California PACE


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A presentation about the Pacific Housing & Finance Agency program, given by Michael Chapin at the Residential Retrofit Action Clinic on June 2, 2010.

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California PACE

  1. 1. Pacific Housing & Finance Agency’s CALIFORNIA PACE PROGRAM June 2, 2010 Generating Ideas
  2. 2. About Assembly Bill (AB-811) <ul><li>Assembly Bill 811 is an environmental law in California that authorizes cities and counties to designate areas whereby willing property owners could enter into contractual assessments to finance the installation of distributed renewable energy generation, as well as energy efficiency improvements, that are permanently fixed to the owner's real improved property. </li></ul>
  3. 3. What AB811 Doesn’t do <ul><li>AB811 does not : </li></ul><ul><ul><li>Create Program guidelines for Cities and Counties </li></ul></ul><ul><ul><li>(only the basis and authority to do so) </li></ul></ul><ul><ul><li>Provide Funding to finance the improvements </li></ul></ul>
  4. 4. How PACE Programs are formed? <ul><li>PACE Programs can be formed by: </li></ul><ul><ul><li>Cities </li></ul></ul><ul><ul><ul><li>(ex. City of Palm Desert – Energy Independence Prg) </li></ul></ul></ul><ul><ul><li>Counties </li></ul></ul><ul><ul><ul><li>(ex. County of Sonoma– Energy Independence Prg) </li></ul></ul></ul><ul><ul><li>Joint Powers Authorities (JPA’s) </li></ul></ul><ul><ul><ul><li>(ex. Pacific Housing & Finance Agency – CA PACE Prg) </li></ul></ul></ul>
  5. 5. Advantages of the California PACE Program <ul><li>Helps Residents and Business save money on Energy Bills </li></ul><ul><li>No-Cost for Participating Cities to Join </li></ul><ul><li>Increases in: </li></ul><ul><ul><li>Local Sales Tax / Permit Fee Revenues </li></ul></ul><ul><ul><li>Local Employment / Energy Job Growth </li></ul></ul><ul><ul><li>Use of Renewable Energy Resources </li></ul></ul>
  6. 6. How PHFA’s California PACE Works <ul><li>The PHFA California PACE Program provides Member Agencies a turnkey solution for delivering an all inclusive Energy Efficiency Program. </li></ul><ul><li>Each Member City can form their CA PACE Energy Assessment District, supported by PHFA bond Financing. </li></ul><ul><li>Property Owners in Participating Cities can apply for loans to install renewable energy generation, water conservation and/or energy efficient equipment permenantly attached to thier improved property. </li></ul>
  8. 8. About the CA PACE Program <ul><li>The CA PACE program is a vendor sponsored program. Whereby approved general contractors install the equipment up-front, and then are reimbursed through bond proceeds after the equipement is verified. </li></ul><ul><li>Each Member City can form their CA PACE District, supported by PHFA bond Financing, $95 Million was authorized on January 25, 2010. </li></ul><ul><li>Pacific Housing & Finance Agency has over 60 member Agencies throughout California. </li></ul>
  9. 9. How PHFA Energy Program Works <ul><li>Property owners select their vendors from a list of Participating Vendors to have their equipment installed. </li></ul><ul><li>PHFA will review & verify the applications, approve vendor installations, and reimburse vendors through bond financing. </li></ul><ul><li>Lastly, PHFA administrators will work with Participating Cities to process new applications, monitor tax payments, and provide continous Energy District support and progress to City Staff. </li></ul>
  10. 10. Benefits of Joining PHFA’s CA PACE vs. Independent City Formed Programs <ul><li>No Start-up Costs / Lower Overall Costs: PHFA’s CA PACE delivers a complete energy efficiency program, turnkey for each memeber City saving thousands of dollars in formation costs including City Attorney review, document formation, bond counsel fees, etc… </li></ul><ul><li>Economies of Scale: With several participating Cities in the JPA, applications are continously processed and bonds are issued from the aggregate assessments of various participating cities resulting in faster loan processing and a constant funding cycle. </li></ul><ul><li>District Support: PHFA Administators (Public Finance Solutions & Engineering) supplement City staff in managing the Energy District Administration from loan processing to bond closings. </li></ul>
  11. 11. Benefits of Joining PHFA’s CA PACE vs. Independent City Formed Programs <ul><li>Unique Program Design: Each City can create a CA PACE District with their own specific guidelines and program material such as: </li></ul><ul><ul><li>Local Only or Preffered General Contractors and / or Vendors </li></ul></ul><ul><ul><li>EXAMPLE: CITY OF PALM SPRINGS, RIVERSIDE COUNTY </li></ul></ul><ul><ul><li>Local ‘Green ’ Building Permits required with program applications </li></ul></ul><ul><ul><li>(Fee Generation Program) </li></ul></ul><ul><ul><li>EXAMPLE: CITY OF CARSON, LOS ANGELES COUNTY </li></ul></ul><ul><ul><li>Limit scope of the program (no solar) </li></ul></ul><ul><li>Program Readiness: The CA PACE program is not a pilot. With $95 Million available in bond financing and no per agency allocation, each member Agency can finance as much CA PACE loans as demand can support. </li></ul>
  12. 12. Assessment District Formation Timeline & Process
  13. 13. CA PACE Process Diagram
  14. 14. Order tracking the various improvements
  15. 15. Vendor Payment & Order Processing <ul><li>Property owners must first select a General Contractor to work with from the list of approved Contractors. </li></ul><ul><ul><li>The General Contractor will co-ordinate the management of the subcontractors to complete the various improvement installations this streamlines order processing and provides liability coverage for all of the work completed under a general contractor. </li></ul></ul>
  16. 16.
  17. 17. Any Questions? Get your City on the CA PACE Program. <ul><li>CONTACT US </li></ul> Public Finance Solutions & Engineering (PFSE) California PACE Districts Program Administrator Michael Chapin , President Direct: (877) 577-PFSE (7373)