The PACE bond market, in combination with federal loan guarantees, has the potential to dramatically accelerate the energy retrofitting of America's building stock due to the below advantages. It is estimated that the potential for PACE bonds could exceed $500 billion.
PACE Impact: Property tax lien oriented financing that dramatically improves the economics of energy retrofits (efficiency measures and micro renewable energy)
To see who supports PACE please click on our PACE Legislation Endorser List.
- Significant job creation
- Accelerates movement toward energy independence & reduces GHG emissions
- Very low fiscal cost & high probability of success
Property Owner:
- Lower energy bills and substantially reduced upfront costs for energy retrofits
- Improved return on investment/positive cash flow on retrofits (annual savings > cost)
States, Cities & Municipalities:
- Immediate job creation
- No credit or general obligation risk
- Obligation is liability of real estate owner
- Greenhouse gas reductions/energy independence
- Opt in: Only those real estate owners who opt in pay for it
Existing Mortgage Lenders:
- Borrowers cash flow/credit profile improves (energy savings > annual tax cost)
- Property/collateral value increases
Lender:
- Virtually no risk of loss as property tax liens are senior to mortgage debt
- 97% of property taxes are current & losses are less than 1%
The ability for our nation to finance energy retrofits with PACE bonds emerged in 2008 with the passage of enabling legislation in California. In recognition of the large benefits of PACE finance, the following states have recently passed enabling legislation: Colorado, Illinois, Louisiana, Maryland, Nevada, New Mexico, Ohio, Oklahoma, Oregon, Texas, Vermont, Virginia, and Wisconsin, and legislation is pending in Arizona and New York. Florida and Hawaii have existing ability to launch PACE programs. The first PACE bond was issued by Berkeley, CA in January, 2009.
2. Introduction to PACE finance:
A. Slide Introduction to PACE - Washington D.C. Presentation (10-6-09)
B. 2009 Milken Institute PACE Finance Panel (Audio) (4-29-09)
C. Details of PACE Programs
D. PACE Market Sizing (Commercial) - Johnson Controls Estimate
3. PACE in the News
A. New York State Passes PACE Finance Enabling Legislation (11-17-09)
B. Vice President Biden/Secretary Chu/Secretary Donovan’s PACE Announcement at “Recovery Through Retrofit” Conference (10-19-09)
· YouTube Link to Announcement Highlights
· C-SPAN Link to Full Announcement
C. Recovery Through Retrofit” Report (Released 10-19-09)
· Policy Framework for PACE Programs (10-18-09)
· White House DOE Grants
D. Senator PACE Letter to President Obama (11-10-09)
E. President Clinton's Clinton Global Initiative Announcement
· YouTube Link to CGI Announcement
F. Governor Schwarzenegger’s Announcement (9-24-09)
G. Mayor Jerry Sanders (R), San Diego (9-24-09)
H. Board of Boulder County Commissioners (9-24-09)
I. America’s First Major PACE Commercial Project: Santa Rosa Plaza Mall Installs “Cool Roof”
J. Congressman Israel PACE Op-Ed (10-19-09)
4. PACENOW Washington DC Working Group Meeting - May 2009:
A. Consortium Letter to Congress (6-16-09)
B. PACE Language in Waxman Markey Bill – H.R. 2454: American Clean Energy Security Act of 2009
C. Program Agenda
D. Participant List
5. Municipal Administration of PACE Bond Program:
A. Simple Steps: How to Implement a PACE Program
B. PACE Local Government Guide (9-2009)
6. PACE Federal Correspondence with Federal Housing Finance Authority ("FHFA")
A. FHFA Letter Expressing Concerns with PACE (6-18-09)
B. PACE Program Information: Response to Regulatory Agency Questions
C. Governor Richardson’s FHFA Pro PACE Response to President Obama (10-13-09)
D. CA Attorney General FHFA Response (10-12-09)
· FHFA Response Letter (10-29-09)
E. Board of County Commissioners FHFA Pro PACE Response to President Obama (10-13-09)
F. Barclays Capital Opinion on Need for PACE Seniority (9-14-09)
G. Pro PACE Senator Response Letter (8-3-09)
H. Pro PACE Mayor/Municipality Response Letter (7-30-09)
I. Fannie Mae PACE Guidelines (9-18-09)
7. Potential Federal Government/Department of Energy Scaling of Nationwide PACE Program:
A. EPA Finance Advisory Board Recommends PACE Programs/Presidential Task Force (6-15-09)
B. PACE Distribution Model
C. Sample DOE PACE Guarantee "Reservation" Form
D. Two Different Bond Financing Routes
E. PACE Bond Tax-exemption Cost/Benefit Analysis
8. Additional PACE Support Letters:
A. AIA (10-15-09)
B. LIUNA (10-29-09)
9. PACE Financing:
A. Boulder County PACE Bond Prospectus (5-20-09)
B. Barclays Capital PACE Capital Markets Memo (5-15-09)
10. Legal Issues:
A. Jones Hall Memo: Consent Legal Analysis (5-14-09)
B. Commercial Mortgages: Legal Consent Issues & Solutions (5-2009)
11. Property Tax Credit History - California & Washington:
A. 2006-2007 (CA)
B. 2007-2008 (CA)
C. 2008 Property Tax Statistics (WA)
12. Federal PACE Related Legislation:
A. National Home Energy Savings Revolving Fund Act (HR 1573)
B. Inslee (HR 2212)
C. Bingaman (S 949)
D. Waxman Markey (HR 2454) Dingell Amendment
E. PACE Bond Tax-exempt Status Bill - Rep. Thompson
F. Israel (HR 3836)
13. PACE Programs by State:
A. Current Clean Energy Municipal Financing Bills – State by State
· Database of State Incentives for Renewables & Efficiency
Passed:
B. California: PACE State Enabling Legislation (AB 811); (AB 474); (SB 279)
· City of Berkeley PACE Program
· Palm Desert PACE Program
· San Diego County PACE Program
· Sonoma County PACE Program
C. Colorado: PACE State Enabling Legislation (HB 08-1350)
· Boulder County PACE Program
D. Illinois: PACE State Enabling Legislation (SB 583)
E. Louisiana: PACE State Enabling Legislation (SB 224)
F. Maryland: PACE State Enabling Legislation (HB 1567)
· Annapolis PACE Program
· Montgomery County PACE Program
G. Nevada: PACE State Enabling Legislation (SB 358)
H. New Mexico: PACE State Enabling Legislation (HB 572)
I. New York: PACE State Enabling Legislation
· Town of Babylon: Long Island Green Homes
· Bedford, NY: PACE State Legislative Exemption Specific to Town of Bedford
· City of Binghamton PACE Program (5867-A); (A08890)
J. Ohio: (HB 1)
K. Oklahoma: (SB 668)
L. Oregon: PACE State Enabling Legislation (HB 2181); (HB 2626)
M. Texas: PACE State Enabling Legislation (HB 1391); (HB 1937)
N. Vermont: PACE State Enabling Legislation (H 446)
O. Virginia: PACE State Enabling Legislation (SB 1212)
P. Wisconsin: AB 255
In Process:
Q. Arizona: PACE State Enabling Legislation (HB 2335)
R. New York: (A 7611); (A 2672)
14. Articles/Studies on the Value of Energy Retrofits
A. Appraisal Journal. Evidence of Rational Market Valuations for Home Energy Efficiency (1998)
B. Assessing the Market Impacts of Third Party Certification on Residential Properties (5-29-09)
C. Doing Well by Doing Good? Green Office Buildings (8-12-09)
14. Related Articles/Links:
A. University of California, Berkeley PACE Website
B. Article on San Diego, Palm Desert, etc (1-26-09)
C. Environment Magazine PACE Finance Article (Jan/Feb 2009)
D. Homeowner Presentation
E. Historical State by State Analysis of Housing Units By Structure
F. Commercial/residential Real Estate Default History
For more information, please email us at info@PACENOW.org