A ‘PACE’ Study Designing and Implementing a PACE Program in Your City or Region Michael Emancipator Callahan & Associates Assistant Vice President

W HAT IS PACE? Property Assessed Clean Energy Cities provide access to financing for advanced energy projects The financing is repaid through a “special tax” or “assessment” on the property tax bill Cities can determine project eligibility (i.e., efficiency projects, renewable projects) underwriting standards (FICO scores, tax delinquencies) contracting standards (BPI certified, NABCEP certified) Cities typically either create entities, or hire companies, to operate the PACE program

PACE B ENEFITS Long Repayment Repayment transfers with ownership Information from trusted source Job creation Low Interest Rates Source: Guide to Energy Efficiency & Renewable Energy Financing Districts for Local Governments

H OW TO S TART A PACE P ROGRAM 1.Check whether your state has a PACE-enabling statute (DSIREUSA.org, for PACE Financing Option) 2.Determine what local legislation is needed 3.Form, or hire, a program management group to design program 4.Establish a partnership with a financial institution 5.Property owners sign tax assessment 6.Project commences 7.Repayment on property tax bill

E XISTING PACE P ROGRAMS

N ORTHEAST O HIO A DVANCED E NERGY D ISTRICT (AED) Authorized under ORC 1710 – allows solar PV & thermal, energy efficiency, geothermal, wind, biomass & gasification Made up of 15 municipalities (PPS) Local grant money ($100K) was used to hire legal counsel and administrative staff Each PPS requested city councils to join the AED as initial members Each city signed a petition to join & erected demonstration projects Each PPS signed the Articles of Incorporation and designated city officials as Board Members of the AED  Board sets contractor standards, project eligibility, borrower eligibility First Round only for commercial-industrial property

L ESSONS & I SSUES Repayment – structure loan to PACE entity so that the 1 st payment isn’t due until the 1 st tax assessments are collected Contractors – identify contractors, and standards for contractors as soon as possible  best source for marketing Down-payment – structure term loan funds so that there is access to pay contractors a down-payment Streamline the application – Countless numbers of contractors and property owners turned-off because of length and complexity of the document FHFA Problems Educate Early & Often – continual problem of ensuring residents, contractors and city council & officials are well-informed