PACE funds energy upgrades to buildings that create jobs, make properties more valuable, and help states achieve policy goals. It’s 100% voluntary and it’s being adopted in every region of our nation.

PACE Updates

Set the PACE St. Louis Closes $10mm PACE Clean-energy Project in Grand Center Arts District

Source: City of St. Louis

Started in the summer of 2013, Set the PACE St. Louis is a part of the City’s award-winning sustainability plan.

This week, the City of St. Louis closed one of the largest Property Assessed Clean Energy (PACE) projects nationwide with the recent financing of the Missouri Theatre building at 634 N. Grand in the Grand Center Arts District in Midtown St. Louis. Set the PACE St. Louis, the City’s clean-energy financing program, will help the developer, Lawrence Group, install comprehensive energy efficiency measures as part of the overall $65 million mixed-use development. The project will include the 146-room boutique Angad Arts Hotel, a full-service restaurant, two 3,000-square-foot banquet rooms and separate meeting facilities, and a 150-vehicle parking lot.

“We are excited for Set the PACE St. Louis to play a significant role in the development and energy savings of an important and iconic structure in the Grand Center Arts District,” said Otis Williams, secretary of the City of St. Louis Clean Energy Development Board (CEDB), which provides oversight for the program. “This project will achieve millions in savings and create more than 1,200 well-paid, local construction jobs in addition to creating 170 ongoing jobs in the hospitality sector.”

The PACE-financed portion of the Missouri Theatre redevelopment is expected to achieve $659,527 in total cost savings in the first year through savings on energy and maintenance and operations expenses. Energy improvements include: insulation, windows, LED lighting, high efficiency heating and cooling, and building envelope measures. Total savings over the entire 20-year term of financing is expected to be $10,924,304, while eliminating an estimated 66,000 tons of carbon emissions.

“The redevelopment of the Missouri Theatre building has been in the works for some time and PACE-financing is a critical piece of the puzzle,” said Steve Smith, CEO of Lawrence Group, the project’s lead developer. “Because PACE-financing leverages 20 years of future savings and makes this amount available today, it acts like a capstone for the project’s entire capital stack and completes the financial picture. We are happy to utilize this excellent tool that the City provides and are considering its use on future projects as well.”

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MikeSet the PACE St. Louis Closes $10mm PACE Clean-energy Project in Grand Center Arts District

California Legislature Approves State Regulation and Enhanced Consumer Protections for Residential PACE

The California Legislature has passed two bills that will work in tandem to provide strong consumer protections and a regulatory framework for the state’s residential PACE programs. AB 1284, sponsored by Assembly Member Matt Dababneh, and SB 242, sponsored by Senator Nancy Skinner both passed with overwhelming bi-partisan support.

In less than 10 years, PACE has grown from a niche market option to the most successful energy financing program in California history. “Nearly $4 billion in upgrades shows that California homeowners embrace PACE as the best way to pay for improvements that make homes more comfortable, energy efficient and resilient against natural disasters,” said David Gabrielson, Executive Director of PACENation. “State regulation is an important next-step in the evolving PACE marketplace, and we are thrilled that the legislation provides a pathway to ensure the safety and protection of PACE consumers.”

Under AB 1284, the California Department of Business Oversight (DBO) will become the regulatory body for residential PACE administrators operating within the state. The legislation establishes licensing requirements for contractors, new underwriting guidelines that include income verification and ability-to-pay standards, and other consumer protection enhancements. “The leadership of Senator Skinner and Assemblyman Dababneh has evolved PACE into a long-term viable solution for homeowners, while providing a model for states across the nation to base PACE on income and ability-to-pay, and with a comprehensive suite of consumer protections and enforcement tools,” said JP McNeill, CEO of Renovate America.

SB 242 focuses squarely on standardizing best practice guidelines and disclosures for residential PACE administrators. The legislation requires that PACE administrators record a live phone call with customers to confirm agreement of terms, provides homeowners a 3-day right to cancel, and mandates reporting to public agencies. “Renew Financial is honored to stand with Assemblyman Dababneh and Senator Skinner, as well as the consumer advocates, business leaders and environmental organizations who worked so hard to strengthen PACE financing for California homeowners,” said Cisco DeVries, CEO of Renew Financial.

SB 242 was strongly supported by League of Conservation Voters California and Efficiency Demand Management Council – and both bills were strongly supported by Sierra Club California, Natural Resources Defense Council, Environmental Defense Fund, Advanced Energy Economy, California Solar Energy Industries Association, Vote Solar, Climate Action Campaign, Brightline Defense, Build It Green, California Energy Storage Association, Center for Sustainable Energy, and Cleantech San Diego. In addition, a host of local government leaders and the California League of Cities and California State Association of Counties were on board.

PACENation is proud to have been a part of the industry-wide stakeholder coalition that worked for a year on the success of these bills. Negotiations between low-income consumer advocates, environmental groups, PACE program administrators, and the banking industry have resulted in California legislation that sets a regulatory precedent for R-PACE programs throughout the country. “Someday, I would like to see the money and energy saving benefits of PACE become available to every homeowner in the Country, and these bills put in place a framework to scale R-PACE safely and effectively,” said David Gabrielson, Executive Director of PACENation.

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MikeCalifornia Legislature Approves State Regulation and Enhanced Consumer Protections for Residential PACE

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Resources & Downloads

PACENation’s Consumer Protection Policies

PACENation’s consumer protection policies (CPP Version 2) represent the strongest protections and disclosures for homeowners investing in energy efficiency or renewable energy.

Study: PACE Makes Homes More Valuable

In the first economic study of homes with PACE upgrades, three different methodologies and three home price indices were examined and all turned up the same results; PACE is good for the resale value of homes, even after taking into account the financing costs. Published in the Journal of Structured Finance January 2016.

Whitepaper: Benefits of PACE for Commercial Real Estate Companies

For commercial real estate property owners, PACE financing can remove the typical barriers to the implementation of energy efficiency improvements. In this whitepaper, George Caraghiaur explains how to take advantage of the many benefits PACE provides to commercial real estate companies.

2009-2016 C-PACE Market Overview

From 2009-2016, the commercial PACE market provided financing for 1020 commercial projects that amounted to $340 million in total funding.

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