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The Property Assessed Clean Energy (PACE) program provides low-cost, long-term financing for water and energy efficiency and conservation improvements to commercial and industrial properties. In 2013, the Legislature passed Senate Bill 385 (83R) allowing municipalities and counties to work with commercial lenders and property owners to pursue improvements using property assessments as a secure repayment mechanism.
Under a PACE arrangement, private property owners evaluate measures that achieve energy savings and obtain financing, repaid as an assessment on the building. The assessment mechanism allows access to low-cost, long-term capital to finance improvements to the property. By eliminating upfront costs, extending financing and simplifying the transfer of repayment obligations to new owners upon sale, PACE overcomes challenges that have hindered building energy efficiency and related projects.
Tools for Establishing a PACE Program
The U.S. Department of Energy (DOE) collaborated with more that 30 state and local government participants to develop a Commercial Property Assessed Clean Energy (C-PACE or Commercial PACE) Toolkit. Local governments can use these resources to improve their understanding of a PACE program and help them ask the right questions when they consider implementing a program.