PACEProperty Assessed Clean Energy

Voluntary Opt-In Financing for Energy Upgrades

Economic Impact Projections of PACE

$1 million in PACE expenditures generates:• $2.5 million in gross economic output• 15 jobs• $250,000 in tax revenue to local, state, or federal taxing entities

Other benefits:• Notable reduction in energy costs to property owners• Reduction in risk of default on mortgage loans• Increased resale value for PACE-impacted buildings• Additional stabilization of the general economy

Elements:• 1st multi-jurisdictional PACE program• financing opportunities for energy efficiency & renewable energy• funded through public offering of taxable and tax-exempt bonds• primary goal was to reduce community’s carbon-footprint• 1st phase financed $9.8 million in residential energy retrofits• Total Phase 1 costs, including risk-management reserve fund,

loan fees, loans, and other costs = $13 million• Following FHFA intervention, Boulder County proceeded with

implementation of a commercial PACE program but suspended the residential program, which was poised for Phase 2 implementation

Economic Impacts from Boulder County, CO’s ClimateSmart Loan Program

Economic impacts based on 598 project invoices & $9 million in spending:• +85 short-term jobs in Boulder County, +41 additional statewide• +$5 million in earnings in Boulder County, +$2 million additional statewide• +$14 million in economic activity in Boulder County, +$6 million additional statewide• Biggest winners by industry: retail & wholesale trade, construction, service• Reduced energy use saved participants approx. $125,000 during the first year on their

electric and gas utility bills (>$200/project invoice)

Economic Impacts from Boulder County, CO’s ClimateSmart Loan Program

Economic Impacts from Boulder County, CO’s ClimateSmart Loan Program

Assessment:• Short-term, in-county benefits alone exceed the

investment made by local government• Indications that the program spurred significant energy

retrofit spending beyond that reflected in PACE applications

• Certain elements of the program reflect a bias towards GHG emission reduction rather than job creation/economic development--these parameters could be refined if this program were replicated

• Significant demand for PACE financing likely remains in the residential sector

• Program forecasts are optimistic

Resources & Case Studiespacenow.org - PACE resource

pacenow.org/wp-content/uploads/2013/09/NJPACE-Benefits8-26-13.pdf - NJ PACE case study

pacenow.org/c-pace-case-studies/ - more case studies

http://www.nrel.gov/docs/fy11osti/52231.pdf - Economic Impacts Boulder, CO

http://aceee.org/sector/local-policy

http://pacenow.org/wp-content/uploads/2013/06/2013.06.12-JCI-Pick-up-the-PACE.pdf

PACENow.org Youtube Video

States with active PACE legislation

PACE Supports Local Jobs

• PACE projects support local contractors and suppliers• PACE property owners pay less in utility bills, use excess savings to pay for other needs• PACE attracts and retains

local businesses

PACE Overcomes Cost Barriers• With PACE:

– Projects eligible for 100% financing if property has adequate equity

– Little or no upfront cost for owners– Capital and credit can be saved for other needs– Repayment occurs over the same time period that

savings are realized– Energy savings pay for project costs

PACE Programs in Florida4 PACE programs currently active or in development:• Florida Green Energy Works- Lantana, Mangonia

Park, West Palm Beach, Boynton Beach, Delray Beach, Lake Worth, Tequesta, Fellsmere, Stuart, Gulfport, Martin County, Broward County

• Florida PACE Funding Agency- Flagler County, Kissimmee, Nassau County

• Solar Energy Loan Fund- St Lucie County, Fellsmere, Sebastian, Stuart

• Ygrene- Cutler Bay, Pinecrest, Miami Shores, Palmetto Bay, South Miami, Miami, Cape Coral

Next Steps

1. Placed on agenda for City & County meetings2. Appoint staff and existing advisory committee to evaluate PACE programs3. Determine PACE parameters4. Presentations by PACE programs5. Request For Proposals(RFP) to choose provider or create program

Decision made to implement Commercial PACE, with third-party administrator(s)

County/City adopt together

through interlocal agreement

Select one or more third-party PACE

administrators, and negotiate agreement(s)

County adopts on its own

POSSIBLE OPTIONS FOR IMPLEMENTATION OF VOLUNTARY PACE PROGRAM

County determines parameters

Allow municipalities to opt-in

County/City negotiate parameters

Allow other municipalities to opt-in

Issue RFQ/RFP for third-party administrator

Hear two or more presentations

Jointly issue RFQ/RFP for third-party administrator

Jointly hear two or more presentations

Interlocal agreements with Property

Appraiser and Tax Collector

Jointly select one or more third-party PACE

administrators, and negotiate agreement(s)

Interlocal agreements with Property

Appraiser and Tax Collector

OR

Alachua Clean Energy & Gainesville Loves Mountains

https://www.facebook.com/AlachuaCleanEnergy https://www.http://gainesvillelovesmountains.wordpress.com/