Federal Action Grassroots Toolkit

We need your help now to ask Congress to take immediate action by passing “The PACE Assessment Protection Act of 2010” so that our nation can use this innovative local government tool to unlock investment in clean energy and create jobs. There are three main activities that you can engage in to help out.

-Contact your Member of Congress and Senators today – and urge them to pass legislation immediately to save PACE (see letter template in item E. below)

-Contact your local newspaper (see PACE Media Memo in H. below for guidance)

-Pass a resolution in your city or county supporting PACE (see Sample Municipal Resolution for guidance in I. below)

In this PACE Grassroots Action Toolkit, we have provided materials to assist you in your effort to communicate to Congress. Our work is urgent: Congress will only be in session for 8 more weeks in 2010. The focus of our effort is the Senate Banking Committee and House Financial Services Committee. But all members of Congress need to hear from us.

A. Guide to Action – Local and State Governments

B. Guide to Action – Businesses

C. Guide to Action – Individuals

D. PACE Summary for Legislators (7-12-10)

E. Congressional Letter Template (7-19-10)

F. Response to FHFA/OCC July 6th letters (7-12-10)

G. Congressional Outreach Contact Info (7-14-10)

H. PACE Media Memo (7-14-10)

I. Sample Municipal Resolution and Staff Report (7-19-10)

J. PACE Presentation to Senate Banking Committee (7-22-10)

Please send all copies of all congressional letters to congress@pacenow.org

Federal Legislation Outreach Team Leaders:
Area of Focus: Name: Phone:
Grassroots State Campaigns
to Push for Senate Support
Shaun Chapman (347) 471-0874
Not for Profits & Organized Labor Greg Hale (212) 727- 4613
Trade Associations Nick Chaset (510) 219-2121
State/Local Government
East of Mississippi
Steve Frenkel (847) 859-2797
State/Local Government
West of Mississippi
Adam Byrnes (510) 350-3733
Corporate Support
Fortune 500 Corporations
Sandi McLaughlin (212) 659-4917
Corporate Support Kelley McKanna (510) 451-7910
Key Senators to Lead: Key Staff Member: Phone: State PACE State
Senator Judd Gregg Jenn Gallagher (202) 224-3324 NH Yes
Senator George Voinovich Todd Johnston (202) 224-3353 OH Yes
Senator Kay Bailey Hutchinson Dana Barbieri (202) 224-5922 TX Yes
Senator David Vitter Travis Johnson (202) 224-4623 LA Yes
Senator Bob Bennett Mike Nielsen (202) 224-5444 UT No
Senator Richard Shelby Graham Smith (202) 224-5744 AL No
Senator Mike Crapo Gregg Richard (202) 224-6142 ID No
Senator Jim Bunning William Henderson (202) 224-4343 KY No
Senator Mike Johanns Sarah Novascone (202) 224-4224 NE No
Senator Jim DeMint Jeff Murray (202) 224-6121 SC No
Senator Bob Corker Courtney Geduldig (202) 224-3344 TN No

A PACE bond is a bond where the proceeds are lent to commercial and residential property owners to finance energy retrofits (efficiency measures and small renewable energy systems) and who then repay their loans over 20 years via an annual assessment on their property tax bill. PACE bonds can be issued by municipal financing districts or finance companies and the proceeds can be typically used to retrofit both commercial and residential properties.

The PACE bond market has the potential to dramatically accelerate the energy retrofitting of America’s building stock due to the below advantages.

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 see our PACE Legislation Endorser List.

See Other Letters to FHFA and Congress

PACE Basics

What is PACE?:

Below are a list of resources that can help you better under stand what Property Assessed Clean Energy (PACE) is, and how the PACE financing model works.

A. Slide Introduction to PACE – Senate Banking Committee Presentation (7-22-10)
B. 2009 Milken Institute PACE Finance Panel (Audio) (4-29-09)
C. Details of PACE Programs
D. PACE Market Sizing (Commercial) – Johnson Controls Estimate
E. PACE Explained in Simple Terms

Advantages of PACE Financing:

Our Nation:

  • 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%

Brief History of PACE:

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: CA, CO, FL, GA, IL, LA, ME, MD, MN, MO, NV, NH, NM, NY, NC, OH, OK, OR, TX, VT, VA, WI, and legislation is pending in Arizona. Florida and Hawaii have existing ability to launch PACE programs. The first PACE bond was issued by Berkeley, CA in January, 2009.

PACE Legislation Endorser List

How To Establish PACE In Your State

PACE State Legislation Battle Toolkit:

A. PACE Constitutionality White Paper: Paul Hastings Report (5-28-10)
B. PACE Summary Description for Legislators
C. PACE Webinar on State Strategies for Passing Legislation
D. PACE Concerns & White House Solutions
E. PACE Programs: Historical Precedent, Seniority and Benefits to Existing Lenders
F. PACE Lien Seniority in Foreclosure is Immaterial
G. Template for PACE Letter to State Legislator
H. PACE Letter Template to Legislator Which Addresses Lender/Consumer Concerns
I. Template for State Legislation Coalition Petition
J. The 10 Must Haves for PACE State Enabling Legislation
K. Barclays Capital Memo – PACE Seniority is Mandatory
L. PACE White Paper, May 2010

Municipal Administration of PACE Program:

A. Simple Steps: How to Implement a PACE Program

B. PACE Local Government Guide (9-2009)

PACE Programs By State:

A. Current Clean Energy Municipal Financing Bills – State by State
· DDatabase of State Incentives for Renewables & Efficiency
· PACE Legislation Table (2-10-10)

Passed:

B. California: PACE State Enabling Legislation (AB 811); (AB 474); (SB 279)
· City of Berkeley PACE Program
· City of San Francisco “GreenFinanceSF” (4-8-10);: “GreenFinanceSF Project List” (2-25-10)
· City of Yucaipa’s Energy Independence Program
· Palm Desert PACE Program
· San Diego County PACE Program
· Sonoma County PACE Program
· Western Riverside County – Energy Efficiency and Water Conservation 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. Michigan: (HB5640)
H. Missouri: PACE State Enabling Legislation (SHB 1692)
I. Nevada: PACE State Enabling Legislation (SB 358)
J. New Hampshire: PACE State Enabling Legislation (HB 1554)
K. New Mexico: PACE State Enabling Legislation (HB 572)
L. New York: PACE State Enabling Legislation
· NYS PACE LAW (S66004)
· 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)
M. North Carolina (Note: Law needs to be amended as it requires revolving loan) (HB 1389)
N. Ohio: (HB 1)
O. Oklahoma: (SB 668)
P. Oregon: PACE State Enabling Legislation (HB 2181);
(HB 2626)
Q. Texas: PACE State Enabling Legislation (HB 1391);
(HB 1937)
R. Vermont: PACE State Enabling Legislation (H 446)
S.  Virginia: PACE State Enabling Legislation (SB 1212)
T.  Wisconsin: AB 255
In Process:

U. Arizona: PACE State Enabling Legislation (HB 2335)
V. Connecticut: (Raised Bill 5465 – Section 5)
W. Florida: Proposed PACE State Enabling Legislation (Precourt/Hasner Press Release)
X. a href=”http://assembly.state.ny.us/leg/?bn=A07611&sh=t” target=”blank”> New York: (A 7611); (A 2672)

Other Resources

PACE In the News:

A. NY State to Receive Largest DOE Grant to Accelerate PACE
B. Harvard Business Review – Energy Alternatives: A Market Solution for Achieving “Green” by Jack Hidary (Jan/Feb 2010)
C. Scientific American – World Changing Ideas: 20 Ways to Build a Cleaner, Healthier, Smarter World (11/03/09)
D. New York State Passes PACE Finance Enabling Legislation (11-17-09)
E. 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
F. “Recovery Through Retrofit” Report (Released 10-19-09)
· Policy Framework for PACE Programs (10-18-09)
· White House DOE Grants
G. Senator PACE Letter to President Obama (11-10-09)
H. President Clinton’s Clinton Global Initiative Announcement
· YouTube Link to CGI Announcement
I. Governor Schwarzenegger’s Announcement (9-24-09)
J. Mayor Jerry Sanders (R), San Diego (9-24-09)
K. Board of Boulder County Commissioners (9-24-09)
L. PACENow Executive Director Job Description
M. America’s First Major PACE Commercial Project:  Santa Rosa Plaza Mall Installs “Cool Roof”
N. Congressman Israel PACE Op-Ed (10-19-09)

PACE and Existing Mortgage Lender: Legal Analyses:

A. PACE Programs: Historical Precedent, Seniority and Benefits to Existing Lenders
B. PACE Bloomberg Law Article (Jan 2010)
C. Jones Hall Memo: Consent Legal Analysis (5-14-09)
D. Commercial Mortgages: Legal Consent Issues & Solutions (5-2009)

Potential Federal Government/DOE 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

Property Tax Credit History – California and Washington:

A. 2006-2007 (CA)
B. 2007-2008 (CA)
C. 2008 Property Tax Statistics (WA)

Articles/Studies on the Value of 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)

Additional 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

One Response to

  1. dfern1 on July 27, 2010 at 6:47 pm

    Great information on the pace program.

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