managing Director, Kroll LLC

  • Patricia Tuite, Managing Director, Deloitte Advisory LLP

  • Caroline (Sieber) Walters, Senior Director, Alvarez & Marsal

  • Mark Williams, Managing Director – Structured Finance Solutions Group, PNC Corporate & Institutional Banking

Online Delivery

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

  • IMPORTANT NOTE: After November 30 you will not be able to join a Teams meeting using Internet Explorer 11. Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
  • You will receive a meeting invitation will include a link to join the meeting.
  • Separate meeting invitations will be sent for the morning and afternoon sessions of the course.
    • You will need to join the appropriate meeting at the appropriate time.
  • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
  • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Register

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all registrants for three business days after the event

REGISTER NOW FOR THIS EVENT:

Renewable Energy Project Appraisals, Valuation and Cost Segregation Studies

April 3-4, 2023 | Online
Individual attendee(s) - $ 1295.00 each

Volume pricing also available

Individual attendee tickets can be mixed with ticket packs for complete flexibility

Pack of 5 attendees - $ 5,180.00 (20% discount)
Pack of 10 attendees - $ 9,065.00 (30% discount)
Pack of 20 attendees - $ 15,540.00 (40% discount)

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before March 03, 2023 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

CEUs

Credits

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EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 1.1 CEUs for this event

Instructional Methods

This program will use PowerPoint Presentations and group discussions. 

Requirements For Successful Completion  

Participants must log on each day and be in attendance for the entirety of the course to be eligible for continuing education credit.


Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Course CPE Credits: 12.5
There is no prerequisite for this Course.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None

CpeEUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

 

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