Bipartisan Support for PACE
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.
Officials from both sides of the aisle at every level of government have voiced strong support of PACE legislation and local PACE programs. PACE is a financing tool that helps accelerate private investments in a variety of local economic development projects, and local PACE programs have already brought billions of private investment dollars to communities across the U.S. since the first PACE program launched in 2008.
PACE impacts on local economies:
Residential financing completed
Commercial financing completed
The following states have enacted PACE-enabling legislation:
(Highlighted according to 2016 presidential election results)
These are just a few of the representatives that have supported PACE in their states:
State Senator, John Carona (R-Texas)
“PACE will help Texans meet the conservation goals in our State Water Plan and reduce demand on our electric grid. These savings will benefit the building owners directly and help keep the Texas economic engine primed for growth and prepared for the continuing influx of people moving to Texas to share in our prosperity.” (Source).
Governor, Jerry Brown (D-California)
“PACE enables homeowners to buy solar panels, install low-flow toilets and make other smart investments that save energy and water without breaking the bank. As California confronts a severe drought and a rapidly changing climate, this program gives homeowners another opportunity to do their part.” (Source).
House Majority Leader Adam Hasner (R-Florida)
“PACE is a no-cost to taxpayers, no-mandate, consumer opt-in approach to bringing clean energy technology to homeowners and businesses which will help create jobs for Floridians at a critical time when we are working to get Florida’s economy back on track.” (Source).
Governor, Dannel Malloy (D-Connecticut)
“Through the use of innovative financing tools like C-PACE, we can make energy cleaner, cheaper, and more reliable. Improving energy efficiency, addressing conservation, and supporting alternative sources of power are important for growing Connecticut’s clean energy economy and reducing costs for residents, businesses, and government.” (Source).
State House Representative, Jim Keffer (R-Texas)
“A legislative priority for this session was investment in Texas’ infrastructure – roads, power, and water – to support this state’s economic boom. Investing in building infrastructure to address delayed maintenance will improve our buildings’ value, create jobs, and help the state meet its water and energy conservation goals.” (Source).
President Barack Obama
“Today we’re offering even more families and communities the chance to choose cleaner sources of energy that save you money and protect the planet for all of us. We’re making it easier for American homeowners to take advantage of a new program called PACE.” (Source)
Senate Rules Chair, Kevin T. Van Tassell (R-Utah)
“It’s really one of the issues that really makes a difference, it allows 100% financing on some of these projects that normally wouldn’t qualify for traditional financing at 100%.” (Source).
Senator, Bernie Sanders (D-Vermont)
“As a strong advocate for energy efficiency and sustainable energy, I am pleased Vermont is among the states that is moving forward with programs to help homeowners pay for energy saving improvements in their homes. PACE is a win-win-win because it saves families money on their energy bills, creates local jobs, and reduces greenhouse gas emissions.” (Source)
- PACE makes investments in energy efficiency and renewable energy more feasible for a wider group of homeowners and business owners. PACE doesn’t rely on personal credit (which can be a barrier to obtaining financing for many low-income homeowners and small businesses) but rather depends on equity in the property. PACE also allows for longer payback terms than most other forms of financing — up to 25 years. As a result, PACE brings in more private investment dollars for projects that otherwise may have been left stranded.
- These investments directly create jobs for HVAC contractors, energy services companies, and solar installers, which are often small local businesses.
- Commercial PACE financing can be used to reinvigorate business districts through redevelopment projects, such as Milwaukee’s Mackie Building restoration, which used $1.7 million PACE financing for efficiency improvements to prepare the building for the addition of 25 apartments and new office space. These changes will bring new business to a historical area of downtown Milwaukee.
- PACE puts money back in consumers’ pockets in the form of utility bill savings, tax deductibility of the assessments (in some cases), and lower insurance premiums in areas where resilience, such as hurricane hardening or seismic retrofits, is an important factor. People will recirculate these saved dollars into the local economy, creating an economic multiplier effect that further creates local jobs.
- PACE improvements (being permanent, income- or savings-generating fixtures to properties) increase property values, which, in the long-run, leads to greater tax revenues for municipalities that can be used for public programs that further benefit the local community.
To learn more, read a study of the Economic Impact of Residential PACE Programs by EcoNorthwest.
- PACE helps communities achieve important energy and water conservation goals. Efficiency projects upgrade old equipment which reduces energy use and makes buildings more valuable, and solar power helps homeowners and business owners save money on their electricity bills.
- PACE allows for projects with paybacks of 20 years, rather than only low-hanging fruit with quick paybacks. This makes possible comprehensive projects with a deeper impact on energy usage.
- PACE has been used to finance an estimated $88 million for water conservation in drought-stricken areas of California, saving multiple billions of gallons of water.
- PACE is used to strengthen building exteriors and windows against hurricanes in Florida, which improves buildings’ resiliency and saves money on insurance premiums.
- Most PACE programs make use of private funding, not municipal dollars.
- It is possible to set up a PACE program without any cost, or minimal cost, to the participating municipality. In the case of Lean & Green Michigan and the Texas PACE Authority, these programs set up the necessary administration framework and allow municipalities sign onto the program at no cost. Funding is then secured from private institutions to complete commercial projects.
For more information on program types and structures, see the page “Start a PACE Program.“
- PACE offers additional consumer protections over and above other types of financing.
- PACENation has released Consumer Protection Standards, which provide the strongest protections for homeowners using PACE, and unique protections compared to other forms of financing. They address:
- A homeowner’s eligibility for financing and ability to repay
- Comprehensive financial disclosures
- Appropriate contractor conduct
- Acceptable products and projects (with pricing guidelines)
- Post-funding support
- Treatment of protected classes
- Grievance procedures
- Data security and privacy matters