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Empowering New York Municipalities to Act: P roperty A ssessed C lean E nergy

Empowering New York Municipalities to Act: P roperty A ssessed C lean E nergy. Slides developed by Jackson D. Morris Pace Law School Presented by Shaun Chapman, Vote Solar Initiative. The Challenge. The Magnitude of “80 x 50” Buildings and Homes: 40% of GHG emissions

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Empowering New York Municipalities to Act: P roperty A ssessed C lean E nergy

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  1. Empowering New York Municipalities to Act:Property AssessedClean Energy Slides developed by Jackson D. Morris Pace Law School Presented by Shaun Chapman, Vote Solar Initiative

  2. The Challenge • The Magnitude of “80 x 50” • Buildings and Homes: 40% of GHG emissions • Role of Local Governments Critical • Climate Smart Communities • Environmental & Economic Benefits

  3. PACE: Part of the Solution • Innovative financing mechanism to address #1 barrier to scaling up: Capital • Basic Mechanics: 1) Property owner borrows $ from LDC 2) EE and RE improvements installed 3) Loan repaid on property taxes 4) Loan stays with the property 5) Attractive to Financiers: 97% property taxes current

  4. How PACE Works: PACE stands for Property Assessed Clean Energy. A Municipality establishes a Clean Energy Development Area and sets up a municipal entity capable of issuing low-interest bonds. The bond funds are used to offer financing for renewable energy and energy efficiency improvements on residential and commercial properties. Interested property owners can opt-in to receive long term financing (up to 20 years) for renewable energy and energy efficiency improvements, repaid through an assessment on their property taxes. This arrangement spreads the cost of clean energy improvements—such as a solar installations, energy efficient boilers, upgraded insulation, etc - across a payment plan that automatically transfers to the next property owner if the property is sold.

  5. Benefits to Property Owners • No Upfront Cost – Removes the upfront cost barrier of renewable energy and energy efficiency improvements. Most programs only charge a small fee to property owners. • Increased Comfort – Property owner enjoys a more comfortable home while paying lower energy bills. • Improved Liquidity– Annual energy savings are typically greater than annual financing payments, so property owners will have more cash on hand to make monthly mortgage payments. • Less Investment Risk - Removes the uncertainty of recovering the cost of improvements if the property is sold, because the financing runs with the property via the tax assessment.

  6. Benefits to Municipalities • Revenue Neutral – A PACE finance program can be set up to be self supporting. The municipality lends the upfront costs through funds generated by the issuance of municipal bonds through the assessment area. The bonds cover both the loans and the program administration costs and are repaid through voluntary “opt-in” assessments placed on participating properties. • No Credit or General Obligation Risk – PACE bonds are not typically general obligation or appropriation bonds, so the municipality’s credit is not placed on the line. • Local Job Growth – PACE has the ability to stimulate local job creation through the installation of solar energy and efficiency improvements. For every $1mm spent on these clean energy improvements, 10 jobs are created. If just 15% of the 4mm single family homes in NYS were to retrofit to 30% efficiency, the funding pool would be $4.8Billion and would create 48,000 jobs. • Meet Carbon Reduction Goals – Counties, Cities, Towns and Villages can use this tool to move quickly toward achieving their carbon reduction and energy independence goals.

  7. Provisions of the NY StatuteA.40004a/S.66004aSigned into Law 11/19/09http://assembly.state.ny.us/leg/?default_fld=&bn=A40004&Summary=Y&Text=Y • Opt-in structure: county, town, city, or village • Residential and commercial properties • Eligible measures: --Energy efficiency --Renewable energy systems --Energy audits --Feasibility studies http://www.nyserda.org/images/slideshow/col03/Image8.jpg

  8. Provisions of the NY Statute • Capped at 10% property value • Fixed interest rate • Payback: Annual property tax bill payment, period set by municipality • Monitoring, Verification, and Reporting • Funding source: limited to federal support?

  9. Where are we now in NY? • City of Binghamton, Town of Bedford have stand alone PACE statutes, similar Town of Babylon program up and running • Albany Co. & Nassau Co. have passed local ordinances • Key Question: Where’s the $? http://www.nyserda.org/images/slideshow/col01/Image5.jpg

  10. Where do we go from here? • New York State Lawmakers must pass legislation amending the existing PACE statute • The “fix” must (among other things) allow for funding other than Federal $ to support these revolving loan funds • Without such a fix, PACE in NY is dead on the vine (except for municipalities who win federal funding)

  11. The NY Fix • Allow for alternative sources of funding • Link PACE to Green Jobs-Green NY 1) Unsecured Consumer Loans 2) On Bill Recovery (S.7565) 3) PACE (Bill # 7683) • Technical procedural clean up

  12. Albany Status Report • Introduction of an amendment imminent • Sponsors in both houses reviewing language • Bottom line: we have a lot of work to do between now and June 21

  13. Actions: How can you engage? • Engage Here: Sign on to the campaign • Engage @ the State Level: Contact your State Senator and Assembly member • Engage @ the Local Level: Rally EE and RE businesses, your municipal officials, and climate conscious citizens to adopt local PACE laws

  14. Growing Coalition • Aeon Solar http://www.aeonsolar.com/ • The Alliance for Clean Energy New York http://www.aceny.org/ • Citizens Campaign for the Environment http://www.citizenscampaign.org/ • Environmental Defense Fund http://www.edf.org/home.cfm • Hudson River Sloop Clearwater, Inc. http://www.clearwater.org/ • Hudson Valley Clean Energy http://www.hvce.com/ • Johnson Controls, Inc. http://www.johnsoncontrols.com • Jones Lang LaSalle Incorporated http://www.joneslanglasalle.com • Natural Resources Defense Council http://www.nrdc.org/ • New York League of Conservation Voters http://www.nylcv.org/ • New York Solar Energy Society http://www.nyses.org/ • Pace Energy and Climate Center http://www.pace.edu/page.cfm?doc_id=23241 • PACENow http://www.pacenow.org/ • Renewable Energy Long Island http://www.renewableenergylongisland.org/ • Renewable Funding http://www.renewfund.com/ • Siemens Building Technologies, Inc. http://www.buildingtechnologies.siemens.com • Simon Property Group, Inc. http://www.simon.com • The Solar Alliance http://www.solaralliance.org/home/index.html • SOLARgeneration, inc. www.SOLARgeneration.net • Sollega http://www.sollega.com/instarack/ • SunPower http://us.sunpowercorp.com/ • Sustainable Energy Partners http://www.separtners.com/ • Sustainable Hudson Valley http://www.sustainhv.org/ • The Vote Solar Initiative http://votesolar.org/

  15. Support the amendment to enable local governments to form Clean Energy Development Areas and offer PACE financing programs. Contact Shaun Chapman at: Shaun@VoteSolar.org

  16. Questions? Shaun Chapman East Coast Campaigns The Vote Solar Initiative 845.249.5454 shaun@votesolar.org

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