Overview of PACE in Missouri
Columbia, Missouri
March 31st, 2011
Where does Missouri
get its energy ?
• In 2005, only 0.1%
of Missouri's
electricity came from
renewable sources.
• Over 85% comes
from coal – all
imported from out of
state, at a cost of
over $1.2 billion per
year.
2
What we do
• Renew Missouri is a membership-
supported, non-profit group
• Bring stakeholders for energy issues
together to educate & negotiate
• Promote renewables and energy efficiency
to the public
• Evaluate what energy policies Missouri
should implement
• Guide stakeholders as they use the policies
that are put in place.
Missouri ranked 41st in EE
http://aceee.org/pubs/e097.htm
What is PACE?
• PACEis a voluntary program and stands for Property
Assessed Clean Energy.
•It enables interested Cities or counties set up special
Clean Energy Development Boards (CEDB) capable of
issuing low-interest bonds, and the bond money is
used to cover the costs of a loan program.
•Participating property owners, both commercial and
residential, can opt-in and receive a 20 year loan for
renewable energy and energy efficiency
improvements, and pay the loan back through a 20
year assessment on their property taxes.
Benefits of PACE financing
• Job creation
• Economic development
• Increases in disposable
incomes
• Accelerate U.S. energy
policy goals
• Promote equal access to
clean energy
• Payments and energy
savings stay with
property
EE presents a conflict of
interest for utilities
• A recent plan published by Ameren last year said that
energy efficiency alone could reduce energy
consumption by 7.3 percent by 2030, but that this
would require about $100 million a year.
• “If we went after the potential that we‟ve seen in our
own study, we wouldn’t have to build another
power plant for 20 years, and we could retire [58-
year-old coal plant] Meramec, and we‟d be OK,”
Kidwell said. But, he added, “We‟d lose $30 million a
year. And we just can‟t do that. It‟s that simple.”
EE presents a conflict of
interest for utilities
• PACE puts efficiency investments in
hands of local communities – not the
utility.
• The needs of the community are first
priority.
• The market drives growth.
Opportunities for Homeowners
• Cash flow increase from decreased utility cost
• Insulation from future energy price spikes
• Increase in property value
• Part of the creation
of an energy secure
future
• Increased home
comfort and health
Opportunities for
Municipalities
• Revenue Neutral
– The bonds cover both the loans and the program
administration costs; loan are repaid through the
voluntary assessments placed on participating property
owners. Loan payments are collected alongside property
taxes.
• Job Growth
– Stimulates local job creation through the installation of solar
energy and efficiency improvements on private property -
jobs that can’t be outsourced!
Opportunities for Contractors
• Solar installers
• Weatherization and efficiency
improvements
• Widespread and long-term creation of
skilled labor jobs
• Expanded revenues
Opportunities for Policy
Makers
• Promote clean energy initiatives across
the board
• Meet GHG reduction goals
• Job creation and economic
development
• Reduce dependence on fossil fuels
Opportunities for Small
Businesses
• PACE is available for commercial
property
• Take further steps in becoming a
sustainable business
• Establish a “green” identity
• Improved cash flow from
lower overhead costs
Residential PACE slowed
down by FHFA
• FHFA announced opposition to
senior lien status offered by PACE.
• Effectively froze residential PACE
programs nationwide (sort of).
• Building grassroots pressure ever
since…
• March 18th - The National
Association of Regulatory Utility
Commissioners (NARUC) sends
„strong‟ letter to FHFA Director
• February 9th – National League of
Cities/Counties calls for action on
PACE.
Online Resources
• http://pacenow.org/blog/
• http://www.renewmo.org/mo-pace.html
• PACE webinars available online