PACE in California

Background

California first enabled PACE in 2007 with the passage of AB811, which amended the state’s existing laws to allow PACE financing for renewable energy and energy efficiency improvements to homes and businesses. In 2010, state legislators passed SB77, which set up the state’s Loan Loss Reserve Fund for residential PACE programs (see links to California’s PACE laws below). Residential and commercial PACE has flourished in the state since then, financing over $2 billion for clean energy improvements throughout the state. Currently, there are 12 active programs operating in California.

Active PACE programs

1466123363_tick_16 Residential           1466123363_tick_16 Commercial

alliance-NRG

The Alliance NRG Program is a Property Assessed Clean Energy (PACE) financing program for residential and commercial properties. Alliance NRG is an approved lender for CSCDA’s Open PACE Program.

The AllianceNRG Program combines the expertise and resources of  Leidos Engineering and CounterPointe Energy Solutions in a focused effort to provide a nationwide funding platform. The AllianceNRG Program provides up to 100% financing for energy efficiency and renewable energy products for both residential and commercial property owners.

Click here to see the list of participating communities. Contact Alliance NRG here, or by phone at (855) 431-4400.

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1466123363_tick_16 Residential           1466123363_tick_16 Commercial

The CaliforniaFIRST Program is a Property Assessed Clean Energy (PACE) financing program for residential and commercial properties. Administered by Renew Financial, a national clean energy finance company, CaliforniaFIRST allows property owners to finance the installation of energy and water improvements on homes or businesses through the issuance of a municipal bond, which can then be paid back as a line item on their property tax bill. CaliforniaFIRST financing doesn’t rely on a credit score and does not require any money down, opening the program to a wide range of Californians.

The CaliforniaFIRST program is a program of the California Statewide Communities Development Authority (CSCDA), a joint powers authority co-sponsored by the California State Association of Counties and the League of California Cities. Click here to see the list of participating communities.

Contact California First: Email: info@CaliforniaFIRST.org, Phone:  (844) 589-7953.

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 Residential            1466123363_tick_16Commercial

CleanFund’s core commercial PACE capital program, PACEDirect™,  for energy and water efficiency upgrades offers significant benefits to property owners, who can access financing directly from CleanFund, or through their architectural, engineering, construction or consulting vendors.

Click “Visit program website” below for more information and to request financing.

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1466123363_tick_16 Residential            Commercial

E3 offers residential PACE financing to homeowners in cities and counties throughout California. Water and energy efficiency, renewable energy, seismic retrofit, and electric vehicle charging station projects are eligible for E3 financing.  Please see this page for eligibility criteria.

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1466123363_tick_16 Residential            Commercial

Figtree Financing is a full-service PACE Financing provider for property owners including quoting, application processing, and funding. Figtree PACE allows up to 20% of a property’s value to be financed for energy efficiency, renewable energy, and water conservation upgrades. The financing creates an assessment lien on the property and is repaid as semi-annual installments on the property tax bill.

Figtree PACE provides 100% financing for HVAC, Roofing, Solar, Windows, Lighting, and other energy efficiency and water conservation upgrades for commercial properties. The financing is no money down, fixed low interest rate, and long term up to 20 years. Qualifying for the financing is based on the property, not business credit.

All commercial property types are eligible including office, industrial, retail, hotel, agriculture, and multi-family residential. The minimum allowable project size is $5,000 with no maximum. Eligible improvements include solar, HVAC, boilers & chillers, lighting, building controls, windows, cool roofing, water-efficiency plumbing, and hundreds of other improvement types.

Figtree is not currently accepting applications for residential properties pending clarification of Federal Housing and Finance Agency concerns pertaining to lien status.

 

Program Documents: Commercial PACE ApplicationCommercial PACE BrochureCommercial PACE Disclosure.

There is a list of municipalities eligible for commercial financing.

 Residential            Commercial

GreenFinanceSF – Commercial officially launched on October 13, 2011 using the “open market” PACE model in which property owners negotiate project financing, including the interest rate and repayment term, with qualified project lenders willing to fund their project.  When a project is approved, the City sells a bond to the project lender, and the proceeds from the sale fund the project.  A special tax is then levied on the property, which is collected through the property tax bill and paid back to the project lender.  Other key features of PACE are that it provides for the option of longer amortizations than typical commercial loans, and the payment obligation can run with the property, not the owner.  The Program will assist in facilitating introductions between interested owners and qualified lenders.

“GreenFinanceSF-Commercial is the next big step forward in San Francisco’s efforts to dramatically reduce energy use and carbon emissions,” said San Francisco Mayor Edwin Lee. “We are excited about the potential to unlock an enormous amount of private investment – from a wide range of sources – and create thousands of local construction jobs. As of today, we are open for business.”  “This program will save property owners money, add property value, and put people to work” said Supervisor Eric Mar, who co-sponsored the legislation allowing for the creation of PACE programs in San Francisco.

Green Finance Program DocumentsGFSF Two Page Program Overview 11-14-11GFSF Program Handbook 11-17-11GFSF Request for Applications 11-16-11GFSF Initial Application Form 11-16-11GFSF Form of Lender Consent (non-residential)GFSF Form Property Owner Unanimous Approval (non-residential)GFSF Fiscal Agent AgreementGFSF Form Bond Purchase Agreement. Website:https://commercial-pace.energyupgradeca.org/county/san_francisco/overview

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 Residential            Commercial

The HERO Program is the most widely adopted residential PACE Program in the U.S., accounting for approximately 70% of all projects.  The program is offered in over 350 cities, has financed over $1.4 billion in energy and water saving improvements with 9 out of 10 customers saying they’d recommend HERO to a friend.  HERO offers homeowners additional consumer protection benefits including extensive contractor training, fair-price monitoring, experienced customer service reps, and dispute resolution assistance to resolve any consumer complaints.  The HERO Program benefits homeowners, the environment, and the community.

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 Residential            Commercial

LA county PACE

Property Assessed Clean Energy (PACE) financing is a new option available to Los Angeles County commercial, industrial and multi-family property owners to fund improvements that are proven to save water or energy or to create renewable energy onsite. Unlike a traditional loan, the financing is paid back twice a year through an assessment on the property taxes. In Los Angeles County, the property owner can choose their own PACE project financier and negotiate their own rate and terms.  Because PACE investors are fully secured through a voluntary contractual assessment, PACE investors have the security to offer financing at lower rates and over longer periods of time than has been possible until now. Property owners benefit from no upfront out-of-pocket costs, as PACE financing allows projects to be amortized over a longer period of time so they can be “cash-flow positive” from day one.

This program is also part of Energy Upgrade California, a state-wide initiative to reduce energy consumption in existing buildings.

Program DocumentsFact Sheet, Technical Fact SheetEligible Cities.

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 Residential            Commercial

mPower Placer

Property Assessed Clean Energy (PACE) financing is a new option available to Los Angeles County commercial, industrial and multi-family property owners to fund improvements that are proven to save water or energy or to create renewable energy onsite. Unlike a traditional loan, the financing is paid back twice a year through an assessment on the property taxes. In Los Angeles County, the property owner can choose their own PACE project financier and negotiate their own rate and terms.  Because PACE investors are fully secured through a voluntary contractual assessment, PACE investors have the security to offer financing at lower rates and over longer periods of time than has been possible until now. Property owners benefit from no upfront out-of-pocket costs, as PACE financing allows projects to be amortized over a longer period of time so they can be “cash-flow positive” from day one.

This program is also part of Energy Upgrade California, a state-wide initiative to reduce energy consumption in existing buildings.

Program DocumentsFact Sheet, Technical Fact Sheet

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 Residential            Commercial

PACE funding

PACE Funding™ is full-service financing provider for property owners including quoting, application processing and funding. PACE Funding operates through a statewide municipal platform which allows up to 15% of a property’s value to be financed for energy efficiency, renewable energy, seismic improvements and water conservation upgrades. The financing creates an assessment lien on the property and is repaid as semi-annual installments on the property tax bill. We are the first PACE program to partner with a US federally chartered, consumer lending bank with thousands of trained contractors throughout the country. Our program offers rigorous consumer and regulatory safeguards as well as a world class customer service call center. PACE Funding provides 100% financing for solar, HVAC, roofing, windows and door, lighting, and numerous other energy efficiency equipment, seismic improvements and water conservation upgrades primarily for residential properties. Our financing is no money down, fixed low interest rate for terms of up to 25 years.

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 Residential            Commercial

Samas PACE

Samas Capital is a commercial PACE administrator and funder. Eligible properties can receive 100% financing for renewable energy and efficiency improvements and choose from 5, 10, 15, or 20-year terms.

See the list of eligible municipalities here.

 Residential            Commercial

Sonoma County Energy Independence Program PACE

On March 25, 2009, Sonoma County’s Board of Supervisors authorized and launched its PACE program, called the Sonoma County Energy Independence Program (SCEIP). SCEIP was the first countywide municipal program of its kind in the State of California to provide PACE financing, and currently remains one of the largest programs in the nation providing both residential and commercial PACE financing.

Sonoma County and each of its incorporated cities and towns (collectively the “Cities”) have established a goal to reduce their greenhouse gas emissions 25 percent below 1990 levels by 2015. The County, the Cities, the Sonoma County Water Agency, the Sonoma County Transportation Authority and the Sonoma County Agricultural Preservation and Open Space District are members of the Regional Climate Protection Coordination Plan (“RCPCP”) with the goal of coordinating efforts to reduce countywide GHG emissions.  In 2008, these collaborating agencies viewed the opportunity provided by California state-enabling legislation to form a PACE assessment program as a significant tool in helping Sonoma County and its cities reach their aggressive GHG emissions reduction targets.

Joined by every incorporated city and town, SCEIP covers all areas in the geographic County of Sonoma.  Since program launch, SCEIP has financed over $70 million in projects, representing over 2100 residential properties, 60 non-residential properties and 3600 individual improvements. Because a majority of the improvements have been performed by local contractors, most of the $65 million in funding provided by the County has remained within the local community generating over 80 job-years of local labor.

SCEIP allows more than 90 eligible measures for energy efficiency, water conservation and renewable generation.  Since program launch, SCEIP has financed over 9.9MW of photovoltaic solar generation, equating to a GHG reduction of 8,600 tons annually.  An effort to quantify the energy savings and GHG reduction for financed energy efficiency and water conservation projects is currently underway.

Program DocumentsReplication Guidance for Local GovernmentsSCEIP Resolution 5SCEIP Resolution 4Assessment Contract SingleAssessment Contract MultipleAssessment Implementation Agreement SingleAssessment Implementation Agreement MultipleApproval of SCEIP bond documents for the Sonoma Mountain Village Photovoltaic ProjectCounty Board Resolution on PACE Interest Rate.

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 Residential            Commercial

Ygrene Works PACEYgrene Energy Fund is a leading developer and administrator of clean energy financing programs throughout the United States. The fully funded Ygrene Works program provides immediately accessible financing for renewable generation, energy efficiency and water conservation upgrades to both residential and commercial property owners with no upfront costs. To-date, Ygrene has approved and/or funded $900 million worth of residential and commercial PACE projects that have resulted in more than 13,000 jobs and nearly $2 billion of utility savings for property owners.

To see if Ygrene operates in your community, visit https://ygreneworks.com/serviceareas-california/.

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PACE Municipalities in California

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Enabling legislation

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2011

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