Earlier this spring, ILSR released its 2018 Community Power State Scorecard, revealing the best and worst states for local clean energy across the country. Did many states improve on their 2017 score? In this new comparison of state rankings, we take a closer look at which states have taken the lead, which are improving, and which have a lot more to do when it comes to creating a policy landscape that enables distributed energy.… Read More
Each year, the Institute for Local Self-Reliance provides a score for each state’s energy policies based on how they help or hinder local clean energy action. In 2018, 21 states had a failing grade, 17 were mediocre, 11 had a passing grade, and just 2 excelled at enabling residents to act individually and collectively to take charge of their energy future.… Read More
A promising energy efficiency program could get closer to reaching its massive potential after a federal policy tweak that tempers lenders’ concerns to allow more homeowners to cash in. Variations of the Property Assessed Clean Energy program, better known as … Read More
Earlier this year, the state of California announced a $10 million loan-loss reserve to solve the Federal Housing Finance Agency’s severe restrictions on using property-tax based financing for energy efficiency and renewable energy on residential property. It’s a great concept, but … Read More
Does a Riverside County, CA, residential energy financing program put thousands of homeowners on a collision course with the Federal Housing Finance Agency (FHFA)? In a proposed rule-making, the FHFA has suggested that Property Assessed Clean Energy (PACE) policies represent a … Read More
After effectively suspending residential PACE energy efficiency and renewable energy municipal financing programs in 2010 and then being taken to federal court and required to do a revised rule making, the Federal Housing Finance Agency (FHFA) released its revised ruling … Read More
Property-assessed clean energy (PACE) financing launched three years ago with great promise. The premise was simple: pay for building energy efficiency and on-site renewable energy with long-term property tax assessments, aligning payback periods and financing terms. The residential program’s rapid expansion came to a screeching halt in mid-2010 when the Federal Housing Finance Agency told lenders that Fannie Mae and Freddie Mac would not buy mortgages with PACE assessments on them.
Commercial PACE was left alive, and programs for business and industry are finally getting scale.
In September, the Carbon War Room announced a business consortium would provide $650 million in financing for commercial energy efficiency and renewable energy improvements for two regions: Sacramento, CA, and Miami, FL. San Francisco announced a similar program in October, with $100 million in private funding. For comparison, the largest operational PACE program to date in Sonoma County, CA, has completed $50 million in retrofits.
An interesting difference in the new programs is that they inject private capital into PACE programs that were often envisioned as publicly financed (e.g. using municipal revenue bonds). It’s a welcome development, however, since public sector programs had grown slowly – if at all – since the FHFA decision to curtail residential financing.
The opportunity in commercial PACE alone is enormous. The Pacific Northwest National Laboratory estimates that building energy consumption could be cut by 15-20% in the United States with the right technologies and tools. Since buildings represent 40% of energy use, beefed up commercial PACE activity could be a big step in the right direction.
For more on the residential program and attempts to revive it, visit PACENOW.org.
A short slide deck providing a “101” on Property Assessed Clean Energy (PACE) financing, a status update on the legal challenges, and some of the policy design issues we explored in our report on Municipal Financing Lessons Learned.
With a ruling that the Federal Housing Finance Agency (FHFA) must do a formal rulemaking on its 2010 decision to torpedo the innovative local finance tool for energy efficiency and clean energy retrofits, a federal judge gave Property Assessed Clean Energy (PACE) financing new life.
Earlier this year, it looked as if prospects were bleak for PACE in 2011, with some progress on Commercial PACE and a new director at advocacy organization PACENOW, but agonizingly slow steps on federal legislation and litigation.
Today’s ruling means FHFA has to start over, but it does not overturn the agency’s 2010 advisory against PACE, leaving the program in limbo until the formal rulemaking is complete. Here’s hoping PACE finally wins through, a great tool for saving energy and creating jobs at the local level.