It is part of our mission to serve as a trusted source of information on PACE. Our goal is to keep track of all PACE programs in the U.S. and provide most up-to-date information and project documents. Below, is a list of PACE programs by state.
If you’d like to see PACE programs and legislation at a glance, click here.
Arkansas has enacted PACE enabling legislation.
Arkansas has passed a PACE enabling bill, which Governor Mike Beebe signed it into law in April. To learn more about successful legislative efforts, read our newsletter or download an article written by the Advanced Energy Association here.
The Arkansas Advanced Energy Foundation will play an active role to provide expertise and assistance to consumers, contractors and local governments in forming and assisting the implementation of energy improvement districts in Arkansas.
To contact the Arkansas Advanced Energy Foundation, click here.
California has enacted PACE enabling legislation and there are a number of operational PACE programs and others in development.
California Statewide Communities Development Authority (“CSCDA”) is a statewide joint powers authority sponsored by the California State Association of Counties and the League of California Cities. Its mission is to provide local governments access to low-cost financing for projects that provide a tangible public benefit, contribute to social and economic growth, and improve the overall quality of life in local communities. California Communities currently has 500 local government members. Following a competitive process, California Communities selected Renewable Funding as project partner to offer a complete AB 811 program to cities and counties throughout the State, including administration, legal and finance. The founders of Renewable Funding, the CaliforniaFIRST Program administrator, helped create the property assessed clean energy (PACE) program model and are assisting cities, counties, and states across the country to launch these financing programs. The Program’s legal counsel includes Jones Hall (bond counsel) and Orrick, Herrington & Sutcliffe LLP (issuers, disclosure and validation counsel). For more information for property owners, click here. For basic program terms, click here.
Click here to see the list of participating communities.
Sacramento is becoming a hub of clean technology and economic growth. Clean Energy Clean Energy Sacramento is the model for other cities around the nation. Clean Energy Sacramento, managed and funded by Ygrene, provides financing to commercial property owners for renewable energy and energy efficiency upgrades. Financing is repayable over the long term via property taxes, making projects profitable – an innovative approach that unlocks massive job creation, economic stimulus and environmental impact potential. Clean Energy Sacramento is now offering financing for both residential and commercial properties. It’s easy to participate for contractors and building owners alike, and the program’s web tools lay out the process so all stakeholders know where they stand. Download a full list of eligible upgrades here.
Figtree Financing is a full service PACE Financing provider for property owners including quoting, application processing, and funding. Figtree PACE allows up to 20% of a property’s value to be financed for energy efficiency, renewable energy, and water conservation upgrades. The financing creates an assessment lien on the property and is repaid as semi-annual installments on the property tax bill.
Figtree PACE provides 100% financing for HVAC, Roofing, Solar, Windows, Lighting, and other energy efficiency and water conservation upgrades for commercial properties. The financing is no money down, fixed low interest rate, and long term up to 20 years. Qualifying for the financing is based on the property not business credit.
All commercial property types are eligible including office, industrial, retail, hotel, agriculture, and multi-family residential. The minimum allowable project size is $5,000 with no maximum. Eligible improvements include solar, HVAC, boilers & chillers, lighting, building controls, windows, cool roofing, water-efficiency plumbing, and hundreds of other improvement types.
Figtree is not currently accepting applications for residential properties pending clarification of Federal Housing and Finance Agency concerns pertaining to lien status.
There is a list of municipalities eligible for commercial financing.
GreenFinanceSF – Commercial officially launched on October 13, 2011 using the “open market” PACE model in which property owners negotiate project financing, including the interest rate and repayment term, with qualified project lenders willing to fund their project. When a project is approved, the City sells a bond to the project lender, and the proceeds from the sale fund the project. A special tax is then levied on the property, which is collected through the property tax bill and paid back to the project lender. Other key features of PACE are that it provides for the option of longer amortizations than typical commercial loans, and the payment obligation can run with the property, not the owner. The Program will assist in facilitating introductions between interested owners and qualified lenders.
“GreenFinanceSF-Commercial is the next big step forward in San Francisco’s efforts to dramatically reduce energy use and carbon emissions,” said San Francisco Mayor Edwin Lee. “We are excited about the potential to unlock an enormous amount of private investment – from a wide range of sources – and create thousands of local construction jobs. As of today, we are open for business.” “This program will save property owners money, add property value, and put people to work” said Supervisor Eric Mar, who co-sponsored the legislation allowing for the creation of PACE programs in San Francisco.
Green Finance Program Documents: GFSF Two Page Program Overview 11-14-11, GFSF Program Handbook 11-17-11, GFSF Request for Applications 11-16-11, GFSF Initial Application Form 11-16-11, GFSF Form of Lender Consent (non-residential), GFSF Form Property Owner Unanimous Approval (non-residential), GFSF Fiscal Agent Agreement, GFSF Form Bond Purchase Agreement.
HERO Financing: Western Riverside Council of Governments PACE program
The HERO Program is a great example of a public-private partnership which enables any city or county to offer HERO within their community. HERO Program was launched in December 2011 for residential properties and December 2012 for commercial properties. The Program is fully funded and requires no cost outlays by the participating cities and counties.
The program is set up under AB 811 and property taxes are collected on the county level twice a year. WRCOG functions as joint powers authority and 17 municipalities have signed a participation agreement with the WRCOG. Thanks to the overwhelming success of the program, HERO is now available to communities throughout California.
Public Financial Management, Inc (PFM) was instrumental in setting up the program. Bonds are created on each single transaction and subsequently sold to committed program funding partners: Renovate America and Samas Capital. Renovate America is dealing with residential projects, while Samas capital is buying bonds for commercial project. There is no audit requirement. Interest rates are market driven and determined at the time of transaction. The minimum project size is $5,000 and projects could be financed for up to 25 years.
HERO is offered through a joint powers authority, Western Riverside Council of Governments (WRCOG), formed under State law. HERO has received a number of awards, including the Southern California Association of Governments (SCAG) President’s Award for Excellence, the Urban Land Institute (ULI) Best of the Best, and the United States Green Building Council (USGBC) California Top 10 Green Building Policies for Municipalities.
Contact person: Barbara Spoonhour, Director of Energy and Environmental Programs, Western Riverside Council of Governments. Phone: 951-955-8313.
Money for Property Owner Water and Energy Efficiency Retrofitting (mPOWER) provides a no money down, 6% fixed-rate financing for residential, commercial, industrial, agricultural and multifamily property owners who want to install energy efficiency, water conservation or renewable energy retrofits. The amount financed must be at least $2,500 and has repayment periods of 5, 10, 15 or 20 years, based on the life of the improvement.
The program was launched in 2010 and is open to the cities of Folsom, Granite Bay, Roseville, Rocklin, Auburn, Lincoln, Loomis, Newcastle, Penryn, Colfax and all other unincorporated areas of Placer County. mPOWER works in partnership with all of the County and City utility providers to help customers take advantage of available rebates and incentives. mPOWER has a long list of eligible energy and water efficiency improvements, many of which qualify for utility company rebates. However, since there’s no one-size-fits-all category, a customized system may also qualify.
mPOWER prides itself on exceptional customer service and employs specialists that have combined experience of 40+ years in building planning and construction. They are available to property owners to answer questions and offer experienced guidance in the selection of retrofit projects.
mPOWERhas funded over 9 million dollars in projects, representing 282 residential properties, 9 nonresidential properties.
mPower Program Documents:Application, Contractor Bid, Eligible Improvements, Lender Information and Acknowledgement, Fee Schedule , Assessment Contract, Assignment of Rights to Receive Financing, Request for Disbursement.
Contact: Visit the website at www.mpowerplacer.org or call for more information at 1.877.396.7693!
Property Assessed Clean Energy (PACE) financing is a new option available to Los Angeles County commercial, industrial and multi-family property owners to fund improvements that are proven to save water or energy or to create renewable energy onsite. Unlike a traditional loan, the financing is paid back twice a year through an assessment on the property taxes. In Los Angeles County, the property owner can choose their own PACE project financier and negotiate their own rate and terms. Because PACE investors are fully secured through a voluntary contractual assessment, PACE investors have the security to offer financing at lower rates and over longer periods of time than has been possible until now. Property owners benefit from no upfront out-of-pocket costs, as PACE financing allows projects to be amortized over a longer period of time so they can be “cash-flow positive” from day one.
This program is also part of Energy Upgrade California, a state-wide initiative to reduce energy consumption in existing buildings.
The City of Palm Desert worked with the California Legislature to pass AB 811, which gave Palm Desert the authority to enact their Energy Independence Program (EIP). The program allows property owners in Palm Desert to borrow money from the city for energy projects at their home or facility, and to repay those assessments through increased property taxes. The program was started using $2.5 million from the city’s general fund. All funds for phases 1, 2 and 3 of the program have been allocated. On February 8, 2010, Palm Desert launched the newest funding round with $6 million. Half of the amount will be reserved for efficiency projects, with the other half dedicated to solar projects. All EIP assessments $60,000 and higher must be approved by the city manager.
On August 26, 2010, the City of Palm Desert officially restarted the EIP after reviewing statements issued by Federal Housing Finance Agency (FHFA), Fannie Mae, and Freddie Mac challenging the seniority position of the EIP liens and indicating that participation in programs such as the EIP may violate mortgage contracts.
As a result, property owners who wish to participate in the EIP will be required to sign a disclosure statement as part of their application that explains the FHFA’s concerns in detail. The disclosure states that property owners who wish to participate in the EIP should consult with their first deed holder and research any implications the EIP lien may have on their mortgage loan.
Program Documents: Consent Agreement Form, Consent Agreement Letter, Eligible Equipment, Map of Program Area, EIP Inspection Verification Letter, Equipment Life Expectancy, New Loan Application with FHFA Disclosure, Appendix E with Summary Process, Guidance Statement.
Contact Person: If you have any questions or would like an application , please contact the Office of Energy Management at (760) 837-0287
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On March 25, 2009, Sonoma County’s Board of Supervisors authorized and launched its PACE program, called the Sonoma County Energy Independence Program (SCEIP). SCEIP was the first countywide municipal program of its kind in the State of California to provide PACE financing, and currently remains one of the largest programs in the nation providing both residential and commercial PACE financing.
Success Story: Paradise Ridge Winery, Santa Rosa used PACE to pay for solar
Sonoma County and each of its incorporated cities and towns (collectively the “Cities”) have established a goal to reduce their greenhouse gas emissions 25 percent below 1990 levels by 2015. The County, the Cities, the Sonoma County Water Agency, the Sonoma County Transportation Authority and the Sonoma County Agricultural Preservation and Open Space District are members of the Regional Climate Protection Coordination Plan (“RCPCP”) with the goal of coordinating efforts to reduce countywide GHG emissions. In 2008, these collaborating agencies viewed the opportunity provided by California state-enabling legislation to form a PACE assessment program as a significant tool in helping Sonoma County and its cities reach their aggressive GHG emissions reduction targets.
Joined by every incorporated city and town, SCEIP covers all areas in the geographic County of Sonoma. Since program launch, SCEIP has financed over $65 million in projects, representing over 1900 residential properties, 60 non-residential properties and 3240 individual improvements. Because a majority of the improvements have been performed by local contractors, most of the $65 million in funding provided by the County has remained within the local community generating over 80 job-years of local labor.
SCEIP allows more than 90 eligible measures for energy efficiency, water conservation and renewable generation. Since program launch, SCEIP has financed over 9.1MW of photovoltaic solar generation, equating to a GHG reduction of 7,873 tons annually. An effort to quantify the energy savings and GHG reduction for financed energy efficiency and water conservation projects is currently underway.
Program Documents: Replication Guidance for Local Governments, SCEIP Resolution 5, SCEIP Resolution 4, Assessment Contract Single, Assessment Contract Multiple, Assessment Implementation Agreement Single, Assessment Implementation Agreement Multiple, Approval of SCEIP bond documents for the Sonoma Mountain Village Photovoltaic Project, County Board Resolution on PACE Interest Rate.
The City of Yucaipa’s Energy Independence Program offered an exciting opportunity for property owners to finance energy efficiency and renewable energy improvements through a voluntary assessment. The program is no longer active, however, building owners in Yucaipa can take advantage of the San Bernardino HERO PACE program.
Colorado has enacted PACE enabling legislation, but there is no active PACE program.
Colorado Senate has recently passed new PACE enabling legislation, which now goes to the House floor for vote.
Colorado ClimateSmart Loan Program
Boulder County was a pioneer in the development of PACE. However, the ClimateSmart Loan Program, the Boulder County PACE program, is no longer operational, a victim of the Federal Housing Finance Agency’s rule against PACE.
Commercial and institutional properties including non-profits, apartment buildings, small manufacturing facilities and multifamily, low-income and/or elderly housing complexes were all eligible for the commercial ClimateSmart Loan Program. Commercial property owners chose a set of energy efficiency and renewable energy measures and applied for a minimum $3,000 and up to a maximum of $210,000 loan to fund the improvement. Each property owner who received financing through the program was responsible for repaying the loan via a special assessment on the improved property.
The Commercial ClimateSmart loan program is currently not accepting applications. Projects funded in 2010 are in process.
Boulder County, in collaboration with Elevations Credit Union and the City and County of Denver, is offering low-cost energy loans for your energy efficiency and renewable energy upgrades. For more information, please click here.
Connecticut has enacted PACE enabling legislation and is developing a statewide commercial PACE program.
On June 12th, the Connecticut legislature approved a revised PACE statute, allowing the State’s newly formed “Green Bank”, the Clean Energy Finance and Investment Authority (CEFIA), to offer property assessed clean energy financing and program services to municipalities and commercial property owners throughout the state. The revised statute restores senior lien status to PACE assessments, and gained the support of bankers and mortgage lenders in the state, by making them part of the project approval process.
Connecticut’s approach to C-PACE is exciting because CEFIA plays a central role in developing statewide program standards and guidelines that municipalities will agree to follow when joining. CEFIA is also empowered by the legislation to provide financing for projects.
All properties located within the boundaries of a municipality that has adopted a resolution joining the C-PACE program. Currently the following municipalities have adopted the program: Beacon Falls, Bridgeport, Durham, Hartford, Middletown, Norwalk, Simsbury, Stamford, West Hartford, Westport, and Windham.
Program measures is designed to ensure that energy efficiency and renewable energy projects help property owners and local governments achieve their goals of saving costs, safeguarding the environment, and creating jobs. Please refer to the list of eligible improvements.
CEFIA has developed a list of pre-approved capital providers (building owners are also free to use their own capital provider). This list could be viewed here.
Connecticut PACE program is open for business, if you have any questions, please contact CEFIA.
Florida has enacted PACE enabling legislation and at least one program has launched, with others near launch or in development
Ygrene Energy Funds announcement with Carbon War Room last fall of a program centered initially in South Florida has led to the formation of the Clean Energy Green Corridor District. Initiated by the Town of Cutler Bay, the District to date includes Miami, South Miami, Pinecrest, Palmetto Bay, and Miami Shores, communities that total about 650,000 people. The Green Corridor District plans to offer both commercial and residential PACE financing, though only commercial projects will be permitted in the City of Miami.
Ygrene Energy Fund Florida, a subsidiary of the California based leader in PACE program development, will administer the program, using its turnkey approach that provides administration, financing, contracting, and a range of assurances and performance guarantees to participating governments. According to Ygrene’s John Wakefield, the implementation process has been launched with initial project finance and property improvements expected this fall for likely completion in early 2013. Ygrene reports that it has secured funding through Barclays and is working to develop potential funding from other lenders capable of warehousing assessments.
In Miami-Dade, Ygrene uses a comprehensive marketing strategy that involves broad outreach to local stakeholders through workshops, newsletters, and presentations. As John Wakefield informs us, in every clean energy district Ygrene establishes an Energy Center to showcase new equipment and technology, offer assistance and resources to local property owners, and undertake contractor recruitment, training and certification. Building on the experience of the Sonoma County Energy Independence program, Ygrene developed its direct advertising efforts consisting of media ads, direct mailing, and community events to better reach local property owners. Overall, Ygrene puts emphasis on creating localized programs at a District level.
As for energy audits, Green Corridor uses home evaluation software tool to prioritize improvements and calculate the SIR (savings to investment ratio). Water conservation and wind hazard abatement projects could be offered to Green Corridor participating municipalities that choose to include these measures when they join. Green Corridor will not require consent from existing mortgage lenders, relying on Florida’s enabling statute requirements for notice only.
Contact Person: For more information, please contact John Wakefield via e-mail John.Wakefield@ygrene.us.
The Florida PACE Funding Agency (Agency) garnered plenty of attention when it received statewide judicial bond validation for up to $2 billion. Kissimmee and Flagler County are the original incorporators of the Agency to which other local governments may “subscribe” through a simple Interlocal agreement. Under authority established by Section 163.01, Florida Statutes, the Agency provides Florida municipalities a no risk, no cost, turn-key PACE solution. The Agency:
- Is a special purpose local government subject to Sunshine Law;
- Is governed by elected officials who understand what’s important to local governments;
- Is already judicially validated statewide to issue up $2 billion of bonds;
- Has $200 million of immediately available financing;
- Is able to immediately commence its turn-key PACE program upon signing of an Interlocal agreement with the Agency;
- Assures local governments that there is no cost or liability through its judicial validation;
- Is an open model allowing Counties to have multiple PACE Program providers for purposes of expanded program options for Property Owners and for price control;
- Provides financing for both residential and commercial property owners, and
- Complies with statutory lender notification and does not require lender consent.
Leidos (formerly SAIC Energy, Environment & Infrastructure LLC) was selected through competitive procurement to be the Agency’s Third Party Administrator. The Agency completed its first financing commitment of $200 million in March, 2014. The $200 million is immediately available to fund qualifying improvements in subscribed local governments. Currently, the Agency’s PACE program is available in Flagler, Nassau and Gadsden counties.
The judgment of the Florida Circuit Court of Leon County on validation is binding on all parties in Florida, and it provides a judicial finality to the question of whether a local government has the authority to impose its PACE assessments. Judicial validation also ensures protection from all program liability to subscribing local governments.
The $2 billion funding target may be achieved if just five percent (5%) of 20-year-old residential and commercial buildings in the state participate in the program at an average improvement amount of $15,000. Validation of the Florida PACE Funding Agency’s program does not extend to the Green Corridor or Florida Green Energy Works programs, which will have to seek validation of their individual programs.
The Agency offers PACE financing for qualifying energy efficiency, renewable generation and wind resistance improvements to both residential and commercial properties. The Agency will base its requirements on Florida law that does not require consent from existing mortgage lenders for projects that represent less than 20% of the property’s Just Market Value (Florida law does require consent for projects in excess of 20%). The Agency will follow Florida Statutes (s. 163.08) and provide a 30-day notice to existing lenders in order to accommodate adjustment of monthly property tax/insurance/escrow payments.
The Agency will encourage interested property owners to obtain an energy audit through authorized energy auditors, but an energy audit is not required. Each project is validated by the Third Party Administrator to ensure project costs and savings estimates are reasonable.
Contact Person: For more information, please contact Jonathan Schaefer, Program Manager with Leidos Engineering, Third Party Administrator for the Florida PACE Funding Agency via email: schaeferj@FloridaPACE.gov.
Florida Green Energy Works is administered by EcoCity Partners, L3C, a Florida low profit, limited liability corporation. The Towns of Lantana and Mangonia Park, both in Palm Beach County, recently joined to incorporate the Florida Green Finance Authority, the “separate legal entity” which any municipality or local government in Florida can join by interlocal agreement to scale the consortium. the program has launched and the website is accepting electronic applications in participating municipalities.
Florida Green Energy Works is focused on commercial PACE. While the program is equipped to offer both residential and commercial financing, at this point, residential funding is not being offered, due to the uncertainty created by the FHFA.
The program uses the “owner-arranged/open market” funding model and requires commercial property owners to provide notice and receive consent for the PACE assessment from their existing mortgage lender. When consent is obtained for a project, any market-based financing could be obtained. In other words, property owners can use any lender/ funding source, which open market advocates believe will induce competition and ultimately result in a lower interest rates and closing costs. EcoCity Partners is working with property owners and providers of funding to match the need with supply. The program expects to conclude its bond validation process by the end of the year.
Wind hazard abatement and water efficiency measures are an integral component of the program that will be available for local governments joining Florida Green Energy Works Program. Erin Deady, a lawyer active in developing Florida Green Energy Works and working with Leon County on the FHFA federal litigation, identifies the significant amount of data showing the linkage between water and energy efficiency improvements as justification for using PACE.
Florida Green Energy Works requires an energy savings audit completed by a qualified energy auditor or a certified building energy rater. At a minimum, this audit will include the following information:
- Recommendations for energy savings measures;
- Estimated energy savings and a priority ranking for each measure;
- Estimated renewable energy to be produced;
- Estimated greenhouse gas reductions; and
- Estimated cost savings resulting from the implementation of the recommendations and use of funds made available by the District.
A web based platform will collect and make data related to projects’ energy savings and environmental impacts (carbon reductions) readily available to the public.
Contact Person: Contact Mike Wallander via phone 818-527-6511 or email: Michael@ecocitypartners.com for more information.
Solar Energy Loan Fund or SELF is a certified Community Development Financial Institution (CDFI) and a national award-winning non-profit, 501(c) (3) corporation. SELF administers St. Lucie County’s Commercial PACE program. To date, the County has completed all of the necessary approvals for the PACE program. SELF also partnered with the Florida Green Energy Works program to establish additional Commercial PACE programs in the state.
Contact person: Doug Coward, Executive Director, (772) 468-1818.
Leon County Commercial PACE program
Leon County created Leon County Energy Improvement District in April, 2012 by passing an ordinance at the meetings of Board of County Commissioners. Leon County held a Board meeting on October 23, 2012 to determine whether the County is moving forward with RFP for a third-party administrator.
Program Documents: Leon County Board of Commissioners Agenda, December 23, 2012.
Georgia has enacted PACE enabling legislation and there is a PACE program in development.
A PACE program in Atlanta, Georgia is being spearheaded by Ygrene Energy Fund. In October 2012, Invest Atlanta, the Economic Development Authority for the City of Atlanta, decided to go forward with Ygrene’s Clean Energy Atlanta program. Read more here.
According to Ygrene, Clean Energy Atlanta can create 2,800 new jobs, generate $480 million in economic activity, and achieve tremendous reductions in carbon dioxide that contributes to global warming. Ygrene sets up a fully-funded, turnkey clean energy programs.
Any energy-saving or renewable energy-producing improvement that is permanently affixed to the property is eligible for funding through PACE. Eligible project groups include energy efficiency retrofits, water conservation measures, and renewable energy generation systems.
Hawaii has existing legal authority to set up PACE programs and there is some interest in developing a PACE program.
More information about PACE program in Hawaii is coming soon.
Illinois has enacted PACE enabling legislation and there is some interest in developing a PACE program.
More information about PACE program in Illinois coming soon.
Louisiana has enacted PACE enabling legislation and there is a PACE program in development.
Information about Louisiana PACE program is coming soon.
Maine has enacted PACE enabling legislation and there is a PACE program in place.
Efficiency Maine offers “PACE loans” to eligible property owners, however, it must be noted that there is no lien against the property in Maine. A Maine PACE loan is a loan taken by a property owner to finance the cost of making a qualified whole house energy upgrade with eligible energy savings improvements to the property. What makes a Maine PACE loan different from other loans is that it stays with the property. If a homeowner sells his or her home before the loan is paid off, the loan can either be paid off at the time of sale or can be transferred with the property to become the responsibility of the new owner.
Any residential property owner in a town that has established Maine PACE is eligible to take advantage of the program by meeting the following criteria:
- The homeowners have a debt-to-income ratio of not more than 45%
- Property tax and sewer charge payments are current
- The property is not subject to any outstanding tax or sewer liens
- The property is not subject to a reverse mortgage
The property is not subject to a mortgage or other lien on which there is a recorded notice of default, foreclosure, or delinquency
Residential buildings that have 1 to 4 housing units are eligible for a single PACE loan of up to $15,000 where no greater than 15% of building area is used for commercial activities. Condominiums are eligible for PACE loans regardless of the number of total units in a building where the loan can be attached to the deed of the condo owner.
Maryland has enacted PACE enabling legislation, but there are currently no PACE programs operating or in development.
Maryland Annapolis EZ|Energy Zone
Information about Annapolis Energy Zone is coming soon.
Massachusetts has enacted PACE enabling legislation and there is a PACE program in development.
More information on MA PACE program is coming soon.
Michigan has enacted PACE enabling legislation and one PACE program has launched, with another one in development.
The City of Ann Arbor created an energy assessment district under Michigan PACE law (Act 270, 2010). Clean Energy Coalition (non-profit) along with the City staff is administering the program. The program has launched and applications from commercial property owners are being accepted. Minimum project size is $10,000, with a maximum being $350,000. Financing will be done through pooling the assessments and issuing a bond once the amount reaches $1 mill. The interest rate is expected to be less than 5%. The City is contemplating private placement or general bond market. Loan Loss Reserve fund was established as a buffer for missed payments; the fund contains $393,000 (approximately 10 to 1 ratio). Energy audit is required to participate in the program (ASHRAE Level II and III). There are 7 pre-qualified auditors. The energy consumption will be tracked by collecting energy bills.
Ann Arbor’s PACE program instituted a pre-screening process that is meant to determine whether it makes sense for a certain property owner to apply for financing. During this process energy spending, loan –to-value ratio, and lender’s preliminal consent are determined. Such procedure came out of discussions with local and regional banks at the onset of the program.
Program costs are as follows: $300 review & application, $230 title search, and $13 annual fee.
The program has gotten a lot of attention in Ann Arbor partly due to McKinley Property Management’s involvement. McKinley’s owner is a PACE supporter and 5 McKinley’s properties applied for financing.
Michigan Lean & Green is a state-wide PACE program, structured to allow every municipality to join after holding a public hearing and passing a resolution of intent and adoption. To date, Lean & Green Michigan covers seven jurisdictions and is growing fast. Huron, Ingham, Macomb, Saginaw, and Wayne Counties and the Cities of Rochester Hills and Southfield have all joined. The program will likely double in size again within the next three months.
Lean & Green is actively talking to municipalities and building owners across the state. The outreach efforts are systematic and driven by Lean & Green Michigan and supported by the Michigan Economic Development Corporation, The City of Southfield, a number of energy contractors, and ESCOs. Lean & Green staff has held a number of meetings with government officials, lenders, building owners, and energy contractors.
Lean & Green Michigan allows municipalities to create a PACE district at no cost, with no need for new government staff or lengthy RFP processes, with access to private capital — and to do all of this cooperatively with other counties, cities and townships, building the regional economy. To create a PACE district with Lean & Green Michigan, a municipality simply votes to join by passing a local ordinance. There’s no need to hire or train additional staff or go through lengthy RFP processes. What is more, Lean & Green Michigan can be tailored to incorporate the particular needs of each municipality.
Lean & Green is open to a wide range of property types: very large manufacturing companies, industrial companies, smaller companies, apartment complexes, downtown businesses, office building, and data centers.
The program is requiring lender consent. Lean & Green financing model is termed open-market or owner-arranged. Lean & Green with match property owners with financial institutions. The minimum size of the project is $10,000 and there is no maximum size yet.
There is no blanket audit requirement for participating properties, instead, the necessary audit will be determined on a case by case basis.
Michigan’s largest law firm and most experienced public finance counsel, Miller Canfield, serves as PACE counsel to municipalities that join Lean & Green Michigan™ with no charge to establish the PACE district. Legal fees, along with the cost of running Lean & Green Michigan™, are incorporated into the financing of each PACE project. By joining Lean & Green Michigan™, municipalities allow their constituent property owners to gain access to banks and other sources of private capital that are part of the Lean & Green team. Lean & Green Michigan™ represents the best kind of “shared services.” Counties, cities and townships give up nothing, but by working together they create one statewide set of efficient and flexible PACE rules that really work for business, create the kind of common market that larger companies with multiple facilities need, save money, and avoid duplication and a blizzard of conflicting rules from place to place.
Click here to view eligible projects.
Contact Person: Andrew Levin, Levin Energy Partners, email: firstname.lastname@example.org
Minnesota has enacted PACE enabling legislation and there is a PACE program in place and a project has been completed in Edina.
Minnesota Edina Emerald Energy Program
A project was financed in Edina, Minnesota using PACE mechanism. Minnesota passed PACE enabling legislation in April 2010. Edina’s effort to put a program in place was also supported by the City’s Energy Commission, the Minnesota Pollution Control Agency, the Minnesota Solar Energy Industries Association, and the Minnesota Department of Commerce. The total cost of implementing the program was just $11,400. Today Edina’s Emerald Energy Program can fund any qualifying commercial or industrial property in the City. In order to participate, the project cost must exceed $2,500, the property must undergo an energy audit or an evaluation, and the property owner must be current on all property taxes. The application period takes less than 15 business days. To learn more about PACE deal in Edina, read our newsletter.
Contact person: Scott Neal, City Manager, 952-826-0401, e-mail: sneal@EdinaMN.gov.
Missouri has enacted PACE enabling legislation and there is a PACE program in development, near launch.
The City of St. Louis launched an innovative method for property owners to finance clean energy and energy efficiency improvements for their homes or businesses. As part of the City’s sustainability efforts, the Set the PACE St. Louis program enables residential and commercial property owners to finance energy efficiency, water efficiency and renewable energy upgrades with a novel funding mechanism that offers distinct advantages over traditional loans.
The program launched on July 2, 2013 and is actively accepting applications. Click here to apply.
The three primary objectives of the Property Assessed Clean Energy (PACE) financing program are: (1) encourage energy efficiency in buildings to reduce greenhouse gas emissions, (2) reduce energy costs and promote utility savings for building owners, and (3) foster green jobs and boost local employment opportunities. Some of the many eligible projects include energy efficiency measures, high efficiency lighting, roofs, heating ventilation air conditioning (HVAC) upgrades and controls, boilers, furnaces and water heating systems, as well as renewable energy systems such as solar PV panels and fuel cells.
In addition to low interest rates, PACE financing has distinct advantages over traditional loans:
• PACE loan stays with the property upon sale, transferring to the new owner
• Commercial property owners may pass payments through to tenants
• Borrowing capacity is preserved through off-balance–sheet financing
Missouri Clean Energy District program is launched and open for business. It is a statewide commercial PACE program capable of enrolling every municipality in the state.
Missouri Clean Energy Funding LLC, program administrator, and is actively working on getting municipalities to join the program. To date, the following municipalities have joined the program, namely: Branson (Taney County), Charlack (St. Louis County), Cole County, Cooper County, Ferguson (St. Louis County), Galena, Hazelwood (St. Louis County), Hollister (Taney County), Jefferson City (Cole County), Nixa, Olivette (St. Louis County), Ozark and Ozark County, Taney County, and Warrensburg ( Johnson County), West Plains.
The process of joining is simple and it does not involve a public hearing since there are no public funds involved. Once a municipality passed an ordinance, it officially joins the Clean Energy Development Board, which has the authority to levy assessments on properties. Property taxes are collected in a single installment on December 31st in Missouri.
Financing for the program will be provided through a warehouse model – local and regional banks will offer a line of credit and a separate loan loss reserve fund amounting to 10% of assessments. Bonds will be issued once project reach roughly $5 million. The interest rate is expected to fall between 6.5 and 6.75 percent. The program will acquire lender consent for each project. Minimum size of the project is $5,000, while there is no maximum amount.
Some major project eligibility requirements are:
• Property must be physically located within the Clean Energy Development Board’s financing district
• Must be current on property taxes for the last 3 years with no involuntary liens
• The applicant may not request more than 15% of the Assessor’s appraised value of the property
• Commercial properties must have a min. 50% occupied or may be appealed to the CEDB for approval
• Term will not exceed useful life of improvements or maximum of ten years.
For more details, please check out Project Underwriting Guidelines.
As the Program Handbook illustrates, there is not a list of specific program requirements, but proposed improvements must be:
• Only permanently fixed, new Improvements are eligible for Program financing
• They must provide an economic benefit equal to or greater than the cost of the assessments.
• They must be installed by a contractor or vender approved by the Board.
• The economic benefit of the improvements must be verified by an approved energy auditor, professional engineer or, in certain cases, by documentation provided by the manufacturer.
According to Missouri PACE statue (House Bill 1692), “the estimated economic benefit expected from the project during the financing period is equal to or greater than the cost of the project.” Therefore, program staff is going to use the list of state approved auditors and professional engineers to sign off on the projects.
As for the outreach efforts, the Missouri Clean Energy District program engaged a lobbying firm, Renew Missouri, and business development program at the University of Missouri to help market the program to municipalities and property owners.
Contact Person: For more information, please contact David Pickerill, Principal at MoCEF, (866) 554-4083, e-mail: email@example.com.
New Jersey has enacted PACE enabling legislation and there is a PACE program in development.
Like other states, New Jersey now allows municipalities to establish PACE funding programs to finance conservation and clean energy improvements for private property owners.
The programs may cover both residential and commercial properties, but owing to federal mortgage policies only commercial properties can be easily covered at this time.
Municipalities have wide latitude to cover a range of improvements. The key element of the programs is that repayment is made through a special assessment that is paid along with regular property taxes.
This minimizes the risk to lenders and investors. Both the improvements and the payments are transferred if the property is sold, thereby also limiting the liability of the current owner.
Contact Person: Jonathan Cloud, New Jersey PACE, firstname.lastname@example.org, 8 Revere Drive, Basking Ridge, NJ 07920, Office: 908-396-6179, Cell 908-581-8418, Fax 908-842-0422.
New Mexico has enacted PACE enabling legislation and there is a PACE program in development.
New Mexico PACE
Information about New Mexico PACE is coming soon.
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New York has enacted PACE enabling legislation and there is an active PACE program.
Long Island Green Homes (LIGH) is a Town of Babylon program that helps homeowners make energy efficiency improvements, by financing all of the upfront costs. To learn more about the program, check out this article in the Wall Street Journal.
Ohio has enacted PACE enabling legislation and a PACE project has been completed by the Toledo-Lucas Port Authority, other programs are in development.
More information about ONOAED’s commercial PACE program is coming soon.
Toledo-Lucas Municipal PACE
Toledo-Lucas County Port Authority completed a PACE financing this year. To learn more, please check out this press release from Bricker & Eckler.
More information on this deal is coming soon.
On April 10, 2013, the Cincinnati City Council unanimously adopted a motion calling on the administration to establish a PACE financing program for renewable energy and energy efficiency investments throughout the City of Cincinnati. The Council’s motion identified the Greater Cincinnati Energy Alliance and the Port of Greater Cincinnati Development Authority as the lead entities in developing the program. A report on the program is due back to the Council within 60 days.
Rhode Island’s General Assembly passed a PACE Enabling legislation and Governor Chafee singed off on new program modeled on Vermont’s subordinate lien PACE program.
Texas has PACE enabling legislation and is in the process of putting a PACE program in place. For more information, please contact Keeping PACE in Texas: http://www.keepingpaceintexas.org/
PACE enabling legislation was recently adopted in Utah, the efforts to put a PACE program in place are underway.
Utah has passed PACE enabling legislation in March and the bill was signed by the governor. Utah Clean Energy, a local non-profit, has been actively involved in the efforts to secure the passage of this legislation by working with key interest groups in Utah. Our recent newsletter details this work and serves as a replicable template for legislative efforts elsewhere.
Utah PACE bill, SB 211, sets a great foundation for a future PACE program in the state.
If you have any specific questions and you are interested in being involved in program development efforts, please get in touch with Utah Clean Energy.
Vermont has enacted PACE enabling legislation and there is a PACE program in place.
Efficiency Vermont helps all Vermonters to reduce energy costs, strengthen the local economy, and protect the environment by making homes and businesses energy efficient. Vermont PACE program is open to residential properties.
Residential property owners will apply for the program, describing the energy improvement(s) they wish to make. If approved, the property owner will enter into an assessment contract with their municipality. The municipality will advance the cost of the improvements to the contractor and place an assessment lien on the taxpayer’s property. The property owner then repays the municipality for the improvements as an assessment on his / her property tax bill over a 10, 15, or 20 year period. If the property owner sells the property before the assessment has been completely paid off, the obligation to pay the assessment stays with the property and is repaid by the new owner of the property, or the assessment can be paid off in full with no penalty.
Vermont PACE program is different from a standard PACE model because PACE assessments in Vermont are not given a lien priority over the existing mortgage. Such structure is called a subordinate lien.
Click here to see which municipalities created PACE districts in Vermont.
Virginia has enacted PACE enabling legislation and there is a PACE program in development.
More information about PACE program in Virginia is coming soon.
Wisconsin has enacted PACE enabling legislation and there is a PACE program in place.
Milwaukee Energy Efficiency program (Me²) is a federally funded program to help City of Milwaukee homeowners and businesses finance energy efficiency upgrades to their properties. Me² makes it easy and affordable to make energy saving upgrades such as insulation, air sealing, new heating equipment and lighting. With Me², you can pay for your upgrades as you save on your energy bills, in most cases with no money down.
Whether you’re a homeowner or business owner, Me² has the expertise and resources you need to start saving energy and money at home and at work. Homeowners get started be completing and submitting the online sign up form. Businesses get started by completing and submitting the commercial interest form.
Me² is a partnership between the U.S. Department of Energy, the Milwaukee Office of Environmental Sustainability and Focus on Energy.
Me² Success Story: The Newport at 1610 N. Prospect Ave. is Milwaukee’s first property to take advantage of Commercial Me². The $692,000 proposal on the co-op apartment building, developed by Johnson Controls will renew the building’s boiler, chiller and control systems. It will slash the building’s energy bill by at least $48,000 each year, saving more than 15% of its utility consumption. With Me², building owners are able to distribute costs over time so upgrades can be made without raising the tenants’ association fees.
Program Documents: Program Manual.
This program is designed to financially assist you with the cost of purchasing and installing qualified renewable energy systems and efficiency improvements on your property. To accomplish this goal, a loan pool has been established to offer low cost financing to residential customers, with annual installment payments collected through annual property tax bills.
Contact person: Mike Noreen at 715-426-3467.
Program Documents:Program Guidelines, Project Finance Application, Pre-approval checklist, Project Finance Worksheet, Notice to Proceed, Building Permit, Finance Program Loan Agreement, Promissory Note, Mortgage Document, General Application Form, Distributed General Interconnection Agreement, Installation Affidavit, Final Bill Submittal, Property Taxes Form.
D.C. has enacted PACE enabling legislation and there is a PACE program in place.
The purpose of the DC PACE Commercial Program is to provide an attractive financing solution that will help commercial property owners implement energy efficiency improvements. Projects financed by DC PACE Commercial will:
- Provide an exception financial return for the property owner
- Spur job creation and economic development in the District of Columbia
- Increase energy security for residents and businesses in the District
- Reduce greenhouse gas and other noxious emissions in the metropolitan region
DC PACE Commercial will accept financing applications from property owners beginning Fall, 2012.
Contact person: Dave Good (email@example.com, 202.645.4519) at the District Department of the Environment for more information.
Project Documents: D.C. PACE Overview Brochure.