1. But Wait, What is this Whole “Budget Scoring” Thing? OMB CBO All financing proposals that are non-routine in nature and involve unique or unusual concepts or characteristics… (OMB, A-11) • Third Party Financing: “Intermediary other than the U.S. Treasury can raise money in private capital markets on behalf of a federal program…” 1

2. The Basics

3. What is OK • Revenue generating EULs • Non-federal income stream to support private borrowing • Removing government expense for maintaining underutilized land • Unlocking previously unavailable real estate for other public or private use • Exchange for property or services (GSA) • Historic property outleasing (Section 111) • Energy savings (including ESPCs)

4. To see, or not to see Yes!Umm, probably not… • ESPCs • PPAs • EULs for private use • Energy EULs with minimum federal offtake • Public-Public Partnerships (P4s) • Long term federal tenant leases • Stand-alone utility projects under ESPC • Government purchase of 100% of output from energy EUL • New MHPI ground-up transactions But then again…. this is Washington (read: subject to change)

5. Recent Trends in Budget Scoring and PPPs OMB: Traditional Operating lease rules – more stringently followed CBO position to score “build to suit” leases as capital leases Congressional Review: • Recent Hearings and Roundtables (Senator Carper, Rep. Barletta, Rep. Chaffetz, House Veterans Affairs Committee) GAO: GAO-14-239 Capital Financing: Alternative Approaches for Federal Real Property (http://www.gao.gov/products/GAO-14-239). Stakeholder Input – Call for Change • Think tanks and Associations are blogging and advocating scoring change