California Clean Energy Fund

CalCEF Clean Energy Fund
5 Third St. Suite 1125
San Francisco, CA 94110

P: 415 957 0167 F: 415 957 0177

CalCEF is governed by a nine-member Board of Directors and a small staff.

The Board has also retained a team of private equity firms to serve as investment managers for CalCEF Fund I and the CalCEF Clean Energy Angel Fund.

The California Clean Energy Fund (CalCEF) was formed in 2004 to accelerate investment in California’s clean energy economy. The Fund arises from the California electricity crisis of 1999-2000 and the bankruptcy settlement negotiated by the California Public Utilities Commission (CPUC) and Pacific Gas and Electric Company (PG&E). Deploying a number of investment strategies, CalCEF will make equity investments totaling up to $30 million in emerging clean energy technology companies. The Fund will invest in companies, located in PG&E’s service territory and elsewhere, that are developing technology or products that offer benefits to the region and advance California’s world-leading clean energy agenda.

CalCEF is a non-profit entity, but will make for-profit investments in commercially viable companies. As an “evergreen” fund, any profits will be reinvested in companies and programs that support CalCEF’s mission of driving change in the energy system. Funds will be invested in private companies creating technologies or products that will lead directly or indirectly to decreased reliance on non-renewable fuels. This can include companies focusing on energy efficiency, renewable energy, clean fuels, energy storage, and other areas. It can also include companies providing products and services, such as software, that are designed to enhance a particular aspect of the clean energy sector.

In 2008 CalCEF announced the creation of two new initiatives:

The CalCEF Clean Energy Angel Fund I
CalCEF is the founding Limited Partner in this fund, designed to address a persistent and increasingly significant problem in the clean energy industry: the absence of funding for companies at the earliest stage of their development. The Angel Fund is a separate, for-profit entity, and brings together individuals and institutions with both capital and expertise in the development of new technology companies.

The CalCEF Center for Innovation and Sustainability
Since 2005 CalCEF has dedicated a portion of its resources to the convening of critical conversations at the intersection of clean energy policy, technology and finance. The launch of the Center as a charitable 501c3 organization will enable CalCEF to significantly expand this role as the clean energy industry matures, revealing critical new issues affecting the long-run flow of capital into the infrastructure of sustainable energy.

Source of Funds
CalCEF’s initial funding of $30 million comes from PG&E shareholders. The funding schedule extends over a five-year period as follows: $2 million in 2004, $4 million in 2005, $6 million in 2006, $8 million in 2007, and $10 million in 2008. PG&E’s role in CalCEF is limited to providing the initial $30 million in funding and appointing three of the initial nine Board members. PG&E has no control over CalCEF operations or investments, will not profit from positive returns on CalCEF investments, and does not have the ability to remove the directors it appointed or to designate the replacement of any directors it appointed who leave the Board for any reason.