David Pickerill from the Missouri Clean Energy District discussed the state of PACE programs in Missouri. He does not see potential for residential PACE currently due to federal suspension of the program. He believes implementing PACE on a statewide level through the MCED is most viable. LaDonna from Set the PACE St. Louis provided an update on their commercial PACE program launch, saying they have 39 participating properties. PNC Bank is the primary lender and has experience providing energy efficiency loans. Contractors are forming partnerships to conduct audits. Set the PACE recommends businesses advocate for PACE to convince municipalities and lenders.

1. Fall Internship
Presentation
Jacob Dowell

2. PACE Update in Missouri:
David Pickerill (of the Missouri Clean Energy District):
 David does not see the residential potential for Missouri PACE
programs due to the federal suspension of the program. Had no
other comments on the state of residential PACE.

 Assessment contracts for PACE are currently issued through the
MCED, it is viable because it has no geographic boundaries for
issuing the contracts. (not limited to a single municipality). David
went on to say that implementing PACE in Missouri will be most
successful by implementing the program on a state wide level.
Running financing costs and administrative responsibilities
through municipalities puts too much burden on most
municipalities, and they do not want to deal with the hassle of
setting up the financing options.

3. PACE continued…
 While PACE financing does have support from regional banks in St. Louis, and
is currently sustainable through this method, David believes that its not a long
term option for St. Louis, nor does it set the best model of implementation.
The fact that local economies like St. Louis may be affected by a number a
regional economic set backs means that the volume of PACE contracts could
slow down, and therefore make the transaction costs of PACE financing more
difficult and burdensome on the stakeholders. Both the municipal governing
bodies and the regional banks are well aware of this, according to David. A
statewide method of financing could be more beneficial, and be more efficient
in allocating resources to underfunded or struggling PACE programs regionally.
He really emphasized that a strong PACE portfolio for Missouri should have
much geographic diversity in its adoption and implementation. Overall, the
development of MCED has been a positive step towards statewide efforts.
 Regarding the MO PACE Act, David believes that there will not be any
significant legal modifications or setbacks in the near future. Adding water
conservation statutes to the law has been a debated possibility before, David
believes that this is the only possible legitimate issue that could affect MO
PACE Act. But he does not believe it is a necessary addition, and believes PACE
should not be concerned with anything besides energy efficiency.

4. PACE Update from Set the PACE
St. Louis
 Program was launched on July 2nd this year.
 The Program is a “soft launch” because they
did not want an overflow of businesses that
want to sign up for the program. LaDonna
stated that it would have caused a significant
administrative burden. However, the official
launch for Set the PACE will include large-
scale media coverage and a ribbon cutting
with Francis Slay.

5. Continued…
 Financing:
 St. Louis found that utilizing one lender to administer PACE financing has been
more advantageous rather than incorporating a variety of lending options
(numerous banks can sign on for issuing PACE loans). PNC Bank has been the
primary lending source for PACE in St. Louis so far. PNC has extensive
experience in energy efficiency loans for residential and commercial upgrades
for over 15 years, and has good faith in the financial feasibility of that PACE
can offer property owners. Additionally, if a property owner does not qualify for
the specific loan option that PNC designated towards PACE, the bank will work
with them to find alternative loan sources so that they can continue with PACE
upgrades to their property. Flexibility of financing options for property owners,
and extensive experience in energy efficiency loans are the primary
advantages that PNC has offered to the city of St. Louis for PACE
implementation. Apparently, PNC has also been able to finance a few
residential property upgrades that follow the PACE model, although LaDonna
did not have all the information to elaborate on this point.

6. Continued…
 Applicants in the St Louis Area:

 Set the PACE currently has 39 properties that are on board with energy efficiency upgrades. These are primarily commercial
property owners, and the variety of businesses is significant. They include:

 MAC (Missouri Athletic Club). They have thoroughly audited all their properties and have a clear plan of action for what specific
efficiency upgrades they want installed.

 Four Muddy Paws, a local dog shop located in Lafayette Square.

 A large industrial Produce Warehouse

 A variety of local Bakeries/ Restaurants

 A clothing- logo manufacturing plant.

 Tempest distillery, renovation an old historical building to open their business, the antiquated state of the property has provided
incentive for the property owners to adopt PACE upgrades. Set The PACE St. Louis expects businesses with antiquated
infrastructure to be a large source of PACE applicants

 Contractors:

 A list of current contractors that are working with PACE upgrades and energy audits can be found on their webpage under “find
contractors”.

 8760 Engineering has done many energy audits for PACE upgrades for commercial properties in St. Louis. They have been very
effective so far according to Set the PACE. (It may be worth a call or at least further research into what they do). LaDonna stated
that Contractors working with PACE in St. Louis are forming informal partnerships to audit properties. She gave the example of A
White roof installation- company working in coordination with a lighting installation company to assess specific commercial
properties in conjunction with each other. She stated that this has been instrumental in making PACE audits and uprades an
effective

7. Reccomendations
 Recommendations for Municipalities wanting to
adopt PACE:

 Set the PACE gave an example of a St. Louis- West County
municipality that has currently has a few commercial
property owners pushing for PACE adoption. They are
currently in negotiations with the Municipal government for
adopting PACE. Because the commercial property owner
has a significant financial presence within the community,
the likelihood of PACE being adopted by the municipality is
greater. The main recommendation coming from Set the
PACE St. Louis is to push for the larger, job creating
businesses to advocate for PACE programs within their
communities. That is key to convincing the lenders and
municipalities

8. Clean Energy Liaisons Update
 The Clean Energy Liaisons Project
Currently has 39 members representing
22 separate districts

9. Goals for the Fall
 Create a 5 minute video to promote through
Youtube or the Renew Missouri website to
explain the outlook for the Missouri Senate,
and the relevance that this project has to
Renew Missouri’s overall goals
 Continue Expansive outreach
 Have all the Senate Districts covered by
November 1st. Reevaluate the status current
liaisons.