PACE enabling legislation introduced in states

PACE Bills Introduced Spring 2013:  This spring 4 more states have introduced PACE enabling bills.

Arizona: HB 2584

Arkansas: Senate Bill

Texas: S.B.385

Utah: S.B 221 To send a letter and voice your support for PACE-enabling legislation in Utah, please, click here.

The City of Ann Arbor approves PACE bond issuance

The Ann Arbor city council has approved the issuance of bonds that will assist owners of commercial property in making improvements designed to help save energy under the city’s property assessed clean energy (PACE) program. The vote was taken at the council’s Feb. 19. Read full story.

PACE Industry Updates

Ann Arbor’s PACE Program
Location: Ann Arbor, MI

The Ann Arbor PACE program has pooled together 8 local energy efficiency projects totaling approximately $900,000. The next steps in the PACE bond process are for City Council to vote on a resolution to allow the City to sell its first PACE bond; that meeting will be held on Feb 19th. If it is adopted, program staff will move to sell the bond right away, finalize energy assessment agreements with all the applicants, and enable the property owners and contractors to begin work as soon as possible.

CaliforniaFIRST PACE Program
Location: California

As of February 8th, the program has 37 active applications totaling over $11.4 million. Several applicants are working on affirmative acknowledgement and consent to the PACE lien from their existing mortgage lenders. More applications are to come with an additional 5-7 counties joining CaliforniaFIRST this spring. For more information, go to CaliforniaFIRST.org.

Connecticut Statewide PACE Program
Location: Connecticut

The state-wide Connecticut C-PACE program, which officially launched last month, continues to gather steam. Twelve towns covering over a quarter of the state’s commercial real estate market have opted into the program bringing over 50 projects into the C-PACE pipeline. Last month, CEFIA launched the C-PACE website: www.c-pace.com where building owners can now apply for C-PACE financing online. This month, after conversations with its prequalified capital provider group, CEFIA has approved a 20 million dollar fund to provide construction period financing and other credit enhancements to accelerate C-PACE deals. CEFIA is also launching a registration and training program for contractors and auditors to become prequalified, giving them access to the C-PACE open source database management platform and co-branding/ marketing opportunities through the program.

HERO PACE Program
Location: California

There have been $27M in fundings across 1,500 projects for an average of $18,000 per project. There is an additional $22M across 1,200 projects that are underway. The commercial group is actively pursuing completion of its first commercial PACE financing.

Toledo Lucas Port Authority PACE
Location: Toledo, Ohio

The Toledo-Lucas County Port Authority’s BetterBuildings Northwest Ohio program has surpassed its milestone of over 50 completed energy efficiency projects since its inception in June 2010. Energy efficiency project sizes range from $25,000 to over $5 million in costs. Projects were completed on a broad range of buildings including auto dealerships, senior centers, office buildings, parking garages, airport hangars, municipal buildings, water plants, sports complexes and manufacturing/industrial facilities. The program has even performed energy upgrades to small businesses such as a day care center and a multi-family apartment building. These total projects represent an investment of over $20 million.

In Ohio, 50 Completed Energy Efficiency Projects

TOLEDO, Ohio, Feb. 15, 2013 – The Toledo-Lucas County Port Authority’s BetterBuildings Northwest Ohio program has surpassed its milestone of over 50 completed energy efficiency projects since its inception in June 2010. Energy efficiency project sizes range from $25,000 to over $5 million in costs. Projects were completed on a broad range of buildings including auto dealerships, senior centers, office buildings, parking garages, airport hangars, municipal buildings, water plants, sports complexes and manufacturing/industrial facilities. The program has even performed energy upgrades to small businesses such as a day care center and a multi-family apartment building. These total projects represent an investment of over $20 million.
“This program has provided true value to local businesses and government by creating jobs and improving the energy efficiency of existing buildings and making them more comfortable for its occupants,” said Kevin Moyer, Executive Director for the BetterBuildings Northwest Ohio program. “In addition, the energy savings from these projects are generally sufficient to pay for the improvements and provide positive cash flow to the businesses.” Read full story.

Commercial PACE Securitization in 2013

Kroll Bond Rating Agency discussed the possibility of commercial PACE securitization in 2013. According to the Agency, PACE is one of the first renewable energy-backed asset types with a high potential to be securitized.

Read full article to learn more about KBRA’s approach to reviewing a pool of commercial PACE assessments.

Florida PACE Funding Agency has announced that it has secured up to $500 million

ORLANDO, Fla. – Feb 05, 2013 – Florida PACE (Property Assessed Clean Energy) Funding Agency has announced that it has secured up to $500 million in funding through Samas Capital, LLC (Samas) to provide business and residential property owners with financing for energy-related and wind-hardening improvements in counties that choose to participate. Samas has engaged RBC Capital Markets as structuring agent in the context of this PACE funding program.

Florida PACE Funding Agency was established as a special purpose unit of local government to provide voluntary, low-cost financing to property owners for energy efficiency, renewable energy and wind resistance improvements. Improvements are to be repaid over time by property owners through a voluntary special assessment added onto the owner’s property tax bill. The Florida PACE Funding Agency has the legal authority to issue $2 billion in bonds for the purpose of funding property improvements, without liability, to any subscribing county or city.

“By using the Agency’s innovative interlocal subscription model, local governments will be able to quickly and easily implement a PACE program without burdening local government staff and without incurring uncertain and enormous costs and liabilities associated with a stand-alone program,” said Mike Steigerwald, Executive Director for Florida PACE Funding Agency. “For property owners, this will mean expedited access to funds for protection of their properties from Florida’s hurricanes, mitigation of rising energy costs through energy efficiency improvements, and increases in property value related to the improvements.”

Just as important, this breakthrough in access to funding for qualifying property improvements is expected to quickly strengthen Florida’s economy through materials supply and private sector construction job creation.

Florida PACE Funding Agency’s program is entirely voluntary and is available only in subscribing counties and municipalities. Subscription is accomplished by resolution of the county or city commission and a short interlocal agreement, the form of which has been judicially validated. The Agency expects to begin funding within the next 60 days.

Samas has been active with PACE financings in California and will bring that knowledge and expertise to Florida property owners through the Agency’s scalable statewide program.

Read full press release.